Climate Change brochure

Climate Change

Greening growth and empowering vulnerable communities to adapt to a changing climate

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Contents Climate Resilience and Greening Growth

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Our Global Experience

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Climate Resilience

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Greening Growth

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Enabling Environment Reform Focus on Nigeria

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Climate Change

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“ The contrast between Adam Smith International’s support and others is like day and night in terms of timeliness and effectiveness. Others will promise help but delay and go through various procedures, so by the time it is available it has been overtaken by events. I really appreciate the assistance. My main message is keep it going, keep it working in the same way.” r. Nwanze Okidegbe, Chief Economic Adviser to the D President of Nigeria

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Climate Resilience and Greening Growth Adam Smith International brings a wealth of knowledge in addressing both the causes and effects of climate change. We apply pragmatism and a deep-rooted understanding of the broader infrastructure and growth sectors to this dynamic and fast-changing area of practice and policy.

We deliver exceptional and sustainable results in climate resilience and help unlock greener growth in developing economies. Our work enables communities who are vulnerable to the effects of climate change to better plan and adapt to the risks it poses, and we promote access to energy efficient and low carbon technologies to prevent climate change whilst driving growth.

Adam Smith International offers world-class strategic planning to ensure climate resilience informs policy-making, and is a mainstream consideration in infrastructure development around the world. We work with government decision-makers to create strategies for realising economic

Climate Resilience

Climate Resilient Infrastructure Resilience Planning

growth while securing a greener future, by introducing clean energy solutions and planning for clean transport in urban areas.

For countries to build climate resilience and progress along a path of climate compatible development, it is often necessary to reform the national enabling environment: to improve climate policy, design finance packages and to raise awareness of climate issues among key stakeholders.

Adam Smith International is a leader in all three areas and has helped government partners to plan for robust and sustainable action on climate change.

Enabling Environment Reform

Greening Growth

Climate Finance

Clean Energy

Climate Policy Planning

Clean Transport

Climate Communications

Climate Change

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Our Global Experience We have worked across the world with many clients and governments on an award-winning portfolio of projects, greening growth and empowering vulnerable communities to adapt to a changing climate. Throughout this brochure, you will find examples of our work – you can see a small selection here. For further information on our wider portfolio, visit www.adamsmithinternational.com/exploreourwork

Designing solar markets in northern Nigeria We designed a major solar power initiative for the International Climate Fund, building markets for solar electricity in northern Nigeria. Focusing on electrifying rural health clinics and primary schools, the programme has the potential to greatly improve the reliability of basic services for millions.

Our Offices London | United Kingdom New Delhi | India Nairobi | Africa Sydney | Australia

Regions: Infrastructure Projects The Americas & Caribbean Central & Southern Africa West Africa East Africa Middle East & North Africa Europe & Former Soviet Union Central Asia South Asia & Asia Pacific

Regions: Other projects Various

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Facilitating green growth in Sierra Leone Our Sierra Leone Opportunities for Business Action programme is developing market systems in the renewable energy and waste management sectors to unlock constraints to clean, reliable energy for micro-small-medium enterprises.

Promoting a Green Economy in Jordan We analysed Jordan’s economy to highlight key strengths and issues in its green policy and investment framework, and recommended financial incentives to encourage growth in the green economy.

Identifying green energy opportunities in Nepal Our Nepal Centre for Inclusive Growth has supported the development of public-private partnerships to roll-out solar street lights in Pokhara’s tourist hotspots. Solar energy from the lights powers security cameras, helping to create a safer and more tourist-friendly city, growing the Pokharan economy in turn.

Financing Kenya’s National Climate Change Action Plan We designed a financing scheme for Kenya’s National Climate Change Action Plan, helping the Kenyan Government create a business environment and institutional structures conducive to investment.

Communicating renewable energy policy in Botswana

Developing climate resilient infrastructure for Southern Africa

On behalf of the Government of Botswana, we designed and delivered a communications campaign to improve awareness of clean energy issues among stakeholders. In doing so, we secured buy-in for future climate change action.

Our Climate Resilient Infrastructure Development Facility mobilises infrastructure projects that increase the ability of communities, policy makers and planners to cope with climate extremes that affect water resources in the SADC region.

Climate Change

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Climate Resilience Adam Smith International is at the forefront of helping vulnerable communities to increase their resilience to the effects of climate change.

We design strategies that enable communities to predict, manage and adapt to the risks posed by a changing climate, and deliver infrastructure which embeds climate considerations in its design.

