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Training workshop on Implementing Nationally Determined Contributions (NDC) Commitments in Agriculture

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NEPAD and CCAFS have joined forces, and with support from GIZ they held a training workshop on 10 –12 April 2018 in Nairobi for participants from Kenya, Tanzania, Uganda, and Ethiopia. The participants came from Ministries of agriculture, environment, finance, and planning. The overall aim of the training course was to enhance capacities amongst staff and personnel of the various ministries for successful implementation of the agricultural components of the NDCs.The focus of the training was to create a broader understanding of NDCs with the aim that participants have a better understanding of (a) What has to be done? (b) How it can be done? (c) Where can they find further support? and (d) What are existing tools that can be used?

The training consisted of eight modules delivered over three days. The modules included a presentation, question and answer session, and group activity/discussion. The modules delivered were:
Module 1: Intro to UNFCCC initiatives relevant to agriculture
Module 2: Nationally Determined Contributions (NDCs)
Module 3: Climate Smart Agriculture (CSA) for transformative change
Module 4: Analysis and tools for priority setting in agriculture
Module 5: Climate finance, parts 1 and 2
Module 6: Role of the private sector in NDC development and implementation
Module 7: Monitoring NDC implementation, parts 1 and 2
Module 8: Managing the complexities of multiple planning processes for inclusive national planning

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Training workshop on Implementing Nationally Determined Contributions (NDC) Commitments in Agriculture

  1. 1. Module 1: UNFCCC initiatives on agriculture and the Nationally Determined Contributions (NDCs) Organized by With support from
  2. 2. Objectives Be familiar with the basic background of the UNFCCC Understand the UNFCCC relation to creation of national climate change policies Gain insight into how other policies/strategies relate to mainstreaming climate change concerns into national planning and budgeting Understand the NDC formulation process Be familiar with the NDC reporting requirements
  3. 3. 1988 Establishment of IPCC 1992 Adoption of UNFCCC at the UNCED in Rio 1995 First Conference of Parties (COP1) 1997 Adoption of Kyoto Protocol 2009 No agreement reached for after Kyoto 2015 Adoption of Paris Agreement 2018 (upcoming) First review of Nationally Determined Contributions UNFCCC background
  4. 4. Intergovernmental Panel on Climate Change (IPCC) • Established in 1988 to provide a scientific view on climate change and its potential impacts • Latest report is AR5 (Fifth Assessment Report) • AR6 under preparation for release in 2021- 2022 • In October 2018, Special Report on Global Warming of to be released 1.5°C
  5. 5. UN Framework Convention on Climate Change (UNFCCC) • Established in 1992 at the United Nations Conference on Environment and Development • Outlines how to negotiate international treaties to “prevent dangerous anthropogenic interference with the climate system”
  6. 6. Paris Agreement, 2015 • Signed by 179 countries out of 197 parties in UNFCCC • Limit temperature increase to 1.5°C • Developed countries provide $100 billion each year • Countries submit Nationally Determined Contributions every five years
  7. 7. • Advises COP on science and technology • Meets twice per year since 1995 • In 2011 requested to consider: “issues relating to agriculture” Subsidiary Body for Scientific and Technological Advice (SBSTA)
  8. 8. • Supports the work of the COP • Supporting operationalization of the Paris Agreement by developing NDC procedures • Responsibility for maintaining political momentum and ensuring transparency • Works with SBSTA on cross-cutting issues Subsidiary Body on Implementation (SBI)
  9. 9. • GHG inventory requirements: • by Annex I countries (most developed countries) in annual GHG inventory submissions • By non-Annex I countries (developing countries) in national communications National Greenhouse Gas Inventories
  10. 10. But where is agriculture in all of this? Photo credit: World Bank
  11. 11. History of SBSTA and Agriculture 2011 2012 2013 2014 2015 2016 2017 Requested to consider agriculture 53 submissions with views on agriculture Workshop on agricultural adaptation Call for submissions and workshops Workshops on warning systems and risk Workshops on adaptation and productivity Decision on agriculture
  12. 12. • Koronivia Joint Work on Agriculture (KJWA) • Countries called to submit views on: • Implementation of insights from past workshops • Methods to assess adaptation, co-benefits and resilience • Improved soil carbon and fertility • Improved nutrient management • Improved livestock systems • Socioeconomic and food security dimensions • KJWA should report to the COP in 2020 UNFCCC Decision on Agriculture
  13. 13. • Established in 2010 to facilitate developing countries to: • identify adaptation needs • develop and implement programmes • Through assistance or funds from, e.g.: • Global Environment Facility • Green Climate Fund • NAP Global Support Programme • Agriculture central in many NAPs National Adaptation Plans (NAPs)
  14. 14. • Agreed at COP 18 in Doha • NAMA registry online for plans and available support • Agricultural NAMAs can be a pathway for green growth • NAMAs can be channels for climate financing Nationally Appropriate Mitigation Actions (NAMAs) ILRI/PaulKaraimu
  15. 15. Nationally Determined Contributions (NDCs) • The Paris Agreement requires all Parties to put forward their best efforts through “nationally determined contributions” (NDCs) • These efforts will need to be strengthened in the years ahead • Includes requirements that all Parties report regularly on their emissions and on their implementation efforts
  16. 16. • NDCs will be reviewed every 5 years during the Global Stocktake NDCs, continued
  17. 17. • NDCs allow for: • Scrutiny of actions • Global evaluation of targets • Part of the NDCs can be conditional on: • Provision of financial support • International flexibility mechanisms • Agriculture prominent in NDCs NDCs, continued
  18. 18. Key characteristics of NDCs Ambitious Transparent Equitable Reduction
  19. 19. NDCs submitted From www.climatewatchdata.org
