Landlocked Developing Countries: Challenges and Priority Areas for Action

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Landlcked Develping Cuntries: Challenges and Pririty Areas fr Actin Landlcked develping cuntries (LLDCs) face a number f special challenges that are assciated with their lack f direct territrial access t the sea, which ften cincides with remteness frm wrld markets, difficult tpgraphy and trpical r desert eclgy. In many cases, additinal factrs like deficient infrastructure, inefficient lgistics systems, weak institutins and high vulnerability t the effects f climate change aggravate the situatin. This incurs high transprt and trade transactin csts, which impse cnstraints n verall sci-ecnmic develpment f the affected cuntries. 16 f the 32 LLDCs are classified as least develped cuntries, and LLDCs ecnmies are characterized by weak grwth rates, limited prductive capacities and a nn-diversified exprt structure - typically a heavy reliance n a very limited number f lw-value bulky cmmdities fr their exprt earnings, which makes them highly vulnerable t external shcks. The remteness frm majr wrld markets is nt nly a principal reasn why LLDCs have nt been very successful in mitigating the side-effects f their lcatin, but als a distinguishing feature frm Eurpean landlcked cuntries. Transprt and related transprt csts are a majr issue fr LLDCs, which are caused by lng distances, difficult terrain, deficient infrastructure cnditins and inefficiency f transit transprt. These difficulties are amplified by the dependence n the plitical stability, infrastructure and institutinal quality f transit cuntries, which are ften develping cuntries as well. The Almaty Prgramme f Actin f 2003 aimed t establish a new glbal framewrk fr develping efficient transit transprt systems. It recgnizes the direct link between transprt, internatinal trade and ecnmic grwth, and aims at ensuring fuller and mre effective integratin f LLDCs int the glbal ecnmy arund five pririty areas: (1) fundamental transit plicy issues, (2) infrastructure develpment and maintenance, (3) internatinal trade and trade facilitatin, (4) internatinal supprt measures, and (5) implementatin and review At the UN Cnventin t Cmbat Desertificatin (UNCCD) COP11 Side Event n Building the Resilience f LLDCs t the Impacts f Climate Change, Desertificatin, Land Degradatin and Drught, pririty areas fr actin were highlighted. These include applying hlistic appraches t address all areas related t climate change and land prductivity 1, prviding supprt t LLDCs t diversify their ecnmic base and prmting reginal integratin, including reginal prgrammes, technlgy centres and reginal netwrks f excellence. Furthermre, strengthening f internatinal supprt and access t financial facilities and supprting participatin in intergvernmental and multilateral prcesses cunt amng these pririty areas. 1 Including pverty, fd security, bidiversity, defrestatin, frced migratin, amngst thers

The verarching gal f the 2014 Vienna Prgramme f Actin fr LLDCs fr the Decade 2014-2024 is t address the special develpment needs and challenges f LLDCs in a mre cherent manner and thus cntribute t an enhanced rate f sustainable and inclusive grwth. The six pririties fr actin include the fllwing: Pririty 1: Fundamental transit plicy issues Pririty 2: Infrastructure develpment and maintenance Transprt infrastructure Energy and ICT infrastructure Pririty 3: Internatinal trade and trade facilitatin Internatinal trade Trade facilitatin Pririty 4: Reginal integratin and cperatin Pririty 5: Structural ecnmic transfrmatin Pririty 6: Means f implementatin Imprving energy infrastructure and ensuring access t affrdable, reliable and renewable energy and related technlgies are imperative in enhancing prductive capacity t achieve sustained ecnmic grwth and sustainable develpment. Reginal appraches, including the creatin f netwrks f reginal renewable (RE) and energy efficient (EE) centres, will be needed t cmplement and enhance the effectiveness f natinal effrts and internatinal initiatives. Clse cperatin with transit cuntries, strnger reginal integratin and harmnised and cherent reginal plicies will significantly cntribute t imprved cnnectivity and greater interreginal trade t expand reginal markets. And finally, structural ecnmic transfrmatin shuld be based n measures t encurage innvative slutins, entrepreneurship and the use f mdern, cst-effective and lcally adapted technlgies, t create a cnducive envirnment t attract mre diversified freign direct investment, the sharing f experiences and lessns learned and the strengthening f the private sectr. As nted in the reprt f the UNCCD COP11 Side Event, LLDCs are typically particularly vulnerable t the adverse effects f climate change and lack adaptive capacity, institutinal and technical capacity, financial resurces and apprpriate data and mnitring systems. 72% f glbal drylands are in develping cuntries, and 60% f these are in LLDCs. 70% f the 400 millin peple living in LLDCs live in rural areas and heavily rely n land resurces, livestck prductin, fisheries, frests fr fd prductin, exprts, emplyment and energy. Climate change, desertificatin, land degradatin and

