CARE’S CLIMATE CHANGE INNOVATION FUND A young girl in Ethiopia tends to crops alongside other women from her village. Climate change will exacerbate food shortages and malnutrition for poor communities worldwide unless effective prevention and response strategies are put in place. “Climate change is the defining human development challenge of the 21st Century. Failure to respond to that challenge will stall and then reverse international efforts to reduce poverty. The poorest countries and most vulnerable citizens will suffer the earliest and most damaging setbacks, even though they have contributed least to the problem.” - United Nations 2007/2008 Human Development Report Introduction Well-documented increases in global average air and ocean temperatures, rising sea levels and the widespread melting of glaciers all point to the same truth: the earth is warming. These serious climatic changes are shifting seasons, altering rainfall patterns and triggering more intense and frequent extreme weather, such as drought and cyclones, in many parts of the world. There is significant evidence of these changes, and the consensus among experts is that people are to blame. Though they have contributed least to causing climate change, the world’s poorest people are feeling the brunt of its impacts. This is especially true of those who rely on agriculture, livestock, forestry or fisheries to make a living – and doubly true for impoverished women, children, and others in marginalized social groups, who often live in environmentally vulnerable areas, have tenuous livelihoods and less decision-making power. When extreme weather strikes, these individuals typically suffer the worst consequences and – without economic assets or social networks to fall back on – are least able to recover. The effects of climate change on the day-to-day lives of poor families are myriad. As agricultural seasons shift, rainfall patterns become more erratic, and the percentage of arable land declines, more and more poor communities will struggle to produce food. Meanwhile, water shortages, already a critical threat in many parts of the world, will worsen. By 2020, the United Nations (UN) anticipates that climate change could be directly responsible for preventing as many as 250 million Africans from getting enough water to meet their basic needs. Changing temperatures will also influence the transmission patterns of certain diseases, such as malaria, expanding them to areas that were previously unaffected. And, climate change will exacerbate the risk of violent conflicts as neighboring communities and countries compete for diminishing resources. CARE and the World Wildlife Fund (WWF) Recognizing that longstanding and new threats are increasing the vulnerability of ecosystems worldwide – and the people who depend on these environments to survive – CARE and WWF launched an ambitious new institutional alliance in 2008. The alliance brings together two of the largest representatives of the conservation and development worlds to find new ways to meld poverty-fighting and environmental conservation efforts. CARE and WWF are already working together on the ground in northern Mozambique to help coastal communities protect the area’s unique biodiversity while developing more diverse, sustainable, and profitable livelihoods. Moving forward, we aim to expand this work to other countries in Africa and eventually worldwide. CARE recognizes the threat that climate change poses to our vision of a world of hope, tolerance and social justice, where poverty has been overcome and people live in dignity and security. If unchecked, it will undermine decades of poverty-fighting programs and the hard-won victories of vulnerable communities worldwide. To prevent this, CARE is working at grassroots, national and international levels to help the communities we serve reduce their vulnerability to climate change and advocate for fair and effective policy responses. Tackling climate change requires the combined efforts of many different actors, each with a distinct role to play. In line with our 2 expertise, CARE is specifically focused on developing pro-poor approaches to address the human face of climate change; we are responding to the needs of those individuals and communities who are most affected by and least able to cope with the consequences of global warming. Building on more than six decades of experience working with poor communities worldwide, CARE’s approach to climate change is unique in that it focuses specifically on helping extremely poor households to adapt to and thrive in changing environments. Climate change has implications for a broad span of CARE’s programs – from agriculture, emergency relief and health to economic development and peace-building. Because of its significance and wide-reaching impact on our work, CARE recently established a Climate Change Innovation Fund to support our on-the-ground programming, research, innovation and advocacy around climate change. The flexible nature of the Fund enables CARE to invest money to meet the most pressing programmatic needs, such as launching new climate change initiatives, developing innovative solutions, building partnerships and learning from our experiences. All contributions to the Fund will be used to support our work in one or more of the following