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Climate change adaptation and developed co-operation Proposed programme of work
- 1. Climate change adaptation and developed co-operation Proposed programme of work Nicolina Lamhauge & Özlem Taskin Development Co-operation Directorate, OECD ENVIRONET Plenary • 15 May 2018
- 2. Climate change adaptation and country ownership The Paris Agreement has put adaptation firmly on the global agenda • Global goal on adaptation (Article 7) • Balanced allocation of scaled-up financial resources (Article 9) • Nationally Determined Contributions outlining countries’ climate change ambitions (Article 3) Development co-operation has a critical role in supporting partner countries in implementing their adaptation priorities • Importance of country ownership recognised in the Paris Agreement and other decisions by Parties to the UNFCCC • Alignment of development co-operation with partner countries’ own identified needs
- 3. Proposed programme of work • Examine the scale and nature of adaptation- related development finance and developing countries’ expressed adaptation needs • Explore the role of development co-operation in engaging the private sector for climate change adaptation • Review and revise OECD policy guidance for the integration of climate change adaptation into development co- operation
- 4. Priority sectors for adaptation action outlined in developing countries’ NDCs
- 5. Top sectors receiving adaptation-related development finance 2015-16 average
- 6. Adaptation-related development finance by income group and instrument 2015-16 average
- 7. Questions for the discussion • In light of global commitments on adaptation, and increased emphasis by different stakeholders on this issue, how can work by ENVIRONET most usefully contribute? • What are the key policy questions relating to adaptation and development co-operation? • What products would be particularly helpful to ENVIRONET members? • What related work is undertaken on adaptation and development co-operation where synergies could be promoted?
- 8. Thank you!
Hinweis der Redaktion
- Article 7: (1) Parties hereby establish the global goal on adaptation of enhancing adaptive capacity, strengthening resilience and reducing vulnerability to climate change, with a view to contributing to sustainable development and ensuring an adequate adaptation response in the context of the temperature goal referred to in Article 2. Article 9: (4) The provision of scaled-up financial resources should aim to achieve a balance between adaptation and mitigation, taking into account country-driven strategies, and the priorities and needs of developing country Parties, especially those that are particularly vulnerable to the adverse effects of climate change and have significant capacity constraints, such as the least developed countries and small island developing States, considering the need for public and grant-based resources for adaptation. Article 3: As nationally determined contributions to the global response to climate change, all Parties are to undertake and communicate ambitious efforts as defined in Articles 4, 7, 9, 10, 11 and 13 with the view to achieving the purpose of this. Agreement as set out in Article 2. The efforts of all Parties will represent a progression over time, while recognizing the need to support developing country Parties for the effective implementation of this Agreement. Role of development co-operation: Paris Agreement 7(6) Parties recognize the importance of support for and international cooperation on adaptation efforts and the importance of taking into account the needs of developing country Parties, especially those that are particularly vulnerable to the adverse effects of climate change. Country ownership: (Cancun Adaptation Framework) Affirms that enhanced action on adaptation should be undertaken in accordance with the Convention, should follow a country-driven, gender-sensitive, participatory and fully transparent approach
- Proposal 1: In addition to a review of the CRS data, this analysis would be informed by targeted interviews with interested members on their approaches in identifying and providing adaptation support. If possible, this information could usefully be complemented by input from a few partner countries on their experience in engaging with donors on adaptation. This will shed light on the alignment between identified adaptation needs and the support provided. Proposal 2: Ultimately, the potential of development co-operation in engaging the private sector for adaptation hinges on the availability of business and investment cases in adaptation-related projects. Based on its established roles and uses, development co-operation can help address viability gaps and propel the creation of financial products and markets to address adaptation needs. Important steps include: i) establishing the business case for adaptation in given priority areas, ii) creating enabling environments for private sector engagement for adaptation, and iii) employing development co-operation in a targeted manner to lever commercial investment in a way that ensures financial viability. Proposal 3: The adoption of the Paris Agreement provides a timely opportunity to review the initial guidance provided and to draw on members’ tested experience in working with partner countries on adaptation. This would be complemented by developing countries’ own perspectives, e.g. through case study analysis. In collaboration with members and other stakeholders, revised guidance on approaches to integrating adaptation into development co-operation would be developed. Depending on members’ interest, this could include a focus on approaches used to support particularly vulnerable groups (e.g. women, elderly or disabled people) or in engaging the private sector.
- For the time being, we have not tried to compare the information reflected in the NDC explorer and that emerging from the Rio marker analysis. However, as a next step, this is something we could explore in collaboration with NDC Explorer E.g. while the NDC Explorer singles out the priority needs of the forestry sector, this is for now captured under the broader sector category of Agriculture, Forestry and Fishing. At the same time, it should be noted that over 90% of finance in this broader sector category goes to agriculture. Similarly, Health has been identified by all sub-regions as a priority sector in their NDCs – this is not reflected in the Rio marked data. This may be because donor support to the health sector addresses some of the identified risks emerging due to climate change, without these being marked as such
- The majority of bilateral adaptation finance is provided in the form of grants (69%), while the majority of multilateral support is provided in the form of loans (83%). This is in part at least due to the fact that bilateral and multilateral support targets different income groups
- Potential areas for the analysis of the nature and scale of adaptation-related development finance include, but are not limited to: A regional analysis of adaptation-related development finance to e.g. Africa or Asia, examining differences across income groups, with possible case study analysis of 1-3 countries. This would build on the analysis in section 3 outlining developing countries’ identified adaptation needs, and in section 4 on the scale and nature of adaptation-related support provided; A detailed analysis of adaptation-related development finance to one or two sectors (e.g. agriculture, water, broader infrastructure) to better understand the scale and nature of the support provided, and how this varies across country contexts. This would be informed by developing countries’ own expressed adaptation needs in the respective sectors; A review of the scale and nature of support provided to small and medium-sized enterprises in support of action on adaptation, focusing in particular on the nature of this engagement; A review on the scale and nature of gender considerations in adaptation measures. The CRS policy markers for climate change adaptation and for gender provide valuable information on the intersections of activities that focus on the two areas; Case study analysis on the approaches used by 1-3 providers of development co-operation in extending support for climate change adaptation, complemented by a review of the experience of 1-3 developing countries in working with development co-operation providers on climate change adaptation.