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People-first PPPs for Climate Resilient Infrastructur
N a t a l i a K o r c h a k o v a - H e e b
S i n g a p o r e , 4 J u n e 2 0 1 9
Photo by Josep Castells on Unsp
Natalia Korchakova-Heeb
Managing Director
SDG.17 Consulting GmbH
Frankfurt am Main, Germany
natalia.korchakova-heeb@
sdg17consulting.de
2
deathsclimate-related
disaster events in 2018
Mln people affected
across the world
11,804315 68
FACTS
EM-DAT 2018
3
From 2009 till 2015 a number of the institutions
developed the comprehensive guidelines how
to integrate climate risks into development of
infrastructure projects:
African Development Bank, Asian Development
Bank, European Bank for Reconstruction and
Development, European Organization for
Economic Co-operation and Development,
World Bank, European Commission and some
national governments
4
BUT ARE INFRASTRUCTURE
PPPS REALLY CLIMATE
RESILIENT?
5
NONE of the 16 national PPP policy frameworks
reviewed by the World Bank in 2016 referred to
climate resilience, adaptation, or climate change.
6
Related initiatives
One Billion Coalition for Resilience
People-first PPP concept coined by the UNECE
(PPIAF), the WB GIF and the Tokyo Disaster
Risk Management (DRM) Hub “Resilient Infrastructure PPPs”
"DiesesFoto"vonUnbekannterAutoristlizenziertgemäßCCBY-SA-NC
CLIMATE RISKS ARE NOT
ALWAYS PART OF EQUATION
IN PPPs
UN Climate Resilience Initiative A2R
7
100 Resilient Cities The Rockefeller Foundation
UNECE CONCEPT OF
PEOPLE-FIRST PPPs
• People-first PPPs (PfPPPs) tied PPPs to SDGs and
to environmental, social and economic sustainability
• PPPs aim to deliver public services/ public
infrastructure
• Climate resilience is one of eight guiding principles,
PfPPPs is based on
• The needs of end-beneficiaries should be duly
considered to ensure that PfPPs address their needs
effectively
8
• Incorporating climate change considerations
into existing PPP policy frameworks to
enable integration of climate resilience into
planning and design of new PPP projects
and ideally also revising frameworks of
existing projects
• Climate resilience mainstreamed in public
investment management systems,
specifically in engineering standards, for the
development of all kinds of infrastructure,
including PPPs
• Policy alignment between climate change
policies, national infrastructure planning and
SDG-reporting
• Lack of understanding by
the public partner a
necessity of
incorporating climate
resilience and
adoption/mitigation
policies into PPP
projects
• Lack of coherence
between climate change
policies, national
infrastructure plans and
SDG-reporting
PUBLIC PARTNER
SolutionsProblem
9
• The imperative comes from the public sector
– from the Client through procurement
criteria but it is also in the interest of the
private sector to explore the climate risks to
avoid unnecessary damages and optimize
the maintenance costs and minimize
unpredictable costs
• Climate resilience mainstreamed in business
model and is offered to the public partner as
added value
• Training and awareness campaign for
private sector
• Focus on a concrete
asset/project- no long
term or helicopter view
• Lack of expertise in
climate resilience and
imperative to make it
integrated into the
business model
PRIVATE PARTNER
SolutionsProblem
10
1. Identification of climate risks within
PPP
2. Assessment of climate risks
3. Allocation of climate risks
4. Climate risk mitigation
5. Climate risk monitoring and review
Climate changes are not even identified
within PPP risks and therefore are not
allocated between the parties.
CLIMATE RISK ALLOCATION IN PPPs
11
Specific training and capacity
building measures should be
offered to the public and
private partners regarding
climate resilient infrastructure
and best practices
Education and
capacity
building
And also….
Inclusion of climate
change implies extra
cots. But how much?
Resilience-building
adaptations to
infrastructure are not
expensive if
incorporated early in
the project lifecycle (1 -
2% percent)
Cost of climate
resilience
measures
Lenders should require
consideration of climate risk and
resilience as lending criteria, and
implementation of resilience
measures through lending
covenants.
Climate financing for PPPs
Green Climate Fund, Climate
Investment Funds, and Green
Bonds, can also be
mainstreamed as financing
sources for climate-smart
infrastructure.
