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PUBLIC CLIMATE CHANGE DOCUMENTS RELATED TO THE AGRICULTURAL SECTOR, AND FINANCING MECANISMS

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Title/Abstract

Year

2010

The potential of Carbon market for small farmers: a literature review

Since markets for GHG emission reductions have been established, their combined value has increased to more than US$100 billion in just a few years (Capoor and Ambrosi 2009). However, agriculture has been largely excluded from both formal and informal carbon markets, chiefly because of the high level of uncertainty surrounding agricultural mitigation and the transaction costs associated with smallholder agriculture, which manages most of the agricultural carbon. Key uncertainties include the amount of carbon that can be sequestered by agricultural soils, the reduction in emissions obtainable from the agricultural sector, and the length of time that carbon can be stored in the soil. Transaction costs depend on the costs of monitoring, reporting and verification of changes in soil carbon and emission and on the cost of aggregating and organizing farmers. This paper reviews these challenges and also reviews some the proposed methods to ensure that smallholder farmers have access to the markets that reward climate change mitigation activities. The paper first provides an overview on GHG emissions and the associated mitigation potential of the agricultural sector. This is followed by an overview of the regulatory and voluntary carbon markets that are currently available for emission abatement. After a brief review of the economic literature that analyzes the potential contribution of agriculture to climate change mitigation, the paper describes the opportunities and challenges for smallholders to access payments for environmental services such as carbon markets and ends with a series of final considerations and conclusions.

KEYWORDS: Carbon markets, small farmers, agriculture, climate change, carbon sequestration

   

SOURCE: http://www.globalfoodsec.net/static/text/ifpri_potential_carbon_markets.pdf

2010

Les stratégies financières intégrées pour la gestion durable des terres

Le consensus mondial et les modalités changeantes d’allocation des ressources dans les domaines du développement et de la réduction de la pauvreté – exprimés dans les Objectifs du Millénaire pour le développement (OMD) et décrits dans le consensus de Monterrey sur le financement pour le développement et la Déclaration de Paris sur l’efficacité de l’aide – demandent de nouvelles approches et stratégies si l’on veut aider les pays à mobiliser des ressources en faveur de la gestion durable des terres (GDT ). Les processus et modalités d’allocation des ressources financières qui voient le jour exigent que les pays Parties à la Convention des Nations unies sur la lutte contre la désertification (CNULCD) élaborent des approches efficaces pour mobiliser des ressources tant nationales qu’internationales au niveau du pays. Face à cette situation, le Mécanisme mondial (MM) a élaboré le concept de stratégie financière intégrée (SFI) pour la mise en oeuvre de la CNULCD. Le premier objectif de la SFI est de créer un environnement propice à la mobilisation de ressources internes, externes et novatrices aux fins de l’établissement d’un cadre d’investissement en faveur de la GDT . L’élaboration d’un Programme d’action national (PAN ) au titre de la CNU LCD est fondamentale pour la formulation d’une SFI. La SFI est parfaitement cohérente avec le Plancadre stratégique visant à renforcer la mise en oeuvre de la CNULCD pendant la période 2008-2018 (la Stratégie décennale), qui donne une nouvelle impulsion aux pays pour qu’ils élaborent des SFI dans le cadre de leur processus d’alignement national sur la Stratégie. Le présent document donne un aperçu du concept de la SFI et décrit les principes clés et les phases principales de la conception et de la mise en oeuvre d’une SFI pour la CNULCD et les initiatives de GDT . La SFI favorise une mobilisation accrue des ressources en faveur de la GDT , en élargissant la portée des processus de planification au-delà des secteurs spécifiques, en intensifiant l’interaction avec des secteurs traditionnellement non associés au programme de travail de la CNULCD et en contribuant à faire en sorte que les politiques de développement liées à la GDT se voient allouées des ressources adéquates dans les budgets publics et les cadres de dépenses. Une SFI doit être étroitement rattachée au processus du PAN national et être résumé solidement ancrée dans le cadre institutionnel du pays ainsi que dans les programmes et cycles budgétaires pertinents. La SFI recense les rôles distincts et complémentaires joués par les différentes sources de financement – nationales, étrangères, publiques et privées. Elle tire parti de ces ressources en générant des synergies entre elles et en créant l’environnement porteur propice à la mobilisation de ressources. Les sources de financement sont les fonds bilatéraux et multilatéraux, les budgets nationaux et les investissements des ménages, des communautés et des entités du secteur privé. La SFI rassemble les partenaires du développement international, les organismes publics, les organisations de la société civile et le secteur privé. Tout en contribuant à la mise en place de la combinaison appropriée de ressources financières, la SFI repère les obstacles potentiels à l’identification, l’allocation et le décaissement des ressources. Elle met en lumière les aspects de l’environnement politique, fiscal, juridique, institutionnel et humain (ressources humaines), susceptibles de saper la réalisation des activités spécifiques de mobilisation de ressources et recommande des mesures pour surmonter ces obstacles et créer ainsi un environnement porteur.

