18 December, 2017, Webinar on NAP under the UNFCCC Process, Slycan Trust Rohini Kohli Lead Technical Specialist – NAP Portfolio UNDP Global Environment Finance Climate finance for the National Adaptation Plans process
Jan 22, 2018
18 December, 2017, Webinar on NAP under the UNFCCC Process, Slycan Trust
Rohini KohliLead Technical Specialist – NAP Portfolio
UNDP Global Environment Finance
Climate finance for the National
Adaptation Plans process
Key messages
- National Adaptation plans are an instrument to identify and prioritize
investment needs for climate change adaptation and reduction of
vulnerability in the medium to long term
- Access to climate finance both for formulation and implementation of
national adaptation plans is required
- The scale of adaptation finance needs are unlikely to be met by any
single source of finance. Tapping and blending public, private,
international and domestic finance will be important to address
scaled up adaptation investments
- The Green Climate Fund readiness window for NAPs/other
adaptation planning instruments is an opportunity for countries to
advance their NAPs process. This will support the development of
adaptation investment pipelines and financing strategies to be
supported by GCF and other international and domestic sources.
What is the NAP process?
The national adaptation plan (NAP) process was established under the Cancun Adaptation Framework (2010).
It enables Parties to formulate and implement national adaptation plans (NAPs) as a means of identifying medium- and long-term adaptation needs and developing and implementing strategies and programmes to address those needs.
It is a continuous, progressive and iterative process which follows country-driven, gender-sensitive, participatory and fully transparent approach.
3
Under the Paris Agreement, the Global Adaptation Goal, Adaptation Communications
are key milestones. NAP process is well recognized in Article 7
ObjectivesThe Conference of Parties to the UNFCCC have agreed on the
following objectives of the NAP process:
• To reduce vulnerability to the impacts of climate change,
by building adaptive capacity and resilience; and
• To facilitate the integration of climate change
adaptation, in a coherent manner, into relevant new and
existing policies, programmes and activities; in particular
development planning processes and strategies, within
all relevant sectors and at different levels, as appropriate.
4
D. Reporting, Monitoring
and Review1. Monitoring the NAP process
2. Reviewing the NAP process to assess
progress, effectiveness and gaps
3. Iteratively updating the national
adaptation plans
4. Outreach on the NAP process and
reporting on progress and effectiveness
C. Implementation
Strategy1. Prioritizing climate change adaptation
in national planning
2. Developing a (long-term) national
adaptation implementation strategy
3. Enhancing capacity for planning and
implementing adaptation
4. Promoting coordination and synergy at
the regional level and with other
multilateral environmental
agreements
A. Laying the groundwork
and addressing gaps1. Initiating and launching of the NAP process
2. Stocktaking: identifying available
information on climate change impacts,
vulnerability and adaptation and assessing
gaps and needs of the enabling environment
for the NAP process
3. Addressing capacity gaps and weaknesses
in undertaking the NAP process
4. Comprehensively and iteratively assessing
development needs and climate
vulnerabilities
B. Preparatory Elements1. Analysing current climate and future
climate
change scenarios
2. Assessing climate vulnerabilities and
identifying adaptation options at the sector,
subnational, national and other levels
3. Reviewing and appraising adaptation
options
4. Compiling and communicating national
adaptation plans
5. Integrating climate change adaptation into
national and subnational development and
planning
Catalyzing adaptation finance
Slide 7NAP country-level training
Sector Example activities
Enabling
activities
Supporting the development of climate change adaptation-specific
policies, programs and plans
Policy and
legislation
Strengthening capacities of national institutions responsible for
adaptation
Agriculture Promoting diversified agricultural production to reduce climate risk
Energy Strengthening of energy transmission and distribution
infrastructure to cope with the expected impacts of climate change
Health Strengthening food safety regulations; developing or enhancing
monitoring systems
Transport Building protection from climate hazards into existing transport
infrastructures (e.g. Disaster Risk Reduction measures)
Water and
sanitation
Monitoring and management of hydrological and meteorological
data
What needs to be financed in adaptation?
08.01.2018
Analysing impacts of climate over development as usual
Agriculture
Water
Health Housing
Five-year plan
budget outlay is
“business as
usual”
development
Additional
financingClimate
Climate
Climate
Climate
Climate
- Identifying development priorities
- Prioritizing programmes/projects and capacity building activities to support these activities
Catalyzing
Adaptatio
n
Finance
Adaptation Finance is unlikely to be at the scale required without an
effort to remove a few key barriers
Need to create conditions that attract finance without
compromising development goals and sharing cost burden
on end-users.
