State of Finance for Adaptation and UNDP

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State of Finance for Adaptation andUNDPs
Strategy for Supporting countries in the Arab
States
Elie Kodsi Drylands Development Centre UNDP
Environment and Energy Group Damascus, 15-16
September 2010
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Costs of Mitigation and Adaptation in Developing
Countries

• US 100 billion

Copenhagen Accord
per year by 2020
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• 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)
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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)

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COP
Financial Mechanism
Registry/Mitigation
BILATERAL
CC Adaptation
BOARD ?
Forestry REDD
Technology
Matching
Coordination
Oversight
MRV
Capacity Buliding
Adaptation Fund
Copenhagen Green Climate Fund ?
GEF
Countries Receiving Climate Finance
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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
UNFCCC climate change funds
The Adaptation Fund
Adaptation Fund (AF) Adaptation in developing
country parties to KP NO GLOBAL BENEFITS
Least Developed Country Fund (LDCF) (implementatio
n of NAPAs) NO GLOBAL BENEFITS
Special Climate Change Fund (SCCF) Top priority
to Adaptation NO GLOBAL BENEFITS
GEF Trust Fund Strategic Priority on Adaptation
(SPA) adaptation action WITH GLOBAL BENEFITS
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Modalities for Accessing The Kyoto Adaptation Fund
Source Accessing Resources from the Adaptation
Fund, 2010
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Status of Funding
GEF/LDCF Pledges 221m Funding Approvals
135m (Only for LDC) Source of Funding
Replenished Voluntarily Donor Contributions 2010-
2014 Expectation 500m Governance GEF LDCF/SCCF
Council
Kyoto/AF CER Sales 156m Funding Approvals
0 (For all Parties to Kyoto non annex 1 to
UNFCCC) Source of Funding CER
Sales 2010-2014 Expectation 317-434m Governan
ce AF Board (Parties)
GEF/SCCF Pledges 148m Funding Approvals
109m (For all non-annex 1 Parties) Source of
Funding Replenished Voluntarily Donor
Contributions 2010-2014 Expectation 500. Govern
ance GEF LDCF/SCCF Council
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Current UNDP Support to Countries in the Arab
States
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UNDPs Adaptation Portfolio

• Where do we stand in the region?

13,3 million / 15 million in co-financing

• Addressing priority climate hazards and
  adaptation needs

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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)

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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

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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

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• Emerging UNDP Support to Countries
• in the Arab States to Pursue
• Low Emission Climate Resilient Development

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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.

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A New Development Paradigm A country-driven,
Multi-Stakeholder Climate Finance Framework
Public and Private Sources of Funds (National
and International Sources)
This approach allows governments to put
development at the heart of climate planning
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5 key steps to prepare a LCLRD Strategy
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Enhancing Climate Resilient Development
The project aims at improving MDG related service
delivery through an integrated community
development based approach. The key MDG areas
that will be addressed by the project target four
MDGoals related to poverty reduction,
education,health and environment. These
specifically include i) poverty reduction
through employment creation ii) access to and
quality of education iii) integrated health
services and IV) access to safe water and
improved sanitation.. This approach will be
conducted in 24 villages in the eastern region
which was hit by a severe drought, the worst of
the last fourty years. Six villages namely Khan
Toman, Jafer Mansour and Mgheirat Shibli in
Aleppo and Bsetien, Mueijil and Kabajeb in Deir
Ezzor1 will be targeted in the 1st phas
1 Refer to annex 4

• Drylands Development Centre
• Arab States Programme

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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 Syrias 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.

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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 Regions 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

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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

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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)
• Feed into the development of Low Emissions,
  Climate Resilient Development Strategy (whether
  at the national or sub-national level)

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For further information on adaptation funding and
programming in the Arab States Region Keti
Chachibaia, Regional Technical Advisor-
Adaptation- Arab States keti.chachibaia_at_undp.org
Elie Kodsi, Regional Manager for Arab States,
UNDP Drylands Development Centre,
elie.kodsi_at_undp.org