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Developing Baseline Socioeconomic Scenarios for V&A Assessments Consultative Group of Experts on National Communications from Parties not Included in Annex I to the UNFCCC (CGE) Hands-on Training Workshop on Vulnerability and Adaptation for Asia and Pacific Countries 20~24 March 2006 Jakarta, Indonesia Xianfu Lu National Communications Support Programme (NCSP), UNDP-UNEP-GEF [email protected] 1A.1 In the next 45 minutes or so… • Introduction: what are baseline socio-economic scenarios and why do we need them? • Procedures for developing socio-economic scenarios: how to develop socioeconomic scenarios? • Guidance documents, and data sources • Examples 1A.2 Introduction: what are baseline socio-economic scenarios? • Socio-economic scenarios are plausible, and often simplified, representation of future state of socioeconomic parameters, i.e., they are neither predictions nor forecasts; • Baseline socio-economic scenarios are scenarios that do not account for the effects of climate change. 1A.3 Introduction: why do we need baseline socio-economic scenarios? Increasing demand for policy relevant information has led to the growing consideration of multiple stressors and drivers in V&A assessments. 1A.4 Introduction: why do we need baseline socio-economic scenarios? (continued) V&A assessments suffer from serious weakness if by default they assume that the projected climates will take place in a world with a society and economy similar to today. 1A.5 Introduction: why do we need baseline socio-economic scenarios? (continued) Features about the socio-economic future that have a bearing on our response to climate change. They affect: • Availability of resources to cope with climate change • The administrative quality of future governments • Ability of special interest groups to influence the public agenda 1A.6 Introduction: why do we need baseline socio-economic scenarios? (continued) Interactions between society/economy and climate impacts and adaptation is that socio-economic developments can make the world more or less vulnerable to the impacts of climate change. 1A.7 Introduction: why do we need baseline socio-economic scenarios? (continued) • Flooding events may be worse if there is a larger population living on the flood plain as a result of planning decisions. • The effect of climate change on crop yields will depend on how many farmers have planted the crops, whether their farm income is dependent on that crop, in turn depending on agricultural subsidies, access to technology and so on. • Some technological developments, such as improvement of weather forecasting, may better enable precautions to be taken to diminish vulnerability to extreme weather events. 1A.8 Introduction: why do we need baseline socio-economic scenarios? (continued) • Flooding events may be worse if there is a larger population living on the flood plain as a result of planning decisions. • The effect of climate change on crop yields will depend on how many farmers have planted the crops, whether their farm income is dependent on that crop, in turn depending on agricultural subsidies, access to technology and so on. • Some technological developments, such as improvement of weather forecasting, may better enable precautions to be taken to diminish vulnerability to extreme weather events. 1A.9 Procedures for developing socioeconomic scenarios If you think the task of developing climate scenarios is difficult, the job of generating socio-economic scenarios is even more complex. Due to the fast changing, and poorly understood interactions of factors operating within socioeconomic systems, it is not possible to construct socio-economic scenarios on the same long-term time-scales as climate scenarios. 1A.10 Procedures for developing socioeconomic scenarios – general approach NOT every scenario exercise has to go through all the steps. Efforts could be saved by making use of existing elements of scenarios. 