  20. 20. NDCs submitted: Agriculture
  21. 21. NDCs submitted: Adaptation priorities in Agriculture
  22. 22. NDCs submitted: Mitigation targets in Agriculture
  23. 23. • NDCs underline countries’ priorities on agricultural adaptation and mitigation • Vast majority of Parties recognize the significant role of agriculture in supporting a secure sustainable development pathway • Annex 1 Parties focus primarily on mitigation, and non-Annex 1 on adaptation • Social equality, human rights and food security are not receiving high levels of attention in climate change policy either at national or global levels NDCs submitted: Highlights with regards to agriculture
  24. 24. Countries can decide the methods used for setting NDC targets. Some differences between Annex I and non-Annex I countries: Annex I Historical data as a baseline Often detailed by type of GHGs Non- Annex I Lack of historical data Projected BAU emissions Targets and ambitions
  25. 25. Targets and ambitions: Quantification of mitigation targets
  26. 26. Prevalence is on BAU and policy & action targets. Targets and ambitions: Types of targets
  27. 27. IV. Targets and ambitions: Types of targets
  28. 28. Type of target Business as usual Costs of mitigation/ investment needs No (partial) costs mentioned Mitigation focus areas: agriculture Considered Considered: climate- smart agriculture Considered: sustainable agriculture management Mitigation focus areas: land use and forestry Focus area: afforestation, sustainable management of forests Considered: afforestation Considered Reducing non-CO2 gases Considered (CH4, N2O, HFCs, PFCs, SF6) Considered (CH4, N2O) Considered (CH4, N2O, HFCs, PFCs, SF6) Colombia Kenya Vietnam Target Reduction of 20% of GHG emissions relative to projected BAU scenario by 2030 Reduction of 30% GHG emissions by 2030 relative to the BAU scenario Reduction of 8% of GHG emissions by 2030 relative to BAU scenario Targets and ambitions: Some examples
  29. 29. Mitigation targets every 5 years increasing the ambition level Low emissions development strategies Mandatory Voluntary All parties Mitigation • Financial technological and capacity strengthening support (quantitative and qualitative) • Projected levels of public funding • Received support • Progress on training plans, policies, actions and measures to implement the agreement. Mandatory Voluntary Support Developed countries Other countries Voluntary Developing countries Reporting on adaptation is optional The enhanced transparency framework
  30. 30. Paris agreement provides a global framework to reduce climate change impacts, however climate action happens at the national, subnational and local levels. Agriculture is key for both adaptation and mitigation of climate change, especially in developing countries. Funding is needed to achieve targets proposed. Research and technical support is crucial to make a robust and applicable transparency framework in which capacity building is essential. Key messages
  31. 31. The evolving role of agriculture in climate change negotiations: Progress and players Webinar: Synthesis report on the aggregate effect of INDCs NDC Explorer Click on the image to access the document or video Further resources
  32. 32. Module 2: Climate smart agriculture and priority setting for investments Organized by With support from
  33. 33. Introduce the premise of climate-smart agriculture Describe different CSA technology options Provide case-study examples of successful CSA technology options in Africa Discuss technical tools for ex-ante analysis of CSA options in agriculture Learning Objectives
  34. 34. CSA definition • Most common is from FAO: “agriculture that sustainably increases productivity, enhances resilience (adaptation), reduces/removes GHGs (mitigation) where possible, and enhances achievement of national food security and development goals”
  35. 35. The origin of CSA (1/2) • Until late 2000s: Mitigation dominant approach (mainly quantitative approach), but with limited results • … alongside increasing concerns on adaptation from developing countries • Over the years, the UNFCCC negotiation process has led to a major distinction between mitigation and adaptation: two work streams with specific concepts, approaches and methodologies
  36. 36. The origin of CSA (2/2) • Important efforts from the scientific community to highlight synergies between mitigation and adaptation (“triple win”), and bring together work streams and scales • Specificity of the agricultural sectors: • Key interactions, synergies and co-benefits between mitigation, adaptation and food security (UNFCCC work streams and mechanisms have not always enabled such considerations) • “Healing power” of the agriculture sectors: capacity to store carbon (soil carbon storage = soil fertility) • 2010: FAO develops the concept of CSA based on its 3 pillars (productivity / adaptation / mitigation) at the Hague Conference
  37. 37. Why CSA? (1/2) • CSA addresses the relationship between climate change and agriculture • CSA addresses food security, misdistribution and malnutrition • Relationship between agriculture and climate change is a two-way street
  38. 38. • CSA addresses the relationship between agriculture and poverty • 75% of the world’s poor live in rural areas • Agriculture is their most important income source → Agriculture is uniquely placed to propel people out of poverty Why CSA? (2/2)
  39. 39. Source: Papusoi and Faraby 2013 What is CSA? Key characteristics: • Addresses climate change • Integrates multiple goals • Manages trade-offs
  40. 40. • Maintains ecosystem services: CSA adopts a landscape approach to ensure coordinated approaches to land use, planning and management • Multiple entry points at different levels • Not ‘just’ a set of practices and technologies • Also involves information technologies, insurance schemes, value chains, and institution and political enabling environments Additional characteristics of CSA (1/3)
  41. 41. • CSA is context specific Source: Rosenstock and Lamanna 2015 Additional characteristics of CSA (2/3)
  42. 42. • CSA engages women and marginalized groups Source: Mwongera et al. 2015 Prioritization of agricultural practices in Anaka, Northern Uganda by gender and agro-ecological zone Additional characteristics of CSA (3/3)
  43. 43. Actions to achieve CSA Source: FAO (2017), Infographic on Climate- Smart Agriculture. Food and Agriculture Organization of the United Nations, Rome, Italy.
