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Development & Climate Change
National CC Committee retreat
Koforidua, Sept 2009
Sean Doolan
Ghana big picture?
Sub-national
National
Sub-regional
Regional
Global
Community
Household
African Group & negot’ns
Adapt Fund Board
REDD
Forest Carbon Facility
Disaster risk reduction
UNDP – GEF
Africa Adapt’n Prog
Economics Adapt’n to CC
UNFCCC NEEDS study
Carbon finance
Gas flaring
Civil society dialogue
CC Adapt’n Africa fellowship
CARE Adapt’n Learning
Climate change strategies & responses
Opportunity for comprehensive response
– Common funding mechanisms & dialogue
Governance
– Who is involved
– National & sector levels
– Institutional mechanisms
– How climate strategies are crafted – what
content?
– Facilitate bottom-up action
Climate engagement & stakeholders
Multiple stakeholders
– MDAs, MoFEP, NDPC, Presidency
– Different GoG-DP sector groups
– Civil society, academia, private sector, Parliament
Climate change strategies - MoFEP
Attracting the attention of politicians on CC
 Awareness creation of both executive & legislature
 Identify champions on CC & encourage high involvement
 Use preliminary costs and opportunities on climate
change (in terms of GDP & numbers affected)
 Make a case for attention of policy makers – frame in
terms of sector interests & priorities
Climate change strategies - MoFEP
 Long-term national development plan & medium term
sectoral plans - opportunity to include CC issues
 Need to use country PFM systems & processes -
strengthening of PFM for more effective & efficient delivery
 Use of Budget Support (General or Sector) as a preferred
mechanism to project support
 Currently personal emoluments (PE) a significant % of
MDA expenditure - climate funding has potential to
change mix for better service delivery
Climate change strategies - MoFEP
 ENR Council, once operational, a good start for
mainstreaming
 Need clearly defined roles for participating institutions in
coordination & implementation to ensure effective
delivery
 Country ownership should be emphasized, with donors
partnering in facilitation role, esp. on capacity building
 Need adequate capacity at levels of individual,
organizational, & the enabling environment
Need numbers, tools & approaches
 Economics (what value, costs?)
 What tools?
 Towards wider “programmatic approach”?
 Financing mechanism (how much?)
 What instruments to fund?
 National planning & responses?
 Interest in carbon markets
– need informed ability to engage
 Allocations & trade-offs across sectors
Source: GTZ IIPAC study on crop insurance
Response to climate change must be
rooted in development
Development
Mitigation Adaptation
‘Climate-
compatible
development’
‘Climate-
proofed
abatement’
‘Climate-
resilient
development’
… aligned with
adaptation
… & mitigation
objectives
0
2
4
6
8
10
12
2020 2040 2060 2080 2100
%ofGDP
Baseline
With adaptation
0.8%
1.7%
3.4%
6.1%
9.6%
25.6%
15.6%
4.1%
1.9%
8.2%
0.5%
1.1%
2.2%
4.1%
6.6%
18.2%
2.7%
5.2%
11.2%
Source: Chris Hope for the DFID study.
Africa scenario A2 'Stern' assumptions, with & without adaptation. The graph shows mean, upper line 95% value.
Adaptation costs - Africa
 Losses could be 1.5 – 3% GDP equiv. by 2030, & 10% by 2100
 Adaptation can reduce these costs but not remove them
Adaptation & development continuum
Vulnerability Impacts
Focus
Addressing the
Drivers of
Vulnerability
e.g. health, education,
women’s rights,
accountability.
Building
Response
Capacity
e.g. communications &
planning processes,
weather monitoring, &
NRM
Climate Risk
Management
e.g. disaster
management, drought-
resistant crops, “climate-
proofing” infrastructure.