Adam Smith International leads the way in strategic planning to ensure that resilience to a changing climate is a mainstream consideration in infrastructure development around the world.

We work to build climate knowledge and capacity at the local level. We also design and implement climate resilient infrastructure which better enables people, particularly the poor, to cope with and adapt to the impacts of a changing climate on their livelihoods and access to natural resources.

Reduced vulnerability to climate extremes

Resilience Planning Climate Resilient Infrastructure

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Climate Resilience

Improved water, food & energy security Increased longevity of infrastructure

“ The partnership with CRIDF will enable us to introduce new ways of thinking for increasing climate resilience for poor communities.”

J ulius Joseph Shawa, Permanent Secretary, Ministry of Agriculture & Livestock, Government of Zambia

Developing infrastructure resilient to southern Africa’s changing climate Economic growth throughout southern Africa is driving rapid demographic change and an increase in demands for water, food and energy. The problems associated with resource availability are exacerbated by climate change, in a region already affected by a dramatically variable climate.

Our Climate Resilient Infrastructure Development Facility (CRIDF), funded by DFID, aims to catalyse the development of projects that increase the ability of communities, policy makers and planners to cope with climate extremes.

We work with stakeholders to influence the design of planned water infrastructure projects, widening their scope to introduce climate-proofing measures. This ensures that the projects will provide vulnerable communities with long-term water security.

CRIDF was shortlisted for the Association of Project Management’s Overseas Project of the Year award, 2014.

Introducing climate resilience principles into the design of water infrastructure

Southern African Development Community SADC

Planning for climate resilience in Northern Nigeria With the multiple political challenges that face decision-makers in Northern Nigeria, climate resilience is often only a secondary priority. However, building climate resilience is vitally important to achieving goals in other priority policy areas and therefore Adam Smith International is working to mainstream climate resilience planning into Northern Nigeria’s strategy for development and growth. Our work provides DFID with the policy recommendations and indicative interventions to harmonise the donor’s climate change mitigation objectives with Nigerian policy makers’ priorities.

DFID will use the findings of the Adam Smith International study to encourage the uptake of climate resilience considerations into the infrastructure planning, delivery and maintenance programmes of Northern states and the Federal Government in the North. In doing so, we are contributing to the improved understanding of Nigerian policymakers of the links between climate change and their ability to deliver other policy goals.

Overall, our work will lead to the development of adaptive capacity of Northern Nigeria to overcome climate shocks.

Connecting climate change objectives to policy priorities Nigeria

Nigeria

Climate Change

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Greening Growth Adam Smith International assists governments and decision-makers to design strategies that realise economic growth while securing a greener future.

We help deliver low carbon development and improved energy efficiency to support greener growth and prevent climate change in developing countries.

Greening growth means achieving economic growth and actively preventing climate change in the process. Adam Smith International aims to deliver this by promoting the use of energy-efficient and low carbon technology in the energy and transport sectors.

Our work is focused on targeting access to fuel-efficient and low carbon technology in transport, building support

Greening Growth

Lower Carbon Emissions

“ Performance has been outstanding, particularly with regard to progress on hydropower development.�

DFID Annual Review 2012, Centre for Inclusive Growth, Nepal

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for on-grid electricity generated using clean fuels, and expanding access to off-grid renewable electricity for rural communities.

This work is central to economic development and at the same time enables communities and governments to play an important part in limiting the scale of climate change.

Reduced Damage from Climate Change

Smaller Shocks to Economic Growth

Designing solar markets in Northern Nigeria Remote communities in Northern Nigeria – and their clinics, schools, enterprises and homes – are some of the most energy deprived in the country. Public service providers often rely on expensive and unreliable diesel generators, inhibiting their ability to provide basic services. As well as severely constraining economic growth, continuing poor access to power for these communities is hindering human development.

On behalf of the International Climate Fund, we have designed a major new solar power initiative for Northern Nigeria, which will electrify rural health clinics and primary schools using photovoltaic (PV) systems: an inexpensive, reliable and clean alternative to fossil fuel energy. As demand for PV systems extends to small enterprises, private markets will grow-up around the industry, encouraging the development of national PV supply chains and creating new jobs.

Improving access to clean and reliable energy

Nigeria

In its implementation, this programme will directly improve access to a clean, reliable, sustainable and affordable electricity supply in a region of Nigeria where traditional energy systems have not succeeded.

