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Addressing climate change in Asia and the Pacific Major challenges for agriculture and rural development The average temperature in the Asia and Pacific region could rise by some 0.5 to 2 degrees Celsius by 2030 and between 1 and 7 degrees Celsius by 2070. Annual rainfall is also expected to increase in several parts of Asia while arid and semi-arid areas would become drier. The areas predicted to get more annual rainfall would nonetheless suffer decreased water availability as the rainfall would be concentrated during the rainy season in fewer incidences of highintensity rainfall – with massive run-off and floods expected to be the result. Rising sea levels will affect a significant number of countries in the region, with small atoll Pacific Island countries, Bangladesh, the Maldives and Viet Nam particularly hard hit. In the past 50 years, Viet Nam has experienced a 50-centimetre sea-level rise, as recorded in the Hon Dau station. It is expected that a 30-centimetre increase will be experienced in the Mekong Delta by 2050, and this increase, coupled with salinity intrusion, will lead to the loss of some 420,000 hectares of arable land. The projected sea-level rise is likely to result in significant losses of coastal ecosystems. The Intergovernmental Panel on Climate Change (IPCC) concludes with high confidence (about an 8 out of 10 chance of an event happening) that 1 million people along the coasts of South and South-East Asia will be at risk from flooding. The risks to agriculture are among the most urgent to be addressed. Most food is produced by smallholder farmers who are dependent on rainfall patterns. According to the International Food Policy Research Institute (IFPRI), 87 per cent of the world’s 500 million smallholder farms – consisting of less than 2 hectares of land largely under rainfed conditions – are in the Asia and Pacific region. In India, where Pacific islands: Cook Islands Fiji Kiribati Marshall Islands Niue Samoa Solomon Islands Tonga more than 50 per cent of total agricultural output comes from smallholders, 72 per cent of farmers are reliant on monsoon rains. But those rainfall patterns are already becoming less reliable. In the inland areas, where average temperatures are increasing the most, many smallholders plant rice and wheat as their main crops, both of which are already at the upper limits of their heat threshold. According to the International Rice Research Institute, if rice is exposed to temperatures of more than 30 degrees Celsius for one hour during the flowering period, the pollen will become sterile. In fact, under current cropping patterns, a 2.5 to 10 per cent decrease in crop yields is projected for parts of Asia by the 2020s, and a 5 to 30 per cent decrease by the 2050s compared with 1990 levels. IFAD’s response Throughout the region, IFAD is engaged in finding new solutions to enhance the adaptive capacity of rural populations, References: IPCC, Fourth Assessment Report, 2007; United States Agency for International Development, Global Climate Change in the Asia-Pacific Region, 2008; IFPRI, Impacts of Climate Change on Agriculture and Policy Options for Adaptation, 2010; Ministry of Natural Resources and Environment, Viet Nam, Climate Change, Sea Level Rise Scenarios for Vietnam, 2009 protect ecosystems and mitigate the effects of climate change. Immediate priorities are to strengthen the resilience of poor rural communities engaged in crop, livestock, fisheries and forestry activities, in order to meet basic food requirements and safeguard livelihoods. Historically, IFAD has been proactive in addressing the needs of vulnerable rural communities, with a special emphasis on women, young people and ethnic minorities, and has promoted sustainable land management and diversification of rural livelihoods as a means to reduce risk. The new generation of projects is building on this approach and further articulating adaptation to climate change responses that help reduce vulnerability and build resilience to climate shocks. The projects that IFAD supports also focus on sustainable natural resource management and introduce simple innovative techniques for land and water conservation that build resilience to shocks. IFAD grants are helping pilot new and innovative approaches and technologies for climate change adaptation and mitigation that could become the key strategies of tomorrow. Examples of climate change activities in IFAD loans and grants IFAD loans Bolstering defences against rising seas in Bangladesh Experts have identified the Ganges Delta in Bangladesh as one of the areas in the world at greatest risk from climate change. The fertile farmland of the delta is vulnerable to rising sea levels and increasingly extreme weather conditions. The 2007 Water Sector Track Record of Bangladesh carried out by the Embassy of the Kingdom of the Netherlands estimated that, each year, 20,000 to 30,000 households lose their homes, land and livelihoods as a result of erosion and flooding. An IFAD-supported project, now in its fourth phase, is helping poor farmers to protect their land from encroaching water levels and adapt to more frequent and severe cyclones and storms. The project’s activities in this area include