1. 1 Portfolio Screening for Mainstreaming Adaptation to Climate Change Richard J.T. Klein 1,2, Siri E.H. Eriksen 3, Lars Otto Næss 4,5, Anne Hammill 6, Carmenza Robledo 7,8, Karen L. O’Brien 1 1 Potsdam Institute for Climate Impact Research, Potsdam, Germany; 2 SEI–Oxford, Oxford, UK; 3 University of Oslo, Oslo, Norway; 4 CICERO, Oslo, Norway; 5 University of East Anglia, Norwich, UK; 4; 6 IISD, Geneva, Switzerland; 7 Intercooperation, Berne, Switzerland 8 Swiss Federal Laboratories for Materials Testing and Research, Dübendorf, Switzerland Paper presented at conference “Development Day” Montreal, 3 December 2005

2. 2 Adaptation and development co-operation Climate change may undermine development activities (e.g. infrastructure, water, health, agriculture) Climate change may undermine development activities (e.g. infrastructure, water, health, agriculture) Communities and ecosystems that are intended to benefite from ODA may be vulnerable to climate change Communities and ecosystems that are intended to benefite from ODA may be vulnerable to climate change Development activities can affect vulnerability and adaptive capacity Development activities can affect vulnerability and adaptive capacity …Emerging interest and follow-up from donor agencies …Emerging interest and follow-up from donor agencies

3. 3 ‘Mainstreaming’ Involves the integration of policies and measures that address climate change into development planning and ongoing sectoral decision-making Involves the integration of policies and measures that address climate change into development planning and ongoing sectoral decision-making Ensures the long-term sustainability of investments and reduces the sensitivity of development activities to both today’s and tomorrow’s climate Ensures the long-term sustainability of investments and reduces the sensitivity of development activities to both today’s and tomorrow’s climate Efficiency and effectiveness gains Efficiency and effectiveness gains

4. 4 Mainstreaming adaptation Not only top-down integration of ‘traditional’ technology-based adaptation measures based on future climate scenarios (e.g. sea walls, promotion of drought resistant crops) Not only top-down integration of ‘traditional’ technology-based adaptation measures based on future climate scenarios (e.g. sea walls, promotion of drought resistant crops) Also involves integration of measures that address the underlying factors of vulnerability and don’t unwittingly increase vulnerability to climate variability and change (i.e. maladaptation) Also involves integration of measures that address the underlying factors of vulnerability and don’t unwittingly increase vulnerability to climate variability and change (i.e. maladaptation)

5. 5 Portfolio screening Systematic examination of an agency’s set of policies, programmes or projects, with the aim of identifying the links between climate change and an agency’s development priorities, such as poverty reduction, institutional development and capacity building.

6. 6 Why portfolio screening? Identify linkages between climate change and an agency’s development priorities/activities Identify linkages between climate change and an agency’s development priorities/activities Where there are experiences in dealing with climate variability and change, identify options for building on this (identify needs for capacity building) Where there are experiences in dealing with climate variability and change, identify options for building on this (identify needs for capacity building) Where the linkages appear weak, identify entry points through which climate adaptation can be supported Where the linkages appear weak, identify entry points through which climate adaptation can be supported Help operationalise linkages in the agency’s development strategies and planning tools at different levels Help operationalise linkages in the agency’s development strategies and planning tools at different levels

7. 7 Agency screenings to date Several agencies have conducted reviews or screenings of their policies, strategies, programmes or projects with respect to climate change Several agencies have conducted reviews or screenings of their policies, strategies, programmes or projects with respect to climate change World Bank, GTZ, NORAD, OECD, SDC World Bank, GTZ, NORAD, OECD, SDC Summarise experiences and draw lessons for a formalised portfolio screening tool to expand focus on climate-development linkages Summarise experiences and draw lessons for a formalised portfolio screening tool to expand focus on climate-development linkages

8. 8 Agency screenings: Lessons from review of current policies, programmes and projects Many linkages – climate change relevant to a large share of agencies’ activities Many linkages – climate change relevant to a large share of agencies’ activities Little or no consideration of climate change vulnerability and adaptation, even in areas with high current climate sensitivity Little or no consideration of climate change vulnerability and adaptation, even in areas with high current climate sensitivity Climate change mainly seen as a mitigation concern Climate change mainly seen as a mitigation concern Agency staff unclear on whether and how climate links to their day-to-day work Agency staff unclear on whether and how climate links to their day-to-day work

