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Adaptation Financing post 2012
Some thoughts
Saleemul Huq (Senior Fellow, Climate Change Group, International
Institute for Environment and Development)
european capacity building initiative
ecbi
european capacity building initiative
initiative européenne de renforcement des capacités
ecbi
for sustained capacity building in support of international climate change negotiations
pour un renforcement durable des capacités en appui aux négociations internationales
sur les changements climatiques
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Nature of adaptation funding
Existing funding under the UNFCCC
Existing funding outside the UNFCCC
Key issues for funding for COP15
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Amounts needed
Potential Sources
Cannels of funding
Who and what to fund
european capacity building initiative
ecbi
Contents
european capacity building initiative
ecbi
Nature of adaptation funding
• Different from mitigation
• Already has history in UNFCCC
• Mainly public sector (very little role for private
sector)
• Focus on most vulnerable countries, ecosystems
and communities
european capacity building initiative
ecbi
Existing funding under UNFCCC
• LDCF: For NAPAs in LDCs
• SCCF: For all developing countries, adaptation
projects only
• AF: From adaptation levy on CDM
• GEF/SPA: 50 Million pilot fund now ended
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World Bank : PPCR
Bilaterals: DFID. DANIDA, SIDA, etc
EC: GCCA
Non-Govt: Foundations
european capacity building initiative
ecbi
Existing funding outside UNFCCC
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Amounts needed
Potential sources
Channels of funding
Who and what to fund
european capacity building initiative
ecbi
Key issues for funding
• Various estimates:
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World Bank: USD 10-40 B
UNFCCC: USD 28-67B
OXFAM: USD 80B
Martin Parry et al: Much higher
european capacity building initiative
ecbi
Amounts needed
• Various proposals
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Norway: Levy on AAUs
G77:Assessed contributions from Annex 1
LDC: IAPAL
Mexico: Contribution from all countries
Switzerland: Carbon tax
european capacity building initiative
ecbi
Potential sources
• Various proposal/options
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Under UNFCCC with new body
Using existing bodies under UNFCCC
Using channels outside UNFCCC (e.g. WB)
Mixture of channels
european capacity building initiative
ecbi
Channels for funding
• What? Various options/proposals:
– Projects?
– Programmes?
– Countries?
european capacity building initiative
ecbi
What to fund
• Various option:
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Priority to LDCs
Priority to LDCS and SIDS
Priority to LDC, SIDS and Africa
Developing new list of vulnerable countries
All developing countries
european capacity building initiative
ecbi
Who to fund?
• Various proposals:
– Include Adaptation funding as part of ODA
– Adaptation funding to be “new and additional” to
ODA (above 0.7%)
– Allow some (e.g. agreed percentage) of ODA to
count towards adaptation funding obligations
european capacity building initiative
ecbi
Relationship of Adaptation funding to
ODA