drught are therefre expected t negatively affect the agriculture, water, envirnment, transprt and energy sectrs. Prir t the COP21 in Paris, signatry states f the UNFCCC were invited t submit Intended Natinally Determined Cntributins (INDCs). These INDCs, which are part f the Paris Agreement, shall cntain their vluntary climate bjectives and measures t jintly achieve the agreed glbal target f limiting glbal temperature increase t well belw 2 C. Starting in 2020, signatries f the Paris Agreement shall submit updated and mre ambitius plans every five years, and frm 2023 nwards, shall publicly reprt n their prgress in reaching their cntributins in five-year cycles. As f May 2016, 31 LLDCs have submitted their Intended Natinally Determined Cntributins (INDCs) t the Secretariat f the UN Framewrk Cnventin n Climate Change (UNFCCC) 2. Each submitted INDC f a LLDC was reviewed t identify which f the fllwing mitigatin and adaptatin sectrs were cvered: Mitigatin Sectrs Energy Waste Transprt Industrial prcesses and prduct use Agriculture LULUCF Adaptatin Sectrs Energy Human settlements/cities Transprt Infrastructure Water Agriculture Frestry Human health The cmmitments f the submitting LLDC, the level f detail in the descriptin f targets and f mitigatin and adaptatin measures varied cnsiderably between the evaluated cuntries. Arund 75% f LLDC cmmitments are either cnditinal upn external supprt r include a cmbinatin f cnditinal and uncnditinal targets. Cnditinality was defined differently amng the evaluated INDCs, but in the majrity f cases referred t technical assistance and financial supprt. The remaining quarter f submitted INDCs cntained uncnditinal dmestic targets, which have t be seen independently frm the mentined need fr capacity building, technlgy transfer r financial supprt. Overall, the definitin f cmmitments in the INDCs f landlcked develping cuntries and the fact that half f these cuntries are currently least develped cuntries indicate that cncrete measures and prjects, that are linked t the develpment pririties f these cuntries and receive strng internatinal supprt, will be needed fr the implementatin f these plans. Rughly 65% f the 31 INDCs cntained cmmitments which referred t a quantified percentage emissins reductin cmpared t a business as usual (BAU) scenari r a base year. The base year was defined differently thrughut the INDCs, which als differed with regard t the timeframe cnsidered (2030, 2050, a perid r n indicatin). 26% f INDCs either cntained cmmitments based slely n plicies and measures, nn-ghg targets r nt quantified GHG targets, and 10% f INDCs cntained an abslute figure referring t a fixed-level target r GHG intensity target. 2 N submissin culd be fund by Uzbekistan

Climate Change Mitigatin Of the 31 LLDCs that submitted their INDCs, pririty actin fr climate change mitigatin addressed the energy sectr in almst all cases (30 INDCs r 97%). Agriculture and land use, land use change and frestry (LULUCF) were mentined by 77% f LLDCs (24 cuntries) each. The waste sectr was mentined as pririty sectr by 58% f submitted INDCs (18), the transprt sectr by 53% r 17 cuntries, and industrial prcesses and prduct use by 48% r 15 LLDCs. These fcal sectrs give an indicatin abut the ecnmic structure f landlcked develping cuntries and reflect their needs and challenges, putting a particular emphasis n the critical imprtance f an affrdable, sustainable and reliable energy system fr the future develpment f these cuntries. The measures freseen in the respective sectrs and the verall evaluatin results als indicate a strng nexus between the agriculture, water and energy sectrs. The implementatin f INDCs will thus require a clser crdinatin acrss sectrs and ministries invlved, and culd be aided by the creatin f facilitating structures like inter-ministerial cmmittees, wrking grups etc. Figure 1: Pririty areas fr climate change mitigatin (share f cverage in submitted INDCs) Pririty Areas fr CC Mitigatin 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 97% 58% 77% 77% 55% 48% Energy Waste Agriculture LULUCF Transprt Industrial prcesses and prduct use

