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State of Finance for Adaptation and UNDP’s Strategy for Supporting countries in the Arab States Elie Kodsi Drylands Development Centre UNDP Environment and Energy Group Damascus, 15-16 September 2010 Costs of Mitigation and Adaptation in Developing Countries US $100 billion per year by 2020 Copenhagen Accord Costs of Adaptation (World Bank and UNFCCC, $billions) Source: EACC, WB 2010 11 Diversity of schemes Some operate at the international level Others only available to domestic investors. Four main categories: (i) public funds providing either grant or loan assistance; (ii) Private funds providing either grant or loan assistance; (iii) market-based instruments; (iv) innovative financing instruments. Source: SEFI, New Energy Finance in Glemarec et al (2010) 22 Global Climate Finance Negotiations UNFCCC negotiations continue to discuss reform of financial mechanism: • A possible new fund: Copenhagen Green Climate Fund (CGCF) to manage a “significant portion” of future climate finance in addition to GEF and AF • Creation of a new oversight system (possibly a Finance Board) under the Convention that may be involved in fund allocation and approval (for CGCF, GEF and AF projects) •Use of Low-emission, climate-resilient development strategies as the foundation for accessing and allocating finance •Increased provisions for direct access under all funds Status of Discussions as of mid-2010: • Negotiations moving slowly--full deal in Cancun ruled out • Still much to be clarified over the CGCF and respective roles of GEF & AF • However, “fast start finance” ($30bn per year 2010-12) is flowing (65% along bilateral lines; some as part of GEF V and AF pledges) 3 COP Registry/Mitigation Financial Mechanism CC Adaptation BILATERAL BOARD ? Forestry & REDD Technology Matching Coordination Oversight MRV Capacity Buliding Adaptation Fund Copenhagen Green Climate Fund ? GEF Countries Receiving Climate Finance 4 GEF and the Kyoto Adaptation Fund GEF Assistance to Address Adaptation Secretariat services for the AFB provided by GEF on an interim basis. GEF Trust Fund GEF Trust Fund Strategic Priority on Adaptation (SPA) adaptation action WITH GLOBAL BENEFITS UNFCCC climate change funds The Adaptation Fund Least Developed Country Fund (LDCF) (implementation of NAPAs) Special Climate Change Fund (SCCF) Top priority to Adaptation Adaptation Fund (AF) Adaptation in developing country parties to KP NO GLOBAL BENEFITS NO GLOBAL BENEFITS NO GLOBAL BENEFITS 5 Modalities for Accessing The Kyoto Adaptation Fund Source: Accessing Resources from the Adaptation Fund, 2010 66 Status of Funding GEF/LDCF GEF/SCCF Pledges: $221m Pledges: $148m Kyoto/AF CER Sales: $156m Funding Approvals: $135m Funding Approvals: $109m Funding Approvals: $0 (Only for LDC) (For all non-annex 1 Parties) (For all Parties to Kyoto – non annex 1 to UNFCCC) Source of Funding Replenished Voluntarily Donor Contributions Source of Funding CER Sales Source of Funding Replenished Voluntarily Donor Contributions 2010-2014 Expectation $500m 2010-2014 Expectation $500. Governance GEF LDCF/SCCF Council Governance GEF LDCF/SCCF Council 2010-2014 Expectation $317-434m Governance AF Board (Parties) 77 Current UNDP Support to Countries in the Arab States 88 UNDP’s Adaptation Portfolio • Where do we stand in the region? $13,3 million / $15 million in co-financing • Addressing priority climate hazards and adaptation needs 9 Sources of LDCF, SCCF and AF Funds Mobilized To-Date – Arab Regions • • • • • Egypt - $4m (SCCF) Sudan - $3.3m (LDCF) Morocco - $3m (GoJ) Tunisia - $3m (GoJ) Morocco - $300K (SPA) (part of a global community based adaptation project) • Jordan – $750K (SCCF) (part of a UNDP-GEF global cc health adaptation project executed by WHO) Others: Number of Enabling Projects (Nat Coms, CB2s etc) 1010 Funding to be Mobilized (2010 onwards) SCCF: – Jordan – Treated waste water use $ 3.6 million; – Syria – Innovative finance for adaptation in the Badia steppe - $4.5 million; LDCF – Requests from Sudan and Yemen AF – Egypt – mariculture as coastal defense and livelihood diversification $5.7 million – Requests from Lebanon, Sudan, Yemen and Djibouti 11 Key Challenges in Attracting Financing Assuming that international public finance commensurate with the Copenhagen Accord will be mobilized there are 3 key questions: Finding ways to mobilize a variety of resources at scale How to attract, blend with, and