Resilience as
lending criteria
12
Build better presentations in less time
We are the first
generation
that can end poverty,
and the last that can end
climate change.
Ban Ki-moon

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People-first PPPs for Climate Resilient Infrastructure

  • 1. People-first PPPs for Climate Resilient Infrastructur N a t a l i a K o r c h a k o v a - H e e b S i n g a p o r e , 4 J u n e 2 0 1 9 Photo by Josep Castells on Unsp
  • 2. Natalia Korchakova-Heeb Managing Director SDG.17 Consulting GmbH Frankfurt am Main, Germany natalia.korchakova-heeb@ sdg17consulting.de 2
  • 3. deathsclimate-related disaster events in 2018 Mln people affected across the world 11,804315 68 FACTS EM-DAT 2018 3
  • 4. From 2009 till 2015 a number of the institutions developed the comprehensive guidelines how to integrate climate risks into development of infrastructure projects: African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, European Organization for Economic Co-operation and Development, World Bank, European Commission and some national governments 4
  • 5. BUT ARE INFRASTRUCTURE PPPS REALLY CLIMATE RESILIENT? 5
  • 6. NONE of the 16 national PPP policy frameworks reviewed by the World Bank in 2016 referred to climate resilience, adaptation, or climate change. 6
  • 7. Related initiatives One Billion Coalition for Resilience People-first PPP concept coined by the UNECE (PPIAF), the WB GIF and the Tokyo Disaster Risk Management (DRM) Hub “Resilient Infrastructure PPPs” "DiesesFoto"vonUnbekannterAutoristlizenziertgemäßCCBY-SA-NC CLIMATE RISKS ARE NOT ALWAYS PART OF EQUATION IN PPPs UN Climate Resilience Initiative A2R 7 100 Resilient Cities The Rockefeller Foundation
  • 8. UNECE CONCEPT OF PEOPLE-FIRST PPPs • People-first PPPs (PfPPPs) tied PPPs to SDGs and to environmental, social and economic sustainability • PPPs aim to deliver public services/ public infrastructure • Climate resilience is one of eight guiding principles, PfPPPs is based on • The needs of end-beneficiaries should be duly considered to ensure that PfPPs address their needs effectively 8
  • 9. • Incorporating climate change considerations into existing PPP policy frameworks to enable integration of climate resilience into planning and design of new PPP projects and ideally also revising frameworks of existing projects • Climate resilience mainstreamed in public investment management systems, specifically in engineering standards, for the development of all kinds of infrastructure, including PPPs • Policy alignment between climate change policies, national infrastructure planning and SDG-reporting • Lack of understanding by the public partner a necessity of incorporating climate resilience and adoption/mitigation policies into PPP projects • Lack of coherence between climate change policies, national infrastructure plans and SDG-reporting PUBLIC PARTNER SolutionsProblem 9
  • 10. • The imperative comes from the public sector – from the Client through procurement criteria but it is also in the interest of the private sector to explore the climate risks to avoid unnecessary damages and optimize the maintenance costs and minimize unpredictable costs • Climate resilience mainstreamed in business model and is offered to the public partner as added value • Training and awareness campaign for private sector • Focus on a concrete asset/project- no long term or helicopter view • Lack of expertise in climate resilience and imperative to make it integrated into the business model PRIVATE PARTNER SolutionsProblem 10
  • 11. 1. Identification of climate risks within PPP 2. Assessment of climate risks 3. Allocation of climate risks 4. Climate risk mitigation 5. Climate risk monitoring and review Climate changes are not even identified within PPP risks and therefore are not allocated between the parties. CLIMATE RISK ALLOCATION IN PPPs 11
  • 12. Specific training and capacity building measures should be offered to the public and private partners regarding climate resilient infrastructure and best practices Education and capacity building And also…. Inclusion of climate change implies extra cots. But how much? Resilience-building adaptations to infrastructure are not expensive if incorporated early in the project lifecycle (1 - 2% percent) Cost of climate resilience measures Lenders should require consideration of climate risk and resilience as lending criteria, and implementation of resilience measures through lending covenants. Climate financing for PPPs Green Climate Fund, Climate Investment Funds, and Green Bonds, can also be mainstreamed as financing sources for climate-smart infrastructure. Resilience as lending criteria 12
  • 13. Build better presentations in less time We are the first generation that can end poverty, and the last that can end climate change. Ban Ki-moon