ADAPT-Asia 1 st Annual Forum Bangkok, Thailand Adaptation Finance : Global Landscape of Available Resources and Discussion with Fund Managers Integrating Adaptation into Development Lessons Learnt from Financing and Capacity Building Experiences in Asian Countries March 14, 2012 Kyosuke INADA Advisor, Climate Change, Global Environment Department, Japan International Cooperation Agency (JICA)
Table of Contents 1. 2010 Climate-related Bilateral Aid 2. Integrating Adaptation into Development 3. Financing and Capacity Building (1) Impact Evaluation Methodology (2) Project Examples 4. Implications for the Future 2
1. 2010 Climate-related Bilateral Aid 3 Source: OECD(2011) http://www.oecd.org/dataoecd/12/38/49254053.pdf
1. 2010 Climate-related Bilateral Aid 4 Source: OECD(2011) http://www.oecd.org/dataoecd/12/38/49254053.pdf
2. Integrating Adaptation into Development 5 Technical Cooperation: includes (1) acceptance of training participants (2) dispatch of experts (3) provision of equipment (4) assistance for development planning and public projects Research (JICA Research Institute) Loan Aid: includes (1) project loans (2) program loans (sector support / general budget support) (3) financial intermediary loans ( two-step loans) (4) engineering services (E/S) loans Grant Aid: includes (1) grant aid for general projects (2) program grant aid for environment and climate change Capacity Building (climate science research, adaptation policy planning, etc. ) Smart Combination of Schemes for Effective Assistance Financing (climate-proof infrastructure,
3. (1) Impact Evaluation Methodology Japan International Cooperation Agency (JICA) JICA Climate Finance Impact Tool (Climate-FIT) June 2011 JICA has prepared JICA Climate-FIT (Draft Ver. 1.0), a reference document which contains the following components in order to facilitate consideration of policies and formulation of projects for assisting climate change related measures in developing countries. 1. Mitigation (25 sub-sectors) Methodologies for MRV related to evaluation of GHG emission reduction 6 2. Adaptation (15 sub-sectors) Concepts and guidelines for mainstreaming adaptation considerations into projects that contribute to reduction of vulnerability against climate change, and sustaining and increasing adaptive capacity and resilience http://www.jica.go.jp/english/operations/ climate_change/index.html
3. (1) Impact Evaluation Methodology JICA Climate-FIT / Adaptation - Basic Concept Adaptation Projects Business-as-usual (BAU) Development with Adaptation Options Projects formed to reduce the climate change vulnerability in the existing system Projects which are not mainly aimed to reduce the vulnerability, but is designed to adapt to the impacts of the climate change in achieving its main objective 7 Guideline for each sub-sector Projects that fall between these two types of projects (Drawing a clear line between the two types is not possible in the real world) Guideline for each sub-sector
3. (1) Impact Evaluation Methodology Guideline for Adaptation Projects 8 Necessity of Adaptation Vulnerability Assessment Adaptation Measures Outcome Assessment Items Alternative Assessment Items Climate change causing imbalance between water supply & demand, damage to facilities. Observed & future climate + sensitivity + adaptive capacity = vulnerability assessment Increase available water resource, increase reservoir capacity, improve management, etc. Impact of climate change on water resource is mitigated Future sensitivity, flexibility to unaccounted impacts, resilience against extreme events, etc. Improvement of target investment return period, increase in awareness, etc.
3. (1) Impact Evaluation Methodology Guideline for BAU Development with Adaptation Options 9 Necessity of Adaptation Vulnerability Assessment Adaptation Measures Outcome Assessment Items Alternative Assessment Items Necessity for infrastructure to meet socioeconomic demand, climate impact considered Assess risks and perturbations associated with climate change Project planned with consideration to climate impact Lighter Approach Expected water supply maintained in the event of climate change Future sensitivity Improvement of target investment return period, increase in awareness, etc.
3. (2) Examples: Finance JICA Concessional Loan Project in Viet Nam: Project for Disaster Prevention and Climate Change Countermeasures using Earth Observation Satellites (I) The project helps upgrading Viet Nam s disaster and climate change planning by financing purchase of earth observation satellite equipment & support facilities. Also provides staff training and other services for operation & maintenance. 1 0 Currently, the satellite data purchased from foreign countries are used for disaster monitoring and forest management, but the data are not fully utilized due to limited availability and high cost. The project allows timely and accurate data acquisition.
3. (2) Examples: Finance JICA Concessional Loan Project in Pakistan: Khyber Pakhtunkhwa Emergency Rural Road Rehabilitation Project The project aims to rehabilitate roads and bridges damaged by the large-scale flood occurred in July-August 2010. 1 1 Observing the progress of and in coordination with damage and needs assessment study and subsequent formation of reconstruction projects, the project seeks to contribute to timely rehabilitation of selected provincial and district roads and bridges, in order to promptly recover economic and social life of local population in the province.
3. (2) Examples: Capacity Building JICA Technical Assistance Project in Bhutan: Study on Glacial Lake Outburst Floods (GLOFs) in the Himalayas Outburst Flood (GLOF) is a major hazard concern faced by mountain communities in the Himalayas Region. The purpose of this research is to evaluate GLOFs hazard level for countermeasures. 1 2 Based on satellite data analysis and field survey, the study will complete a flood hazard map for the region and provide necessary information for the construction of an early warning system. Transferring technology to cope with GLOF hazard to local organizations is the emphasis of this study.
3. (2) Examples: Capacity Building JICA Research Institute Joint Study with ADB and WB: Climate Change Impact and Adaptation of Asian Coastal Cities 1 3 Cities are centers of growth. Coastal areas are said to be highly vulnerable to climate change, yet there is limited research. This study aims to fill the gap and inform urban planners on benefits and costs of adaptation using detailed case studies on Asian coastal cities. JICA Manila / ADB - Ho Chi Minn / WB Bangkok, Kolkata Impact analysis, damage cost analysis and prioritization of adaptation options based on 1) flood maps produced using IPCC Scenarios and estimate of local effects on future climate variables and 2) detailed information on infrastructure, socio-economic and land use data
4. Implications for the Future Adaptation and Good Development - How is adaptation different from good development? - What are the consequences of integrating climate impact considerations into development planning --- does it lead to substantial changes in planned actions or used mainly for confirmation of the adaptation effects? 1 4 Application of Impact / Vulnerability Assessment - To what extent and how precisely should we measure and take into account the impact of future climate (change) when formulating projects --- only for special adaptation actions or wider application to development actions in general? - What methodologies are feasible for incorporating future lowprobability but catastrophic risk in policy decision making?
Thank you for your attention. Contact: Kyosuke Inada (Mr.) Advisor, Climate Change Global Environment Department Japan International Cooperation Agency (JICA) E-mail: gegoc@jica.go.jp TEL: +81-3-5218-8470 1 5