national climate change awareness-raising workshop - UNDPCC.org

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• Designating an office or group to provide leadership for adaptation and mitigation actions. Currently, consideration of climate change is very piecemeal. Consolidation of information will be a key goal; • Learning more about international benchmarking and where Namibia stands in comparison to other countries; • Devolving management to the local level. Another important action will be the convening of a stakeholder meeting to follow up on the specific topics raised during the workshop and the establishment of teams, selected on the basis of their specific expertise, to conduct the assessment of investment and financial flows. Day 3: Special session for national experts undertaking investment and financial flows assessment to address climate change. Introduction to the UNDP Approach for Assessing Investment and Financial Flows to address Climate Change Presentation by Bill Dougherty, Stockholm Environment Institute (USA) This presentation sought to provide a starting point for the analysis needed to assess investment and financial (I&F) flows to address climate change, including: an overview of key concepts; review the methodology; application of the methodology to energy sector; and, application of the methodology to the LULUCF sector. In discussing key concepts, it was emphasized that: • Investment flows include investments in new facilities or equipment, e.g. renewable energy sources, expanded water supply systems, capital cost of a gas-fired generating unit. This represents the initial (capital) cost of a new physical asset with a life of more than one year. The focus is on investment decisions and new physical assets, but not operating costs. • Financial flows include on-going expenditures e.g. forest management or illness treatment. This represents the ongoing cost related to mitigation or adaptation that does not involve physical assets. Financial flows sounds similar to investment flows, but it is different. It is the flow of expenditures incurred by national agencies to maintain the new investments for achieving mitigation and adaptation goals. The approach is most useful for assessments of sectors that do not involve investment in new facilities or equipment. It is important to note that, for any measure within a sector, the investment or financial flows are estimated— but not both. It was also noted that this type of assessment of I&F flows would be a new kind of analysis. While the UNFCCC secretariat in 2007 undertook an assessment of global financial flows, this assessment will be an opportunity to undertake an analysis on the national level. “User Guidelines” for undertaking an assessment of I&F flows are also being prepared. The goals of the User Guidelines are to: • Better understand future I&F flows that simultaneously address climate change and fit within the development priorities of a country for a specific sector; 14
• Provide guidance on how to conduct the actual assessment of I&F flows, while also being a flexible process that national teams can use to better understand the investment and financial implications of national climate change mitigation and adaptation strategies. A presentation was also provided on the key elements of the methodology for assessing I&F flows (see full presentation attached). Participants then discussed the kind of data needed and where to find it, how to access and evaluate the data, how to set boundaries for the sector (i.e. only electricity or the entire energy sector), scenario development for the mitigation and adaptation scenarios, and ways to model the information. It was noted that technical backstopping would be provided for supporting the production of the analysis. An additional weeklong training may also be necessary. Key pre-requisites for the assessment will be: identifying the project team and assigning roles, clearly understanding the methodology, and defining the scope of each sector to be assessed. Mitigation scenario–Energy Participants discussed the five steps for the assessment—scoping out the effort, establishing the reference scenario, establishing the mitigation scenario, estimating incremental investment flows, and synthesizing results. In a sample mitigation scenario, a reasonable attempt to add climate measures might be to increase the percentage of energy received from solar or diesel (which is cleaner than coal). This would fulfil national development aspects and address climate change. The resulting synthesis should include a summary that provides the highlights of the broader picture followed by a detailed technical report that spells out the assumptions and data used for arriving at numbers. In the discussion, participants noted that possible data sources could include: • National household income and expenditure surveys; • Energy sector reviews; • National resource accounts; • Studies under the Namibia Renewable Energy Programme. Possible institutions that may have useful data include: • Governmental bodies, such as the Ministry of Environment and Tourism, which has been involved with the national communication, the Ministry of Mines and Energy, the National Planning Commission and the Ministry of Finance and the Investment Centre and possibly the Ministry of Industry and Trade; • Polytechnic of Namibia (which already has a good CDM scenario); • Non-governmental organizations, like the Desert Research Foundation; • The Electricity Control Board; • Nampower (national power company). A national team will be created and will get funding from UNDP to undertake the assessment. The UNDP office in New York will come up with drafts based on inputs received at this workshop, as well as the recent training at the “global” workshop. An ideal team could include individuals involved in planning, financial and investment matters, and policymakers familiar with the current climate dialogue. Consultations with all organizations will be needed to create a work programme for the assessment. It is important to involve different institutions according to their capacity. Adaptation–Land use Adaptation is a more challenging issue and work on the adaptation scenario has only begun recently. The adaptation scenario will require the same five steps and basic framework as used for mitigation, but applied to a different set of circumstances. For example, Step 1 (scoping out the effort) will require establishing a time 15
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