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Adaptation

Making carbon finance work for the poor

Rachel Kyte's picture

During this week in Durban, we announced two new financial initiatives designed to help the least-developed countries access financing for low-carbon investments and enable them to tap into carbon markets after 2012 - the Carbon Initiative for Development (Ci-Dev) and the third tranche of the BioCarbon Fund (BioCF T3).

The funds, focused on agriculture and access to energy, are designed to strengthen links to private sources of capital via carbon markets for some of the world's poorest communities.

The new instruments will help client countries to buy carbon credits from a range of projects including household biogas systems in Nepal, cook stoves in Africa, reforestation in the Democratic Republic of Congo, soil carbon in Kenya, and municipal solid waste in Uganda.

Ci-Dev, aiming to raise USD 120 million, is a partnership of donor and recipient countries, where public and private sector are pledging their support to capacity building and carbon market development in the poorest countries of the world.

The second initiative, the BioCF T3, will focus on reforestation and agriculture projects.

The agriculture projects are another example of the climate-smart agriculture we have been talking about all week – and deliver a triple win of increased food security and resilience through reduced soil erosion and increased land fertility as well as the access to new carbon markets.

Let's take charge of our future

Max Thabiso Edkins's picture

Here at the African COP, I aimed to highlight African climate change experiences. As a young African filmmaker, I am extremely excited to have been selected as the winner of the Connect4Climate Special Prize in their photo/video competition. This is a great opportunity for me and for the communities I have been working with in Southern and Eastern Africa to showcase the exciting photo, theatre and video work I have been engaged in with them.

With Astrid Westerlind Wigström I have developed and implemented the ClimateConscious Programme of ResourceAfrica UK. Under this programme, we have worked with partner NGOs in Namibia, Tanzania and Kenya to raise awareness, build capacity and facilitate the knowledge exchange with and from rural African communities. Our activities are aimed at spreading climate change knowledge to those communities most vulnerable to the impacts of climate change and least likely to receive climate change education.

Saturday in Durban was agriculture day, and focus was on Africa

Rachel Kyte's picture

Over 500 farmers representatives, scientists and development practitioners were out in force today at the third Agriculture and Rural Development Day (ARDD) in Durban. They are determined to put agriculture on the COP 17 agenda.

Their arguments are clear: Any serious effort to reduce green house gasses must include agricultureAnd COP 17 is the chance for Africa to shape the agenda and establish an agriculture work program that is informed by science and covers adaptation and mitigation. And even for some `No agriculture, No deal'.

And today these voices are being heard.

Three years ago there was very little discussion around agriculture and climate change…this year agriculture events are everywhere around the COP. 

Climate-smart agriculture – that’s agriculture that combines proven conservation agriculture techniques with the latest technologies like drought and flood tolerant crops, better weather forecasting and risk insurance for farmers – is gaining momentum.

People are paying attention because climate-smart agriculture delivers a triple win – increased productivity, increased adaptation and mitigation benefits.

Agriculture is being reimagined.

Africa stands to benefit most from climate-smart agriculture because of the vulnerability of rural people to climate change and the dependence of so much of the population on agriculture. And for Africa, adaptation is key.

Will Durban deliver?

Andrew Steer's picture

The next two weeks will see nearly 20,000 people descending on Durban for this year’s Climate Change negotiations.  What might they achieve? Not much, if you believe some of the pessimistic assessments in the press. Are the gloomsters right? No, not necessarily.

What could be achieved?   

Here goes… starting with the practical decisions that are on the agenda, and could affect peoples’ lives fairly quickly:

  • A global system of technology centers that would provide access to knowledge and capacity building in developing countries for climate smart technology – which in turn could yield more investment, more jobs and lower costs.
  • A system that would help developing countries prepare and finance their adaptation plans.
  • A decision to incorporate agriculture fully into the Convention (something that, oddly, has never been done), allowing poor farmers to benefit from climate finance.
  • Simpler rules on how to credit greenhouse gases from forests, in turn making it simpler to prevent deforestation, and for forest dwellers to access support.
  • Common rules allowing city-wide approaches to dealing with climate change. (Many cities are showing more leadership than countries).
  • New eligibility procedures that would help bring sustainable energy to the 65% of African households that currently have no electricity.
  • Agreements that would encourage the development of a long-term networked carbon market that would lower the costs of addressing climate change and bring finance and technology to developing countries.

There is a risk that these measures will be crowded out by the big political decisions at Durban. This would be a mistake. While not game-changers individually, they are important building blocks towards an eventual global deal. 

Will Suna get a dam despite the change in rainfall?

Philip Angell's picture

Earlier this year, we were in a country called Suna. If it sounds unfamiliar, it is an imaginary developing country in West Africa. For one day, two dozen senior Ghanaian officials and business leaders in Accra participated in a simulation exercise. They were grappling with a question on whether to build a new hydroelectric dam in the backdrop of uncertain data on water availability for the next 50 years. Although the situation was fictionalized, the problem is quite real for decision makers in many parts of the world.

