Presentation on theme: "Financing climate change adaptation: Options for Asian cities and the role of third- party brokers Presented by Verena StreitferdtVerena Streitferdt"— Presentation transcript:
Financing climate change adaptation: Options for Asian cities and the role of third- party brokers Presented by Verena StreitferdtVerena Streitferdt (email@example.com) CDIA consultant For the Session G3 at Resilient Cities 2012 Financing the Resilient City: Public grants and Market-based instruments
Statements regarding climate financing Mexico City’s Mayor Marcelo Ebrard underlines: “The architecture that is available now is not working, why, because it is not designed to help the cities; it is designed to work with the national governments.” Andrew Steer, the World Bank’s Special Envoy for Climate Change, says: “We have got to be more imaginative in our environmental financing, managing to make things more comfortable for investors, and maximizing returns”.
Outline Cities development Initiative Asia Background CDIA case study CDIA/PAKLIM study on cities and climate finance Tips for cities who seek financing for climate change measures
Asia’s Urban Challenge Asia’s economic growth is predominantly urban based The estimated urban environmental infrastructure investment need in the Asia-Pacific region is about $100 billion per year Current urban environmental infrastructure investment is about $ 40 billion per year => Investment gap
Bridging the urban infrastructure investment planning and programming gap CDIA Rationale Cities often have macro-development strategies and spatial plans, but city infrastructure projects to implement them are often not adequately defined and prepared for financing Particular issue for the 1,400+ medium-sized cities in Asia’s developing countries with populations of 250,000 to 5,000,000 Difficult to use standard feasibility study instruments for these purposes, need for additional instruments Cities Development Initiative for Asia ?
CDIA Focus Areas City Development Plan/Strategy Infrastructure Investment Programming Pre-Feasibility Studies/Project structuring Feasibility Study Project Implementation Operation & Maintenance CDIA Focus Areas Financing Arrangements Infrastructure Investment Project Cycle UP-STREAMDOWN-STREAM DIRECT SUPPORT CAPACITY DEVELOPMENT
CDIA City Interventions (ongoing, completed) IMPLEMENTATION STATUS, March 2012 - 42 APPROVED CITY APPLICATIONS IN 13 COUNTRIES (67 PFS) - SUPPORT COMPLETED IN 21 CITIES INCLUDING 33 PFS - ONGOING SUPPORT IN 21 CITIES (34 PFS)
City example Naga, Philippines Initiation Mayor Bongat send an application letter to CDIA Objective: Integrated Naga River Revitalization Project 1. Urban Renewal (River walk) 2. Wastewater Management, Drainage 3. Flood Protection/Climate Change Adaptation Method 5 months consultancy work and coordination with local governments Duration Aug – Dec 2011 Outcome Pre-Feasibility studies presented in March 2012
Cooperation: Cities Development Initiative in Asia (CDIA) and GIZ project: Policy Advise for Environment and Climate Change (PAKLIM) Support Objective: To identify the financing possibilities to support the cities to implement respective climate change mitigation and adaptation activities Approach: National study in Indonesia Regional Study in the Asia Pacific Studies on financing local climate action
Results – international Only 2 out of 14 international funds are accessible to cities Emerging climate financing - Green Climate Fund - Carbon markets and Green bonds - National appropriate mitigation actions (NAMAs) - National appropriate adaptation actions (NAPAs) Limited opportunities for direct finance access to cities
Results – Private Capital Investment in public goods and infrastructure -Public Private Partnership (PPP) Market Launch and diffusion of goods and companies on the supply side -Development partnerships -Carbon market financing (only mitigation) Market launch very dependent on enabling investment frameworks (e.g. guarantees for investment etc.) Investment package might attract private financing (e.g. Bus terminal in Banda Aceh)
Results – government Limitations of Local (city) finance National finance in form of programmes (e.g. Indonesia: Special allocation fund for drinkable water) Tax and levies Loans and municipal bonds Main opportunity for cities investment seem to come from national government programmes.
Advice for cities seeking climate finance Prepare proposals (Vulnerability assessment and prioritisation) Access to Private capital: Improve credit worthiness and leverage their existing assets and financial resources Engage in Public/private partner cooperations Engage with NGOs and national and international technical assistance agencies - bilateral: CDIA, GIZ etc. - multilateral: UNDP, UNHABITAT Start with small projects now to create visibility !
THANK YOU! Cities Development Initiative for Asia Suites 202-203, Hanston Building Emerald Avenue, Ortigas Center, Pasig City 1600 Metro Manila, Philippines www.cdia.asia