Climate Change and the Caribbean: Areas of Intervention Financing for the Caribbean Sustainable Energy and Climate Change Unit (ECC), Infrastructure and Environment Department (INE) Gerard Alleng Climate Change Specialist, Sustainable Energy and Climate Change Unit (ECC) Inter-American Development Bank

Climate Change In Context Fourth Assessment Report (2007) of the IPCC: “ Warming of the climate system is unequivocal, as is now evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice and rising global average sea level.” Climate change is an issue of today, not only tomorrow - need for a change of the message – respond to current climate variability and deal with future extreme events. Vulnerability today will increase over time - need to reduce vulnerability

Implications for the Caribbean Islands in the Caribbean are likely to be affected since: Sea level rise is expected to exacerbate inundation, storm surge, erosion and other coastal hazards, thus threatening vital infrastructure, settlements and facilities that support the livelihood of island communities. Deterioration in coastal conditions, for example through erosion of beaches and coral bleaching, is expected to affect local resources. By mid-century, climate change is expected to reduce water resources in many small islands, e.g. in the Caribbean and Pacific, to the point where they become insufficient to meet demand during low-rainfall periods. With higher temperatures, increased invasion by non-native species is expected to occur…. (Source: IPCC - AR4)

Implications for the Caribbean (cont.) Systems, sectors and regions in the Caribbean are likely to be affected: Tropical rainforests where precipitation declines Coastal ecosystems: mangroves and salt marshes, due to multiple stresses Marine ecosystems: coral reefs due to multiple stresses; Low-lying coastal systems, due to threat of sea level rise and increased risk from extreme weather events Human health in populations with low adaptive capacity. (Source: IPCC - AR4)

Cost of Impacts of Climate Change on the Caribbean (CCRIF, 2010) The cost of the impacts of climate change could be significant depending on the global action (or inaction) depending on which future climate scenario unfolds. Barbados ScenariosToday’s climate Today’s climateModerate change High change Percent of total GDP3344 Jamaica ScenariosToday’s climate Today’s climateModerate change High change Percent of total GDP6679 St. Lucia ScenariosToday’s climate Today’s climateModerate change High change Percent of total GDP3345

Adapting to climate change entails taking the right measures (need to avoid mal-adaptation) to reduce the negative effects of climate change (or exploit the positive ones). The right measures depends on what we are adapting to – which climate scenario (uncertainty). Adaptation is needed even if current emission levels are controlled since climate change impacts are already unavoidable due to past emissions. Adaptation measures can range from ecosystem based approaches (e.g. coastal wetlands management), to technological (e.g. sea defenses), behavioral (e.g. altered food and recreational choices), managerial (e.g. altered agricultural practices) or policy approaches (e.g. planning regulations, use of insurance schemes). Primary Response of the Caribbean: Adaptation An integral strategy for adaptation in the Caribbean will be to build on disaster risk reduction best practices and climate risk management

For the Caribbean, investment in mitigation technologies and practices has the benefits of energy security, sustainability (transition to a low carbon economy), additional income streams from participation in carbon markets (e.g. CDM) and moral persuasion. Investment in mitigation is also a response option for the Caribbean

Response of the IDB to the climate change needs of member countries Use of financial instruments for climate change: - TCs & investment grants (SECCI funds) -PBLs Development of Knowledge products - e.g. IDB Biofuels Sustainability Scorecard Mainstreaming of climate change into the operations of the Bank

Projects in Pipeline: Pilot Program for Climate Resilience (PPCR) - (Climate Investment Funds – CIF)  Regional Pilot – Caribbean  Grants (US$60 – 75 million for the region) and concessional loans available for investment in scaling up adaptation measures  Activities will proceed along two tracks: Country-based investments in highly vulnerable countries: Haiti, Jamaica, Dominica, St. Lucia, St. Vincent and the Grenadines and Grenada. Region-wide activities involving regional organizations (e.g. CCCCC, CARICOM and OECS Secretariat, CDEMA, CIMH, CDB, UWI, CEHI, CFRM): focused on climate monitoring, institutional strengthening, capacity building and knowledge sharing Jamaica program Haiti program Regional program Dominica program St. Lucia program St. Vincent & Grenadines program Grenada program

