IFAD’s Climate Change Strategy EB Informal Seminar

14 December 2009

Elwyn Grainger-JonesDirector, Global Environment and Climate Change

International Fund for Agricultural Development

2

IFAD’s mandate and experience

Changing Context

Presentation Overview

Strategy for a Climate Smart IFAD:

Goal

Purpose

Outputs

Inputs

3

Adaptation, climate resilience

Mitigation, carbon emissions

Copenhagen, UNFCCC

Carbon market

REDD

Glossary/Climate Jargon

4

Board Feedback

Have we reflected the changing external context and its implications for the rural poor correctly? (slides 5-6)

Does the proposed goal and purpose statement reflect this changing context and our mandate? (slides 7-11)

Are the four ‘climate smart’ building blocks and its underlying principles the right ones for the strategy? (slides 12-17)

5

Biophysical drivers

Temperature Extreme events

frequency, intensity

Rainfall patterns Seasonal shifts Sea level rise

Global Rules Response Global carbon target Finance Adaptation Framework Land use mitigation rules

1. The Changing Context: Impacts

ECOSYSTEMS/ ENVIRONMENTAL

PROCESSES SUSTAINING

AGRICULTURAL PRODUCTION

AGRICULTURAL PRODUCTIVITY(food and cash

crops, livestock and fisheries)

RURAL INFRASTRUCTURE(rural roads, storage

and processing, irrigation systems)

RURAL LIVELIHOODS (migration, labour availability, food

insecurity, conflict, forced sale of livestock and other

assets)

e.g. coastal ecosystems in Sri Lanka; rangeland ecosystems of Eastern Morocco

e.g. rice production inSierra Leone, rain-fed agriculture in Yemen, livestock sector in Mongolia (drought and Dzud)

e.g. food insecurity in Niger, rural livelihoods in the high Andes (Altiplano) in Peru.

e.g. damage to irrigation systems and other agricultural infrastructure in Viet Nam

6

Demand-ledcountry-driven

Demand-ledcountry-driven

Sustainableresource

management

Sustainableresource

management

Integratedapproach

Integratedapproach

TargetingRural Poor

TargetingRural Poor

Institutions,governance

Institutions,governance

LandTenure

LandTenure

ProductivityGrowth

ProductivityGrowth

CreditMarkets

CreditMarkets

Continued emphasis… Anything different?

Can’t thinkin historical averages

Can’t thinkin historical averages

Long termtrends

Long termtrends

Potentialemission reduction

paymentopportunities

Potentialemission reduction

paymentopportunities

1. The Changing Context: Implications

GenderGender

New sourcesof risk

New sourcesof risk

Eg: income Diversification Mauritius

Eg: Sierra Leone

Knowledge &Innovation

Knowledge &Innovation

Scarce resources: Managing conflict

Scarce resources: Managing conflict

7

2. Delivering Our Mandate

To maximize IFAD’s impact on rural poverty reduction in the changing context of climate change

Goal:

Purpose 1To be a leading

international institution in supporting innovative approaches to reduce

the vulnerability of poor rural communities to

climate change

Purpose 2To help partner

communities take advantage of

available mitigation incentives

Purpose 3To inform a more

joined up dialogue on

climate change, rural development,

agriculture and food security

8

IFAD PORTFOLIO: RURAL POVERTY REDUCTIONIFAD PORTFOLIO: RURAL POVERTY REDUCTION

CLIMATE RISKCARBON IMPACT

Adaptation

SpectrumComparative advantageNew tools/approaches

Mitigation

Ag potentialCOP15 ambition/realismPES experience

2. Delivering Our Mandate: Opportunities and Challenges

Synergies

9

2. Delivering Our Mandate: Adaptation

Vulnerability focus Impacts focus

(Heather McGray, WRI, 2007)

Addressing the drivers of vulnerability

Activities seek to reduce poverty and other non-climatic stressors that make people vulnerable

Building response capacity

Activities seek to build robust systems for problem solving

Managing climate risks

Activities seek to incorporate climate information into decision-making

Confronting climate change

Activities seek to address impacts associated exclusively with climate change

10

Rangelands and pasture management

Coastal management and fisheries

Agriculture and land use mitigation in agriculture: What Physical Potential?

Crop management

Restoration of degraded lands

Bio-energy

Livestock management

11

Purpose 3 - To inform a more joined up dialogue on climate change, rural development, agriculture and food security

Climate community Agriculture community Deeper challenge: country level coherence Using our voice

12

3. The Strategy Output: A Climate Smart IFAD

Operating Model

Operating Model

Staffing and PartnershipsStaffing and Partnerships

FinanceFinanceAdvocacy and

KnowledgeAdvocacy and

Knowledge

13

Climate Smart Principles

Deep integration of climate into IFAD programmes

Decentralisation of accountability for climate operations to Regional Divisions

Integrating Climate into IFAD Operating Model

Climate integration into COSOP, including climate assessment/proofing

Design: climate proofing, risk-mapping/vulnerability and quality control (QE/QA); implement environmental screening; develop learning notes; integrate climate in financial & economic assessment tools

Use/build on Results Management Framework; “adaptive adaptation” – build in new knowledge into project reviews

Use of RIMS & integrate climate into annual portfolio reviews

Better/more knowledge management; strengthened advocacy & communications; role of evaluation

e.g. Carbon markets, explore potential for more national/regional programmes

Sustainable policies in-house

15

Staffing and Partnerships

Internal HQ + in-country capacity and skills Make more use of

existing/latent skills Upskilling/training Expand our dedicated

climate capacity Deployment:

a matrix-style climate and global environment hub, with staff shared with regions

Strategy will review and deepen partnerships where this adds value: Explore deeper knowledge

partnerships

Country-level, including Agriculture Ministries engagement

Global Environment Facility

Rome based agencies

Other IFIs, GM, CGIAR, civil society and the private sector

16

Finance

ADDITIONAL GRANT-BASED RESOURCES

IFAD SUPPLEMENTARY

WINDOW

ACCESS TO EXTERNAL

FUNDS

MORE FOCUSED USE OF EXISTING FINANCIAL

RESOURCES

17

Advocacy and Knowledge

Continued advocacy in support of action on climate change for the rural poor

New internal network to manage climate knowledge and advocacy

Knowledge products - guidance notes, case studies, lesson learning, participatory K products – culturally appropriate

Staff and partners’ awareness on climate

18

IFAD’s mandate and experience

Presentation Summary and Next Steps

Changing Context

Strategy for a Climate Smart IFAD:

Process &Product:

Timing and consultations

Flexible and responsive

Short and focused

5-year change perspective

Goal

Purpose

Outputs

Inputs

19

Board Feedback

Have we reflected the changing external context and its implications for the rural poor correctly? (slides 5-6)

Does the proposed goal and purpose statement reflect this changing context and our mandate? (slides 7-11)

Are the four ‘climate smart’ building blocks and its underlying principles the right ones for the strategy? (slides 12-17)