The broader question was: How do you prepare for the tough, contentious, complex decisions required to deal with impacts of climate change that now seem inevitable? 

That question posed for the simulation exercise was key to the 13th edition of the World Resources Report: Decision Making in a Changing Climate (jointly published by the World Bank, UNDP, UNEP, and the World Resources Institute). We took a distinctly new approach to research and writing this report, one that engaged a wide range of experts and practitioners from the very beginning, as well as one that tried new techniques. 

One important part of that new approach was to engage government officials, members of civil society and the private sector in two developing countries, Ghana and Vietnam, to participate in scenario exercises involving climate adaptation decisions. The goal was to learn how officials approached such decisions, how they would go about making them…and why.

The reason the core question is complex is the vast sea of uncertainty on the extent of future climate impacts. Between now and 2050, predictions in a 2010 World Bank report on the Economics of Adaptation to Climate Change, suggests that yearly rainfall in the country could plummet to 60% less than it is today or increase by as much as 49%.

Giving agriculture a voice in the climate change negotiations

Fionna Douglas's picture

If anyone can do it she can.

Tina Joemat-Pettersson, Minister for Agriculture Forestry and Fisheries is an energetic member of the South African government and a dynamic, passionate advocate for agriculture. She is determined to put agriculture on the agenda of the UNFCCC’s COP 17 taking place in Durban in later this year. She brings so much energy and enthusiasm to the cause, you would think she could do it alone. Luckily she won’t have to.

Every day that passes, the Minister is persuading others to join her campaign to give agriculture a voice in the climate change negotiations.

In Johannesburg this week, at Minister Joemat-Pettersson’s initiative, her Ministry, together with the African Union, hosted an African Ministerial Conference on Climate-Smart Agriculture that was supported by FAO, and the World Bank. African Ministers of Agriculture and their delegates from 21 countries joined scientific experts, civil society representatives, researchers and colleagues from multilateral organizations. The meeting was focused on sharing leadership perspectives, exploring challenges and grasping new opportunities for climate-smart agriculture.

As the international community considers the challenge of feeding over 9 billion people by 2050, in a world of increasing land and water scarcity and erratic weather patterns, climate-smart agriculture - an approach that offers triple wins of enhancing productivity, resilience and carbon sequestration - is attracting increased attention.

   

A port of call for climate change

Vladimir Stenek's picture

The subject of the usefulness of harbors is one which I must not omit, but must explain by what means ships are sheltered in them from storms.…But if by reason of currents or the assaults of the open sea the props cannot hold the cofferdam together, then, let a platform of the greatest possible strength be constructed...” (Vitruvius. 1st century B.C.E. De architectura)

“(Ports’) main purpose is to provide a secure location where ships can berth.” (Stopford, M. 2009. Maritime Economics. Routledge. UK)

More than two millennia passed between the two writings. Yet, some of the basic requirements for ports haven’t changed much. The assessment of their adequacy in the light of current and future climate change impacts requires new approaches. Rising sea levels, shortening return periods of storm surges and floods, increased intensity in storms – to name a few –  can have detrimental impacts on port facilities and equipment. Using only historic climatic records to plan for the future is likely to be inadequate, especially for assets that have long lifetimes.

However, port facilities are only a part of a bigger picture. Even if a port is planned and operated with considerations of climate change impacts, the inland infrastructure and supply chain that serves a port –roads, rail or inland water transport - that is not designed to withstand projected climate impacts may pose the weak link and interrupt a port’s operations. Finally, the supply cargo transported through a port can be affected by extreme events (as in recent interruption of mining operations in Australia due to heavy floods, or the ongoing impacts of heavy rains and flood on the roads of Colombia) or the gradual change in climatic conditions (for example, agricultural products).

More than 80% of globally traded goods are transported by the sea and through the ports, and climate risks analyses and subsequent climate proofing need to be incorporated to key elements. However, a recent survey of several hundred ports found that although almost all respondents forecasted expanding new infrastructure in the next few years, most were not planning for climate change. A possible reason identified in the study is lack of information that is specific to climate risks to the ports: although the vast majority of respondents felt that ports should consider adaptation, only one third felt sufficiently informed.

Scaling up community-based adaptation

Robin Mearns's picture

Charting a course among the long, narrow fishing boats that plied back and forth across the river, the ferryboat pulled in to Chila market. Election posters fluttered in the breeze. A young man pedaled past on a rickshaw, his distorted voice blaring out campaign slogans from a large megaphone. Flashes of electric blue caught the eye where women, men, boys and girls drag-netted the river banks in search of shrimp. A day and a half’s drive, river-ferry crossing and boat-ride to the south-west of the capital, Dhaka, Chila is one of the last villages on Bangladesh’s mainland before you reach the Sundarbans – the world’s largest area of mangrove forest and an essential protective barrier against floods and storm surges which climate change is only expected to exacerbate. We had come to see for ourselves how local communities are adapting to some of the changes that climate change is expected to bring.

