Climate Change Adaptation in the Netherlands Dominique Tappy Thursday 10 th December 2009

1. Climate Change Adaptation in the Netherlands Dominique Tappy Thursday 10th December 2009

2. Policy Context • EU policy • Dutch policy landscape • Institutional and inter-ministerial co-operation • The Costs of Adaptation • Sectorial overview • Adjustment Strategies • Sectorial overview • Potential Lessons for Romania • Follow up

3. Policy Overview - EU • 2007 Adaptation Green Paper • EC recognition that there will be unavoidable impacts of climate change • Placing adaptation firmly alongside mitigation • Addresses wide range of issues such as the integration of adaptation into existing policies/legislation • Non binding • Recommendations for MS to improve adaptive capacity • 2009 Adaptation White Paper • Building on Green Paper recommendations • Making a economic case for adaptation • Highlighting the importance of knowledge base • Integration of adaptation into existing EU policies • Increasing the resilience of key sectors • Partnerships • 2009-2011 Economic costs of adaptation assessed

4. Dutch Policy Landscape • 2006 - National Programme for Adaptation, Space and Climate (ARK) • 2007 - National Adaptation Strategy • 2008 - National Adaptation Agenda (ongoing) • 2009 – Inter Provincial Accord (IPO) • Multi-level Governance, inter-ministerial and institutional co-operation

5. National Programme for Adaptation, Space and Climate (ARK) “Striving to make the Netherlands more climate resilient.” • Launched: 2006 upon initiative of the national government • Initial Stakeholders: VROM, V&W, LNV and EZ • Extended Stakeholders: VNG, IPO and UvW • Shared: contributions, responsibilities, staff, costs (€1.6m phase I+II) • Approach: “on-measure”, tempo, extended stakeholder interaction, case studies, international, phased approach, sector specific • 3 Focus themes: • Awareness, networking and strategy development • Knowledge base and exchange • Instruments, measures and stimulation of innovation • Outputs: • National Adaptation Strategy • National Adaptation Agenda

6. National Adaptation Strategy • Avoid social unrest and discomfort caused by climate change • Reduce severity of unavoidable impacts of climate change • Identify and exploit emerging opportunities • Launched: 2007 • Involved Stakeholders: VROM, V&W, LNV, EZ, VNG, IPO and UvW • Approach: closely linked to National Adaptation Agenda • Focus themes: • Risk management • Innovation stimulation • Implication on spatial planning • Soft measures • Increased resilience, resistance and adaptability • Use of updated climate projections (KNMI)

7. National Adaptation Agenda “Setting the agenda to implement the National Adaptation Strategy” • Launched: 2008 and ongoing • Involved Stakeholders: VROM, V&W, LNV, EZ, VNG, IPO and UvW • Approach: closely linked to National Adaptation Strategy • Proposed Actions: • Adjustments to water (transport) systems • Run pilots with stakeholders • Establish whether support campaign is needed • Integrate adaptation at all levels of government • Run an awareness campaign • Adjust instruments • Highlight need for budget changes • Monitor adaptation process • Development of knowledge base • Establish security profile

8. Inter Provincial Accord (IPO) “Establishing the setting for inter ministerial and provincial co-operation” • Signed: 2009 • Involved Stakeholders: VROM, VWI, V&W, LNV, EZ, Provinces • Objective: Determining the roles/responsibilities in relation to national climate targets • Adaptation specific: • Re-affirming the role and importance of the ARK programme • Confirming the outputs of ARK (NAS and NAA) • Mentioning that from 2015 onwards, taking adaptation will be compulsory in all spatial planning decision • Approach: • Establishing the roles of all involved parties with regards to a number of climate targets • Agreement on responsibilities towards outputs

9. Multi-level Governance, inter-ministerial and institutional co-operation “Horizontal and Vertical coordination” • Horizontal: • ARK • Make use of sectoral knowledge and tools • Integration of adaptation across various ministries • Responsibilities are shared across stakeholders • Vertical: • IPO • Delegation of responsibilities across all levels of government • Integration local authorities, water utilities and provinces

