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Framework for Water Security and Climate Resilient
                 Development

                                Investing in water security
             for climate resilient growth and development


                                       2012 GWPCP meeting
                                                 Stocholm
                                             25 August 2012
The Framework is key for
 Climate Resilient growth
     and development




Helps to identify and put in
 place investments that can
 withstand multiple climate
  scenarios- No/low Regret
         investments
Framework provides:

         Guidance on the development of no/low regrets investments and
         financing strategies for water security and climate resilient
         development and integration into development planning
         processes

            Making best             Short-term        No / low regrets
           use of existing      integration and         investments
           and emerging            longer term         give benefits
           climate funds        mainstreaming          under a range
             for climate            of climate           of climate
              resilient          resilience into         scenarios
            development           development
              priorities             planning




Page 3                                                             © HR Wallingford 2007
3 types of investments

1. climate justified
2. climate risk
3. No/low regrets




                                  © HR Wallingford 2007
3 types of investments
Rate of return on investment




                                                    No/low regret:
                                                    Good rate of return in all
                                                    climate change scenarios

                                                                                           Rate of return acceptable


                                                                                          Rate of return unacceptable


                                                                                                              Modification to
                                                                                                              reduce climate risks


                               Climate change justified:                         Climate change risky:
                                      Poor rate of return                        Good rate of return but
                                  unless climate change                          reduced by the impacts of
                                                  occurs                         climate change


                    No climate change                                                                Severe climate change
                                             Level of climate change impact
Framework for Water Security & Climate
        Resilient Development




                                    © HR Wallingford 2007
PHASE 1




Page 7             © HR Wallingford 2007
The Strategic Framework process – Phase 1
                    Understanding the problem
                          •Making the case for climate resilience – This
                       involves taking an overview of the main climate
                       vulnerabilities, development priorities and existing
                       initiatives
                          •Gaining stakeholder perspectives –
                       Understanding the institutions and individuals
                       who will influence the development of a strategy
                       for climate resilience
                          •Defining information needs – Reviewing
                       existing studies and mapping gaps in the
                       knowledge which must be addressed to make
                       informed decisions.
                    TOOL – Climate impact and vulnerabilities studies ,
                    and information needs




Page 8                                                               © HR Wallingford 2007
The Strategic Framework process – Phase 1


                                      • Commission climate impact and vulnerability mapping
                                        tools
                                             •Literature review of national assessments (e.g. NAPA) and
                                          technical studies (e.g. research institutions, RLBOs)
                                             •Sector wide studies (agriculture, water resources, disaster
                                          risk) using specialist modelling tools
                                            •Community and livelihoods
                                            vulnerability assessments
                                            (e.g. Cristal tool)
                                            •Vulnerability or hazard
                                          TOOL – Climate impact and vulnerabilities studies,
                                            hotspot mapping
                                          and information needs



         Impact of CC on hydropower




Page 9                                                                                             © HR Wallingford 2007
The Strategic Framework process – Phase 1




              OUTPUT
              •Key challenges identified and strong case for climate
              resilience developed
              •Stakeholder partnerships built
              •Review of available information, gaps identified, and
              studies commissioned (where necessary)


Page
                                                                       © HR Wallingford 2007
10
PHASE 2




Page
                 © HR Wallingford 2007
11
The Strategic Framework process – Phase 2


                 •              Identify and appraise options
                         •Identifying options to improve resilience of existing assets,
                       ongoing or planned development activities

                     TOOL – Screening tool for climate risks
                          •Cross sector dialogue to identify new opportunities for no/low
                       regret investments. Building partnerships to drive innovation and
                       manage resources effectively
                          •Building a robust portfolio of no/low regrets priority
                       investments
                     TOOL – Robust Decision Making (RDM)

                          • – Benefit Cost Analysis (BCA), Cost
                     TOOLMaking the economic case for priority options
                     Effectiveness (CE), Multi Criteria Analysis (MCA)




Page
                                                                                    © HR Wallingford 2007
12
The Strategic Framework process – Phase 2


                                           • Screening for climate risks
                                                 •Generic approach can be
                                               applied across sectors and scales
                                                 •Requires simple climate
                                                TOOL – Screening tool for climate risks
                                               change scenarios
                                                 •Risk reduction;

                                                       •reduce uncertainty
       • Examples for screening;                       •do things differently
              •Infrastructure development              •do different things
           (e.g. energy, transport,                    •bear the risks
           agriculture)
              •Water resources policies,
           projects and programmes
              •Urban planning policies and
           regulations