Multiple stakeholders (investors, end-users, policy makers,
supply chains, etc)
Broad spectrum of policies, incentives and support
mechanisms to
(a) reduce risks (i.e. lower cost of capital)
(b) increase rewards (i.e. premium prices, credits, etc)
Catalyzing Adaptation Finance
Recipient countries face climate finance challenges despite increased financial flows from public, private, domestic & international sources:
Responding to country needs & demand: Emerging lessons from UNDPs readiness support
• Lack of national capacities to navigate complex financial landscape to access, manage, deliver, track & report on different forms of finance
• Barriers to catalyse private finance to address the climate challenge as public finance alone cannot provide the “clean trillion” necessary to avoid 2°C rise
• Limited alignment between climate & development inhibits economy-wide transformation; climate finance must be mainstreamed into business, planning & development policy
Financial Planning
• Understand current climate expenditures
• Assess needs & priorities, identify barriers to investment
• Identify policy mix & sources of financing
Accessing Finance
•Directly access finance
• Blend & combine finance
• Formulate project, progamme, sector-wide approaches to access finance
Delivering Finance
• Implement & execute project, programme, sector-wide approaches
• Build local supply of expertise & skills
• Coordinate implementation
Monitor & Report
• Track progress
• Monitor & report flows
• Performance-based payments
Elements of Climate Finance Readiness
• National systems must be “ready” for climate finance so that countries can access public & private, domestic & international finance
• Strengthening planning, access, delivery, and M&E capacities ensures climate finance is available & effective in all countries
Elements of Climate Finance Readiness
• National systems must be “ready” for climate finance so that countries can access public & private, domestic & international finance
• Strengthening planning, access, delivery, and M&E capacities ensures climate finance is available & effective in all countries
A Defining Framework for Medium and Long-Term Climate Change Adaptation Challenge
Catalyzing AdaptationFinance
Integrated Model “Blended Finance
CapitalMarket
Private Sector
Source: UN-MPTF, 2014
Blend
FSources
Integrated Model “Blended Finance”
GCF perspectives on the impact of
adaptation planning
Understanding climate impacts and vulnerabilities
Designing strategies and actions to address these impacts
Achieving ownership and investment by key actors (private/public, sub-national, etc.)
Creating adaptation financing strategy (including GCF project pipeline)
Adaptation planning
Scope
• National adaptation planning (NAPs)
• Other adaptation planning processes
Modalities
• Readiness Programme up to $3M/country
• Funding proposals under Adaptation window
Governing instrument
Paris agreement
Board
Adaptation planning
processes
Key messages
- National Adaptation plans are an instrument to identify and prioritize
investment needs for climate change adaptation and reduction of
vulnerability in the medium to long term
- Access to climate finance both for formulation and implementation of
national adaptation plans is required
- The scale of adaptation finance needs are unlikely to be met by any
single source of finance. Tapping and blending public, private,
international and domestic finance will be important to address
scaled up adaptation investments
- The Green Climate Fund readiness window for NAPs/other
adaptation planning instruments is an opportunity for countries to
advance their NAPs process. This will support the development of
adaptation investment pipelines and financing strategies to be
supported by GCF and other international and domestic sources.
• Low Emission Capacity Building Programme (LECB) EC, Germany - BMU/ICI, Australia
• National Adaptation Plan Support Programme (with UNEP) LDCF, SCCF, Govt of Japan (Caribbean and Pacific region)
Integrating Agriculture into NAPs (with FAO)
Germany BMUB
• GCF Readiness Programme (with UNEP, WRI) Germany BMUB
• National Communications Support Programme (with UNEP) GEF
• Climate Public Expenditures & Institutional Reviews (CPEIRs) Canada-SIDA, multiple partners, LDCF, SCCF
• Climate Finance Options Platform (with World Bank) World Bank, UNDP
• National Adaptation Programmes of Action (NAPAs) LDCF
UNDP & Partners’ Readiness Initiatives
THANK YOU FOR YOUR ATTENTION
ROHINI KOHLI
UNDP Lead Technical Specialist, NAP Portfolio
THANK YOU FOR YOUR
ATTENTION