Transcript Opportunities in Infrastructure with the IDB

Climate Change and the Caribbean: Areas of
Intervention
Financing for the Caribbean Sustainable Energy and Climate
Change Unit (ECC), Infrastructure and Environment
Department (INE)
Gerard Alleng
Climate Change Specialist, Sustainable Energy
and Climate Change Unit (ECC)
Inter-American Development Bank
Climate Change In Context
Fourth Assessment Report (2007) of the
IPCC:
“Warming of the climate system is
unequivocal, as is now evident from
observations of increases in global
average air and ocean temperatures,
widespread melting of snow and ice and
rising global average sea level.”
Climate change is an issue of today, not
only tomorrow - need for a change of the
message – respond to current climate
variability and deal with future extreme
events.
Vulnerability today will increase over time
- need to reduce vulnerability
Implications for the
Caribbean
Islands in the Caribbean are likely to be affected
since:
•
Sea level rise is expected to exacerbate
inundation, storm surge, erosion and other
coastal hazards, thus threatening vital
infrastructure, settlements and facilities that
support the livelihood of island communities.
•
Deterioration in coastal conditions, for
example through erosion of beaches and
coral bleaching, is expected to affect local
resources.
•
By mid-century, climate change is expected
to reduce water resources in many small
islands, e.g. in the Caribbean and Pacific, to
the point where they become insufficient to
meet demand during low-rainfall periods.
•
With higher temperatures, increased
invasion by non-native species is expected
to occur….
(Source: IPCC - AR4)
Implications for the Caribbean (cont.)
Systems, sectors and regions in the
Caribbean are likely to be affected:
• Tropical rainforests where
precipitation declines
•
Coastal ecosystems: mangroves
and salt marshes, due to multiple
stresses
•
Marine ecosystems: coral reefs due
to multiple stresses;
•
Low-lying coastal systems, due to
threat of sea level rise and
increased risk from extreme
weather events
•
Human health in populations with
low adaptive capacity.
(Source: IPCC - AR4)
Cost of Impacts of Climate Change on the Caribbean
(CCRIF, 2010)
•
The cost of the impacts of climate change could be significant depending on
the global action (or inaction) depending on which future climate scenario
unfolds.
Barbados
2009
2030
Scenarios
Today’s
climate
Today’s climate
Moderate
change
High change
Percent of total GDP
3
3
4
4
Jamaica
2009
Scenarios
Today’s
climate
Today’s climate
Moderate
change
High change
Percent of total GDP
6
6
7
9
2030
St. Lucia
2009
2030
Scenarios
Today’s
climate
Today’s climate
Moderate
change
High change
Percent of total GDP
3
3
4
5
Primary Response of the Caribbean: Adaptation
• Adapting to climate change entails taking the right
measures (need to avoid mal-adaptation) to reduce
the negative effects of climate change (or exploit
the positive ones). The right measures depends on
what we are adapting to – which climate scenario
(uncertainty).
• Adaptation is needed even if current emission levels
are controlled since climate change impacts are
already unavoidable due to past emissions.
• Adaptation measures can range from ecosystem
based
approaches
(e.g.
coastal
wetlands
management), to technological (e.g. sea defenses),
behavioral (e.g. altered food and recreational
choices), managerial (e.g. altered agricultural
practices) or policy approaches (e.g. planning
regulations, use of insurance schemes).
• An integral strategy for adaptation in the Caribbean will be to build
on disaster risk reduction best practices and climate risk management
Investment in mitigation is also a response option for
the Caribbean
• For the Caribbean, investment in mitigation
technologies and practices has the benefits of
energy security, sustainability (transition to a low
carbon economy), additional income streams from
participation in carbon markets (e.g. CDM) and moral
persuasion.
Response of the IDB to the climate change needs of
member countries
•
Use of financial instruments for climate change:
- TCs & investment grants (SECCI funds)
- PBLs
• Development of Knowledge products
- e.g. IDB Biofuels Sustainability Scorecard
• Mainstreaming of climate change into
the operations of the Bank
Projects in Pipeline: Pilot Program for Climate Resilience (PPCR) (Climate Investment Funds – CIF)
 Regional Pilot – Caribbean
 Grants (US$60 – 75 million for the region) and
concessional loans available for investment in
scaling up adaptation measures
 Activities will proceed along two tracks:
• Country-based investments in highly
vulnerable countries: Haiti, Jamaica,
Dominica, St. Lucia, St. Vincent and the
Grenadines and Grenada.
• Region-wide activities involving regional
organizations (e.g. CCCCC, CARICOM and
OECS Secretariat, CDEMA, CIMH, CDB,
UWI, CEHI, CFRM): focused on climate
monitoring, institutional strengthening,
capacity building and knowledge sharing
Haiti
program
Jamaica
program
Dominica
program
Regional
program
St. Lucia
program
Grenada
program
St. Vincent &
Grenadines
program
Projects in Pipeline: Sustainable Energy and Climate Change
Regional
 Caribbean Carbon Neutral Tourism
Program
•
Scope: Scaling-up of low carbon
investments in the tourism sector
and to reduce the sector’s
vulnerability to climate change.