  44. 44. 1. Weather-smart practices 2. Water-smart practices 3. Seed/breed-smart practices 4. Carbon/nutrient-smart practices 5. Institutional/market-smart activities Types of CSA options
  45. 45. Climate information services: • Help to build resilience by enabling farmers to better manage negative impacts of weather- related risks in poor seasons while taking greater advantage of average and better than average seasons 1. Weather smart practices
  46. 46. • Index-based insurance • Uses a weather index, such as rainfall, to determine payouts for clearly defined hazards • Contribution to CSA: • Productivity: allows farmers to take additional risks and invest in improved practices • Adaptation through short-term climate risk management • Adaptation through longer-term risk management • Mitigation 1. Weather smart practices
  47. 47. • Different scales: farm level, irrigation systems or catchment level, and national or river basin level • Under rainfed agriculture: • Water harvesting • Soil management practices for capture and retention • Soil fertility and crop management innovations (Water use efficiency) • Under irrigation: • From the source • Through conveyance and application systems • Through better scheduling and availability of water in the root zone 2. Water smart practices
  48. 48. • CSA contribution: • Productivity: improved growth (in absence of other limitations) • Adaptation through short-term risk management: reduction in the risk of crop water stress and yield loss • Adaptation through longer-term risk management: increase in water availability and greater water use efficiency • Mitigation: opportunities in rice alternate wetting and drying; possible reduced energy consumption for pumping • Decrease women’s and girls’ workload in fetching water and manual irrigation of fields 2. Water smart practices
  49. 49. • Forestry and agroforestry • Productivity: improved production of ecosystem services (food, fibre, fuel, soil quality) • Adaptation: healthy and diverse ecosystems are more resilient to natural hazards • Mitigation: increase in tree cover increases carbon sequestration and biomass above and below ground 3. Nutrient/carbon-smart practices
  50. 50. Soil management practices • Productivity: improvements in soil fertility and soil water availability and reduction of losses through erosion will improve productivity • Adaptation: specific interventions can help reduce risk of run-off during intense rainfall events • Mitigation: improvements in carbon storage, reduction in emissions from excess fertilizer applications Picture from: http://www.geologyin.com/2016/09/relationship-between-soil-color-and.html 3. Nutrient/carbon-smart practices
  51. 51. • Involves strategies to account for the different socio-economic, climatic and soil conditions of an area • Productivity: higher yielding varieties, better crop nutrient management, faster growing livestock • Short-term adaptation: breeding for drought tolerance, shorter duration varieties; breeding for resistance to pests and diseases • Longer-term adaptation: heat and salinity tolerance traits • Mitigation: reductions in emissions from soil and water management and more productive livestock breeds 4. Seed/breed-smart practices
  52. 52. • Policy engagement: appropriate policies and an enabling environment • Institutional arrangements: at all levels and between scales 5. Institutional/market-smart activities • Value chains: bring together relevant stakeholders from different parts of the chain to make decisions in a coordinated way → All activities affect productivity, adaptation and mitigation
  53. 53. Scaling up climate services for agriculture in Senegal • Seasonal and 10 day forecasts tailored for farmers • 40 radio stations trained to understand and communicate climate information • Interactive radio programming • 2 million farmers in Senegal now receiving 10 day forecasts • Farmers changing management practices in response to the information Case studies of successful CSA
  54. 54. Drought-tolerant maize for Africa (DTMA) • DTMA project released 160 drought tolerant maize varieties between 2007 and 2013 in 13 countries Case studies of successful CSA
  55. 55. • What are your examples? • Please share successful CSA stories from your own countries Case studies of successful CSA
  56. 56. Part 2: Priority setting for CSA options
  57. 57. Priority setting for CSA options The importance of the biophysical context Pittelkow et al. 2014 Effect on Maize Yield (%) Conservation Agriculture: no till, global analysis
  58. 58. agement practices depends on location and thus it is spu- rious to compare results of studies between locations in −1.0 −0.5 0.0 0.5 1.0 −1.0 −0.5 0.0 0.5 1.0 Productivity SOC Productivity (Effect size) Resilience(Effectsize) 11% 15% 56% SynergiesTradeoffs Tradeoffs 19% Rosenstock et al. 2016b The importance of considering multiple objectives
  59. 59. agement practices depends on location and thus it is spu- rious to compare results of studies between locations in −1.0 −0.5 0.0 0.5 1.0 −1.0 −0.5 0.0 0.5 1.0 Productivity SOC Productivity (Effect size) Resilience(Effectsize) 11% 15% 56% SynergiesTradeoffs Tradeoffs 19% +Yield -women’s labor +Yield +soil C-Net returns +soil C The importance of considering multiple objectives, specifically Rosenstock et al. 2016b
