Involvement and commitment at all levels of decision-making is necessary to ensure mitigation and adaptation policies addressing the climate change challenge are not only achieved, but sustained. In particular, sub-national authorities (regions, provinces, states or municipalities) have a key role to play in actively incorporating climate change considerations into day-to-day business and in introducing climate-friendly policies, regulations and investment decisions. Adaptation to climate change is very site-dependent and local planning decisions will be critical to tailoring adaptation action to the conditions in which the processes will take place. However, seizing these opportunities requires that climate change management be mainstreamed into core development planning and that a long-term perspective be adopted to ensure that the adaptation of today does not become the mal-adaptation of tomorrow.
The Territorial Approach Initiative is a response to the increasing demand from sub-national authorities for assistance in assessing and managing the physical and socio-economic impact of climate change. One of the main objectives of this initiative is to enhance the capacity of regional and local governments to enact regulatory measures, as well as to take advantage of new sources of environmental finance, in order to implement their climate change responses.
The UNDP Territorial Facility, developed in association with UNEP, other UN Agencies, and with 8 associations of sub national governments, including the Climate Group and the Network for regional government for sustainable development (NRG4SD), helps sub-national authorities prepare Integrated Territorial Climate Plans (ITCP) to identify priority mitigation and adaptation measures (negative costs/no-regrets/urgent initiatives). It then provides guidance to public authorities on how to choose and design the most appropriate policies and financing schemes, such as carbon finance schemes like the Clean Development Mechanism (CDM) and the MDG Carbon Facility, adaptation funds, UN-REDD, ODA, public-private partnerships, corporate social responsibility, index insurance and green bonds. Once an appropriate scheme is identified, the facility helps to implement priority measures such as the provision of basic services to the population, greater energy and food security and employment in a manner responsive to their unique territorial conditions.
In addition to public authorities, it is crucial to involve all key socio-economic stakeholders such as private investors, trade unions, NGOs and aid partners. This is achieved through the establishment of Regional Climate Change Coordination Committees (RCCCC) that act as open forums to facilitate dialogue and coordination among all stakeholders -- including the private sector -- and that provide a pivotal mechanism for a co-development of the ITCP between public authorities and civil society.
The Territorial Facility targets the preparation of Integrated Territorial Climate Plans for 50 regions, including assessment of carbon emissions, present and future vulnerability, and mitigation and adaptation strategies. While encouraging long-term thinking, these Integrated Territorial Climate Plans highlight the socio-economic benefits of addressing climate change in the short- and medium-term. UNDP experience in responding to climate change over the past two decades shows that if policies, skills and incentives are developed to influence behavior and encourage investments in climate-friendly businesses, then not only can greenhouse gas emissions be reduced, but new economic opportunities and millions of new jobs can be created.
The Territorial Approach to Climate Change establishes robust partnerships between and amongst regions in industrial and developing countries, NGOs, academia, bilateral aid organizations, UN agencies and the private sector to foster knowledge transfer and direct investment to fight against climate change. In this respect, the Territorial Facility is positioned as an institutional platform providing a partnership and regulatory framework that is transparent and respectful to the laws of free competition so as to encourage an active and central private sector investment role –in terms of eco-innovation and the transfer of green technologies - that can open the private sector to new medium-term markets. Moreover, there are additional benefits for the private sector to get involved, such as direct dialogue with sub-national and national authorities; to help identify investment project opportunities through the opening of new markets; to reinforce the position of the company in the territory; and to take advantage of new sources of environmental finance.
In order to implement a Participative Framework between the private sector, UN Organizations, and regions, there are three possible types of cooperation:
- Participate in the Regional Climate Change Coordination Committee (RCCCC) in targeted regions and provinces. The RCCCC will act as an open forum to facilitate dialogue and coordination among stakeholders. It will also promote a co-development process of the ITCP between regional authorities and national/international socio-economic stakeholders. The private sector may share its expertise with the sub-national authorities for policy dialogue and technical services.
- Finance small community projects (about US$20,000 each) once the co-development governance infrastructure is established and the ITCP’s key objectives identified. These small community projects will be directly executed by local organizations and will help to create momentum, mobilize communities, gather information and build confidence. They will focus on the priority areas identified from the ITCP. The private sector will receive a full recognition from the sub-national authorities and visibility within the Country.
- Further develop and implement priority investment projects identified by the ITCPs, taking advantage of new sources of environmental finance as required.
For more information, please contact Christophe Nuttall, UNDP Director Hub for Innovative Partnerships
