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ASSESSING THE INVESTMENTS REQUIRED TO
ADDRESS CLIMATE CHANGE IN KEY SECTORS:
Experience of Namibia
Petrus Muteyauli, Namibia
FINANCIAL AND ECONOMIC NEEDS STUDIES FOR CLIMATE CHANGE
UNFCCC & UNDP Side Event
11 June 2011, Bonn, Germany
Background
UNDP global project: Capacity Building for Policy Makers
to Address Climate Change (2008-11)
1. Increased capacity to co-ordinate Ministerial & stakeholder
views on climate change and UNFCCC negotiations;
2. Engage in long-term climate change planning and priority
setting via investment and financial flows (I&FF)
assessments of key sectors
19 countries participating: Algeria, Bangladesh, Colombia, Costa
Rica, Dominican Republic, Ecuador, Gambia, Honduras, Liberia,
Namibia, Nepal, Nicaragua, Niger, Paraguay, Peru, St Lucia, Togo,
Turkmenistan, & Uruguay
WHY undertake I&FF assessment?
• To quantify the investments required to address climate
change in Namibia’s energy sector (mitigation) and
agriculture sector (adaptation) in a systematic manner
• To encourage long-term sectoral planning that
incorporates investment decisions based on a changing
climate
• Ultimate goal is to strengthen Namibia’s position to justify
its demand for both multilateral and bilateral funding for
mitigation and adaptation to climate change
METHODOLOGY
HOW is I&FF assessment undertaken?
1. For each sector, evaluate investments and financial flows for
two policy scenarios:
– Baseline Scenario
– Adaptation or Mitigation Scenario
2. Cost the additional flows needed to implement new
adaptation or mitigation measures (that is, subtract the
difference between the two scenarios)
3.
Break the costs down across three entities: government,
corporations (including NGOs), and households
Institutional arrangements
Key features:
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Strong national
ownership
Experts
engaged from
public and
private sector
Active working
groups, meeting
on regular basis
Coordinating
Agency and
Lead Experts
Individual
Experts
Support and
Further
Expertise
• Ministry of Environment and Tourism (Coordinating Agency)
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Ministry of Agriculture, Water and Forestry
Ministry of Trade and Industry
Ministry of Mines & Energy
Ministry of Finance
State Enterprises
NGOs
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United Nations Development Programme
Integrated Environmental Consultants Namibia
VO Consulting
Regional centre of excellence
Key sectors selected in Namibia
Energy
• Electricity generation (wind, solar, energy efficiency)
• Transport (LPG)
Agriculture
• Livestock (cattle, small stock, game)
• Crops (maize, wheat, mahangu, sorghum)
Example: Energy sector (cont.)
• Baseline scenario (business as usual) -- $2.5 billion
- Energy mix (BAU): Coal-fired power and localised diesel
generators
• Mitigation scenario -- $3.6 billion
- Energy mix incorporates significant investments in solar and
wind power as well as energy efficiency programme
• Incremental cost to address climate change: $1.1 billion
• Although costlier, long-term environmental benefits
• Amount of emissions reduced is 11 million tons of CO2
WHAT does I&FF assessment seek to
answer?
From a development perspective, what does my country need to
do to address climate change in selected key sectors, and what
financial landscape will be required to achieve those needs?
The I&FF assessment considers:
 What are the adaptation/ mitigation options for selected key
sectors in the next 25 years?
 Who is investing in the sector ? Who are the major players &
funding sources?
 What shifts/increases in I&FF will be needed in the sector?
 What will be the overall needs for additional I&FF to address
climate change?
Next steps
• New studies planned for fisheries and water sectors
(under the Africa Adaptation Programme)
• Measures identified in energy sub-sectors would qualify
as CDM projects under the Kyoto Protocol modalities
• Engage with private sector and Ministries on results
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