Session 6: Assessing Climate Risks and Vulnerabilities in Market Systems Nicole Clot Senior Advisor Adaptation to Climate Change Annick Vollmar, Advisor Market Systems Development HELVETAS Swiss Intercooperation UNFCCC/ITC Workshop 29 October 2018, Geneva
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Session 6: Assessing Climate Risks and Vulnerabilities in ... · Through Multi-Stakeholder initiative improve income and food security of rice and cotton producers. Market Systems
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Session 6: Assessing Climate Risks and Vulnerabilities
in Market Systems
Nicole Clot
Senior Advisor Adaptation to Climate
Change
Annick Vollmar, Advisor Market Systems
Development
HELVETAS Swiss Intercooperation
UNFCCC/ITC Workshop
29 October 2018, Geneva
Set-up of the Mini-Workshop
1. Setting the scene
2. The Guideline Why this Guideline?
What is new about the Guideline?
How did we do it? How does it work?
What are the key lessons?
3. Application in the coffee
sector with reference to other
sub-sectors
4. Group Work
5. Plenary Discussion
About HELVETAS
Project Examples
Addressing youth unemployment through job creation, labor
matching and skills development
Improve income of local population through improved access to
services and markets
Improve income of cashew and peanuts producers through
long-term market partnership with a trading company
Through Multi-Stakeholder initiative improve income and food
security of rice and cotton producers
Market Systems Development (MSD)
• MSD is an overarching approach being used in different such as
private and financial sector development, vocational skills
development but also in other thematic fields like governance,
infrastructure, environment, policy and science.
• The approach provides a set of principles, frameworks, and
good practices that guide the analysis of market systems and
development interventions, which bring about socially inclusive
and pro-poor change.
• Drawing from adaptive management principles, the approach
can help new or ongoing activities become more effective by
strategically thinking through questions related to sustainability,
scale and impact.
Guiding principles of MSD approach
Systemic action
• understandingwhere systems are failing to serve the needs of disadvan-taged / excludedgroups, and acting to correct those failing.
Sustainable change
• deliveringsustainable outcomes by better aligning key systemic functions and players with the incentives and capacity to work more effectively.
Large scale impact
• targetinginterventions towards more inclusive systems that serve a large number ofdisadvantaged/ ecluded people
Facilitative role
• determining a catalytic purpose for the development agent that stimulates, but does not displacesystemic functions or players.
Gender Equity and Social Inclusion
• identifying and addressing systemic constraints that prevent disadvantaged and marginalised groups to access economic opportunities (political freedoms and social facilities)
A matter of effectiveness
Many projects do not
have an immediate
focus on systemic
change.
They provide direct
services/solutions to
beneficiaries/target
groups themselves
Results may be
inclusive, but small in
scale and poor in
sustainability
Social objective
(inclusion)
Performance:
access & usage
System change
Systemic
intervention
Why the Guideline – Learning Journey
▪ Increasing loss in yields due to climate variability/change in our value chain projects.
▪ First experience: Risk and vulnerability assessments in market system projects (Armenia, Georgia and Honduras).
▪ Growing interest for addressing climate risks and vulnerabilities in MS in a systematic way.
▪ Identification of emerging opportunities due to the changing conditions.
Climate change is the greatest and widest-ranging market failure ever seen,
as in most markets, the effect of this market dysfunction falls most on those
least able to take action to escape its consequences (Stern Report).
The Guideline (i)
For whom
▪ Small/medium enterprises
▪ Actors in the market system along the
value chain
▪ Practitioners supporting the process of
making value chain more climate
resilient
Purpose
▪ Understand climate
risks/opportunities in their sub-sector
▪ Develop a comprehensive climate
risk management approach for the
enterprise
▪ Move towards a proactive attitude
with long-term perspective
The Guideline (ii)
Key Features
▪ Demand-driven: Guideline based on first hands-on experience in ongoing market system projects.
▪ Joint-effort: Experts from the Advisory Service Department (Climate Change/Market System) and the country program of Nepal.
▪ Not a new tool, builds on existing approaches: Bringing the two approaches – MS and CC – together.
▪ Flexible: To apply and adjust the Guideline to their local context and needs.
ApproachMarket systems development
project cycle
1. Setting the strategic framework
2. Understanding Market Systems
3. Setting the Vision
4. Facilitating systemic change
5. Measuring results
Adaptation to climate change
1. Identify adaptation needs - risk and
vulnerability assessment
2. Identify ACC/DRM options
3. Prioritize and choose the best
ACC/DRM measures
4. Plan and implement ACC/DRM
measures
5. Develop a M&E system or add
indicators to an existing M&E system
Tools for risk assessments• CRiSTAL (Community-based Risk
Screening Tool, Adaptation &
Livelihoods)
• CEDRIG (Climate, Environment and
Disaster Risk Reduction Integration
Guideline)
• PROVIA’ Guideline on Assessing
Vulnerability, Impacts and Adaptation
• Participatory Appraisal Tools
The Operational Guide for
Making Markets Work for the
Poor Approach (The Springfield
Centre, 2015).
8-Step Approach
MODULE ARisk and
Vulnerability
Assessment
MODULE B
Identification
and
Implementation
of ACC/DRM
Measures
8- Step approach towards climte resilient subsectors
1. Map core functions, support functions and roles/regulations in the selected
market system;
2. Identify current and potential future hazards, impacts and current coping
strategies;
3. Identify each function’s vulnerability to climate risks;
4. Identify most resilient subsectors based on a scoring matrix.
5. Identify possible ACC and DRM measures;
6. Prioritize and choose the best/most appropriate measures.
7. Plan and implement the selected measures.
8. Monitor and measure results.
Risk and vulnerability assessment in sub-sectors and their priorization at the design and planning stage
Identification and implementation of adaptation and