Domestic resources for implementing National Adaptation Plans
- 1. Coordinating Climate- Resilient Development Domestic resources for NAP implementation Anne Hammill May 24, 2016 Photo: Alec Crawford
- 2. • Why? Growing importance of NAP, more support = greater need for coordination, technical discussions • Enhance bilateral support for national adaptation planning and action in developing countries • Est. in 2014 with support from Germany & US • Secretariat IISD • Focus on bilaterals: Major share of adaptation-related ODA NAP Global Network Photo: Alec Crawford
- 3. Improving coordination of adaptation- relevant bilateral support Supporting national-level action on NAP development and implementation Facilitating peer learning and exchange • Targeted Topics Forum on “Financing NAPs: Options for Implementation” Objectives & activities Photo: Beatrice Riche
- 4. The challenge The need for adaptation finance Costs are increasing; in developing countries • 2010-2019: USD 56-73 billion/year (WB 2010) • By 2030: USD 140-300 billion/year (UNEP 2016) • By 2050: USD 280-500 billion/year (UNEP 2016) Most climate finance goes to mitigation Gap between what’s needed and what’s available – relative to int’l public AD finance Can only count part of the current flows of adaptation finance • Private sector? • Domestic public sector contribution?
- 5. Meeting the challenge The role of NAPs More money will go to adaptation • Climate finance is increasing • More to adaptation – need for balance • More potentially available for adaptation Need to be ready for this: NAPs • High level statement of vision, intent and political commitment on adaptation • Medium- to long-term strategic investment plan, articulating needs and priorities Influence internal and external resource allocation – combining and sequencing different sources of finance
- 6. Adaptation finance Private Domestic International • National budgets • Taxes • Non-tax: rents, fees, fines • Other fiscal instruments • Subsidies, Gov’t bonds • bilateral ODA • Multilateral funds • Vertical funds: GCF, GEF, LDCF, SCCF, AF, etc. Public • Private commercial finance • Microfinance • Market based • Debt financing: green bonds • International banks • Multinationals • Philanthropy • Insurance • Private equity & pension funds What resources might be available? • Public-Private Partnerships • Payments for Ecosystem Services
- 7. The role of domestic resources Not a strong focus: countries who must adapt most (LDCs, SIDS) may not have strong domestic revenue streams But seeing moves to allocate resources from subsidy removal, duties to adaptation Infrastructure (irrigation) – climate resilient? Social protection Ecosystem-based adaptation Could see it happening within a country or transferred from developed to developing NAPs can create space to explore these opportunities
- 8. Watch this space Teasing out the fiscal instruments angle – a lot to be gained from exchange of experiences (Network), learn from mitigation Challenges and opportunities for doing this Not just about raising revenues to do adaptation by yourself • Enhance access to international public funds: Demonstrate co-finance, counterpart funding, ownership Reinforces the importance of tracking and building capacity for domestic resource mobilization
- 9. www.napglobalnetwork.org info@napglobalnetwork.org @NAP_Network #NAPGN Financial support provided by Secretariat hosted by