OECD WORK ON CLIMATE CHANGE ADAPTATION

Climate Change Expert Group Global Forum (CCXG) 17 September 2014

Jan Corfee-Morlot Senior Policy Analyst/Team Leader, Development

Co-operation Directorate

Michael Mullan Team Leader, Environment Directorate

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Presentation structure

1. DAC-EPOC Task Team on Climate Change and Development Co-operation

2. Development Finance for Adaptation 3. Evolution of climate change adaptation at the international

level & implications for action in developing countries 4. Concrete example from South East Asia

5. Results from an OECD project on integrating climate resilience

into development planning Case 1: Ethiopia Case 2: Colombia

6. Capacity development 7. Monitoring and evaluation

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1. DAC-EPOC Task Team on Climate Change and Development Co-operation

Since 2006, supports adaptation policy dialogue : • Sharing experience from policy practice on adaptation; • Promoting better adaptation in partner countries (e.g.,

alignment and harmonisation, data collection); • Identifying, agreeing and communicating ways to improve

development co-operation for adaptation; • Producing guidance (e.g., Integrating Climate Change

Adaptation into Development Co-operation, OECD 2009). Recent work: • Harmonising Climate Risk Management: Adaptation Screening & Assessment Tools for Development • Forthcoming working papers on Methodological and Country

Challenges in Monitoring and Evaluation for Adaptation

Future work: • Mechanisms to reduce, transfer and share climate risks; • Climate-resilient urban development in developing countries.

Integrating Climate Change Adaptation into Development Co-operation

(2009)

2. Official Development Assistance to Climate Change Adaptation

Source: OECD DAC Statistics, March 2014

Total bilateral adaptation-related aid reached USD 9 bn p.a. over 2010-12, or 7% of bilateral commitments.

72% targets adaptation as a significant

objective, reflecting mainstreaming within on-going development activities

Sectors: water supply and sanitation; policy formulation, research, education and capacity building, as well as forestry, fishing & rural development. Small number of recipients in Asia

(35%) & Africa (28%). Recipients primarily LMICs (31%) and LDCs/LICs (25%).

Mostly delivered through grants (69%).

Total adaptation-related aid 2010-12, bilateral commitments, USD billion, constant 2011 prices,

annual and 3-year annual average

0 5 10

Private

Multilateral ODA & OOF

Bilateral OOF

Bilateral ODA

USD Billion, per year

OECD DAC Statistics Other Source Unknown

We have only a partial picture of the total landscape of external development finance for adaptation…

Illustration of magnitudes & data gaps in adaptation-related finance

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Initiatives to improve data quality & coverage:

OECD DAC Task Team on

Rio Markers & post-2015 development finance

International Development

Finance Club MDB Joint Approach OECD co-ordinated

Research Collaborate

Source: OECD DAC Statistics, March 2014 MDB Joint Approach, December 2013

3. International evolution of climate change adaptation & implications for action in developing countries

• Slow integration of climate change adaptation into development planning and policy.

• Largely driven by international instruments, bodies and support mechanisms:

– UNFCCC - NAPAs (2001) for LDCs (by 2013 all LDCs had a NAPA); – WB-administered PPCR (2008 in 9 pilot countries and the Caribbean).

• Since 2010, UNFCCC National Adaptation Plans (NAPs) in all developing countries:

– Integrate adaptation into development planning and budgeting processes – Link to on-going Identify gaps - information, capacity, institutional – initiatives, tools and approaches to mainstream adaptation, etc

• Financial support through: – GEF (Trust Fund, LDCF, SCCF) and soon GCF (50:50 adaptation/mitigation

allocation of finance over time) – CIFs (Strategic Climate Fund provides resources to the PPCR) – Bilateral support

• Flooding is most common climate risk to Southeast Asian cities, and already costly: – Average losses p.a. due to coastal flooding estimated at

USD 300 million in 2005 – By 2050, expect USD 6 bn, even with adaptation

measures • National government support is needed to

increase local resilience to climate change – National political commitments and linking urban and

adaptation planning – Channelling climate finance & aid to local governments – Supporting risk assessments that combine national

expertise and local knowledge

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4. Integrating adaptation into planning: the case of Southeast Asia

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Presentation structure

1. DAC-EPOC Task Team on Climate Change and Development Co-operation

2. Development Finance for Adaptation 3. Evolution of climate change adaptation at the international

level & implications for action in developing countries 4. Concrete example from South East Asia

5. Results from an OECD project on integrating climate resilience

into development planning Case 1: Ethiopia Case 2: Colombia

6. Capacity development 7. Monitoring and evaluation

1. Common vision: political will and development of institutional structures;

2. Evolutionary approach: focus on current problems, with initial thinking about longer-term vulnerabilities;

3. Evidence to guide “transformational” changes is very limited;

4. Finance and capacity constraints remain major barriers.

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5. Emerging findings in linking climate resilience and development

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6. Policy recommendations for strengthening capacity

• Use multi-year development planning processes as a vehicle to systematically incorporate green objectives;

• Develop key actors’ technical and functional skills;

• Encourage the participation of non-government actors;

• Rigorously prioritise support for capacity development

Supported by: • Co-ordination of external support • Ensuring local ownership • Finance

• To serve as a mechanism for continuous learning

– What progress has been made to implement strategic adaptation policies or plans?