This week in Dhaka, over 350 people from 60 countries met to exchange knowledge on ways to meet the challenge of scaling up community-based approaches to climate change adaptation. This was the fifth such international conference, organized by the Bangladesh Center for Advanced Studies (BCAS) and the International Institute for Environment and Development (IIED), and supported by 37 other international NGOs and bilateral and multilateral development agencies including the World Bank. In her inaugural address, the Prime Minister of Bangladesh, Sheikh Hasina, called upon participants to come together in a spirit of mutual learning, not just from each other, but also from the communities that a number of us visited during three days of field visits.

The trip I joined to Chila took place on an historic day. Over the holiday weekend marking this young country’s 40th anniversary since independence, local elections were also taking place for the first time in 12 years. On the way to the ferry, our bus driver took us on an unannounced detour so he could go and vote. Once in Chila, we talked with community members at the local market and in their homes, often precariously balanced between shrimp ponds, stretching as far as the eye can see, where not so long ago there were only rice paddies.

Three 'tribes' within development can work together

Robin Mearns's picture

Social protection, disaster risk reduction, and climate change adaptation – how do they relate to one another? Are they still largely separate communities of practice or ‘tribes’ within development or humanitarian contexts? Are there signs that they are beginning to work together to help us deal with the increasingly risky and uncertain world in which we live – one in which life comes at you fast?

 

The devastating earthquake and tsunami in northeast Japan have reminded us just how precarious people’s lives and well-being can be, even in the world’s richest countries. But in the world’s poorest countries and communities, the threat of drought, floods and other climate risks looms large in everyday life, and is a major reason why many people are held back from transforming their livelihoods and permanently escaping poverty.

 

Rehabilitating degraded lands by water  harvesting in Lemo Woreda, Ethiopia. Picture by Cecilia Costella

Last week in Addis Ababa, 120 people from 24 countries gathered in UNECA’s historic Africa Hall – an architecturally significant symbol of African independence and optimism – to learn from each other how best to make social protection work for pro-poor disaster risk reduction and climate change adaptation. Ethiopia was the ideal venue for this international workshop. One in three people in Ethiopia lives in poverty, largely dependent on rain-fed agriculture for a living, and is highly susceptible to droughts, floods and other climate vagaries.

 

As the President of Ethiopia, H.E. Girma W/ Giorgis, remarked in his welcome address, Ethiopia is also proud to be breaking new ground in social protection for climate risk management through the flagship Productive Safety Nets Project (PSNP). In his video message to the workshop, the World Bank’s Special Envoy for Climate Change, Andrew Steer, applauded Ethiopia for its part in being a “pioneer in the revolution that is under way in social protection programs for the poor”. Ethiopia also displays global leadership in the ongoing climate change negotiations under the UN Framework Convention on Climate Change. As Andrew Steer observed, just as the Government of South Africa is determined that the Durban Conference of the Parties (COP) in December this year be seen as “Africa’s COP – just like the World Cup”, the agenda discussed in this workshop was very much “Africa’s agenda, and the agenda of all vulnerable countries everywhere”.

A bond for climate solutions

Laura Tlaiye's picture

Why would a group of large investors care about climate change when their primary concern is ensuring adequate returns for their investment portfolio to meet their future financial obligations? This group includes pension funds, insurance companies or foundations. Pension funds alone are estimated to hold over US$25 trillion globally

 

As Alan Miller indicated in his recent blog, a report published by Mercer (a well-known investment advisor) estimates that uncertainty around climate policy could contribute as much as 10% to overall portfolio risk for investors to manage over the next 20 years. So, investors are beginning to pay attention. Choosing to support investments that help address climate change or increase climate-resilience also helps reduce the exposure of portfolios to this risk. 

 

Green bonds issued by the World Bank is one such instrument. Funding raised through green bonds is earmarked for eligible low-carbon and adaptation projects financed by IBRD in its member countries. For example, the money could be used for funding an eco-farming project in China, or improving the solid waste management in Amman, Jordan. On the mitigation side, eligible projects could include solar and wind farms. On the adaptation side, it could be protection against flooding or droughts.

 

Earlier, this month, a 'Green Bond Summit' gathered about 110 representatives of the investment community. The event was hosted by State Street Global Advisers -- an asset manager with over $2 trillion under management in different asset classes. The goal was to discuss how green bonds could attract greater participation from large investors to scale-up financing of climate solutions through the capital markets. The World Bank, a pioneer of the green bond, and other issuers such as ADB, EIB, and IFC deliberated with the participants on prospects for common green bond standards, the financial characteristics investors expect, and the policy issues that underlie the demand for climate investments.  

 

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