10. The Costs of Adaptation – The Netherlands 1/3 “Costs of adaptation and cost of non-adaptation” • Latest Estimates from ARK evaluation: • Agriculture: • Loss of harvest (nationwide) due to extreme rainfall (1998): €600 million • Loss of maize harvest (1992): €15-30 million • €4 million/year increased revenue in agriculture through water management • Transport: • 1998 heat wave - €14 million • €7 million infrastructure repairs • €5 million delays/disruption • €2 million indirect losses

11. The Costs of Adaptation – The Netherlands 2/3 • Water related: • Cost of flooding: estimated at 0.1% of GDP/year • Upgrading waterways, coastal facilities and infrastructure: €24 billion (2050) • Sewage systems: €3 billion • Dikes and Shore defenses: € 4-8 billion (leading to 2050)

12. The Costs of Adaptation – The Netherlands 3/3 • Avoiding urban heat island effect: €65/m2 (to ensure adequate cooling to urban areas) • Construction of climate resilient buildings: €23 billion (leading to 2050) • Protecting biodiversity: €7 billion -> First evaluation of the costs of adaptation within the context of ARK suggest a total cost of €73 billion between 2009 and 2050. (measured in €2006 with a discount rate of 4%)Routeplannerstudie, Van Drunen et al., 2007

13. The Costs of Adaptation – International experience • The floods of summer (UK) 2007 had significant negative impacts on farmers: “soil nutrient and pesticide losses from run off not only damage the environment but also cost farmers more than £50 million a year.” In addition, the same floods destroyed agricultural infrastructure and assets, such as 50% of the British pea harvest for 2007. • “If we do not adapt, the economic costs will be extreme. Over the next 50 years, we expect to see: windstorms losses increase by two thirds to $27 billion per annum worldwide, additional flooding costs of €100-120 billion a year in Europe and a 15-fold increase in UK flood costs to £22 billion”. Stephen Haddrill, Director General of the Association of British Insurers “In the summer of 2007, flooding affected the railway in 265 places. These floods cost Network Rail £10.5 million in infrastructural damages and a further £25.6 million in compensation to train operators for business interruption.”

14. Adjustment Strategies (by sector) • Agriculture: • Crop production • Livestock management • Soil Management • Water management • Implementation of organic farming methods • Forestry: • Species management • Water management • Pest management • Biodiversity protection

15. Adjustment Strategies (by sector) • Water: • Storage of excess water • Drinking water management • Coastal defences • Adjustment of planning and design (infrastructure) • Strategic measures including risk management, use of climate change scenarios • Energy Infrastructure: • Cooling water management • Load management • Identify the location and site specific impacts • Consider the impacts of climate change in planning new energy infrastructure • Transport Infrastructure: • Increased physical resilience • Transport transit management (including emergency planning)

16. Adjustment Strategies (by sector) • Property: • For new build: • consider restricting new development in areas with a increased flood risk (coastal/floodplain) • make use of thermal properties of materials to improve cooling in the summer • reduce solar heating using overhangs, shade and green spaces • introduction of new, energy and water efficient technologies to reduce building demand • Improved building codes • For retro-fitting existing stock: • flood resistance • flood resilience • water stress • temperature control

17. Adjustment Strategies (by sector) • Financial sector: • There will be greater need for capital in order to facilitate adaptation projects and measures • Emergence of new products and services, such as weather derivatives • More generally, opportunities for investments in adaptation projects will feature in property, transport and energy infrastructure sectors • Insurance sector: • Insurers can aim to reduce risk by engaging with different levels of government • Insurance products, such as in the agricultural sector, products that insure against crop failure resulting from the impacts of climate change • Insurers can seek to price climate risk appropriately • Spreading the risk posed by climate change impacts by diversifying products and services

18. Potential Lessons for Romania • Importance of co-operation between and throughout ministries and departments • Strive to improve available climate projections • Encourage stakeholder interaction and reaction • Sector specific approach • Integration of adaptation into existing policies • Raising awareness and increasing public “buy-in” for adaptation • Identify and communicate opportunities • Business Continuity Planning

19. Follow up • More information available upon request. • Do not hesitate to get in contact. • Follow-up questions are welcome. • Dominique Tappy • Associate SQConsult • Email: d.tappy@sqconsult.com • Tel: +31 (0) 641 722 726 • www.sqconsult.com • Thank you!