Projects in Pipeline: Sustainable Energy and Climate Change Regional  Caribbean Carbon Neutral Tourism Program Scope: Scaling-up of low carbon investments in the tourism sector and to reduce the sector’s vulnerability to climate change. Amount : US$839,250 (SECCI Funds) Beneficiary Countries : Region Executing agency: CCCCC  Energy Efficiency for Caribbean Water and Sanitation Companies Operators Scope: To assist water utilities in the Caribbean in improving energy efficiency and reduce energy costs, providing these utilities with an action plan to increase energy efficiency Amount : US$435,000 (SECCI Funds) Beneficiary Countries : Region Executing agency: IDB

Projects in Pipeline: Sustainable Energy and Climate Change Country level (Investment Grants)  Jamaica Wind and Solar Development Program Scope: To undertake wind resource assessments of potential wind sites in Jamaica; to assess and improve the current Volt-Ampere Reactive (VAR) power system of the Wigton windfarm and; to conduct a feasibility study for a proposed residential solar power generation facility. Amount : US$750,000 (SECCI Funds) Beneficiary Countries : Jamaica Executing agency: Wigton Windfarm Ltd

Projects in Pipeline: Sustainable Energy and Climate Change Country level (Investment Grants)  Promotion of Energy Efficient Residential Lighting Scope: to promote the sustainable use of compact fluorescent lights (CFLs) in low income households in the Bahamas Amount : US$500,000 (SECCI Funds) Beneficiary Countries : Bahamas Executing agency: Ministry of the Environment

Projects in Pipeline: Climate Change related Country level (Technical Cooperation)  Mainstreaming Climate Change Into National Development and Capacity Building for Participation in Carbon Markets Scope: to facilitate the mainstreaming process by enhancing the draft national climate change policy, strengthening the institutional capacity of the government to participate in carbon markets and exploring the feasibility of a climate change mitigation solution. Amount : US$307,500 (SECCI Funds) Beneficiary Countries : Trinidad and Tobago Executing agency: Ministry of Housing and the Environment  Improving the Delivery of Comprehensive Disaster Management Scope: to prepare a country disaster risk evaluation; and strengthen institutional capacity for disaster risk management, emphasizing ex ante risk reduction and incorporating climate change adaptation. Amount : US$500,000 (Disaster Prevention Fund) Beneficiary Countries : Trinidad and Tobago Executing agency: Ministry of National Security

Projects in Pipeline: Climate Change related Country level (Technical Cooperation)  Supporting Guyana’s Low Carbon Development Strategy Scope: To provide support to the Cooperative Republic of Guyana in the process of establishing its Strategy on Low Carbon Development Amount : US$450,000 (IDB FSO) Beneficiary Countries : Cooperative Republic of Guyana Executing agency: Office of the President – The Office of Climate Change  Support for Improving Integrated Disaster Risk Management for Climate- Resilient Development Scope: To develop climate risk indicators for the country and improve flood preparedness in vulnerable districts and resorts; and to mainstream climate risk reduction at the regional level and in sector planning. Amount : US$300,000 (Korean Trust Fund) Beneficiary Countries : Suriname Executing agency: Ministry of Defense through the National Coordination Center for Disaster Preparedness

Projects in Pipeline: Climate Change related Country level (Loans)  Coastal Risk Assessment and Management Program Scope: To build capacity in integrated coastal risk management in Barbados incorporating climate change adaptation Scope: To build capacity in integrated coastal risk management in Barbados incorporating climate change adaptation Amount : US$30,000,000 Amount : US$30,000,000 Beneficiary Countries: Barbados Beneficiary Countries: Barbados Executing agency: Coastal Zone Management Unit Executing agency: Coastal Zone Management Unit

Future Developments at the IDB: Implications for the Caribbean Ninth General Capital Increase (GCI-9 – US$70 Billion increase in ordinary capital between 2012 – 2015). Commitment to global environmental sustainability and adaptation / mitigation to climate change, while ensuring that energy requirements for development are met: - 25% carve out of GCI-9 to increase lending to climate change initiatives, sustainable energy and environmental sustainability from 5% up to 25% at the end of Implementation of IDB’s Climate Change Strategy (CCS). The CCS provides a strategic framework to scale-up support to the region, mobilizing public and private sector financial and non-financial instruments.

Thank you Contact Information Juan Pablo Bonilla – ECC Chief Gerard Alleng – ECC Coordinator for the Caribbean