Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Presentation Title
What Happens Now
But first,
The Context!
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Sustainable Human Development
EQUITY
Prevention and
Reduction of risks
from, and increased
Resilience to,
shocks
EMPOWERMENT AND
PARTICIPATION
Sustained and
inclusive green
growth
SUSTAINABILITY
Social well-being and
realization of basic
capabilities
SECURITY AND RESILIENCE
Well-managed
natural resource
base, with equitable
benefit-sharing
COOPERATION
Functional and stable
political governance
(transparent,
accountable,
inclusive, effective)
Examples of areas that can be influenced by UNDP in the area of Human Development and Environmental Sustainability:
Structural transformation of the economy, changes in productivity and employment-intensity of growth, greening and low emission production processes.
Sustainable use and governance of natural resources (production processes/access/pricing/revenues/benefit-sharing/conservation)
Preparedness and resilience for shocks and foundations for rapid and broad-based recovery: Climate change adaptation, building resilience of ecosystems,
communities and infrastructure.
Functionality, transparency, efficiency, effectiveness and inclusiveness of systems of public administration (at all levels).
Capacity development, public policies and plans for pro-poor, green development (economic and fiscal tools, national budget systems, social and
environmental strategic assessments, etc.).
Existence, coverage and sustainability of systems for transfer of risk and for social protection and of social services (including energy and water) access)
POLICIES
(Scope, Quality, Relevance,
Ownership)
INSTITUTIONAL
CAPABILITIES
(Knowledge, Skills, Systems,
Openness, Accountability,
Partnering, Provisioning)
LEADERSHIP
(Approach, Experience,
Skills)
PARTICIPATION AND
CONSENSUS-BUILDING
(Credible and Functioning
Systems for Voice and
Engagement)
RESOURCES
(Equity, Transparency,
Efficiency and Effectiveness
of Mobilisation, Allocation
and Expenditure)
STRUCTURAL FACTORS: Natural endowments – location - historical experience, traditions and legacies – political, administrative, social and ethnic
structures - social and civic culture and norms – social capital (associational base, levels of civic trust, record of consensus and collaboration)
The Climate Finance Readiness Challenge
Despite growing volume and variety of resources (international
& domestic, public & private), developing countries face
3 key challenges to climate finance readiness:
1. National capacities are required to navigate complex
landscape and allow countries to access and deliver different
forms of finance
2. Need to catalyze private finance: public finance alone is
insufficient to meet demands of climate challenge, must
catalyze greater volumes of private finance
3. Limited alignment between climate and development: to
drive economy-wide transformation, climate finance must be
mainstreamed into planning and development policy
Components of Climate Finance Readiness and
Associated Capacities Required
Levels of
national
capacities
Financial Planning
Accessing Finance
Policy Level
Formulation of green,
low-emission and
climate-resilient
development strategies
and implementation
plan, including costing
Institutional
Level
Effective national multi- Implementing entities
stakeholder coordination with fiduciary systems
mechanisms
and safeguards; national
banking institutions
Individual/
skills level
Baseline assessments;
I&FF assessments;
expenditure reviews;
sector
analysis/investment
appraisal of costsbenefits
Delivering Finance
Monitoring,
Reporting & Verifying
Sectoral policy
incentives and
regulations to catalyze
private investments
Financial management
(combining/ blending)
skills;
project/programme
formulation skills;
expertise in private
sector pricing incentives
Implementing & executing
entities with fiduciary
systems and safeguards;
project-level multistakeholder mechanisms;
climate-aware public
financial management
systems
Specialist technology skills
(e.g. wind energy
technologies installation);
project management skills
Centralized unit to
compile data and for
quality control
reporting;
communications unit
Expenditure review
methodologies; GHG
inventory skills;
independent
verification skills
Green, Low Emission Climate Resilient Development Strategies:
Promoting robust strategic planning and decision-making
Develop Green
LECRDS
Determine appropriate
“policy-mix” and
financing options
• Technical and Policy Advice
Generate &
Share
Knowledge
• Developing and Applying
Methodologies
• Oversight and Financial
Management
• Training
• Multi-stakeholder Dialogues
• Convening and Coordination
Catalyze Finance
Establish Enabling
Environment to
Catalyze Capital
Great!
So, where are we then…..
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Ongoing LDCF, SCCF, AF financed
projects – need to build off these
Mongolia Ecosystem-based adaptation mainstreamed
into sector policies; and capacity development for
integrating climate change risks into land and water
resource management planning.
Bangladesh - Developing the capacity of coastal
communities for dealing with climate risks; engaging in
coastal afforestation; and building local level government
capacity in managing climate change risks and adaptation.
Vietnam - Updating coastal zone management and
development policies to promote increased resilience of
critical infrastructure in vulnerable coastal areas;
enhancing government capacity to understand/
incorporate climate risks in development planning.
Cambodia - Enhancing local institutional capacity for
climate resilience (e.g. training local engineers; setting up
dispute mechanisms). Water related adaptation options at
the local level such as resilient design, management and
enhancement of water infrastructure.