Page
                                                                                          © HR Wallingford 2007
13
The Strategic Framework process – Phase 2

                 Cross sector dialogue to identify new opportunities
                   for no/low regret investments. Building partnerships
                   to drive innovation and manage resources effectively




Page
                                                                   © HR Wallingford 2007
14
The Strategic Framework process – Phase 2


                 • Robust Decision Making (RDM)
                       •Process for making decisions under uncertainty
                        •Uses multiple scenarios of climate and development futures to
                     ‘test’ performance of investment options
                        •No/low regrets investment options prioritised over climate risky
                     investments
                       •Risk reduction measures promoted to deal with residual risks



                     TOOL – Robust Decision Making (RDM)




Page
                                                                            © HR Wallingford 2007
15
The Strategic Framework process – Phase 2


                 • Making the case for priority options
                       •Economic appraisal techniques are key to make the
                     case for investment
                       •Estimating social and environmental costs is also
                     important in ensuring decisions are equitable. An
                     ecosystems approach can highlight ecosystems services.




                   TOOL – Benefit Cost Analysis (BCA), Cost
                   Effectiveness (CE), Multi Criteria Analysis (MCA)




Page
                                                                        © HR Wallingford 2007
16
The Strategic Framework process – Phase 2




                 OUTPUT
                 Balanced portfolio of no/low regret priority
                 investment options and measures for risk reduction
                 to existing assets and planned projects /
                 programmes.
                 Portfolio presents a strongly argued case for options
                 using RDM to test resilience and economic appraisal
                 techniques to ensure viability.




Page
                                                                      © HR Wallingford 2007
17
PHASE 3




Page
                 © HR Wallingford 2007
18
The Strategic Framework process – Phase 3


                 •                                   D
                                                     e
                                                     l
                                                     i
                                                     v
                                                     e
                                                     r
                                                     i
                                                     n
                                                     g

                                                     s
                                                     o
                                                     l
                                                     u
                                                     t
                                                     i
                                                     o
Page
                                                     n
                                           © HR Wallingford 2007
19
The Strategic Framework process – Phase 3
                  • Delivering solutions
                         •Developing financing strategies for priority
                      investment options and bringing financiers together
                      with planners, making use of innovative approaches 3 Ts
                      (Tariffs / Taxes / Transfers)and emerging funding sources

                              •Repayable loans (e.g. WB, AfDB, EIB)
                              •Non-OECD finance
                              •Public Private Partnerships
                              •Finance blending (EU Infrastructure Trust Fund)
                              •Catastrophe risk finance
                              •Specialist climate funds
                                      •Green Climate Fund
                                      •Global Climate Change Alliance
                                      •International Climate Initiative
                                      •Adaptation Fund
                                      •Least Developed Countries Fund
                                      •Special Climate Change Fund
                                      •Millennium Development Goal Fund
                                      •Pilot Programme for Climate Resilience



Page
                                                                         © HR Wallingford 2007
20
The Strategic Framework process – Phase 3




                  OUTPUT
                  Investment strategies integrated into development
                  planning
                  Investment strategies developed for priority options




Page
                                                                  © HR Wallingford 2007
21
PHASE 4




Page
                 © HR Wallingford 2007
22
The Strategic Framework process – Phase 4
                              • Monitoring and moving forward
                                      •Lessons learnt from the Framework process
                                      •What can be upscaled, mainstreamed and repeated?
                                      •Monitoring indicators and processes for measuring
                                   progress towards implementation

                                            •Indicators for Framework implementation (short /
                                         medium term)
                                            •Indicators for implementation outcomes (long
                                         term)
                                            •Expenditure review (CPEIR)


          • Examples of indicators for Framework implementation (IIED, 2011)

          •   number of programmes using climate information in design;
          •   performance of national planning system in conducting adaptation;
          •   proportion of programmes modified in design to become more climate resilient;
          •   number of mechanisms that target climate vulnerable people;
          •   use of a regulation requiring effective screening



Page
                                                                                     © HR Wallingford 2007
23
Advice for Ministers
      5 Policy Briefs
   communication Tools




                         © HR Wallingford 2007
Advice for Ministers
      5 Policy Briefs
   communication Tools




                         © HR Wallingford 2007
© HR Wallingford 2007
© HR Wallingford 2007
© HR Wallingford 2007
© HR Wallingford 2007
© HR Wallingford 2007
Framework for Climate Resilient growth and
               development