areas: 1. Helping poor families to adapt to the effects of climate change; 2. Making carbon markets work for the poor; and 3. Advocating for reductions in carbon emissions and increased resources for vulnerable communities to adapt to climate change. In Mali, Workia Konake shows off okra and corn seeds that she is about to plant. One of the ways that CARE helps communities to adapt to climate change is by introducing more resilient crops and agricultural technologies that reduce farmers’ susceptibility to changing weather patterns. During the initial phase of the Fund, our primary focus will be on helping vulnerable households to develop sustainable, resilient livelihoods that increase food and economic security, while conserving land and water resources. This includes investing in the design and implementation of on-the-ground programming, the development of innovative tools, internal capacity building, and research and advocacy. This proposal for DONOR NAME describes the types of programs supported by the fund, according to each of the three focus areas identified above. We invite DONOR NAME to contribute her/his/their/its generous support to the Climate Change Innovation Fund so that CARE can continue to advocate for vulnerable communities worldwide and help them to mitigate, prepare for and respond to the consequences of climate change. 3 Programs Supported by the Fund The Climate Change Innovation Fund will support CARE’s work in the following areas: I. COMMUNITY BASED ADAPTATION Community-based adaptation (CBA) aims to reduce the harmful consequences of climate change for individuals, households and communities. It targets the most vulnerable populations and focuses on activities that yield the biggest “bang for the buck.” A simple example of CBA is supporting households in Bangladesh to raise ducks rather than chickens, as ducks, being swimmers, have a significantly higher chance of surviving heavy monsoon floods. Evidence demonstrates that climate change is altering annual monsoon patterns in South Asia. Here, Sharikon, a 10-year-old resident of Chawhara, Bangladesh, stands by the remains of her home, which was destroyed during a monsoon. CARE is helping people like Sharikon to better adapt to and protect themselves from the effects of climate change. CBA is a long-term process based on local priorities. It marries cuttingedge climate science with local knowledge, and it increases people’s sense of security and hope for the future. CARE has been a leading developer and proponent of CBA since 2004. Our perseverance is beginning to pay off, as CBA is now widely endorsed by the UN, World Bank and others as an essential part of a global response to climate change. CARE’s approach to community-based adaptation entails: Reducing the risk of disasters: Climate change is magnifying the risk of natural disasters everywhere, but especially in those parts of the world where there are already high levels of human vulnerability. Establishing early warning systems, improved shelters, and food and seed banks are therefore critical to reducing the risk of disasters and minimizing their longterm consequences. Doing so pays off: for every dollar that CARE invests in disaster risk reduction (DRR) and preparedness, many more dollars are saved in disaster response. Making livelihoods more resilient: Of course, adaptation to climate change entails more than dealing with its catastrophic impacts. Though violent storms and other extreme events grab newspaper headlines, incremental changes – such as higher temperatures and chaotic rainfall patterns – pose an even bigger threat to poor people. Therefore, it is particularly important for CARE to help communities and local institutions to make rural livelihoods more resilient to climate variability and slow-onset changes. This involves, for example, 4 rejuvenating appropriate traditional knowledge,1 promoting innovative agricultural practices and/or diversifying income sources. Strengthening local capacity: Local actors already have many of the skills, experiences and relationships needed to counter the impacts of climate change. However, to make good use of these assets, they need additional training to understand climate risks, identify appropriate adaptation measures and integrate this knowledge into planning and decision-making processes. Breaking down entrenched inequities and discriminatory power structures: Low levels of formal schooling, limited access to information, political marginalization and a lack of decisionmaking power within their households and communities are among the most serious constraints on poor people’s adaptive capacity. Entrenched inequities and discriminatory power structures must be addressed if poor people are to find their own solutions to climate change. CARE is tackling these issues by empowering women, enabling vulnerable groups to participate in local decision-making, insisting on transparent governance and full accountability, and ensuring equitable access to resources and essential services such as health and education. Adaptation to the Impact of Rapid Glacier Retreat in the Tropical Andes Project (PRAA) Recent scientific studies indicate that the glaciers of the upper Andes have retreated at the alarming average rate of almost 1 percent annually over the last 30 years. Temperature