– Is the country over time becoming less vulnerable or more resilient to the impacts of climate change?

• Monitoring and evaluation as an accountability measure

– Does resource allocation for adaptation reflect prioritised adaptation needs?

– Are policies and plans implemented in a cost-effective manner?

7. The role of monitoring and evaluation at the national level

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Climate risk and vulnerability assessments

Indicators for monitoring prioritised climate change risks and vulnerabilities

Learning from adaptation approaches

National audits and climate expenditure reviews

Four tools for monitoring and evaluation

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1

2

3

4

No Title Contribution

1 Climate risk and vulnerability assessments

• Establish a “baseline” • Provide periodic “snapshots” of risk/vulnerability • Monitor how adaptation priorities change

2 Indicators for prioritised adaptation needs

• Monitor adaptation priorities • Survey existing data sources and remaining gaps • Build stakeholder engagement and buy-in

3 Learning from adaptation approaches

• Identify “effective” adaptation approaches • Understand the necessary pre-conditions

4 National audits and climate expenditure reviews

• Assess alignment of resources with identified goals • Examine if resource allocation is cost-effective and

aligned with good-practice principles

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… in more detail

THANK YOU!

jan.CORFEE-MORLOT@oecd.org michael.MULLAN@oecd.org

OECD DCD Climate Change and Development

www.oecd.org/dac/environment-development/climate-change-development.htm

OECD DAC-CRS - Methods and data on climate change financing www.oecd.org/dac/stats/rioconventions.htm

OECD ENV – Adaptation to Climate Change

www.oecd.org/env/cc/adaptation.htm

Adaptation-related aid is concentrated in a few sectors and activity types…

Adaptation-related aid by sector 2010-12, bilateral commitments, USD billion, constant 2011 prices

The top 5 sectors receive 83% of adaptation-related aid The focus on General Environmental Protection reflects the importance

that countries and donors are placing on adaptation-related policy formulation, research and education, and capacity-building.

Source: OECD DAC Statistics, May 2014

Hard Infrastructure

71%

Soft Infrastructure

8%

Not Infrastructure

21%

Of this, over 70% is assessed as hard infrastructure, predominantly water supply and sanitation

Hard infrastructure

projects dominate owing to the large volume nature of the activities (they account for 20%-30% of activities).

The top donors of urban

hard infrastructure aid are: Japan, Germany, France, and Korea.

Adaptation-related bilateral aid to urban areas: about 20% of total ODA to adaptation

Adaptation-related Aid in Urban areas 2010-11, bilateral commitments, USD

billion

Source: OECD DAC CRS and DCD statistical analysis., October 2013.

LDCs and other low-income countries receive 25% of total adaptation-related aid….

Income groups receiving adaptation-related aid 2010-12, bilateral commitments

Geographic regions receiving adaptation-related aid 2010-12, bilateral commitments

LDCs 22%

Other LICs 3%

Lower MICs 31%

Upper MICs 13%

Unspecified 32%

Source: OECD DAC Statistics, May 2014

Asia 35%

Africa 28%

Unspecified 19%

America 11%

Europe 5%

Oceania 2%

• Grants comprise 69% of all adaptation-related aid commitments

Who are the main providers?

• Over 50% of bilateral adaptation-related ODA in 2010-12 was committed by three DAC members: Japan, Germany and EU Institutions.

• France and the UK commit the most amounts of aid targeting adaptation as a principal objective after Japan.

• Grants comprise 69% of all adaptation-related aid commitments

OECD DAC Statistics, March 2014 The US is working to review its data collection methodology and will supply data in the coming months.

Adaptation-related aid by DAC member* Average 2010-12, bilateral commitments, USD billion, constant 2011 prices

• Total bilateral climate change-related aid by members of the OECD DAC reached USD 21.5 billion on average per year in 2010-12, representing 16% of total ODA.

• For 59% of climate-related activities (USD 12.8 billion) mitigation and/or adaptation was the principal objective; for the remainder (USD 8.7 billion) it was a significant objective.

• The Rio markers are descriptive rather than quantitative. They allow for an approximate quantification of financial flows targeting the objectives of the Rio conventions.

Trends in climate-related aid, 3-year annual averages 2001-12, bilateral commitments, USD billion, constant 2011 prices

OECD DAC Statistics, May 2014