Climate Change Adaptation in Latin America and the Caribbean

Transcription

1 Climate Change Adaptation in Latin America and the Caribbean National Adaptation Summit May 27, 2010 Juan Pablo Bonilla Chief, Sustainable Energy and Climate Change Unit

2 Table of content 1. General overview of IDB activities 2. Relevance of climate change for Latin America 3. IDB s work on adaptation

3 1. General overview of IDB activities

4 The Inter American Development Bank Founded in 1959, oldest and largest of the regional multilateral development banks Largest source of development finance for Latin America and the Caribbean Total loans approval in 2008: $11.2 billion : $150 billion in loans Total cost of projects: $350 billion

5 The Inter American Development Bank Norway Finland Canada United Kingdom Sweden Denmark Netherlands Germany Belgium Austria France Switzerland Croatia Slovenia Italy United States Portugal Spain Israel China Japan South Korea Mexico Guatemala El Salvador Bahamas Jamaica Belize Haiti Honduras Nicaragua Dominican Republic Trinidad and Tobago Barbados Costa Rica Panama Venezuela Guyana Columbia Suriname Ecuador Peru Brazil Bolivia Paraguay Chile Argentina Uruguay 48 member countries 26 Borrowers 22 Non Borrowers (China, 2009)

6 Challenges and Priorities of the Bank Challenges: Fostering equality of opportunities across a range of areas is a central development challenge in the LAC region. This requires meeting the Millennium Development Goals (MDGs) Closing the growth gap with the rest of the world, while achieving global environmental sustainability and dealing with climate change Priorities: (a) social policy for equity and productivity; (b) infrastructure for competitiveness and social welfare; (c) institutions for growth and social welfare; (d) competitive regional and global international integration; and (d) programs to protect the environment and respond to climate change.

7 2. Relevance of climate change for Latin-America

8 GHG Emissions and Mitigation LAC is a minor player: GHG Emissions: LAC vs World (CO2, CH4, N2O, PFCs, HFCs, SF6) 8.6% of the world s population 8.2% of the world s GDP 40,000 35,000 30,000 30,056 (does not include land use/change) 31,055 33,190 37,767 8% of global GHG (exclud. land use/luc 2000) 12% of global GH (including land use/luc 2000) MtCO2 25,000 20,000 15,000 10,000 5, Year Source: Climate Analysis Indicators Tool (CAIT) Version 6.0. (Washington, DC: World Resources Institute, 2009). World LAC However: Per capita emissions and emissions/gdp are increasing to levels of high/mid income countries Source: IDB, A framework for Climate Change Action, 2010

9 Vulnerable Systems in LAC Climate Change Coral Reefs Tropical Glaciers IPCC 2007a Coastal Wetlands Rainforest High Mountain Ecosystems Source: IDB, A framework for Climate Change Action, 2010

10 Investments and financial flows needed for adaptation Sector Agriculture 7 Water 9 Human Health Costs for developing countries (US$bn per annum by 2030) 5 Coastal Zones 4 Infrastructure 2 41 TOTAL Globally: Several tens of billion $ per year will be required for adaptation (estimates between 40 to 170 billion $ globally by 2030)* Amounts are large in absolute terms, but small relative to global GDP and investment Existing climate change funds would need to be enhanced at a greater scale Creating climate change safe future will require: Shifts in investment patterns, Scaling up funding, Optimizing the allocation of existing funds. *Source: UNFCCC, Assessing the costs of adaptation to climate change; a review of the UNFCC and other recent estimates, 2009

11 Funding for adaptation for developing countries UNFCCC Funds: GEF: Enabling activities: adaptation in the context of national communication SPA (Special Program for Adaptation; funding as part of the GEF trust fund follow the principle that projects shall have global benefit) Special Funds under the Convention: SCCF (Special Climate Change Fund) LDCF (Least Developed Countries Fund) Adaptation Fund under the KP Multilateral Funds: Climate Investment Funds, MDBs (example of SECCI at IDB), etc. Bilateral Funds (debt swaps) Decisions tend to identify SIDS, LDCs and Africa as most vulnerable and priority countries for finance yet Central America is also very vulnerable

12 CIF: Structure of the Funds Climate Investment Funds (US$ 6.1 Billion) Clean Technology Fund (CTF) (US 5.1 Billion) Objective: To promote investment in clean energies Strategic Climate Fund (SCF) (US 1.0 Billion) Objective: to support targeted programs aimed at providing financing to pilot new approaches at a specific climate change challenge or sectoral response. Pilot Program for Climate Resilience (PPCR) Forest Investment Program (FIP) Program for scaling up renewable energy in low income countries (SREP)