increases are reducing ice cover and glacial run-off, which is critical to the preservation of high-altitude ecosystems and to the survival of surrounding communities. In addition to affecting mountain ecosystems, climate change in the Andes and the consequent retreat of glaciers is already beginning to affect the water supplies of big cities in Bolivia, Ecuador and Peru. CARE’s PRAA project, which is supported in part by the World Bank, helps local communities and governments in Bolivia, Ecuador and Peru to monitor glacier retreat, ensure that the impact of glacier retreat is recognized and incorporated into local and regional planning, raise awareness about this issue at local, regional, national and international levels, and help affected communities to develop and implement adaptation plans to deal with the effects of retreating glaciers. In Ecuador, for example, CARE’s Aja Shuar project is working with members of the Shuar indigenous group in the Amazonian region of the country to revive indigenous agricultural practices that have been threatened by migration and loss of habitat. The project is encouraging the expansion of ajas - small gardens packed with a large diversity of medicinal and edible plants. The benefits of the ajas are numerous; in addition to preserving cultural practices, the farms offer excellent and diverse sources of nutrition, ensure the conservation of rare plant species and offer families sustainable sources of food and income. 1 5 Further Learning and Innovation CARE continues to break down the barriers that prevent poor people from adapting to climate change. For instance, we have spent two years developing and field testing a climate vulnerability and capacity analysis (CVCA) tool. The CVCA generates detailed information about livelihoods, climate risks and adaptive capacity, so that communities, governments and organizations can understand the local impacts of climate change and plan an effective response. We are also building on our experience implementing people-centered CBA projects by developing large-scale regional learning programs. For example, CARE aims to launch our African Adaptation Learning Program with a $10 million grant from the UK Department for International Development (DfID). Throughout its five-year duration, the program will work with highly vulnerable communities in six sub-Saharan countries where the impacts of climate change are projected to be particularly high. The results-oriented activities supported by this program will provide a wealth of insights into what works, who benefits, and how future activities by CARE and others can be even more effective in responding to the threats of climate change. All of CARE's learning programs function as incubators and test-beds for groundbreaking ways to design, implement, monitor and evaluate the effectiveness of projects. They also demonstrate the complementary roles that national governments, local authorities and civil society can play in helping the most vulnerable people adapt to climate change. II. MAKING CARBON FINANCE MECHANISMS WORK FOR POOR PEOPLE In 1992, governments around the world adopted the United Nations Framework Convention on Climate Change (UNFCCC). Initiated in 1994 with over 150 signatories, the UNFCCC entailed specific commitments by industrialized countries to reduce their greenhouse gas (GHG) emissions to 1990 levels by 2000. The Kyoto Protocol, which came into effect in February 2005, set slightly more ambitious targets. It aimed for a 5 percent reduction below 1990 greenhouse gas emissions levels by 2012. More important than these numbers, the Kyoto Protocol introduced a “framework for market-based management of the global atmosphere.” As such, 2005 marked the birth of a global carbon market. Both compliance and voluntary carbon markets have subsequently taken off. Although dominated by the Kyoto Protocol’s Clean Development Mechanism (CDM) and the European Union’s Emission Trading Scheme (ETS), the compliance market includes the Kyoto Protocol’s Joint Implementation (JI) scheme and Australia’s New South Wales Greenhouse Gas Abatement Scheme (GGAS). Regional greenhouse gas abatement schemes have also been established in the United States, and it is likely that a nationwide program will soon come into effect. Meanwhile, many individuals and small businesses not bound by specific caps or regulations participate in the voluntary market. As a result, enormous amounts of money are being mobilized to reduce GHG emissions. Indeed, more than $10 billion changed hands in 2005, while this figure grew to $30 billion in 2006, $60 6 billion in 2007, and is expected to surpass $1 trillion by 2025. Today, more than 1,150 projects have been approved under the CDM, but only six are in Sub-Saharan African countries other than South Africa. Despite vast potential, only a few projects directly contribute to poverty reduction. Carbon Finance: Potential to Support Improved Land and Forest Management Roughly two-thirds of all ecosystem services are in decline worldwide.2 This poses a profound threat to the UN Millennium Development Goals – especially those pertaining to hunger, water, child mortality and disease.3 The loss of forest ecosystems and their services is particularly grave. Between 2000 and 2005, roughly 13 million hectares of forest were cut down