Adaptation - Global Climate Change Alliance

Global Climate Change Alliance 

Support Facility 

Module 5 

Raising awareness 

and building partnerships 

Training workshops on 

mainstreaming climate change

Tools supporting awareness raising 

and partnership building 

Assessing 

evidence 

Engaging key 

actors 

Vulnerability and 

adaptation 

assessments 

Macro and meso 

economic 

analysis 

Demonstration or 

pilot projects 

Communication 

& advocacy 

strategy 

Awareness 

raising & 

partnership 

building 

National 

consensus on 

and commitment 

to climateresilient 

and lowemission 

development 

Adapted from: UNDP-UNEP (2011) 

2

Vulnerability and adaptation 

assessment 

• A vulnerability and adaptation assessment 

would typically focus on 3 units of analysis: 

– Places: land, water, ecosystems, ‘natural capital’ and 

‘built infrastructure’ 

– People: individuals, communities, ‘human capital’, 

livelihoods 

– Institutions: sectors, organisations, how they relate to 

each other, ‘social capital’ 

• It should assess both current & future vulnerability 

to determine possible adaptation measures 

Source: Downing & Patwardhan (2004) 

3

Steps in community vulnerability & 

adaptation assessment 

4 

Source: IPCC (2007c) 

4 th Assessment Report, 

WG II - Fig. 16.3

Mapping vulnerability 

Exhibit 3 – Highly granular geographic information has been used to 

segment assets according to their elevation above sea level 

Elevation map of central Apia 

Elevation 

Approach 

• Starting point was a 

digital map of 

Samoa with contour 

lines (2m lines in 

coastal areas) 

• In a second step, a 

more granular 

segmentation of 

coastal areas was 

obtained by using 

state-of-the-art GIS 

software 

• Finally, geocoordinates 

of 

buildings and roads, 

were used to 

determine the asset 

exposure to coastal 

flooding risk 

0 m 

1 m 

2 m 

>4 m 

Building 

Road 

SOURCE: Team analysis 

Source: Economics of Climate Adaptation (2009) Test case on Samoa – Focus on 

risks caused by sea level rise, Fig. 03, p. 122 

5

Macro- and meso-economic 

analysis 

• Economic analysis may be a powerful tool for 

motivating policy makers to take action 

– Macro level: analysis of the impact climate change may 

have on the national economy 

– Meso level: analysis at the level of key sectors or subsectors 

of the national economy 

• The costs of inaction (climate-related losses) are 

compared with the net benefits of taking action (costs 

minus avoided losses) 

• The analysis should also consider the distribution of 

losses and benefits (among social groups, regions...) 

6

Vulnerability assessment with an 

economic focus: Mozambique 

7 

• Hazard assessment: evaluate 

location, severity, probable frequency 

of hazardous events 

• Assessment of direct loss potential: 

analyze/quantify impact of historical 

and probable future drought/flood 

events 

• Evaluation of adaptation scenarios: 

identify/formulate options to reduce 

drought- and flood-related risk and 

economic vulnerability 

Source: WB-RMSI-IFPRI-GFDRR (2007) Figure 9 (a), p. 19

Mozambique economic vulnerability 

assessment: methods 

• Assessment of direct economic loss potential 

from droughts/floods 

– Macro level and main economic sectors 

• Assessment of indirect economic loss potential 

– Macro level, based on interdependencies between sectors 

• Assessment of total loss potentials across sectors and 

geographical areas / administrative zones 

• Assessment of economic impact (in terms of avoided 

losses) of adaptation (‘risk mitigation’) options 

– Macro level and main economic sectors 

8

Tanzania: Expected losses across scenarios 

due to lower availability of electricity 

Annualexpectedloss in 2008 and 2030 

$m,2008dollars 

Cost of power cuts on 

GDP 

Cost of using individual 

generators 

Additional cost of 

power production 

14 

64 

55 

5 

4 

571 

141 

100 

330 

1320 

470 

350 

500 

2008: Today’s 

expected loss 

2030: Today’s 

climate 

2030: Moderate 

climate change 

2030: High 

climate change 

Percent loss in 

national GDP 

0.01 

0.09 

0.7 

1.7 

Without climate change, the available electricity would be sufficient to avoid GDP losses 

However, decreased rainfall in both climate change scenarios will lead to losses in GDP of up to 1.7% 

1 Current dollars 

2 60% of entities have their own generator 

Source: Economics of Climate Adaptation (2009) – Case study on central Tanzania – Figure 05, p. 129 

9 

•

Demonstration projects 

Test what 

works and 

does not work 

(relevance, 

effectiveness) 

Support 

lesson 

drawing for 

adaptive 

management 

Demonstration/ 

pilot projects 

Mobilise 

communities, 

local/regional 

authorities & other 

stakeholders 

Help foster 

interest and 

commitment 

of national 

authorities & 

other 

stakeholders 

Create motivation 

and knowledge 

for replication/ 

scaling-up 

Source: UNDP-UNEP (2011) 

10

Raising awareness and building 

partnerships (1) 

11 

• Assessing available evidence: 

– using the findings of relevant studies and 

demonstration/pilot projects 

• Engaging key actors: 

– identifying and mobilising key organisations involved in 

development at the national and sector levels 

– identifying and mobilising ‘champions’ 

Who might be good 

champions 

Are there already 

champions


partnerships (2) 

• Developing and implementing a communication 

and advocacy strategy in support of mainstreaming: 

– Define the target audience to be informed or influenced 

– Develop policy-relevant messages and materials based on 

evidence collected (e.g. policy briefs, radio programmes) 

– Select and use appropriate communication channels for 

the various target groups (e.g. media, sector working 

groups) 

12

Discussion and action planning 

13

Turning words into action 

• Understanding climate change science 

• Understanding and planning under uncertainty 

• Raising awareness and building partnerships 

What can be done and what are 

the institutional and capacity 

needs in your organisation 

14

15 

References (1) 

• Downing T. & Patwardhan A. (2004) Assessing Vulnerability for Climate Adaptation. In: Lim B. & 

