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Climate Change Response and International Cooperation: Experiences and Lessons from Asia and the Pacific

Writers’ Workshop

December 3 – 4, 2013 Bangkok, Thailand

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INTRODUCTION

Organized jointly by the Korea Development Institute (KDI) and The Asia Foundation (TAF) with funding support from KDI, TAF, and the Australian Agency for International Development (AusAID), the “Asian Approaches to Development Cooperation” (AADC) dialogue series brings together development experts and government officials from the Asia region and beyond to share perspectives and to facilitate mutual learning between and among “emerging” and “traditional” development actors. After a planning meeting in Seoul in December 2010, KDI and TAF convened three workshops over the course of 2011 in Kuala Lumpur (March), Colombo (June), and Seoul (September). The 2011 dialogues culminated with a side event at the Fourth High Level Forum on Aid Effectiveness (HLF-4) in November in Busan, Korea, the world’s largest and most important gathering for discussing issues of international development and foreign aid. The conference edition of “Emerging Asian Approaches to Development Cooperation,” authored by participants in the AADC series, was released at the HLF-4. In 2012, the AADC dialogues focused on the theme of development cooperation and pro-poor, inclusive growth. Over 40 participants convened in both New Delhi (March) and Beijing (June) for the fifth and sixth meetings in the dialogue series. A writers’ workshop and a public conference, both held in Seoul, followed in November. The writers’ workshop hosted by KDI enabled focused discussion on the forthcoming publication, Inclusive Growth and Development Cooperation: Experiences and Lessons from Asia. The 2013 AADC dialogues focus on providing an opportunity for knowledge exchange on the theme of climate change. An April meeting in Seoul highlighted climate change mitigation, low carbon development, and green growth strategies. In August, the complementary issues of climate change adaptation (CCA), disaster risk reduction (DRR), and disaster management (DM) were discussed in Hoi An, Vietnam.

OBJECTIVES OF DIALOGUE SERIES

To clarify and raise awareness of how Asian development actors operate: their objectives,

principles, motivation, and funding levels. To contribute Asian views to the international dialogue on development cooperation

effectiveness and architecture, particularly in connection with follow-up to the HLF-4 and the shaping of the post-2015 global development agenda.

To promote mutual interest, learning, understanding, and opportunities for collaboration

between and among development partners. For 2013: To make specific policy contributions and recommendations from Asian development

actors on the low carbon development agenda, and on ways to address CCA in the region through improved DM and DRR.

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OVERVIEW OF WRITERS’ WORKSHOP

Hosted by The Asia Foundation, Thailand, the Bangkok writers’ workshop provided a forum for focused discussion on the forthcoming publication, Climate Change Response and International Cooperation: Experiences & Lessons from Asia and the Pacific, which draws from the past year’s dialogues in Seoul and Hoi An. The publication will include chapters on country strategies and international cooperation on climate change mitigation and adaptation. At the workshop, participants shared comments and critical analysis of each draft paper. Kim McQuay (Country Representative, Thailand, The Asia Foundation) welcomed the participants and opened the workshop with Anthea Mulakala (Country Representative, Malaysia / Senior Advisor, International Development Cooperation, The Asia Foundation). Reflecting on the past year of discussions on climate change mitigation and green growth strategies in Seoul and disaster and resilience issues in Hoi An, they extended their appreciation to the authors for their contributions to the publication and expressed their commitment to pursuing continued partnership in addressing climate change. Peter Beck (Country Representative, Korea, The Asia Foundation) provided closing remarks by highlighting the need for greater regional cooperation beyond the scope of the meetings.

Participants’ presentations can be accessed via KDI’s website.

KEY TERMS

AADC Asian Approaches to Development Cooperation AusAID Australian Agency for International Development BCM Business continuity management CCA Climate change adaptation CSR Corporate social responsibility DM Disaster management DRR Disaster risk reduction ESD Education for sustainable development FORDA Forestry Research and Development Agency FPCCC Forest Policy and Climate Change Centre

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GDP Gross domestic product GHG Greenhouse gas HLF-4 Fourth High Level Forum on Aid Effectiveness ISIS Institute of Strategic and International Studies ISPONRE Institute of Strategy and Policy on Natural Resources and Environment IWRM Integrated water resources management KDI Korea Development Institute LUCF Land use change and forestry NAP National Action Plan MONRE Ministry of Natural Resources and Environment PAT Perform, Achieve, and Trade PCRAFI Pacific Catastrophe Risk Assessment and Financing Initiative REC Renewable Energy Certificates REDD+ Reducing Emissions from Deforestation and Forest Degradation in