each year.4 In addition to directly reducing biodiversity and increasing barriers to sustainable poverty reduction, deforestation and forest degradation contribute to climate change. Land-use change is responsible for 18-30 percent of annual global greenhouse gas emissions.5 This contribution is the largest of any single sector, with the possible exception of electricity and home heating. The conclusion is inescapable: if humanity fails to change the way it values and manages forest landscapes, we will lose the fight to avoid dangerous climate change. Indeed, deforestation in Brazil and Indonesia alone are likely to cancel out 80 percent of all gains achieved if industrialized nations meet their obligations under the Kyoto Protocol.6 Meanwhile, degraded landscapes have tremendous potential to sequester carbon in soils and vegetation. For instance, there are roughly 1 billion hectares of farmland in developing countries that could be made far more productive – and more resilient to the impacts of climate change – through conversion to agroforestry systems. This would make a tremendous contribution to reducing poverty while safely sequestering carbon. If completely implemented over the next 50 years, the expansion of agroforestry systems could result in the removal of 50 billion tons of CO2 from the atmosphere. CARE has been at the cutting-edge of organizations exploring how to tap carbon finance in support of poor people’s development and adaptation goals for the past 20 years. We continue to be a leader in this field – both in terms of learning how to maximize community benefits and minimize risks. One component of our work involves preventing emissions from deforestation and forest degradation (REDD). CARE is developing REDD programs in Guatemala, Tanzania, and The Board, Millennium Ecosystem Assessment. 2005. Living Beyond Our Means: Natural Assets and Human Well Being. Available online at: http://www.milleniumassessment.org/en/synthesis.aspx. 3 The eight Millennium Development Goals (MDGs) are focused on significantly reducing extreme poverty by 2015. To learn more, visit: www.un.org/millenniumgoals. 4 United Nations. 2008. The Millennium Development Goals Report. New York: United Nations. 5 Intergovernmental Panel on Climate Change. 2000. Land-use, Land-use Change, and Forestry: a Special Report of the IPCC, Intergovernmental Panel on Climate Change. Cambridge: Cambridge University Press. Available online at: http://www.grida.no/Climate/ipcc/land_use/index.htm. 6 Santilli, M. et al. 2005. “Tropical Deforestation and the Kyoto Protocol.” Climate Change. 71:267-276. Available online at: http://www.edf.org/documents/4867_Santillietal_ClimateChange.pdf. 2 7 Uganda, all of which are working with local communities to conserve existing forests, while enabling households to develop sustainable livelihoods. In addition to reducing CO2 emissions from deforestation and forest degradation, these model projects will demonstrate that carbon financing for REDD can, and in many cases should, be designed to simultaneously yield multiple social, economic and ecological benefits. Ultimately, CARE aims to support the replication of similar initiatives on a global scale. Another example of our forest-based carbon finance work is the Communities, Conservation and Carbon (C3) Initiative, which CARE is implementing in partnership with the World Agroforestry Center (ICRAF). The C3 Initiative aims to use the land’s ability to absorb and retain carbon in diverse, productive agroforestry systems to support poverty reduction, conservation and climate change mitigation. As part of an integrated sustainable agriculture system, agroforestry diversifies the asset-base of poor households and, in doing so, enhances both their income and food security. These systems can also help communities to adapt to climate change as carbon-rich soils store more water, and trees are less vulnerable to drought, floods and other forms of extreme weather than conventional crops. This method also reverses land and soil degradation while increasing biodiversity. CARE’s Mi Bosque Program in Guatemala With the support of AES Corporation, CARE initiated a project in Guatemala called Mi Bosque (“My Forest”) in 1989 to understand the potential of carbon sequestration to slow or reduce the amount of greenhouse gases in the atmosphere. Over two decades, Mi Bosque has worked to promote community forestry development and the sustainable management of natural resources. Within the last two years alone, Mi Bosque worked with more than 2,000 community members to reforest 239,833 hectares across132 communities. Over the past nine years, Mi Bosque has replanted 10.8 million trees. The benefits to local communities have been substantial. As a result of improved agroforestry systems, the average plot of land in the project area has experienced a 150 percent increase in productivity and the amount of revenue generated. Below, community members are being trained on the production of silver fir trees. Through the C3 Initiative, CARE and ICRAF are collaborating to: 1. Create a suite of tools that communities worldwide can use to develop and implement afforestation/ reforestation projects; and 2. Implement model projects in Africa, Asia and Latin America. The toolbox will include a cost-effective carbon measurement and monitoring