Nepal - Assessing impacts of climate risks and adaptation
options (physical infrastructure and community
preparedness) for glacial and other flooding in
mountainous regions.
Indonesia - Cost-benefit analysis on promoting economic
diversification in several vulnerable villages. Focus on
measures that will stimulate entrepreneurship especially
for women; foster close linkages to the private sector
Thailand - – Economic assessment of options for climateresilient coastal protection; and enhancing local knowledge
and capacity and implementing small scale adaptation
measures.
Maldives - costs and benefits of climate-proof sensitive
infrastructure (freshwater management, solid waste and
wastewater management, energy services, infrastructure);
Enhanced capacity of national, provincial, atoll and island
authorities and civil society leaders to integrate climate risk
information into policy, planning and investment decisions.
Sri Lanka - Disaster resilient infrastructure development
controls and building codes; restoration and rehabilitation
of natural buffer zones; and technical human resources
capacity building to account for climate risks in planning
and building of physical infrastructure
Lao PDR - Economic impacts of climate change assessed.
Increased knowledge and understanding of climate
variability and climate induced threats on agricultural
production, food security and vulnerability, in Lao PDR.
Philippines - Assisting the
agriculture sector in
adapting by creating
regulatory environment
for private sector
engagement with farming
households, creating
financial products for
farmers and building
farmer capacity.
Timor Leste – Assessing climate
vulnerabilities and adaptation
options at the national level;
capacity building at the national
and local level; and developing
adaptation projects in rural areas
(especially water related).
Cancun Adaptation Framework (CAF) - National Adaptation
Plans (NAPs)
- Medium- and long-term climate change adaptation needs
Supporting LDCs to Advance
National Adaptation Plans (NAPs)
Readiness
to advance
NAPs
Support with
Accessing
Finance to
Advance
NAPs
Implement
Priorities
that emerge
from NAPs
Green Climate Fund
9
So, what did we hear from you this week
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Country Needs
• Demand for understanding of economics of climate
change adaption at technical and policy levels
• Key sectors- Agriculture (rural development), Water
(flooding/drought) and inter-sectoral implications
• Trained personnel at country level
• Intra Ministry capacity development
• Targeting High level Policy Makers (Awareness)
• Emphasizing issues of prominence for decisionmakers (speaking their language)
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Views on Tools and Issues
Tools
• Sectoral and Inter-Sectoral Analysis
• Market and Non-Market Valuation
• Investment (project) Appraisal
Key Issues
Short-term, long-term
Equity, Gender, distributional impacts
Must go beyond research and result in change in…
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
So, here is what we will do….
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
So, here is what we will do….
(1) Build your technical capacity to conduct assessments
on the economics of adaptation
- For: portfolio (# of projects) appraisal and
- For: sectoral and cross-sectoral planning
(2) Build support among decision-makers through
awareness and sensitization to key issues
Support your efforts to link this programme with others
aimed at advancing climate resilient development
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Priority sectors (National Communications and NAPAs)
100
90
80
70
60
50
40
30
20
10
0
Agriculture
Coastal and Marine Ecosystems
Energy
Education and Capacity Building
Early warning and Disaster Management
Fisheries
Forestry
Health
Infrastructure
Water Resources
Key Questions that you will be able to
get insights on through this programme:
• Managing water sector and the agriculture sector under
current climate conditions
• How plans may need be adjusted so that sectoral economic
development takes into account climate change risks and
opportunities
• Evaluating portfolio of initiatives (comprising discrete
projects) in context of climate change (e.g. Khulna type
Government projects)
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Other topics of interest
• What are most profitable (efficient) choices for farmers in
different regions of my country given current conditions? What
type of farm, what crops, what livestock, how much irrigation,
and how much input (labor, machinery, fertilizer) should they
use?
• How do the choices above change as market conditions (such
as prices) change?
• How do the choices above change as climate changes?
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Exploring distributional and equity
issues
• What is the best allocation of water across users in each
major water basin in my country today?
• How should water allocation change as the demand by
different types of users changes over time?
• How should water allocation be adjusted in years with
abundant water and with water shortages?
• What water investments would be efficient (dams, canals,
levees) and where and when should they be made?
• How would climate change alter these water investments
and water allocation plans above?
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Expected results
• National plans/strategies taking economics of
climate change adaptation into account (Sector
Plans, National Development Strategies)
• Appraised Portfolio of projects
• Trained technical national teams
• Supportive, knowledgeable decision-makers
• Sectoral results on the costs-benefits of adaptation
options
• Case Studies and Curriculum
• Community of Practice and Mentoring support
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
So, what is the modality for achieving
these expected results:
Two year capacity building programme
Country teams will conduct relevant project appraisal/sector
analysis in context of ongoing initiatives of priority to them
Experts from region and international to provide
training/mentoring
At least 4-5 regional gatherings and demand based in-country
support
Technical Support Available from a network
Linking with other ongoing capacity building programmes on
climate modelling, vulnerability analysis (eg. UNU-ISP, UNDP,
USAID adaptation projects, and others)
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Leverage financing from initiatives already in
place and are being developed
Mongolia Ecosystem-based adaptation mainstreamed
into sector policies; and capacity development for
integrating climate change risks into land and water
resource management planning.