Developing Countries SOPAC SPC Applied Geoscience and Technology Division SPC Secretariat of the Pacific Community TAF The Asia Foundation TERI The Energy and Resources Institute TIES Technology, Innovation, Environment and Sustainability

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COUNTRY STRATEGIES FOR CLIMATE CHANGE MITIGATION & ADAPTATION

In this session, the national climate change strategies of China, India, and Indonesia were discussed. Some similar topics were mentioned, including policy and market incentives, as well as the policy implementations of provincial governments, balancing climate change policies with economic development, international cooperation and benchmarking, and targets on emissions reductions. Moderated by Lisa Hook (Senior Program Officer, Environment Programs, The Asia Foundation), the session featured:

Dr. Kejun Jiang Senior Researcher, Energy Research Institute, National Development and Reform Commission, China

Dr. Prodipto Ghosh Distinguished Fellow, The Energy and Resources Institute (TERI) Former Secretary, Ministry of Environment and Forests, India

Mr. Rudi Subarudi Senior Researcher, Forest Policy and Climate Change Centre (FPCCC), Forestry Research and Development Agency (FORDA), Ministry of Forestry, Indonesia

Dr. Kejun Jiang discussed energy transition in China within the context of the 2 degree global warming target. The Chinese Government’s 12th Five Year Plan (2010~2015) and other recent climate change policies include targets for energy intensity reduction, implementation at the local government level, and energy caps. Mindful of the impossibility of achieving the 2 degree target without China’s cooperation, Dr. Jiang also discussed the reinforced policies to limit coal use and internal debates about the Chinese CO2 emissions peak. The effort will be bolstered by renewable energy, which is forecasted to play a greater role in the future with technological improvements and government support. Some of the challenges to climate change policy in China are the push for further economic development and the need to combine different national policies.

Dr. Prodipto Ghosh outlined India’s National Action Plan on Climate Change and related policies. Despite having one of the lowest per capita carbon footprints of the major countries, India has implemented a number of initiatives, including the Perform, Achieve, and Trade (PAT), which concern specific energy consumption reduction targets, the Renewable Energy Certificates (REC), which seeks to create a nation-wide renewable energy market, and the very successful National Solar

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Mission, a flagship scheme to deploy 20,000MW of solar power by 2022. Dr. Ghosh also discussed State Action Plans on Climate Change that encourage local governments to implement state-specific plans under the principles and guidelines provided by the central government. Going forward, the new Low Carbon Growth Strategy, which is still in the making, aims to enable India to meet its Copenhagen target of 20-25% reduction in energy intensity. Mr. Rudi Subarudi provided an overview of Indonesia’s policy issues related to climate change mitigation and strategies to achieve low emissions development. A National Action Plan (NAP) for GHG (greenhouse gas) emissions reduction has been decreed by the president in 2011, and as land use change and forestry (LUCF) is the main source of emissions, emissions reduction falls mostly under funding of the Ministry of Forestry. Indonesia is also developing a national strategy for the UN Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD+), which contributes to 60% of emissions reduction through national and subnational approaches. One of the greatest challenges to climate change policy is the perceived tradeoff between low carbon emissions and economic development, and the Master Plan for Indonesian economic development is being evaluated by multi-stakeholders due to the neglect of some environmental concerns. Session discussion topics included: China’s commitment to renewable energy, the state of debate regarding hydropower, and policies addressing the lifestyle changes of the burgeoning middle class.

Dr. Jiang acknowledged that while renewable energy constitutes a smaller proportion of the total energy generation in China, the government is keen on increasing its portion in the future. The new five year plan on energy development aims to increase the target for renewable energy to 15% by 2020. So far, solar photovoltaics and wind comprise a modest share, so hydropower will probably constitute a large share of renewable energy. He also elaborated that the government gives subsidies to solar power plants to enhance this sector.

Ecological and livelihood concerns, on the one hand, and the need for cleaner energy, on the other, are at the center of debate on hydropower. Hydropower is a major component of India’s energy security. Thus, systematic environmental regulation is entrenched in the Indian policy setup, and every major hydropower project is required to undergo a detailed environmental assessment regarding biodiversity, the rehabilitation of impacted people, etc. China is also highly involved in the debate on hydropower. Coal fire power plants, which contribute to GHG emissions and require a lot of water, constitute the largest share of power generation in China. Thus, decreasing the proportion of coal fire is vital to China’s environmental policy.