1A.11 Procedures for developing socio-economic scenarios: identify drivers • Key factors that define impacts, vulnerability and adaptive capacity; • Often not directly measurable (e.g., social wellbeing, quality of governance, etc.) • Wide stakeholder participation required 1A.12 Procedures for developing socio-economic scenarios: develop narrative storylines • Qualitative and holistic portraits of the general structure and values of society; • Conditions resulting from economic and social policies, human reproduction, occupations, and use of energy and technology; • Major national and regional development policy and plans to be consulted; • Stakeholders to be widely engaged 1A.13 Procedures for developing socio-economic scenarios: identify indicators • Most relevant measurements of the key factors that define impacts, vulnerability and adaptive capacity; • Indicators to be quantifiable; • Wide stakeholder participation required 1A.14 Procedures for developing socio-economic scenarios: develop narrative storylines • Qualitative and holistic portraits of the general structure and values of society; • Conditions resulting from economic and social policies, human reproduction, occupations, and use of energy and technology; • Major national and regional development policy and plans to be consulted; • Stakeholders to be widely engaged 1A.15 Procedures for developing socio-economic scenarios: project indicators/parametres • Model simulation (e.g., SRES); • Analogues; • Expert judgement 1A.16 Baselines for Bangladesh “Best Guess” Macro Projections for Bangladesh Population (millions) 1998 2020 2050 124 168 218 a GDP (billions) $28.6 $72.2 $180.0 GDP/capita $220 $430 $825 a. 1995 value. Source for 1998 data: WRI, 1998. Optimistic Macro Projections for Bangladesh 1998 2020 2050 124 165 165 GDP (billions) $28.6a $206.3 $1,485.0 GDP/capita $220 $1,250 $9,000 Population (millions) a. 1995 value. Source for 1998 data: WRI, 1998. 1A.17 Vulnerability Indicators Vulnerability Indicators for 2020 1998 Bangladesh Analogue Country 2020 Best Guess for Bangladesh 2020 Optimistic for Bangladesh Pakistan Kazakhstan GDP/Capita $240 $460 $1330 % of Economy in Agriculture 30% 25% 12% 58 64 68 % Pop. with Access to Health Care 45% 55% Not available Literacy 38% 39% 98% Life Expectancy in Years (1995-2000) Sources: WRI, 1998; literacy rates from CIA, 1998. Vulnerability Indicators for 2050 1998 Bangladesh Analogue Country 2050 Best Guess for Bangladesh 2050 Optimistic for Bangladesh Bolivia South Korea GDP/Capita $240 $800 $9,700 % of Economy in Agriculture 30% 17% 8% Life Expectancy (1995-2000) 58 62 73 % Pop. with Access to Health Care 45% 67% 100% Literacy 38% 83% 98% Sources: WRI, 1998; literacy rates from CIA, 1998. 1A.18 Procedures for developing socio-economic scenarios: criteria • Relevance - applicable to public and private sector decision-making • Consistency- based on coherent assumptions; • Credibility - not over-estimating the rate of change; • Transparency – explicit account of assumptions 1A.19 Example: the IPCC SRES Scenarios • IPCC Special Report on Emission Scenarios (SRES) • • • • makes projections about emissions of GHGs and aerosols up to 2100 for the purpose of modelling climate change; The world divided into four macro-regions (ALM, ASIA, REF, OECD90); Six modelling teams (6 modelling teams: AIM, ASF, IMAGE, MARIA, MESSAGE, MiniCAM) Open process; “Storyline-and-Simulation” approach 1A.20 Example: the IPCC SRES Scenarios – the process • • • • • Scoping and planning; Identify drivers; Formulate narrative storylines; Quantify storylines using models; “Open” review process 1A.21 Example: the IPCC SRES Scenarios – guiding principles • • • • No ‘business as usual’ scenario No probabilities ascribed No climate policy assumed No adaptation assumed 1A.22 Example: the IPCC SRES Scenarios – principal drivers • • • • Population growth GDP growth Energy and technological change Land-use change 1A.23 Example: the IPCC SRES Scenarios – the storylines Four quadrants along two axes • Governance • (autonomy vs interdependence); Aspiration/value (consumerism vs. community) 1A.24 Example: the IPCC SRES Scenarios – the storylines Four distinctive future worlds depicted by the four