  60. 60. w er Mean Rainfall resdiw h if of iv icafrt ASE to the conventional practice, (B) of decrease in yields) vs. rew ard der CSA practices identifie by investment over time. Impact on adoption show s the proportion of studies w here farm and household characteristics have a positive (to the right) or negative (to the left)s impact on adoption. Significance show s the number of studies w here that factor had a signific a nt (fill e d bar ) or insi gni f ican t ( open bar) impac t onado ption. FARM & HOUSEHOLD CHARACTERISTIC SIGNIFICANCE 0 20 IMPACT ON ADOPTION -100 0 100 Wealth & Assets Crop insurance Access to electricity Private w ater supply Access to Credit Farm management Importance of livestock Proportion ofha irrigated Farm size Distance farm-HH Family labor Hired labor Household demographics Education Age HHhead HHsize Female household head Farmer is a community leader Income Importance ofcrop revenues in income Crop price index Off-farm income HIGH RISK/HIGH REWARD Returns to land Returns to land Returns to land (iv & w h) (irr) (af & of) 567% 967% 1234% Total studies Signif. studies RosenstockandLamannaCSAX-ray The importance of the social context Adoption of conservation agriculture (no till) in southern Africa – multiple studies
  61. 61. Situation analysis • Indicators & targets to achieve • Agricultural snapshot • Future climate impacts • Ongoing & promising CSA practices • Institutions & policy entry points • Finance mechanism Tools: Climate Smart Profiles
  62. 62. CSA Country Profiles in West Africa • Available in West Africa for Senegal • Under preparation for Niger, Ghana and Mali
  63. 63. • Quantitative-qualitative (National/sub-national level) - Inclusive participatory process for identifying investment portfolios of best-bet CSA options - Evidence-based - Flexible, can move forward under data/resource constraints Tool: The CSA Prioritization Framework (CSA-PF)
  64. 64. • Already used in several WA countries • Future scenarios help address uncertainty about the future and test possible solutions against impact projections • Multi-stakeholder workshops • Future-orientated planning • Backward planning from desired outcomes • Output: “no-regrets” actions that may work under any scenario with appropriate adjustment, as well as scenario-specific options Tool: Stakeholder-led scenarios approach
  65. 65. • Simple adaptation measures such as changes in crop sowing dates and changes in varieties can increase crop yields by an average of 7–15% when compared with no adaptation • The benefits of adaptation vary with crop and with temperature and rainfall changes Tool: Crop, livestock and climate models Challinor et al., 2014
  66. 66. Costs and benefits of policies that contribute to climate adaptation, such as: • Research and extension (e.g., climate forecasts) • Input quality and availability (e.g., improved seeds and fertilizers) • Water availability (e.g., irrigation and water-saving technologies) • Market access and infrastructure (e.g., roads, transport) • Improving value chains (e.g., on-farm storage, value addition) Economic evaluation tools: economics of different policies
  67. 67. Cost of climate change (PV million USD) Country Base case Improved seeds Difference Malawi 981 516 465 (47%) Tanzania 8,567 5,622 2,945 (34%) Bangladesh 221 125 95 (43%) India 13,595 6,626 6,969 (51%) Economics of CSA policies Improved seeds result in a 30% reduction in revenue loss under the most severe climate scenario (5% discount rate) NB Results for Bangladesh and India are not nationally representative Cacho et al. (2016) Compare household incomes now and in the future (present value of the mean cost of climate change, 2020-2050)
  68. 68. Key messages Climate-smart agriculture can help countries meet several of their development goals and NDC commitments Many CSA practices are context-specific and need to be evaluated for each agro- ecosystem where they will be applied. There are many models and prioritization tools that can help evaluate CSA options to know which will provide the best return on investment.
  69. 69. Thank you Questions?
  70. 70. Module 3: Climate Finance for Agriculture Organized by With support from
  71. 71. Broadly outline the issues around climate finance in general Give an overview of potential sources and models of climate finance for agriculture Objectives
  72. 72. Smallholder financing: Needs vs supply Credit provided by informal and formal financial institutions, as well as value chain actors, currently meets an estimated USD 50 billion of the >USD 200 billion needed for smallholder finance in sub-Saharan Africa, Latin America, and South and Southeast Asia.
  73. 73. Source: THE INITIATIVE FOR SMALLHOLDER FINANCE: INFLECTION POINT: Unlocking growth in the era of farmer finance (2016) Gaps in smallholder financing
  74. 74. Recent studies indicate that the global costs of adaptation per annum could range from: ✓US$140 billion to US$300 billion by 2030; and ✓US$280 billion to US$500 billion by 2050 The financing gap for adaptation in agriculture in Africa is estimated at: $20-30 Billion per year by 2030* Source: *Range: UNEP 2014 (+4C – upper bound & +2C scenarios), World Bank 2010 (wet and dry scenarios lower bound); World Bank 2016; UNEP 2016: The Adaptation Gap Finance Report; UNEP, World Bank 2010 Why is climate finance relevant for agriculture?
  75. 75. Private investors could supply as much as $200-$300 billion per year to preserve the world’s ecosystems The food and agriculture sectors represent enormous business opportunities for the implementation of the SDGs: ✓Estimates indicate that a yearly investment of US$ 320 billion by private companies in sustainable business models in food and agriculture could unlock over US$2.3 trillion annually by 2030 ✓These could generate almost 80 million jobs by 2030, with over 90% in developing countries* Source: *UNEP 2018: Land Use Finance; Business and Sustainable Development Commission 2016: Valuing the SDG Prize in Food & Agriculture; Credit Suisse 2014 Why is climate finance relevant for agriculture?