Nigeria

Planning hydropower development in Nepal Nepal is one of the world’s poorest countries and suffers from a number of critical growth constraints such as a chronic lack of expenditure on infrastructure and a prohibitively high electricity tariff. The country’s geography and topography however, means there is huge clean energy potential to exploit in hydropower. Despite this, only 1% of the commercially viable hydropower capacity has been developed in Nepal.

We established the DFID-funded Nepal Centre for Inclusive Growth to tackle constraints to the development of potential hydropower resources and to create a wider business environment that will accelerate economic growth and promote social inclusion.

The Centre has helped Nepal to develop a world-class product template for hydropower concession agreements, developed a financial and economic appraisal model to analyse potential hydropower projects and supported the negotiation of six specific hydropower ‘megaproject’ deals with a combined value of $8bn. Once implemented, these megaprojects will directly provide cleaner and more affordable electricity supply, actively prevent climate change and help drive economic growth and poverty reduction in Nepal.

Unlocking clean energy potential through hydropower

Nepal

Devising a cleaner urban transport policy for Sierra Leone Traffic in Sierra Leone’s urban centres has been growing uncontrollably, with the use of informal public transport on the rise. Vehicles such as poda-podas and shared taxis tend to be old and energy inefficient, creating untenably high levels of emissions.

Adam Smith International devised a cleaner urban transport policy for Sierra Leone. We identified opportunities to improve and encourage the use of government public transport. The roll-out of modernised bus networks, using larger and more energy efficient vehicles, will reduce carbon emissions, making urban centres a cleaner and safer environment.

Greening urbanisation through cleaner public transport Sierra Leone

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Climate Change

Enabling Environment Reform Adam Smith International is a leader in creating policy and business environments that are conducive to tackling climate change.

We work closely with governments and civil society to improve policy planning for climate change, access to climate finance and communications around climate change activity and policy.

An enabling environment is a prerequisite to effective and sustained climate change action. Adam Smith International works to help governments create business environments and stable regulatory frameworks which promote better planning and communication around climate change policy and incentivise long-term climate investment.

One of the key challenges that face governments in realising climate compatible development is their ability to access international climate funds and to manage this finance

effectively. We support our clients in designing financing mechanisms to attract climate finance and developing climate change funds to best disburse this finance to public and private entities.

We also support governments in developing institutional structures to improve climate change policy planning and deliver greener growth, and to improve communication around the benefits and rationale for climate change action to build public support for future action.

Better Climate Policy Planning

Enabling Environment Reform

Promotes

Increased Climate Awareness

Climate Resilience Greener Growth

Greater Climate Finance Investment

“ If Jordan invests in a green economy, it can generate 50,000 jobs and save the 2% of GDP it currently loses to environmental degradation each year.� hmed Qatarneh, Secretary General, Ministry of Environment, A Government of Jordan

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Promoting a green economy in Jordan Jordan imports approximately 96% of its energy and loses more than 2% of annual GDP to environmental degradation.

We therefore analysed the key strengths and issues in Jordan’s green policy and investment framework and worked with our partners to set out a range of options for the country.

In partnership with the various ministries and associations, we recommended a set of financial and fiscal incentives to encourage lending and investment in areas relevant to the green economy.

Because a stable policy and enabling environment is crucial for investment, we also recommended that the government promote its long-term commitment to greener growth. This has raised confidence in policies, harmonising subsidies with appropriate compensation and informed effective public-private consultation.

Recommending incentives to encourage investment in green initiatives

Jordan

Jordan Financing Kenya’s National Climate Change Action Plan Kenya will be disproportionately affected by climate change, threatening its development progress.

In 2012, the government drew up a National Climate Change Action Plan, which we and our partners were invited to design a way to finance. Competition for international climate funds is fierce and Kenya must create a business environment and institutional structure conducive to investment.

The mechanism we designed will harness available funding and channel it into appropriate projects. It includes a National Climate Fund to disburse finance to public and private entities, recommendations on improving the ‘low-carbon investment climate’, means to expand carbon markets and improvements in the capacity to manage climate finance.

Enabling finance for the National Climate Change Action Plan

Kenya

Kenya

Communicating renewable energy policy in Botswana Climate change and energy security is affecting the environment, people and industry of Botswana, often to a critical degree. On behalf of the Government of Botswana, we designed and delivered a broad communications programme to raise awareness of climate and energy issues, and secure buy-in for future climate change action.