Confronting
Climate Change
typically risks outside
historic climate variability,
e.g. tackling sea level rise
ODA UNFCCC
International funding
Uncertainty, lack of awareness Risk
Knowledge of climate change
Approach
Discrete AdaptationClimate resilient development
Tanner & Mitchell, 2008; from McGray et al 2007
South Africa’s vision on climate change
Source: Dept of Environment & Tourism, South Africa
1. Transition to climate resilient & low-carbon economy
2. Our climate response policy, built on six pillars, will be
informed by what is required by science – to limit global
temperature increase to 2°C above pre-industrial levels
3. Continue to pro-actively build the knowledge base & our
capacity to adapt to inevitable impacts of climate change
4. GHG emissions must peak, plateau & decline - stop
growing at the latest by 2020-2025, stabilise for up to ten
years, then decline in absolute terms
5. Long term: redefine our competitive advantage &
structurally transform the economy by shifting from an
energy-intensive to a climate-friendly path as part of a
pro-growth, pro-development & pro-jobs strategy
Climate Compatible Growth Plans
identify & support mitigation & adaptation
Differentiation:
Both developing +
developed
Process: Support,
best practices,
review, MRV
Content: Priorities,
policies/measures &
international support
Focus:
Development,
mitigation +
adaptation
CCGP
(=climate
compatible
growth plans)
Time horizon: Long
& short term
Content of an effective CCGP
•Assists a country to achieve its growth & development
objectives in a low-carbon way through appropriate
mitigation & adaptation actions
•Both long-term vision & short-term strategy/action plans
•Coordinates action across sectors, link national policies
•Ambitious on emission reduction opportunities & capability
•Spells out requirements for domestic & international
resources in terms of funding, technology transfer &
capacity building wherever required, & clearly specifies the
nature of international assistance needed
Source: Interviews; Project Catalyst analysis
Process of an effective CCGP
Source: Interviews; Project Catalyst analysis
Content
•Developed through involvement of multiple stakeholders,
public, private & social sector, & through public debate
•Based on country sector skews, needs & capabilities
•Integrated into other policy documents & overall economic &
development objectives
•Allows for iterations, learning & refinement over time
•Ensures consistency between overall national plan &
individual actions
•Mandate & ownership directly from country leadership
Defining
NAMA
Assigning
metrics
Registering
In-country
measurement
Reporting
Verification
process for
reports
Domestic/
international
Process/
consequences
for non-
delivery
Stages of the Measurable Reportable &
Verifiable process (MRV)
NAMA – Nationally Appropriate Mitigation Action
(i) Oversight (CoP); (ii) Registry of plans; (iii) Review of plans (transparency/ technical assessment); (iv)
Oversight of crediting; (v) Standard setting; (vi) Promotion of technology transfer; (vii) Facilitation of
capacity-building; (viii) Dispute resolution
All three models would have a set of
common features
Offset market
NAMA /NAPA/
CCGP
Programme /
Sectoral basis
Funds
Allocation/aggregation
mechanisms
Market
(AAU & ETS)
Public finance
Coordination/oversight
Intermediaries
Sources of funding Delivery
All models will need to be
financed through a combination
of developed country markets &
public finance
• All models will require recipient countries to develop plans
for abatement (NAMA/NAPA/CCGP)
• All models would shift funding towards programmatic /
sectoral basis given limitations of project based approaches
(transaction costs / inability to scale up)
Project-based
CDM limited to
LDCs under all
models
These coordination/ oversight functions
will be common across all models
UK proposal: ‘compact’ approach
Delivery of climate finance at scale,
in support of country-owned,
low-carbon,
climate-resilient development plans,
direct to national budgets
where fiduciary risk allows.
The UK PM’s climate financing package
 $100bn each year for climate finance by 2020
 Expand & enhance reformed carbon market to deliver
significant % of this
 An “automatic” mechanism –Norwegian proposal or
comparable domestic legislation
 Climate finance additional to existing ODA commitments
 Cap use of ODA for climate-development activities
– up to 10% by UK
 New institutional arrangements for delivery
UK proposal for a compact approach
International level: Country allocations e.g. adaptation,
mitigation, based on need. MRV (action & support).
Review of national plans as appropriate
National level: Governments (with stakeholders) develop
national climate-resilient, low-carbon plans, including
MRV frameworks.
Delivery of finance: Directly into national budgets where
fiduciary risk allows.
The compact approach
Ghana has experience – NREG sector budget support
Umbrella frameworks for coordination
 Adaptation
 Low carbon development
 Institutions & capacity
 Knowledge & research
 Voice
 Financing mechanisms
NDPC
Public
Big picture 2?