  76. 76. The average annual investment in 2015/2016 was USD 410 Billion, 12% higher than in 2013/2014* Landscape of climate finance Source: CPI 2017: Global Landscape of Climate Finance 2017 140 270 Total Public and Private Climate Finance (US$ bn) Public Private 79% 21% Sources of Climate Finance Domestic International 1 22 382 5 Uses of Climate Finance (US$ bn) REDD Adaptation Mitigation Dual benef
  77. 77. The estimated finance for land use mitigation and adaptation in 2012/2013 was US$ 5,825 Million 2,322 3,126 359 19 Sources and Intermediaries (US$ bn) Gov. Budget DFIs Climate Funds Comm. FIs Source: Climate Focus, EU REDD Facility and CPI: Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation Landscape of climate finance for land use
  78. 78. Source: Climate Focus, EU REDD Facility and CPI: Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation 2,922 964 902 16 1,022 Instruments (US$ bn) Grant/Bud.Exp. Low-Cost Debt Mark. Rate Debt Equity Unknown Landscape of climate finance for land use
  79. 79. Source: Climate Focus, EU REDD Facility and CPI: Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation 1,863 3,020 943 Uses (US$ bn) Adaptation Mitigation Mult. Object. Landscape of climate finance for land use
  80. 80. Source: Climate Focus, EU REDD Facility and CPI: Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation 1,047 3,579 1,200 Purposes (US$ bn) Agriculture Unknown/Multiple Forests Landscape of climate finance for land use
  81. 81. Public Sources: • Domestic government budgets • State owned enterprises and investment vehicles • National development banks • Bilateral donors • Development finance institutions • International financial institutions • Climate funds (national and multilateral) • UN organizations Climate finance architecture (agriculture, forests and fisheries)
  82. 82. Private Sources: • Smallholder farmers and agribusinesses • Corporations • Financial institutions (national and international) • Philanthropic actors • Impact investors • Private equity • Venture capital • High Net Worth Individuals (HNWI) • Institutional investors Climate finance architecture (agriculture, forests and fisheries)
  83. 83. Capital Instruments: • Grants • Budget expenditure/subsidies • Loans (concessional and market rate terms) • Green bonds • Equity • Balance sheet Risk Instruments: • Credit guarantees • Insurance Key climate finance instruments
  84. 84. Enabling Environment • Develop conducive domestic policy, regulatory and support frameworks ▪ Mainstream climate considerations into national policies, budgeting and planning ▪ Fiscal reform (taxes, subsidies, incentives, carbon pricing, etc.) ▪ Policy reform for private sector engagement (technical, institutional and financial barriers) ▪ Develop climate finance strategy at national, sub-national or sectoral level Scope of climate finance (1/5)
  85. 85. • Support implementation of NDCs, NAMAs, NAPs, NAIPs, CSA Investment Plans, • Leverage Capital • Blended Finance (de-risk investments) • Innovative Finance • Develop innovative financial instruments to meet the needs of investors, countries and farmers Scope of climate finance (2/5)
  86. 86. • Climate Financing Mechanisms • Understand climate finance sources to access them more effectively • Develop robust pipeline of climate smart agriculture projects • Risk management mechanisms • Guarantees • Insurance • Big Data • Evidence-based Science • Climate Smart Advisory Services Scope of climate finance (3/5)
  87. 87. • Delivery (reducing transaction costs) • Increase focus on adaptation and resilience of smallholder farmers and SMEs • Link climate finance sources to farmers, specifically through domestic financial institutions and non-bank financial institutions (NBFIs) • Use of Fintech and disruptive technologies (role of digital finance, etc.) • Branchless banking Scope of climate finance (4/5)
  88. 88. • Metrics • Agree on metrics to accurately estimate the amount of climate finance needed • Agree on climate smart metrics to measure performance of investments • Technical assistance to increase investments in agriculture • Build readiness/capacity of recipient countries to understand and attract climate finance • Develop capacity of financial institutions (mainstreaming climate change) • Develop capacity of smallholder farmers and SMEs (borrowers) Scope of climate finance (5/5)
  89. 89. Tracking financial flows • Important to understand how and how much is being spent on national climate change responses • Identify climate-related spending across all relevant finance flows • Needs an agreed definition of climate finance • Track and report all climate-related spending • Develop a central tracking system • Process and analyze data on a regular basis • Expand and improve the MRV for climate finance • Do not need to re-invent the wheel. Look at examples from other countries or frameworks from international organizations
  90. 90. Tracking financial flows • Colombia has built climate finance tracking into its MRV system with an online portal • Over 15,000 climate change actions registered • Total of approx. $6 billion from public sources (domestic and international) from 2011-2015 • Online platform shows aggregated data and project-level information, with filters to select different variables • Lessons for other countries: • Create a definition of climate finance that fits country context but is internationally relevant • Engage with national and international institutions that will provide information for the system and formalize their roles • Leave room for improving the quality of the data Source: WRI 2017
  91. 91. http://mrv.dnp.gov.co/Paginas/inicio.aspx
  92. 92. Key messages Financial needs to meet adaptation goals in Africa are very high. There is financing available to meet the adaptation and mitigation targets; not all of it (or even the majority) is coming from such public institutions as the Green Climate Fund. Governments should think broadly about the sources of climate finance and how best to access and make use of it. Financial flows need to be tracked. Seek out lessons from other countries.
  93. 93. Available resources • Making Climate Finance Work in Agriculture, Discussion Paper: Link • CSA Guide: Link Thank you for your attention
  94. 94. Module 4: Private sector engagement for NDC implementation Organized by With support from
  95. 95. Discuss advantages of engaging the private sector in the development and implementation of NDCs Describe how the access of micro, small, medium and large enterprises to climate finance can be enhanced Objectives
  96. 96. • Public sector sets the NDC, private sector ultimately implements it • Engaging the private sector in the NDC process can spur economic growth by: o Aligning long-term public and private strategies o Promoting technology transfer o Attracting domestic and international investments Illustration of public consultation on climate change in Kenya (Nansen Initiative, 2014) Importance of Private Sector Engagement
  97. 97. • For every USD 1 of official development assistance (ODA) spent in Africa in 2016, there was: USD 2 foreign direct investment USD 10 private sector investment USD 11 government spending Private Sector Investment for Effective NDC Implementation
  98. 98. Private sector actors range from smallholder farmers to large multinational corporations Micro, Small & Medium-Sized Enterprises Large Enterprises Up to 90% of businesses Can be only 10%, but steer economy Dominate in agricultural production Dominate in appliances and energy production High potential gain with climate-smart measures, more difficult to be reached Lower potential gain with climate-smart measures, easier to be reached Can be engaged through local government or sector representatives Can be engaged directly or through national sector representatives Limited access to affordable credit, insurance and other financial services Higher financial literacy and credit capacity Tailored domestic programs required to access funds Capable to access international finance institutions “Private sector” is not a homogenous group