building flood protection embankments and drains to protect chars (islands within the delta made of silt deposits) from salt water intrusion, and establishing cyclone shelters, shelters for livestock and protective tree belts. Project name: Char Development and Settlement Project, phase IV Contact information: Thomas Rath, Country Programme Manager, [email protected] Partner: Government of the Netherlands Project duration: 2010-2018 Waste into clean energy in China ©IFAD/G.M.B.Akash In developing countries, daily dependence on biomass fuel is a major contributor to deforestation and forest degradation, and also constitutes a health hazard in the home. Activities that reduce emissions from deforestation and enhance forest carbon stocks through conservation, increased forest cover and the sustainable management of forests now play a key role in development and poverty eradication. An IFAD-financed povertyalleviation project in West Guangxi promoted the use of household biomass units, which transform human and animal waste into a clean, renewable and affordable energy source for lighting and cooking. In addition to producing fuel, biogas digesters have the added benefit of producing a high-nutrient fertilizer and encouraging better sanitation on farms. The digesters were adopted by 30,000 households by project close, resulting in savings in terms of firewood of about 56,500 tons, equivalent to the recovery of 7,470 hectares of forest. Thanks to this technology, people, especially women who are traditionally responsible for fuelwood collection, have more time for agricultural and other income-generating activities. Biogas technology has now been introduced in a number of IFAD projects across regions. Project name: West Guangxi Poverty-Alleviation Project Contact information: Sana Jatta, Country Programme Manager, [email protected] Partner: World Food Programme Duration: 2002-2008 Disseminating solar technology in China Renewable energy sources can contribute to energy and cost savings and also provide global benefits by helping to reduce greenhouse gas emissions. An IFAD-supported programme in the Xinjiang Uygur Autonomous Region helps install solar systems in poor rural households to meet their power needs and reduce their dependence on fuelwood and other energy sources that result in deforestation or greenhouse gas emissions, as well as negative human health impacts. The programme also supports agricultural development through technology transfer, organic production and marketing, and a microfinance component, with a strong focus on empowering women’s groups to manage natural assets. Programme name: The Xinjiang Uygur Autonomous Region Modular Rural Development Programme Contact information: Sana Jatta, Country Programme Manager, [email protected] Partner: Government of the Xinjiang Uygur Autonomous Region Duration: 2008-2014 Introducing dryland crops in India In Central India, the problem of erratic rainfall has become increasingly severe over the past six years. The monsoon rains have ceased to be reliable. The south-western part of the state of Orissa is now experiencing longer dry periods and increasingly unpredictable rainfall patterns. To help farmers adapt to these changing climatic conditions, an IFAD-supported programme promotes the cultivation of crops adapted to drier conditions, such as pigeon pea, chickpea, black gram and groundnut. The adoption of these crops is gradually changing the livelihoods of smallholder farmers who until recently were increasingly struggling to produce traditional crops under the changing climatic conditions. Programme name: Orissa Tribal Empowerment and Livelihoods Programme Contact information: Nigel Brett, Country Programme Manager, [email protected] Partners: Government of the United Kingdom; World Food Programme Programme duration: 2003-2013 http://www.otelp.org/ Off-season cropping in the Indian Himalayas In recent years, the largely self-sufficient survival system of Himalayan mountain communities has been seriously undermined. The impact of climate change has led to increased degradation of natural resources, particularly soil erosion and deforestation, and this, in turn, has negatively affected productivity and livelihoods. An IFAD-supported project is strengthening the resilience of poor rural people living in these mountain areas to changing environmental and socio-economic conditions by encouraging households to grow two crops of off-season vegetables each year. This improves nutritional security, and sale of surplus production provides a much-needed source of income. Project name: Livelihoods Improvement Project for the Himalayas Contact information: Nigel Brett, Country Programme Manager, [email protected] Project duration: 2004-2012 http://www.ajeevika.org.in/ *The activities described represent a component or a specific feature of the project presented. Improving farmer resilience in Mongolia Over the past 60 years, Mongolia has experienced an increase in annual mean temperatures of 1.8 degrees Celsius, changes in the duration of heat and cold waves, and changes in the pattern and predictability of rainfall. High mountain glaciers are melting at a rapid rate, and permafrost is degrading significantly. The groundwater table is falling in arid