2016 GGSD Forum - Parellel Session A: Presentation by Ms. Lola Vallejo. Policy Analyst, Environment Directorate, OECD
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Global infrastructure investments need USD 90 trillion by 2030, but climate disruptions threaten resilience. Constructing the Brisbane airport runway 4.1 meters above sea level and Copenhagen's drainage infrastructure exemplify climate-resilient projects. National policies can help by accounting for climate risks in publicly-financed projects using screening tools, contractual requirements, and regulation. While tools are prevalent in development banks, evidence in OECD domestic projects is rare. Standards are led by various organizations but focus is growing on resilience.
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2016 GGSD Forum - Parellel Session A: Presentation by Ms. Lola Vallejo. Policy Analyst, Environment Directorate, OECD
- 1. CLIMATE- RESILIENT INFRASTRUCTURE: GETTING POLICIES RIGHT Lola VALLEJO Analyst– Climate Change Adaptation & Development Environment Directorate, Climate Water and Biodiversity Division 10 November 2016 Green Growth and Sustainable Development Forum OECD Headquarters, Paris
- 2. • Global infrastructure investments needs: USD 90 trillion for 2015-2030 • Climate-related disruptions: – 2012 superstorm Sandy (US): 5.4 million stranded commuters – 2007 summer floods (UK): 350 000 people without access to main water supply for 17 days 2 Making infrastructure climate resilient
- 3. • Construction of second runway at the Brisbane airport in Australia 4.1 meters above sea level • Construction of drainage infrastructure in Copenhagen through a network of permeable roads, greenspaces and waterways • Modifying the maintenance regime of France’s nuclear power plants to face summer heats 3 Examples of climate-resilient infrastructure
- 4. • Research questions – In which ways can governments ensure their infrastructure is climate-resilient? – What’s the current state of adaptation action? • Focusing on national-level action in OECD countries • Building a framework for action 4 Scope
- 5. Overall findings 5 Policy levers How much are they used? Future challenges? Evidence provision High Capacity-building Accounting for climate risks in projects financed by governments Low Transparency Enabling resilience through policy and regulation Med Cost-effectiveness Disclosure of climate risks Low Coordination with financial sphere
- 6. • Screening and decision-support tools – Prevalent in development banks: Multilateral (EBRD, Nordic Investment Bank, ADB, WB), bilateral (JICA, AfD, KfW) – Rare evidence in OECD domestic investment (EU structural funds commitment, EIB) • Contractual arrangements – Belgium’s state and national railway operator (SNCB) management contract – Australian local governments infrastructure plans 6 Accounting for climate risks in projects financed by governments - Procurement/concession framework may be an obstacle… but hard to influence - Several tools developed by those investing in most vulnerable countries
- 7. • Sectoral regulation – Technical e.g. nuclear power in France, hydropower in Switzerland – Economic e.g. UK energy, rail and water sectors • National and international climate-resilient standards – Governance (ISO, UK, USA, Oz) or technical (Eurocodes) – Led by industry (PIANC, CIBSE) or by public standards institutions – Mostly across sectors, but the specific ones focus on transport (particularly road drainage) 7 Enabling resilience through policy and regulation - Growing use of national standards, which can take many shapes
- 8. • Increasing levels of action in OECD countries for resilient infrastructure – Urban areas: right scale for further innovation • Lessons to be learnt on risk screening from investments in developing countries’ infrastructure 8 Remaining questions
Editor's Notes
- Part of the work programme on “Implementing Adaptation in OECD countries”. Builds upon the ideas presented in – and feedback received on - the scoping note circulated after the last WPCID meeting. Aim: guidance on how governments can facilitate climate resilient infrastructure. Evidence sources: survey paper (briefly presented now), expert workshop (this afternoon) and case studies (to discuss with delegates)
- Source for global infrastructure investment needs: (NCE, 2014) These investments will be driven by factors including: the ageing of existing infrastructure, changing demographics, as well as policy objectives such as greenhouse gas mitigation. By building climate resilience into these investment decisions, there is the scope to enhance resilience and avoid the risk of costly retrofitting in future. Sandy: all tunnels connecting Brooklyn and Manhattan were flooded along with other important transportation means including several trains and subway lines. Consequently, weekday riders were stranded without means of transportation (City of New York, 2013). 80% of services restored within a week.
- Examples found while conducting research for the survey. Brisbane: This level exceeds both the minimum level recommended by engineering consultants (3.5 metres) and the current 1-in-100 year storm tide level (2.3metres). In addition, the tidal channels and a new sea wall along the northern boundary of the airport were built, and the taxiways linking the new runway with the apron areas were also designed to withstand a 1–in-100 storm surge event. Australian Government (2013), Australia’s Sixth National Communication on Climate Change- A report under the United Nations Framework Convention on Climate Change. http://unfccc.int/files/national_reports/annex_i_natcom_/application/pdf/aus_nc6.pdf Republic of Poland (2014), 6th National Communications http://unfccc.int/files/national_reports/annex_i_natcom/submitted_natcom/application/pdf/pol_nc6.pdf City of Copenhagen (2012), Cloudburst Management Plan. http://en.klimatilpasning.dk/media/665626/cph_-_cloudburst_management_plan.pdf
- No questionnaire sent. That means that some things might be happening, but they’re not reported upon. Research based on publicly available documents. Mainly OECD countries but some examples from development providers (both national and multilateral).
- All countries have assessed either quantitatively (20) or qualitatively (14) their climate risks to infrastructure, and made localised climate data available. OECD countries have also invested in capacity-building and creating tools to assist infrastructure practitioners. Evidence from multilateral institutions (EIB), and OECD development providers investing in infrastructure in developing countries… But little evidence available for institutions investing domestically. Some literature on effectiveness… mainly in developing countries Use of spatial planning regulations and technical standards in particular (1/3 of OECD countries are revising at least one national technical standard(s) for infrastructure). Less so economic regulation. But little evidence on implementation outcomes and effectiveness. Currently marginal for policy-makers (few reporting schemes in place), but growing interest from investors, and momentum building for industry-led standards on climate risk. But growing interest from investors and insurers
- EUFIWACC: European financing institutions working group on adaptation to climate change (EUFIWACC) are all development institutions, bar EIB. Despite this proactive approach, the integration of climate risk management to traditional project investment procedures has encountered some difficulties. In particular, multilateral development banks have reported difficulties in the implementation of their in-house tools The main challenges have been the integration of these tools into project risk analysis, and providing adequate technical support and training for task managers (AfDB, 2013; IDB, 2014).
- An example of public standard institution is the USA National Institute of Standards and Technology, which set up a “Panel on disaster-resilience standards for buildings and infrastructure”. E.g. Hungary (where EBRD operates) is planning to revise the regulation of construction design and land use from the aspect of climate change. 6 countries are updating their transport standards, including 4 on road drainage (Sweden (2008), Norway (2011), Denmark and Korea (2015)) References can be shared if that’s of interest.
- Our work provides a useful framework for action. It focuses on national-level action, as a start, but urban areas concentrate wealth, vulnerability and regulatory/planning powers to drive resilience. In particular, innovative approaches pioneered for investment in developing countries (e.g. from MDBs like the WB) for investment screening