Climate Change and the Caribbean: Areas of InterventionFinancing for the Caribbean Sustainable Energy and Climate Change Unit (ECC), Infrastructure and Environment Department (INE)

Gerard AllengClimate Change Specialist, Sustainable Energy and Climate Change Unit (ECC)Inter-American Development Bank

Climate Change In Context Fourth Assessment Report (2007) of the IPCC:

“Warming of the climate system is unequivocal, as is now evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice and rising global average sea level.”

Climate change is an issue of today, not only tomorrow - need for a change of the message – respond to current climate variability and deal with future extreme events.

Vulnerability today will increase over time - need to reduce vulnerability

Implications for the Caribbean

Islands in the Caribbean are likely to be affected since:

• Sea level rise is expected to exacerbate inundation, storm surge, erosion and other coastal hazards, thus threatening vital infrastructure, settlements and facilities that support the livelihood of island communities.

• Deterioration in coastal conditions, for example through erosion of beaches and coral bleaching, is expected to affect local resources.

• By mid-century, climate change is expected to reduce water resources in many small islands, e.g. in the Caribbean and Pacific, to the point where they become insufficient to meet demand during low-rainfall periods.

• With higher temperatures, increased invasion by non-native species is expected to occur….

(Source: IPCC - AR4)

Implications for the Caribbean (cont.)Systems, sectors and regions in

the Caribbean are likely to be affected:

• Tropical rainforests where precipitation declines

• Coastal ecosystems: mangroves and salt marshes, due to multiple stresses

• Marine ecosystems: coral reefs due to multiple stresses;

• Low-lying coastal systems, due to threat of sea level rise and increased risk from extreme weather events

• Human health in populations with low adaptive capacity.

(Source: IPCC - AR4)

Cost of Impacts of Climate Change on the Caribbean (CCRIF, 2010)

• The cost of the impacts of climate change could be significant depending on the global action (or inaction) depending on which future climate scenario unfolds.

Barbados 2009 2030

Scenarios Today’s climate

Today’s climate

Moderate change

High change

Percent of total GDP

3 3 4 4

Jamaica 2009 2030

Scenarios Today’s climate

Today’s climate

Moderate change

High change

Percent of total GDP

6 6 7 9

St. Lucia 2009 2030

Scenarios Today’s climate

Today’s climate

Moderate change

High change

Percent of total GDP

3 3 4 5

• Adapting to climate change entails taking the right measures (need to avoid mal-adaptation) to reduce the negative effects of climate change (or exploit the positive ones). The right measures depends on what we are adapting to – which climate scenario (uncertainty).

• Adaptation is needed even if current emission levels are controlled since climate change impacts are already unavoidable due to past emissions.

• Adaptation measures can range from ecosystem based approaches (e.g. coastal wetlands management), to technological (e.g. sea defenses), behavioral (e.g. altered food and recreational choices), managerial (e.g. altered agricultural practices) or policy approaches (e.g. planning regulations, use of insurance schemes).

Primary Response of the Caribbean: Adaptation

• An integral strategy for adaptation in the Caribbean will be to build on disaster risk reduction best practices and climate risk management

• For the Caribbean, investment in mitigation technologies and practices has the benefits of energy security, sustainability (transition to a low carbon economy), additional income streams from participation in carbon markets (e.g. CDM) and moral persuasion.

Investment in mitigation is also a response option for the Caribbean

Response of the IDB to the climate change needs of member countries

• Use of financial instruments for climate change: - TCs & investment grants (SECCI funds)

- PBLs

• Development of Knowledge products - e.g. IDB Biofuels Sustainability Scorecard

• Mainstreaming of climate change intothe operations of the Bank

Projects in Pipeline: Pilot Program for Climate Resilience (PPCR) - (Climate Investment Funds – CIF)

Regional Pilot – Caribbean

Grants (US$60 – 75 million for the region) and concessional loans available for investment in scaling up adaptation measures

Activities will proceed along two tracks: • Country-based investments in highly

vulnerable countries: Haiti, Jamaica, Dominica, St. Lucia, St. Vincent and the Grenadines and Grenada.

• Region-wide activities involving regional organizations (e.g. CCCCC, CARICOM and OECS Secretariat, CDEMA, CIMH, CDB, UWI, CEHI, CFRM): focused on climate monitoring, institutional strengthening, capacity building and knowledge sharing

Jamaica program

Haiti program

Regional program

Dominica program

St. Lucia program

St. Vincent & Grenadines

program

Grenada program

Projects in Pipeline: Sustainable Energy and Climate Change

Regional Caribbean Carbon Neutral

Tourism Program

• Scope: Scaling-up of low carbon investments in the tourism sector and to reduce the sector’s vulnerability to climate change.

