Climate finance pauw (die)private sector adaptation&role ccxg gf march2014

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DIE Presentation made during OECD/IEA CCXG Global Forum March 2014: Replicating and scaling up interventions and the role of the private sector

DIE Presentation made during OECD/IEA CCXG Global Forum March 2014: Replicating and scaling up interventions and the role of the private sector

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  • 1. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Replicating and scaling up adaptation interventions - and the role of the private sector Pieter Pauw 19 March 2014
  • 2. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Introduction 1. Challenges in scaling up and replicating adaptation interventions 2. Role of the private sector 2 Vayring contexts and scopes  Based on: 1. Report (2): AdapCC & Rainfall index insurance in India 2. Additional (3): Mobile Weather Alert project, SPACC, Sangana PPP 3. Previous and current work on LDCs, Zambia, NWP PSI, ...
  • 3. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Interest of private sector in adaptation 3 Reducing risks Adapt to direct and indirect risks to stay in business or maintain level of profit under changing climatic conditions Business opportunities •market for new and innovative products, needed under DRR or changing climate conditions •publicly funded adaptation projects increasing  Private sector has a key role in adaptation including in developing countries...  Visible level of clearly identifiable adaptation activities and investments may understate the actual activity level (Agrawala et al., 2011) Based on Pauw & Pegels, 2013 Private sector‘s appetite for adaptation/motivation to adapt
  • 4. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Interest of private sector in adaptation (II) 4 ....but what is the private sector’s role in financing adaptation?  To large extent a political debate:  ‘Most businesses probably do not mind whether an activity can be labelled adaptation or not – what counts is business continuity’ (Pauw & Pegels, 2013)
  • 5. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Research challenges  Specific challenges in research : – Few cases could be identified in developing countries  even though adaptation happens in every sector – Actual adaptation benefits of interventions not always clear – Diverse but incomplete project documentation (for our purposes)  2-5 case studies: no conclusive analysis, but first insights in replicating and scaling up of adaptation 5
  • 6. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Analysed projects Project Partners Aim AdapCC Cafédirect, GTZ support small-scale coffee and tea farmers in identifying adaptation strategies and implementing adaptation activities Reducing Farmers’ Exposure to Weather Risk ICICI Lombard, BASIX, WB sale of innovative rainfall index insurance contracts to small farmers SPACC CCCCC, WB, GEF, Coconut Bay Beach Resort and Spa Water m’ment: rainwater harvesting and wastewater reuse in luxury resort on St Lucia Mobile Weather Alert project Ericsson, MTN, Uganda Met Service, WMO, Met Office weather information provision to improve dissemination of storm warnings Sangana PPP GIZ, Comic Relief, Sangana Commodities Ltd, Tchibo GmbH, WB Develop additional, voluntary climate component to ‘4C Code of Conduct for sustainable coffee’; train coffee producer organisations 6
  • 7. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Aspects of up-scaling and replication  Aspects are interrelated  Enabling environment: broader than public policies 7
  • 8. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) 1. Institutional framework  PS adaptation finance as a topic is new – Climate finance institutions struggling to bring private sector on board (e.g. PPCR in Zambia) – NAPAs hardly include private sector (Pauw & Pegels, 2013);  Too few and too different case studies to be conclusive on decision-making frameworks or actor constellations  Adaptation just one of the aims of the interventions 8
  • 9. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) 2. Demonstrating successful interventions  Self-sustaining  Tools: CC projections, Risk and Opportunity Analysis (GIZ/Cafédirect); Environmental Management Plan (SPACC); Certification (for sustainable coffee), guidebooks (Sangana PPP), workshops, ...  Mid-term & ex-post evaluations: project (e.g. GIZ, WB), scientific evaluation (e.g. MetOffice), continuous feedback (e.g. farmers, fishermen),  But how to target and measure adaptation benefits? – SPACC reduced water use; EMP measured neither CC impacts nor adaptation effects – Other projects deal with weather risks (rather than..?) 9
  • 10. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) 3. Enhance enabling environment  Projects themselves raise awareness; ‚thinking from a risk perspective‘  Incorporate public actors in project implementation  Identify tools as well as actors (e.g. public sector, producer network, devt cooperation)  Demonstrate success (tools and evaluation) to public and private sources of finance, (national) government, etc.  Financing for replication/up-scaling of adaptation is a big challenge (e.g. Sangana PPP, SPACC) 10
  • 11. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Conclusion (I)  Study comes (a bit too) early for adaptation (case specific information vs generic lessons)  Information base: no standard procedure for M&E; difficult to target and measure adaptation benefits – Trade-offs between efficiency and safeguards – But tools and evaluations useful for up-scaling and replication  Building partnerships TEAM PLAY is key for replication and up-scaling 11
  • 12. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) Conclusion (II)  adaptation is always case specific and requires tailor-made interventions on a local scale – yet scaling up and replication more likely if • intervention designs fit in a broader programme or policy framework • Simple eligibility criteria • Standardise formats where possible  Weather risk vs climate change – adaptation as a side-benefit?  Unclear whether these projects contribute to reaching the USD 100 billion climate finance p.a. 12
  • 13. © 2012 Deutsches Institut für Entwicklungspolitik (DIE) 13 Thank you for your attention Pieter Pauw German Development Institute Tulpenfeld 6 / 53113 Bonn Tel: +49 (0)228-949 27-204 Email: Pieter.Pauw@die-gdi.de Website: www.die-gdi.de / www.pieterpauw.eu