Engaging groups as wide-ranging as financiers and energy customers, our team helped stakeholders to understand the implications of the new renewables tariff regime. We set this in the context of the environmental issues surrounding high-carbon thermal energy generation and of energy security in general.

Adam Smith International played a part in communicating Botswana’s climate forward position to stakeholders across the region – such as international investors and the donor community – to share lessons learned on green policy implementation.

Securing buy-in for green energy policy Botswana

Revenue ClimateReform Change 11

Focus on Nigeria: NIAF The Nigeria Infrastructure Advisory Facility II We manage DFID’s five-year, £95m Nigeria Infrastructure Advisory Facility II (NIAF) programme, providing demand-led advice and assistance to Nigerian government bodies at federal and state level as they meet the challenge of future-proofing Nigeria’s economic growth.

As a country where 70% of the labour force makes a living in the agricultural sector, Nigeria is disproportionately exposed to the effects of climate change. Its impact is already being felt: desertification, soil erosion and flooding have degraded and destroyed agricultural land. The need to reduce carbon emissions and therefore limit the scale of climate change is now critical. It is estimated that the damage averted by lowering carbon emissions could save Nigeria $28 for every tonne of emissions cut.

Our NIAF team is working closely with key government decision-makers to inculcate climate concerns into public policy and planning. With our assistance, the Nigerian Government is successfully reducing the scale of climate

“ The NIAF programme is rightly regarded as one of DFID Nigeria’s success stories and a model for how innovative, effective and successful development projects should be designed, managed and implemented.”

Richard Montgomery, Former Head of Office, DFID Nigeria

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change and adapting to its impacts. The unparalleled expertise that we provide is focused in three linked areas: Climate Resilience: As world leaders in strategic planning to ensure climate resilience is a mainstream consideration in infrastructure development, we introduce Nigerian decision-makers to the most up-to-date knowledge and practice in climate resilience. This work enables them to better predict, manage and plan for the effects of climate change and ensures that informed policy decisions can be made, connecting priorities across multiple sectors. We have already achieved real impact in this area through our work

in northern Nigeria, where we helped mainstream climate resilience planning into the infrastructure development and maintenance programmes of the Federal Government.

resilience and greener growth. Our support has already leveraged millions of dollars of international finance for climate change funding in Nigeria.

Greening Growth:

We are well on the way to achieving real change for the people of Nigeria. Our NIAF programme has:

We work at the cutting edge of planning and delivery in the Nigerian energy and transport sectors to achieve greener growth which drives economic development and limits climate change. Our focus is on introducing clean energy solutions to increase rural access to electricity, reducing gas flaring to cut carbon emissions and improving planning for clean transport in urban areas. We designed and piloted the Light Up Rural Nigeria Programme which has provided thousands of schools, households and streets in rural communities with access to clean, reliable electricity supply and launched the highly-successful NIAF clean cookstoves programme which advanced cleaner and cheaper methods of heating food to thousands of rural households in Nigeria.

P rovided cleaner and cheaper cooking stoves for more than 20,000 people across Nigeria; E lectrified thousands of homes, schools, clinics and streets in rural communities via solar power; and R educed the prevalence of gas flaring significantly and helped cut the release of harmful carbon emissions.

Enabling Environment Reform: Working at the heart of government, we guide and help implement key reforms to improve the enabling environment for climate action and connect climate change objectives to policy priorities. We help Nigerian decision-makers to create the necessary business environment and institutional structures to attract international climate finance, develop climate policy planning and improve government communication around the need for and benefits of climate

Nigeria

Nigeria

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Adam Smith International is an award-winning professional services business that delivers real impact, value and lasting change through projects supporting economic growth and government reform internationally.

We specialise in the design, management and delivery of complex projects.

Our wide-ranging experience is grouped into two areas: Economic Growth and Government Reform. Economic Growth includes services in Private Sector Development, Infrastructure Development, Extractive Industries Governance and Climate Change. Government Reform includes services in Public Administration Reform, Justice, Security and Peace-building, Revenue Reform, Public Financial Management, Education Development, and Civil Society and Demand-Side Accountability.

Often working in challenging environments and conflict affected areas, we have a proven track record for achieving tangible results.

Find out more For an in-depth look at any of these projects and more of our Climate Change experience, visit www.adamsmithinternational.com.

For assistance, please contact: Matt Uzzell Head of Climate Change T: +44 20 7091 3517 E: matt.uzzell@adamsmithinternational.com

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