Spanger-Siegfried E. (eds.) (2004) Adaptation Policy Frameworks for Climate Change: 

Developing Strategies, Policies and Measures. United Nations Development 

Programme/Cambridge University Press, New York. Available from: 

http://www.undp.org/climatechange/adapt/apf.html 

• Economics of Climate Adaptation Working Group (2009) Shaping climate-resilient development: a 

framework for decision-making. Climate Works Foundation, Global Environment Facility, 

European Commission, McKinsey & Company, The Rockfeller Foundation, Standard Chartered 

Bank & Swiss Re. Available from: 

http://www.mckinsey.com/clientservice/Social_Sector/our_practices/Economic_Development/Kno 

wledge_Highlights/Economics_of_climate_adaptation.aspx 

• IPCC (2007c) Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of 

Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate 

Change [Parry M.L., Canziani O.F., Palutikof J.P., van der Linden P.J. & Hanson C.E. (eds.)]. 

Cambridge University Press, Cambridge, UK & New York, NY, USA. Available from: www.ipcc.ch 

• UNDP-UNEP (2011) Mainstreaming Adaptation to Climate Change into Development Planning: A 

Guide for Practitioners. UNDP-UNEP Poverty-Environment Initiative. Available from: 

http://www.unpei.org/knowledge-resources/publications.html

16 

References (2) 

• WB-RMSI-IFPRI-GFDRR (2009) Economic Vulnerability and Disaster Risk Assessment in Malawi 

and Mozambique: Measuring Economic Risks of Droughts and Floods. World Bank, Washington, 

DC / RMSI, Noida, India / International Food Policy Research Institute, Washington, DC / Global 

Facility for Disaster Risk Reduction and Recovery. Available from: 

http://gfdrr.org/gfdrr/sites/gfdrr.org/files/publication/GFDRR_Econ._Vulnerability_DRR_Malawi- 

Mozambique.pdf



Module 6 

Mainstreaming climate change in 

national, sector and sub-national 

policies, strategies and programmes 



2 

Why mainstream climate change at the national, 

sector and sub-national levels

Why mainstream climate change 

at strategic planning levels 

3 

National level 

More: 

-integrated 

-effective 

-efficient 

-sustainable 

responses 

Sector 

coordination 

Allocation of 

resources 

across sectors 

Sector 1 

Sector 2 

Sector 3 

Biophysical 

impacts 

Socioeconomic 

impacts

Why mainstream climate change 

at strategic planning levels 


Overall guiding policy framework 

National legislation/regulation 

Exercise of some key functions 

Management of international 

relations 

Sector level 

Operationalisation and 

implementation of national policies 

Sector-specific 

legislation/regulation 

Wider pool of resources 

Wider ownership of response 

Own initiatives, development of 

capacities & good practices 

Transboundary cooperation on 

climate-relevant issues 

More widespread capacity and institution building 

Source: OECD (2009a) 

4

Why mainstream climate change at 

lower levels of governance 

Best levels for 

observing / 

understanding 

development 

and climate 

change impacts 

Sub-national 

and local levels 

Vulnerability 

and adaptive 

capacity are 

context-specific 

Most adaptation 

options require 

local 

implementation 

Potential for 

piloting / 

pioneering 

initiatives 


5

Key stakeholders and cross-level interactions 

6

7 

Key stakeholders 

Ministries of 

Finance, 

Ministries with 

Planning, 

sector-specific 

Development 

competences 

Donor 

agencies 

Members of 

Parliament 

Sector 

management 

agencies 

Civil society 

organisations 

Sub-national / 

local governments 

Research 

organisations 

Private 

sector 

Local 

private 

sector 

Local citizens 

& organisations

Top-down and bottom-up 

approaches to adaptation 

8 

National 

policies & 

strategies 


incl. sectors 

Focused on 

physical 

impacts and 

‘biophysical 

vulnerability’ 

Freely adapted from Dessai 

& Hulme (2004) 

Top-down 

Adaptation 

Subnational 

levels (local in 

particular) 

Bottom-up 

Stakeholder 

approach 

Focused on 

prevailing 

socio-economic 

& environmental 

conditions and 

on ‘social 

vulnerability’ 

Model- and 

scenario- 

driven 

Communitybased 

adaptation, 

pilot projects

9 

Main entry points for mainstreaming climate change 

in strategic policy and planning processes

Main entry points in the 

national and sector policy cycles 

Recognise 

climate risks 

Policy cycle 

stage 

Policy formulation 

Allocate funding for 

climate-specific 

actions 


National long-term vision 

National policies and 

strategies 

Sector level 

Sector policies and 

strategies 

Planning Multi-year development plan Sectoral plans 

Resource 

allocation 

Programming & 


National budget 

Climate-related fund(s) 

Sector-level development 

plans and budgets 

Sector budget envelopes 

Resources from fund(s) 

Sector programming 

Include 

climate 

considera 

-tions in 

project 

selection 

criteria 

Include climaterelated 

programmes/ 

projects (sectoral 

and cross-sectoral) 

Relocate funding to 

vulnerable or priority 

sectors/ regions 

Incorporate 

climate-related 

activities 

Adapted from: Olhoff & Schaer (2010) Fig. 1, p. 10 

10

Illustration: Climate change 

integration in the forestry sector (1) 

11 

Objectives: 

• Raise awareness and 

exchange views 

• Provide input into South 

Africa’s Forestry Climate 

Change Sector Plan 

• Contribute to the development 

of international guidelines on 

integrating CC issues into the 

forestry sector at policy level



• Range of stakeholders involved: 

– Department of Agriculture, Forestry and Fisheries (DAFF) 

– Department of Environmental Affairs (DEA) 

– Department of Trade and Industry (DTI) 

– Local Municipalities; 

– Council of Science and Industry Research (CSIR) 

– Industry representatives Forestry South Africa (FSA) 

– Independent Consultants 

12



• Some conclusions and recommendations: 

