Search Climate Insights Directory

The report evaluates the capacity of provincial policies in Canada to support climate adaptation and their own inherent flexibility to change. Using the ADAPTool, it analyzes policies across agriculture, forestry, and water sectors, finding that while many policies support information sharing and decentralized decision-making, they often lack direct support for critical adaptation actions and formal review mechanisms.

An open letter from civil society organisations to Dr Jim Yong Kim arguing that the IFC's action plan for financial sector lending fails to address critical gaps in accountability and risk management. The authors highlight that the IFC cannot currently determine if financial intermediary investments cause harm to the environment or local communities, despite these investments accounting for nearly 20 per cent of World Bank Group annual commitments. They call for a fundamental rethink of the IFC's investment strategy, including independent input and participatory consultation with affected communities.

Global climate finance plateaued at USD 359 billion in 2012, falling short of investment needs for a 2°C pathway. While private actors provided 62% of the total, a strong domestic preference exists, with 76% of finance spent within the country of origin. Public finance, particularly through Development Finance Institutions (DFIs), remains critical for addressing risk and funding adaptation, though significant knowledge gaps persist in tracking private adaptation and energy efficiency flows.

The Jädraås Onshore Windfarm, the largest in Scandinavian Europe at its May 2013 commissioning, was financed through a total of EUR 360 million in private investment. To overcome limited commercial bank lending capacity during the economic recession, a 'Synthetic Loan' structure was created: the Danish export credit agency (EKF) provided an AAA-rated state-backed guarantee that enabled the pension fund PensionDanmark to provide EUR 120 million in debt. The project's viability was further secured by the Swedish renewable electricity certificate scheme, providing a 15-year revenue stream. Risk was managed through hedging contracts for power and certificates and a 15-year operations and maintenance contract with turbine provider Vestas. The report argues that this model is replicable for other green infrastructure projects if simple structures and risk-coverage mechanisms are employed.

The report examines the challenges and mechanisms for attracting private capital to climate finance, noting that private funding is nearly three times larger than public funding but remains difficult to channel toward adaptation in developing countries. It identifies political, project-related, and financing barriers—particularly in Africa—and suggests a combination of policy reforms and financial instruments like loan guarantees and pledge funds to mitigate risk. The Green Climate Fund (GCF) is highlighted as a central vehicle for achieving the $100 billion annual target by 2020, though it must address the funding gap between mitigation and adaptation.

The Index-Based Livestock Insurance (IBLI) Project in Mongolia, supported by the World Bank, provides financial security to herders facing mass livestock losses from extreme weather. Unlike traditional insurance, IBLI uses aggregated criteria for payouts, making it viable for sparsely populated areas. In 2012, 16,000 policies were purchased. The program is part of a broader government risk management strategy that includes adjusting livestock numbers to match pastureland carrying capacity.

The document examines Mongolia's Index-Based Livestock Insurance (IBLI) project, which provides financial security to herders facing 'dzuds' (extreme weather events). Unlike traditional insurance, IBLI triggers payouts based on aggregated mortality rates rather than individual losses, reducing transaction costs and moral hazard. The project, supported by the World Bank, integrates market-based insurance with government catastrophic coverage to protect against mass livestock losses. The brief emphasizes that for such programs to be sustainable, they require high-quality mortality data, affordable premiums, and integration into a broader risk management strategy that includes sustainable grazing practices and veterinary services.

The report finds that the integration of climate change adaptation into Swedish forestry policy was slow and hindered by the dominance of production and mitigation frames. While academic advocacy and external events like Storm Gudrun (2005) increased awareness, the sector's long tradition of relying on experience over predictive modeling and a strong focus on short-term productivity created significant resistance. The study concludes that while some progress was made through the Commission on Climate and Vulnerability, adaptation is often viewed through the narrow lenses of either increasing production or preserving biodiversity, rather than as an integrated policy approach.

The document describes the creation of an Implementation Plan (IP) to operationalize the CARICOM Regional Framework for Achieving Development Resilient to Climate Change. It emphasizes a 'three-ones' approach to resource mobilization and the necessity of transformational change in policy-setting to avoid severe economic costs of inaction. The IP focuses on mainstreaming climate adaptation and mitigation into national development, targeting sectors such as agriculture, energy, and tourism, while promoting a risk-management ethic in decision-making.

