Valentino Piana Ankara, 19th November 2009 Innovative Schemes for Financing Adaptation and Enhancing...
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Transcript of Valentino Piana Ankara, 19th November 2009 Innovative Schemes for Financing Adaptation and Enhancing...
Valentino Piana
Ankara, 19th November 2009
Innovative Schemes for Innovative Schemes for
Financing Adaptation and Financing Adaptation and
Enhancing Technology Transfer Enhancing Technology Transfer
www.economicswebinstitute.orgCutting-edge research & implementation consulting
Contents
1. A qualitative evaluation of the costs of climate change and adaptation
2. The adaptation cost curve (by strategy type) - qualitative estimates
3. Conventional and innovative sources for adaptation funds
4. Enhancing technology transfer: the debate
5. Conclusions
www.economicswebinstitute.orgCutting-edge research & implementation consulting
Systemic relevanceAwareness Dominance
0
40
80
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07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Climate change damage
Adaptation expenditures
1. A qualitative evaluation of the costs of climate change and adaptation
www.economicswebinstitute.orgCutting-edge research & implementation consulting
2. The adaptation cost curve (by strategy type) - qualitative estimates
-30
-10
10
30
50
70
90
110
Cost
Savingstrategies
Frameworkstrategies(process)
System-wideintervention
Protection of keyassets
Frameworkstrategies(measures)
www.economicswebinstitute.orgCutting-edge research & implementation consulting
International funds (from COP15 new facilities, from WB,…)
Local mobilization
1
2
3
4 Insurance schemes4
4 “Polluters pay” + “Profit tax from CC gains”5
Domestic tax ---> PRODINT
3. Conventional and innovative sources for adaptation funds
www.economicswebinstitute.orgCutting-edge research & implementation consulting
International funds (from COP15 new facilities, from WB,…)1
“Adaptation Framework / ProgrammeInternational Insurance Facility / mechanismCompensation and rehabilitation component
Adaptation Commitee / Subsidiary Body
National Adaptation Plans
Regional centres for adaptation”
(AWG-LCA Non-paper n. 41, 5/11/2009)
3. Conventional and innovative sources for adaptation funds
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Who pays
How and who managethe fund
What to fund
How much
Large-enough international funds need to be collected from many countries, from both public and private sources, credibly managed
and spent on uncontroversial actions
International funds (from COP15 new facilities, from WB,…)1
3. Conventional and innovative sources for adaptation funds
www.economicswebinstitute.orgCutting-edge research & implementation consulting
Distribution of local adaptation plansLegenda: EE1 = lack of adaptation plan in areas at risk: the"blue"
agents pay; EE2 = good and cost-effective adaptation plan:
the "red" agents receiveBetween EE1 and EE2: Neutral area of unsufficient local plans to be
financed after improvements
2 Domestic tax ---> Local mobilization + PRODINT3
3. Conventional and innovative sources for adaptation funds
www.economicswebinstitute.orgCutting-edge research & implementation consulting
Distribution of consensus for PRODINTLegenda: EE1 = the"blue" agents are against (but guilty);
EE2 = the "red" agents receive (and are in favour)Between EE1 and EE2 = they will receive next time (so they
are in favour)
National and international
fundscan improve
these balances,
reaching an even wider majority of consensus
2 Domestic tax ---> Local mobilization + PRODINT3
3. Conventional and innovative sources for adaptation funds
www.economicswebinstitute.orgCutting-edge research & implementation consulting
Public-driven, private-delivered instrument to quantify risk in specific areas
and spread it in uncorrelated conditions
It is possible a mandate to cover areas at risk
It should be thoroughly explored
However, it remains possible that private assurances will ask too much and
re-assurance business will be afraid of systemic risk
4 Insurance schemes4
3. Conventional and innovative sources for adaptation funds
www.economicswebinstitute.orgCutting-edge research & implementation consulting
Damage-based request for compensation
Strong linkage to mitigation
If any business or industry gains from the change in climate (e.g. shipments through the Arctic Sea),
their profits should be taxed away to fund adaptation
International agreements needed
4 “Polluters pay” + “Profit tax from CC gains”5
3. Conventional and innovative sources for adaptation funds
www.economicswebinstitute.orgCutting-edge research & implementation consulting
International institutions from COP15
“Executive Body on TechnologyTechnology Incentive for Development
and TransferTechnology Capacity Building Program
Technology Mechanism/National policies
Regional Hubs for Technology Tranfer, Sectoral Innovation Centers,
Executive Coordinating Council
Climate Technology CentreClimate Technology Network/
Technology Action Framework/A financing and technology mechanism
International Technology Action PlanNational Technology Action Plan
Global Technology Pool for Climate ChangeGlobal Technology IPR Pool for Climate Change
Technology Development and Transfer Facility/service
Climate Technology Hugs and Corps
Technology Innovation Centres”
(AWG-LCA Non-paper n.47, 6/11/2009)
4. Enhancing technology transfer: the debate
www.economicswebinstitute.orgCutting-edge research & implementation consulting
Conclusions
Financing adaptation to climate change will exacerbate fiscal problems and international difficulties in solidarity.
But properly managed and channeled, the overall architecture of COP15 and beyond can be a crucial leverage for sustainable
development at large.
Technology is not the only solution: behavioural, organisational and infrastructural components are essential.
However, trade-offs between costs and effectiveness can be improved by proper and appropriate technology change.
Fast developing countries with large absorption capacity should be at the forefront of international dialogue.
www.economicswebinstitute.orgCutting-edge research & implementation consulting
For further information and support feel free to contact us!
Thank you for your kind attention.
Valentino Piana <[email protected]>
Mobile phone: +39 349 36 10 476