Climate finance pauw (die)private sector adaptation&role ccxg gf march2014

© 2012 Deutsches Institut für Entwicklungspolitik (DIE)

Replicating and scaling up adaptation interventions - and the role of the private sector

Pieter Pauw

19 March 2014


Introduction

1. Challenges in scaling up and replicating adaptation interventions

2. Role of the private sector

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Vayring contexts and scopes

Based on:

1. Report (2): AdapCC & Rainfall index insurance in India

2. Additional (3): Mobile Weather Alert project, SPACC, Sangana PPP

3. Previous and current work on LDCs, Zambia, NWP PSI, ...


Interest of private sector in adaptation

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Reducing risksAdapt to direct and indirect risks to stay in business or maintain level of profit under changing climatic conditions

Business opportunities• market for new and innovative

products, needed under DRR or changing climate conditions

• publicly funded adaptation projects increasing

Private sector has a key role in adaptation including in developing countries...

Visible level of clearly identifiable adaptation activities and investments may understate the actual activity level (Agrawala et al., 2011)

Based on Pauw & Pegels, 2013

Private sector‘s appetite for adaptation/motivation to adapt


Interest of private sector in adaptation (II)

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....but what is the private sector’s role in financing adaptation?

To large extent a political debate: - ‘Most businesses probably do not mind whether an

activity can be labelled adaptation or not – what counts is business continuity’ (Pauw & Pegels, 2013)


Research challenges

Specific challenges in research :– Few cases could be identified in developing countries

even though adaptation happens in every sector

– Actual adaptation benefits of interventions not always clear

– Diverse but incomplete project documentation (for our purposes)

2-5 case studies: no conclusive analysis, but first insights in replicating and scaling up of adaptation

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Analysed projectsProject Partners Aim

AdapCC Cafédirect, GTZ support small-scale coffee and tea farmers in identifying adaptation strategies and implementing adaptation activities

Reducing Farmers’ Exposure to Weather Risk

ICICI Lombard, BASIX, WB

sale of innovative rainfall index insurance contracts to small farmers

SPACC CCCCC, WB, GEF, Coconut Bay Beach Resort and Spa

Water m’ment: rainwater harvesting and wastewater reuse in luxury resort on St Lucia

Mobile Weather Alert project

Ericsson, MTN, Uganda Met Service, WMO, Met Office

weather information provision to improve dissemination of storm warnings

Sangana PPP GIZ, Comic Relief, Sangana Commodities Ltd, Tchibo GmbH, WB

Develop additional, voluntary climate component to ‘4C Code of Conduct for sustainable coffee’; train coffee producer organisations

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Aspects of up-scaling and replication

Aspects are interrelated

Enabling environment: broader than public policies

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1. Institutional framework

PS adaptation finance as a topic is new– Climate finance institutions struggling to bring

private sector on board (e.g. PPCR in Zambia)

– NAPAs hardly include private sector (Pauw & Pegels, 2013);

Too few and too different case studies to be conclusive on decision-making frameworks or actor constellations

Adaptation just one of the aims of the interventions

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2. Demonstrating successful interventions

Self-sustaining

Tools: CC projections, Risk and Opportunity Analysis (GIZ/Cafédirect); Environmental Management Plan (SPACC); Certification (for sustainable coffee), guidebooks (Sangana PPP), workshops, ...

Mid-term & ex-post evaluations: project (e.g. GIZ, WB), scientific evaluation (e.g. MetOffice), continuous feedback (e.g. farmers, fishermen),

But how to target and measure adaptation benefits?– SPACC reduced water use; EMP measured neither CC

impacts nor adaptation effects

– Other projects deal with weather risks (rather than..?)

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3. Enhance enabling environment

Projects themselves raise awareness; ‚thinking from a risk perspective‘

Incorporate public actors in project implementation

Identify tools as well as actors (e.g. public sector, producer network, devt cooperation)

Demonstrate success (tools and evaluation) to public and private sources of finance, (national) government, etc.

Financing for replication/up-scaling of adaptation is a big challenge (e.g. Sangana PPP, SPACC)

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Conclusion (I)

Study comes (a bit too) early for adaptation (case specific information vs generic lessons)

Information base: no standard procedure for M&E; difficult to target and measure adaptation benefits– Trade-offs between efficiency and safeguards

– But tools and evaluations useful for up-scaling and replication

Building partnerships TEAM PLAY is key for replication and up-scaling

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Conclusion (II)

adaptation is always case specific and requires tailor-made interventions on a local scale – yet scaling up and replication more likely if

• intervention designs fit in a broader programme or policy framework

• Simple eligibility criteria

• Standardise formats where possible

Weather risk vs climate change – adaptation as a side-benefit?

Unclear whether these projects contribute to reaching the USD 100 billion climate finance p.a.

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© 2012 Deutsches Institut für Entwicklungspolitik (DIE) 13

Thank you for your attention

Pieter Pauw

German Development Institute

Tulpenfeld 6 / 53113 Bonn

Tel: +49 (0)228-949 27-204

Email: [email protected]

Website: www.die-gdi.de / www.pieterpauw.eu

mailto:[email protected]

http://www.die-gdi.de/

http://www.pieterpauw.eu/

Climate finance pauw (die)private sector adaptation&role ccxg gf march2014

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