24 th June 2013 Challenges and barriers on Accessing Adaptation Financing. Sergi Bosque Garcia. A new climate for change

Challenges and barriers on Accessing Adaptation Financing 2 A new climate for change 4.Factor CO 2 : What we do? 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance

3 1.Knowledge as a technical barrier 1.1 The 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 barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

4 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 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

5 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 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

6 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 barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do? Economic assessment : Step 1: Hazard assessment Step 2: Assets at risk Step 3: Expected loss Step 1. Identify potential adaptation measures Step 2. Feasibility and applicability Step 3. Societal cost calculation Step 4. Expected benefit calculation Step 5. Cost-Benefit curve

7 1.Knowledge as a technical barrier 1.3CBA case-study: “Economics of Climate Change Adaptation Application” 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do? Source: Economics of Climate Adaptation Working Group, Shaping Climate-resilient development a framework for decision-making, 2009.

8 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. Identify and quantify adaptation benefits Proposed activities have to be specific or/and considered adaptation actions Demonstration of cost-effectiveness Ensure the effective implementation of activities Long-term sustainability of the project’s outcomes have to be ensured and not duplicate efforts 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

9 2.Financing criteria as a challenge 2.2The climate finance flow is not balanced: Mitigation >Adaptation 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do? (USD billions)

10 Un nuevo clima para el cambio 3.Key strategies to access climate finance 3.1Challenges to secure public and private funds: 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do? Return of investment Invest effectively Collaborativ e action Rationale for adaptation action Building local capacity Improve climate investment Country’s political stability Good governance

11 Un nuevo clima para el cambio 3.Key strategies to access climate finance 3.2Challenges to access Public funding: According to UNEP, there are 7 criteria for fundamental proposal eligibility: Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

12 Un nuevo clima para el cambio 3.Key strategies to access climate finance 3.3Challenges to access Private funding: 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

13 Un nuevo clima para el cambio 3.Key strategies to access climate finance 3.4Enabling the adaption financing: Public and philanthropic funds can boost private investment Public funds can reduce the investment risk and increase rewards to attract private investment Enhance the capacity building within public institutions PPP could allow Public entities gaining skills located in the private sector Structure projects adjusting to specific criteria of donors Key strategies to access adaptation finance 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

14 International consulting firm specialized in advising governments, organizations and private companies in the field of climate change. Factor CO 2 works closely with MDBs (ADB, IADB, EBRD, WB), international agencies (IRENA), and UN agencies (UNDP, UNEP). 4.Factor CO 2 : What we do? 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

15 4.Factor CO 2 : What we do? Offices Projects 1.Knowledge as a technical barrier 2.Financing criteria as a challenge 3.Key strategies to access climate finance 4.Factor CO2: What we do?

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