Session on financing mechanisms to make funding available for adaptation measures:
KfW Entwicklungsbank (KfW)
World Bank (WB)
European Investment Bank (EIB)
Munich Re Foundation (MRF)
As GHG emissions increase, climate change impacts are becoming manifest. Regions at risk need to adapt as quickly and effectively as possible. Funding for climate change adaptation are yet insufficient and existing financing mechanisms may be inadequate. Based on current information, additional financing requirements for climate change adaptation may reach tens of billions of Euros annually over the coming decades. On the other hand, “bankable” adaptation projects can only be based on the proven reliability, resiliency and robustness of adaptation measures. Best practices, no- and low-regret investments should be implemented first, while identifying and assessing justified adaptation measures.
But are countries, donors and the private sector adequately addressing the challenge of integrating long term investment planning for adaptation in the water sector? Which funding sources and mechanisms exist, will soon be in place or are being planned? Are they appropriate in terms of quantity, quality, flexibility and practicability? Are data and methodologies available and sufficiently reliable to decide on priorities and timing of investments?
The seminar focused on some of these pivotal questions, covering in two blocks the subjects of adaptation funding mechanisms and public – private climate financing options with an emphasis on climate insurances. In each block, two presentations addressed theory and concepts on one hand and practical experiences on the other. A panel discussion open to questions and answers from the audience was followed by a wrap up and closing remarks.
Chair: Jörg Dux, KfW Entwicklungsbank, Germany
|09:00 ||Opening remarks |
Welcome and introduction
Jörg Dux, KfW Entwicklungsbank, Germany
|Block 1 ||Financing Adaptation: Funding Requirements and Mechanisms |
|09:05 ||Adaptation financing |
Jochen Harnisch, KfW Entwicklungsbank, Germany
|09:15 ||Financing adaptation measures in the water sector – |
Estimates, instruments and opportunities
Abel Mejia, World Bank, USA
|09:25 ||Questions and comments related to the presentations |
|09:30 ||Discussion and Panel Debate |
|Block 2 ||Climate insurances: A mean of funding adaptation or just raising preparedness? |
|09:45 ||Risk financing mechanisms – An overview |
Barry Barnett, Mississippi State University, USA
|09:55 ||Minimizing the risks for the poor – |
Microinsurance as a tool to adapt to climate change
Dirk Reinhard, Munich Re Foundation, Germany
|10:05 ||Questions and comments related to the presentation |
|10:10 ||Final discussion and panel debate |
|10:25 ||Closing remarks |
Monica Scatasta, European Investment Bank, Luxembourg
Monica Scatasta is a senior economist in the water and environmental protection division at the European Investment Bank (EIB) where she manages a portfolio of projects in over 15 countries. Prior to joining EIB she worked for the World Bank and the International Food Policy Research Institute (IFPRI), in Washington, D.C., and for the Paraiba do Sul River Basin in Brasil. She holds masters degrees in finance, economics and environmental engineering from the University of Bologna, the Johns Hopkins School of Advanced International Studies and the Johns Hopkins Dept. of Environmental Engineering. From 2007 to 2009 she was seconded to the Organization for Economic Cooperation and Development (OECD) where she coordinated the OECD water programme on financing and pricing water and sanitation whose flagship report was launched in Istanbul at the World Water Forum 2009.
Jochen Harnisch is climate change policy coordinator at KfW Entwicklungsbank in Germany. He has a degree in atmospheric physics from the University of Göttingen, Germany. Before joining KfW he worked as a manager for energy and climate strategy at Ecofys Consultants. He has spent much of his professional career on the design and assessment of climate policies and the implementation of climate strategies in the corporate sector. He has served as lead author and coordinator lead author of several reports of the Intergovernmental Panel on Climate Change (IPCC). He teaches “Energy & Climate Policy” at the University of Applied Sciences in Deggendorf/Germany.
Abel Mejia Betancourt is the water manager at the energy, transport and water department of the World Bank (WB) in Washington, D.C. Since July 2007, he is leading the Water Anchor Unit, which is responsible for policy, expert and strategic advice to the regional operational units, knowledge management and professional development across the water group, and coordination of the water agenda with international and technical organizations. Mr. Mejia works for the World Bank since 1991, and he has been the Regional Manager for Water Supply and Sanitation from 1999 to 2003, and for Environment and Sustainable Development from 2003 to 2007, both in the Latin America Region. Prior to joining the Bank, he worked in his home country, Venezuela, in the design and construction of hydropower projects, river navigation, irrigation and water supply and sanitation. Mr. Mejia holds Masters Degrees in Civil Engineering Management and in Industrial Engineering from Stanford University, and a Civil Engineer degree from the Catholic University of Venezuela.
Barry J. Barnett is professor of agricultural economics at Mississippi State University, USA. His research analyzes the impacts of risk on rural areas and the roles of government and private-sector entities in providing rural households and businesses with access to appropriate risk transfer mechanisms. In addition to numerous articles in scholarly journals, he has co-authored publications for the World Bank, OECD, USAID, and the Risk Management Agency of the U.S. Department of Agriculture.
Dirk Reinhard is the vice chair of the Munich Re Foundation. As a graduate in industrial engineering he specialized in environmental protection and sustainable investment policy. In the 90s he was active as a sustainability analyst for oekom research AG in Munich. Since 2001 he has worked for Munich Reinsurance in the field of Geo Risks Research / Environmental Management with a focus on sustainable investment and emissions trading. When moving to the Munich Re Foundation, he specialized in water issues and pro-poor oriented micro insurance. As a Vice Chair of the foundation he is also responsible for the finance, controlling and law relating to foundation.
Joerg Dux is division chief water resources North Africa and Yemen at KfW Entwicklungsbank in Frankfurt, Germany with responsibility of financing and implementing infrastructure programmes and projects in the fields of integrated water resources management, urban water supply and sanitation, irrigation, desalination and hydropower generation. In the extremely water scarce countries of Egypt, Tunisia and Yemen KfW Entwicklungsbank is leading initiatives in water loss reduction, waste waster reuse and improving irrigation efficiency in order to support adaptation to climate change through a more efficient use of the precious water resources. Dr. Dux has a degree in economics and geography from the University of Hamburg, Germany. He joined KfW Entwicklungsbank in 2002 as a water expert. From 2002 to 2004 he was Director of the KfW office in Nairobi, Kenya, coordinating German Development Cooperation in the water sector in Kenya and Uganda.
26 August 2009