The report examines how local climate adaptation lessons are 'upscaled' to inform national or sub-national policy. It introduces a sense-making framework based on two axes—epistemology (realism vs. constructionism) and intent of inquiry (universalism vs. contextualism)—to categorize how research connects with policy. By analyzing three case studies (Stockholm, Niagara, and the Mahakam Delta), the authors demonstrate that methodological choices determine whether research supports 'planned policy' (regulatory/coercive) or 'self-organised adaptation' (non-coercive). The report argues that case studies can serve as platforms to challenge disabling governance structures and leverage stakeholder competencies to reinvent institutions.

The document argues that while private sector finance has historically focused on mitigation, there is an emerging market for adaptation finance through instruments like 'Green Bonds' and debt. It highlights that private finance is often concentrated in large emerging economies, necessitating a complementary role for public finance to support the poorest nations. The brief recommends raising awareness among institutional investors and creating a visible pipeline of adaptation projects to attract private capital.

The paper proposes a framework of seven adaptive policy-making practices, divided into planned and autonomous adaptability, to help governments navigate unpredictable climate impacts. Based on research in Canada and India, the authors suggest that while these practices exist, they are often used ad hoc and should instead be integrated into a systematic approach of continuous policy piloting to overcome political and fiscal barriers.

The document explores how the private sector can partner with governments to address climate adaptation, noting that corporate expertise in managing economic uncertainty and risk can inform public sector decision-making. It highlights that while private sector integration of climate risks into planning can protect global markets and create new economic opportunities, government facilitation is necessary to ensure corporate actions promote the public good rather than running counter to it.

The author contends that current decision-making is 'hard-wired' to historical climate averages and relies on reactive disaster response, which is insufficient for the scale and uncertainty of climate change. Using examples like paddy farming in Indonesia and the 2005 Mumbai floods, the paper illustrates how reliance on 'normalcy' bandwidths and outdated infrastructure creates vulnerability. The author proposes a transition to anticipatory risk management based on a better understanding of risk thresholds, politically-mediated determinations of 'acceptable' resiliency levels, and an integrated approach that considers non-climate shocks such as population growth.

The research finds that while sustainable development indicators are widely reported in corporate documents, their actual integration into decision-making processes remains limited. At the Board level, indicators are primarily used for risk management, such as health and safety. In corporate strategic management, senior executives have access to indicators—sometimes via Balanced Scorecards—but concrete examples of their use in guiding decisions are scarce. Supply chain management is in an "embryonic stage," relying more on codes of conduct and certifications than quantitative indicators. The author recommends further research into Board accountability, the development of context-specific supply chain metrics, and the integration of sustainability targets into individual performance appraisals.

The paper examines the tension between 'risk as uncertainty' and 'risk versus uncertainty' in economic thought. It contrasts Keynes's view that incalculable uncertainty necessitates government intervention with Hayek's argument that the market's price system efficiently manages such uncertainty. The author traces how mid-century economic theory collapsed this distinction, leading to the birth of modern finance and the quantification of risk, a trend challenged by the 2007-2009 global financial crisis.

The report outlines strategic opportunities to implement the International Coffee Agreement 2007, focusing on participatory governance, improved market statistics for differentiated coffees, capacity building, and enhanced access to finance for small producers.

The document examines how specific trading practices can address the economic vulnerabilities of coffee producers, such as declining prices and market instability. It argues that while standard-based systems often focus on production, economic sustainability requires a focus on the trading relationship. The report details various instruments—including long-term contracts, minimum price arrangements, and shared hedging—that can redistribute risk and revenue more equitably. It concludes that trust and information transparency are the essential foundations for these practices to succeed, providing a set of recommendations for stakeholders to improve producer bankability and bargaining power.

The report presents a business case for Free, Prior, and Informed Consent (FPIC), arguing that failing to secure community approval creates significant financial, operational, and reputational risks. Through four case studies in the Philippines, Argentina, Thailand, and Peru, it demonstrates that while FPIC requires an iterative process of information sharing and negotiation, the costs are minimal compared to the potential losses from project delays, asset write-downs, and lost revenues. The authors recommend that project sponsors, financiers, and host governments integrate FPIC into their decision-making and permitting processes to avoid costly conflicts.

The IAI Directorate report for May-November 2006 highlights the implementation of the CRN-II program, the closure of CRN-I, and the initiation of a new human dimensions program funded by the NSF. The period was marked by expanded regional cooperation with entities like RIOCC, CYTED, and IICA, as well as capacity-building efforts including a summer school in Germany and workshops on climate-land use interactions. Internally, the IAI appointed a new Financial and Administrative Officer and completed an independent audit. Financially, as of November 2006, only 6% of approved member nation contributions had been collected, though the Directorate estimated a final collection rate of 90% for the 2006/2007 period.