KEYWORDS: Gestion durable des terres, stratégie financière, Mécanisme Mondiale

   

SOURCE: http://global-mechanism.org/dynamic/documents/document_file/ifs_fweb.pdf

2010

FAO, profile for Climate Change

With this Profile for Climate Change, FAO outlines its priorities for its current and future work on climate change. FAO’s work focuses on adaptation mitigation agricultural sectors and advocates for better management synergies trade-offs among both. It also points to the areas where adaptation mitigation activities merge with ongoing development efforts to improve sustainable use of natural resources for increased production, income, food security and rural development. Ensuring food security will require substantial investments and action to adapt agriculture, forestry and fisheries to climate change challenges. Agriculture, forestry and fisheries sectors can significantly contribute to global mitigation efforts.

KEYWORDS: FAO, Climate Change, Food security, Agriculture

   

SOURCE: http://www.fao.org/docrep/012/i1323e/i1323e00.htm

2010

Millenium develpment goals and climate change: tacking stock and looking ahead

The last decade was marked by booming globalization galvanizing many development advances. However, structural economic, human and climate crises also showed the downside of the existing path of development especially in the least developed countries and in Africa. The Millennium Development Goals (MDGs) succeeded in mobilizing support for the development agenda and led to some success in the fight against hunger, diseases and illiteracy. Yet, the finance and food crisis brought a backlash and enlarged the implementation and finance gap to achieve the targets by 2015. To reach the targets requires political leadership to speed up progress. The climate agenda went through a paradigm change at the climate conference in Copenhagen in the end of 2009. Now, leadership of countries and country coalition are equal in importance like international negotiations for progress on the ground to curb emissions and to adapt to current and future climate impacts. Climate impacts impede the sustainability of MDG progress. Patterns of persisting poverty coincide with areas of high climatic vulnerability. On the other hand, progress in achieving the MDGs contributes to adaptation by reducing vulnerabilities and increasing the capacities to be able to adapt. Since the MDGs treat environmental sustainability as a sub-goal rather than a precondition for development, and since most development advances have relied on a fossil based growth model, there is an inherent conflict between the development agenda and required mitigation actions. To resolve the dichotomy between development and the climate agenda, it is important to build on activities that decouple emission growth from development advances.

KEYWORDS: Millennium Development Goals, Climate Change, investment, mitigation

   

SOURCE: http://www.germanwatch.org/klima/klimdg10e.pdf

2010

Rural Poverty Report 2011

This 2011 edition of the report is the first since 2001. It notes that, in the past decade, over 350 million people have been lifted out of poverty, but global poverty remains a massive and predominantly rural phenomenon, with 70% of the developing world’s 1.4 billion extremely poor people living in rural areas. It highlights achievements particularly in East Asia, Latin America, the Middle East and North Africa. It also describes challenges, including the high poverty rate in Sub-Saharan Africa and the lack of progress in South Asia. The report underscores threats to rural development posed by climate change, volatile food prices, and natural resource constraints. It also notes ecosystems and biodiversity that sustain agricultural production are changing: for example, scarce and variable rainfall has already decreased the resilience of the high plateau ecosystem in eastern Morocco; the land is severely degraded and the carrying capacity of rangelands is no longer able to sustain growing demand. The report, thus highlights the challenges to boosting international agricultural productivity. In terms of opportunities, the report describes the growth of urban centers and better organized agricultural markets. It further outlines efforts to help poor rural people avoid and manage risks. The report was launched at Chatham House in London, UK.

KEYWORDS: Rural poverty, sustainable agriculture, agricultural productivity, Climate Change

   

SOURCE: http://www.ifad.org/RPR2011/report/e/rpr2011.pdf

2010

Tracking aid in support of climate change mitigation and adaptation in developing countries

Markers indicate donors’ policy objectives in relation to each aid activity. Activities marked as having a “principal” climate objective (mitigation or adaptation) would not have been funded but for that objective; activities marked “significant” have been formulated or adjusted to help meet the objective. It is important to note that there is no internationally agreed methodology for tracking the exact share of aid activity expenditure that contributes to climate change adaptation or mitigation. This is particularly true for adaptation given its intricate linkages with development. Absent such a methodology, the markers allow an approximate quantification of the amount of aid that targets climate change concerns, but not the exact amount of aid specifically directed to helping developing countries mitigate or adapt to climate change. When analysing policy marker data, it is necessary to verify the coverage of donors’ reporting. Donors are requested to screen each aid activity reported to the CRS, though data gaps still exist for some donors.

