Sri Lanka and the World Bank today signed two new agreements worth $150 million to improve climate resilience and agriculture productivity for small farmers and support priority infrastructure through public-private partnerships.
Hartwig Schafer, World Bank Vice President for the South Asia Region and Dr. R.H.S. Samaratunga, Secretary, Ministry of Finance signed the agreements on behalf of the World Bank and the Government of Sri Lanka respectively. The signing took place during the World Bank Group and IMF Spring Meetings 2019 in Washington, D.C., in the presence of Hon. State Minister of Finance, Eran Wickremaratne.
The new projects include:
A $125 million credit for the Climate Smart Irrigated Agriculture Project, which will improve the resilience and productivity of agriculture for more than 470,000 small farmers in 6 provinces in the dry zone of the country.
A $25 million loan for the Framework Development and Infrastructure Financing to Support Public-Private Partnerships Project, which will help the Government of Sri Lanka develop a platform to attract and sustain investments required to fulfill its future development priorities.
“Sri Lanka is on a path to becoming an upper middle-income country,” said Hartwig Schafer. “To ensure that this growth is sustainable, affordable, and resilient, the two projects are designed to leverage private sector financing for infrastructure and address climate vulnerability in the agriculture sector.”
The Climate Smart Irrigated Agriculture Project will be implemented by the Ministry of Agriculture, Rural Economic Affairs, Livestock Development, Irrigation and Fisheries & Aquatic Resources along with the six Provincial Councils participating in the project. The total project cost is $140 million, including a $125 million credit from the International Development Association, with a $10 million contribution from the Government of Sri Lanka and a $5 million contribution from the project beneficiaries.
“The project will support farmers’ access to training and research. Currently, only 10 percent of women benefit, and this project will help bridge this gap and improve productivity of both men and women working in agriculture” said Idah Pswarayi-Riddihough, World Bank Country Director for Maldives, Nepal and Sri Lanka. “Innovation, including the introduction of improved crop varieties, cropping patterns, water resources management, amongst others, can help farmers adapt to changing climate and improve their incomes and livelihoods.”
The key principle of the Framework Development and Infrastructure Financing to Support Public-Private Partnerships Project is to encourage the private sector to invest in priority projects selected through competitive procurement processes to ensure value for money. The project will be implemented by the Ministry of Finance and Mass Media together with the National Agency for Public Private Partnership. The $25 million loan has a 20-year maturity, including a 9-year grace period, and $2 million counterpart funding.
Are Nature Based Solutions the key to Africa’s climate response?
While the UN climate talks are celebrating their 25th year, carbon emissions around the world have continued to climb. For many, that is where natural solutions could play a key role in managing a dramatic climate transition.
Nature-based solutions or the process of working with and around natural ecosystems to deliver real-world benefits for climate resilience and sustainable development, took center stage on day 4 of COP25 in Madrid).
The African Development Bank has three main approaches to nature-based solutions; namely, restoring damaged ecosystems (land, forests and water bodies), conserving biodiversity, and integrated natural resources management.
Vanessa Ushie, Manager of the Policy Analysis Division at the Bank’s African Natural Resource Centre, briefed delegates at COP 25 about the Centre’s work during a panel discussion on Tuesday.
“Nature-based solutions are easy to use, and very effective in improving community livelihoods and resilience to climate change. The AfDB is scaling up the use of nature-based solutions to address climate impacts on critical ecosystems and biodiversity in Africa,” Ushie said.
UN biodiversity expert Valerie Kapos described a range of natural solutions being implemented across Africa, and around the world. These included protecting rivers, forests, and marine solutions, to benefit local economies.
“We need to be applying that argument to whichever solutions we are choosing,” said Kapos, Head of Climate Change and Biodiversity at the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC).
This is definitely true for the Seychelles, which has been appointed by the African Union to be the champion of the blue or ocean economy across the continent. While the continent is known for its deserts and jungles, a blue economic transition will be essential for the 48 coastal states that collectively make up the world’s longest coastline.
“We have protected 47% of our land, and are moving toward 50%. But our ocean territory is 3,000 times bigger than our land territory, and we are on track to protect 30% of that area,” said Ronald Jumeau, Permanent Representative of the Seychelles at the UN.
This was made possible by one of the world’s biggest debt-swap programs. The debt-for-nature deal was made possible through The Nature Conservancy, which bought the island nation’s $400 million sovereign debt at a discount. That money will be re-invested in nature conservation programmes.
