1. Local Practitioners and Climate Financing Initiatives Workshop, 30 – 31 October, 2012 Bangkok, Thailand Presenter: Syed Mujtaba Hussain Deputy Secretary Ministry of Climate Change Government of Pakistan

2. Sequence of presentation Climate Financing needs Urgency for Action Pakistan’s vulnerability to Climate Change The price tag ! Devolution process and challenges of implementation Proposed institutional mechanism for climate change in Pakistan

3. Climate Financing Needs Estimated annual incremental climate costs required for 2°C trajectory Billions

4. Urgency for action Countries in Asia-Pacific region are consistently impacted by extreme events In case of Pakistan nine out of the 10 extreme events in the last decade are climate impacted Adaptation to CC is fundamental as it reduces vulnerability and increases resilience to CC Climate Resilient/Climate compatible development is imperative Mitigation at local level brings in co-benefits like increased livelihoods, food and energy security, clean environment & capacity enhancement

5. Pakistan’s vulnerability to CC Pakistan lies on a steep incline dropping sharply from 8500 meters to sea level within almost 3000 Kms Recurring climate impacted disasters i.e. erratic monsoons, floods, droughts, cyclones, sea water intrusion, GLOF etc Such disasters have impacted our water, food and energy security 2010 floods and subsequently in 2011 have created 20 million and 9.72 million climate migrants respectively and economic losses of USD 9.6 billions

6. Global Climate Risk Index – 2010 (German Watch) RankCountryCRI Score Death Toll Deaths per 100000 inhabitants Absolute Losses (M $ PPP) Losses per unit GDP in % HDI 1Pakistan3.518911.1253165.42145 2Guatemala6.332291.5919692.80131 3Colombia8.03200.7075441.7387 4Russia11.05616539.355370.2566 5Honduras14.671391.732200.65121 6Oman17240.8113141.7389 7Poland17.831510.4047450.6639 8Portugal19.67470.4417490.7141 9China23.5028890.22333950.33101 10Tajikistan24.17270.352621.77127

7. The Impacts and Threats …….In a neighborhood of Unavoidable “vulnerability” with main issue being “WATER”...…both too much and too little and at wrong place.. Glacial Melting Zone

8. Variable Monsoons + Glacial Melting

9. This leads to….. Massive displacements and climate refugees……

10. Aerial view of Nowshehra city on 30 July, 2010

11. Climate migrants in the province of Sindh in 2011

12. The price tag ! MethodTime period Cost of adaptation per annum Actual (2010) One year (2010) 9.7++ As a percent of GDP 2010-205010.71 Per Capita Basis 2010-20507.12 to 14.0 Disaster Modeling (Floods only * 3) 2010-20506.09 to 11.3 Adaptation to climate change is going to be a high value figure in the future (US$ 6-14 bn per year range) Cost of mitigation is US$ 7-18 bn per year

13. Financing Options – Unilateral funding Climate Change National Budgetary Financing 2008-2009 Total Number of Projects 78 Total Cost 11.84 Billion U$ Total Allocation in 2008-2009 0.86 Billion U$ Total Foreign Assistance 1.89 Billion U$ 2007-2008 Total Number of Projects 68 Total Cost 2.75 Billion U$ Total Allocation in 2008-2009 0.67 Billion U$ Total Foreign Assistance 1.12 Billion U$ In 2007-2009 the country initiated climate related projects amounting to approx. U$ 14.5 billion –Allocating funds of U$ 1.5 billion from its national budget matched by foreign assistance of U$ 3 billion towards these projects Significant budgetary finance towards climate change So far “Un-recognized” at the global level …..!!

14. Linkages between various funding options for CF Local Funds for Climate Change Private Sector Funds International/Donor Funds Public Funds

15. Functions of the Federal Ministry of Climate Change in the aftermath of devolution process Formulation of National Policies, strategies, plans, programs and projects relating to climate change, environmental protection, biodiversity, ecology, forestry, rangelands and desertification Strategic guidance in terms of development of provincial/sub-nations plans, programs and projects Coordination with the provinces for capacity enhancement and implementation of projects and programs

16. Challenges of implementation Lack of knowledge and understanding of the subject i.e. capacity issues Climate change overshadowed by challenges like militancy, terrorism and weak economy Lack of understanding on part of the legislators and decision makers regarding linkage of CC with national security Lack of clarity about international obligations under various environmental and climate change conventions Weak communication and coordination mechanism Institutional mechanism for climate finance under evolution at national and subnational levels

17. Opportunities Delegation of authority/decentralization Mainstreaming of climate change into development Participatory process for needs assessment Benefits like water, energy and food security as well as income generation at local level Implementation at grass roots level Decision making powers with respect to finance Capacity enhancement Institutional development

18. Institutional arrangements for CC in Pakistan National CC Policy - MoCC National Action Plan - MoCC National Climate Change Fund Provincial Action Plan – Deptt. Of Env Provincial CC Fund District Action Plan – District Impl. Committee District CC Fund Village/Community Action Plan & Community CC Fund managed by CBOs/LSOs

19. Example of a Local level financing initiative in Pakistan Under the GLOF project in Northern Pakistan, Disaster Risk Management Committees at Community level established in two project sites Endowment Fund created The project has provided seed money of Rs. 1 million each for adaptation interventions in each site Community contributed 10% i.e. Rs.100 thousand for each site The fund is expected to reduce vulnerability and adapt to climate change extreme events This would lead to integration of local communities in project activities, ownership and sustainability

20. Thank you