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Climate Finance - National Adaptation Plans under the UNFCCC Process - Webinar

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SLYCAN Trust hosted a webinar on December 18 to engage in a discussion on matters pertaining to National Adaptation Plans (NAPs) and the processes under the UNFCCC that mandate the provision of technical and financial support for developing countries for the implementation of NAPs. The discussion also entailed decisions and outcomes of COP23, and how it impacts future processes on adaptation activities under various working groups of the UNFCCC process.

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Climate Finance - National Adaptation Plans under the UNFCCC Process - Webinar

  1. 1. 18 December, 2017, Webinar on NAP under the UNFCCC Process, Slycan Trust Rohini Kohli Lead Technical Specialist – NAP Portfolio UNDP Global Environment Finance Climate finance for the National Adaptation Plans process
  2. 2. Key messages - National Adaptation plans are an instrument to identify and prioritize investment needs for climate change adaptation and reduction of vulnerability in the medium to long term - Access to climate finance both for formulation and implementation of national adaptation plans is required - The scale of adaptation finance needs are unlikely to be met by any single source of finance. Tapping and blending public, private, international and domestic finance will be important to address scaled up adaptation investments - The Green Climate Fund readiness window for NAPs/other adaptation planning instruments is an opportunity for countries to advance their NAPs process. This will support the development of adaptation investment pipelines and financing strategies to be supported by GCF and other international and domestic sources.
  3. 3. What is the NAP process?  The national adaptation plan (NAP) process was established under the Cancun Adaptation Framework (2010).  It enables Parties to formulate and implement national adaptation plans (NAPs) as a means of identifying medium- and long-term adaptation needs and developing and implementing strategies and programmes to address those needs.  It is a continuous, progressive and iterative process which follows country-driven, gender-sensitive, participatory and fully transparent approach. 3 Under the Paris Agreement, the Global Adaptation Goal, Adaptation Communications are key milestones. NAP process is well recognized in Article 7
  4. 4. Objectives The Conference of Parties to the UNFCCC have agreed on the following objectives of the NAP process: • To reduce vulnerability to the impacts of climate change, by building adaptive capacity and resilience; and • To facilitate the integration of climate change adaptation, in a coherent manner, into relevant new and existing policies, programmes and activities; in particular development planning processes and strategies, within all relevant sectors and at different levels, as appropriate. 4
  5. 5. D. Reporting, Monitoring and Review 1. Monitoring the NAP process 2. Reviewing the NAP process to assess progress, effectiveness and gaps 3. Iteratively updating the national adaptation plans 4. Outreach on the NAP process and reporting on progress and effectiveness C. Implementation Strategy 1. Prioritizing climate change adaptation in national planning 2. Developing a (long-term) national adaptation implementation strategy 3. Enhancing capacity for planning and implementing adaptation 4. Promoting coordination and synergy at the regional level and with other multilateral environmental agreements A. Laying the groundwork and addressing gaps 1. Initiating and launching of the NAP process 2. Stocktaking: identifying available information on climate change impacts, vulnerability and adaptation and assessing gaps and needs of the enabling environment for the NAP process 3. Addressing capacity gaps and weaknesses in undertaking the NAP process 4. Comprehensively and iteratively assessing development needs and climate vulnerabilities B. Preparatory Elements 1. Analysing current climate and future climate change scenarios 2. Assessing climate vulnerabilities and identifying adaptation options at the sector, subnational, national and other levels 3. Reviewing and appraising adaptation options 4. Compiling and communicating national adaptation plans 5. Integrating climate change adaptation into national and subnational development and planning
  6. 6. Catalyzing adaptation finance
  7. 7. Slide 7NAP country-level training Sector Example activities Enabling activities Supporting the development of climate change adaptation-specific policies, programs and plans Policy and legislation Strengthening capacities of national institutions responsible for adaptation Agriculture Promoting diversified agricultural production to reduce climate risk Energy Strengthening of energy transmission and distribution infrastructure to cope with the expected impacts of climate change Health Strengthening food safety regulations; developing or enhancing monitoring systems Transport Building protection from climate hazards into existing transport infrastructures (e.g. Disaster Risk Reduction measures) Water and sanitation Monitoring and management of hydrological and meteorological data What needs to be financed in adaptation? 08.01.2018