                                             © HR Wallingford 2007
FRAMEWORK BEING
     USED



                  © HR Wallingford 2007
At least 33 Ministers and their
representatives witnessed the launch




                                 © HR Wallingford 2007
© HR Wallingford 2007
Water, Climate and Development Programme for
                     Africa

…. aims to integrate
water security and
climate resilience in
development plans in
Africa
23 Countries to benefit in
pilot phase
8 pilot countries
5 pilot basins/aquifer

                                        © HR Wallingford 2007
Thank




       THANK YOU




Page
                    © HR Wallingford 2007
36

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''Framework for water security and water resilient development'' by Alex Simalabwi

  • 1. Framework for Water Security and Climate Resilient Development Investing in water security for climate resilient growth and development 2012 GWPCP meeting Stocholm 25 August 2012
  • 2. The Framework is key for Climate Resilient growth and development Helps to identify and put in place investments that can withstand multiple climate scenarios- No/low Regret investments
  • 3. Framework provides: Guidance on the development of no/low regrets investments and financing strategies for water security and climate resilient development and integration into development planning processes Making best Short-term No / low regrets use of existing integration and investments and emerging longer term give benefits climate funds mainstreaming under a range for climate of climate of climate resilient resilience into scenarios development development priorities planning Page 3 © HR Wallingford 2007
  • 4. 3 types of investments 1. climate justified 2. climate risk 3. No/low regrets © HR Wallingford 2007
  • 5. 3 types of investments Rate of return on investment No/low regret: Good rate of return in all climate change scenarios Rate of return acceptable Rate of return unacceptable Modification to reduce climate risks Climate change justified: Climate change risky: Poor rate of return Good rate of return but unless climate change reduced by the impacts of occurs climate change No climate change Severe climate change Level of climate change impact
  • 6. Framework for Water Security & Climate Resilient Development © HR Wallingford 2007
  • 7. PHASE 1 Page 7 © HR Wallingford 2007
  • 8. The Strategic Framework process – Phase 1 Understanding the problem •Making the case for climate resilience – This involves taking an overview of the main climate vulnerabilities, development priorities and existing initiatives •Gaining stakeholder perspectives – Understanding the institutions and individuals who will influence the development of a strategy for climate resilience •Defining information needs – Reviewing existing studies and mapping gaps in the knowledge which must be addressed to make informed decisions. TOOL – Climate impact and vulnerabilities studies , and information needs Page 8 © HR Wallingford 2007
  • 9. The Strategic Framework process – Phase 1 • Commission climate impact and vulnerability mapping tools •Literature review of national assessments (e.g. NAPA) and technical studies (e.g. research institutions, RLBOs) •Sector wide studies (agriculture, water resources, disaster risk) using specialist modelling tools •Community and livelihoods vulnerability assessments (e.g. Cristal tool) •Vulnerability or hazard TOOL – Climate impact and vulnerabilities studies, hotspot mapping and information needs Impact of CC on hydropower Page 9 © HR Wallingford 2007
  • 10. The Strategic Framework process – Phase 1 OUTPUT •Key challenges identified and strong case for climate resilience developed •Stakeholder partnerships built •Review of available information, gaps identified, and studies commissioned (where necessary) Page © HR Wallingford 2007 10
  • 11. PHASE 2 Page © HR Wallingford 2007 11
  • 12. The Strategic Framework process – Phase 2 • Identify and appraise options •Identifying options to improve resilience of existing assets, ongoing or planned development activities TOOL – Screening tool for climate risks •Cross sector dialogue to identify new opportunities for no/low regret investments. Building partnerships to drive innovation and manage resources effectively •Building a robust portfolio of no/low regrets priority investments TOOL – Robust Decision Making (RDM) • – Benefit Cost Analysis (BCA), Cost TOOLMaking the economic case for priority options Effectiveness (CE), Multi Criteria Analysis (MCA) Page © HR Wallingford 2007 12
  • 13. The Strategic Framework process – Phase 2 • Screening for climate risks •Generic approach can be applied across sectors and scales •Requires simple climate TOOL – Screening tool for climate risks change scenarios •Risk reduction; •reduce uncertainty • Examples for screening; •do things differently •Infrastructure development •do different things (e.g. energy, transport, •bear the risks agriculture) •Water resources policies, projects and programmes •Urban planning policies and regulations Page © HR Wallingford 2007 13