Adaptatin t Climate Change With regard t adaptatin t climate change, INDCs f landlcked develping cuntries gave highest pririty t adaptatin measures in the water and agriculture sectrs: 77% f submitted INDCs r 24 in abslute numbers, explicitly mentined bth sectrs as imprtant areas fr natinal actin. 65% r 20 INDCs referred t intended adaptatin measures in the energy sectr, the frestry sectr was mentined by 48% r 15 INDCs, fllwed by infrastructure (45% r 14 INDCs) as well as enhancing adaptive capacity f human settlements r cities (43% r 13 INDCs). Human health and the transprt sectr were explicitly mentined by 35% and 32% f INDCs. Since the definitin and scpe f pririty areas varied t a certain extent between the submitted INDCs, sectral verlaps and inaccuracies in the assignment f pririty areas fr adaptatin t climate change are pssible. Overall, the adaptatin areas f highest relevance t landlcked develping cuntries reflect the abvementined challenges and specific circumstances f LLDCs well. The evaluatin f fcal sectrs fr adaptatin t climate change nce again revealed the imprtance fr hlistic, crss-sectral appraches and strnger cperatin t achieve the desired envirnmental and develpment results. Figure 2: Pririty areas fr adaptatin t climate change (share f cverage in submitted INDCs) Pririty Areas fr CC Adaptatin 77% 77% 80% 65% 70% 60% 50% 40% 30% 20% 10% 0% 43% 45% 32% 48% 35%

Technlgy & Financing Needs Internatinal supprt fr financing is a key demand f LLDCs: 87% f submitted INDCs stated the need t attract financing fr the implementatin f the plans. The need fr technlgy transfer r technlgical supprt was mentined in abut tw thirds f the evaluated INDCs, althugh specific technlgy needs were nly stated in abut half f them. Lack f capacity r the need fr training and capacity building were mentined as an imprtant barrier t technlgy implementatin, but als as a mre general hurdle t the implementatin f the plicies and measures cntained in the 31 INDCs. The need fr strnger cperatin in research and develpment (R&D) and in innvative appraches was als highlighted in numerus cases. Due t the mentined dependence f LLDCs n transit cuntries, a clser reginal cperatin and knwledge exchange, strnger reginal integratin and the creatin f cherent reginal plicies have the ptential t imprve cnnectivity, enhance interreginal trade and achieve bth envirnmental and sustainable develpment gals.

Cnclusins Internatinal supprt fr financing and technlgy transfer is a key demand in submitted INDCs f landlcked develping cuntries. Cncrete prjects, t a large degree supprted by internatinal finance, technical assistance and technlgy, will be required fr the full implementatin f the INDCs. Capacity building and strnger cperatin in research and develpment will be needed in the fcal areas fr climate change mitigatin and adaptatin. The vast majrity f LLDCs fresee mitigatin plicies and measures in the energy, agriculture and LULUCF sectrs, which shws the critical imprtance f these areas fr a sustainable develpment pathway. Enhancing adaptive capacity and resilience t the adverse effects f climate change is particularly imprtant in the water, agriculture and energy sectrs f LLDCs. Crss-sectral, hlistic appraches linked t the develpment pririties f LLDCs will be needed t take accunt f existing interdependencies (e.g. the water-energyfd security nexus) and tap the ptential fr envirnmental and develpment cbenefits. A strengthening and diversificatin f ecnmic activities in LLDCs, based n the efficient use f sustainable energy surces, are needed t reduce dependencies and transactin csts. Strnger reginal cperatin and capacities can mitigate barriers t e.g. renewable energy and energy efficiency investment, markets and industries which were highlighted in a great number f INDCs. Knwledge netwrks and reginal centres f excellence can substantially enhance the existing knwledge base and supprt the develpment f innvative slutins and technlgies. Innvative and crss-sectral partnerships, as well as multi-level and hlistic slutins will be needed t simultaneusly address the climate, energy and develpment challenges.