Adaptation under UNFCCC the road from Bonn to Poznan 2008

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1 Executive summary 1 Adaptatin under UNFCCC the rad frm Bnn t Pznan 2008 A Jint WWF Germanwatch paper, August 2008 KEY MESSAGES 1. The Accra sessin and the fllwing mnths have t be used by all Parties t advance their understanding f the elements prpsed s far and t generate extended negtiatin mandates with a view t making substantial prgress by Pznan n the way t Cpenhagen. Pznan has t deliver an utline f the key elements f the Cpenhagen treaty, in rder t negtiate the details fr an agreement by the end f This will nt be achieved with a business-as-usual negtiatin spirit. 2. Adaptatin t climate change suffers frm an implementatin gap. This is als reflected by the way it is dealt with under the UNFCCC, with a fcus n scientific assessments and expert wrkshps but with t little supprt fr wide-spread implementatin. 3. A picture f key elements f a future climate change agreement related t adaptatin is emerging frm the recent negtiatins and shuld serve as the discussin basis. These include the preparatin and implementatin f Natinal Adaptatin Plans, the establishment f reginal centers, an internatinal insurance mechanism and a technlgy-related fund, based n a significantly increased prvisin f financial resurces by thse wh are mst respnsible and mst capable. 4. Establishing a funding scheme which autmatically generates adequate, sustainable, predictable and additinal resurces, with a transparent and fair gvernance structure, and which ensures an effective use f the resurces targeting the mst vulnerable is crucial fr future actin and will heavily depend n develped cuntries. The UNFCCC prcess is rapidly apprximating its culminating pint in Cpenhagen Delegates frm ver 190 natins, their administratins and last but nt least their Heads f Gvernments will decide ver the fate f millins f peple. Will they live up t the expectatins that are upn them and take climate change as serius as science tells us we shuld d? T achieve this, business-as-usual in the negtiatins will nt mve us there fast enugh. A quantum leap is needed bth in mitigatin in develped cuntries and - in a fair and differentiated way - the rest f the wrld as well as in assisting thse mst vulnerable t adapt t the adverse impacts f climate change. This will require expanded mandates fr negtiatrs, serius cmmitments by Heads f Gvernments, near-term actin by Parliaments and strng public actin by civil sciety. Withut that, with a refusal t rerute the develpment paradigm in Nrth and Suth and change ur mindsets, the wrld is seriusly running int truble, with dangerus tipping pints nly a cuple f years r decades away. And that at a time where billin f peple are already suffering frm the impacts f the develpment crisis including pverty, hunger, malnutritin, energy pverty etc. 1 This paper is an executive summary f a mre detailed briefing paper. It can be dwnladed at Cntacts: Sven Harmeling (Germanwatch), harmeling@germanwatch.rg; Kit Vaughan (WWF UK), kvaughan@wwf.rg.uk 1/5

2 All analyses shw that, while adaptatin has gained increasing plicy prfile in the last years, implementatin is still far away frm being sufficient t cpe with the challenge f climate change experienced already tday. Develped cuntries are respnsible fr a large share f the adaptatin implementatin gap, thrugh delivering t little t slwly n mitigatin and thrugh prviding very scarce resurces t supprt adaptatin in develping cuntries. In additin, thrugh nt meeting their Official Develpment Assistance (ODA) cmmitments, which is needed t fight pverty, fd insecurity, insufficient water access etc, peple s vulnerability is increased. Any further delay n far reaching decisins n mitigatin will result in impacts that peple are frced t cpe with. Mre ften than nt they may even be dmed t fail in adaptatin. It is certain that the much discussed target f halving emissins by 2050 (withut baseyear) strngly prmted by develped cuntries is nt ambitius enugh. Whilst develped cuntries are far frm active and ambitius enugh, mst develping cuntries are still in their early stages t pay apprpriate attentin t the challenge f adaptatin. Key issues fr adaptatin prgress under the UNFCCC after Bnn 2008 The mst relevant frum fr crss-cutting discussins in the wider cntext f adaptatin and climate change under the UNFCCC is the AWG-LCA. In Bnn (June 2008), adaptatin was in the fcus, and discussins in the three wrkshps n adaptatin, financing and technlgies revealed numerus verlaps which need t be recgnised. This is the case in terms f plitical linkages and dynamics f the building blcks, but als in terms f the respnses that need t be develped and negtiated fr a new climate change agreement. 2 In additin, nging wrk related t adaptatin under the Subsidiary Bdy fr Scientific and Technlgical Advice (SBSTA) and the Subsidiary Bdy f Implementatin (SBI) is als relevant fr advancing actin n adaptatin under the UNFCCC. These wrkstreams need t be recnciled and crdinated mre strngly. Adaptatin is already taking place, and prcesses such as that f the Natinal Adaptatin Plans f Actin (NAPAs) have assisted develping cuntry gvernments in understanding the prblem. These have thugh nly been a first step: The scarcity f the available resurces cmpared t the high estimated adaptatin csts remains ne f the key impediments, and in that regard particular attentin shuld be given t the fact that sme f the funding scheme prpsals fcused n generating resurces fr adaptatin. This des nt mean that the generatin f resurces is the nly challenge. Hw these will be gverned, fr which purpses they will be spent is als f high relevance. Nt the least, develping cuntry gvernments are expected t address the adaptatin demands f thse mst vulnerable t the adverse effects in the first place, in rder t keep track with their cmmitments t safeguard basic ecnmic, scial and cultural rights, such as the right t adequate fd r water supply. Effective delivery f adaptatin will als be a key requirement in rder t raise the willingness-t-pay f thse that are expected t cntribute adequate amunts f funding. The discussins als shwed that under the rf f the Cnventin adaptatin with its fragmentatin is still nt adequately settled. At the same time, thughts have t be spent n where and hw the UNFCCC can imprve its catalytic rle, e.g. by als supprting prcesses utside f the Cnventin which have a particular expertise in areas that are key t adaptatin, such as in the field f disaster risk reductin. 2 see FCCC/AWGLCA/2008/11 fr a summary 2/5

