Climate adaptation and the urgent need for financing in Asia

The Takeaway

As the severe impacts of climate change are felt across South and Southeast Asia, adaptation – the adjustment of systems and behaviors to reduce the risks of a changing climate – is becoming increasingly urgent. UN Climate Change Resolution by December 2023 Although climate adaptation became a high priority at the 28th Conference of the Parties to the Framework Convention (UNFCCC) (COP28), there are serious gaps in planning and financing.

In short

  • At COP28, the signatories Paris Agreement established a framework for A universal goal of adaptation (GGA), eight years after the target was first announced. The GGA sets goals for building resilience and reducing vulnerability to climate change. It prioritizes the role of nature, for example, creating mangroves to protect against storm surges. Discussions on the financing component of the GGA are expected to take place at COP29 in November 2024.
  • According to the Global Stocktag (GST) – List of Commitments of the Parties to the 2015 Paris Agreement – Only 51 Countries have submitted National Adaptation Plans (NAPs). Of these, only Six Asia Pacific includes: Cambodia and Timor-Leste in Southeast Asia, Nepal and Sri Lanka in South Asia, and Fiji and Kiribati in Oceania. The GST result The document calls for all parties to implement their respective „country-driven and gender-responsive” NAPs by 2030.
  • Adequate adaptation finance is critical to countries' resilience planning. However, there is an international agreement on financing these efforts Elusive. The UN Adaptation Gap Report In 2021, adaptation funding for developing countries was only C$28.4 billion, C$495 billion less than needed for that year. UN Adaptation Fund, It is one of several initiatives aimed at bridging this gap and supporting developing countries in implementing local adaptation programmes. Only half of its target of C$400 million.
  • From an investment perspective, one challenge in bridging the gap in adaptation finance lies in difficulty measure Implications of adaptation. Another challenge is allocation: a 2023 OECD Report Of the climate finance provided to developing countries between 2013 and 2021, only 27 percent was allocated to adaptation projects.

Impacts

Without an adaptation strategy, vulnerable countries will continue to face the brunt of a warming climate. States in Asia, a region prone to natural disasters and sea level rise, have been particularly affected C$49 billion Economic damages worth only in 2022. For example, one of the most affected countries in the region, Bangladesh, suffered losses due to cyclones. C$1.35 billion Every year. Strengthening the adaptive capacity of countries is critical protect vs Non-economic loss and damages including the preservation of local indigenous knowledge, ecosystems and cultural heritage.

The Adaptation Fund competes with other climate initiatives for support. One of the successes of COP28 was the establishment of the Loss and Damage Fund (LDF) to assist vulnerable countries in their efforts to address the impacts of climate change. Canada advocated for the formation of the LDF and He promised C$16 million for its start-up costs. However, 'loss and damage' refers to efforts to address the impacts of climate change After Those impacts are experiential and do not necessarily include resilience planning at the heart of adaptation. There are already concerns over adaptation funding suffered As international financial obligations shifted towards the LDF.

What's next

  • 1. The urgent need for adaptation is an opportunity for Canada

In December 2023, Canadian development finance firm FinDev was launched in partnership with Japanese financial firm Mitsubishi UFJ Financial Group. The GAIA Project, A soon-to-be-implemented public-private hybrid climate finance program to address the adaptation needs of developing countries. The C$2 billion projectComprising private sector investments, it will dedicate 70 percent of its funds to adaptation projects and provide long-term loans and equity investments to 19 of the most climate-vulnerable countries, including India, Indonesia and the Philippines.

  • 2. The Southeast Asia Program prioritizes biodiversity conservation

Given nature's ability to regulate the world's climate, conservation and protection of nature will play a critical role in the success of climate adaptation efforts. Singapore-based impact investor Silverstrand Capital has been launched to expand investments and startups in this sector, but also an important one. Biodiversity Accelerator+ Project In 2023. Aimed at businesses with a „biodiversity-positive” impact, the initiative focuses on protecting and restoring nature through capital, training and monitoring. Although the program is global, priority will be given to companies operating in Southeast Asia.

• Prepared by APF Canada's Southeast Asia Group: Program Manager Hema Nataraja; Sasha Lee, analyst; and, Alberto Iskandar, analyst. Author: Ted Fraser. Graphic Design: Chloe Fenimore.

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