system that will integrate community-collected measurements with satellite remote sensing. In addition, the toolbox will provide detailed information about the use of different species (and combinations) in agroforestry systems to address location-specific challenges (e.g. poor soil quality or erosion) and household-specific needs (e.g. fuel, fodder or fruits). Project managers and community members 8 will use the toolbox to develop agroforestry systems that offer the best possible combination of benefits to local residents. Carbon finance: Potential to Provide Energy for the Poor Carbon markets also offer potential to provide increasing numbers of vulnerable families with access to clean energy. Currently, some 2 Expanding Clean Energy in Uganda billion people worldwide do not have access to clean, safe cooking fuels.7 This Currently, 91 percent of Ugandans use inefficient contributes to economic, health and kerosene lamps for lighting and nearly 90 percent environmental problems, including of rural families cook with firewood. This deforestation, and places an enormous contributes to the country’s extremely high rate burden on poor families. In southern India, of deforestation (the country lost about 26 for example, families (primarily women and percent of its forest from 1995 to 2005). There is children) typically spend two to six hours proven demand for clean energy products among each day traveling distances of four to eight Ugandan families, and CARE aims to expand kilometers to collect wood.8 Poor people access to these technologies. We will build on generally live in some of the most our network of well-established village savings ecologically vulnerable areas of the world and loan associations (VSLAs) - small, selfand feel the effects of climate change most managed groups comprised primarily of women. CARE currently works with 100,000 VSLA acutely. These effects are only exacerbated members in Uganda – a number that is expected by the depletion of natural resources, as, for to reach half a million in the next decade. VSLAs example, deforestation worsens erosion and provide both a means to finance clean energy increases people’s vulnerability to severe products and to promote their wide distribution. storms and flooding. While poor For this proposed initiative, CARE’s role will be households may recognize that the to identify feasible clean energy products, recruit depletion of resources increases their risk, and train local distributors, provide information they typically have no other alternative. necessary for earning carbon credits on sales, guarantee investor risk and local distributor trade credit, and link distributors to VSLAs. CARE will also supervise the supply chain of the VSLA networks so that products are made available to large numbers of consumers, sellers and buyers are properly informed of the nature and use of the product, there is transparency about price and, after sales, consumers have access to part replacement if necessary. Clean, affordable cooking and lighting energy products reduce or eliminate the use of fossil fuels and firewood, emit less or no smoke and have a lower cost of ownership over time. When made available to poor households, these products offer enormous benefits, as they can free up time for school and income-generating activities; curb deforestation; expand business opportunities and the growth of local economies; improve the quality of schools, clinics and other public institutions; and reduce disease (respiratory infections caused by smoke output from traditional stoves are a leading cause of death among children under 5 in many countries). 7 8 UK Department for International Development (DFID), August 2002. Energy for the Poor. Ibid. 9 CARE has significant experience introducing clean energy products in vulnerable communities. In Darfur, Sudan, for example, CARE introduced fuel-efficient stoves to reduce demand on the region’s scant supply of firewood – a source of communal tension and violence. In Rwanda, CARE has trained women, orphans and vulnerable children to build energy-saving stoves to reduce deforestation and provide a source of income for participants. Likewise, in Peru, CARE has successfully trained families to In Uganda, Davula Olobo uses an energy-saving stove that build improved stoves to reduce acute she learned to build with CARE’s help. respiratory infections among children. CARE is now exploring the possibility of generating carbon credits through the expansion of clean energy products in poor communities. We have identified Uganda as a feasible location for this pilot, as described in more detail in the text box on page 9. III. ADVOCACY To make a lasting impact on global poverty, CARE CARE Brings U.S. Citizens to Capitol Hill works on three fronts: meeting basic needs; addressing the social injustice, inequity, and In June 2008, some 400 citizen advocates discrimination that underlie persistent poverty; from 39 states visited Washington, D.C. to and advocating for improved policies at local, lobby Congress on three key issues for national, and international levels. Policy advocacy CARE, including climate change. They held 241 meetings with their members of is the essential third leg of the tripod without Congress, during which they asked their which our work to reduce the effects of