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How to design value chains programmes that address climate risks: an IFAD-CGIAR learning event

Sonja VermeulenHead of ResearchCGIAR Research Program on Climate Change, Agriculture and Food SecurityFebruary 2016

Good design in theory: IFAD’s HTDN on Climate Risk Assessments in Value Chains

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http://www.ifad.org/knotes/climate/htdn_climate_vc.pdf

Title to be insertedIFAD How To Do Note: Climate Change Risk Assessments in Value ChainsWhere does the HTDN fit in the project cycle?

HTDN can inform SECAP and COSOPsFive stages in the design process:

The COSOP design determines the opportunities for managing climate risks!

Title to be insertedIFAD How To Do Note: Climate Change Risk Assessments in Value Chains1. Select value chain

Are climate risks a consideration in selecting the value chains in the project?

e.g. Yes – Nicaragua coffee and cocoae.g. No – value chain is pre-selected

Title to be insertedIFAD How To Do Note: Climate Change Risk Assessments in Value Chains2. Identify key climate risks

Use mix of scientific analysis and participatory techniques

Examples:

CCAFS support to ASAP in Uganda

Coffee vulnerability mapping in Liberia & Nicaragua

IFAD-CIAT Learning Alliance in VietnamPhoto: CCAFS

Title to be insertedIFAD How To Do Note: Climate Change Risk Assessments in Value Chains3. Choose most effective adaptation interventions

1.Diversification: Wider set of technical and institutional options to increase farmers’ risk management portfolios

2. Climate-proofing: Make key stages of the value chain more climate-resilient in ways that bring livelihood and resilience benefits to farmers

3. Supply chain efficiencies: Measures such as waste reduction or inventory management that increase efficiency and deliver higher profitability & adaptive capacity to farmers and small businesses in the value chain

Title to be insertedIFAD How To Do Note: Climate Change Risk Assessments in Value Chains4. Target those most at risk

Challenge is whether there is good mapping across:climate vulnerabilitypoverty, gender value chain actors

Options:1.Use climate vulnerability analysis to drive value chain targeting 2.Make provisions for detailed targeting at the implementation phase3.Assume a good match between value chain targeting and climate targeting

Options:1.Use climate vulnerability, gender and poverty analyses to drive value chain targeting 2.Make provisions for detailed targeting at the implementation phase3.Assume a good match between value chain targeting and climate targeting

Photo: Neil Palmer CIAT

Title to be insertedIFAD How To Do Note: Climate Change Risk Assessments in Value Chains5. Reach scale with climate interventions

Build climate interventions into project plans for scaling up:-Strengthening local institutions and collective action-Capacity building initiatives-Micro-entrepreneurial development-Coordinated service delivery-Risk sharing across the value chain-Information flows-Public-private partnerships-Infrastructure development-Policy reform Photo: Reuters

Title to be insertedIFAD How To Do Note: Climate Change Risk Assessments in Value ChainsOpportunities and challenges

Still very few lessons to draw on for assessing and managing climate risks across the full value chain

But now growing interest, for example:-Australia: fisheries and seafood adaptation (industry & academia)-Peru, Colombia, Ghana: building adaptation into voluntary certification schemes (CIAT/Rainforest Alliance)-Southeast Asia: full-chain risk analysis for the rice sector (ASEAN/GIZ)-Uganda: dialogue theatres for risk analysis (IISD/MAK)

COMMON FEATURE: PLATFORMS FOR INTERACTION AMONG ALL VALUE CHAIN PARTICIPANTS