IFAD’s Climate Change Strategy EB Informal Seminar 14 December 2009

1. IFAD’s Climate Change Strategy EB Informal Seminar 14 December 2009 Elwyn Grainger-Jones Director, Global Environment and Climate Change International Fund for Agricultural Development

2. Presentation Overview IFAD’s mandate and experience Strategy for a Climate Smart IFAD: Changing Context • Goal + • Purpose • Outputs • Inputs

3. Glossary/Climate Jargon • Adaptation, climate resilience • Mitigation, carbon emissions • Copenhagen, UNFCCC • Carbon market • REDD

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. RURAL LIVELIHOODS (migration, labour availability, food insecurity, conflict, forced sale of livestock and other assets) RURAL INFRASTRUCTURE (rural roads, storage and processing, irrigation systems) AGRICULTURAL PRODUCTIVITY (food and cash crops, livestock and fisheries) ECOSYSTEMS/ ENVIRONMENTAL PROCESSES SUSTAINING AGRICULTURAL PRODUCTION 1. The Changing Context: Impacts e.g. food insecurity in Niger, rural livelihoods in the high Andes (Altiplano) in Peru. • Biophysical drivers • Temperature • Extreme events frequency, intensity • Rainfall patterns • Seasonal shifts • Sea level rise e.g. damage to irrigation systems and other agricultural infrastructure in Viet Nam • Global Rules Response • Global carbon target • Finance • Adaptation Framework • Land use mitigation rules e.g. rice production in Sierra Leone, rain-fed agriculture in Yemen, livestock sector in Mongolia (drought and Dzud) e.g. coastal ecosystems in Sri Lanka; rangeland ecosystems of Eastern Morocco

6. 1. The Changing Context: Implications Continued emphasis… Anything different? Demand-ledcountry-driven Sustainableresource management Can’t thinkin historical averages ProductivityGrowth Knowledge & Innovation Gender Long termtrends New sources of risk TargetingRural Poor LandTenure CreditMarkets Integratedapproach Potentialemission reduction payment opportunities Scarce resources: Managing conflict Institutions,governance Eg: Sierra Leone Eg: income Diversification Mauritius

7. Goal: To maximize IFAD’s impact on rural poverty reduction in the changing context of climate change Purpose 2 Purpose 3 Purpose 1 To help partner communities take advantage of available mitigation incentives To inform a more joined up dialogue on climate change, rural development, agriculture and food security To be a leading international institution in supporting innovative approaches to reduce the vulnerability of poor rural communities to climate change 2. Delivering Our Mandate

8. IFAD PORTFOLIO: RURAL POVERTY REDUCTION • CLIMATE RISK • CARBON IMPACT Synergies • Mitigation • Ag potential • COP15 ambition/realism • PES experience 2. Delivering Our Mandate: Opportunities and Challenges • Adaptation • Spectrum • Comparative advantage • New tools/approaches

9. 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 2. Delivering Our Mandate: Adaptation Vulnerability focus Impacts focus (Heather McGray, WRI, 2007)

10. Agriculture and land use mitigation in agriculture: What Physical Potential? • Crop management • Rangelands and pasture management • Livestock management • Restoration of degraded lands • Coastal management and fisheries • Bio-energy

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 Staffing and Partnerships Finance Advocacy and Knowledge

13. Deep integration of climate into IFAD programmes Decentralisation of accountability for climate operations to Regional Divisions Climate Smart Principles

14. Integrating Climate into IFAD Operating Model Climate integration into COSOP, including climate assessment/proofing • Sustainable policies in-house Better/more knowledge management; strengthened advocacy & communications; role of evaluation 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 e.g. Carbon markets, explore potential for more national/regional programmes

15. 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 Staffing and Partnerships • 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. MORE FOCUSED USE OF EXISTING FINANCIAL RESOURCES ADDITIONAL GRANT-BASED RESOURCES IFAD SUPPLEMENTARY WINDOW ACCESS TO EXTERNAL FUNDS Finance

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. Presentation Summary and Next Steps IFAD’s mandate and experience Process & Product: • Timing and consultations • Flexible and responsive • Short and focused • 5-year change perspective Strategy for a Climate Smart IFAD: Changing Context • 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)