  • 14. The Strategic Framework process – Phase 2 Cross sector dialogue to identify new opportunities for no/low regret investments. Building partnerships to drive innovation and manage resources effectively Page © HR Wallingford 2007 14
  • 15. The Strategic Framework process – Phase 2 • Robust Decision Making (RDM) •Process for making decisions under uncertainty •Uses multiple scenarios of climate and development futures to ‘test’ performance of investment options •No/low regrets investment options prioritised over climate risky investments •Risk reduction measures promoted to deal with residual risks TOOL – Robust Decision Making (RDM) Page © HR Wallingford 2007 15
  • 16. The Strategic Framework process – Phase 2 • Making the case for priority options •Economic appraisal techniques are key to make the case for investment •Estimating social and environmental costs is also important in ensuring decisions are equitable. An ecosystems approach can highlight ecosystems services. TOOL – Benefit Cost Analysis (BCA), Cost Effectiveness (CE), Multi Criteria Analysis (MCA) Page © HR Wallingford 2007 16
  • 17. The Strategic Framework process – Phase 2 OUTPUT Balanced portfolio of no/low regret priority investment options and measures for risk reduction to existing assets and planned projects / programmes. Portfolio presents a strongly argued case for options using RDM to test resilience and economic appraisal techniques to ensure viability. Page © HR Wallingford 2007 17
  • 18. PHASE 3 Page © HR Wallingford 2007 18
  • 19. The Strategic Framework process – Phase 3 • D e l i v e r i n g s o l u t i o Page n © HR Wallingford 2007 19
  • 20. The Strategic Framework process – Phase 3 • Delivering solutions •Developing financing strategies for priority investment options and bringing financiers together with planners, making use of innovative approaches 3 Ts (Tariffs / Taxes / Transfers)and emerging funding sources •Repayable loans (e.g. WB, AfDB, EIB) •Non-OECD finance •Public Private Partnerships •Finance blending (EU Infrastructure Trust Fund) •Catastrophe risk finance •Specialist climate funds •Green Climate Fund •Global Climate Change Alliance •International Climate Initiative •Adaptation Fund •Least Developed Countries Fund •Special Climate Change Fund •Millennium Development Goal Fund •Pilot Programme for Climate Resilience Page © HR Wallingford 2007 20
  • 21. The Strategic Framework process – Phase 3 OUTPUT Investment strategies integrated into development planning Investment strategies developed for priority options Page © HR Wallingford 2007 21
  • 22. PHASE 4 Page © HR Wallingford 2007 22
  • 23. The Strategic Framework process – Phase 4 • Monitoring and moving forward •Lessons learnt from the Framework process •What can be upscaled, mainstreamed and repeated? •Monitoring indicators and processes for measuring progress towards implementation •Indicators for Framework implementation (short / medium term) •Indicators for implementation outcomes (long term) •Expenditure review (CPEIR) • Examples of indicators for Framework implementation (IIED, 2011) • number of programmes using climate information in design; • performance of national planning system in conducting adaptation; • proportion of programmes modified in design to become more climate resilient; • number of mechanisms that target climate vulnerable people; • use of a regulation requiring effective screening Page © HR Wallingford 2007 23
  • 24. Advice for Ministers 5 Policy Briefs communication Tools © HR Wallingford 2007
  • 25. Advice for Ministers 5 Policy Briefs communication Tools © HR Wallingford 2007
  • 31. Framework for Climate Resilient growth and development © HR Wallingford 2007
  • 32. FRAMEWORK BEING USED © HR Wallingford 2007
  • 33. At least 33 Ministers and their representatives witnessed the launch © HR Wallingford 2007
  • 35. Water, Climate and Development Programme for Africa …. aims to integrate water security and climate resilience in development plans in Africa 23 Countries to benefit in pilot phase 8 pilot countries 5 pilot basins/aquifer © HR Wallingford 2007
  • 36. Thank THANK YOU Page © HR Wallingford 2007 36

Editor's Notes

  1. CDKN supported GWP and AMCOW to develop the Framework for Water Security and Climate Resilient Development Strategic Framework: Launched at Africa Water Week in May Technical Background Document: Launched tomorrow at WWW 5 Policy Briefs Capacity Development Strategy Framework will be presented by Alex in more detail, but at a high level it recommends activities at different stages of planning and investment cycles, for different decision-makers (central ministries, line ministries, local government, transboundary bodies, civil society), to develop no/low regrets investment decisions to achieve water security and climate resilience. Highlight that CDKN is a “happy donor”, we benefit from GWPs wide networks across Africa, their engagement style, the technical expertise they bring and we have great working relationships at an operational level