PILOT PROGRAM FOR
CLIMATE CHANGE IS AFFECTING THE POORER REGIONS OF THE WORLD FIRST AND WORST DUE TO GEOGRAPHY, GREATER SOCIAL AND ECONOMIC VULNERABILITY, AND LOW ADAPTIVE CAPACITY. ATTENTION MUST BE GIVEN TO MANAGING CURRENT AND FUTURE IMPACTS OF CLIMATE CHANGE TO PROTECT LIVES AND LIVELIHOODS AND TO BUILD RESILIENCE.
ESTABLISHED IN 2008, THE $8.3 BILLION CLIMATE INVESTMENT FUNDS (CIF) ADDRESS THESE CHALLENGES BY DELIVERING INVESTMENTS AT SCALE TO EMPOWER CLIMATE-SMART TRANSFORMATION
SIDS: Small Island Development States
LMIE: Low and Middle Income Economies
LDC: Least Developed Countries
Project: Mozambique sustainable land and water resources management.
Financing: PPCR $15.75m, AFDB $3.2m
Implementing MDB: AFDB
Purpose: To promote community-based watershed/landscape management approaches
Mozambique ranks third among the most exposed African countries to adverse effects of climate change as a result of frequent occurrence of droughts, floods, and cyclones. Climate change events affect over 58 percent of the population. The Gaza province, located in the south, is one of the most adversely affected provinces in terms of climate change events with frequent occurrence of droughts in the northern parts and floods in the coastal areas of the province.
In response to these challenges, the PPCR and AfDB launched the Sustainable Land and Water Resources Management Project in 2014. This project will help increase the capacity of communities to address the inter-linked challenges of adverse impacts of climate change, rural poverty, food insecurity and land degradation.
The project is implemented in the four drought affected districts of Guija Mabalane, Chicualacuala and Massengena with estimated total direct beneficiaries of 20,000 and additional 20,000 indirect beneficiaries. At the end of 2015, the project had already provided support to 2,690 farmers of which 1,373 were women to cope with the adverse effect of climate change.
Project: Mainstreaming Climate Change Risk Management in Development Technical Assistance program (TA)
Financing: PPCR $7.2m
Implementing MDB: ADB
Purpose: To integrate climate change risks into Nepal’s climate change program and develop knowledge management tools
Being ranked the world’s fourth most climate-vulnerable country, Nepal has adopted ambitious plans to strengthen its climate change risk management capacity.
In 2011, the Mainstreaming Climate Change Risk Management in Development Technical Assistance program (TA) was approved with a CIF/PPCR allocation of USD 7.2 million. The TA program implemented by ADB aimed to integrate climate change risks into Nepal’s climate change program and develop knowledge management tools.
The program was expected to apply risk screening tools for irrigation, infrastructure, and urban development projects, with a trained focal point in charge of climate change risk management in government infrastructure agencies.
Five years later, the project, in close consultation with sector agencies, has developed recommendations for policy and regulatory, institutional, technical, and capacity building climate change reforms for six sectors (strategic road networks, local and rural roads,
irrigation, urban planning, water induced disaster prevention, and water supply and sanitation). Various communications and knowledge
management activities have been implemented, including a) district training on climate change and community-based adaptation completed in over 60 districts; b) integration of climate change into national curriculum for grades nine and ten and for six tertiary academic programs at three university; and c) 36 climate change related research grants for Nepali nationals.
Project: Bolivia Climate Resilience - Integrated Basin Management
Financing: PPCR $9.5m
Implementing MDB: IBRD
Purpose: Strengthening the Resilience to Climate Change in the Rio Grande Basin and National Capacity for Managing Climate Change
Frequent drought and flood events with higher intensities due to climate change jeopardize the fight against poverty and impede a sustainable development in many parts of Bolivia. To adapt to these threats holistic management approaches at the basin level, considering all water uses and integrating all relevant stakeholders have been developed. For effective planning, decision makers have taken environmental, economic and social factors into consideration. IT-based planning tools allow to estimate water availability or flood risks under the impact of climate change and social
changes. The use of these highly sophisticated instruments and the integration of its results with social and economic planning tools often is a major burden for local stakeholder and impede integral planning.
The PPCR developed a Decision Support System integrating hydrological modeling, economic data, water usage interests and local priorities to analyze possible conflicts, develop a management strategy and prioritize infrastructure and management activities for one of its Pilot Basins.
Visualization and communication of modeling results and available information is an important component of the tool and facilitates the active participation of local stakeholder. Different climate change scenarios are integrated in the planning process through role plays and negotiation exercises. In the Rio Mizque Basin, the tool was used to prioritize investment sub-projects to be funded with PPCR funds. Experiences made with the tool are currently being incorporated in the development of decision support systems for further river basins.
Project: Tajikistan: Small Business Climate Resilience Financing Facility
Financing: PPCR $5m
Implementing MDB: EBRD
Purpose: Innovative financing facility to support the uptake of climate-resilient, water-efficient and energy-efficient technologies by small businesses, farmers and households.
A landlocked country with mountains occupying 93 percent of its territory, and glaciers making up 6 percent of its total land area, Tajikistan is also one of the most climate vulnerable countries in Central Asia. Significant climate change has already been observed in Tajikistan, such as increase in average temperatures, glacier retreat, and change in average precipitation and range. The negative effects of climate change—on food and energy production, the availability of water, and others sectors—are already being felt and the consequences are disproportionately affecting the livelihoods of poor Tajiks.
In 2014, the PPCR Sub-Committee approved USD 5.0 million in PPCR concessional finance under the PPCR private sector set aside window for the establishment of an innovative financing facility to support the uptake of climate-resilient, water-efficient, energy-efficient and sustainable land management technologies by Tajik’s small businesses, farmers and households. PPCR funding leveraged additional USD 5 million from the EBRD (commercial loan) and USD 2.25 million from DFID and EBRD Special Shareholder Funds.
Implemented by EBRD, this project was officially launched in February 2016 and
Tajikistan is the first country in ECA to benefit from this innovative approach. CLIMADAPT supports the investment in both existing and pilot technologies which are available through recommended suppliers and installers.
To date EBRD signed three agreements with local banks and microfinance institutions: Eskhata Bank, IMON International and HUMO. The funds will be on-lent in local currency to SME clients and households to help them adopt technologies and practices to reduce soil erosion and pressure on water and energy resources, both of which are key environmental threats in Tajikistan.
Across Zambia, women are taking action to tackle pressing issues that were caused by climate change. In Nalolo district, for example, the clearing of canals has opened up hectares of land that residents can now use to farm cassava and maize.
The $1.2 billion Pilot Program for Climate Resilience (PPCR) is a funding window of the CIF for climate change adaptation and resilience building.
Using a two-phase, programmatic approach, the PPCR assists national governments in integrating climate resilience into development planning across sectors and stakeholder groups. It also provides additional funding to put the plan into action and pilot innovative public and private sector solutions to pressing climate-related risks.
To date, $939 million (about 80% of PPCR funding) is approved for 58 projects expecting around $2 billion in co-financing from other sources.