regions, and land degradation and desertification have worsened as a result of water shortages and lack of precipitation. Extreme weather events such as drought and dzud (harsh winters) have also increased in frequency and intensity. All of these phenomena are attributable to or aggravated by climate change, and will increasingly damage the livestock sector on which poor rural people depend, and overall economic development in Mongolia. An IFAD loan-supported development project will help improve the capacity of herder households to adapt to changing climatic conditions by introducing sustainable pasture management to protect land and water resources and conserve the pastoral ecosystem. In addition, the Government of Mongolia and IFAD have tapped into the Special Climate Change Fund of the Global Environment Facility (GEF) to strengthen the capacity of herders to address climate change and to reinforce the resilience of the Mongolian livestock system to changing climatic conditions. This is done by improving natural resource management, climate-proofing the pasture water supply, and improving the risk management system as a response to climate change uncertainties. The GEF-supported project also introduces a weather index-based insurance scheme to help herders cope with livestock losses resulting from climate-induced shocks and leading to a loss of livelihood. Project name: Market and Pasture Management Development Project Contact information for IFAD loan: Frits Jepsen, Country Programme Manager, [email protected] Partner: Global Environmental Facility Integrated GEF grant (Special Climate Change Fund): Mongolia Livestock Sector Adaptation Project Contact information for GEF grant: Roshan Cooke, Regional Climate and Environment Specialist, [email protected] Project duration: 2011-2015 Planning for climate change in Viet Nam The IPCC has predicted that the Mekong Delta, including Tra Vinh Province, will be among the regions affected earliest and most severely by rising sea levels and saltwater invasion of agricultural land, and by an increasing number of extreme weather events such as flooding after heavy rains. The consequences of global climate change will not only undermine efforts to reduce poverty, but are likely to exacerbate poverty by destabilizing agricultural activities in the region. An IFAD-supported multisectoral programme includes work with national and local government bodies to integrate climate change issues into local agricultural and rural development planning and poverty reduction strategies, and increase adaptive capacity in the region. In this regard, a climate-proofing tool is being integrated into the market-oriented commune planning process. During the upgrading of agriculture value chains, measures are being promoted that show a high potential for climate change adaptation and possible mitigation. They include “climate-smart” cultivation methods, such as the system of rice intensification and introduction of new salt-resistant varieties, and also post-harvest measures such as using airtight seed storage bags. Programme name: Programme for Improving Market Participation of the Poor in Ha Tinh and Tra Vinh Provinces Contact information: Atsuko Toda, Country Programme Manager, [email protected] Partner: German Agency for International Cooperation (GIZ) GIZ project name: Poverty Alleviation in Rural Areas (PARA) in Ha Tinh and Tra Vinh Provinces Contact information: Dr Georg Deichert, Chief Technical Adviser, [email protected] Programme duration: 2007-2013 *The activities described represent a component or a specific feature of the project presented. IFAD grants Increasing local resilience in Bhutan, India and Nepal In recent years, economic growth, shifting population dynamics and climate change have taken place so intensively and rapidly that the traditional adaptation mechanisms of the people of the Hindu Kush-Himalayan region have lost their efficacy. The impact of changes and variations in weather patterns is becoming more pronounced and of greater concern for communities across the region. Prolonged drought and intermittent dry spells between periods of rain are diminishing the moisture content of soils and the availability of water, and resulting in decreased agricultural productivity and scarcity of drinking water. An IFAD-funded programme is strengthening the resilience of poor rural communities to changing environmental and socio-economic conditions in the region. It is undertaking an assessment of the impact of climate change and socio-economic changes on food and income security, and is documenting and mapping risks and livelihood vulnerability. It also analyses practices and institutional mechanisms that link global to local ecosystem services to improve livelihoods and enhance adaptation to climate change. The programme conducts participatory action research to validate and test poor communities’ coping mechanisms. In the area of institutional strengthening, the programme is helping to strengthen the capacity of partner institutions to undertake analytical work on adaptation to climate change. It is also building the capacity of mountain communities through experience-sharing and cross-learning. Governments and other national institutions are supported through