13 3. IDB s work on Adaptation

14 Bank Response and Lessons Learned SECCI: An effective initiative to identify opportunities and channel assistance for climate mitigation and adaptation activities Has evolved into a critical tool for: Mainstreaming CC into Bank activities Developing innovation and policy instruments Scaling up financing for public and private sector investments Need to articulate better the SECCI support to Bank s country programming and investment instruments, and improve cross sectoral coordination

15 IDB s climate change framework Objectives Serve as a guiding instrument for scaling up support for CC mitigation and adaptation actions in LAC Guide and facilitate Bank s dialogue with governments, civil society and private sector Strengthen and consolidate its capacity, readiness and comparative advantages

16 The Role of the IDB: Strategic lines of action in Climate Change Mitigation i. Knowledge Development ii. Institutional Strengthening iii. Sector Guidelines/Climate Proofing Adaptation iv. Sectoral Lending in Key Areas v. Scaling up Investment

17 Identification and development of lending and technical assistance Directing financial resources for lending and technical assistance activities, giving due priority to key sectors, including: Water and sanitation Health Agriculture and forestry Energy Transportation Integrated urban development/ climate resilient cities Mitigation & Adaptation activities

18 Adaptation lines of action 1. Assist countries in the region on their efforts towards a climate resilient and carbon neutral economy 2. Strengthen/build local institutional capacity to identify and assess vulnerability to climate change 3. Provide finance and technical assistance in the design and implementation of strategic and replicable pilots of adaptation measures 4. Promote preventive risk management and risk reduction strategies, including risk sharing and innovative transfer mechanisms 5. Assist countries in the development and assessment of key policy and regulatory instruments

19 Adaptation activities by country and type

20 Colombia Support to the National adaptation agenda Improve existing mechanisms for the development, analysis and exchange of information between IDEAM and other sectors to support decisionmaking process. Development of an adaptation strategy for the agricultural sector and its implementation methodology Support water and carbon cycles monitoring on high mountain ecosystems Strengthen IDEAM s institutional capacity Source: Pedro Reyes Zambrano Source: Flickr enmaxcarado

21 Panama Vulnerability and Adaptation activities in selected watersheds The objective of this component is to support the Environmental National Authority (ANAM) in the strengthening of its adaptation agenda. Specifically, the component will finance Land use and ecological plans for prioritized watersheds. These Plans will incorporate the following information: Studies of socio economic vulnerability to climate change of local communities living in these areas in four (4) prioritized sectors Identification and pre design of adaptation measures to be taken into consideration under national development plans

22 Regional: Climate Variability and Change on the Expansion of the Agricultural Frontier: Technological and Political Strategies to Reduce Vulnerabilities to climate change. Fontagro* IDB Latin America and Climate Models (IPCC 4**):» The climate models used to evaluate the impacts of climate change in LAC show contradictions due to the lack of local information and its low quality.» In order for current models to be useful in the LAC context, it is necessary to include socioeconomic scenarios representative of the region. The Project:» Beneficiary countries: Chile, Peru, Uruguay, Mexico, Argentina, Paraguay, Bolivia, Brazil.» Objective: Contribute to the adaptation to climate change of current and under expansion agricultural production systems in the south cone, through the identification of replicable adaptation measures. *Fontagro: Regional Fund of Agricultural Technology ** 4 th Assessment Report of the Intergovernmental Panel of Climate Change (IPCC)

23 Regional: Development and implementation of advanced genomic tools to contribute to the adaptation of coffee to climate change. Fontagro IDB Projected climate change impacts on the coffee sector in LAC:» Higher temperatures could favor certain plagues (Diatraea saccharalis) and could result in an increase in the respiration rate, thus decreasing the plant s net growth.» Increase in the frequency of drought cycles that reduce rain s cooling effect, could favor the proliferation of fungus infections, degrading quality» Displacement of suitable land for growing coffee due to changes in areas where people live; The Project:» Beneficiary countries: Colombia, Guatemala, Costa Rica, Honduras, Panama, Dominican Republic» Objective: Contribute to strengthening sustainability and competitiveness of high quality coffee production through advanced genomic technology. Source: Cenicafe and Federación Nacional de Cafeteros de Colombia * 4th Assessment Report of the Intergovernmental Panel of Climate Change (IPCC)