– Forestry sector makes important contribution to both 

adaptation and mitigation 

– Adaptation to be analysed from a livelihoods and poverty 

reduction perspective 

– CC to be integrated into existing forest policies, institutions, 

research programmes – no need for parallel policies and 

structures 

– Forest monitoring systems to be upgraded/expanded to support 

planning & monitoring of adaptation & mitigation 

– Knowledge management system to be developed to make best 

use of all existing (but often scattered/inaccessible) research 

and other data 

13

14 

Tools for mainstreaming climate change 

in strategic policy and planning processes

15 

Tools supporting awareness 

raising... 


adaptation 

assessments 

Macro and meso 

economic 

analysis 

Demonstration 

projects 

... are also useful for 

influencing policies and 

informing planning 

processes 

Awareness 

raising 

Influence on 

policies

EuropeAid’s climate change 

sector scripts 

16 

•Agriculture and rural development 

•Ecosystems and biodiversity 

management 

•Education 

•Energy supply 

•Health 

•Infrastructure 

•Solid waste management 

•Trade and investment 

•Water supply and sanitation

17 

Hazard and risk 

Probability of 

occurrence 

Hazard 

Risk 

Severity of 

consequences

18 

Climate risk screening 

• Identifies potential risks for a programme or 

project by assessing, in its specific context: 

Exposure to the 

effects of CC 

Sensitivity to such 

effects 

Response & 

adaptation capacity 

Maladaptation risk 

OPTIONAL: 

Impacts on climate 

(GHG emissions/ 

emission removals) 

• A standard screening questionnaire can be 

developed to support this exercise

Climate risk screening: 

key factors to consider 

• Location 

• Sector 

• Relationship of the planned intervention to 

livelihoods 

• Socio-economic conditions (current – projected) 

• Adaptive capacity of various stakeholder groups 

– Including current coping mechanisms / autonomous 

adaptation measures 

• Lifetime of the considered investments/activities 

19

Outcomes of climate risk 

screening 

None or low 

No specific action, or limited measures 

Vulnerability to the 

effects of CC 

Medium 

High 

Further investigation, adaptation 

measures 

Further investigation, redesign for 

reduced vulnerability/enhanced adaptive 

capacity, or even abandonment 

Risk of 

maladaptation 

No 

Yes 

No specific action 

Further investigation, redesign for 

reduced maladaptation risk, or even 

abandonment 

GHG emissions or 

emission removals 

Insignificant 

Significant (*) 

No specific action, or limited measures 

Further investigation and enhancement 

of mitigation potential 

(*) In proportion to the size/scope of the intervention 

20

Climate risk assessment 

• Climate risk assessment (CRA) is a dedicated 

study aimed at: 

– assessing in further detail the risks identified during 

climate risk screening 

– identifying possible risk prevention, risk mitigation and 

other adaptation measures 

– assessing these options 

– formulating concrete recommendations with regard to 

the design of the programme or project 

The assessment of future climate risks should be 

anchored to an assessment of current risks 

21

Strategic environmental 

assessment (SEA) 

22 

• A study: 

– aimed at analysing the environmental consequences of 

proposed policies/plans/programmes, as well as the main 

environmental opportunities, risks and constraints to be 

taken into account 

– for the purpose of promoting more sustainable 

development 

Ensures that environmental considerations are taken 

into account EARLY in the policy & planning process

Role of SEA in supporting 

climate change mainstreaming 

• With adequate ToR, SEA can: 

– identify elements of the considered policy or programme 

that are sensitive to or at risk from climate change 

– identify elements that may result in increased vulnerability 

to the effects of climate change 

– assess direct and indirect GHG emissions 

– identify options for risk management, adaptation and 

mitigation 

and make recommendations on alternatives, on institutional 

aspects, capacity building, etc. 

For a model of ToR, see handout or EC Guidelines on the 

Integration of Environment & Climate Change (2009), Annex 5 

23

Is the assessment linked to: 

A specific policy, strategy, 

programme or project 

Yes 

A specific policy or 

strategy 

No 

A specific programme 

No 

A specific project 

No 

Yes 

(†) 

Yes 

(†) 

Yes 

(†) 


adaptation assessment 

Strategic environmental 

assessment (*) 

Climate risk assessment 

Environmental impact 

assessment (*) 

(†) Climate risk screening can be applied before 

(*) With ToRs adapted to include 

undertaking a more detailed assessment climate-related considerations 24

Action planning 

25

26 


Mainstreaming climate change in national 

and sector policies, strategies and programmes 



needs in your organisation

References 

• Dessai S. & Hulme M. (2004) Does climate adaptation policy need probabilities Climate Policy, 

vol. 4 (2) 107-128. Available from: http://www.mikehulme.org/wp-content/uploads/2007/04/2004- 

dessai-hulme-probabilities.pdf 

• EC (2009) Guidelines on the Integration of Environment and Climate Change in Development 

Cooperation. European Commission, Brussels. Available from: 

http://ec.europa.eu/europeaid/infopoint/publications/europeaid/172a_en.htm 

• OECD (2009a) Integrating Climate Change Adaptation into Development Co-operation: Policy 

guidance. OECD Publishing, Paris. [Read-only, browse-it edition] Available from: 

http://browse.oecdbookshop.org/oecd/pdfs/browseit/4309171E.PDF 

• Olhoff A. & Schaer C. (2010) Screening tools and guidelines to support the mainstreaming of 

climate change adaptation into development assistance: A stocktaking report. Environment & 