  99. 99. Good practice for engaging with the private sector • Engage the private sector as a means, not an end • Ensure institutions are fit for purpose • Invest in the business-enabling environment • Develop a flexible portfolio of private sector engagement mechanisms • Work with a wide range of stakeholders • See partnership as a relationship, not a contract • Take risks if you want others to do so
  100. 100. • The NDC Partnership is a coalition of countries and institutions accelerating climate and development action • Mali received assistance with the NDC consultation process and investment plan • In 2017, the Green Climate Fund granted Mali USD 22.8 million for early warning systems to improve food security • Several projects with funding in the pipeline (NDCP 2017) For a report on the NDC Partnership in Mali see: https://youtu.be/-zJSy1kXSkI (4.33 minutes, in French with English subtitles) Case Study: Mali designs NDC Investment Plan with the NDC Partnership
  101. 101. • Through F3 Life, small-scale farmers become eligible for loans if they implement climate-smart practices • In Kenya, a micro-creditor with 32,000 clients adopted the system (Juhudi Kilimo) • Climate-smart practices decrease the risk of crop failure and thereby increase the chance that farmers can pay back the loan Case Study: Impact investors use climate-smart credit in Kenya
  102. 102. An example of a Climate Smart Credit Product (http://www.f3-life.com/climate-smart-credit.html) Case Study: Impact Investors use Climate-Smart Credit in Kenya
  103. 103. • An ongoing coordination process should drive progress and decision- making, and ensure accountability • To formulate optimal policies, you must publicly consult the private sector (incl. representatives of smallholder farmers) on common interests and strategies • Private entities might accept policies if they understand them, but they will only endorse them when the policies benefit them Coordinating with the private sector
  104. 104. Case Study: Improving local processing of cashew nut in West Africa • Efforts to create public-private partnerships (PPPs) had mixed success • Introduction of temporary export bans on raw nuts in Ghana to help boost availability of raw cashews for local processing did not succeed • Challenges dues to complexities and high transactions costs of multi-stakeholder involvement Sources: www.value-chains.org/dyn/bds/docs/824/DCED_ACiGhana_July2012.pdf https://read.oecd-ilibrary.org/development/private-sector-engagement-for-sustainable-development_9789264266889-en#page50
  105. 105. Policy options can be ‘hard’ or ‘soft’ ‘Soft’ policy instruments: • Voluntary agreements can be negotiated by public and private sector actors • Subsidies in the form of direct payments, tax reductions or price supports • Research, development, and deployment policies can support and spur technological advancement • Public procurement can be used to encourage and mainstream environmental policies and services • Providing information through workshops or campaigns can increase access to technology and funds Adapted from IPCC (2007) ‘Hard’ policy instruments: • Regulations and standards that specify abatement technologies or energy efficiency requirements, with penalties for noncompliance • Taxes can be charged on each unit of activity by a polluting source, such as a fuel tax, carbon tax or import tax • Requirements for disclosure of information, e.g. labelling programs, emissions reporting programs or certification systems • Emissions trading programs establish an emission limit and allow for the trading of permits
  106. 106. • Result of an extensive consultation process with government, industry, civil society, academia and private sector • To be voted upon in parliament later in 2018 Aims to: • be revenue-neutral for government • allow for smooth transition • introduce clean technologies cost-effectively South African Parliament (Daily Maverick, 2013) ‘Hard’ Case Study: South Africa’s Carbon Tax Bill
  107. 107. • Agreement signed between Ministry of Agriculture and Livestock (MAG) and Ministry of Environment and Energy (MINAE) to reduce emissions • Define emission contribution of agriculture and livestock sector (AFOLU) • A step further than an emission goal: what conditions does the sector need to transform towards a resilient low carbon sector? • Particular interest in involving private sector: High emission agriculture corporations (coffee, livestock, sugarcane, banana, rice) • Future scenarios approach was used to address these needs ‘Soft’ Case Study: Costa Rica’s commitment to comply with NDC
  108. 108. 1. Secure direct access of domestic institutions to climate funds by making sure they fulfil the requirements 2. Build capacity of domestic institutions. International financial institutions and climate funds depend on these to assess local market conditions, lend local currencies and finance small projects. 3. Design and implement a climate finance measurement, reporting and verification (MRV) system to track and report the impact of climate- related spending. 4. Work to de-risk agricultural lending and build capacities of local lenders to understand agricultural credit needs. Helping the private sector access climate finance
  109. 109. Set up to access and combine domestic and international, public and private sources of finance. Four key initiatives selected to promote growth, abate CO2 and attract climate finance: 1. Advanced rural cooking technologies 2. Livestock value chain 3. REDD+ 4. Hydropower Case Study: Ethiopia’s Climate Resilient Green Economy (CRGE) Facility CRGE plan, p. 21, Fed. Dem. Rep. of Ethiopia, 2011
  110. 110. 1. Engaging the private sector in the NDC process can stimulate implementation and spur economic growth 2. Integrate climate action with long-term government policies and priorities 3. Implement policies that guide and drive economic activity (instead of burdening the economy) 4. Secure direct access to climate funds for national institutions 5. Build capacity of national institutions to tender the needs of micro, small and medium-sized enterprises 5 key messages
  111. 111. Thank you for your attention Questions or remarks?
  112. 112. Module 5: Consideration of social aspects for inclusive development Organized by With support from
  113. 113. Explore the social equity considerations when developing NDC implementation plans for the agricultural sector Special attention to examining the political economy, analyzing gender concerns, and involving the youth in implementation Objectives
  114. 114. Thinking beyond technical concerns • NDCs are intended to be pursued in context of other development goals • National priorities • Sustainable Development Goals (SDGs) • Government 5 year plans • How will pursuit of NDCs affect social and economic development goals? • Synergies • Tradeoffs • Predictable knock-on effects
  115. 115. Thinking beyond technical concerns: Cross-scale political economy Equity implications in pursuit of NDCs • When climate finance flows into a country, who will benefit… • Within sectors? • Within value chains? • Within communities? • Within households? • How will the promotion and adoption of CSA practices reshape relationships… • Within sectors? • Within value chains? • Within communities? • Within households?