Policies to counter the projected lifestyle changes of the increasing middle class were also discussed. Indonesia has instituted a number of policy measures, such as putting limitations on the use of fuel for large cars. Dr. Ghosh opined that the emerging Asian middle class may not be very problematic, asserting that they are not repeating the consumption patterns of their Western counterparts. India and other major Asian countries score high marks on the Greendex Report on the sustainable consumption.

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COUNTRY STRATEGIES FOR CLIMATE CHANGE MITIGATION & ADAPTATION

In this session, the energy situation, adaptation and mitigation initiatives, and policy challenges in mid-sized countries, Malaysia and Vietnam, were discussed. A lively discussion session focused on measures for behavioral changes, as opposed to overarching national policies, for more sustainable practices. Moderated by Peter Beck (Country Representative, Korea, The Asia Foundation), the session featured:

Ms. Wan Portia Hamzah

Senior Fellow, Technology, Innovation, Environment and Sustainability (TIES), Institute of Strategic and International Studies (ISIS), Malaysia

Dr. Nguyen Trung Thang Deputy Director General, Institute of Strategy and Policy on

Natural Resources and Environment (ISPONRE), Ministry of Natural Resources and Environment (MONRE), Vietnam

Ms. Wan Portia Hamzah reviewed the energy demand and supply scenario, energy reform plans, and policy challenges in Malaysia. The forecasted increase in energy demand and the reliance on natural gas, which is heavily subsidized by the government, creates challenges for balancing environmental concerns with economic development. As counter-measures, Malaysia has voluntarily committed to achieve 40% reduction of emissions intensity of GDP by 2020 (of 2005 levels), and has initiated “MYCarbon,” a GHG accounting system for the private sector. Going forward, the National Energy Efficiency Master Plan has been devised for the power generation and transport sectors, the greatest emitters of GHG, with plans to increase renewable energy sources. Challenges to environmental policies include the fragmented energy sector, weak monitoring and evaluation systems, lack of benchmarking with other countries, and policy coordination among different branches of government. In addition, Malaysia has mostly concentrated on climate change mitigation, but must extend its efforts to adaptation in the future.

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Dr. Nguyen Trung Thang discussed climate change, economic growth and GHG emissions, and climate change policies and challenges in Vietnam. Vietnam is one of the most vulnerable countries to climate change, showing one of the greatest impacts as percentage of GDP in the world. Economic growth is mainly due to the country’s industrialization process, which is closely related to GHG emissions. Although emissions are very small at 0.44% of world emissions in 2000, it is increasing rapidly in comparison to other neighboring countries. To counter this, the Vietnamese Government has decided to undertake adaptation and mitigation measures simultaneously, but with short term priority placed on adaptation. Recent climate change policies include a national strategy and action plan, which address GHG emissions reduction and the reinforcement of renewable energy and energy efficiency. Some challenges include the lack of detailed legal regulations that match policy guidelines, lack of financial resources to upgrade infrastructure, and weak monitoring capacity.

Session discussion topics included: the priority placed on adaptation over mitigation in Vietnam, and measures regarding people’s behavioral changes for long term, sustainable practices.

Dr, Nguyen explained that Vietnam endures a lot of natural disasters and adverse effects of climate change, and must utilize limited resources on adaptation instead of mitigation. Vietnam suffers 12 -15 typhoons annually, with damages adding up to 1.5% of GDP per year, making the need for adaptation measures more urgent. On the other hand, mitigation is also important, with emphasis placed on energy efficiency. Regarding behavioral changes, Dr. Nguyen shared that “greening lifestyles” is part of the core content of the national strategy on green growth, and a number of initiatives currently being implemented.

Ms. Hamzah asserted that behavioral changes regarding energy consumption cannot be induced with Malaysia’s very low electricity tariffs, one of the lowest in the world. Though untenable in the long run, increasing tariffs has political implications and may be difficult to implement. On the other hand, Malaysia has been trying to increase awareness on climate change issues. The new education blueprint is effective at instilling environmental and energy awareness in children. In addition, the media is more attuned to issues regarding transformations of the energy sector, pricing issues, and climate change.

Mr. Suzuki related that there is much to learn from the private sector, where education for sustainable development (ESD) is a key component of corporate social responsibility (CSR). For example, NEC has sent employee teams to needy communities in Indonesia and helped them establish self-sufficient energy systems, even providing the community children with environmental education.

