Supporting Public and Private Sector Decision

Making the Case for Ecosystem-Based
Approaches to Adaptation
EBA in Mountain Ecosystems
Lead Agency
1. Development of methodologies and tools
for EbA decision-making in mountain
2. Application of methodologies and tools at
ecosystem level
3. Implementation of EbA pilots at ecosystem
4. Development of business case for EbA at
the national level
Making the case for EBA
What do we want to do?
We want to make the case to
government to:
a. use EBA approaches as
part of the suite of options
to manage climate risk
effectively in mountain
b. enhance enabling
environments for scalingup EBA more broadly as
part of climate risk
management strategies
How can we do this?
Assess costs and benefits of
EBA options in key sectors in
mountain regions (including
evidence from sites)
Produce policy papers that
guide strategies and
resource allocation in sectors
Make the case to
government through
steering committee
Develop and complete a
Policy and Financing
Framework for EBA scale-up
beyond mountain regions –
identify opportunities to
Experience from other areas of UNDP’s work
1. Catalyzing Adaptation Finance in developing
2. Costing the gap: Investment and Financial Flows
3. Capacity building: Training on cost–benefit
4. Climate Change Public Expenditure Review
5. EBA: Making the case to government
1. Catalyzing adaptation finance in
developing countries
Enhance the capacity of
policy makers to identify
appropriate mix of public
instruments including public
finance to catalyze larger
private investments
Create an enabling
environment including
sectoral policy frameworks,
domestic technical
expertize, financing
channels, and
administrative procedures
Attract innovative finance
to provide additional
financial incentives
UNDP-GEF Services to Catalyze Adaptation Finance
(I) Assist Governments (e.g. through
national adaptation plans) to identify
priorities from perspective of:
(a) preserving existing infrastructure,
businesses and livelihoods;
(b) new business opportunities
(c) no regret options
(II) to identify barriers to priority
(III) identify risks generated by these
barriers that prevent the requisite
(IV) what are the de-risking
(V) What are source of finance to
support de-risking strategy
In support of inclusive and green growth, reduction of inequalities
via Green, Low Emission Climate Resilient Development
Private sector increasingly important
 The main drivers of private sector investment will be:
• Preserving existing infrastructure, businesses and livelihoods
(E.g. SMEs currently engaged in rural agri-businesses, climate resilient
• Developing new businesses
(E.g. business diversification such new microfinance/insurance
products, off-farm employment in new markets, mobile phone
operators and climate information dissemination)
• No-regret investments (adaptation is an ancillary benefit)
(E.g. coastal communities develop mangrove belts increase
incomes and meet energy needs and protects shorelines from
expected coastal hazards (storm surges, etc.)
2. Costing the gap:
Investment and Financial Flows
“Bottom-up” quantification of costs
Country-level baseline and
reference scenario costs for
sectoral adaptation through
to 2030
16 countries
Bangladesh, Colombia,
Costa Rica, Dominican
Republic, Ecuador, Gambia,
Honduras, Liberia, Namibia,
Niger, Paraguay, Peru, Togo,
Turkmenistan, Uruguay
 39 I&FF assessments
completed since 2008
Examples from Costa Rica
Total cumulative sum of investments
(2010-2030) in biodiversity sector, by
investment type
Annual incremental cost of investments
(2010-2030) for biodiversity & water
Adaptation scenario
IFF Results: Headline numbers in EBA countries
• ecosystem management costs for agriculture in San
Martín: US$ 65.8 million, and Junín: US$ 75.4 million
• Ecosystem-based integrated water resource
management US$ 638.1 million
• capacity building process
• National issues papers – Glacial Lake Outburst Flooding
3. Capacity building:
Training on Cost Benefit Analysis
UNDP/ADAPT Asia-Pacific ECCA Programme
• "Assessing Costs and Benefits of Adaptation: Methods
and Data”
• 2-year Capacity Building Programme on the Economics
of Climate Change Adaptation, Funded by USAID
• Bangladesh, Cambodia, Lao PDR, Indonesia, Malaysia,
Maldives, Mongolia, Nepal, Philippines, Sri Lanka,
Thailand, and Vietnam
• Water and agriculture adaptation projects used as case
studies for the application of cost-benefit analysis
• Mentors assigned to provide technical support to
country teams on data collection, project and sectoral
Nepal Case Studies
• Water project selected as case study: Kalleritar Irrigation
System, funded by Asian Development Bank (during
rehabilitation stage) and led by Government of Nepal
• Agriculture project: Cost Benefit analysis of Paddy production
in the Community Managed Irrigated Agriculture Sector
Project- Dhading District
• The team aims to undertake a nation-wide (250 -300
observations) primary data collection for agriculture sectoral
• The team will conduct secondary water collection in the Khani
Khola watershed for the water sector analysis
4. Climate change public expenditure review
Climate Public Expenditure Review Methodology
• Cross-government Steering group led by Finance and Planning
• Public Expenditure Reviews (of World Bank)
• Sectoral focus: Local government (Bangladesh, Nepal), Transport
(Cambodia and Samoa), Irrigation (Thailand)
• Review of policies and institutions including perverse incentives
• Quantity and quality of climate expenditure:
• Review whole budget
• Expert assessment of climate “relevance”
