Climate Change and the Most Vulnerable Countries – the Imperative

to Act

Veerle VandeweerdUnited Nations Development Programme

July 2008

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Why integrate climate risks into development?

Adaptation is central to development effectiveness:

Climate change could stall or even reverse development gains

Addressing climate change impacts can make poverty reduction, disaster prevention, etc. more successful (win-win)

Effective institutions are those that manage climate change risks on an ongoing basis

Preventing climate damages is cost-effective versus recovery

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The HDR 2007: Focus on adaptation

Impact of climate change can be a one way ticket to absolute poverty.

Action is needed and is needed now.

International Action:

•Deliver on commitments;

•Climate proof official development assistance;

•Pay more attention to silent catastrophes and impact of climate change on development aid;

•Scale up and coordinate funds;

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HDR 2007: Focus on adaptation

National Action:

•Mainstream adaptation

•Enhance climate resilience of development process;

•Secure new and additional financing.

Adaptation needs mainly to occur at the community level.

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What does it mean to integrate climate risks into development?

UNDP defines adaptation as maximizing development benefits by integrating climate change into strategies, policies, and measures

Key Actions• Climate change scenarios systematically incorporated

• Socioeconomic climate vulnerability assessed

• Cost effective alternative responses assessed and implemented (development and poverty reduction dividend)

• ‘Adaptive systems’ created for managing evolving risks

• Institutional capacity & cross-agency relationships strengthened

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1. CC integrated risks into poverty reduction policies and measures

2. Financing options expanded to meet national adaptation costs

Project

Project

Water

Project

Project

Agriculture

Project

Disaster Risk

Project

Project

Coastal zone

GEF • LDCF• SCCF• SPA

Across Scales

National Systems created*

UNDP Programmes climate-proofed

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Bilateral

* includes enabling activities

3. Community-based adaptation enhanced

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Expanding financing options to meet national adaptation costs

Adaptation:

Expanded financing options for meeting national adaptation costs

Baseline:

Ongoing development funding and national programmes

National Budget

ODA

New and additional resources

Private sector involvement

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co

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, fina

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Local - - - - National

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Financing adaptation

Adaptation financing is dependent on public resources and international support

Ongoing initiatives•GEF: SCCF, LDCF, …•Bilaterals •Multilaterals: e.g. WB SCF, UNDP Japanese funded pilot•UNFCCC: Adaptation Fund

New and additional resources needed•Up to 50 billion US$/year•Learning by doing

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Sources of investment and financial flows: Adaptation

Private sources of funding can be expected to cover a portion of the adaptation costs in several sectors. In particular in the AFF and the infrastructure sector where investment in privately owned physical assests will be needed.

•However, public resources are expected to play a predominant role in all adaptation sectors and in particular in the coastal zone and water sector

•Measures will be needed to encourage/support private sector adaptation and additional sources of funding dedicated to adaptation will be needed.

•Adaptation = good development policy

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Adaptation Learning Mechanism – www.adaptationlearning.net

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Trends and priorities

• Most importantly priorities should be identified by developing countries themselves in accordance to their specific national conditions and needs.

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Thank You