OECD work on climate change adaptation

1. OECD WORK ON CLIMATE CHANGE ADAPTATION
Climate Change Expert Group Global Forum (CCXG)
17 September 2014
Jan Corfee-Morlot Senior Policy Analyst/Team Leader, Development Co-operation Directorate Michael Mullan Team Leader, Environment Directorate

2. 2
Presentation structure
1.
DAC-EPOC Task Team on Climate Change and Development Co-operation
2.
Development Finance for Adaptation
3.
Evolution of climate change adaptation at the international level & implications for action in developing countries
4.
Concrete example from South East Asia
5. Results from an OECD project on integrating climate resilience into development planning Case 1: Ethiopia Case 2: Colombia 6. Capacity development 7. Monitoring and evaluation

3. 3
1. DAC-EPOC Task Team on Climate Change and Development Co-operation
Since 2006, supports adaptation policy dialogue :
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Sharing experience from policy practice on adaptation;
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Promoting better adaptation in partner countries (e.g., alignment and harmonisation, data collection);
•
Identifying, agreeing and communicating ways to improve development co-operation for adaptation;
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Producing guidance (e.g., Integrating Climate Change Adaptation into Development Co-operation, OECD 2009). Recent work:
•
Harmonising Climate Risk Management: Adaptation Screening & Assessment Tools for Development
•
Forthcoming working papers on Methodological and Country Challenges in Monitoring and Evaluation for Adaptation Future work:
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Mechanisms to reduce, transfer and share climate risks;
•
Climate-resilient urban development in developing countries.
Integrating Climate Change Adaptation into Development Co-operation (2009)

4. 2. Official Development Assistance to Climate Change Adaptation
Source: OECD DAC Statistics, March 2014

Total bilateral adaptation-related aid reached USD 9 bn p.a. over 2010-12, or 7% of bilateral commitments.

72% targets adaptation as a significant objective, reflecting mainstreaming within on-going development activities

Sectors: water supply and sanitation; policy formulation, research, education and capacity building, as well as forestry, fishing & rural development.

Small number of recipients in Asia (35%) & Africa (28%). Recipients primarily LMICs (31%) and LDCs/LICs (25%).

Mostly delivered through grants (69%).
Total adaptation-related aid 2010-12, bilateral commitments, USD billion, constant 2011 prices, annual and 3-year annual average

5. 0
5
10
Private
Multilateral ODA & OOF
Bilateral OOF
Bilateral ODA
USD Billion, per year
OECD DAC Statistics
Other Source
Unknown
We have only a partial picture of the total landscape of external development finance for adaptation…
Illustration of magnitudes & data gaps in adaptation-related finance
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Initiatives to improve data quality & coverage:

OECD DAC Task Team on Rio Markers & post-2015 development finance

International Development Finance Club

MDB Joint Approach

OECD co-ordinated Research Collaborate
Source: OECD DAC Statistics, March 2014 MDB Joint Approach, December 2013

6. 3. International evolution of climate change adaptation & implications for action in developing countries
•
Slow integration of climate change adaptation into development planning and policy.
•
Largely driven by international instruments, bodies and support mechanisms:
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UNFCCC - NAPAs (2001) for LDCs (by 2013 all LDCs had a NAPA);
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WB-administered PPCR (2008 in 9 pilot countries and the Caribbean).
•
Since 2010, UNFCCC National Adaptation Plans (NAPs) in all developing countries:
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Integrate adaptation into development planning and budgeting processes
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Link to on-going Identify gaps - information, capacity, institutional
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initiatives, tools and approaches to mainstream adaptation, etc
•
Financial support through:
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GEF (Trust Fund, LDCF, SCCF) and soon GCF (50:50 adaptation/mitigation allocation of finance over time)
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CIFs (Strategic Climate Fund provides resources to the PPCR)
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Bilateral support

7. •
Flooding is most common climate risk to Southeast Asian cities, and already costly:
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Average losses p.a. due to coastal flooding estimated at USD 300 million in 2005
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By 2050, expect USD 6 bn, even with adaptation measures
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National government support is needed to increase local resilience to climate change
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National political commitments and linking urban and adaptation planning
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Channelling climate finance & aid to local governments
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Supporting risk assessments that combine national expertise and local knowledge 7
4. Integrating adaptation into planning: the case of Southeast Asia

8. 8
Presentation structure
1.
DAC-EPOC Task Team on Climate Change and Development Co-operation
2.
Development Finance for Adaptation
3.
Evolution of climate change adaptation at the international level & implications for action in developing countries
4.
Concrete example from South East Asia
5. Results from an OECD project on integrating climate resilience into development planning
Case 1: Ethiopia
Case 2: Colombia
6. Capacity development
7. Monitoring and evaluation

9. 1.
Common vision: political will and development of institutional structures;
2.
Evolutionary approach: focus on current problems, with initial thinking about longer- term vulnerabilities;
3.
Evidence to guide “transformational” changes is very limited;
4.
Finance and capacity constraints remain major barriers.
9
5. Emerging findings in linking climate resilience and development