24 Increase the Competitiveness of Potato and Wheat Productive Systems in South America in view of Climate Change. Fontagro IDB Projected climate change impacts on agriculture in LAC (IPCC 4*):» Studies based on General Circulation Models project a decrease in the productivity of crops such as wheat, corn and grape in countries such as Argentina, Brazil, Chile, Mexico and Uruguay;» Projected increase in climate phenomena such as El Niño and La Niña will result in changes in growing cycles throughoutthe region The Project:» Beneficiary countries: Chile, Peru and Uruguay» Objective: Increase the Competitiveness of Potato and Wheat Productive Systems in South America in view of Climate Change, through the selection and development of genotypes with higher tolerance to drought and high temperatures. Source: INIA, Instituto Nacional de Investigación Agropecuaria Uruguay * 4th Assessment Report of the Intergovernmental Panel of Climate Change (IPCC)

25 Case study: Peru Olmos Project IDB NCAR Partnership Olmos project: The project aims to promote regional agricultural activity through the development of cultivable lands in the Olmos Region (Northwest Peru), by diverting water from the Huancabamba river through a tunnel across the Andes Project Diagram IDB s support: Assess the potential impacts of CC and climate variability on the Olmos project and provide the government with decision support systems to manage the project under climate uncertainties Main activities: Development of novel climate scenarios developed through dynamical downscaling using the WRF model, coupled to the land surface model PARFLOW Noah Results from climate scenarios will be used to develop a water resource planning model of the Olmos project looking both at supply and demand in an integrated decision support planning process Training to technical staff of local govt on a water evaluation and planning tool Study is currently being developed by NCAR

26 Guyana: Assessment of climate change impact in Iwokrama and Eco system services The objective of the project is to contribute to the long term effort of Guyana in the formulation and establishment of a science based research Programme for the Iwokrama forest. Activities under the project are aimed at reducing Iwokrama s vulnerability to climate change, while demonstrating how forests such as Iwokrama can continue to be used in a sustainable way to generate income for government and local communities. Pictures in this slide extracted from

27 Mexico: Climate Change State Action Plans (PEACCs) IDB Coordination with other Institutions and governmental entities Mitigation agenda Special Climate Change Program (PECC) Climate Change Action Plan (PEACC) Adaptation agenda Federal Level State Level GHG Inventory Carbon offsets Policies Pilot measures Vulnerability studies Integrated watershed management Sustainable forest management Biological corridors Integrated risk management

28 PPCR Caribbean Pilot Activities will proceed along two tracks: Country based investments in highly vulnerable countries: Haiti, Jamaica and four small island states from the Organization of Eastern Caribbean States (Dominica, St. Lucia, St. Vincent and the Grenadines, and Grenada) Region wide activities: focused on climate monitoring, institutional strengthening, capacity building and knowledge sharing Implementation of a regional PPCR pilot should be characterized by: Participating countries should share a similar range of climate risks Enable pilot activities to focus on building responses to climate threats that have high relevance to the pilot region/sub region and to each participating country Build on existing collaboration on climate sensitive development issues and/or regional programs Type of regional activities likely to depend on degree of ongoing regional collaboration, capacities, and degree of regional political support of an existing regional institution Jamaica program St. Lucia program Haiti program Regional program St. Vincent & Grenadines program Dominica program Grenada program

29 Bolivia Water resources pilots & PPCR IDB Support with SECCI funds (under preparation): Design and implement demonstrative adaptation measures on water sector in the Altiplano: drought: water collection, small dams, micro irrigation, water usage efficiency, etc. flooding: riverbed protection with retaining walls, water flow deviation, etc. disaster risk prevention: protection of watershed heads, recuperation of microwatersheds with active erosion, slope stabilization, early warning systems, etc. Pilot Program on Climate Resilience (PPCR) Objectives Pilot and demonstrate approaches for integration of climate risk and resilience into national and sector planning Strengthen capacities required to integrate climate resilience into development / vulnerable sectors Scale up and leverage climate resilient investment, building on other ongoing initiatives Enable learning by doing and sharing of lessons at country, regional and global levels Lessons learned from pilots will serve as bases for: Development of PPCR s Strategic Program for Climate Resilience Scale up adaptation measures in priority sectors

30 IDB s next steps on Adaptation Internally: Disseminate current work of the CC unit to other divisions in the Bank Strengthen capacity of sectoral staff to incorporate CC into their projects Develop methodologies and screening tools for the identification of IDB climate sensitive operations in pipeline and preparation Externally: Continue and enhance current work in strong partnership with other agencies Define a set of vulnerability indicators that can co relate our projects outputs to national immediate and long term needs in terms of adaptation to climate change Design adaptation programs that respond to immediate and long term national needs for key highly vulnerable regions Develop and efficiently use Knowledge Products to strengthen certain areas of climate change research

31 THANK YOU! More Information at: