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Channeling of Climate Change Finance on Local Level Initiative / response addressing Vulnerability Manfred Staab STA Climate Change Adaptation IRAS, Vientiane, LaoPDR [email protected] 22 October 2012 Vulnerability Factors 2 Definitions / Interpretations 3 Vulnerability = f(exposure, sensitivity, adaptive capacity) In IPCC reports • exposure is defined as “the nature and degree to which a system is exposed to significant climatic variations”; • sensitivity is defined as “the degree to which a system is affected, either adversely or beneficially, by climaterelated stimuli1”; and • adaptive capacity is defined as “the ability of a system to adjust to climate change (including climate variability and extremes), to moderate the potential damage from it, to take advantage of its opportunities, or to cope with its consequences”. 4 Finance for Sector Resilience 5 Finance for Local Technology Transfer 6 Finance for Smallholders and SMEs 7 Finance for HH Food Security 8 Planning for “Adaptive Empowerment” 9 Knowledge for “Adaptive Empowerment”, e.g. http://www.webgeo.de/fao-webgeo-2-intro/ 10 Community-based Adaptation Practice • • • • • • • • • • A practice based upon an evolutionary process cross-cutting through several sectors in local society, economy, culture, science An entwined element in an local ecosystem approach An evolving development perspective for main-streaming in projects (similarly to Gender) Highly conservative in maintaining local diversity Highly experimental on selection of methodologies, tools, practical applications, inputs; local and international experience Careful use of appropriate technology Extensive and long-term knowledge management Systematic and long-term analyses of lessons learnt Meaningful and long-term socioeconomic engagement ... all bound upon elastic limits in actual climate change 11 Weaknesses of Local CC Finance • • • • • • • • • • Climate finance is not seen as a relevant macro and micro-economic issue Classical GDP and GDI indicators partially misleading Most of climate finance comes as project funding only Global funding sources and their access unclear Climate change not included in government budget frameworks and charts of accounts National budgets and flow of funds unclear or not specific Unrealistic expectations on stimulation by markets versus unused potential of the private sector Re-labeling of funds made available for other purposes into climate change finance Counting and accounting of secondary and tertiary funding sources/effects as genuine climate change contribution/impact NGOs losing voices and stamina in CC matters? 12 Having an Eye on… • • • • • • Finance for local technologies, transfer of technology, patents and intellectual property rights Channeling of funds to local initiatives, both government and non-government Targeted micro finance Finance of diversity and for diversification as a key principle of resilience Equity and equality issues in financing of action and investment Local finance in strategic priorities and assets from a viewpoint of human development 13 THANK YOU. Initiative/response addressing vulnerability Manfred Staab Senior Technical Advisor [email protected] 29 October 2012