What Happens Now

1. What Happens Now

2. But first, The Context!

3. Sustainable Human Development EQUITY EMPOWERMENT AND PARTICIPATION SUSTAINABILITY SECURITY AND RESILIENCE COOPERATION Functional and stable political governance (transparent, accountable, inclusive, effective) Sustained and inclusive green growth Prevention and Reduction of risks from, and increased Resilience to, shocks Social well-being and realization of basic capabilities Well-managed natural resource base, with equitable benefit-sharing Examples of areas that can be influenced by UNDP in the area of Human Development and Environmental Sustainability: Structural transformation of the economy, changes in productivity and employment-intensity of growth, greening and low emission production processes. Sustainable use and governance of natural resources (production processes/access/pricing/revenues/benefit-sharing/conservation) Preparedness and resilience for shocks and foundations for rapid and broad-based recovery: Climate change adaptation, building resilience of ecosystems, communities and infrastructure. Functionality, transparency, efficiency, effectiveness and inclusiveness of systems of public administration (at all levels). Capacity development, public policies and plans for pro-poor, green development (economic and fiscal tools, national budget systems, social and environmental strategic assessments, etc.). Existence, coverage and sustainability of systems for transfer of risk and for social protection and of social services (including energy and water) access) STRUCTURAL FACTORS: Natural endowments – location - historical experience, traditions and legacies – political, administrative, social and ethnic structures - social and civic culture and norms – social capital (associational base, levels of civic trust, record of consensus and collaboration)

4. The Climate Finance Readiness Challenge Despite growing volume and variety of resources (international & domestic, public & private), developing countries face 3 key challenges to climate finance readiness: National capacities are required to navigate complex landscape and allow countries to access and deliver different forms of finance Need to catalyze private finance: public finance alone is insufficient to meet demands of climate challenge, must catalyze greater volumes of private finance Limited alignment between climate and development: to drive economy-wide transformation, climate finance must be mainstreamed into planning and development policy

5. Components of Climate Finance Readiness and Associated Capacities Required

6. Green, Low Emission Climate Resilient Development Strategies: Promoting robust strategic planning and decision-making Develop Green LECRDS Determine appropriate “policy-mix” and financing options • Technical and Policy Advice • Developing and Applying Methodologies • Oversight and Financial Management • Training • Multi-stakeholder Dialogues • Convening and Coordination Generate & Share Knowledge Establish Enabling Environment to Catalyze Capital Catalyze Finance

7. Great! So, where are we then…..

8. Ongoing LDCF, SCCF, AF financed projects – need to build off these Mongolia Ecosystem-based adaptation mainstreamed into sector policies; and capacity development for integrating climate change risks into land and water resource management planning. Bangladesh - Developing the capacity of coastal communities for dealing with climate risks; engaging in coastal afforestation; and building local level government capacity in managing climate change risks and adaptation. Vietnam - Updating coastal zone management and development policies to promote increased resilience of critical infrastructure in vulnerable coastal areas; enhancing government capacity to understand/ incorporate climate risks in development planning. Cambodia - Enhancing local institutional capacity for climate resilience (e.g. training local engineers; setting up dispute mechanisms). Water related adaptation options at the local level such as resilient design, management and enhancement of water infrastructure. Maldives- costs and benefits of climate-proof sensitive infrastructure (freshwater management, solid waste and wastewater management, energy services, infrastructure); Enhanced capacity of national, provincial, atoll and island authorities and civil society leaders to integrate climate risk information into policy, planning and investment decisions. Philippines - Assisting the agriculture sector in adapting by creating regulatory environment for private sector engagement with farming households, creating financial products for farmers and building farmer capacity. Nepal - Assessing impacts of climate risks and adaptation options (physical infrastructure and community preparedness) for glacial and other flooding in mountainous regions. Sri Lanka - Disaster resilient infrastructure development controls and building codes; restoration and rehabilitation of natural buffer zones; and technical human resources capacity building to account for climate risks in planning and building of physical infrastructure Indonesia - Cost-benefit analysis on promoting economic diversification in several vulnerable villages. Focus on measures that will stimulate entrepreneurship especially for women; foster close linkages to the private sector Lao PDR - Economic impacts of climate change assessed. Increased knowledge and understanding of climate variability and climate induced threats on agricultural production, food security and vulnerability, in Lao PDR. Timor Leste – Assessing climate vulnerabilities and adaptation options at the national level; capacity building at the national and local level; and developing adaptation projects in rural areas (especially water related). Thailand - – Economic assessment of options for climate-resilient coastal protection; and enhancing local knowledge and capacity and implementing small scale adaptation measures.

