POSSIBLE ACTIONS TO FURTHER ADVANCE ADAPTATION

Several options are available to further advance international action on adaptation. This section provides an inventory of the diverse proposals, summarized in Table 18.

Implementing first adaptation projects identified in, e.g., NAPAs or National Communications

Contributions to that fund are voluntary. It is currently the only of these three funds, which is operational.

As of 15 April 2004, total contributions received amounted to US$ 16 million, with outstanding pledges in the further amount of US$ 18 million (GEF, 2004c). As of the same date, pro

were approved.⁹

The national action plans for adaptation (NAPAs) were established to serve as a

‘simplified and direct channel of communication of information relating to vu

adaptation needs of least developed countries’, and may act as a first step in the preparation of National Communications to the UNFCCC (5/CP.7, II.15). The NAPA identifies urgent and immediate adaptation needs of LDCs for adapting to the adverse impacts of climate change, and sets out a list of priority activities, as identified by the LDCs themselves (according to justification criteria). Guidelines have been established for the prep

COP 9 decided that now also the implementation of priority ac

NAPAs can be funded by the LDC fund (decision 6/CP.9). The “agreed full costs” of such adaptation projects will be funded, not only the incremental costs.

3. The adaptation fund is a Kyoto Protocol fund (Art. 12.8 of KP, (established under 10/CP.7), which is to support “concrete adaptation projects and programmes” in developing countries. It will be financed from the "share of the proceeds" on the clean development mechanism and other sources of funding. It is to be used to “assist develop

climate change to meet the costs of adaptation”.

The total envelope of the fund depends on the level of CDM activity (which depends on the level of domestic action of each developed country to reach its Kyoto target). The fund is not yet operational. A rough estimate of the share of proceeds from CDM could be 60 million US$¹⁰ over the first commitment period.

A volume of these funds has not been agreed, but at COP7, a joint political declaration was made by the European Community and its Member States, together with Canada, Iceland, New Zealand, Norway and Switzerland, on their preparedness to collectively contribute €450 Million annually by 2005 with this level to be reviewed in 2008. It includes contribution of the activities above, i.e. “contributions to GEF

and multilateral funding additional to current levels;

funds, the Kyoto Protocol Adaptation Fund and the LDC fund; and funding deriving from the share of proceeds of the clean development mechanism following entry into force of the Kyoto Protocol.”

Developing countries have expressed the wish to have greater consistency and commitment to climate change funding. The new funds only slowly become operational. The C

a

9 Bangladesh, Benin, Bhutan, Burkina Faso, Cambodia, Cape Verde, Central African Republic, Chad, Comoros, Congo DR, Djibouti, Eritrea, Ethiopia, Gambia, Guinea, Haiti, Kiribati, Lao PDR, Lesotho, Liberia, Malawi, Maldives, Mali, Mauritania, Mozambique, Niger, Samoa, Sao Tome and Principe, Senegal, Sudan, Tanzania, Togo, Tuvalu, Uganda, Vanuatu, Yemen, Zambia

10 Calculated as 2% of the CDM market from den Elzen and Moor (2001)

95 ity activities identified in the NAPAs or in national communications. countries are preparing NAPAs. It may be

that ed NAPAs dy be or 2004 eking

implementation. icat available from 120 Non-Annex I countries.

un co f adequa times and the

inancing at ifferent LDC on

s for N ations clearly state concern of adequacy of funding for adaptation partic fina itments of Annex I countries to date. LDCs

and other develo tries are lo clear leve ces

t / C.4)

deve ntries demonstrate the clear willingness to

atio conc ding. The place n enter

into place soon, to be e necessary resources. As a first step this could be achieve ommitm port NAPA implementation via the LDC fund and the new strategic GEF priority “pil eration on”. This could

help to initiate the ss for ion o

e t GEF fund of glob

be se en he f be

placed on the ne h es n

Designing insurance schemes

surance schemes would be a means to help developing countries to deal with the negative

sures on developing countries. If a way

demonstrate to developing countries a commitment to addressing their rns.

an international insurance are described below (A.