storylines… 1A.25 Example: the IPCC SRES Scenarios – the storylines A1: rapid economic growth, low population growth, rapid adoption of new technologies, convergence of regions, capacity building, increased social interaction, reduced region differences in per capita income; A2: heterogenous world, self-reliance and local identities preserved, high population growth, regionally-specific economic growth, fragmented economic and technological development 1A.26 Example: the IPCC SRES Scenarios – the storylines B1: convergent world with low population growth, transition to service and info economy, resource productivity improvements, clean technology towards global solutions B2: Divergent world with emphasis on local solutions to economic, social and environmental sustainability, moderate population growth, intermediate levels of economic growth, less rapid technological change 1A.27 Example: the IPCC SRES Scenarios – the scenarios 1A.28 Example: the IPCC SRES Scenarios – the scenarios 1A.29 Example: Developing socio-economic scenarios for V&A assessment in water resource sector (Indonesia) • Key drivers: level of water demand in the 21st Century • Storylines: SRES A2 and B2 • Indicators: o population change rate; o GDP growth rate o level of development of domestic water resources o Water withdrawal per capita 1A.30 Example: Developing socio-economic scenarios for V&A assessment in water resource sector (Indonesia) Step 1: Derive estimates of population and GDP changes from SRES (or other sources) in relation to base year (1990) 2010 2020 2030 2040 2050 Population change 36 54 72 90 106 Population change 32 47 59 69 77 GDP change 121 292 521 828 1207 GDP change 121 335 635 1150 1750 1A.31 Example: Developing socio-economic scenarios for V&A assessment in water resource sector (Indonesia) Step 2: Estimate level of development of domestic water resources 2010 2020 2030 2040 2050 Level of development of domestic water resources 2.90 5.57 6.07 7.13 17.4 Level of development of domestic water resources 2.90 5.39 5.77 6.54 23.20 L Withdrawal Re sources L1990 2.9 Lt L1990 ( L2050 L1990 ) (GDPr , 2050 GDPr ,1990 ) 1A.32 Example: Developing socio-economic scenarios for V&A assessment in water resource sector (Indonesia) Step 3: Estimate annual water withdrawal 2010 2020 2030 2040 2050 Annual water withdrawal 158.09 172.25 202.28 299.46 493.81 Annual water withdrawal 153.03 163.73 185.64 274.34 658.42 Withdrawal L * resources (Re sources1990 2838km ) 3 1A.33 Example: Developing socio-economic scenarios for V&A assessment in water resource sector (Indonesia) Step 4: Estimate per capita water withdrawal 2010 2020 2030 2040 2050 water withdrawal per capital 563.45 542.17 570.05 763.98 1161.97 water withdrawal per capital 561.97 539.90 565.95 786.87 1803.13 Withdrawal percapita Withdrawal 109 Population ( Population2000 206.3 10 6 ) 1A.34 Guidance documents 1. Guidelines on the use of scenario data for climate impact and adaptation assessment (http://ipcc-ddc.cru.uea.ac.uk/guidelines/ggm_no1_v1_12-1999.pdf) 2. Developing Socio-Economic Scenarios for Use in Vulnerability and Adaptation Assessments (http://www.undp.org/cc/pdf/publications%20and%20flyers/SES_draft.pdf) 3. Socio-economic scenarios for climate change impact assessment: a guide to their use in the UK (http://www.ukcip.org.uk/resources/publications/pub_dets.asp?ID=34) 4. Special Report on Emissions Scenarios: A Special Report of Working Group III of the Intergovernmental Panel on Climate Change (http://www.grida.no/climate/ipcc/emission/index.htm) 1A.35 Data Sources: The World Bank 1A.36 Data Sources: The World Bank 1A.37 Data Sources: UNDP (Human Development Report) 1A.38 Data Sources: IPCC Data Distribution Centre 1A.39 A Few Concluding Thoughts • Remember that creating baseline scenarios is NOT an end in itself; So, • • Do NOT get consumed by them; • Try to focus on the socioeconomic variables to which the vulnerability of interest is most sensitive. Perhaps a simple comparison exercise between constant socioeconomic conditions and a changing socioeconomic future can provide much insight; 1A.40