• Amount : US$839,250 (SECCI Funds)

• Beneficiary Countries : Region

• Executing agency: CCCCC

Energy Efficiency for Caribbean Water and Sanitation Companies Operators

• Scope: To assist water utilities in the Caribbean in improving energy efficiency and reduce energy costs, providing these utilities with an action plan to increase energy efficiency

• Amount : US$435,000 (SECCI Funds)

• Beneficiary Countries : Region

• Executing agency: IDB

Projects in Pipeline: Sustainable Energy and Climate Change

Country level (Investment Grants) Jamaica Wind and Solar

Development Program

• Scope: To undertake wind resource assessments of potential wind sites in Jamaica; to assess and improve the current Volt-Ampere Reactive (VAR) power system of the Wigton windfarm and; to conduct a feasibility study for a proposed residential solar power generation facility.

• Amount : US$750,000 (SECCI Funds)

• Beneficiary Countries : Jamaica

• Executing agency: Wigton Windfarm Ltd

Projects in Pipeline: Sustainable Energy and

Climate Change

Country level (Investment Grants)

Promotion of Energy Efficient Residential Lighting

• Scope: to promote the sustainable use of compact fluorescent lights (CFLs) in low income households in the Bahamas

• Amount : US$500,000 (SECCI Funds)

• Beneficiary Countries : Bahamas

• Executing agency: Ministry of the Environment

Projects in Pipeline: Climate Change related

Country level (Technical Cooperation)

Mainstreaming Climate Change Into National Development and Capacity Building for Participation in Carbon Markets

• Scope: to facilitate the mainstreaming process by enhancing the draft national climate change policy, strengthening the institutional capacity of the government to participate in carbon markets and exploring the feasibility of a climate change mitigation solution.

• Amount : US$307,500 (SECCI Funds)

• Beneficiary Countries : Trinidad and Tobago

• Executing agency: Ministry of Housing and the Environment

Improving the Delivery of Comprehensive Disaster Management

• Scope: to prepare a country disaster risk evaluation; and strengthen institutional capacity for disaster risk management, emphasizing ex ante risk reduction and incorporating climate change adaptation.

• Amount : US$500,000 (Disaster Prevention Fund)

• Beneficiary Countries : Trinidad and Tobago

• Executing agency: Ministry of National Security

Projects in Pipeline: Climate Change related

Country level (Technical Cooperation)

Supporting Guyana’s Low Carbon Development Strategy

• Scope: To provide support to the Cooperative Republic of Guyana in the process of establishing its Strategy on Low Carbon Development

• Amount : US$450,000 (IDB FSO)

• Beneficiary Countries : Cooperative Republic of Guyana

• Executing agency: Office of the President – The Office of Climate Change

Support for Improving Integrated Disaster Risk Management for Climate- Resilient Development

• Scope: To develop climate risk indicators for the country and improve flood preparedness in vulnerable districts and resorts; and to mainstream climate risk reduction at the regional level and in sector planning.

• Amount : US$300,000 (Korean Trust Fund)

• Beneficiary Countries : Suriname

• Executing agency: Ministry of Defense through the National Coordination Center for Disaster Preparedness

Projects in Pipeline: Climate Change related

Country level (Loans)

Coastal Risk Assessment and Management Program

• Scope: To build capacity in integrated coastal risk management in Barbados incorporating climate change adaptation

• Amount : US$30,000,000

• Beneficiary Countries: Barbados

• Executing agency: Coastal Zone Management Unit

Future Developments at the IDB: Implications for the Caribbean

• Ninth General Capital Increase (GCI-9 – US$70 Billion increase in ordinary capital between 2012 – 2015). Commitment to global environmental sustainability and adaptation / mitigation to climate change, while ensuring that energy requirements for development are met:

- 25% carve out of GCI-9 to increase lending to climate change initiatives, sustainable energy and environmental sustainability from 5% up to 25% at the end of 2015.

• Implementation of IDB’s Climate Change Strategy (CCS). The CCS provides a strategic framework to scale-up support to the region, mobilizing public and private sector financial and non-financial instruments.

Thank you

Contact InformationJuan Pablo Bonilla – ECC Chief

jbonilla@iadb.org

Gerard Alleng – ECC Coordinator for the Caribbean

gerarda@iadb.org