Local Practitioners and Climate Financing Initiatives Workshop,

30 – 31 October, 2012Bangkok, Thailand

Presenter: Syed Mujtaba HussainDeputy Secretary

Ministry of Climate ChangeGovernment of Pakistan

Sequence of presentation

• Climate Financing needs • Urgency for Action• Pakistan’s vulnerability to Climate Change• The price tag !• Devolution process and challenges of

implementation• Proposed institutional mechanism for climate

change in Pakistan

Climate Financing Needs

Estimated annual incremental climate costs required for 2°C trajectory

Actual Funds (2008-2012)

Adaptation Mitigation Total Needs0

50

100

150

200

250

300

350

400

$9b

$120b

$220b

$340b

Billions

Urgency for action• Countries in Asia-Pacific region are consistently

impacted by extreme events• In case of Pakistan nine out of the 10 extreme

events in the last decade are climate impacted• Adaptation to CC is fundamental as it reduces

vulnerability and increases resilience to CC• Climate Resilient/Climate compatible

development is imperative• Mitigation at local level brings in co-benefits like

increased livelihoods, food and energy security, clean environment & capacity enhancement

Pakistan’s vulnerability to CC• Pakistan lies on a steep incline dropping

sharply from 8500 meters to sea level within almost 3000 Kms

• Recurring climate impacted disasters i.e. erratic monsoons, floods, droughts, cyclones, sea water intrusion, GLOF etc

• Such disasters have impacted our water, food and energy security

• 2010 floods and subsequently in 2011 have created 20 million and 9.72 million climate migrants respectively and economic losses of USD 9.6 billions

Global Climate Risk Index – 2010 (German Watch)

Rank Country CRI Score

Death Toll

Deaths per 100000

inhabitants

Absolute Losses

(M $ PPP)

Losses per unit GDP in %

HDI

1 Pakistan 3.5 1891 1.1 25316 5.42 145

2 Guatemala 6.33 229 1.59 1969 2.80 131

3 Colombia 8.0 320 0.70 7544 1.73 87

4 Russia 11.0 56165 39.3 5537 0.25 66

5 Honduras 14.67 139 1.73 220 0.65 121

6 Oman 17 24 0.81 1314 1.73 89

7 Poland 17.83 151 0.40 4745 0.66 39

8 Portugal 19.67 47 0.44 1749 0.71 41

9 China 23.50 2889 0.22 33395 0.33 101

10 Tajikistan 24.17 27 0.35 262 1.77 127

The Impacts and Threats

…….In a neighborhood of Unavoidable “vulnerability” with main issue being “WATER”...…both too much and

too little and at wrong place ..

Glacial Melting Zone

Variable Monsoons + Glacial Melting

This leads to…..

Massive displacements and climate refugees……

Aerial view of Nowshehra city on 30 July, 2010

Climate migrants in the province of Sindh in 2011

The price tag !Method Time period Cost of adaptation

per annum

Actual (2010) One year(2010)

9.7++

As a percentof GDP

2010-2050 10.71

Per CapitaBasis

2010-2050 7.12 to 14.0

DisasterModeling

(Floods only * 3)

2010-2050 6.09 to 11.3

• Adaptation to climate change is going to be a high value figure in the future

• (US$ 6-14 bn per year range)

• Cost of mitigation is US$ 7-18 bn per year

Financing Options – Unilateral fundingClimate Change National Budgetary Financing

2008-2009Total Number of

Projects78

Total Cost 11.84 Billion U$

Total Allocation in 2008-2009

0.86 Billion U$

Total Foreign Assistance

1.89 Billion U$

2007-2008Total Number of

Projects68

Total Cost 2.75 Billion U$

Total Allocation in 2008-2009

0.67 Billion U$

Total Foreign Assistance

1.12 Billion U$

• In 2007-2009 the country initiated climate related projects amounting to approx. U$ 14.5 billion – Allocating funds of U$ 1.5 billion

from its national budget matched by foreign assistance of U$ 3 billion towards these projects

• Significant budgetary finance towards climate change

• So far “Un-recognized” at the global level …..!!

Linkages between various funding options for CF

Local Funds for Climate Change

Private Sector Funds

International/Donor

Funds

Public Funds

Functions of the Federal Ministry of Climate Change in the aftermath of

devolution process• Formulation of National Policies, strategies,

plans, programs and projects relating to climate change, environmental protection, biodiversity, ecology, forestry, rangelands and desertification

• Strategic guidance in terms of development of provincial/sub-nations plans, programs and projects

• Coordination with the provinces for capacity enhancement and implementation of projects and programs

Challenges of implementation

• Lack of knowledge and understanding of the subject i.e. capacity issues

• Climate change overshadowed by challenges like militancy, terrorism and weak economy

• Lack of understanding on part of the legislators and decision makers regarding linkage of CC with national security

• Lack of clarity about international obligations under various environmental and climate change conventions

• Weak communication and coordination mechanism• Institutional mechanism for climate finance under

evolution at national and subnational levels

Opportunities• Delegation of authority/decentralization• Mainstreaming of climate change into

development • Participatory process for needs assessment• Benefits like water, energy and food security as

well as income generation at local level• Implementation at grass roots level• Decision making powers with respect to finance• Capacity enhancement• Institutional development

Institutional arrangements for CC in Pakistan

National CC Policy - MoCC

National Action Plan - MoCC

•National Climate Change Fund

Provincial Action Plan – Deptt. Of Env

•Provincial CC Fund

District Action Plan – District Impl. Committee

•District CC Fund

Village/Community Action Plan & Community CC Fund

managed by CBOs/LSOs

Example of a Local level financing initiative in Pakistan

• Under the GLOF project in Northern Pakistan, Disaster Risk Management Committees at Community level established in two project sites

• Endowment Fund created• The project has provided seed money of Rs. 1 million

each for adaptation interventions in each site• Community contributed 10% i.e. Rs.100 thousand for

each site • The fund is expected to reduce vulnerability and

adapt to climate change extreme events• This would lead to integration of local communities

in project activities, ownership and sustainability

Thank you