  116. 116. Thinking beyond technical concerns • Issues of power and control • Who makes decisions? • On what information and authority are they based? • How might CSA interventions shift power? • Usefulness and challenges of participatory processes • Who frames and facilitates the process? • Who gets a voice? • Whose voice is not being heard?
  117. 117. Bottom-up approaches • What are the local adaptation practices and dynamics in which farmers and herders are already engaging? • Consider introducing adaptation options that: • Are well-evaluated • Have been prioritized by local farmers • Address prominent climate risks in the location • Evidence on farmer prioritization can help support informed decisions that are in line with government policies. • Identification and prioritization of CSA technologies helps in designing an investment portfolio across various agro-ecological zones.
  118. 118. Example tool: CSA Rapid Appraisal Mixed method approach, draws on participatory bottom-up, qualitative, and quantitative tools to assess the heterogeneity of local contexts, and prioritize context-specific CSA options. Employs gender-disaggregated methods Assesses within and between district variations in farming systems, management practices, challenges and climate vulnerability to inform CSA targeting. Method: key-informant and farmers interviews, participatory workshops, pairwise ranking matrix, information on farmers constraints • Completed in 2 months • Drove a US$15m investment in Uganda Resource: The CSA-RA manual (Mwongera et al 2017)
  119. 119. Why be concerned about gender in NDCs? • Men and women are affected by and respond to climatic changes in different ways • Technological change (e.g. CSA) can also distribute effects unevenly across social groups • Information should be made available and accessible to men and women, boys and girls, and any potential increase in workload should be minimized. Photo:M.Acosta
  120. 120. Criteria for evaluating whether a gender-responsive approach is used in CSA-sensitive practices 1. The development and application of the practice have been informed by gender analysis 2. All work related to the practice has involved the participation and engagement of men and women, in particular those who implement the practice 3. Efforts are made to reduce the constraints to uptake of the practice 4. The practice results in immediate benefits for men and women 5. The practice results in long-term benefits for men and women Gender concerns
  121. 121. Potential gender considerations of various CSA-sensitive practices Adapted from World Bank, FAO and IFAD, 2015; modified by Nelson & Huyer 2016 Requirements for adoption of practice Relative amount of time until benefits are realized Potential for women to benefit from increased productivity Female and youth labour availability Female access to and control of land Female access to water for agriculture Female access to cash and ability to spend it Gender impact: women’s control of income from practice Conservation agriculture High Low-medium High Low Low High Low Improved home gardens High High High High High Low High
  122. 122. Youth in agriculture • Seems to be a buzzword, or the latest trending topic • BUT, the youth bulge will be around for a while…. Photo: Tamara Kaunda
  123. 123. Youth bulge, history and forecast, per Africa’s regions versus East Asia (Source: IOM and AU, 2018)
  124. 124. Youth in agriculture • Strategies used to engage with the private sector can also help bring in young people to agribusiness • Access to credit a constraint to be overcome • Think beyond agriculture to the whole food system (ag research, equipment manufacturing and sales, ag input supply, processing and value addition, nutrition education, food vendors, a whole range of agri-entrepreneur opportunities)
  125. 125. Key messages Different groups are affected by climate change in different ways. They can also respond and help meet NDC targets through different means. Careful examination of who benefits from climate finance flows is needed to ensure equitable development. Gender analyses should be carried out for all CSA practices to help increase adoption rates. Don’t forget to take the youth into consideration when making NDC implementation plans and providing access to climate finance.
  126. 126. Thank you Questions?
  127. 127. Gender and political economy resources • Gender in climate-smart agriculture: module 18 for gender in agriculture sourcebook (English). • Climate Change & Food Security Vulnerability Assessment Toolkit: https://cgspace.cgiar.org/rest/bitstreams/55087/retrieve • A Gender-responsive Approach to Climate-Smart Agriculture: Evidence and guidance for practitioners • “How-To” Note: Political economy analysis
  128. 128. Module 6: Measurement, reporting and verification (MRV) for mitigation and adaptation Organized by With support from
  129. 129. • Explore how NDCs fit into existing climate change policies and actions (i.e., NAMAs) • Review current UNFCCC requirements and guidance for MRV of GHG emissions, mitigation actions and adaptation efforts • Discuss the Enhanced Transparency Framework to replace the current MRV framework and establish requirements for MRV of NDCs • Examine case studies and examples Objectives
  130. 130. • Many NDCs build upon previous NAMA experiences • NAMAs can support countries in meeting their NDC commitments by: • More concrete measures to achieve targets • Serving as the implementation vehicle for NDCs • NAMAs require MRV systems • NAMAs promote shifts in investment behavior • Private sector a target but often public sector leadership • Should be in-line with national long term development plans Nationally Appropriate Mitigation Actions (NAMAs)
  131. 131. MRV stands for: • Measurement (or estimation) • Reporting • Verification Text in this section is taken from: Wilkes A, Reisinger A, Wollenberg E, van Dijk S. 2017. Measurement, reporting and verification of livestock GHG emissions by developing countries in the UNFCCC: current practices and opportunities for improvement. CCAFS Report No. 17. Wageningen, the Netherlands: CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS) and Global Research Alliance for Agricultural Greenhouse Gases (GRA). What is MRV?