10. 10
6. Policy recommendations for strengthening capacity
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Use multi-year development planning processes as a vehicle to systematically incorporate green objectives;
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Develop key actors’ technical and functional skills;
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Encourage the participation of non- government actors;
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Rigorously prioritise support for capacity development Supported by:
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Co-ordination of external support
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Ensuring local ownership
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Finance

11. •
To serve as a mechanism for continuous learning
–What progress has been made to implement strategic adaptation policies or plans?
–Is the country over time becoming less vulnerable or more resilient to the impacts of climate change?
•Monitoring and evaluation as an accountability measure
–Does resource allocation for adaptation reflect prioritised adaptation needs?
–Are policies and plans implemented in a cost-effective manner?
7. The role of monitoring and evaluation at the national level
11

12. Climate risk and vulnerability assessments
Indicators for monitoring prioritised climate change risks and vulnerabilities
Learning from adaptation approaches
National audits and climate expenditure reviews
Four tools for monitoring and evaluation
12
1
2
3
4

13. No
Title
Contribution
1
Climate risk and vulnerability assessments
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Establish a “baseline”
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Provide periodic “snapshots” of risk/vulnerability
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Monitor how adaptation priorities change
2
Indicators for prioritised adaptation needs
•
Monitor adaptation priorities
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Survey existing data sources and remaining gaps
•
Build stakeholder engagement and buy-in
3
Learning from adaptation approaches
•
Identify “effective” adaptation approaches
•
Understand the necessary pre-conditions
4
National audits and climate expenditure reviews
•
Assess alignment of resources with identified goals
•
Examine if resource allocation is cost-effective and aligned with good-practice principles
13
… in more detail

14. THANK YOU!
jan.CORFEE-MORLOT@oecd.org
michael.MULLAN@oecd.org
OECD DCD Climate Change and Development
www.oecd.org/dac/environment-development/climate-change-development.htm
OECD DAC-CRS - Methods and data on climate change financing
www.oecd.org/dac/stats/rioconventions.htm
OECD ENV – Adaptation to Climate Change
www.oecd.org/env/cc/adaptation.htm

15. Adaptation-related aid is concentrated in a few sectors and activity types…
Adaptation-related aid by sector 2010-12, bilateral commitments, USD billion, constant 2011 prices

The top 5 sectors receive 83% of adaptation-related aid

The focus on General Environmental Protection reflects the importance that countries and donors are placing on adaptation-related policy formulation, research and education, and capacity-building.
Source: OECD DAC Statistics, May 2014

16. Hard Infrastructure 71%
Soft Infrastructure8%
Not Infrastructure21%

Of this, over 70% is assessed as hard infrastructure, predominantly water supply and sanitation
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Hard infrastructure projects dominate owing to the large volume nature of the activities (they account for 20%- 30% of activities).

The top donors of urban hard infrastructure aid are: Japan, Germany, France, and Korea.
Adaptation-related bilateral aid to urban areas: about 20% of total ODA to adaptation
Adaptation-related Aid in Urban areas 2010-11, bilateral commitments, USD billion
Source: OECD DAC CRS and DCD statistical analysis., October 2013.

17. LDCs and other low-income countries receive 25% of total adaptation-related aid….
Income groups receiving adaptation-related aid
2010-12, bilateral commitments
Geographic regions receiving adaptation-related aid
2010-12, bilateral commitments
LDCs
22%
Other LICs 3%
Lower MICs 31%
Upper MICs 13%
Unspecified 32%
Source: OECD DAC Statistics, May 2014
Asia 35%
Africa 28%
Unspecified 19%
America 11%
Europe 5%
Oceania 2%
•
Grants comprise 69% of all adaptation-related aid commitments

18. Who are the main providers?
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Over 50% of bilateral adaptation-related ODA in 2010-12 was committed by three DAC members: Japan, Germany and EU Institutions.
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France and the UK commit the most amounts of aid targeting adaptation as a principal objective after Japan.
•
Grants comprise 69% of all adaptation-related aid commitments
OECD DAC Statistics, March 2014 The US is working to review its data collection methodology and will supply data in the coming months.
Adaptation-related aid by DAC member*
Average 2010-12, bilateral commitments, USD billion, constant 2011 prices

19. •
Total bilateral climate change-related aid by members of the OECD DAC reached USD 21.5 billion on average per year in 2010-12, representing 16% of total ODA.
•
For 59% of climate-related activities (USD 12.8 billion) mitigation and/or adaptation was the principal objective; for the remainder (USD 8.7 billion) it was a significant objective.
•
The Rio markers are descriptive rather than quantitative. They allow for an approximate quantification of financial flows targeting the objectives of the Rio conventions.
Trends in climate-related aid, 3-year annual averages 2001-12, bilateral commitments, USD billion, constant 2011 prices
OECD DAC Statistics, May 2014