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European Development Cooperation and
Climate Change
Leo Peskett, ODI
[email protected]
2 June, 2008
2008 – 2020: A critical period for climate change and climate
policy processes?
…between 75 million
and 250 million people in
Africa are projected to be
exposed to increased water
stress due to climate change
…In some countries, yields
from rain-fed agriculture
could be reduced by up to
50% by 2020 (IPCC2007)
….Last chance to stabilise temperatures below
the critical 2 degrees Celsius threshold?
….2009 – Copenhagen COP15
Policy ….European 20/20/20 climate policies
…2012 - Kyoto 2?
….New and deeper climate policies? Biofuels? Carbon markets? Technology transfer?
….increasing impacts of climate change policies on developing countries?
Project Objectives
Overall: Investigate synergies and trade-offs between climate change and
development policy processes
 ‘Taking stock’ of existing linkages between European CC and
development policies
 ‘Horizon scanning’ to build a better picture of emerging challenges
 ‘Action research’ to track evolution of certain policy processes
 Understand more about the drivers of climate change and development
policy making in Europe
 Inform future policy making and priorities for action in the EU
Project themes
Initial scoping of thematic areas:
 Europe’s role in emerging climate finance for developing
 European climate change partnerships with China and India
 Implications of European domestic CC policy for development
Why these three themes?
 Cover issues relating to climate change mitigation and adaptation
 High profile issues in the climate change negotiations over the next three years and of huge
imprtance over next 12 years
 Strong links to development agendas, but cover both links between domestic policy processes
and their developmental implications; and the development and external relations agendas
 Strong links to other research packages
Europe’s role in emerging climate finance for
developing countries
Current scale (per
Estimated future scale
(per annum)
Adaptation Fund
$36 million
$100-500 million by 2012
Carbon markets with
direct benefits for
developing countries
$3 billion
$100 billion (2020?)
Forest carbon markets
<$0.1 billion
$2-13.5 billion (post 2012)
Recently launched
environmental funding
Japan: $10 billion
Norway: $2.3 billion
UK: $1.5 billion
WB: $12 billion (inc. from
bilaterals above)
 Estimates of figures of $20-80 billion
per year estimated as needs for
adaptation in 2030
 Large new funds emerging to
support developing countries to
adapt to climate change
 Rival ‘traditional’ aid flows
1. Will climate finance and ODA be conflicting or synergistic?
2. Where does, and should, Europe sit in relation to other (multilateral and member state)
funding initiatives that support developing countries on climate change?
3. Are multiple initiatives a problem or part of the solution?
4. What constitutes effective finance for adaptation to climate change?
5. Coherence on adaptation support between member states
Climate Change partnerships with China and India
•Two existing partnerships established
under the UK presidency in 2005
•Aim to assist in building capacity on
climate change and building political
will and collaboration in the bilateral
•China, in particular is already a large
GHG emitter
1. What is driving the CC partnerships with China and India and how is the agenda
2. How do they relate to other agendas, with these countries; trade etc?
3. How do partners feel about cooperation with EU in this area? Is there any
learning from their cooperation with other bilaterals?
4. How can these partnerships evolve in the next few years?
Implications of domestic policy choices for development
cooperation: forest carbon and biofuels
 Currently a big debate about integrating
emissions reduction credits from reduced
deforestation and degradation (REDD) in future
carbon markets
 Huge potential financial flows to developing
countries ($2-30 billion per year)
 Poverty reduction benefits?
 Ongoing debate about inclusion of forests within
the EU Emissions Trading Scheme (ETS)
Global GHG emissions by sector WRI 2008
•How have development concerns featured within the evolution of these policies?
•Where are the risks and benefits for developing countries?
•How is policy coherence dealt with at country levels?
Thank you!
And feedback on themes to look at would
be welcome
[email protected]