studies for the formulation and refinement of pro-poor policies to facilitate adaptation to climate change. Finally, a multistakeholder mountain consortium is being initiated to promote sharing of experiences and best practices in addressing the challenges of persistent poverty in the mountain areas. ©IFAD/G.M.B. Akash Grant name: Programme for Linking Livelihoods of Poor Smallholder Farmers to Emerging Environmentally Progressive Agro-industrial Markets Contact information: Ganesh Thapa, Regional Economist, [email protected] Partner: International Centre for Integrated Mountain Development Duration: 2009-2012 Rewarding environmental services in China, Indonesia, the Lao People’s Democratic Republic, Nepal, the Philippines and Viet Nam Rewards for environmental services can improve the livelihoods of rural communities by giving farmers an added incentive to increase tree cover with a variety of species on their agricultural land and undertake other soil and land conservation or food security activities. An IFAD-funded programme, now in its second phase, pilots systems of rewards for environmental services in upland areas of China, Indonesia, the Lao People’s Democratic Republic, Nepal, the Philippines and Viet Nam. By diversifying agricultural output rather than relying on a single crop, farmers can reduce their vulnerability to climate change. Tree products provide farmers with a number of income options and increase their resilience to climate stress. In Indonesia alone, more than 16,000 farmers received permits to grow coffee while protecting the forests. Providing communities with clear land tenure rights gave them the incentive to maintain or restore environmental services such as replanting and managing forest areas. One community negotiated with a private dam operator to reduce silt in the river by applying soil protection techniques on their plots in return for a micro-hydroelectric machine for energy supply. The company then engaged in negotiations with communities upstream of other dams. The activities also benefit lowland communities by protecting the watersheds, and they shore up carbon sinks. These activities are providing evidence that payments for ecosystem services (PES) incentives do not necessarily need to be financial, but can be provided in the form of secure land rights. Because of this, the World Agroforestry Centre prefers the concept of rewards rather than payments for environmental services (RES). Rewards can include a range of incentives, including cash payments, low-cost information, marketing, input and credit services, and conditional property rights. During the programme, three paradigms were identified that categorized different approaches to PES/RES: “commoditized environmental services” (CES), “compensation for opportunities skipped” (COS) and “co-investment in stewardship” (CIS). CIS is the most ‘pro-poor’ because both CES and COS presuppose property rights that the rural poor often do not have. CIS involves building trust after initial conflicts over the impacts of resource use on environmental services have been clarified and a realistic joint appraisal undertaken. CIS is likely to deliver longer-term opportunities for climate-smart sustainability. ©IFAD/MLIPH Grant name: Programme on Rewards for, use of and shared investment in Pro-poor Environmental Services (RUPES), phase II Contact information: Laura Puletti, Grants Coordinator a.i., Gender and Knowledge Management, Asia and the Pacific Division [email protected] Partner: World Agroforestry Centre (ICRAF) Programme duration: 2002-2012 http://rupes.worldagroforestry.org/ Building the capacity of indigenous people in India to address climate change A project for building the capacity of indigenous peoples to cope, adapt or mitigate the effects of climate change on their livelihoods and environments addressed the vulnerability of indigenous peoples to the effects of climate change and environmental degradation, focusing particularly on the Sundergarh district in Orissa State. Building on traditional knowledge and strategies, the project helped indigenous communities develop and disseminate climate change adaptation and mitigation strategies, share information and build local capacity to lobby on decision-making processes related to climate change. Project name: Building the capacity of indigenous peoples to cope, adapt or mitigate the effects of climate change on their livelihoods and environments Contact information: Antonella Cordone, Coordinator for Indigenous and Tribal Issues, [email protected] Partner: Centre for Development Action (CDA) Project duration: 2008 Markets for carbon sequestration: Viet Nam New market opportunities are proliferating for high-value agricultural products and services related to climate change mitigation, such as carbon sequestration. An applied research programme funded by IFAD was designed to ensure that poor rural people, and women in particular, have better access to, and the capacity to take advantage of, these burgeoning opportunities. The programme reviewed and assessed existing activities related to carbon markets in Viet Nam and in three African countries: Ghana, Morocco and Mozambique. Agriculture is the largest greenhouse gas emitter in Viet Nam. In 2000, it was