Development & Climate Change

National CC Committee retreat

Koforidua, Sept 2009

Sean Doolan

Ghana big picture?

Sub-national

National

Sub-regional

Regional

Global

Community

Household

African Group & negot’ns

Adapt Fund Board

REDD

Forest Carbon Facility

Disaster risk reduction

UNDP – GEF

Africa Adapt’n Prog

Economics Adapt’n to CC

UNFCCC NEEDS study

Carbon finance

Gas flaring

Civil society dialogue

CC Adapt’n Africa fellowship

CARE Adapt’n Learning

Climate change strategies & responses

Opportunity for comprehensive response

– Common funding mechanisms & dialogue

Governance

– Who is involved

– National & sector levels

– Institutional mechanisms

– How climate strategies are crafted – what

content?

– Facilitate bottom-up action

Climate engagement & stakeholders

Multiple stakeholders

– MDAs, MoFEP, NDPC, Presidency

– Different GoG-DP sector groups

– Civil society, academia, private sector, Parliament

Climate change strategies - MoFEP

Attracting the attention of politicians on CC

Awareness creation of both executive & legislature

Identify champions on CC & encourage high involvement

Use preliminary costs and opportunities on climate

change (in terms of GDP & numbers affected)

Make a case for attention of policy makers – frame in

terms of sector interests & priorities

Climate change strategies - MoFEP

Long-term national development plan & medium term

sectoral plans - opportunity to include CC issues

Need to use country PFM systems & processes -

strengthening of PFM for more effective & efficient delivery

Use of Budget Support (General or Sector) as a preferred

mechanism to project support

Currently personal emoluments (PE) a significant % of

MDA expenditure - climate funding has potential to

change mix for better service delivery

Climate change strategies - MoFEP

ENR Council, once operational, a good start for

mainstreaming

Need clearly defined roles for participating institutions in

coordination & implementation to ensure effective

delivery

Country ownership should be emphasized, with donors

partnering in facilitation role, esp. on capacity building

Need adequate capacity at levels of individual,

organizational, & the enabling environment

Need numbers, tools & approaches

Economics (what value, costs?)

What tools?

Towards wider “programmatic approach”?

Financing mechanism (how much?)

What instruments to fund?

National planning & responses?

Interest in carbon markets

– need informed ability to engage

Allocations & trade-offs across sectors

Source: GTZ IIPAC study on crop insurance

Response to climate change must be rooted in development

Development

Mitigation Adaptation

‘Climate-

compatible

development’

‘Climate-

proofed

abatement’

‘Climate-

resilient

development’

… aligned with

adaptation

… & mitigation

objectives

0

2

4

6

8

10

12

2020 2040 2060 2080 2100

% o

f G

DP

Baseline

With adaptation

0.8%

1.7%

3.4%

6.1%

9.6%

25.6%

15.6%

4.1%

1.9%

8.2%

0.5%

1.1%

2.2%

4.1%

6.6%

18.2%

2.7%

5.2%

11.2%

Source: Chris Hope for the DFID study.

Africa scenario A2 'Stern' assumptions, with & without adaptation. The graph shows mean, upper line 95% value.

Adaptation costs - Africa

Losses could be 1.5 – 3% GDP equiv. by 2030, & 10% by 2100

Adaptation can reduce these costs but not remove them

Adaptation & development continuum

Vulnerability Impacts

Focus

Addressing the

Drivers of

Vulnerability

e.g. health, education,

women’s rights,

accountability.

Building

Response

Capacity

e.g. communications &

planning processes,

weather monitoring, &

NRM

Climate Risk

Management

e.g. disaster

management, drought-

resistant crops, “climate-

proofing” infrastructure.