Energy Group, United Nations Development Programme, New York. Available from: 

http://www.undp.org/climatechange/library_integrating_cc.shtml 

• South Africa (2010) Integration of Climate Change into the National Forest Programmes. Report 

of the South Africa workshop, Johannesburg, 22-23 April 2010. Available from: 

http://www.fao.org/forestry/21387-06a7a2a7e215f8f7bb7d84292b27492e7.pdf 

27



Module 7 

Costing, assessing and selecting 

adaptation and mitigation 

options and measures 



Linking policy, costing and 

budgeting 

2 

Mainstreaming of climate change in 

policies, strategies & programmes 

Identification of adaption and mitigation 

options 

Costing, assessment and selection of 

adaptation and mitigation options 

Resource allocation: Integration of 

adaptation and mitigation measures in 

budgets

3 

Tools for costing and assessing 

adaptation and mitigation options

Cost-benefit analysis: identifying 

costs and benefits 

4 

Adaptation 

Costs: extra costs incurred compared with the ‘business-asusual’ 

scenario 

Benefits: avoided damage and losses, extra developmental 

benefits compared with ‘business-as-usual’ scenario 

Mitigation 

Costs: extra costs incurred compared with ‘business-asusual’ 

scenario, reduced economic growth opportunities 

Can you 

think of 

some 

examples 

Benefits: cost savings, sales of carbon credits, positive 

environmental and related health/livelihoods outcomes (+ 

difficult to value: strategic and competitive advantages)

Cost-benefit analysis (1) 

• Cost-benefit analysis (CBA): 

– Quantifies all the costs and benefits (*) of an intervention 

(with benefits including both ‘positive’ benefits and 

avoided losses) over the entire lifetime of the intervention 

– A ‘discount rate’ is applied to all costs and benefits to 

represent ‘preference for the present’ or simply the 

opportunity cost of capital -> calculation of ‘present value’ 

• The higher the discount rate, the smaller the present value 

• The further away in the future, the smaller the present value 

• Significant controversies over the ‘right’ discount rate for assessing 

long-term options 

(*) Actually the ‘incremental’ costs and benefits, i.e. the difference in 

costs/benefits between a ‘with intervention’ and a ‘no intervention’ scenario 

5

6 

Cost-benefit analysis (2) 

Outputs of cost-benefit analysis: 

Cost-benefit ratio (CBR) 

Ratio of costs to benefits calculated 

at their present value (the smaller, 

the better – should be

Cost-effectiveness analysis (1) 

• Cost-effectiveness analysis (CEA): 

– Costs are valued in monetary terms, and benefits (*) 

quantified in ‘physical’ units, over the entire lifetime of the 

intervention; a discount rate is applied to both 

– This allows calculating unit costs, as the ratio of total 

discounted costs to total discounted benefits obtained 

– The obtained unit costs support : 

• the comparison of several options 

• comparison with ‘benchmark costs’ for similar interventions, where 

available 

(*) As in cost-benefit analysis, ‘incremental’ rather than absolute costs and 

benefits should be taken into account 

7

Cost-effectiveness analysis (2) 

• Compared with CBA, CEA: 

– is suitable where it is difficult to assign a monetary value 

to benefits 

– but requires identifying a single, all-encompassing 

measure of benefits – which may be both difficult and 

reductive 

8

Illustration of CEA: Global GHG 

abatement cost curve 

9 

Source: McKinsey (2009), Exhibit 8, p. 17

Example: land-based mitigation 

options 

Significant 

mitigation 

potential for 

developing 

countries 

Atmosphere 

CO 

CO 2 

2 

CH 4 

N 2 O 

Typically costeffective 

and 

requiring low 

upfront 

investment 

Forests 

Net sink (tree 

biomass + soil 

organic matter) 

Peatlands 

Largest & most 

efficient terrestrial 

store of carbon 

biomass 

Improved ecosystem 

management also 

supports adaptation 

Grasslands 

Net carbon sink if 

not degraded 

Cultivated 

systems 

Both a sink and a 

source of GHGs, 

net balance 

depends on 

cultivation 

methods 

10

11 

Financial and economic analysis 

• Both CBA and CEA support: 

Basis for private 

sector decision 

making 

– financial analysis: considers the ‘monetary’ costs and 

benefits (or equivalent) accruing to parties directly 

concerned by a project or programme, at their ‘face value’ 

– economic analysis: broadens the analysis to more 

accurately reflect costs and benefits to society 

Basis for public 

sector decision 

making

Complementary tools 

• For the assessment of robustness and the 

integration of uncertainty, CBA/CEA can be 

combined with: 

– the use of multiple scenarios (e.g. ‘no change’ scenario 

and various climate change and development scenarios) 

– sensitivity analysis (i.e. testing of the effect of changes in 

scenario assumptions on the CBR, NPV, IRR or unit costs) 

– risk analysis (-> risk probability analysis includes the 

probability of occurrence of various cost and benefit 

outcomes in calculations... assuming probabilities are known) 

12

13 

Tools for prioritising and selecting adaptation and 

mitigation measures

Supporting decision making 

• CBA/CEA support the financial and economic 

assessment of adaptation/mitigation options 

– They help identify measures that offer the best ‘value for 

money’ – a key aspect in situations of budgetary 

constraints 

• Other types of assessment and other criteria (e.g. 

technical, social, environmental) are required to fully 

inform decision makers 

Multi-criteria analysis (MCA) helps 

integrate various criteria 

14

Multi-criteria analysis (1) 

• An approach to decision support that uses 

more than one criterion to assess performance and 

rank various options or interventions 

• The term actually covers a wide range of methods 

• Typically: 

– various options or interventions are assessed against a 

pre-determined set of criteria 

– qualitative ratings or quantitative scores are given 

– rules are then applied to rank options/interventions 

• Numerical scores can be added up to calculate a total score (with 

the possibility of applying different weights to different criteria) 

15

Multi-criteria analysis (2) 

• MCA is a useful complement to CBA/CEA 

• Allows combining financial/economic criteria with 

technical, environmental and social ones 

• It can be used on its own, or in combination with 

CBA/CEA: 

MCA before CBA/CEA 

Allows reducing the number of 

options to which CBA/CEA is applied 

MCA after CBA/CEA 

CBA/CEA helps eliminate financially 

or economically unviable options, 

then MCA allows for final selection 

based on extra criteria 

16

Example of MCA grid: options for 

addressing water supply reduction 

Polokwane, 

South Africa 

Adaptation option 

Water conservation & 

demand management 

(existing) 

