24th June 2013

Challenges and barriers on Accessing Adaptation Financing.

Sergi Bosque Garcia.

A new climate for change

Challenges and barriers on Accessing Adaptation Financing

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A new climate for change

4. Factor CO2: What we do?

1. Knowledge as a technical barrier

2. Financing criteria as a challenge

3. Key strategies to access climate finance

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1. Knowledge as a technical barrier

1.1The Vulnerability Assessment (VA) and the Cost-Benefit Analysis (CBA) as adaptation tools for decision-making.

The use and application of the adaptation tools require high expertise that DMCs government staff may not have.

The outcomes provided by the adaptation tools could be a starting point to seek for adaptation financing.

These tools are based on methodologies that are in continuous improvement.

The climate change adaptation is a field that needs still a lot of research and investigation to do.

VA and CBA might answer some of the following questions: o How much is need to invest in new technologies to adapt to future climate

parameters variations?o Which sectors/assets are the most vulnerable?o How much it cost to prevent a likely natural disaster?o Which adaptation measures should be prioritize?

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

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Un nuevo clima para el cambio

1. Knowledge as a technical barrier

1.2VA case-study: “Energy utility vulnerability assessment ”

Development of CLI-MATE (Climate Adaptation for Energy), a tool to assess generation and distribution facilities through bottom-up approach in order to evaluate the electricity companies’ adaptation to climate change. This tool is coherent with existing methodologies such as DEFRA and IPCC’s principles.

Step 1. Data collection

Step 2. Risk assessment

Consequences

Insignificant Minor Significative Important Critical Catastrophic

Like

lihood

Certain 30 40 50 70 90 100

Very likely 27 36 45 63 81 90

Likely 21 28 35 49 63 70

Moderate 15 20 25 35 45 50

Unlikely 12 16 20 28 36 40

Rare 9 12 15 21 27 30

RisksVeryhighrisk ≥90 5 R5

Highrisk ≤50-90 4 R4Medium risk ≤30-50 3 R3

Low risk ≤20-30 2 R2Very low risk ˃0-20 1 R1Negligible 0 R0

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

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Un nuevo clima para el cambio

1. Knowledge as a technical barrier

1.2VA case-study: “Energy utility vulnerability assessment ”

Step 3. Adaptation Capacity

Step 4. Vulnerability Assessment

Step 5. Results and Adaptation to climate change

RISKSR1 R2 R3 R4 R5

Adapta

tion

Capacity

CA1 V2 V2 V4 V5 V5CA2 V2 V2 V3 V4 V5CA3 V2 V2 V3 V4 V4CA4 V1 V2 V2 V3 V3CA5 V1 V1 V2 V3 V3

High V5

Mid-High V4

Medium V3

Mid-Low V2

Low V1

Vulnerability

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

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1. Knowledge as a technical barrier

1.3CBA case-study: “Economics of Climate Change Adaptation Application”

Assessment of the expected loss:

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

Economic assessment:

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1. Knowledge as a technical barrier

1.3CBA case-study: “Economics of Climate Change Adaptation Application”

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

Source: Economics of Climate Adaptation Working Group, Shaping Climate-resilient development a framework for decision-making, 2009.

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2. Financing criteria as a challenge

2.1How to face the MDB’s technical proposals submission stage. The DMC used to have a lack of the expertise and human resources

to prepare the complex proposals that adaptation funds require.

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

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2. Financing criteria as a challenge

2.2The climate finance flow is not balanced: Mitigation >Adaptation

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

(USD billions)

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Un nuevo clima para el cambio3. Key strategies to access climate finance

3.1Challenges to secure public and private funds:

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

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Un nuevo clima para el cambio3. Key strategies to access climate finance

3.2Challenges to access Public funding:

According to UNEP, there are 7 criteria for fundamental proposal eligibility:

1

2

3

4

5

6

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1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

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Un nuevo clima para el cambio3. Key strategies to access climate finance

3.3Challenges to access Private funding:

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

1

2

3

4

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Un nuevo clima para el cambio3. Key strategies to access climate finance

3.4Enabling the adaption financing:

Key strategies to access adaptation

finance

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

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International consulting firm specialized in advising governments, organizations and private companies in the field of climate change.

Factor CO2 works closely with MDBs (ADB, IADB, EBRD, WB), international agencies (IRENA), and UN agencies (UNDP, UNEP).

4. Factor CO2: What we do?

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

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4. Factor CO2: What we do?

Offices

Projects

1. Knowledge as a technical barrier2. Financing criteria as a challenge3. Key strategies to access climate finance4. Factor CO2: What we do?

www.factorco2.com

Contact details:

Sergi Bosque GarciaConsultant

Email: sbosque@factorco2.comTel: +66 (0) 800 58 29 88