introduction to the nap and nama processes and the relation to climate finance

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Introduction to the NAP and NAMA processes and the relation to climate finance Armine Avagyan Mitigation of Climate Change in Agriculture (MICCA) Programme, FAO 26-27 October 2015, ASEAN-CRN Workshop on Promoting Climate-Smart Agriculture (CSA) Practices

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Page 1: Introduction to the NAP and NAMA processes and the relation to climate finance

Introduction to the NAP and NAMA processes and the relation to climate finance

Armine Avagyan Mitigation of Climate Change in Agriculture (MICCA) Programme, FAO

26-27 October 2015,

ASEAN-CRN Workshop on Promoting Climate-Smart Agriculture (CSA) Practices

Page 2: Introduction to the NAP and NAMA processes and the relation to climate finance

Outline

1. Concept of NAPs

2. FAO-UNDP NAPs programme

3. Introduction to NAMAs

4. FAO online learning tool on NAMAs in agriculture

5. Financing mechanisms for NAPs and NAMAs.

Page 3: Introduction to the NAP and NAMA processes and the relation to climate finance

National Adaptation Plans: NAPs

Page 4: Introduction to the NAP and NAMA processes and the relation to climate finance

National adaptation plans

National adaptation plans (NAPs): In 2010 during COP 16 of the UNFCCC, a process was established to enable the least developed countries and later developing countries to formulate and implement NAPs for medium- and long-term adaptation needs.

Currently, FAO’s aims to • Develop a agriculture specific roadmap for NAPs • Strengthen Ministries of Agriculture as key stakeholder in the NAPs process • Establish baselines for adaptation • Conduct advocacy, capacity building and knowledge sharing on NAPs • Identify climate finance for adaptation actions

Page 5: Introduction to the NAP and NAMA processes and the relation to climate finance

Integrating Agriculture in National Adaptation Plans

FAO and UNDP have joined forces to meet country requests on identifying and integrating climate adaptation measures for the agricultural sectors into

relevant national planning and budgeting processes.

safeguard livelihoods

boost food security

raise agricultural production

improve medium- to long-term planning and budgeting processes

Page 6: Introduction to the NAP and NAMA processes and the relation to climate finance

Target countries

Duration: 4 years (2015 to 2018)

Budget: US$12 million

Page 7: Introduction to the NAP and NAMA processes and the relation to climate finance

Solutions tailored to country needs

• setting up an early-warning system for climate risks • educating farmers in the use of drought-tolerant seeds, plants and

trees • expand eucalyptus plantations for charcoal

Uganda

• expand efforts to map vulnerability to food insecurity due to climate change

• explore ways to scale up risk-transfer mechanisms for farming communities

Philippines

• conservation of drought-resistant crop varieties by adopting water-conserving farming practices and promoting crop diversification.

Nepal

Page 8: Introduction to the NAP and NAMA processes and the relation to climate finance

Priorities in country workplans

Pri

ori

tie

s

Strengthen capacities to link climate policy and public finance

Mainstream climate change adaptation and disaster risk reduction into agriculture sector plans, policies, budgets (both national and provincial)

Improve impact monitoring frameworks

Understand climate benefits of adaptation options and their planning/budgeting implications

Improve evidence base for adaptation plans for the agricultural sector

Improve evidence base for agricultural sector inputs into National Climate Change strategy/policy

Page 9: Introduction to the NAP and NAMA processes and the relation to climate finance

Stock-taking

Skills assessment

Policy analysis

Capacity development

Impact monitoring

Additional support: global technical specialists

Agricultural economics

Climate science

Climate downscaling and modelling

Economics of adaptation

Cost-benefit analysis

Impact monitoring

National adaptation planning

Planning and budgeting

Communications &

knowledge management

Contact:

[email protected]; [email protected]

For more information:

www.adaptation-undp.org/naps-agriculture

www.fao.org/climate-change

Page 10: Introduction to the NAP and NAMA processes and the relation to climate finance

Nationally appropriate mitigation actions: NAMAs

Page 11: Introduction to the NAP and NAMA processes and the relation to climate finance

Nationally appropriate mitigation actions

In line with national

sustainable development

priorities

Reduce GHG emissions

Monitorable, reportable

and verifiable

Can receive support from

domestic and/or

international sources

NAMAs

NAMAs concept was introduced in 2007 in UNFCCC’s Bali Action Plan:

“ […] Nationally appropriate mitigation actions by developing country Parties in the context of sustainable development, supported and enabled by technology, financing and capacity building, in a measurable, reportable and verifiable manner.”