9. Cancun Adaptation Framework (CAF) - National Adaptation Plans (NAPs) - Medium- and long-term climate change adaptation needs Green Climate Fund Supporting LDCs to Advance National Adaptation Plans (NAPs)

10. So, what did we hear from you this week

11. Country Needs • Demand for understanding of economics of climate change adaption at technical and policy levels • Key sectors- Agriculture (rural development), Water (flooding/drought) and inter-sectoral implications • Trained personnel at country level • Intra Ministry capacity development • Targeting High level Policy Makers (Awareness) • Emphasizing issues of prominence for decision-makers (speaking their language)

12. Views on Tools and Issues Tools • Sectoral and Inter-Sectoral Analysis • Market and Non-Market Valuation • Investment (project) Appraisal Key Issues Short-term, long-term Equity, Gender, distributional impacts Must go beyond research and result in change in…

13. So, here is what we will do….

14. So, here is what we will do…. • (1) Build your technical capacity to conduct assessments on the economics of adaptation • For: portfolio (# of projects) appraisal and • For: sectoral and cross-sectoral planning • (2) Build support among decision-makers through awareness and sensitization to key issues • Support your efforts to link this programme with others aimed at advancing climate resilient development

15. Priority sectors (National Communications and NAPAs)

16. Key Questions that you will be able to get insights on through this programme: • Managing water sector and the agriculture sector under current climate conditions • How plans may need be adjusted so that sectoral economic development takes into account climate change risks and opportunities • Evaluating portfolio of initiatives (comprising discrete projects) in context of climate change (e.g. Khulna type Government projects)

17. Other topics of interest • What are most profitable (efficient) choices for farmers in different regions of my country given current conditions? What type of farm, what crops, what livestock, how much irrigation, and how much input (labor, machinery, fertilizer) should they use? • How do the choices above change as market conditions (such as prices) change? • How do the choices above change as climate changes?

18. Exploring distributional and equity issues • What is the best allocation of water across users in each major water basin in my country today? • How should water allocation change as the demand by different types of users changes over time? • How should water allocation be adjusted in years with abundant water and with water shortages? • What water investments would be efficient (dams, canals, levees) and where and when should they be made? • How would climate change alter these water investments and water allocation plans above?

19. Expected results • National plans/strategies taking economics of climate change adaptation into account (Sector Plans, National Development Strategies) • Appraised Portfolio of projects • Trained technical national teams • Supportive, knowledgeable decision-makers • Sectoral results on the costs-benefits of adaptation options • Case Studies and Curriculum • Community of Practice and Mentoring support

20. So, what is the modality for achieving these expected results: Two year capacity building programme Country teams will conduct relevant project appraisal/sector analysis in context of ongoing initiatives of priority to them Experts from region and international to provide training/mentoring At least 4-5 regional gatherings and demand based in-country support Technical Support Available from a network Linking with other ongoing capacity building programmes on climate modelling, vulnerability analysis (eg. UNU-ISP, UNDP, USAID adaptation projects, and others)

