Climate change and development cooperation

1. Climate change and development cooperation Joyeeta Gupta

2. Messages • Development and climate change are closely linked; • However, the politics in both arenas are highly charged on a North-South basis; • Linking climate change to development cooperation is possible, but mainstreaming is a problem.

3. Mitigation Development generally coupled with increased emissions; wise policy can change that especially in sectors that are less productive and less efficient. Beyond that there are trade-offs Mitigation can have ancillary benefits for development Climate change and development

4. The Evolution of the Right to Development

5. Global governance: The evolution of the 0.7% target

6. The Right to Development: Accepted but under-emphasized The 0.7 percent target: Accepted, emphasized but not achieved The link between the right to development and the 0.7 percent target: Contested The MDGs and development cooperation: New emphasis on achieving MDGs; but resources have to double if these are to be achieved. Development cooperation

8. Donors have had multiple objectives; Delivery was often based on simple theoretical formulae Aid recipient do not respond in predictable manners (e.g. conditionality); Aid evaluation through quantitative indicators is questionable Aid coordination has been donor driven. Development and development cooperation

9. Donor recipient process Donor: decision-making, instrumental, planned Partner: Poor governance Substitution effect Policy substitution Mismatch between priorities and partners Poor diagnosis Technical assistance Administrative burden Challenges in the aid process

10. Lessons from aid: Goal: broaden objective Nature of aid: Not necessarily catalytic Indicators: not just macro, but also micro Aid aligned to country type Aid should be demand driven and not lead to distortions: Not conditional Form of assistance should match need Aid to NGOs subject to caveats Quantity of aid: avoid dependency Balanced aid: poor and other sectors Donors need to take partnership seriously Development and Development Cooperation

11. Lessons from aid: Goal: broaden objective Nature of aid: Not necessarily catalytic Indicators: not just macro, but also micro Aid aligned to country type Aid should be demand driven and not lead to distortions: Not conditional Form of assistance should match need Aid to NGOs subject to caveats Quantity of aid: avoid dependency Balanced aid: poor and other sectors Donors need to take partnership seriously Development and Development Cooperation

12. Linking climate change to other issues

13. Formal divisions in Convention that both recognizes differences and fosters differences Structural differences: In emission levels between average Northern and average Southern country especially in the past – and this is the most serious determining factor for climate impacts until 2050. If emission levels are to be kept within safe levels – the world budget for the 21st century is over by 2032. Impacts more severe in the South – both location wise; and because vulnerability is the greatest. Climate change: Classical North-South issue

14. Leadership paradigm Conditional leadership N CEITS JSCaNZ N S EU S US Pollution Leadership sans US S Development Climate change: The North-South deal EU US S Inverted U-curve may be a zig-zag curve Leadership competition US N mainstreams cc help in development cooperation N helps S via CDM

15. 1992: North reduces emissions and helps developing countries (tech transfer and aid) with new and additional resources (above existing aid) 1997: North reduces emissions partly via help to developing countries (new and additional?) 1997: Adaptation funding comes from a tax on North-South cooperation 2007: North reduces emissions partly via help and climate change is mainstreamed in ODA The context of the North-South deal

16. CDM and ODA Ideological level Organization level • ODA • subsidizes • market mech. • ODA levels • below 0.7%; • + ODA helps • cap. building • esp. in poorest • countries; • ODA diverted • from DC • priorities to • help IC • purchases Project level • + ODA leverages • SD; synergy • ODA diverted

17. An illusion When SD is dependent on host country approval and there is competition between host countries; When contract success is not based on achievement of the SD component; When SD component is not verified: When IC buy CERs without checking SD component; When SD component is vague and all-encompassing CDM and SD: An Illusion?

18. 1990s Abstract Global Future issue Economic and technical issue Climate Change Regime: Paradigm Shift

19. Development 2002: Donor report 2005: Gleneagles plan 2005: EU 2006: World Bank- CEIDF 2007: OECD Declaration Policy evolution towards mainstreaming

20. Mainstreaming: Driving Converging Forces Aid agencies EU Devp. Banks DCs Mainstreaming CC In devp. coop Acade mics OECD NGOs UNDAF

21. “Mainstreaming of climate change into development cooperation is the process by which existing development processes are redesigned and reorganized, improved, developed and evaluated from the perspective of climate change mitigation and adaptation. Mainstreaming implies involving all social actors – government, civil society, industry, local communities - into the process. Mainstreaming calls for changes in policy as far upstream as possible.” Mainstreaming defined

22. From Ad hoc approaches to mainstreaming Politically Easy Difficult ---------------------------------------------------- Climate change ignored Development agenda Climate change taken into account Climate change taken into account Ad hoc projects Focus on win win Climate proofing Inte-gration Main-streaming Ad hoc -------------------------------------------------- full From ad approaches to mainstreaming

23. International cooperation is needed to help developing countries: Adopt modern technologies and policies to avoid taking the past emission route of the North; Adopt measures that will enhance the ability of the South to adapt to the impacts of climate change International cooperation includes: Climate cooperation Development cooperation Climate change and international cooperation

24. Efficiency of use of development resources enhanced since climate change affects development and development affects climate change There is aid fatigue and no extra money is politically very feasible Money is clearly needed for climate change and it is more easily justified to spend developed countries on climate change than on development per se Transaction costs lower if mainstreamed Practical arguments in favour of mainstreaming cc in aid

25. The link between development paradigms and development aid

26. 1 1 2 3 The link between development paradigms and development aid

27. Resources needed

28. Development cooperation Climate assistance 1.0% of GNI Time 0.7% of GNI Actual assistance Expectations/ needs Actual climate assistance Mainstreaming Political sensitivities

29. Rich Poor Development cooperation Climate Mitigation Climate Adaptation Diverging beneficiaries of assistance

30. Mainstreaming: the stages of mainstreaming Politically Easy Difficult ---------------------------------------------------- Climate change ignored PL IT DK, NL UK Development agenda US aid OECD EU Climate change taken into account Climate change taken into account Ad hoc projects Focus on win win Climate proofing Inte-gration Main-streaming Ad hoc -------------------------------------------------- full The stages of mainstreaming

31. Mainstreaming of climate change in development cooperation does not make sense; it will lead to a diversion of resources. However, mainstreaming of climate change in development does make sense! Instead, a search for win win options, climate proofing and climate integration make more sense in relation to development cooperation. This is not the case for development. Conclusion - 1

32. Conclusion – 2: If Mainstreaming is inevitable ….