  132. 132. Measurement applies both to efforts to address climate change and to the impacts of these efforts. • National level: GHG emissions, mitigation actions and their effects, and the support needed and received • Can also track non-GHG social, economic and environmental indicators (adaptation) This module will focus on the measurement aspect of MRV UNFCCC guidance on MRV
  133. 133. • Reporting: through the National Communications and Biennial Update Reports (BURs) • Verification: at the international level, through International Consultation and Analysis (ICA) of BURs Reporting and Verification are not the focus of this module UNFCCC guidance on MRV
  134. 134. from FCCC/SBSTA/2006/9 Transparency • Assumptions and methodologies clearly explained Accuracy • Estimates should be neither under- nor over-estimates of true emissions and removals; uncertainties should be reduced as far as practicable Consistency • Same methodologies are used for base and subsequent years; consistent data sets used Comparability • Estimates of emissions and removals should be comparable among countries Completeness • Covers all sources, sinks, and gases; full geographic coverage Principles for credible MRV under the UNFCCC
  135. 135. Current reporting requirements to UNFCCC Annex 1 Parties Non-Annex 1 Parties National Communication every 4 years National Communication every 4 years, with flexibility Biennial Report every 2 years Biennial Update Report, every 2 years, with flexibility National GHG Inventory annually . . . but this will likely change as the MRV framework of the Paris Agreement is further developed
  136. 136. Key messages: • UNFCCC guidance for MRV of emissions is well established • MRV of mitigation actions (such as NAMAs) is a flexible, country-driven process, with currently limited methodological guidance • Guidance and requirements for MRV of NDCs are still under development • The Enhanced Transparency Framework will supersede the current international MRV framework and provide for MRV of NDCs Guidance on MRV
  137. 137. Domestically supported NAMAs Internationally supported NAMAs Private sector actions Development projects with mitigation co- benefits Adaptation actions with mitigation co-benefits NDC targets Measurement system for National Communications and BURs (GHG inventory) Provides a basis for:
  138. 138. • IPCC established methods for estimating GHG inventories • Tier 1 is the “default” method • E.g. for the livestock sector, this only requires population data by animal category and climate region, combined with IPCC default emission factors. Tier 1 versus Tier 2 emissions calculations
  139. 139. • Tier 2 requires data specific to national circumstances • E.g. for the livestock sector need information on animal characteristics, feed baskets and manure management to develop country specific emissions factors. • Need to use Tier 2 to track the impact of sectoral interventions (capture changes in emissions over time) Tier 1 versus Tier 2 emissions calculations Livestock herding in Niger (photo credit: ILRI/Stevie Mann)
  140. 140. • Usually countries establish an emissions trajectory in relation to business as usual (BAU) or the “baseline” • Limited guidance and more work is needed to set comparability of values • For NAMAs baselines include other benefits beyond only GHG emissions • NDCs only focus on GHG emissions • Main challenge for baselines is availability of data • Best if choose priority sectors and improve data over time • Should align with national GHG inventory • Emissions must be estimated with transparent assumptions Source: Guidance for NAMA Design, UNEP DTU Partnership Calculating base year or baseline emissions
  141. 141. Example for livestock in Ethiopia • Calculate 2015 emissions (enteric fermentation and manure management) • For Tier 2 used animal characteristics and feed basket plus management system • Estimate 2030 emissions under BAU • Estimate 2030 emissions with key interventions • E.g. greater offtake of ruminants, increase in poultry, change in feed quality for key systems • Can estimate changes in total emissions and emissions intensities YONAD Business Promotion and Consultancy, Livestock Investment Implementation Plan
  142. 142. Kenya Dairy NAMA • GCF proposal developed • Accredited entity is IFAD • Required several rounds of stakeholder engagement • Line ministries • Private sector • Detailed analysis of • GHG emissions reductions • Economic/ livelihood benefits • Financial and other feasibility
  143. 143. Discussion on MRV progress for mitigation Share examples of: • Alignment of Agriculture Development Goals and Low Emissions (GHG) targets • Coordination between units: Climate Change Directorate, GHG inventory, Line ministries • Data collection and management for MRV • Line ministry staff awareness of NAMAs and NDCs • Capacity to report on NAMA progress, NDC contributions
  144. 144. Why is adaptation MRV important? Investors require tracking of progress • Investors/ donors including climate smart “lens” to agricultural development projects • All require detailed theories of change and results management frameworks, with indicators of impact, e.g. on resilience or adaptive capacity
  145. 145. Adaptation in the NDCs • Like for mitigation, National Adaptation Plans (NAPs) can facilitate implementation of NDC goals • Streamline efforts • Establish coherent governance structures • Access to finance • Identify adaptation- mitigation co-benefits • NDCs are linked to the Enhanced Transparency Framework which requires enhanced reporting on support received for climate action • Global stock take (GST) covers adaptation and mitigation
  146. 146. Country examples: what systems are currently in place for tracking agricultural adaptation? • Nature of climate adaptation (e.g. long timescales for impacts and outcomes) • Multi-dimensional (economic, financial, social) nature of resilience • Multi-scale: need for aggregating information horizontally across climate- sensitive sectors, and vertically across different levels of government • Lack of an “off the shelf” methodology and single metric to assess related outcomes • Difficult to identify, combine and interpret the types and relevant indicators Challenges of adaptation MRV
  147. 147. • Proliferation of initiatives and frameworks • Multiples tools, indicators and reporting requirement that need to be aligned! How to track progress towards adaptation?
  148. 148. Indicator types Implementation Outcomes evaluation (short, medium term) PROCESS - OUTPUT Indicators READINESS - Indicators OUTCOME- IMPACT Indicators Enabling environment
  149. 149. Resilience/adaptation indicators • Strong connection between adaptation and development actions and goals • Post Paris Agreement: Framework and methodology for Tracking Adaptation in Agricultural Sectors & list of Indicators (FAO 2017) • Takes account of ongoing national efforts for reporting to major international mechanisms (including the UN’s SDGs and Sendai Framework for Disaster Risk Reduction)
  150. 150. Key messages MRV for NDCs must encompass a wide range of actions from across sectors; therefore it must be well-coordinated within a country. Shifting from Tier 1 to Tier 2 measurement systems for agriculture and livestock emissions can help give a more accurate quantification. Adaptation MRV is increasingly recognized by the UNFCCC as an important step of the process of adapting to climate change Parties lack a common indicator framework to track progress towards the Paris Agreement Adaptation Goal
  151. 151. Thank you for your attention Questions?

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