Effective 

-ness 

Cost 

Technical 

feasibility 

Social & 

cultural 

feasibility 

Speed 

High Low High High High 

Level of service (future) High Low High Low Medium 

Recycle (urban) Medium High High Medium High 

Reuse (mining) Low High High High Medium 

Reallocation of dam yield Medium High High Medium High 

Conjunctive use Low Low High High Medium 

Expand well fields Low Low High High High 

Build new dam High High High Medium Low 

Rainwater harvest Low Low High High High 

Source: USAID (2007), Exhibit 12, p. 18 

17

Action planning 

18

19 


Costing, assessing and selecting adaptation 

and mitigation options and measures 



needs in your organisation

References 

• McKinsey & Company (2009) Pathways to a Low-Carbon Economy: Version 2 of the Global 

Greenhouse Gas Abatement Cost Curve. Available from: 

http://www.mckinsey.com/globalGHGcostcurve 

• USAID (2007) Adapting to Climate Variability and Change: A guidance manual for development 

planning. United States Agency for International Development, Washington, DC. Available from: 

http://pdf.usaid.gov/pdf_docs/PNADJ990.pdf 

20



Module 8 

Mainstreaming climate change 

in the budgetary process 



2 

Implications of climate-related policies and measures 

for public revenue and expenditure

Implications of climate change 

integration on the revenue side 

3 

+ 

- 

Taxes on 

economic 

activities related to 

climate adaptation R 

& mitigation 

E 

measures 

Reduced taxes on 

activities that 

shrink or fail to 

develop as a result 

of adaptation or 

mitigation policies 

V 

E 

N 

U 

E 

S 

Foreign grants & 

other financial 

transfers related 

to adaptation & 

mitigation 

Carbon tax 

/ Taxes on 

highemission 

activities 

Growth 

effects from 

increased 

competitive- 

ness 

Revenues

Implications of climate change 

integration on the expenditure side 

4 

+ 

- 

Subsidies for 

adaptation & 

mitigationrelated 

activities 

Reduced subsidies 

for fuel 

consumption and 

other highemission 

activities 

Current expenditures 

in relation to 

adaptation & 

mitigation activities R & 

specific infrastructure 

E 

maintenance V 

E 

Reduced spending N on 

healthU 

care, 

infrastructure E 

replacement S etc. as a 

result of successful 

adaptation measures 

Public investment 

(capital expenditure) 

in adaptation and/or 

mitigation-related 

infrastructure 

Expenditures

5 

Linking the budget to policy 

objectives and expected results

6 

Linking spending to policy and 

results, with a medium-term outlook 

National objectives and strategies 

Medium-term 

sector plans 

Medium-term budget perspective 

or expenditure framework 

Annual budget 

Implementation & service delivery 

Performance monitoring

The medium-term expenditure 

framework (MTEF) 

• A forward-looking budgetary planning tool 

covering a 3 to 5-year period 

– systematically links strategic objectives (national/sectoral) 

and related outputs/outcomes with actions required to 

achieve them, corresponding expenditures and resources 

– supports the prioritisation of expenditures and the 

predictability of resources 

– facilitates performance monitoring 

• Can be established at the national level (inter-sectoral 

allocations) as well as the sectoral level (intra-sectoral 

allocations) 

7

8 

In practice 

• MTEFs are rather sophisticated tools, and 

few countries have full-fledged MTEFs 

• The preparation of medium-term projections of 

national and/or sector expenditures is a good 

starting point 

• The uncertainties associated with projections and 

forecasts should be recognised 

What is the practice in your 

respective countries

Entry points for climate change mainstreaming 

9

Climate change at the resource 

allocation stage 

• The mainstreaming of climate change requires: 

– reallocating funding to more vulnerable and/or priority 

sectors and regions 

– providing funding for adaptation- and/or mitigation-specific 

plans or activities 

– adding climate change considerations to the criteria for 

screening and selecting projects and investments 

– making room for ‘cross-sectoral’ activities (e.g. DRR) 

• This process typically involves a mix of top-down 

and bottom-up processes 


10

Key stages in budget preparation 

and related entry points (1) 

11 

Key stages 

1. Determination of macroeconomic 

outlook 

2. Multi-year strategic planning: 

medium-term fiscal strategy, 

medium-term expenditure 

framework 

3. Determination of next year’s: 

-expected revenues 

-acceptable level of deficit 

-global level of expenditures 

4. Pre-allocation of expenditures 

among line ministries, according to 

policy priorities 

Impacts of CC on economic 

activity & growth 

Key actors 

Min. of Finance/Planning, adaptation/mitigation statistical on 

office, central bank 

Cabinet, Min. of Finance 

Impacts of CC 

economic activity & growth 

Extra costs of adaptation / 

mitigation measures 

Extra resources 

required / pledged 

Min. of Finance (Budget Dept, 

Macroeconomic Extra revenues Dept), / cost Cabinet 

savings resulting from 

adaptation/mitigation 

Cabinet, Re-allocation Min. of of Finance funds (Budget 

Dept) support of adaptation/ 

mitigation objectives

Key stages in budget preparation 

and related entry points (2) 

Key stages 

5. Preparation/Circulation of budget 

circular & expenditure ceilings 

6. Costing of sectoral policies, 

submission of bids 

7. Review of sectoral bids, testing of 

cost estimates, finalisation of 

budget estimates 

8. Negotiations, followed by 

endorsement of budget 

9. Preparation of appropriation bill 

and budgetary documents 

10. Submission of budget to 

Parliament – Discussion & adoption 

Key actors 

Instructions on costing 


policies & measures 

Min. of Finance (Budget Dept) 

All ministries Costing && integration government of 

agencies 

adaptation/mitigation policies & measures 

Min. of Finance (Budget Dept), 

Use of climate risk 

Cabinet 

screening procedures 

Min. of Finance, other 

Ministries/agencies, policies & measures Cabinet 

Prioritisation of adaptation/mitigation 

Min. of Finance (Budget Dept) 

Min. of Finance, Parliament 

Discussion of adaptation/mitigation 

policies & measures 

12

Keeping track of climate-related 

expenditures 

• During budget preparation, implementation, 

monitoring and reporting, ‘keep track’ of main climaterelated 

public expenditures 

– Adapt the budget classification 

– ‘Flag’ incremental climate-related expenditures embedded in 

‘non-climate’ programmes 

• This is important for: 

