Regional: Regional Economics of Climate Change in South Asia Part II: Adaptation and Impact Assessment

Sovereign Project | 43161-012

Summary

The TA will (i) contribute to regional policy dialogue on economic costs and benefits of unilateral and regional actions on climate change adaptation, (ii) review existing climate policies

and measures at the country and regional levels, (iii) identify policy gaps and constraints in implementing appropriate adaptation measures, (iv) conduct economic assessment of the costs and benefits of unilateral and regional adaptation actions, and (v) suggest adaptation measures based on low-carbon strategies in participating DMCs. It will cover five DMCs Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka and possibly India.

This TA will coordinate with other ongoing and planned climate change initiatives in the participating DMCs and build upon existing studies. It will cover the whole region, as no such

study has yet been conducted. Although there were studies in India, and to some extent in Bangladesh, Nepal, and Sri Lanka, limited studies were conducted in Bhutan and the Maldives.

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Project Name Regional Economics of Climate Change in South Asia Part II: Adaptation and Impact Assessment
Project Number 43161-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7423-REG: Regional Economics of Climate Change in South Asia Part II: Adaptation and Impact Assessment
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Water-based natural resources management
Energy - Energy efficiency and conservation
Gender Equity and Mainstreaming No gender elements
Description

The TA will (i) contribute to regional policy dialogue on economic costs and benefits of unilateral and regional actions on climate change adaptation, (ii) review existing climate policies

and measures at the country and regional levels, (iii) identify policy gaps and constraints in implementing appropriate adaptation measures, (iv) conduct economic assessment of the costs and benefits of unilateral and regional adaptation actions, and (v) suggest adaptation measures based on low-carbon strategies in participating DMCs. It will cover five DMCs Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka and possibly India.

This TA will coordinate with other ongoing and planned climate change initiatives in the participating DMCs and build upon existing studies. It will cover the whole region, as no such

study has yet been conducted. Although there were studies in India, and to some extent in Bangladesh, Nepal, and Sri Lanka, limited studies were conducted in Bhutan and the Maldives.

This TA will also develop a climate policy simulation tool (CPST) that will create key economic indicators to show the economic consequences of different packages of climate policies and to conduct quantitative and qualitative assessment of different climate policy packages. This tool will help policy makers select concrete and appropriate economic policies

that will adapt and respond to different climate policy scenarios for each participating DMC.

The expected impact is to enhance resilience to climate change risks in South Asia. Expected outcomes include improved understanding of the economics of climate change to enable policy makers in the region to adopt necessary actions for climate change adaptation.

Project Rationale and Linkage to Country/Regional Strategy
Impact Enhanced resilience to climate change risks in South Asia DMCs.
Project Outcome
Description of Outcome Improved understanding of the economics of climate change
Progress Toward Outcome

The first Regional Consultation Meeting was held on May 2010 in Bangkok, Thailand. The framework of the study was reviewed and discussed with representatives from the Governments of Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka.

The TA also completed six national consultation workshops (Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka) and one consultation meeting (Sri Lanka). There has also been progress including (i) endorsement of the inception report; (ii) development of six national reports; and (iii) development of six sectoral reports.

The next step of activities include (i) undertaking of the integrated economic assessment of the climate change impact and adaptation options; (ii) conduct of global and national computable general equilibrium (CGE) models; (iii) climate change policy analysis; and (iv) development of a climate policy simulation tool. A website is to be developed to facilitate sharing of information and active use of the policy simulation tools developed by the TA. A regional workshop will also be conducted to disseminate the findings and recommendations of the RECCSA II study.

The second Regional Consultation Meeting is scheduled for November 2012. The meeting will (i) present the findings of the scoping, consultations, impact analysis, modeling, and economic assessment; (ii) discuss possible policy implications of the findings and policy recommendations; and (iii) identify research gaps for climate change and future research agenda.

Implementation Progress
Description of Project Outputs

Country and regional assessment reports

Analysis of climate change impacts

Climate Policy Simulation Tool

Dissemination of knowledge products

Status of Implementation Progress (Outputs, Activities, and Issues)

Part I of the study comprised an extensive review of climate change studies in the region, country-specific marginal abatement cost (MAC) curve analyses, and consultations with stakeholders including policy makers, experts and private sector. During the implementation of Part I, one steering committee meeting, two regional consultation meetings, and five national experts workshops were held; five energy background studies and four non-energy reports were produced; The draft final publication for Part I: Cleaner Technologies and Options is under review. The final publication, a consolidated output from individual background analytical reports, will provide concrete policy options addressing the barriers to the adoption of cleaner technologies and options.

For Part II of the study, international climate change modeling has completed climate downscaling and projection activities. Following which, six country reports and six draft sector reports have been submitted to ADB.

The staff of ERD/EREA currently advising on the overall approach and methodology of the study will undertake the integrated economic assessment modeling work and advise on the climate change policy simulation. A national Climate Change Economist is currently being engaged to assist EREA staff in the preparation of the economic analysis.

As of 30 September 2012, the Global CGE Specialist and national CGE Specialist for India have been engaged. Recruitment of the national CGE Specialist for Bangladesh is ongoing.

Completed reports will be synthesized and presented in a regional consultation meeting tentatively scheduled for November 2012.

Engagement is ongoing for a Climate Policy Analyst to assist in the technical review of draft final reports and other information materials to ensure readiness for publication. Also ongoing is the engagement of a Project Coordinator to assist in the preparations and conduct of the regional consultation workshop.

Geographical Location South Asia (Bangladesh, Bhutan, India, Maldives and Nepal)
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation The R-PATA conducted the First Regional Consultation Meeting on 10-11 May 2010 in Bangkok, Thailand attended by government representatives from the participating countries. Interim National Consultation Workshops were held from May to July 2012 and were attended by experts from the government, local institutional partners, research institutions and NGOs from the participating countries. The Second Regional Consultation Meeting will be organized in November 2012 to present the study findings to the different stakeholders.
Business Opportunities
Consulting Services The TA will require 40 person-months of individual international consulting services and another 35 person-months of individual national consulting services. The consultants will be engaged in accordance with ADB Guidelines on the Use of Consultants. In addition, the TA will engage administrative supporters on an as-needed basis.
Responsible ADB Officer Mahfuzuddin Ahmed
Responsible ADB Department South Asia Department
Responsible ADB Division Regional Cooperation and Operations Coordination Div, SARD
Executing Agencies
Asian Development BankCuong Minh Nguyen6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 21 Aug 2009
Fact Finding 14 Aug 2009 to 27 Aug 2009
MRM -
Approval 07 Dec 2009
Last Review Mission -
PDS Creation Date 24 Sep 2009
Last PDS Update 01 Oct 2012

TA 7423-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2009 - 07 Dec 2009 31 Dec 2011 31 Mar 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 07 Dec 2009 774,321.88

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