• Positive and negative expenditure
• Action plans for implementation –
• incorporation in budget framework
• large development projects,
• disaster risk institutions
Complementing Existing Initiatives In Nepal
• Pilot Programme for Climate Resilience – Climate Investment
• Hariyo Ban programme – USAID
• Multi Stakeholder Forestry Programme
• Community Based Flood and Glacial Lake Outburst (GLOF)
Risk Reduction – LDCF-funded, UNDP-managed
• Implementation of NAPA through ecosystem management
– LDCF-funded, UNEP-managed
• UNEP/UNDP Poverty and Environment Initiative
• PEI – Climate Change Public Expenditure and Policy Review
• PEI / UN Habitat Urban EBA research in Asian cities
Complementing Existing Initiatives In Peru
• National and Regional Climate Change Strategies
• Regional Participatory Development Plans
• Nor-Yauyos Cochas Reserve Management Plan
• Payments for watershed services in Cañete River Basin
• PRAA costs and benefits of adaptation to glacier retreat
• USAID Glaciers to Coast and Arequipa Adaptation Project
• High Andean micro-watersheds - UNDP, UNEP, FAO
• UNDP TACC development & investment planning
• UNDP Investment & Financial Flows: agriculture & water
• IADB capacity building, mainstreaming, technical
cooperation, micro-finance
Complementing Existing Initiatives In Uganda
• USAID-funded project implemented by IUCN and ACCESS
on “Building a Resilience Framework to Support Climate
Change Adaptation in the Mt Elgon Region”
• GIZ-funded project with Ministry of Environment and Water
Affairs to produce a “Uganda National Climate Change
Draft Costed Implementation Strategy”
Part of process of developing the National Climate Change
Includes Design Report on “possible Engineering Adaptation
options” for floods, water availability
Ongoing process by Climate Change Unit, Permanent
Secretaries’ Forum, multi-stakeholder Technical Working Group
Link through National Climate Change Policy Committee
which coopted project partners and German Embassy rep for
EBA steering committee
Possible Approach To Component 4
Phase 1: Preparation
Recruit consultants
Brief consultants
Phase 2: Analysis
Analysis of opportunities
Sectoral cost benefit analyses
Phase 3: Intervention
Preparation of policy papers
Policy& finance processes
Phase 4: Outreach
Capacity devt / training
Making the case
Nepal: Addressing Gaps To Complement Other Initiatives
1. Make the sectoral case on use of EBA as part of an integrated suite
of approaches to adaptation – cost benefit analysis through selected
case studies from Panchase and other mountain regions:
2. Technical training for four sectors on implementation of EBA and
hybrid approaches
Methods and case studies
Technical specifications
Results and evidence
Peru: Analysis of Needs and Opportunities
• Need for tools to help government adapt existing policies and
finance mechanisms to incorporate EBA
• Opportunities in public investment to feed into current processes
(PACC, IPAC, Green Investment) to adjust for additional
demands of addressing climate variability
• Need to broaden existing typologies of public investment to
incorporate EBA-type interventions - including guidelines,
justification for them, and evaluation criteria for proposed
• Examples of interventions are EBA approaches to water resource
management in high altitude pastures, or managing water levels
in glacial lakes at risk of flooding
• There is also a need to explore how ongoing operating costs of
EBA can be financed (in addition to capital investment)
Analysis of Needs and Opportunities contd
• Detailed costing of all potential EBA work / quantification of an EBA
finance "gap" would not be likely to be used by government
• More useful is quantification of benefits in relation to costs so that the
potential rate of return on state investment can be calculated
• And comparative cost benefit analyses of nature-based (green) vs
engineered (grey) options for mountain ecosystems where feasible
• Where an engineered alternative does not exist, establishing unit
costs / cost coefficients is still useful, as well as analysing benefits
• Benefits analysed should include the full range, with an emphasis on
socio-economic benefits that tie in with rural development objectives
• Van use data and evidence from pilot site in Nor-Yauyos Cochas
Reserve, incorporating local knowledge, and data from other cases
• Selected private sector role-players (e.g. hydroelectric, mining) may
also be able to use our tools to guide corporate social investment
Potential Focus for Component 4 in Peru
• Develop a toolkit together with and for use by the Peruvian
Ministry of Economy and Finance, providing a typology and
guidelines for public investment in EBA
• Identify several investment types for EBA to vulnerabilities in
mountain ecosystems
• For each type, develop a set of products:
Technical guidelines on intervention (and alternative where relevant)
Case study from EBA Component 3 / other work in Peru / elsewhere
Cost-benefit analysis (and alternative where relevant)
Presentation on outcomes for key role-players
Training module with material and presentations
Possible timeline for work on Component 4
Phase 1: Preparation Q3-Q4 2013
Recruit consultants
Brief consultants
Phase 2: Analysis Q1-Q3 2014
Analysis of opportunities
Sectoral cost benefit analyses
Phase 3: Intervention Q4 2014 – Q1 2015
Preparation of policy papers
Policy& finance processes
Phase 4: Outreach Q2-Q4 2015
Capacity devt / training
Making the case
Inputs from countries
on needs and opportunities

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