catalyse, larger sources of public and private finance How to assist countries to move towards low carbon climate resilient growth paths How to deliver finance in a nationally defined and directed way where it is most needed Find ways to deliver finance at speed to where it is needed most 1212 Emerging UNDP Support to Countries in the Arab States to Pursue Low Emission Climate Resilient Development 1313 UNDP Approach For Assisting Countries Attract CC Finance Raising finance and delivering finance go hand-in-hand (i.e cannot be dealt with separately) A country-driven, multi-stakeholder framework to scale up cc finance to strengthen and advance national development priorities is required. 1414 A New Development Paradigm: A country-driven, Multi-Stakeholder Climate Finance Framework Public and Private Sources of Funds (National and International Sources) Low Emissions, Climate Resilient Development Strategies Financial and Technical Support CC Platforms “NAMAs/NAPS” Implementation and Reporting Mechanisms This approach allows governments to put development at the heart of climate planning 15 5 key steps to prepare a LCLRD Strategy Develop Partnership & Coordination Structure Prepare Climate Change Scenarios • Climate scenarios • Vulnerability scenarios • GHG emissions scenarios Identify Mitigation & Adaptation Options • Identify priority M&A options through a multistakeholder consultative process Assess Priority Climate Financing Needs • Assess existing financing options • Undertake cost-benefit analysis of priority options • Identify Financial flow requirements • Identify policy & financing options Prepare comprehensive Low Carbon & Climate Change Resilient Roadmap 16 [1] Refer to annex 4 Enhancing Climate Resilient Development Drylands Development Centre Arab States Programme 17 DDC-supported Intervention in Syria • The North-eastern Region in Syria lagging behind in terms of the MDGs and faces development challenges: lack of basic services and infrastructure, little investment and limited job opportunities, migration • It is home to 58.1% of the poor population • it has 42% of Syria’s cultivated area, is heavily dependent on agriculture and, therefore, is very sensitive to desertification and drought. • Moreover, the region has been more impoverished in the last few years as a result of severe drought. Two UN joint assessments conducted in 2008 and 2009 concluded that the drought is severe, the worst of the last 40 years and affected about one million people. 1818 DDC-supported Intervention in Syria • The North-eastern Region in Syria has a major existing climate adaptation challenge, which climate change is likely to deepen. (Impact from climate is not a future concern, it is an immediate concern) • The Region’s adaptation challenge is inextricably linked with its development challenge: if people are well educated, have access to good basic services and have robust/diversified livelihoods they will be much less vulnerable to climate change. • Adaptation is essentially about development in a hostile climate or climate-resilient development 1919 DDC-supported Intervention in Syria • National response: Integrated Community Development for • • • scaling-up the MDGs in the North-eastern Region Joint project Ministry of planning and UN agencies (UNDP, ILO, WFP, FAO, UNICEF, UNFPA) Key MDGs targeted are related to poverty, education, health and environment. DDC support seeks to build community resilience to drought through: 1) developing vocational and business skills among adults and youth for livelihood enhancement/diversification and 2) building the capacity of farmers to adopt appropriate land and water management practices 2020 Syria - Lesson learned • A window of opportunity today: a chance to put in place nationally-owned programs that boost sustainable development and in doing so greatly improve the levels of climate adaptation • The work piloted in Syria can: Serve as a baseline for mobilizing additional funding from international climate finance (this is on-going) 2. Feed into the development of Low Emissions, Climate Resilient Development Strategy (whether at the national or sub-national level) 1. 2121 2222 For further information on adaptation funding and programming in the Arab States Region: Keti Chachibaia, Regional Technical Advisor- Adaptation- Arab States [email protected] Elie Kodsi, Regional Manager for Arab States, UNDP Drylands Development Centre, [email protected] 2323