1. 1 GEF and Adaptation to Climate Change Mauritius, April 2003

2. 2 Adaptation to Climate Change Definition: Any actions and policy measures undertaken to adjust to or ease the adverse impacts of climate change. Types: –anticipatory (proactive) versus reactive –private versus public –autonomous versus planned Examples: –Private anticipatory: purchase of insurance –Private reactive: changes in insurance premiums –Public anticipatory: early warning systems, new building codes, relocation incentives to residents –Public reactive: compensatory payments or subsidies to affected populations.

3. 3 Adaptation ‘stages’ ( Decision 11/CP.1) Stage I: Planning, which includes studies of possible impacts of climate change, to identify particularly vulnerable countries or regions and policy options for adaptation and appropriate capacity-building; Identify impacts, particularly vulnerable countries/regions and policy options. Stage II: Measures, including further capacity-building, which may be taken to prepare for adaptation, as envisaged by Article 4.1(e); For particularly vulnerable countries/regions, identify measures, including capacity-building, to prepare for adaptation. Stage III: Measures to facilitate adequate adaptation, including insurance, and other adaptation measures as envisaged by Article 4.1(b) and 4.4; Identify measures to facilitate adaptation, including insurance schemes.

4. 4 COP Guidance to the GEF Decision 11/CP.1 requested GEF to initially fund Stage I in the context of national communications. Stages II and III would be funded later if Stage I studies, IPCC and other sources suggested such actions were necessary. Decision 2/CP.4 asked GEF to fund Stage II in the context of national communications. Decision 8/CP.5 reaffirmed the COP 4 request. Kyoto Protocol strengthened UNFCCC provisions on implementation and financing of adaptation. It identifies the CDM as a source of funds for adaptation.

5. 5 GEF Funding for Stage I Within enabling activities for the preparation of initial national communications, and 2 regional Stage I projects: CPACC and PICCAP. –Total allocation: $79 million (March, 2003) –Recipients: 133 countries –Results: 99 national communications submitted (March 2003) – 96 prepared with GEF funds Stage I is not yet complete; but GEF is moving forward in accordance with COP 4 guidance, building on its experience from initial national communications and work in related focal areas such as biodiversity and international waters.

6. 6 Some Stage II funding by GEF Approved: –Global project on Assessment of Vulnerability and Adaptation (UNEP) - $7.5 million –Capacity Building for Stage II Adaptation in Central America (UNDP) - $3 million –Mainstreaming Adaptation to Climate Change in the Caribbean - MACC (WB) - $5 million –Capacity Building for Global Observation Systems for Climate Change (UNDP) - $1.2 million –Climate change impacts on and adaptation in Agro- Ecological Systems in Africa (WB) - $700,000

7. 7 Other GEF funding for adaptation GEF projects in all focal areas (including the new land degradation OP as well as OP 12) that address climate change impacts and adaptation issues within the context of global environmental benefits.

8. 8 New FUNDS COP 7 : GEF to fund adaptation related activities within the context of the existing GEF Trust Fund + 3 new funds –Under the Convention: LDC Fund Special Climate Change Fund –Under the Kyoto Protocol: Adaptation Fund –Complementary to resources allocated to the climate change focal area of the GEF –To be operated by the GEF –Common to all of the new funds: adaptation

9. 9 Implications for GEF New responsibilities –Continue funding adaptation under the GEF Trust Fund –Make arrangements for operating the new funds _ Ensure clear separation yet complementarity among the funds

10. 10 Operational status of the new fund Already operational- LDC Fund - Adaptation funding under the GEF Trust Fund To be operationalized (COP to provide guidance on programs and priorities) - Adaptation Funding under the Special Climate Change Fund To be operationalized (Contingent on Kyoto Protocol and operation of the CDM/ other voluntary contributions) - Adaptation Fund of the Kyoto Protocol

11. 11 LDC Fund Separate from but complementary to other funds To support work program for LDCs –preparation of NAPAs, –Strengthening/establishing national climate change secretariats/focal points –Provide training in negotiating skills and language to develop capacity of negotiators LEG established First priority : preparation of NAPAs Simplified procedures and expedited access Resources : about US$14million pledged of which about $8.7 million received To date : 8 NAPAs approved ($200,000 each)

12. 12 LDC Fund - NAPAs COP guidelines for preparation of NAPAs: –NAPAs will communicate information related to urgent and immediate adaptation needs of LDCs. –NAPAs will specify a list of priority activities justified based on a set of nationally agreed criteria. Each national NAPA team will –Synthesize available info. on impacts of climate change –Conduct a participatory assessment of vulnerability –Identify key climate change adaptation measures –Identify and prioritize country driven criteria –Develop proposals for priority activities

13. 13 Special Climate Change Fund To finance activities, programs and measures complementary to those funded by resources allocated to GEF’s climate change focal area Covers –Adaptation –Technology transfer –Energy, transport, industry, agriculture, forestry, waste management –Economic diversification in oil-exporting countries Programs and priorities yet to be decided by Parties Resource mobilization thereafter

14. 14 GEF’s evolving response GEF will prepare an action plan for the May 2003 Council Meeting. –Intended as a communication document on GEF operational policy on adaptation –Reflects the evolution of adaptation guidance –Explains how the GEF will respond to this new guidance within its mandate –Flexibility to incorporate latest and evolving guidance