(Decision 1/CP.13, paragraph 1 (b) (ii))

Page 12: Introduction to the NAP and NAMA processes and the relation to climate finance

NAMAs sectorial distribution

In the NAMA UNFCCC registry as of August 2015: • 117 registered NAMAs; • 16 % in the AFOLU sector.

Page 13: Introduction to the NAP and NAMA processes and the relation to climate finance

AFOLU NAMAs examples

Country Title Timeframe Status

Costa Rica

Livestock NAMA 15 years Financially supported by the Inter-American Bank

Low carbon coffee 5 years

Financially supported by the Inter-American Bank and NAMA Facility

Dominican Republic

Blue Carbon NAMA: Conserve and restore mangroves

18 months Seeking support for preparation

Reducing GHG emission in pig farms 15 years Seeking support for implementation

Georgia Adaptive sustainable forest management

2 years Financially supported by the Government of Austria

Uganda Developing appropriate strategies and techniques to reduce methane emissions from livestock production

6 months Seeking support for preparation

Page 14: Introduction to the NAP and NAMA processes and the relation to climate finance

NAMAs benefits

In addition to reducing and/or removing GHG emissions, a number of agricultural practices may also:

support climate change adaptation;

address agriculture as a driver of deforestation;

reduce agriculture’s contribution to pollution of water sources;

promote access to energy in rural areas; and

foster food security.

Page 15: Introduction to the NAP and NAMA processes and the relation to climate finance

FAO NAMA learning tool for AFOLU

Module 1

Climate change and agriculture

Module 2

Background on NAMAs

Module 3

Step by Step NAMA Development

Module 4

Monitoring, reporting and verification (MRV)

Module 5

NAMA financing

Structure of the tool

To overcome knowledge barriers FAO developed a NAMA tool for agriculture and land use which aims to help agriculture sector stakeholders start NAMA identification and planning. Format Web-based detailed guidance, Available for individual learning online at http://bit.ly/fao-nama-tool

Page 16: Introduction to the NAP and NAMA processes and the relation to climate finance

NAMAs, NAPs and Climate-Smart Agriculture (CSA)

GHG emission reduction and

removal

Income, productivity,

and food security

Climate change

adaptation and resilience

NAPs and NAMAs can • address all pillars of CSA • be used for up-scaling of

the CSA practices.

Page 17: Introduction to the NAP and NAMA processes and the relation to climate finance

International financing sources Green Climate Fund NAMA Facility

Austrian NAMA Initiative

Global Environment Facility (GEF) Fund

International Climate Initiative (ICI)

Latin American Investment Facility

Climate-related ODA funding

ADB Climate Change Fund (CCF)

ClimDev-Africa Special Fund (CDSF)

Climate Development Knowledge Network (CDKN)

Total, climate financing worth USD 100 billion expected to be mobilized annually by 2020 and disbursed through a number of channels, such as the Green Climate Fund.

Page 18: Introduction to the NAP and NAMA processes and the relation to climate finance

Climate finance: Green Climate Fund

• Established at COP 16, decision 1/CP.16

• Created to support low-emission and climate-resilient investments in developing countries.

• USD 10 billion was already pledged in 2014

FAO and GCF- FAO expects accreditation and meantime:

• Provides support to country-led proposal development on an as-needs basis.

• Develops overarching programme frameworks, in line with FAO’s Strategic Framework:

GCF Allocation Framework

Image source: GCF

Page 19: Introduction to the NAP and NAMA processes and the relation to climate finance

Overview of criteria for NAMA support • Amount of GHG reductions

• Transformational change

• Sustainable development benefits

• Sustainability and replicability

• MRV of GHGs and other performance metrics

Effectiveness

• Description with clear boundaries and plans

• Consistency with national development plans

• High-level political support and country ownership

• Support from sector stakeholders

• Capacity to implement

Implementation plan

• Budget with national contributions

• Catalytic impact of international finance contribution

• Leveraging private-sector investment

• No duplication with other finance sources

• Risk mitigation

Financing plan

Source: Adapted from Wilkes et al. 2013b.

Page 20: Introduction to the NAP and NAMA processes and the relation to climate finance

In agriculture, private sector is automatically engaged in NAMAS because farmers are usually private entrepreneurs.

Private investment both national and international can be attracted by:

Public climate financing acts as a catalyst to leverage private sector financing.

If NAMAs bring sufficiently high financial returns, they become attractive to the private sector.

Private domestic financing is also needed to leverage international financing.

Life-cycle approach for GHG reduction engages also other private value chain actors (farm, post-harvest storage, transportation, processing, retailing, consumption and disposal) in NAMA development.

Stable political situation and clear commercial mechanisms

Provision of incentives

(e.g. soft loans and

guarantees)

Elimination of barriers

Demonstration of profitability and low risk

Private investment