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COUNTRY STRATEGIES AND INTERNATIONAL COOPERATION

In this session, the climate change risks and adaptation measures in the Pacific Islands, policy measures and challenges in Thailand, and business continuity management (BCM) of the private sector were discussed.

Moderated by Dr. Siriporn Wajjwalku (Associate Professor, Faculty of Political Science, Thammasat University), the session featured:

Mr. Waisale Naqiolevu National Action Plans Officer, Disaster Reduction Programme, Applied Geoscience and Technology Division (SOPAC), Secretariat of the Pacific Community (SPC), Pacific Islands

Ms. Muanpong Juntopas Integrated Water Resources Management (IWRM) Advisor, The Asia Foundation, Thailand

Mr. Hitoshi Suzuki President, Institute for International Socio-Economic Studies (NEC) Former General Manager, Corporate Social Responsibility Division, NEC

Mr. Waisale Naqiolevu provided an overview of the climate change risks, policy challenges, and new approaches being taken in the Pacific Region. The Pacific Islands contribute the least to GHG emissions, but is at the frontline of the adverse effects of global climate change and sea level rise. In 2011, the World Bank, Secretariat of the Pacific Community, and Asian Development Bank estimated the total value of at risk infrastructure to be over $100 billion USD, and began the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI) to provide Pacific Island governments with disaster risk modeling and assessment tools. Policy challenges include the need for better governance and institutional arrangements, linking disaster management offices to central planning agencies, coordinating partnerships, overcoming dependency attitude, and making data available. Since 2009, a more strategic approach was taken by developing joint national action plans and integrating disaster risk management and climate change strategies into single national documents.

Ms. Muanpong Juntopas discussed issues at the intersection of economic development and climate change, focusing on water management in Thailand. Thailand witnessed rapid economic growth and a GHG emissions increase of 190% from 1990 to 2007, compared to the world average

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of 40%. The current national development plan aims to decouple economic growth and emissions, and Thailand has voluntarily implemented various projects leading to energy conservation, the creation of carbon sinks, and other adaptation and mitigation measures. On the other hand, on adaptation side, conflicting policies and weak coordination among ministries and agencies are one of the greatest contributors to environmental problems and vulnerability to climate risk. She also pinpointed the disparity between overarching national plans and the reality in the field as exacerbating the problem, which was most clearly manifested in the 2011 Thailand mega floods. Going forward, knowledge, transparency, appropriately scaled river basin management using ecological landscape as management unit coordinating upstream and downstream concerns, inclusion of climate change adaptation measures, and coordination among actors is needed for greater effectiveness.

Mr. Hitoshi Suzuki related that climate change is a growing concern to businesses and natural disasters are an emerging business risk, particularly in Asia. As such, business continuity management (BCM), which guides organizations to predefined levels of operation following a disruption, has become a vital part of corporate social responsibility (CSR). Currently, half of large Japanese companies have adapted BCM, particularly after the 2011 Tohoku earthquake and tsunami. Specifically, the NEC Group’s core BCM policies include protecting lives of people, building mission-critical systems, and minimizing economic damage caused by business disruptions, with the aim of bringing together businesses, local governments, and community people. A successful example of BCM includes the NEC plants’ return to normal operations within 2 weeks of the 2011 earthquake and tsunami. The mission now is to spread BCM to other parts of the supply and value chains. Session discussion topics included: the need to reform single command in Thailand, migration in the Pacific Islands, and CSR activities in Japan.

Ms. Juntopas discussed single command during the 2011 Thailand floods. She stated that single command is needed in emergency situations, but should not become a permanent body. Currently, the river basin committee in the field is operating under a ministerial decree, which needs to be decentralized under a legal structure. Civil society and the academic community have proposed establishing a law reform committee to reform the water laws to ensure that the river basin committee has more authority to coordinate its own activities within the law.

Mr. Naqiolevu, discussed migration as a real option for the population of the Pacific Islands. Tuvalu is considering purchasing land in Australia, and Kiribati has already been purchasing land in Fiji to relocate the population. Regarding labor markets, people are encouraged to find employment in countries that are larger and less affected by climate change, such as Australia and New Zealand.

Turning to the private sector, Mr. Suzuki stated that Japan does not have any regulations about percentage allotments for CSR activities. However, guidelines of the Japan Business Federation suggest 1% of sales profit to be spent on social contributions. He further related that mitigation is also very important to the business sector, and providing information technology solutions to help reduce emissions is how businesses contribute to this. In addition, as only 6% of total CO2 emissions are derived from productions, engaging the value and supply chains in the mitigation process is a vital step going forward.

