1. Adaptation costs and finances BASIC Workshop (Dr Habiba Gitay)

2. 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

3. 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

4. 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)

5. Various Funds for adaptation Adaptation fund –2% of the CDM: US$10-200 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 ???

6. 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

7. 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