“Through this program we have funded mangrove restoration and climate education programmes,” said Angelique Pouponneau, who runs a Seychelles-based trust fund focusing on climate adaptation and conservation.
Ushie from the African Development Bank pointed out that “one thing we are looking at is changing the way in which lending is being channeled to Africa, and how nature can be integrated in the measurement of national wealth and sovereign credit ratings for African countries.”
World’s governments plan to produce 120% more fossil fuels by 2030 than can be burned under 1.5°C warming
The world is on track to produce far more coal, oil and gas than would be consistent with limiting warming to 1.5°C or 2°C, creating a “production gap” that makes climate goals much harder to reach, according to the first report to assess countries’ plans and projections for fossil fuel production.
The Production Gap Report complements the UN Environment Programme (UNEP) Emissions Gap Report, which shows that country pledges fall short of the emission reductions needed to meet global temperature limits.
Countries are planning to produce fossil fuels far in excess of the levels needed to fulfil their climate pledges under the Paris Agreement, which themselves are far from adequate. This overinvestment in coal, oil, and gas supply locks in fossil fuel infrastructure that will make emissions reductions harder to achieve.
“Over the past decade, the climate conversation has shifted. There’s greater recognition of the role that the unfettered expansion of fossil fuel production plays in undermining climate progress,” said Michael Lazarus, a lead author on the report and the director of Stockholm Environment Institute’s US Center. “This report shows, for the first time, just how big the disconnect is between Paris temperature goals and countries’ plans and policies for coal, oil, and gas production. It also shares solutions, suggesting ways to help close this gap through domestic policies and international cooperation.”
The report was produced by leading research organizations, including the Stockholm Environment Institute (SEI), International Institute for Sustainable Development, Overseas Development Institute, CICERO Centre for International Climate and Environmental Research, Climate Analytics, and UNEP. Over fifty researchers contributed to the analysis and review, spanning numerous universities and additional research organizations.
In the report preface, UNEP Executive Director Inger Andersen notes that carbon emissions have remained exactly at the levels projected a decade ago, under the business-as-usual scenarios used in Emissions Gap Reports.
“This calls for a sharpened, and long overdue, focus on fossil fuels,” she writes. “The world’s energy supply remains dominated by coal, oil and gas, driving emission levels that are inconsistent with climate goals. To that end, this report introduces the fossil fuel production gap, a new metric that clearly shows the gap between increasing fossil fuel production and the decline needed to limit global warming.”
The report’s main findings include:
- The world is on track to produce about 50% more fossil fuels in 2030 than would be consistent with limiting warming to 2°C and 120% more than would be consistent with limiting warming to 1.5°C.
- This production gap is largest for coal. Countries plan to produce 150% more coal in 2030 than would be consistent with limiting warming to 2°C, and 280% more than would be consistent with limiting warming to 1.5°C.
- Oil and gas are also on track to exceed carbon budgets, with continued investment and infrastructure locking in use of these fuels, until countries are producing between 40% and 50% more oil and gas by 2040 than would be consistent with limiting warming to 2°C.
- National projections suggest that countries are planning on 17% more coal, 10% more oil and 5% more gas production in 2030 than consistent with NDC implementation (which itself is not enough to limit warming to 1.5°C or 2°C).
Countries have numerous options for closing the production gap, including limiting exploration and extraction, removing subsidies, and aligning future production plans with climate goals. The report details these options, as well as those available through international cooperation under the Paris Agreement.
The authors also emphasize the importance of a just transition away from fossil fuels.
“There is a pressing need to ensure that those affected by social and economic change are not left behind,” said report author and SEI Research Fellow Cleo Verkuijl. “At the same time, transition planning can build consensus for more ambitious climate policy.”
The Production Gap Report comes as more than 60 countries have already committed to updating their nationally determined contributions (NDCs), which set out their new emission reduction plans and climate pledges under the Paris Agreement, by 2020.
“Countries can use this opportunity to integrate strategies to manage fossil fuel production into their NDCs – which in turn will help them reach emission reduction goals,” said Niklas Hagelberg, UNEP’s climate change coordinator.
“Despite more than two decades of climate policy making, fossil fuel production levels are higher than ever,” said SEI’s Executive Director, Måns Nilsson. “This report shows that governments’ continued support for coal, oil and gas extraction is a big part of the problem. We’re in a deep hole – and we need to stop digging.”