– monitoring the implementation of climate-related measures 

in national and sector strategies 

– reporting to the UNFCCC (national communications) 

– securing eligibility for funding from specific climate 

adaptation/mitigation funds 

13

Public expenditure reviews (PERs) 

14

Public expenditure reviews (PERs) 

• A tool for analysing how budget resources are 

planned, allocated and actually spent across 

competing claims, objectives and priorities 

• PERs can be used as a tool for supporting the 

mainstreaming of climate change 

– Track adaptation- and mitigation-related expenditures 

– But also, importantly: focus on public expenditure’s overall 

contribution to climate-resilient, low-emission development 

outcomes 

15

Entry points for mainstreaming 

climate-related aspects in a PER 

Aspect 

Budget planning 

process 

Expenditure trends 

and categories 

Budget financing 

Issues to consider 

Role of climate-related considerations in allocation 

decisions 

Actual spending on vs. allocations to: 

* adaptation- and mitigation-friendly measures 

* development programmes with a focus on climate risk 

management, climate-resilient / low-emission development 

Availability of recurrent funding vs. capital investment for 

climate risk monitoring and management 

Level of and trends in allocations to climate-relevant sectors 

and agencies 

Origin of such allocations (internal vs. external funding) 

Possibility of increasing resources for climate-resilient 

development 

Sources: UNDP-UNEP (2011), World Bank (n.d.) GN4 

16


17


• Mainstreaming climate change in the 

budgetary process 

• Using Public Expenditure Reviews 




18

19 

External resources 

Main sources: www.climatefundsupdate.org, UNDP-UNEP (2011)

Main sources of external 

financing (1) 

20 

Source of funding 

Development cooperation programmes 

Least Developed Countries Fund 

Special Climate Change Fund 

GEF Trust Fund’s climate change focal 

area 

Adaptation Fund 

Green Climate Fund 

(operations not yet started) 

Clean Technology Fund 

Strategic Climate Fund (SCF) - Pilot 

Program for Climate Resilience 

Activities supported 

Adaptation and mitigation with a focus on dvpt 

Preparation and implementation of NAPAs) 

Adaptation (priority objective), technology 

transfers, mitigation in high-potential sectors 

Mitigation projects, adaptation demonstration 

projects and ‘enabling activities’ 

Projects and programmes that reduce the 

vulnerability of communities and sectors to CC 

Channel for future multilateral funding for 

adaptation 

Demonstration, deployment and transfer of lowemission 

technologies 

Climate risk and resilience mainstreaming in 

development planning


financing (2) 

21 


SCF- Forest Investment Program 

SCF - Program for Scaling Up 

Renewable Energy in Low-Income 

Countries 

Fast Start Finance 

REDD+ (various streams of funding incl. 

UN-REDD, which promotes the 

mainstreaming of REDD strategies in 

national development) 

Prototype Carbon Fund 

BioCarbon Fund 


REDD- related activities, sustainable forest 

management 

Deployment of renewable energy sources 

Adaptation and mitigation measures in 

developing countries 

Preparation, pilot implementation and 

deployment of national strategies for reducing 

emissions from deforestation/forest degradation 

Pioneering approaches to mitigation that 

contribute to sustainable development 

Carbon sequestration projects in forests and 

agro-ecosystems


financing (3) 

22 


Forest Carbon Partnership Facility 

Carbon Partnership Facility 

Global Energy Efficiency and 

Renewable Energy Fund 


MDG Achievement Fund, ‘environment 

and climate change’ thematic area 

Clean Development Mechanism 

Voluntary carbon markets 


Preparation of national REDD strategies, pilot 

financial transfers based on verified emission 

reductions from REDD 

Long-term, post-2012 mitigation projects 

Energy efficiency and renewable energy projects 

Mainstreaming of CC in poverty reduction and 

national development strategies 

Adaptation, DRR, participation in REDD/CDM 

Mainstreaming of environmental issues in 

national and sub-national policies, planning and 

investment frameworks 

Mitigation projects in developing countries 

Mitigation projects

Budget support 

• The transfer of financial resources of an 

external financing agency to the National Treasury 

• Provides extra resources for the national budget 

– either grants (e.g. EC) or loans (e.g. World Bank) 

• National procedures apply to the commitment and 

disbursement of funds 

– implementation via the national Public Financial 

Management system => reduced transaction costs, 

increased ownership 

23

Overview of EC budget 

support modalities (1) 

• Budget support is provided in the form of: 

– sector budget support -> support for a sector policy/ 

programme 

– general budget support -> support for an overall 

development, poverty reduction or reform strategy 

• Joint budget support operations are conducted with 

other donors where such initiatives exist 

• Usually 3-4 year programmes with annual 

disbursements 

24



25 

• General eligibility conditions: 

1) Existence of a well-articulated national or 

sectoral policy/strategy to which the budget 

transfer will contribute 

2) Reasonably stable macroeconomic framework 

3) Reliable or improving public financial 

management



• Annual disbursements include two types of 

‘tranches’ 

– fixed tranche: paid in full as long as eligibility conditions 

are maintained 

• provides an element of predictability 

– variable tranche: paid in full or in part based on actual 

performance against an agreed set of criteria and targets 

(as long as eligibility conditions are maintained) 

• criteria/targets in principle taken from the PAF associated with the 

supported policy or strategy 

• provides a results-oriented performance incentive 

26

Climate change-related budget 

support in Africa (GCCA funding) 

• Mauritius: 

– ‘Environment aid programme for Mauritius’ -> support 

for improved consistency between economic reform and 

environmental sustainability, including CC adaptation and 

mitigation 

• Rwanda: 

– ‘Land tenure reform programme’ -> support for improved 

land/soil management practices, thus enhancing agriculture 

and livelihoods resilience to CC 

• Seychelles: 

