institutional arrangements for adaptation fund: world bank view

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Deserts. Disasters. Health. Agriculture. Institutional Arrangements for Adaptation Fund: World Bank view. Biotic resources. Coastal. Oceans. Steve Gorman Global Environment Operations World Bank. Adaptation Agenda. Adaptation and Mitigation are strong complements - PowerPoint PPT Presentation

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  • Institutional Arrangements for Adaptation Fund: World Bank viewOceansBiotic resourcesCoastalSteve GormanGlobal Environment OperationsWorld Bank

  • Adaptation AgendaAdaptation and Mitigation are strong complementsClimate change impacts on developing countries are expected to increase regardless of mitigation effortsDemand for infrastructure and agricultural/water investments that further need to adapt to climateAdaptation links global environment issues with local development pathsDevelopment investment is at risk in the absence of consideration of climate variability and climate change issuesThe Multilateral financial institutions can effectively link the lending and adaptation agenda to produce synergiesExpected growth of adaptation agenda within UNFCCC Need to strengthen national and local institutions to promote adaptationNeed for long-term funding arrangements to support adaptation agenda

  • Adaptation and Development as part of World Bank Poverty AgendaAccording to OECD Study, 20% to 50% of ODA is subject to climate risk Whatever the mitigation efforts, we are already committed to significant climate changeCurrent climate variability and climate change are significant threats to developmentClimate disasters are already a major burden for developing countries

  • -80-60-40-2001982198319841985198619871988198919901991199219931994199519961997199819992000year%-30-25-20-15-10-50510152025rainfall variabilityGDP growthAg GDP growthEthiopiaA water rich developing country, but with GDP tied to annual rainfall variations. Therefore adaptation and growth & development are closely linkedPreliminary results from : A Country Water Resources Assistance Strategy for Ethiopia Climate Variability is Major Impediment to Development

  • World Bank and IADB Portfolio Study:vulnerability to climate change World Bank IADB

    Average no. of projects each year 440 91

    Average size of annual financing portfolio$ 20 B $ 6.6 B% of projects with moderately sensitive components 40% 27%

    % of projects with highly sensitive components 25% 11%

    Estimated annual expenditure at risk $ 5.3 B $ 1.2 B(Level 2 & 3 impacts) (21 34 %) (8 33 %)

  • World Banks Implementation of Adaptation AgendaMainstreaming adaptation initiatives in country assistance strategies Financing and technical support to adaptation programs outlined in poverty reduction strategies Adaptation is a major consideration in development policy lending and sector wide adjustment programsAnticipatory adaptation is a major component of World Bank Hazard Management ProgramBank support to private sector development, microfinance, insurance, and small and medium enterprises to promote adaptation at local levelEngagement of line ministries at the policy level to promote adaptation agendaAnalytical activities supporting adaptation in Bank policy and lending programs

  • World Bank Experience in Global Funds that Complement Adaptation FundMore than 30 years experience in managing trust funds on global programsCurrently manages over 850 trust funds valued at over $9 billion yearly covering all major sectors with over 25 which Adaptation Fund overlaps

  • Co-financing Complements Adaptation FundWorld Bank Lending/Co-financingTechnicalSupportTo GEFAdaptation FundAs GEFImplementing AgencyEmergency Lending for Hazards Market Mechanisms-Carbon Finance/Insurance FacilityGlobal programs& Trust FundsDevelopmentPolicy LendingInvestmentLendingTrustee GEF TF/ SCCF/LCDFSupport toGEF Secretariat

  • Proposal on Governance Structure for Adaptation Fund

    Evaluation OfficeM&E

  • World Bank Group GEF Program:Mobilizing Public and Private Funds($21.4 billion) 1993-2005

    GEF$2.8 billion

    IBRD/IDA $4.8 billion

    Other Co-financing$13.8 billion

  • Costs of Administering Stand Alone Adaptation FundSource: UNFCCC and WB estimatesNote: Administrative costs of a stand alone AF could be saved by managing AF as part of existing GEF trust fund portfolio

  • World Bank Contribution to Adaptation FundWorld BanksMultiple Roles under Adaptation Fund

    Trustee of Adaptation Fund &(GEF TF, LCDF, SCCF) As ImplementingAgency Coordinating with other IAs & EAs on Adaptation ProjectsTechnical Support toGEF Secretariat

    Mainstreaming Adaptation through PRSPs, CAS Co-financing to AdaptationProjects and NAPAs Policy & Market Mechanismsfor Adaptation Investments Capacity & Knowledge mgt of Adaptation ProgramsSupport to Private Sectoron Adaptation Agenda

  • World Banks Implementation of GEF Funded Adaptation ProjectsKiribati Adaptation Program (SPA funded)Columbias Caribbean Insular Human Health (SPA funded)Pilot Adaptation in Coastal areas of Dominica, St. Lucia (SPA funded)Sustainable land management in Zambezi valley (pipeline) (SPA funded)Pilot Climate Change Adaptation Measures in Andean Region (SCCF funded)Caribbean Mainstreaming Adaptation to Climate Change (Stage II Adaptation funding)Caribbean Planning for Adaptation to Global Climate Change (Stage II Adaptation funding)

  • Multi-sector Approach - Kiribati Adaptation Project

    Hazard mapping done to avoid infrastructure in flood and landslide prone areasElevation of coastal infrastructureIntroduction of building codesProtection of coral reefs Replanting of mangroves

    Improved sanitationManagement of solid and liquid wasteVector control programs for dengue feverMonitoring of areas prone to ciguatera outbreaksPublic HealthCoastal Assets

    Regional collaboration in tuna negotiationsEl Nino/La Nina forecastingLicensing arrangements to decrease year-to-year fluctuationsFisheries

    Crop improvement programs to promote improved adaptation of cassava, yam, taro, sugarcaneSupport to agricultural and rural development programsImproving climate forecasting mechanisms

    Agriculture

  • ConclusionsGEF management of AF with other Funds (GEF TF/SCCF/ LCDF) avoids additional costs and time associated with standalone administration of Adaptation FundExperience in managing GEF Trust Funds permits application of same standards/oversight to Adaptation FundSmall and uncertain size of Adaptation Fund can be better managed as compliment to the portfolio of GEF Trust fundsAdaptation fund could benefit from the larger co-financing and global program resourcesUse of existing trustee infrastructure to manage the Adaptation Fund can result in significant cost savings, which could be ploughed back into the fund to support more projects

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