ce 2003, UNEP 1993):

ouse gas emitters are liable for climate-related disasters in

would be The continuation of the process would be to implement prior

So far 37 may alrea ions are

expected complet available f and se

National commun tries have raised

NAPA implement APA implement ularly in view of Developing co

issue of f strategie

ncerns o ion is no d

cy of funding several

. Submissions from s on views ncial comm

oking for a SBI/2003/MIS ping coun

o adaptation (FCCC

commitment on the .

l of resour to be dedicated

A way forward support adapt

would be that n projects with but they have d through a c

loped cou rete fun filled with th

instruments are in or ca ent to sup

oting an op implementat

al approach to adaptati f adaptation projects.

funding proce aken about the en how this principle w funds, for which t Care has to b

remains to

principle to can be implem is principle do

incremental costs ted for adaptation. T ot apply.

al benefits. It ocus could

In

effects and impacts of climate change. Since the attribution of liability for current extreme climate change effects is placed with the historically largest greenhouse gas emitters (the main target amongst these being the developed countries, seen to benefit the most from their emissions), developing countries expect large emitters to compensate.

Article 4.8 of the Convention refers to insurance as a means to minimize adverse effects of climate change and/or the impacts of response mea

could be found to establish a system of insurance at international/global level to compensate for the adverse effects of climate change (for e.g. insurance against extreme weather events), then it would provide a vehicle for structured funding of adaptation measures by developed countries, and

adaptation conce

Two approaches to establishing Michaelowa 2003, M.J. Ma

1. Insurance based on contributions from emitters (non-risk community): Taking as an example the increase in number and severity of natural disasters in DCs – on the principle that greenh

developing countries - a system of insurance could be envisaged where the emitters pay the premium of developing country losses from climate change (see also Müller 2003).

This could be accompanied by a small share of loss-bearing on the part of the insured developing countries so as to avoid moral hazard.

This concept was taken further in a proposal put forward by AOSIS (Alliance of Small Island States) in 1991. AOSIS proposed the idea of an “international insurance pool” to cover loss risks experienced by DCs as a result of climate change impacts (in case of small island states, losses will relate to sea-level rise), and to distribute the financial burden amongst developed countries. Under the proposal, the insurance pool

funded via mandatory contributions from developed countries, based on their level of CO2

emissions and their GNP (50/50 weighting). The loss-sharing approach in the AOSIS proposal is similar to that used in the OECD Nuclear Damage Convention (1963) and Oil Pollution Damage Convention (1971). Even though the AOSIS proposal addresses the concerns of its members about sea-level rise, the same concept could be applied to other groups of countries and other climate change damages.

96 contributions from the at-risk community (persons,

n of damages to be included in the

uch as the regime on e.g.

s seen as making more efficient

change. Furthermore, it

integration (VARG 2003). A further stage could be a target for

ISDR). Integrating adaptation into the risk management strategies that 2. Insurance based on contributions from affected countries (at-risk community): This type of

insurance comprises, as a first basis,

enterprises, governments at risk) e.g. via commercial, public insurance. International bodies, or governments can subsidize this type of system for e.g. by providing forms of reinsurance.

Regardless of the architecture of an international insurance system, more work still needs to be done with respect to determining the actual valuatio

scheme, and ultimately the level of funding required from developed countries.

Given the past discussion, it seems unlikely that a discussion on insurance of climate change damages can be held in isolation from insurance for adverse effects of “response measures”.

Either both issues have to be de-coupled or progress has to be made on both areas. In addition, it seems likely that any system of insurance can be initiated by the UNFCCC but would then be transferred to a different international regime, s

disaster relief.

Mainstreaming adaptation into sustainable development efforts

One option would be to integrate adaptation measures into the funding efforts for sustainable development (Klein at al. 2003, VARG 2003). Mainstreaming i

and effective use of financial and human resources than designing and implementing adaptation policy separately from ongoing development activities. Development agencies and donors could as a priority select those projects that also have a benefit for adaptation.

Developing country governments could integrate adaptation into their poverty reduction strategies.