climate senators and representatives to give poor change and fight poverty cannot be effective or countries the tools they need to adapt to the complete. CARE works in the centers of power climate crisis. around the world, including Washington, D.C., where leaders set climate change and development policies and define parameters for use of government resources. The U.S. has an opportunity to demonstrate global leadership by bringing about critical policy changes that would reduce the impact of climate change on the world’s poorest people – and therefore strengthen their efforts to live better lives. U.S. policy priorities and resource commitments also have a strong “signaling” effect – to both other foreign donors and recipient countries about what the U.S. considers priorities. CARE is valued in Washington and around the world for our long-term development perspective based on our decades of experience fighting global poverty. We have developed climate change policy positions and advocacy arguments by tapping into our experience working with some of the world’s poorest people. CARE is leveraging this experience to raise the profile of the human 10 face of climate change, and in doing so, we are adding a new, unique and credible voice to the climate change policy discussion. CARE’s U.S. climate change advocacy objectives call on the U.S. Administration and Congress to commit to domestic legislation that: Establishes sustainable and immediate reductions in domestic greenhouse gas emissions, in line with scientifically sound targets; Supports the reduction of emissions from deforestation and forest degradation in developing countries (representing approximately 20 percent of man-made carbon dioxide emissions) in a manner that protects the rights and interests of forest-dependent communities; Sets aside a robust portion of generated revenues – as new and additional funding, above and beyond official development assistance – to support adaptation in developing countries vulnerable to climate change; and Ensures that adaptation funding reaches the poorest, most vulnerable populations. In addition to meeting directly with legislators, CARE is working with allies to expand the social movement on climate change within the U.S. We are collaborating with partners, including other nongovernmental organizations (NGOs) and UN agencies, to sponsor community events and trainings in the U.S. to educate and mobilize citizen advocates to meet with their members of Congress. At the international level, CARE is working with allies to raise the profile of the human face of climate change in global negotiations on a post2012 climate treaty. CARE participates in meetings of the Conference of the Parties to the UN Framework Convention on Climate Change, and in doing so ensures that the needs of the world’s poorest are recognized during these negotiations. In December 2008, at the 14th meeting of the Conference of Parties to the UNFCCC, CARE and other NGOs called on members to honor the rights of people most vulnerable to climate change. Contributing to Climate Change Research In August 2008, CARE and UN’s Office for the Coordination of Humanitarian Affairs released a joint report on the humanitarian implications of climate change. The report maps specific hazards associated with climate change, such as floods, cyclones and drought, and identifies regions most vulnerable to climate change over the next 20-30 years. This helps policymakers, donors, and organizations like CARE make more strategic funding choices. The report reveals key humanitarian disaster hotspots, including Africa, Central and South Asia and Southeast Asia. CARE presented the paper to key policymakers in Washington, D.C., and we are using it to change the way we do our own business. We are also working on the ground in the communities we serve to promote local and national climate change advocacy. For example, in Uganda, which has one the highest deforestation rates in the world, the government has been giving forest land away to powerful corporations. Forests are being cleared for profit. This has led to soil erosion, which combined with drought, is diminishing the ability of small farmers to grow food. CARE is working with women in Uganda to stop rampant deforestation and change national 11 policies. We believe that people in poor communities are crucial allies in managing a situation that ultimately affects us all. Funding Need CARE’s initial funding goal for the Climate Change Innovation Fund is $xx million. Donors who support this fund will receive annual reports from CARE on how their contributions have been used to support climate change programming and advocacy around the world. Conclusion Climate change is an imminent threat to poor people in the developing world and has the potential to reverse decades of progress. As one of the world’s leading poverty-fighting organizations, CARE takes this threat very seriously. We know that we are helping millions of people live better lives. We cannot – we must not – be satisfied, however, unless we know these improvements will stand the test of time. For this reason, investments in our climate change response work are critically needed. On behalf of the communities we serve, we thank DONOR NAME for considering a gift to the Climate Change Innovation Fund. May 2009 12