22. Leverage financing from initiatives already in place and are being developed Mongolia Ecosystem-based adaptation mainstreamed into sector policies; and capacity development for integrating climate change risks into land and water resource management planning. Bangladesh - Developing the capacity of coastal communities for dealing with climate risks; engaging in coastal afforestation; and building local level government capacity in managing climate change risks and adaptation. LEAST DEVELOPED COUNTRY FUND (LDCF) SPECIAL CLIMATE CHANGE FUND (SCCF) SPECIAL CLIMATE CHANGE FUND (SCCF) SPECIAL CLIMATE CHANGE FUND (SCCF) SPECIAL CLIMATE CHANGE FUND (SCCF) LEAST DEVELOPED COUNTRY FUND (LDCF) LEAST DEVELOPED COUNTRY FUND (LDCF) LEAST DEVELOPED COUNTRY FUND (LDCF) SPECIAL CLIMATE CHANGE FUND (SCCF) LEAST DEVELOPED COUNTRY FUND (LDCF) LEAST DEVELOPED COUNTRY FUND (LDCF) Vietnam - Updating coastal zone management and development policies to promote increased resilience of critical infrastructure in vulnerable coastal areas; enhancing government capacity to understand/ incorporate climate risks in development planning. Cambodia - Enhancing local institutional capacity for climate resilience (e.g. training local engineers; setting up dispute mechanisms). Water related adaptation options at the local level such as resilient design, management and enhancement of water infrastructure. Maldives- costs and benefits of climate-proof sensitive infrastructure (freshwater management, solid waste and wastewater management, energy services, infrastructure); Enhanced capacity of national, provincial, atoll and island authorities and civil society leaders to integrate climate risk information into policy, planning and investment decisions. Philippines - Assisting the agriculture sector in adapting by creating regulatory environment for private sector engagement with farming households, creating financial products for farmers and building farmer capacity. Nepal - Assessing impacts of climate risks and adaptation options (physical infrastructure and community preparedness) for glacial and other flooding in mountainous regions. Sri Lanka - Disaster resilient infrastructure development controls and building codes; restoration and rehabilitation of natural buffer zones; and technical human resources capacity building to account for climate risks in planning and building of physical infrastructure Indonesia - Cost-benefit analysis on promoting economic diversification in several vulnerable villages. Focus on measures that will stimulate entrepreneurship especially for women; foster close linkages to the private sector Lao PDR - Economic impacts of climate change assessed. Increased knowledge and understanding of climate variability and climate induced threats on agricultural production, food security and vulnerability, in Lao PDR. Timor Leste – Assessing climate vulnerabilities and adaptation options at the national level; capacity building at the national and local level; and developing adaptation projects in rural areas (especially water related). Thailand - – Economic assessment of options for climate-resilient coastal protection; and enhancing local knowledge and capacity and implementing small scale adaptation measures.

23. What Happens Now • Immediate Action : • By countries • Require you (or nominated personnel) to get substantive training in the economics of climate change (co-benefits of training: allow you to do all sorts of other analyses) • Training through a series of meetings/training sessions. • Please discuss this with your counterparts and superiors • By organizers (UNDP-USAID) • Updated concept note for this programme

24. Draft Timeline By end of Jan 2013 Talk to colleagues and coordinate, make linkages to ongoing UNDP, LDCF, SCCF, AF, USAID and other initiatives Identify projects to appraise Identify data available and gaps for sectoral analysis By end of March 2013 Technical Training for countries April- Oct/Nov: Policy awareness Country support (technical) Additional data collection, early analysis by countries Nov/early Dec 2013 Technical Training First Quarter 2014 Country support Analysis Policy Dialogue Second Quarter 2014 Regional Meeting (Technical) Fourth Quarter 2014 High Level Policy Dialogue (Ministerial)

25. Keep in mind The Context!

26. Change in Lives Increased resilient food security Healthy, educated, employed, empowered people / communities Why results? What results? How to achieve and sustain them? Changes in behaviors, norms Local farmers adapt their practices to reflect climate-related factors LEAST DEVELOPED COUNTRY FUND (LDCF) People and communities are using the services and changing their behavior or norms, etc. SPECIAL CLIMATE CHANGE FUND (SCCF) “Real, meaningful, and sustainable improvements in people’s lives.” Improved Performance  Local government plans/budgets more effectively reflect climate change adaptation needs; provincial agricultural extension services adapted Institution or systems are performing more effectively and efficiently, in a more consistent and resilient manner (performance, stability, adaptability) r Increased Capacity  Systems related to climate change adaptation (planning, financing, etc) are strengthened in multiple institutions in the sector Better functioning systems, structures, mechanisms, processes etc. in areas: institutional arrangements; leadership; knowledge management; and accountability The Results/ Development Story… We analyze capacity needs related to climate change adaptation; develop and implement a capacity development strategy/plan to address them (incl. tech skills development) Capacity Development Processes Stakeholder engagement, capacity assessments, capacity development strategies and change processes, change management Source: Ashley Palmer (2012)

27. Green, Low Emission Climate Resilient Development Strategies: Promoting robust strategic planning and decision-making Develop Green LECRDS Determine appropriate “policy-mix” and financing options • Technical and Policy Advice • Developing and Applying Methodologies • Oversight and Financial Management • Training • Multi-stakeholder Dialogues • Convening and Coordination Generate & Share Knowledge Establish Enabling Environment to Catalyze Capital Catalyze Finance