If climate change, including adaptation, and development are integrated, it will be difficult to assess the incremental actions by countries as a reaction to climate

has been argued that development aid and funding for adaptation are principally different, because the development aid is charity based while funding adaptation to climate change can be related to commitments under the UNFCCC (Ott et al. 2004).

Donor agencies have already formed the “Vulnerability and Adaptation Resources Group (VARG)” that analyses such

donor countries to commit to provide funds for climate change, and in particular adaptation, related development assistance equal to a percentage of their GDP (Drexhage 2004).

Mainstreaming adaptation into disaster relief

A new notion would be to integrate adaptation to climate change into international disaster relief. Reacting to natural disasters is the field of the United Nations International Strategy for Disaster Reduction (

are developed under the ISDR could be a major step forward. ISDR and the Vulnerability and Adaptation Resource Group will present a paper on such integration end of 2004.

Table 18. Summary possible actions to advance adaptation Category Action Committed

actors Commitment Forum

Anticipatory of expected changes

Implementing first adaptation projects identified in NAPAs and national communications

Annex II

countries Provide co-funding UNFCCC

Desig insurance sch

ning

emes

Developed country governments

Provide guarantees UNFCCC possibly ISDR Damage repair,

restoration and nsation

Mainstreaming adaptation into international

Developed country gover

Provide co-funding ISDR compe

nments disaster relief

Developed country governments

Commit a percentage of GDP for climate change related development aid Enhan

of adap

discussed cement

tive

Mainstreaming adaptation into

sustainable Developing Commit to include

To be capacity

development efforts country governments

adaptation into their sustainable

development strategies

Table 18 p The options are grouped

would

adapt air, restoration

would untry.

measu e for cross incentives between the two:

insure 6.6 F

Stream proces

and T TA) covers only the scientific aspects and the Subsidiary in Jun

discus become more concrete than they have been so far. In addition, the

The a forum for adaptation: At COP8, the Indian delegation put forward the idea action

measu on the

impact d

donor countries will want to ensure that there are boundaries to funding for compensation rovides an overview of the options discussed above.

along the three categories of activities given in 6.2. Implementing first adaptation projects be anticipatory of expected changes. Insurance schemes and mainstreaming ation into international disaster relief would be activities for damage rep

and compensation. Finally, mainstreaming adaptation into sustainable development efforts strengthen the adaptive capacity of a co

The three options can also be applied in parallel or in combinations. E.g. adaptation res and insurance could be designed to provid

Insurance companies could engage in adaptation projects to manage the risk from loss of d assets.

URTHER ISSUES

Several issues remain open and unclear on the issue of future action on adaptation. The following immediate activities could advance the consideration of adaptation in the international negotiations:

lining of work: The current treatment of adaptation in the UNFCCC negotiation s is very fragmented. Part of it is intentional so that the Subsidiary Body for Scientific echnological Advice (SBS

Body for Implementation (SBI) covers the funding. Considering adaptation under one agenda item under SBSTA is a step forward that has been first tested at the subsidiary body meeting e 2004. Information exchange on lessons learned on adaptation is the first step, but sions have to

various funds have overlapping competences, for example all funds support adaptation activities. A clearer distinction of the each of the funds’ mandate could be helpful.

ppropriate

to include the adoption of a ‘Protocol on adaptation’ as part of the action for initiating further for assessment of adverse effects, and steps to facilitate implementation of adaptation res. Such a legal instrument could provide the dual guarantees needed for agreement:

one hand developing countries want a commitment to sharing of the burden of climate s and assurance that they have recourse to compensation, and on the other han

97

98 curren

But th at several options for action would be placed

placed covere Separ This e Devel showe

a clea . Or at least constituencies should always

Althou

perce tions such as - What is the nature

some

that h rnance indicators can provide reasonable

In add

societ ly in the face of threats posed by

transla e adaptive capacity of a

Adap

of the phic distribution, ability to cope

terms ue to the

what f certain consid

On a will need to be done into estimation of costs

associated with damage repair and compensation as well as the magnitudes of funding required to effectively address these, e.g., within an international insurance system.

Im Dokument Climate Change (Seite 96-100)