GCAP Blog

Bringing innovation to practice in adapting to climate change.

Private Sector Resilience snapshot – The ports sector in Colombia

Cartagena Port by Jorge Láscar cc2 0 4625657931 c10c927268 zA recent presentation on climate resilience in the Colombian ports sector from our expert Carlos Andres Sanchez Garcia, illustrating initial results from the GCAP/Grupo Laera – led project 'Private Markets for Climate Resilience in Asia, Africa and Latin America'. Highlights include:

Key climate risks to ports include sedimentation of the harbour bed, coastal erosion, sea level rise, and damage to facilities from extreme weather.

Impacts on businesses can be significant, from increased costs of maintenance and operations, to increased insurance premiums for ports in vulnerable zones.

Key resilience solutions include dredging to combat sedimentation, a three-stage ‘elevate, defend, retreat’ strategy to adapt to sea level rise, soft adaptation solutions for coastal erosion, and methods for increased access to climate data.

To see the full presentation visit the following page: https://www.slideshare.net/CarlosGarcia660/colombia-seaport-maritime-industry

For information on 'Private Markets for Climate Resilience' see the main project page here: http://www.climateadaptation.cc/our-work/projects/pmcr# 

About us

Established in 2010, GCAP (http://climateadaptation.cc) ranks among the top 10 leading climate think tanks globally, providing knowledge services related to national adaptation investment and finance, climate economics, climate adaptation strategy and planning and climate risk screening. A world class organisation, we support managers holding over $1 billion in funds. Our flagship, Oxford Adaptation Academy (http://www.climateadaptation.cc/our-work/adaptation-academy), is a unique incubator for leadership and innovation within the field of climate adaptation.

Dominic Molloy

Dominic Molloy is an Environmental Economist who works on economic research into ecosystems services, public policy, energy and sustainable land use. Bilingual, in English and Spanish, he has both developed and developing country experience. He has publications in green tourism, fiscal policy, financing for conservation, and the cost of conserving protected areas.  Currently based in Colombia, where he has been for the past 3 years, Dominic is working primarily on the IADB funded project ‘Private Markets for Climate Resilience in Latin America, Africa and Asia’, through GCAP’s Colombian partner Grupo Laera.

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The UK Climate Change Risk Assessment 2017

You might have missed it under the deluge of Trump and Brexit news, but the UK Climate Risk Assessment 2017 was published last month. A five-yearly requirement under the 2008 Climate Change Act, the results will be used to inform the development of the next instalment of the UK National Adaptation Programme, due in 2018.

The report agrees with the assessment of the 6 priority areas identified in the supporting Evidence Report and outlines the broad policy measures the Government is taking to address the risks identified. For a very accessible summary see this video by the Commitee on Climate Change.

UK CRA

Priority areas in the UKCRA 2017 

The good news here is that the Government remains committed to action on climate change, and confirms that statutory requirements under the 2008 Climate Change Act are not affected by Brexit. What we get in practice, however, will depend to a great extent on the evolution of UK policy on the Environment and Climate Change following withdrawal from the EU - as a recent House of Lords report makes clear, ensuring environmental protection (and enforcement) will be a complex process, with significant risk of watering down of regulations for short-term political gain. Regardless of what emerges from that process, what is clear is that action now is essential to create more resilient communities, business and infrastructre. 

Want to know more about how to successfully manage climate risks in your work, and identify opportunities to increase resilience? Applications are open for the 2017 Adaptation Academy in Oxford are now open! 