– ‘Climate change support programme’ -> mainstreaming of CC 

in national and sector policies/action plans 

27

National funding entities 

• Several countries have now established 

‘national funding entities’ to: 

– channel and manage external funding related to CC 

– leverage existing funds and initiatives (incl. those financed 

with national resources) 

– support the mainstreaming of climate-related programmes 

and projects into national development strategies 

• Expected benefits: 

– Alignment of external funding with national priorities 

– Building of national capacities and institutions 

– Scaling up of the response to climate change 

28


29


• Accessing external resources to support climate 

change mainstreaming 

• Using budget support 




30

References 

• Climate Funds Update: www.climatefundsupdate.org 

• OECD (2009a) Integrating Climate Change Adaptation into Development Co-operation: Policy 

guidance. OECD Publishing, Paris. [Read-only, browse-it edition] Available from: 

http://browse.oecdbookshop.org/oecd/pdfs/browseit/4309171E.PDF 

• UNDP-UNEP (2011) Mainstreaming Adaptation to Climate Change into Development Planning: A 

Guide for Practitioners. UNDP-UNEP Poverty-Environment Initiative. Available from: 

http://www.unpei.org/knowledge-resources/publications.html 

• World Bank (n.d.) Mainstreaming Adaptation to Climate Change in Agriculture and Natural 

Resources Management Projects. World Bank, Washington, DC. Guidance Note #4 – Developing 

Readiness for Institutional Capacity Development and an Enabling Policy Framework. [Online] 

Available from: http://climatechange.worldbank.org/climatechange/content/mainstreamingadaptation-climate-change-agriculture-and-natural-resources-management-project 

31



Module 9 

Mainstreaming climate change 

in monitoring systems 



2 

Performance measurement and monitoring: 

Key concepts

Objectives and related 

indicators/milestones 

O 

u 

t 

c 

o 

m 

e 

s 

Hierarchy of objectives 

Overall objective(s) 

Specific objective(s) 

Progress measurement 

Impact indicators 

Outcome indicators 

P 

r 

o 

c 

e 

s 

s 

Intermediate results 

Inputs 

Output indicators 

Milestones 

Input indicators 

Milestones 

Adapted from: EC (2004), OECD (2002) 

3

4 

Mainstreaming climate change in monitoring systems

What should be monitored, 

and why 

5 

Aspect to monitor 

Climate variability and change, 

impacts and vulnerabilities 

Policy and institutional change 

Policy/Strategy implementation and 

outcomes 

Rationale for monitoring 

• Make decisions as well informed as 

possible 

• Support adaptive management 

• Promote the institutionalisation of 

climate change mainstreaming 

• Enhance the transparency and 

accountability of the mainstreaming 

process 

• Strengthen commitment to the 

objectives set in policies and 

strategies 

• Stimulate the achievement of 

tangible outcomes

Climate change in the national 

development monitoring system 

• Climate monitoring should be integrated 

into wider national and specific development 

monitoring systems 

=> Strengthen and adapt existing monitoring systems 

(incl. statistical systems) to integrate climate change 

• Build on existing institutions and sources of information... 

• ... but adapt statistical systems and data sources 

6

Levels at which to measure 

climate-related performance 

7 

• Indicators and milestones related to climate 

change and the associated response can be 

included in the PAFs (*) of climate change 

strategies and actions plans, but also those of: 

– national and sectoral development strategies and 

programmes 

– sub-national (e.g. regional, local) development plans 

– individual projects (logical framework) 

(*) Performance assessment frameworks 

Ultimate objective of 

mainstreaming!

8 

Monitoring climate change 

Meteorology, 

climate 

variability 

Climate change 

• Data collection, 

management and 

dissemination 

• Strengthening of 

meteorological 

information & systems 

Mainstreaming 

Is the mainstreaming 

process based on 

reliable information 

• New patterns 

• Emerging trends 

•Projections, scenarios 

• Tools for assessing 

impacts, vulnerabilities 

& risks

Monitoring policy and institutional 

change 

Policy change 

Institutional 

change 

• Integration of 


considerations in 

national & sector 

policies/strategies 

• Development of 

adaptation- & 

mitigation-oriented 

policies & plans (e.g. 

DRR, REDD 

strategy) 

Mainstreaming 

Is mainstreaming 

getting 

institutionalised at 

all levels 

• Political leadership 

• Inst’l commitment 

• Coordination & 

participatory 

mechanisms 

•Procedures 

• Systems 

•Tools 

•Capacity building 

programmes 

9

Monitoring policy implementation 

and outcomes 

10 

Implementation 

(inputs, outputs) 

Outcomes, 

impacts 

• Increased allocation 

of resources 

• (Inclusion of) 


(measures in) 

programmes/projects 

• Implementation & 

enforcement of 


measures & 

regulations 

Mainstreaming 

Does the 

mainstreaming 

process produce 

results and impacts 

• Increased resilience 

of vulnerable groups 

(women, children, farmers, 

coastal communities, ...) 

• Increased resilience 

of key sectors 

• Green growth, 

green jobs 

• Climate-resilient, 

low-emission 

development

11 

Performance assessment frameworks 

and budget support

Role of PAFs in relation to 

budget support 

• Progress measured against the PAF’s criteria 

and targets provides opportunities for policy 

dialogue in the context of budget support 

– Increasingly, the PAF associated with development and 

poverty reduction strategies is likely to include indicators 

and targets associated with climate change adaptation, 

disaster risk reduction, energy efficiency, etc. 

• In the case of EC budget support, performance 

against a chosen sub-set of criteria and targets 

also determines the final amount of disbursements 

12

Illustration: Seychelles Climate 

Change Support Programme (1) 

• Overall objective: 

– ‘Enhance the sustainability of Seychelles development 

and economic reforms through mitigation policies and 

building resilience for adaptation to climate change impacts’ 

• Expected results: 

– effective mainstreaming of climate change in national 

development policies and in key sector strategies and 

action plans 

– a solid institutional and legal framework in the energy sector 

integrating the Clean Development Mechanism 

• EU support provided under GCCA framework in 

addition to existing GBS 

13

Illustration: Seychelles Climate 

Change Support Programme (2) 

14 

Performance monitoring and criteria for 

disbursement: 

Tranche 

Criteria 

2010 •Approval by Cabinet of the National Climate Change Strategy. 