Health
Private Civil society
Finance &
Economic
Planning
Environment,
Science &
Technology
Nat CC
committee
ENR Council
Technical officials,
civil society
Ministers, VP
Energy
Forestry
EPA

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Ghana Nat CC committee retreat - development & CC overview2 pics

  • 1. Development & Climate Change National CC Committee retreat Koforidua, Sept 2009 Sean Doolan
  • 2. Ghana big picture? Sub-national National Sub-regional Regional Global Community Household African Group & negot’ns Adapt Fund Board REDD Forest Carbon Facility Disaster risk reduction UNDP – GEF Africa Adapt’n Prog Economics Adapt’n to CC UNFCCC NEEDS study Carbon finance Gas flaring Civil society dialogue CC Adapt’n Africa fellowship CARE Adapt’n Learning
  • 3. Climate change strategies & responses Opportunity for comprehensive response – Common funding mechanisms & dialogue Governance – Who is involved – National & sector levels – Institutional mechanisms – How climate strategies are crafted – what content? – Facilitate bottom-up action
  • 4. Climate engagement & stakeholders Multiple stakeholders – MDAs, MoFEP, NDPC, Presidency – Different GoG-DP sector groups – Civil society, academia, private sector, Parliament
  • 5. Climate change strategies - MoFEP Attracting the attention of politicians on CC  Awareness creation of both executive & legislature  Identify champions on CC & encourage high involvement  Use preliminary costs and opportunities on climate change (in terms of GDP & numbers affected)  Make a case for attention of policy makers – frame in terms of sector interests & priorities
  • 6. Climate change strategies - MoFEP  Long-term national development plan & medium term sectoral plans - opportunity to include CC issues  Need to use country PFM systems & processes - strengthening of PFM for more effective & efficient delivery  Use of Budget Support (General or Sector) as a preferred mechanism to project support  Currently personal emoluments (PE) a significant % of MDA expenditure - climate funding has potential to change mix for better service delivery
  • 7. Climate change strategies - MoFEP  ENR Council, once operational, a good start for mainstreaming  Need clearly defined roles for participating institutions in coordination & implementation to ensure effective delivery  Country ownership should be emphasized, with donors partnering in facilitation role, esp. on capacity building  Need adequate capacity at levels of individual, organizational, & the enabling environment
  • 8. Need numbers, tools & approaches  Economics (what value, costs?)  What tools?  Towards wider “programmatic approach”?  Financing mechanism (how much?)  What instruments to fund?  National planning & responses?  Interest in carbon markets – need informed ability to engage  Allocations & trade-offs across sectors Source: GTZ IIPAC study on crop insurance
  • 9. Response to climate change must be rooted in development Development Mitigation Adaptation ‘Climate- compatible development’ ‘Climate- proofed abatement’ ‘Climate- resilient development’ … aligned with adaptation … & mitigation objectives
  • 10. 0 2 4 6 8 10 12 2020 2040 2060 2080 2100 %ofGDP Baseline With adaptation 0.8% 1.7% 3.4% 6.1% 9.6% 25.6% 15.6% 4.1% 1.9% 8.2% 0.5% 1.1% 2.2% 4.1% 6.6% 18.2% 2.7% 5.2% 11.2% Source: Chris Hope for the DFID study. Africa scenario A2 'Stern' assumptions, with & without adaptation. The graph shows mean, upper line 95% value. Adaptation costs - Africa  Losses could be 1.5 – 3% GDP equiv. by 2030, & 10% by 2100  Adaptation can reduce these costs but not remove them
  • 11. Adaptation & development continuum Vulnerability Impacts Focus Addressing the Drivers of Vulnerability e.g. health, education, women’s rights, accountability. Building Response Capacity e.g. communications & planning processes, weather monitoring, & NRM Climate Risk Management e.g. disaster management, drought- resistant crops, “climate- proofing” infrastructure. Confronting Climate Change typically risks outside historic climate variability, e.g. tackling sea level rise ODA UNFCCC International funding Uncertainty, lack of awareness Risk Knowledge of climate change Approach Discrete AdaptationClimate resilient development Tanner & Mitchell, 2008; from McGray et al 2007