9. 9 Agency screenings: Lessons from screening processes Review policies and strategies (NORAD): Review policies and strategies (NORAD): + good basis for strategic discussions of links between ODA and climate change+ good basis for strategic discussions of links between ODA and climate change - lack of links to practical development- lack of links to practical development Review programmes and projects (GTZ, SDC, WB): Review programmes and projects (GTZ, SDC, WB): + clearest on how to incorporate adaptation into practical ODA activities+ clearest on how to incorporate adaptation into practical ODA activities - less clear on strategic choices- less clear on strategic choices Country case studies (OECD): Country case studies (OECD): Clearest descriptions of country-specific climate change issues and links to development agendaClearest descriptions of country-specific climate change issues and links to development agenda Country-specific screening less likely to be relevant in other areas and countriesCountry-specific screening less likely to be relevant in other areas and countries

10. 10 Agency screenings: Recommendations Need for practical tools for “climate proofing” of development co-operation Need for practical tools for “climate proofing” of development co-operation Use current climate risks as a starting point Use current climate risks as a starting point Focus on increased future flexibility Focus on increased future flexibility Integrate evaluation of climate change in existing planning routines Integrate evaluation of climate change in existing planning routines Need for awareness raising within agencies Need for awareness raising within agencies Use pilot activities to help implementation of adaptation measures Use pilot activities to help implementation of adaptation measures

11. 11 Challenges Reframing climate change from a predominantly environmental issue to also a concern for poverty reduction Reframing climate change from a predominantly environmental issue to also a concern for poverty reduction Identifying linkages and balance between climate change and other external stressors (economic globalisation, demographic changes, health challenges, other natural hazards) Identifying linkages and balance between climate change and other external stressors (economic globalisation, demographic changes, health challenges, other natural hazards) Relate climate change to stakeholders’ concerns Relate climate change to stakeholders’ concerns Make use of past experiences with climatic variations Make use of past experiences with climatic variations Develop tools that are cost-effective and adapted to current modes of operation Develop tools that are cost-effective and adapted to current modes of operation

12. 12 Outline of a portfolio screening…framework Work in progress Work in progress Complement other screening tools (World Bank, Danish Development Cooperation) Complement other screening tools (World Bank, Danish Development Cooperation) Four general components: Four general components: Identify links between climate and development activities – types of assessmentIdentify links between climate and development activities – types of assessment Compare against past and current activitiesCompare against past and current activities Raise awarenessRaise awareness Establish (other) conditions for successEstablish (other) conditions for success

13. 13 Identify Links… Defining parameters – scale, type of development activity to be screened Defining parameters – scale, type of development activity to be screened Different ways of understanding links (esp at project level) Different ways of understanding links (esp at project level) Risk Assessment: Quantifying the extent to which CC impacts pose risk to cost-effectiveness and other aspects of the viability of a projectRisk Assessment: Quantifying the extent to which CC impacts pose risk to cost-effectiveness and other aspects of the viability of a project Vulnerability Assessment: Evaluating the vulnerability of community/ecosystem at which project is targetedVulnerability Assessment: Evaluating the vulnerability of community/ecosystem at which project is targeted Environmental and Social Impact Assessment: Analysing the extent to which a project would affect (pos or neg) a system’s vulnerability to climate changeEnvironmental and Social Impact Assessment: Analysing the extent to which a project would affect (pos or neg) a system’s vulnerability to climate change

14. 14 Compare against past and current activities Build on existing experiences in dealing with climate risks Build on existing experiences in dealing with climate risks Information, partnerships, coping and adaptation strategiesInformation, partnerships, coping and adaptation strategies Assess capacity building needsAssess capacity building needs Identify entry points Identify entry points StrategicallyStrategically Agency operationsAgency operations

15. 15 Raise awareness Climate stress Climate stress Climate change Climate change Responses – mitigation and adaptation Responses – mitigation and adaptation Make the direct link to development activities Make the direct link to development activities

16. 16 Establish conditions for success Within the agency Within the agency Embedding screening within the agenciesEmbedding screening within the agencies Cross-departmental cooperationCross-departmental cooperation Devising a strategy for implementing results across the agencyDevising a strategy for implementing results across the agency Outside the agency Outside the agency Sharing experiences and results with other development agenciesSharing experiences and results with other development agencies Co-ordinating the portfolio screening with other policy processesCo-ordinating the portfolio screening with other policy processes

17. 17 Conclusions and the way forward Clear rationale for more attention to adaptation in development agencies’ work Clear rationale for more attention to adaptation in development agencies’ work Large scope for mainstreaming by using past experiences as well as current institutional set-up and procedures Large scope for mainstreaming by using past experiences as well as current institutional set-up and procedures Mainstreaming is not about applying climate change scenario(s) to current development interventions Mainstreaming is not about applying climate change scenario(s) to current development interventions Screening tool per se no panacea - process rather than a finished product Screening tool per se no panacea - process rather than a finished product Ultimately, screenings must address not only the way interventions are undertaken, but also which development pathways are chosen Ultimately, screenings must address not only the way interventions are undertaken, but also which development pathways are chosen