Adaptation costs and finances BASIC Workshop (Dr Habiba Gitay)

Exposure to climate change and cost of adaptation Amount per yr Exposure to CC Costs of Adaptation Cost $B ODA and concessional lending $100B40%10-20%4 to 8 Foreign Direct Investment $160B10%10-20%2 to 3 Gross Domestic Investment $1500B2-10%10-20%3 to 30 TOTAL10 to 40

What will inaction cost? Various estimates : $10B - $100B per year in direct impacts in developing countries c.f. - Costs of adaptation $10B to $40B per year

Mitigation cost –(i) voluntary actions; –(ii) international grants; and –(iii) trade –Trade : biggest flow of funds for developing countries (about $20- $120 billion per year)

Various Funds for adaptation Adaptation fund –2% of the CDM: US$ million Special Climate Change fund –Technology transfer, adaptation and mitigation LDC fund – about US$40 million pledged GEF adaptation (SPA): 50 million in GEF III; GEF IV ???

Least Developed country actions on adaptation About 40 LDCs producing National Adaptation Plans of Action (NAPAs) 3 formally submitted now – several in draft Requests for “urgent priorities” for adaptation range from c.$8M- $200M Bangladesh requests $74M (0.1% of GDP) At recent workshop, LDCs requested $0.5M per country grant as next phase

Overall…. The costs of adaptation are substantial (i.e. billions of dollars per year) Costs of inaction are most likely very much greater Finances available/pledged are less than a billion Need to think innovatively of financing adaptation