IFAD’s Climate Change Strategy EB Informal Seminar 14 December 2009 Elwyn Grainger-Jones Director, Global Environment and Climate Change International Fund for Agricultural Development

2 IFAD’s mandate and experience Changing Context Presentation Overview Strategy for a Climate Smart IFAD:  Goal  Purpose  Outputs  Inputs

3 Adaptation, climate resilience Mitigation, carbon emissions Copenhagen, UNFCCC Carbon market REDD Glossary/Climate Jargon

4 Board Feedback Have we reflected the changing external context and its implications for the rural poor correctly? (slides 5-6) Does the proposed goal and purpose statement reflect this changing context and our mandate? (slides 7-11) Are the four ‘climate smart’ building blocks and its underlying principles the right ones for the strategy? (slides 12-17)

5 Biophysical drivers  Temperature  Extreme events frequency, intensity  Rainfall patterns  Seasonal shifts  Sea level rise Global Rules Response  Global carbon target  Finance  Adaptation Framework  Land use mitigation rules 1. The Changing Context: Impacts ECOSYSTEMS/ ENVIRONMENTAL PROCESSES SUSTAINING AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY (food and cash crops, livestock and fisheries) RURAL INFRASTRUCTURE (rural roads, storage and processing, irrigation systems) RURAL LIVELIHOODS (migration, labour availability, food insecurity, conflict, forced sale of livestock and other assets) e.g. coastal ecosystems in Sri Lanka; rangeland ecosystems of Eastern Morocco e.g. rice production in Sierra Leone, rain-fed agriculture in Yemen, livestock sector in Mongolia (drought and Dzud) e.g. food insecurity in Niger, rural livelihoods in the high Andes (Altiplano) in Peru. e.g. damage to irrigation systems and other agricultural infrastructure in Viet Nam

6 Demand-led country- driven Sustainable resource management Integrated approach Targeting Rural Poor Institutions, governance Land Tenure Productivity Growth Credit Markets Continued emphasis…Anything different? Can’t think in historical averages Long term trends Potential emission reduction payment opportunities 1. The Changing Context: Implications Gender New sources of risk Eg: income Diversification Mauritius Eg: Sierra Leone Knowledge & Innovation Scarce resources: Managing conflict

7 2. Delivering Our Mandate To maximize IFAD’s impact on rural poverty reduction in the changing context of climate change Goal: Purpose 1 To be a leading international institution in supporting innovative approaches to reduce the vulnerability of poor rural communities to climate change Purpose 2 To help partner communities take advantage of available mitigation incentives Purpose 3 To inform a more joined up dialogue on climate change, rural development, agriculture and food security

8 IFAD PORTFOLIO: RURAL POVERTY REDUCTION  CLIMATE RISK  CARBON IMPACT Adaptation  Spectrum  Comparative advantage  New tools/approaches Mitigation  Ag potential  COP15 ambition/realism  PES experience 2. Delivering Our Mandate: Opportunities and Challenges Synergies

9 2. Delivering Our Mandate: Adaptation Vulnerability focus Impacts focus (Heather McGray, WRI, 2007) Addressing the drivers of vulnerability Activities seek to reduce poverty and other non- climatic stressors that make people vulnerable Building response capacity Activities seek to build robust systems for problem solving Managing climate risks Activities seek to incorporate climate information into decision-making Confronting climate change Activities seek to address impacts associated exclusively with climate change

10 Rangelands and pasture management Coastal management and fisheries Agriculture and land use mitigation in agriculture: What Physical Potential? Crop management Restoration of degraded lands Bio-energy Livestock management

11 Purpose 3 - To inform a more joined up dialogue on climate change, rural development, agriculture and food security Climate community Agriculture community Deeper challenge: country level coherence Using our voice

12 3. The Strategy Output: A Climate Smart IFAD Operating Model Staffing and Partnerships Finance Advocacy and Knowledge

13 Climate Smart Principles Deep integration of climate into IFAD programmes Decentralisation of accountability for climate operations to Regional Divisions

Integrating Climate into IFAD Operating Model Climate integration into COSOP, including climate assessment/proofing Design: climate proofing, risk- mapping/vulnerability and quality control (QE/QA); implement environmental screening; develop learning notes; integrate climate in financial & economic assessment tools Use/build on Results Management Framework; “adaptive adaptation” – build in new knowledge into project reviews Use of RIMS & integrate climate into annual portfolio reviews Better/more knowledge management; strengthened advocacy & communications; role of evaluation e.g. Carbon markets, explore potential for more national/regional programmes  Sustainable policies in-house Sustainable policies in-house

15 Staffing and Partnerships Internal HQ + in-country capacity and skills  Make more use of existing/latent skills  Upskilling/training  Expand our dedicated climate capacity Deployment:  a matrix-style climate and global environment hub, with staff shared with regions Strategy will review and deepen partnerships where this adds value: Strategy will review and deepen partnerships where this adds value:  Explore deeper knowledge partnerships Explore deeper knowledge partnerships  Country-level, including Agriculture Ministries engagement Country-level, including Agriculture Ministries engagement  Global Environment Facility Global Environment Facility  Rome based agencies Rome based agencies  Other IFIs, GM, CGIAR, civil society and the private sector Other IFIs, GM, CGIAR, civil society and the private sector

16 Finance ADDITIONAL GRANT-BASED RESOURCES IFAD SUPPLEMENTARY WINDOW ACCESS TO EXTERNAL FUNDS MORE FOCUSED USE OF EXISTING FINANCIAL RESOURCES

17 Advocacy and Knowledge Continued advocacy in support of action on climate change for the rural poor New internal network to manage climate knowledge and advocacy Knowledge products - guidance notes, case studies, lesson learning, participatory K products – culturally appropriate Staff and partners’ awareness on climate

18 IFAD’s mandate and experience Presentation Summary and Next Steps Changing Context Strategy for a Climate Smart IFAD: Process & Product:  Timing and consultations  Flexible and responsive  Short and focused  5-year change perspective  Goal  Purpose  Outputs  Inputs

19 Board Feedback Have we reflected the changing external context and its implications for the rural poor correctly? (slides 5-6) Does the proposed goal and purpose statement reflect this changing context and our mandate? (slides 7-11) Are the four ‘climate smart’ building blocks and its underlying principles the right ones for the strategy? (slides 12-17)