Bangladesh - Developing the capacity of coastal
communities for dealing with climate risks; engaging in
coastal afforestation; and building local level government
capacity in managing climate change risks and adaptation.
Vietnam - Updating coastal zone management and
development policies to promote increased resilience of
critical infrastructure in vulnerable coastal areas;
enhancing government capacity to understand/
incorporate climate risks in development planning.
Cambodia - Enhancing local institutional capacity for
climate resilience (e.g. training local engineers; setting up
dispute mechanisms). Water related adaptation options at
the local level such as resilient design, management and
enhancement of water infrastructure.
Nepal - Assessing impacts of climate risks and adaptation
options (physical infrastructure and community
preparedness) for glacial and other flooding in
mountainous regions.
Indonesia - Cost-benefit analysis on promoting economic
diversification in several vulnerable villages. Focus on
measures that will stimulate entrepreneurship especially
for women; foster close linkages to the private sector
Thailand - – Economic assessment of options for climateresilient coastal protection; and enhancing local knowledge
and capacity and implementing small scale adaptation
measures.
Maldives - costs and benefits of climate-proof sensitive
infrastructure (freshwater management, solid waste and
wastewater management, energy services, infrastructure);
Enhanced capacity of national, provincial, atoll and island
authorities and civil society leaders to integrate climate risk
information into policy, planning and investment decisions.
Sri Lanka - Disaster resilient infrastructure development
controls and building codes; restoration and rehabilitation
of natural buffer zones; and technical human resources
capacity building to account for climate risks in planning
and building of physical infrastructure
Lao PDR - Economic impacts of climate change assessed.
Increased knowledge and understanding of climate
variability and climate induced threats on agricultural
production, food security and vulnerability, in Lao PDR.
Philippines - Assisting the
agriculture sector in
adapting by creating
regulatory environment
for private sector
engagement with farming
households, creating
financial products for
farmers and building
farmer capacity.
Timor Leste – Assessing climate
vulnerabilities and adaptation
options at the national level;
capacity building at the national
and local level; and developing
adaptation projects in rural areas
(especially water related).
What Happens Now
Immediate Action :
By countries
•Require you (or nominated personnel) to get substantive
training in the economics of climate change (co-benefits of
training: allow you to do all sorts of other analyses)
• Training through a series of meetings/training sessions.
• Please discuss this with your counterparts and superiors
By organizers (UNDP-USAID)
Updated concept note for this programme
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Draft Timeline
By end of Jan 2013
Talk to colleagues and coordinate, make
linkages to ongoing UNDP, LDCF, SCCF,
AF, USAID and other initiatives
Identify projects to appraise
Identify data available and gaps for
sectoral analysis
Nov/early Dec 2013
Technical Training
By end of March 2013
Technical Training for countries
Second Quarter 2014
Regional Meeting (Technical)
First Quarter 2014
Country support
Analysis
Policy Dialogue
April- Oct/Nov:
Fourth Quarter 2014
Policy awareness
High Level Policy Dialogue (Ministerial)
Country support (technical)
Additional data collection, early analysis
by countries
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Keep in mind
The Context!
Capacity Building Programme on the Economics of Adaptation
Supporting National/Sub-National Adaptation Planning and Action
Change in Lives
WHY RESULTS?
WHAT RESULTS?
HOW TO ACHIEVE AND
SUSTAIN THEM?
“Real,
meaningful, and
sustainable
improvements in
people’s lives.”
The Results/
Development
Story…
Healthy, educated,
employed, empowered
people / communities
Changes in behaviors, norms
People and communities are using
the services and changing their
behavior or norms, etc.
Improved Performance
Institution or systems are performing
more effectively and efficiently,
in a more consistent and resilient manner
(performance, stability, adaptability)
Local farmers adapt their practices to
reflect climate-related factors
Local government plans/budgets more
effectively reflect climate change
adaptation needs; provincial agricultural
extension services adapted
r
Increased Capacity
Better functioning systems, structures,
mechanisms, processes etc.
in areas:
institutional arrangements; leadership;
knowledge management;
and accountability
Systems related to climate change
adaptation (planning, financing, etc)
are strengthened in multiple institutions
in the sector
We analyze capacity needs related to
Capacity Development Processes
climate change adaptation; develop
and implement a capacity development
Stakeholder engagement,
strategy/plan to address them (incl.
capacity assessments, capacity development
strategies and change processes,
change
Capacity
Building Programme on the Economics
of Adaptation
tech skills
development)
management
Source: Ashley Palmer (2012)
Increased resilient
food security
Supporting National/Sub-National Adaptation Planning and Action
Green, Low Emission Climate Resilient Development Strategies:
Promoting robust strategic planning and decision-making
Develop Green
LECRDS
Determine appropriate
“policy-mix” and
financing options
• Technical and Policy Advice
Generate &
Share
Knowledge
• Developing and Applying
Methodologies
• Oversight and Financial
Management
• Training
• Multi-stakeholder Dialogues
• Convening and Coordination
Catalyze Finance
Establish Enabling
Environment to
Catalyze Capital