responsible for 65 per cent of total greenhouse gas emissions, mainly as a result of methane emitted in rice fields. It is projected that methane emissions from rice cultivation in Viet Nam will account for 6.3 per cent of the world’s methane emissions by 2030. The programme implemented four activities in Viet Nam related to agricultural climate mitigation and market access: current carbon market activities (review and assess current activities related to carbon markets); access of the rural poor to carbon markets (a study on the institutional mechanisms that can link farmers to carbon markets); climate change mitigation potential (report on the costs and benefits of agricultural mitigation activities in Viet Nam, and identification and evaluation of best practices and options); and a pilot study for testing agricultural mitigation activities on the ground. The programme also established 365 hectares of tree plantations on currently degraded grass and shrub land in Xuan Phong and Bac Phong communes, Cao Phong district, Hoa Binh Province. Programme name: Strategic Partnership to Develop Innovative Policies on Climate Change Mitigation and Market Access Contact information: Bernadette Mukonyora, Research Officer, [email protected] Partner: International Food Policy Research Institute Programme duration: 2008-2011 http://ifadifpri.wordpress.com/ Saline-tolerant farming: the way forward in Bangladesh Farmers in Bangladesh are increasingly facing a range of climate-related threats to productivity, such as cyclones, river floods, salinity intrusion and drought. Impact analysis based on statistical crop models and climate projections for 2030 predicts that several crops crucial to sustaining large food-insecure populations are likely to be negatively affected by changing climatic conditions, unless adequate adaptation measures are adopted. Working with local farmers, an IFAD-funded programme conducted innovative research into adapting saline-tolerant farming systems in the coastal zones of Bangladesh. This research programme was designed to support the IFAD-funded Char Development and Settlement Project IV and to provide responses to climate change challenges affecting the coastal zones of the country. Programme name: Support to Agricultural Research for Climate Change Adaptation Contact information: Thomas Rath, Country Programme Manager, [email protected] Partner: International Rice Research Institute Duration: 2003-2006 *The activities described represent a component or a specific feature of the project presented. C O N TA C T S Reducing vulnerability of Chinese farmers: weather index-based insurance Elwyn Grainger-Jones Director Environment and Climate Division IFAD Tel: +39 06 54592459 [email protected] China’s agricultural production is extremely vulnerable to natural disasters and the impact of climate change, as farmers face the common threats of drought, flooding, hail and frost. Traditionally, Chinese farmers have fallen back on a variety of ad hoc coping strategies, from crop diversification to, more commonly, borrowing money from friends and relatives or relying on remittances. In recent years, the Chinese Government has invested heavily in the development of an agricultural insurance market, through a rapid scale-up of a national multi-peril crop insurance (MPCI) programme. Given the potential of weather index-based insurance (WII) to reduce some of the shortfalls of MPCI, such as high transaction costs, moral hazard and adverse selection, the implementation partners launched the first ever WII pilot project in China. Through public and private cooperation, the project tested the viability of WII as a supplement or alternative to MPCI. WII offers payouts to farmers against objective, measurable indicators such as rainfall or temperature. In this way, poor farmers may be able to manage the risks they are exposed to more effectively, and can plan for the future, making higher initial investments in agricultural activities without exposing themselves to possible catastrophe if the weather affects productivity. LINKS IFAD and climate change www.ifad.org/climate/ United Nations Framework Convention on Climate Change www.unfccc.int Intergovernmental Panel on Climate Change www.ipcc.ch COP 17 www.cop17durban.com World Bank 2010 World Development Report: Development and Climate Change www.worldbank.org/wdr2010 Project name: Reducing vulnerability and managing weather risk in China Contact information: Francesco Rispoli, Technical Adviser, [email protected]; Weijing Wang, Programme Manager, [email protected] Partners: World Food Programme; Chinese Ministry of Agriculture; Guoyuan Agricultural Insurance Company Innovation Mainstream Initiative; Government of China; Bill & Melinda Gates Foundation Duration: 2008-2010 *The activities described represent a component or a specific feature of the project presented. International Fund for Agricultural Development Via Paolo di Dono 44, 00142 Rome, Italy Tel: +39 06 54591 Fax: +39 06 5043463 E-mail: [email protected] www.ifad.org, www.ruralpovertyportal.org November 2011 ©IFAD/G.M.B. Akash IFAD is an international financial institution and a specialized United Nations agency dedicated to eradicating poverty and hunger in rural areas of developing countries.