intergovernmental fiscal transfers and adaptation to climate change
DESCRIPTION
Intergovernmental Fiscal Transfers and Adaptation to Climate Change. Dr. Sonny Mumbunan Research Centre for Climate Change University of Indonesia – RCCC UI. The Governance of Adaptation: International Symposium March 22-23, 2012, Amsterdam, the Netherlands. The overview. Background - PowerPoint PPT PresentationTRANSCRIPT
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Intergovernmental Fiscal Transfers and Adaptation to Climate Change
The Governance of Adaptation: International Symposium March 22-23, 2012, Amsterdam, the Netherlands
Dr. Sonny MumbunanResearch Centre for Climate ChangeUniversity of Indonesia – RCCC UI
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The overview
Background Question Framework
- 3E criteria- Responsibility assignments and public
functions- Fiscal transfers for adaptation
Concluding notes
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Background
Financial needs for adaptation measures still far outweigh the available fund
Risks and vulnerabilities from CC are unevenly distributed among jurisdictions (rural/urban, district/municipality, poor/rich countries)
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Background
CC impacts occur at different scales – so do CC adaptation actions and measures
Different actors at different scales and public agencies are important in public goods provision for adaptation measures
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Background
Scientific interests
The relationship between scales in CC adaptation; Really, is there an ‘adaptation paradox’ (Ayers 2011)?
The importance of scale and public financing in CC adaptation have begun to be addressed (e.g. Swart et al 2009; Termer et al 2011). So far, rather casually – not a systematic treatment.
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Background
Scientific interests (continued)
The notion of agency-scale and the challenges of Ostrom’s polycentricity as an enabler to adaptation (Boyd and Kjellen, in progress)
The differentiation between public provision (i.e. by state actors) and public production for adaptation
(i.e. by individuals and communities for state-based public provision)
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Background
Policy interests
The present need of policy response: effective, efficient and equitable set of (financing) instruments for CC adaptation in light of differences in scale and governmental relation
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The question
How to conceptually build a meaningful relationship between adaptation measures to climate
change and intergovernmental fiscal transfers in a multi-layered
system of governance at different jurisdictional scale?
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The framework
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The framework
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Note: UNFCC Adaptation Fund
Source of fund: CDM mechanism; potentially from international ‘adaptation levies’ e.g. International Air Travel Adaptation Levy (IATAL) or bunker fuels under International Maritime Emission Reduction Scheme (IMERS)
It is on the revenue side
Question: how to allocate and distribute the fund to different scales of government?
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Governance issue: Interactions at international and supranational levels should be incorporated (read: institutionally arranged) into the national system of governmental structure and relations
For example:- REDD mechanism in CC mitigation- Or, adaptation fund under GEF channeled through institutions like UNDP, UNEP, the World Bank?
Note: UNFCC Adaptation Fund
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The framework
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The 3Es criteria in adaptation
Effectiveness – in meeting desired adaptation results
Efficiency – the use of resources; incentive structure in terms of cost and benefit
Equity – sharing or equalizing the burden
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The 3Es criteria in adaptation
Effectiveness - Outcome oriented in addressing CC adaptation
Efficiency - Economies of scale- Public goods and ‘correspondence principle’
Equity - Fiscal gap approach for regions with weak fiscal capacities
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Scaling up or down? On responsibility assignments
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Public functions for adaptation
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Fiscal transfer instruments
General-purpose transfersLower level governments have full discretion on its use (block grant)
Specific-purpose transfersOutcome oriented, for priority sectors and measures
Revenue-sharing arrangement
Sharing arrangement of revenues from taxes or sector-based revenues (marine, forestry, infrastructure, etc)
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Transfer instrument for adaptation
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Transfer instrument for adaptation
“Ecological fiscal transfers” are already in place to address ecological issues in general (Mumbunan, 2011)
In CC, intergovernmental fiscal transfers have been proposed for mitigation measures
Most of which are in form of revenue-sharing arrangement (e.g. Busch et al 2011; Indartik Nurfatriani and Ginoga 2011)
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The framework
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Concluding notes
The options for intergovernmental fiscal transfers for CC adaptation are there
Mixed instruments of transfer to fulfill multi-criteria of adaptation measures
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Thank you for your attention!
Dr. Sonny MumbunanResearch Centre for Climate ChangeUniversity of Indonesia – RCCC UIE-mail: [email protected] Rektorat Lt. 8,5Kampus UI Depok, 16424Indonesia