assessing the effectiveness of adaptation-related development finance

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Assessing the Effectiveness of Adaptation-related Development Finance Eric Williams, OECD COP23, Bonn 8 November 2017

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Assessing the Effectiveness of Adaptation-related Development Finance

Eric Williams, OECD

COP23, Bonn • 8 November 2017

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2010 2011 2012 2013 2014 2015

USD

Bill

ion

sAdaptation-related development finance reported

to OECD

0

5

10

15

20

25

30

35

40

0

10

20

30

40

50

60

70

Small IslandDeveloping States

Least Developedand Low Income

Countries

Lower MiddleIncome Countries

Upper MiddleIncome Countries

20

15

USD

bill

ion

s

20

15

USD

pe

r ca

pit

aCumulative climate-related development finance

for SIDS and by income group (2010-2015)

Adaptation percapita

Mitigation percapita

Total adaptation

Total mitigation

Cumulative adaptation-related development finance per capita (2010-2015)

Measuring progress

• Progress in adaptive capacity is complex

• IPCC defines adaptive capacity as the ability to “adjust to potential damages, to take advantage of opportunities, or to respond to the consequences” of climate change

– Physical: e.g. storm surge barriers

– Behavioral: e.g. changing agricultural practices

– Institutional: e.g. government’s ability to respond to extreme weather events

– Etc.

Assessing effectiveness of adaptation finance

• Explore relationships between critical dimensions of adaptive capacity for which we have credible data and adaptation finance, e.g.

– Are changes in data representing adaptive capacity in agriculture correlated with adaptation finance targeted to agriculture?

– Are these changes consistent across countries?

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ND-GAIN: top adaptation finance per capita recipients (2013-15) in color

Conclusions

• Climate change can erase hard-won development gains in vulnerable countries

• Important to begin to understand how effective adaptation finance is in improving adaptive capacity

• OECD houses a rich database that can be tapped to begin these explorations

Backup slides

Potential explorations: top 40 sectors receiving Rio marked adaptation finance

Purpose Code Sector

Agricultural development Food crop production

Agricultural land resources Forestry development

Agricultural policy & administrative management Forestry policy & administrative management

Agricultural research Formal sector financial intermediaries

Agricultural water resources Material relief assistance and services

Basic drinking water supply Multisector aid

Basic drinking water supply and basic sanitation Public sector policy and administrative management

Bio-diversity Reconstruction relief and rehabilitation

Biosphere protection River basins development

Business support services & institutions Road transport

Democratic participation and civil society Rural development

Disaster prevention and preparedness Sanitation - large systems

Electric power transmission and distribution Sectors not specified

Energy generation, renewable sources - multiple technologies Trade policy and admin. management

Energy policy and administrative management Urban development and management

Environmental policy and admin. mgmt Water resources policy/administrative management

Environmental research Water resources protection

Financial policy & administrative management Water supply - large systems

Flood prevention/control Water supply and sanitation - large systems

Food aid/Food security programmes Water transport