Confronting

Climate Change

typically risks outside

historic climate variability,

e.g. tackling sea level rise

ODA UNFCCC

International funding

Uncertainty, lack of awareness Risk

Knowledge of climate change

Approach

Discrete AdaptationClimate resilient development

Tanner & Mitchell, 2008; from McGray et al 2007

South Africa’s vision on climate change

Source: Dept of Environment & Tourism, South Africa

1. Transition to climate resilient & low-carbon economy

2. Our climate response policy, built on six pillars, will be informed by what is required by science – to limit global temperature increase to 2°C above pre-industrial levels

3. Continue to pro-actively build the knowledge base & our capacity to adapt to inevitable impacts of climate change

4. GHG emissions must peak, plateau & decline - stop growing at the latest by 2020-2025, stabilise for up to ten years, then decline in absolute terms

5. Long term: redefine our competitive advantage & structurally transform the economy by shifting from an energy-intensive to a climate-friendly path as part of a pro-growth, pro-development & pro-jobs strategy

Climate Compatible Growth Plans identify & support mitigation & adaptation

Differentiation:

Both developing +

developed

Process: Support,

best practices,

review, MRV

Content: Priorities,

policies/measures &

international support

Focus:

Development,

mitigation +

adaptation

CCGP

(=climate

compatible

growth plans)

Time horizon: Long

& short term

Content of an effective CCGP

•Assists a country to achieve its growth & development

objectives in a low-carbon way through appropriate

mitigation & adaptation actions

•Both long-term vision & short-term strategy/action plans

•Coordinates action across sectors, link national policies

•Ambitious on emission reduction opportunities & capability

•Spells out requirements for domestic & international

resources in terms of funding, technology transfer &

capacity building wherever required, & clearly specifies the

nature of international assistance needed

Source: Interviews; Project Catalyst analysis

Process of an effective CCGP

Source: Interviews; Project Catalyst analysis

Content

•Developed through involvement of multiple stakeholders,

public, private & social sector, & through public debate

•Based on country sector skews, needs & capabilities

•Integrated into other policy documents & overall economic &

development objectives

•Allows for iterations, learning & refinement over time

•Ensures consistency between overall national plan &

individual actions

•Mandate & ownership directly from country leadership

Defining

NAMA

Assigning

metrics

Registering

In-country

measurement

Reporting

Verification

process for

reports

Domestic/

international

Process/

consequences

for non-

delivery

Stages of the Measurable Reportable & Verifiable process (MRV)

NAMA – Nationally Appropriate Mitigation Action

(i) Oversight (CoP); (ii) Registry of plans; (iii) Review of plans (transparency/ technical assessment); (iv)

Oversight of crediting; (v) Standard setting; (vi) Promotion of technology transfer; (vii) Facilitation of

capacity-building; (viii) Dispute resolution

All three models would have a set of common features

Offset market

NAMA /NAPA/

CCGP

Programme /

Sectoral basis

Funds

Allocation/aggregation

mechanisms

Market

(AAU & ETS)

Public finance

Coordination/oversight

Intermediaries

Sources of funding Delivery

All models will need to be

financed through a combination

of developed country markets &

public finance

• All models will require recipient countries to develop plans

for abatement (NAMA/NAPA/CCGP)

• All models would shift funding towards programmatic /

sectoral basis given limitations of project based approaches

(transaction costs / inability to scale up)

Project-based

CDM limited to

LDCs under all

models

These coordination/ oversight functions

will be common across all models

UK proposal: ‘compact’ approach

Delivery of climate finance at scale,

in support of country-owned,

low-carbon,

climate-resilient development plans,

direct to national budgets

where fiduciary risk allows.

The UK PM’s climate financing package

$100bn each year for climate finance by 2020

Expand & enhance reformed carbon market to deliver

significant % of this

An “automatic” mechanism –Norwegian proposal or

comparable domestic legislation

Climate finance additional to existing ODA commitments

Cap use of ODA for climate-development activities

– up to 10% by UK

New institutional arrangements for delivery

UK proposal for a compact approach

International level: Country allocations e.g. adaptation,

mitigation, based on need. MRV (action & support).

Review of national plans as appropriate

National level: Governments (with stakeholders) develop

national climate-resilient, low-carbon plans, including

MRV frameworks.

Delivery of finance: Directly into national budgets where

fiduciary risk allows.

The compact approach

Ghana has experience – NREG sector budget support

Umbrella frameworks for coordination

Adaptation

Low carbon development

Institutions & capacity

Knowledge & research

Voice

Financing mechanisms

NDPC

Public

Big picture 2?

Health

Private Civil society

Finance &

Economic

Planning

Environment,

Science &

Technology

Nat CC

committee

ENR Council

Technical officials,

civil society

Ministers, VP

Energy

Forestry

EPA