3 Pssible elements in a future climate change framewrk Frm the AWG-LCA discussins a number f elements emerged which culd cnstitute key adaptatin pillars f a future climate change agreement: Natinal Adaptatin Plans: the preparatin and cntinuus advancement f natinal adaptatin plans with a lngterm perspective, building n but ging beynd the Natinal Adaptatin Prgrammes f Actin (NAPAs). This seems t emerge as a desired next step, with a view t integrating adaptatin int planning and plicy prcesses. In designing these as a part f an agreement, it will be imprtant t ensure a fcus n the mst vulnerable parts f the sciety, t take int accunt lessns learned frm similar prcesses and t ensure that prvided resurces are nt limited t the preparatin f these plans, but will als be used t supprt the implementatin. Cuntries mst vulnerable t climate change, in particular the Least Develped Cuntries and the Small Island Develping States (SIDS), shuld be in the fcus f internatinal supprt. A permanent UNFCCC adaptatin bdy: Adaptatin is currently cvered under the Cnventin in a fragmented way. The SBSTA Nairbi wrk prgramme n impacts, vulnerability and adaptatin assists scientifically and technically. Several SBI agenda items have links t adaptatin, but the discussins under 1/CP.10 shw that the implementatin f adaptatin has benefited t little frm SBI. The AWG-LCA als discusses adaptatin. The rle f such a bdy is nt clear yet, but trying t better crdinate what is happening in the different negtiatin streams culd be ne key functin. Distilling the existing infrmatin with regard t adaptatin implementatin and plicy relevance, in a kind f expert grup, is als desired by many develping cuntry Parties. Whether such a bdy culd als crdinate adaptatin wrk with initiatives utside the UNFCC, als needs t be discussed. Establishment/enhancement f reginal centers/netwrks t prmte knwledge, exchange and capacitybuilding fr adaptatin: Several Parties have addressed the ptential that lies in an imprved reginal cperatin and exchange f infrmatin and experience linked t internatinal and natinal activities. Establishing reginal adaptatin centers r scaling-up the wrk f existing nes that integrate expertise n the different aspects f adaptatin (gathering climate infrmatin, capacity-building, develping adaptatin plicies etc.) culd thus cnstitute an imprtant element t prmte adaptatin learning and implementatin. Technlgy-related institutins: as part f the discussin n technlgy develpment and transfer, prpsals fr specific technlgy-related funds and an enhancement f the way in which technlgy issues are currently addressed under the UNFCCC (e.g. thrugh a Subsidiary Bdy n Diffusin, Deplyment and Transfer f Technlgies (D&D&T) were made. While the discussins implicitly fcus n mitigatin, they are als relevant fr adaptatin technlgies. An internatinal insurance mechanism t supprt cuntries in cping with lsses and damages caused by extreme events: such an instrument wuld particularly supprt thse cuntries that are hardest hit by rare but extreme events in cping with the csts. At the same time it wuld set incentives and prvide supprt fr disaster risk reductin. Reginal insurance schemes culd be supprted by an adaptatin funding scheme as part f a future agreement. The AWG-LCA wrkshp n risk management and risk sharing appraches which is ging t be held in Pznan will prvide an imprtant pprtunity t discuss alternative designs f such a mechanism. Future funding architecture: there is n dubt that a significant increase f financial resurces prvided fr adaptatin in develping cuntries will be needed. It is imprtant t keep in mind that any agreement related t financing will have t address fur different levels: One r mre mechanisms t generate adequate, predictable, additinal and sustainable resurces. This culd be linked t a burden-sharing mechanism which defines hw much r which shares cuntries shuld cntribute (e.g. based n indicatrs f respnsibility and capability). 3/5