•
Amount : US$839,250 (SECCI
Funds)
•
Beneficiary Countries : Region
•
Executing agency: CCCCC
 Energy Efficiency for Caribbean
Water and Sanitation Companies
Operators
•
Scope: To assist water utilities in
the Caribbean in improving energy
efficiency and reduce energy
costs, providing these utilities with
an action plan to increase energy
efficiency
•
Amount : US$435,000 (SECCI
Funds)
•
Beneficiary Countries : Region
•
Executing agency: IDB
Projects in Pipeline: Sustainable Energy and Climate Change
Country level (Investment Grants)
 Jamaica Wind and Solar
Development Program
•
Scope: To undertake wind resource
assessments of potential wind sites in
Jamaica; to assess and improve the
current Volt-Ampere Reactive (VAR)
power system of the Wigton windfarm
and; to conduct a feasibility study for a
proposed residential solar power
generation facility.
•
Amount : US$750,000 (SECCI Funds)
•
Beneficiary Countries : Jamaica
•
Executing agency: Wigton Windfarm
Ltd
Projects in Pipeline: Sustainable
Energy and Climate Change
Country level
(Investment Grants)
 Promotion of Energy Efficient
Residential Lighting
•
Scope: to promote the sustainable
use of compact fluorescent lights
(CFLs) in low income households
in the Bahamas
•
Amount : US$500,000 (SECCI
Funds)
•
Beneficiary Countries : Bahamas
•
Executing agency: Ministry of the
Environment
Projects in Pipeline: Climate Change related
Country level (Technical Cooperation)
 Mainstreaming Climate Change Into
National Development and Capacity
Building for Participation in Carbon
Markets
•
Scope: to facilitate the mainstreaming
process by enhancing the draft
national climate change policy,
strengthening the institutional capacity
of the government to participate in
carbon markets and exploring the
feasibility of a climate change
mitigation solution.
•
Amount : US$307,500 (SECCI Funds)
•
Beneficiary Countries : Trinidad and
Tobago
•
Executing agency: Ministry of Housing
and the Environment
 Improving the Delivery of
Comprehensive Disaster Management
•
Scope: to prepare a country disaster
risk evaluation; and strengthen
institutional capacity for disaster risk
management, emphasizing ex ante risk
reduction and incorporating climate
change adaptation.
•
Amount : US$500,000 (Disaster
Prevention Fund)
•
Beneficiary Countries : Trinidad and
Tobago
•
Executing agency: Ministry of National
Security
Projects in Pipeline: Climate Change related
Country level (Technical Cooperation)
 Supporting Guyana’s Low Carbon
Development Strategy
•
Scope: To provide support to the
Cooperative Republic of Guyana in the
process of establishing its Strategy on
Low Carbon Development
•
Amount : US$450,000 (IDB FSO)
•
Beneficiary Countries : Cooperative
Republic of Guyana
•
Executing agency: Office of the
President – The Office of Climate
Change
 Support for Improving Integrated
Disaster Risk Management for ClimateResilient Development
•
Scope: To develop climate risk
indicators for the country and improve
flood preparedness in vulnerable
districts and resorts; and to
mainstream climate risk reduction at
the regional level and in sector
planning.
•
Amount : US$300,000 (Korean Trust
Fund)
•
Beneficiary Countries : Suriname
•
Executing agency: Ministry of Defense
through the National Coordination
Center for Disaster Preparedness
Projects in Pipeline: Climate Change related
Country level (Loans)
 Coastal Risk Assessment and
Management Program
• Scope: To build capacity in
integrated coastal risk management
in Barbados incorporating climate
change adaptation
• Amount : US$30,000,000
• Beneficiary Countries: Barbados
• Executing agency: Coastal Zone
Management Unit
Future Developments at the IDB:
Implications for the Caribbean
•
Ninth General Capital Increase (GCI-9 – US$70 Billion increase in ordinary
capital between 2012 – 2015). Commitment to global environmental
sustainability and adaptation / mitigation to climate change, while ensuring that
energy requirements for development are met:
- 25% carve out of GCI-9 to increase lending to climate change initiatives,
sustainable energy and environmental sustainability from 5% up to 25% at the
end of 2015.
•
Implementation of IDB’s Climate Change Strategy (CCS). The CCS provides a
strategic framework to scale-up support to the region, mobilizing public and
private sector financial and non-financial instruments.
Thank you
Contact Information
Juan Pablo Bonilla – ECC Chief
[email protected]
Gerard Alleng – ECC Coordinator for the
Caribbean
[email protected]