KEYWORDS: Climate Change, mitigation, adaptation

   

SOURCE: http://www.oecd.org/dataoecd/33/60/45906157.pdf

2010

Investment and financial flows to address climate change: an update

This technical paper provides an update to the paper on investment and financial flows to address climate change which was published by the secretariat in 2007. This update was requested by the Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA), at its second session, taking into account paragraph 1 of decision 1/CP.13 (the Bali Action Plan). The technical paper presents different options, tools and mechanisms to enhance financing for mitigation, adaptation and technology cooperation for an effective response to climate change. Further, the assessment of options, tools and mechanisms is enriched by information submitted by Parties and other observer organizations as part of the work of the AWG-LCA. It also presents relevant new information available on the investment and financial flows needed.

KEYWORDS: tools, mechanisms, financial flows, Climate Change, UNFCCC

   

SOURCE: http://unfccc.int/resource/docs/2008/tp/07.pdf

2010

3rd African drought Adaptation Framework Report, Addis Abbaba Sept 2008

The African Drought Risk and Development Network (ADDN) is sponsored by United Nations Development Programme (UNDP)’s Dryland Developem ent Centre and United Nations’ International Strategy for Disaster Reduction (ISDR) and recognizes the need for exchange of experience on managing the risk of drought in various sub regions of Africa. The African Drought Risk and Development Network (ADDN) is focused on promoting applied discussion on key issues linking drought risk and development, providing a platform for the development and dissemination of good practice & innovation, providing an entry point for accessing networks in Africa and beyond, and acting as a Forum for the elaboration of critical strategy and policy relevant decision making. We are adapting to the needs of all stakeholders, making it easier to access information that will help us react to the increased threat of drought and climate change in the dryland of Africa.

KEYWORDS: drought, adaptation, Africa, Climate Change, Disaster risk reduction

   

SOURCE: http://www.undp.org/drylands/docs/drought/ADDF3/3rd_African_Drought_Adaptation_Forum_Report.pdf

2010

Disaster risk reduction, Climate change adaptation and Environmental migration: A Policy Perspective

This paper presents IOM’s efforts to support vulnerable and mobile communities affected by environmental hazards through disaster risk reduction (DRR) and climate change adaptation (CCA) activities conducive to sustainable development. IOM’s programmes around the world have demonstrated the effectiveness of DRR and CCA for reducing risk exposure and vulnerability and for improved management of migration, particularly in times of crisis.2 This paper advocates for further strengthening DRR and CCA mechanisms at the global, regional, national and local levels through an integrated and cross-sectoral approach supported by appropriate and innovative financing systems. Furthermore, it argues that migration and environmental migration3 in particular are crosscutting issues that – in order to be effectively managed – need to be fully recognized and mainstreamed into sustainable development strategies at all levels and in DRR and CCA strategic frameworks, including the Hyogo Framework for Action and the United Nations Framework Convention on Climate Change (UNFCCC) process.

KEYWORDS: Disaster Risk Reduction (DRR), Climate Change Adaptation (CCA), migration

   

SOURCE: http://publications.iom.int/bookstore/free/DDR_CCA_report.pdf

2010

Promoting Risk Insurance in the Asia-Pacific Region: A Convergence Approach for the Future Climate Regime

Risk insurance can provide an effective means of catastrophic risk reduction and climate change adaptation in the developing countries. The ongoing discussions by the Conference of Parties to the United Nations Framework Convention on Climate Change are putting substantial efforts to promote climate change adaptation through international cooperation in the form of providing additional finances and technologies including proposals to promote a global or regional climate risk insurance facility. Case studies from within and outside the Asia-Pacific region provide valuable lessons which could be used for promoting risk insurance in the future climate regime (post-Kyoto Protocol beyond 2012). The analysis of these risk insurance proposals to the Convention and comparison of what they intend to achieve with that of the existing issues within the risk insurance sector in the developing Asia indicate that these proposals address some of the major issues that are limiting the spread of risk insurance. However, no single proposal is comprehensive enough to address all the issues and all the proposals lack details in terms of how they can achieve what they intend to achieve. There is a need for the proposals to the Convention to give more thought on how they address the issues such as high base risks, lack of historical data required for risk assessment, limited awareness in the utility of insurance instruments, keeping the premium prices within affordable levels, and encourage the role of private sector, enable greater access to reinsurers, institute enabling policies to create a proactive risk mitigation environment with an eye on sustainability. A convergence approach wherein the proposals can derive lessons from on-the-ground experiences from regional, national and local initiatives and incorporating the same in their proposals could provide an effective model for promoting the risk insurance.

KEYWORDS: risk insurance, Climate change, adaptation, Asia-Pacific region

   

SOURCE: http://enviroscope.iges.or.jp/modules/envirolib/upload/3050/attach/ad-cc-working-paper2010-006.pdf

Credits: Luc Dubreuil - Massimo Lupascu