4 A gvernance structure which decides hw and n which purpses the resurces are ging t be spend. The fair gvernance structure f the recently established Adaptatin Fund under the Kyt Prtcl may serve as a gd rientatin fr a future scheme. A set f specific funding purpses, such as A) t D), but als mechanisms/facilities existing utside the Cnventin which have prven expertise in areas that are highly relevant t adaptatin, such as disaster risk reductin. Apprved appraches and mechanisms that ensure a transparent and effective use f the resurces prvided t supprt adaptatin in develping cuntries, which culd include guidelines fr preparing Natinal Adaptatin Plans, a prcess t include affected stakehlders, reprting n their implementatin etc. Different prpsals n elements f a funding architecture have been made in the recent negtiatins in Bnn. Fr example, Nrway prpsed the auctining f Assigned Amunt Units (AAU) as a means t generate financing, withut addressing issues f specific purpses, gvernance etc. Switzerland s prpsal addresses hw t generate resurces thrugh a glbal carbn tax but it als suggests the purpses the mney shuld be spent fr: a Multilateral Adaptatin Fund with an insurance and a preventin pillar, and Natinal Climate Change Funds. The Mexican prpsal als prvides ideas fr an internatinal fund, cntributing t it and access t its resurces. Eventually, a funding scheme has t find slutins n all these levels, and each ne entails different questins t be answered. But fr the negtiatins it is very imprtant that these different levels can be decided n relatively independently. Fr example, the establishment f an internatinal insurance mechanism may depend n a sufficient level f funding, but fr its functining it des nt matter whether these resurces cme frm the auctining f AAUs, a carbn tax r any ther mechanism. A principle-based analysis undertaken in this paper reveals that mechanisms t generate resurces that are independent frm natinal budget decisins have a better perfrmance with regard t predictability, adequacy, sustainability and additinality. These include auctining f AAUs, the extensin f the CDM Adaptatin Fund levy t Jint Implementatin and Emissin Trading, and internatinally cllected adaptatin levies n e.g. internatinal aviatin and maritime transprt. It is imprtant t bear in mind that adaptatin will nt be the nly funding purpse in a future agreement. The guiding principle fr disbursement shuld be t deliver adaptatin based n needs identified at the natinal and sub-natinal level, in particular addressing the needs but als the capabilities f thse peple mst vulnerable t climate change. Mving frward in Accra and Pznan The elements identified here deserve mre detailed cnsideratin and discussin by all Parties. Each negtiatin frm nw n has t deliver substantial discussin and substantial prgress n the pillars f the future plitical climate change architecture. As sn as pssible, specific textual prpsals are needed t prvide a sund basis fr negtiatin. Accra is the next step where prgress in the jint understanding has t be achieved. The chair f the AWG-LCA has prpsed t wrk in three cntact grups which address enhanced actin n adaptatin (including technlgy and finance), enhanced actin n mitigatin (including technlgy and finance) and institutinal arrangements. 3 These ffer space fr further discussins n the prpsed elements. Identifying and answering key questins t evaluate prpsals and flesh them ut further will be imprtant in the run-up t Pznan and fr the wrk prgramme 2009 f the AWG-LCA, which is likely being agreed n in Pznan. In case f adaptatin many gd prpsals have been made that taken tgether culd be the basis fr a cmprehensive adaptatin building blck fr the pst-2012 treaty. It is nw time t wrk these ut further. A key questin will be that f the cllective plitical will related t these different elements, in particular the generatin f financial resurces. 3 FCCC/AWGLCA/2008/10 4/5

5 Between Accra and Pznan, Parties have t mve frward with defining their psitins n these and ther elements. Onging discussins under the SBI and SBSTA, including the pprtunity fr making specific submissins, will als add t the verall understanding n hw t mve frward with adaptatin nw, up t and beynd Future UNFCCC adaptatin framewrk Funding mechanisms 2% Share f prceeds n CDM, JI, ET Individual/cmpany based levy (e.g. aviatin, maritime transprt) Auctining f AAUs targeting AI and sectrs with emissin bligatins Other purpses, e.g. REDD fund? Mitigatin thrugh carbn markets and technlgy fund? Internatinal Funds Adaptatin Fund (KP) [culd be merged w ith MAF] Multilateral adaptatin fund (MAF): 2013 $10 bn, 2020 $30 bn Multilateral Technlgy Cperatin/Acquisitin Fund LDCF and SCCF cnclude in 2012? Criteria and rules fr funds agreed by COP Fair gvernance structure? Institutins and activities funded Cncrete adaptatin prjects and prgrammes Reginal centers/ netw rks Internatinal Insurance Scheme Preparatin AND implementatin f Natinal Adaptatin Plans Strategic spending utside f UNFCCC (e.g. DRR facility) Bilateral ODA funds Guidelines, Advice, Mnitring? Nn-AI gvernments respnsibilities: effective implementatin, fcus n mst vulnerable grups Technical guidance SBSTA Adaptatin expert grup New SB Technlgy SBI Figure: Hw the UNFCCC adaptatin framewrk culd lk like in the future 5/5

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