About the UN Environment Programme
UNEP is the leading global voice on the environment. It provides leadership and encourages partnership in caring for the environment by inspiring, informing and enabling nations and peoples to improve their quality of life without compromising that of future generations.
Greening the blue: championing coastal climate solutions
They call them ‘blue forests’—and they are among the most productive and valuable habitats on Earth.
Mangroves might not look like much to some, but these humble salt-loving species are vital to coastal ecosystems and communities the world over. They are a crucial breeding habitat for aquatic wildlife—with some 75 per cent of commercially fished species either spending part of their life cycle in mangrove ecosystems or depending on the habitat for food. They also protect the coasts themselves, with their dense root systems acting as natural buffers against storm surges.
However, it’s their potential in the fight against climate change that is making mangroves the new superstars of coastal conservation efforts.
“Mangroves and other ‘blue carbon’ ecosystems like sea grasses and salt marshes are incredibly efficient at storing carbon,” UN Environment Programme (UNEP) international waters expert Isabelle Vanderbeck says.
“They can absorb and store as much as 10 times as much carbon as terrestrial ecosystems—so it goes without saying that they are a critical part of efforts to overcome climate change.”
But despite their value to the environment and coastal economies alike, globally mangroves are being lost at an alarming rate — three to five times faster than other forests.
“Over one third of the world’s mangroves have been lost over the last 100 years,” Vanderbeck says. “It’s a trend that has to stop now if the species and communities that depend on them are to survive.”
Nature-based climate solutions
However, growing recognition of mangroves’ role in both mitigating and adapting to climate change, combined with a growing global market for carbon offsets, is providing a lifeline for mangrove ecosystems the world over.
With backing from the Global Environment Facility, the Blue Forests Project—a collaboration between UNEP and GRID-Arendal—is working with partners across eight countries to test ‘blue carbon’ and other nature-based climate solutions, setting the stage for countries to help countries fulfil the goals of the Paris Climate Agreement by upscaling these approaches globally.
“Through the Blue Forests Project, we are exploring how coastal carbon and ecosystem services can be harnessed to fight climate change, boost conservation and provide sustainable livelihoods,” Steven Lutz, project coordinator at GRID-Arendal, says.
“Blue Forests builds on ‘blue carbon’ market success.” Lutz says. “Our partner site in Gazi Bay, Kenya is the world’s first working blue carbon’ market project, where carbon finance has been supporting communities to conserve and restore mangrove forests for the past few years. Profit from the Gazi Bay project also supports community development activities such as the building of freshwater wells.”
Blue carbon goes global
Just last month, the project celebrated its latest milestone, with the launch of the world’s largest community-based mangrove carbon finance conservation initiative in Madagascar in partnership with Blue Ventures.
Under the project—dubbed ‘Tairy Honko’, or ‘preserving mangroves’ in the local Vezo dialect—communities across the Velondriake Locally Managed Marine Area in Madagascar’s remote southwest are uniting to restore and conserve over 1,200 hectares of mangroves.
Together with blue carbon sales in Vanga Bay and Gazi Bay in Kenya, achieved in partnership with the Kenya Marine and Fisheries Research Institute, the Madagascar project represents an expansion of the market for blue carbon offsets by an order of magnitude, with Blue Forests having brought a total 1,500 hectares of mangrove forests to the voluntary carbon market.
“Over 1,500 hectares of mangrove forests are now available on the voluntary carbon market, Lutz says. “With support from the Global Environment Facility and partners, the Blue Forests Project has been able to expand the carbon market for blue carbon offsets by over an order of magnitude.”
The Tahiry Honko initiative is set to offset global emissions, with verified ‘blue carbon’ credit sales providing the funds needed to support local management of the marine protected area and finance community development, including infrastructure, healthcare and education.
“We inherited these mangroves from our ancestors, providing materials we need to survive,” Velondriake Locally Managed Marine Area Association member Joel François says. “I want to ensure we can pass these forests on to our children.”
“Through the Blue Forests Project, we have been able to demonstrate that the carbon market can work to achieve goals in sustainable development and the mitigation of climate change”, Isabelle Vanderbeck says. “Next steps include supporting countries to include blue carbon solutions in national pledges to fulfil the Paris Climate Agreement.”
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