•Approval by Cabinet of the Energy Policy. 

2011 •Climate change mainstreamed in at least 3 key sectors of EMPS. 

•Approval by Cabinet of Energy Bill allowing for CDM projects. 

2012 •Climate change mainstreamed into all sectors of EMPS. 

•Amendments to the Town and Country Planning Act and Environment 

Protection Act coherent with the SNCCS, approved by Cabinet. 

•Enactment of the Energy act. 

EMPS = Seychelles Environment Management Plan 

SNCCS = Seychelles National Climate Change Strategy


15


• Monitoring climate change 

• Monitoring policy and institutional change 

• Monitoring policy implementation and outcomes 




16

References 

• EC (2004) Project Cycle Management Guidelines. Aid Delivery Methods series, Volume 1. 

European Commission, Brussels. Available from: 

http://ec.europa.eu/europeaid/infopoint/publications/europeaid/documents/49a_adm_pcm_guideli 

nes_2004_en.pdf 

• OECD (2002) Glossary of Key Terms in Evaluation and Results Based Management. OECD 

Publishing, Paris. Available from: http://www.oecd.org/dataoecd/29/21/2754804.pdf 

17



Module 10 

Synthesis, conclusions 

and way forward 



Recap of the framework and tools 

2

Finding the entry points 

and making the case 

Mainstreaming CC into 

policy and planning 

processes 

Meeting the 


challenge 

Mod1 

Mod3 

Mod4 

Mod5 

Preliminary assessments 

Understanding CC– 

development linkages 

Understanding the science 

Understanding climaterelated 

uncertainties 

Raising awareness and 

building partnerships 

National consensus and 

commitment to climateresilient, 

low-emission 

development 

Mod6 

Mod7 

Collecting country-specific 

evidence and influencing 

policy processes 

Mainstreaming CC in 

(sub)national and sector 

policies, strategies, 

programmes 

Costing, assessing and 

selecting adaptation and 

mitigation options and 

measures 

Mod8 

Mod9 

Budgeting and financing 

Mainstreaming CC in the 




Performance assessment 

frameworks 

Supporting policy measures 

National, sector and subnational 

levels 

Mod2 

Strengthening institutions 

and capacities 

Needs assessment 

Working mechanisms 

Mod2 



Learning by doing 

Mod2 



Mainstreaming 

as standard practice 

Engaging stakeholders and coordinating within the development community 

Adapted from: UNDP-UNEP (2009) Figure 3.1, p. 15 

3

Understanding CC–development 

linkages 

4 

Mod1 

Preliminary 

assessments 

Understanding CC– 

development linkages 

Millennium 

Ecosystem 

Assessment 

framework 

Millennium 

Development 

Goals

5 

Strengthening institutions and 

capacities 

Mod2 

National 

capacity selfassessments 

Strengthening 

institutions / capacities 

Needs assessment 

Working mechanisms 

Learning by doing 

Inst’l & 

management 

arrangements for 

mainstreaming 

Actions 

supporting 

learning-bydoing 

Mainstreaming as 

standard practice 

•Formal training 

•Exchange visits 

•On-the-job 

learning 

(interdisciplinary 

teams, twinning, 

technical 

assistance, 

demonstration 

projects) 

•Lesson learning 

& dissemination 

Stakeholder 

analysis

Understanding uncertainties and 

planning in the face of uncertainty 

6 

Understanding 

uncertainties 

Mod4 

Preliminary 

assessments 

Understanding climaterelated 

uncertainties 

Planning in 

the face of 

uncertainty 

Climate 

change 

scenarios 

Adaptive 

management 

Expert 

opinion 

+ local 

knowledge 

Existing 

reports & 

studies


partnerships 

7 

Mod5 

Raising awareness and 

building partnerships 

National consensus and 

commitment to climateresilient, 

low-emission 

development 

Engaging key 

actors 

Communication 

& advocacy 

Vulnerability & 

adaptation 

assessments 

Macro & meso 

economic 

analysis 

Demonstration 

projects

Collecting evidence and 

influencing policy processes 

8 

Vulnerability 

& adaptation 

assessments 

Macro & meso 

economic 

analysis 

Demonstration 

projects 

See Module 5 

Mod6 

Collecting country- 

specific evidence and 

influencing policy 

processes 


(sub)national and sector 

policies, strategies, 

programmes 

Existing 

reports & 

studies 

Climate 

change sector 

scripts 

Climate risk 

screening & 

assessment 

Strategic 

environmental 

assessments


selecting options and measures 

9 

Mod7 


selecting adaptation 

and mitigation options 

and measures 

Cost-benefit 

analysis 

Multi-criteria 

analysis 

Costeffectiveness 

analysis 

Technical 

assessments 

Social & 

environmental 

assessments



10 

Cost-benefit 

analysis 

See 

Mod6 

Mod8 

Budgeting and 

financing 



See 

Mod6 

Multi-criteria 

analysis 

Costeffectiveness 

analysis 

Climate risk 

screening 

See 

Mod6 

Public 

expenditure 

review 

See 

Mod7



11 

Mod9 



Performance assessment 

frameworks 

National 

development 

monitoring 

systems 

Climaterelated 

milestones, 

indicators & 

targets 

ASPECTS 

SUBJECT TO 

MONITORING: 

•Climate, progress in 

climate science, 

climate impacts 

•Climate policy and 

institutional change 

•Climate policy 

implementation and 

outcomes

Conclusions 

12

Planned actions/Way forward 

13

Seminar evaluation 

14

15 

References 

• UNDP-UNEP (2009) Mainstreaming Poverty-Environment Linkages into Development Planning: A 

Handbook for Practitioners. UNDP-UNEP Poverty-Environment Initiative. Available from: 

http://www.unpei.org/PDF/PEI-full-handbook.pdf

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