  8. 8. Analysing impacts of climate over development as usual Agricul ture Water Health Housin g Five-year plan budget outlay is “business as usual” development Additional financing Climate Climate Climate Climate Climate - Identifying development priorities - Prioritizing programmes/projects and capacity building activities to support these activities
  9. 9. Catalyzing Adaptatio n Finance Adaptation Finance is unlikely to be at the scale required without an effort to remove a few key barriers  Need to create conditions that attract finance without compromising development goals and sharing cost burden on end-users.  Multiple stakeholders (investors, end-users, policy makers, supply chains, etc)  Broad spectrum of policies, incentives and support mechanisms to (a) reduce risks (i.e. lower cost of capital) (b) increase rewards (i.e. premium prices, credits, etc) Catalyzing Adaptation Finance
  10. 10. Recipient countries face climate finance challenges despite increased financial flows from public, private, domestic & international sources: Responding to country needs & demand: Emerging lessons from UNDPs readiness support • Lack of national capacities to navigate complex financial landscape to access, manage, deliver, track & report on different forms of finance • Barriers to catalyse private finance to address the climate challenge as public finance alone cannot provide the “clean trillion” necessary to avoid 2°C rise • Limited alignment between climate & development inhibits economy-wide transformation; climate finance must be mainstreamed into business, planning & development policy
  11. 11. Financial Planning • Understand current climate expenditures • Assess needs & priorities, identify barriers to investment • Identify policy mix & sources of financing Accessing Finance •Directly access finance • Blend & combine finance • Formulate project, progamme, sector-wide approaches to access finance Delivering Finance • Implement & execute project, programme, sector-wide approaches • Build local supply of expertise & skills • Coordinate implementation Monitor & Report • Track progress • Monitor & report flows • Performanc e-based payments Elements of Climate Finance Readiness • National systems must be “ready” for climate finance so that countries can access public & private, domestic & international finance • Strengthening planning, access, delivery, and M&E capacities ensures climate finance is available & effective in all countries Elements of Climate Finance Readiness • National systems must be “ready” for climate finance so that countries can access public & private, domestic & international finance • Strengthening planning, access, delivery, and M&E capacities ensures climate finance is available & effective in all countries
  12. 12. A Defining Framework for Medium and Long-Term Climate Change Adaptation Challenge Catalyzing Adaptation Finance Integrated Model “Blended Finance
  13. 13. Capital Market Private Sector Source: UN-MPTF, 2014 Blend FSources Integrated Model “Blended Finance”
  14. 14. GCF perspectives on the impact of adaptation planning Understanding climate impacts and vulnerabilities Designing strategies and actions to address these impacts Achieving ownership and investment by key actors (private/public, sub-national, etc.) Creating adaptation financing strategy (including GCF project pipeline)
  15. 15. Adaptation planning Scope • National adaptation planning (NAPs) • Other adaptation planning processes Modalities • Readiness Programme up to $3M/country • Funding proposals under Adaptation window Governing instrument Paris agreement Board Adaptation planning processes
  16. 16. Key messages - National Adaptation plans are an instrument to identify and prioritize investment needs for climate change adaptation and reduction of vulnerability in the medium to long term - Access to climate finance both for formulation and implementation of national adaptation plans is required - The scale of adaptation finance needs are unlikely to be met by any single source of finance. Tapping and blending public, private, international and domestic finance will be important to address scaled up adaptation investments - The Green Climate Fund readiness window for NAPs/other adaptation planning instruments is an opportunity for countries to advance their NAPs process. This will support the development of adaptation investment pipelines and financing strategies to be supported by GCF and other international and domestic sources.
  17. 17. • Low Emission Capacity Building Programme (LECB)  EC, Germany - BMU/ICI, Australia • National Adaptation Plan Support Programme (with UNEP)  LDCF, SCCF, Govt of Japan (Caribbean and Pacific region)  Integrating Agriculture into NAPs (with FAO)  Germany BMUB • GCF Readiness Programme (with UNEP, WRI)  Germany BMUB • National Communications Support Programme (with UNEP)  GEF • Climate Public Expenditures & Institutional Reviews (CPEIRs)  Canada-SIDA, multiple partners, LDCF, SCCF • Climate Finance Options Platform (with World Bank)  World Bank, UNDP • National Adaptation Programmes of Action (NAPAs)  LDCF UNDP & Partners’ Readiness Initiatives
  18. 18. THANK YOU FOR YOUR ATTENTION ROHINI KOHLI UNDP Lead Technical Specialist, NAP Portfolio Rohini.kohli@undp.org THANK YOU FOR YOUR ATTENTION

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