1. Adaptation costs and finances
BASIC Workshop
(Dr Habiba Gitay)

2. Exposure to climate change and cost of adaptation
Amount per yr
Exposure to CC
Costs of Adaptation
Cost $B
ODA and concessional lending
$100B
40%
10-20%
4 to 8
Foreign Direct Investment
$160B
10%
2 to 3
Gross Domestic Investment
$1500B
2-10%
3 to 30
TOTAL
10 to 40

3. What will inaction cost?
Various estimates : $10B - $100B per year in direct impacts in developing countries
c.f. - Costs of adaptation $10B to $40B per year

4. Mitigation cost (i) voluntary actions; (ii) international grants; and
(iii) trade
Trade : biggest flow of funds for developing countries (about $20-$120 billion per year)

5. Various Funds for adaptation
Adaptation fund
2% of the CDM: US$ million
Special Climate Change fund
Technology transfer, adaptation and mitigation
LDC fund – about US$40 million pledged
GEF adaptation (SPA): 50 million in GEF III; GEF IV ???

6. Least Developed country actions on adaptation
About 40 LDCs producing National Adaptation Plans of Action (NAPAs)
3 formally submitted now – several in draft
Requests for “urgent priorities” for adaptation range from c.$8M- $200M
Bangladesh requests $74M (0.1% of GDP)
At recent workshop, LDCs requested $0.5M per country grant as next phase

7. Overall….
The costs of adaptation are substantial (i.e. billions of dollars per year)
Costs of inaction are most likely very much greater
Finances available/pledged are less than a billion
Need to think innovatively of financing adaptation