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The impact of failing to understand information flow within climate adaptation and resilience responses

Each year, at the Oxford Adaptation Academy, participants develop 'stakeholder maps' to establish the impact of their work and to highlight areas that their plans may not be addressing adequately. In a more traditional project management methodology, such as SSADM (Structured Systems Analysis and Design Methodology) or Business System Develop...
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3 key challenges for Green Investment Banks

A recent OECD/New Climate Economy report on Green Investment Banks (GIBs) has found that 12 ‘GIB or GIB-like’ institutions now exist across the world, almost all of which have been created in the past 5 years. While the progress highlighted in the report is promising, my impression is that 3 key challenges remain for these institutions in promoting large-scale, low-carbon resilient development:

  1. Achieving transformational change from a relative niche
  2. Increasing the focus on financing adaptation
  3. Moving away from a reliance on public funds

Transformational change from a relative niche

The finance mobilized by GIBs to date is not enough to ensure the low-carbon vision for the future laid out by the Paris Agreement, nor ensure resilience in our global infrastructure over the coming century. The flagship UK GIB has committed GBP 3.4billion to the UK’s ‘green economy’ since its inception (approximately USD 4.2billion at today’s exchange rates), compared to roughly USD 56billion invested nationally in clean energy and energy efficiency from Germany’s mainstream national development bank, KfW, in 2015 alone.

The OECD/NCE report concludes with an analysis of the merits of creating Green Investment Banks versus mainstreaming green principles across the board in existing National and Multilateral Development Banks. This is essentially a trade-off between the independence and maneuverability of smaller dedicated institutions, and the potential for impact of larger, established entities. One way or another a step change is needed in the current impact of GIBs.

An increased focus on adaptation

Within the objectives of the GIBs studied in this report, most mention tackling harmful greenhouse gas emissions, particularly through clean energy investments. But very few (if any) focus on preparing our current and future infrastructure to withstand the threats of climate change. All 4 of the UK GIB’s ‘investment sectors’, for example, are targeted at emission-reducing schemes in the energy sector, with no mention of climate resilience.

The focus of GIBs on mitigation over adaptation reflects a broader consensus that low-carbon investments offer more viable economic opportunities than projects focused on adaptation. There is some truth to this. The markets for renewable energy and energy efficiency are now well established, and offer short term returns on investments, as well as broader cost-saving opportunities. On the other hand, the market for products and services that offer climate resilience is still emerging, and complicated by the difficulties of defining and measuring adaptation and the long-term rates of return associated with resilience investments.

However, the market for resilience has the potential to be far greater than the market for low-carbon, and given the increasing costs associated with climate impacts, GIBs will need to become much smarter about promoting resilience, to ensure the longevity of the predicted USD 90trillion in infrastructure investments set to be made over the next 15 years.

Transition away from a reliance on public backing

Regardless of the perceived risks associated with the privatisation of UK GIB, this must be the ultimate goal of all such institutions, once initial public support has allowed them to achieve competitive rates of return. Whilst public control of GIBs lends benefits in the shape of transparency, accountability, and the security of investments, the reliance on public capitalization stymies the level of total finance that can be raised. To meet the estimated USD 16.5trillion of investment in mitigation needed to ensure global warming is kept to 2 degrees, let alone challenges of climate-proofing global infrastructure, climate-smart investments must prove themselves to be on a par with conventional investments in terms of rates of return, and tap into the vast well private capital looking for viable investments.

Green Investment Banks have shown solid results in terms of mobilizing private investment for infrastructure, creating jobs, and reducing emissions of harmful greenhouse gases. We wait to see if this new finance can achieve transformational sustainable development.

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Is Global Climate Change Good for Business?

Is Global Climate Change Good for Business?
By Steve Wilson

Steve Wilson, head of the proadapt facility in the Multilateral Investment Fund, outlines how the market for climate resilience is potentially far larger even than the rapidly growing markets of renewable energy and energy efficiency.

 

... A First Inquiry into the Market for Climate Resilience

 

A new study attempts to shed some light on the growing market opportunity posed by climate resilience. The inquiry, by the Global Climate Adaptation Partnership in the United Kingdom and Grupo Laera in Colombia, will assess the markets for climate-resilience solutions in two sectors, agriculture and transportation, in three emerging markets: Colombia, South Africa, and the Philippines. These solutions are in the form of many types of products and services that help buyer better manage their exposure to climate risks, and they also include emerging investment models and public-private partnerships that help to reduce climate vulnerability....

 

 Read the entire article here: http://www.huffingtonpost.com/fomin/is-global-climate-change_b_14552270.html

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