  • 12. South Africa’s vision on climate change Source: Dept of Environment & Tourism, South Africa 1. Transition to climate resilient & low-carbon economy 2. Our climate response policy, built on six pillars, will be informed by what is required by science – to limit global temperature increase to 2°C above pre-industrial levels 3. Continue to pro-actively build the knowledge base & our capacity to adapt to inevitable impacts of climate change 4. GHG emissions must peak, plateau & decline - stop growing at the latest by 2020-2025, stabilise for up to ten years, then decline in absolute terms 5. Long term: redefine our competitive advantage & structurally transform the economy by shifting from an energy-intensive to a climate-friendly path as part of a pro-growth, pro-development & pro-jobs strategy
  • 13. Climate Compatible Growth Plans identify & support mitigation & adaptation Differentiation: Both developing + developed Process: Support, best practices, review, MRV Content: Priorities, policies/measures & international support Focus: Development, mitigation + adaptation CCGP (=climate compatible growth plans) Time horizon: Long & short term
  • 14. Content of an effective CCGP •Assists a country to achieve its growth & development objectives in a low-carbon way through appropriate mitigation & adaptation actions •Both long-term vision & short-term strategy/action plans •Coordinates action across sectors, link national policies •Ambitious on emission reduction opportunities & capability •Spells out requirements for domestic & international resources in terms of funding, technology transfer & capacity building wherever required, & clearly specifies the nature of international assistance needed Source: Interviews; Project Catalyst analysis
  • 15. Process of an effective CCGP Source: Interviews; Project Catalyst analysis Content •Developed through involvement of multiple stakeholders, public, private & social sector, & through public debate •Based on country sector skews, needs & capabilities •Integrated into other policy documents & overall economic & development objectives •Allows for iterations, learning & refinement over time •Ensures consistency between overall national plan & individual actions •Mandate & ownership directly from country leadership
  • 17. (i) Oversight (CoP); (ii) Registry of plans; (iii) Review of plans (transparency/ technical assessment); (iv) Oversight of crediting; (v) Standard setting; (vi) Promotion of technology transfer; (vii) Facilitation of capacity-building; (viii) Dispute resolution All three models would have a set of common features Offset market NAMA /NAPA/ CCGP Programme / Sectoral basis Funds Allocation/aggregation mechanisms Market (AAU & ETS) Public finance Coordination/oversight Intermediaries Sources of funding Delivery All models will need to be financed through a combination of developed country markets & public finance • All models will require recipient countries to develop plans for abatement (NAMA/NAPA/CCGP) • All models would shift funding towards programmatic / sectoral basis given limitations of project based approaches (transaction costs / inability to scale up) Project-based CDM limited to LDCs under all models These coordination/ oversight functions will be common across all models
  • 18. UK proposal: ‘compact’ approach Delivery of climate finance at scale, in support of country-owned, low-carbon, climate-resilient development plans, direct to national budgets where fiduciary risk allows.
  • 19. The UK PM’s climate financing package  $100bn each year for climate finance by 2020  Expand & enhance reformed carbon market to deliver significant % of this  An “automatic” mechanism –Norwegian proposal or comparable domestic legislation  Climate finance additional to existing ODA commitments  Cap use of ODA for climate-development activities – up to 10% by UK  New institutional arrangements for delivery
  • 20. UK proposal for a compact approach International level: Country allocations e.g. adaptation, mitigation, based on need. MRV (action & support). Review of national plans as appropriate National level: Governments (with stakeholders) develop national climate-resilient, low-carbon plans, including MRV frameworks. Delivery of finance: Directly into national budgets where fiduciary risk allows.
  • 21. The compact approach Ghana has experience – NREG sector budget support Umbrella frameworks for coordination  Adaptation  Low carbon development  Institutions & capacity  Knowledge & research  Voice  Financing mechanisms
  • 22. NDPC Public Big picture 2? Health Private Civil society Finance & Economic Planning Environment, Science & Technology Nat CC committee ENR Council Technical officials, civil society Ministers, VP Energy Forestry EPA