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The second day of the workshop consisted of a field visit to Baan Khun Samut Chean, a community that is now partially submerged because of global warming and sea level rise. The heart of the village, Khun Samut Chean Temple, has become internationally known as the “temple in the sea”. Dr. Chirapol Sintunawa, Vice President of the Green Leaf Foundation and member of the Faculty of Environment and Resource Studies of Mahidol University, guided the trip, placing the Khun Samut Chean situation within the broader context of climate change and other environmental challenges facing Thailand.

The visit began with a visit to the information center and museum established by the head of the village. She explained that she has lived in the same community all her life, and has moved eleven times as the sea encroached 1 km inland and badly damaged an additional 4 km in just two generations. The villagers’ main source of livelihood, fishing, is also greatly threatened by erosion and water pollution in the area. The Khun Samut Chean Temple, which used to be some 400m inland in 1964 and on the shoreline in 1992, is now 500m offshore and is accessible only by a concrete walkway. The water has risen further and the floor of temple was raised 1.5 m, forcing visitors to stoop as they enter and exit. A seawall is being built to protect the temple, but is currently on hold because of the lack of funds.

FIELD VISIT

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The village’s population has decreased by 50% over the years, and the government has been very passive in administering countermeasures. In the face of these challenges, the villagers who remain work hard to protect their community and livelihoods. The head of the village has written countless letters to local and national government officials about their plight. Adaptation strategies, though not always effective, include putting homes and paths on stilts, erecting bamboo dykes, and planting mangroves. The community is now promoting ecotourism to generate funds for further adaptation measures.

FUTURE DIRECTIONS

The papers presented at this Writers’ Workshop are expected to be published in 2014 as the third volume in the “Asian Approaches to Development Cooperation” publication series. KDI and The Asia Foundation are currently developing a program for a fourth year of the AADC dialogue series. These 2014 dialogues will examine social mobility in Asia, with meetings in proposed for India and Korea.

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PARTICIPANTS

CHAPTER AUTHORS

Kejun Jiang Senior Researcher Energy Research Institute National Development and Reform Commission China

Prodipto Ghosh Distinguished Fellow, The Energy and Resources Institute (TERI) Former Secretary, Ministry of Environment and Forests India

Rudi Subarudi Senior Researcher Forest Policy and Climate Change Centre (FPCCC) Forestry Research and Development Agency (FORDA) Ministry of Forestry Indonesia

Wan Portia Hamzah Senior Fellow Technology, Innovation, Environment and Sustainability Institute of Strategic and International Studies (ISIS) Malaysia

Nguyen Trung Thang Deputy Director General Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE) Ministry of Natural Resources and Environment (MONRE) Vietnam

Waisale Naqiolevu National Action Plans Officer Disaster Reduction Programme Applied Geoscience and Technology Division (SOPAC) Secretariat of the Pacific Community (SPC) Pacific Islands

Muanpong Juntopas Integrated Water Resources Management Advisor The Asia Foundation Thailand

Hitoshi Suzuki President, Institute for International Socio-Economic Studies (NEC) Former Director, CSR Division, NEC

RESOURCE PERSONS

Chirapol Sintunawa Faculty of Environment and Resource Studies Mahidol University Vice President, Green Leaf Foundation

Siriporn Wajjwalku Associate Professor Faculty of Political Science Thammasat University

KOREA DEVELOPMENT INSTITUTE

Wonhyuk Lim Director and Vice President Department of Competition Policy Korea Development Institute (KDI)

Taejong Kim Professor KDI School of Public Policy and Management

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THE ASIA FOUNDATION

Anthea Mulakala Senior Advisor, International Development Cooperation Country Representative, Malaysia The Asia Foundation

Kim McQuay Country Representative, Thailand The Asia Foundation

Peter Beck Country Representative, Korea The Asia Foundation

Kyung-sook Lee Senior Program Officer The Asia Foundation, Korea

Lisa Hook Senior Program Officer Environment Programs The Asia Foundation

COORDINATORS

Poonsook Pantitanonta Director of Management The Asia Foundation, Thailand

Sunita Anandarajah Program Officer The Asia Foundation, Malaysia

Sun-joo Lee Program Assistant The Asia Foundation, Korea

Taeyang Kim Research Assistant Korea Development Institute