Mapping and inventory of the access and use of climate change related financing in the Eastern Southern African - Indian Ocean region REPORT

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Mapping and inventory of the access and use of

climate change related financing in the Eastern

Southern African

-

Indian Ocean region

REPORT

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11.Conclusion ... 79 ANNEX 1 Terms of Reference of the consultancy ... 80 ANNEX 2 List of persons met ... 85 ANNEX 3 Terms of reference of the regional workshop climate change finance .. 93 ANNEX 4 List of projects financed in the IOC region and Tanzania by dedicated climate change funds monitor by Climate Change Funds update org ... 98 ANNEX 5 list of assistance available under the European Development Regional Fund ... 103 ANNEX 6 Bibliography ... 109

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Acronyms

AF Adaptation Fund

AFD Agence Française pour le Développement

AfDB African Development Bank

AOIS Alliance Of Small Islands States

AU African Union

BPoA Barbados Plan of Action

CAADP Comprehensive Africa Agriculture Development Programme

CBD Convention for Biological Diversity

CBO Community Based Organisation

CCCCC Caribbean Community Climate Change centre (CCCCC)

CDM Clean Development Mechanism

CTF Clean Technology Fund

COMESA Common Market for Eastern and Southern Africa

COP Convention of parties

CORDIO Coral Reef Degradation in the Indian Ocean

CR Réunion Conseil Régional Réunion

CSR Corporate Social Responsibility

DFID Department For International Development

DOE Department Of Environment

EAU Eastern Africa Union

EDF European Development Fund

ERDF European Regional Development Fund

EU European Union

EEZ Exclusive Economic Zone

ETF Environmental Trust Fund

FAO Food and Agriculture Organization

FFEM Fond Français pour l‟Environnement Mondial FIP Forest Investment Program

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FCPF Forest Carbon Partnership Facility

GCCA Global Climate Change Alliance

GEF Global Environment Facility

GEEREF Global Energy Efficiency and Renewable Energy Fund

GHG Greenhouse Gases

GLISPA Global Island Partnership

GM Global Mechanism

GNI Gross National Income

IDC Islands Development Company

IFAD International Fund for Agricultural Development

ICZM Integrated Coastal Zone management

IOC Indian Ocean Commission

IPCC Intergovernmental Panel on Climate Change

IUCN International Union for Conservation of Nature

LBSA Land Based Sources and Activities

LDCF Least Developed Countries Fund

MAP Madagascar Action Plan

MID Maurice Ile Durable

NAPA National Action Programme for Adaptation

NBSAP National Biodiversity Strategy and Action Plan

NCSA National Capacity Self-Assessment

NCCC National Climate Change Committee

NIE National Implementing Entity

NGO Non-Governmental Organization

PCT Plan Climat Territoriaux

PES Payment for Environmental Services

PPCR Pilot program for climate Resilience

REDD Reductions of Emissions by Deforestation and Forest Degradation

RIE Regional Implementing Entity

RISDP Regional Indicative Strategic Development Plan

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SCF Strategic Climate change Fund

SCCF Special Climate Change Fund

SPREP Secretariat of the Pacific Regional Environment Programme

SIDS Small Island Developing States

SSDS Seychelles Sustainability Development Strategy

SR Seychelles Rupee

UNCBD United Nations Convention on Biodiversity

UNCCD United Nations Convention to Combat Desertification

UNDP United Nations Development Programme

UNEP United Nations for Environment Programme

UNESCO United Nations Educational, Scientific and Cultural Organisation

UNFCCC United Nations Convention on Climate Change

USD United States Dollar

WB World Bank

WCS Wildlife Conservation Society

WIO-C Western Indian Ocean Consortium

WIO-CC Western Indian Ocean Coastal Challenge

WIOMSA Western Indian Ocean Marine Science Association

WHO World Health Organisation

WTO World Trade Organisation

WWF World Wildlife Fund

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Executive Summary

The countries of the Indian Ocean Commission (IOC) region1 and Zanzibar are highly vulnerable to climate change and variability. The region‟s coastal and marine resources and the communities that depend on these resources for food, water and livelihoods are particularly sensitive to climate impacts. Climate impacts are air and sea surface temperature increases, precipitation changes, increasing frequency and severity of extreme weather events, as well as sea level rise which already affect the main economical sector of the islands of the region (agriculture, forestry, fisheries, tourism and public health). The IOC countries and Zanzibar are already facing numerous challenges in managing coastal and marine resources because of increasing levels of pollution, unsustainable and damaging land-use practices, excessive fishing and water scarcity. These challenges are exacerbated by climate change.

Recognising the crucial importance of these challenges the IOC countries and the Untied Republic of Tanzania for Zanzibar have ratified the three United Nations environmental conventions (so-called Rio conventions) the United Nations Framework Convention for Climate Change (UNFCCC), the United Nations Convention to Combat Desertification (UNCCD) and the Convention for Biological Diversity (CBD)) in the 1990s. Action plans and strategies have been produced but their implementation remains limited due to lack of financial capacity.

In this context, the projects ISLANDS and ACClimate of the IOC and the Global Mechanism signed a cooperation agreement in order to develop the capacity of the IOC countries and Zanzibar to mobilise additional climate change funding. The objectives are to use existing sources and instruments more efficiently and to mobilise new and additional resources through the creation of an enabling environment.

The mapping of existing internal, external and innovative sources of climate change funding within the IOC countries and Zanzibar and the analysis of the institutional, policy and legal framework have highlighted the following main barriers to resource mobilisation for climate change:

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 The lack of a clear mechanism of coordination for climate change at regional level

 The lack of action plans and investment plans for the climate change adaptation strategy

 The lack of a climate change mitigation strategy

 The limited awareness and information of the key economic players (public and private) on climate change issues

 The limited technical capacity to develop, manage, monitor and evaluate climate change bankable projects

 The limited knowledge on climate change funding mechanisms

 The limited technical and financial capacity of the IOC

 The limited technical and financial capacity to effectively participate and negotiate in international and regional climate change fora

 The limited use of economic valuation of climate change in developing national development plans and the lack of integration of the capital natural in national account system

The following key elements of a road map to improve the use and access of climate finance in the IOC countries and Zanzibar are proposed:

Strategic objective 1: Improved regional enabling environment for climate change



The IOC has a defined area of intervention and a clear role of Western Indian Ocean-Costal Challenge(WIO-CC)



A regional platform on climate change is operational based on exchanges of experiences and sharing of information and expertise based on lessons learned in the Caribbean Community Climate Change Centre (CCCCC) and the Secretariat of the Pacific Regional Environment Programme (SPREP);



An action plan and investment plans are developed for the climate change adaptation strategy in the IOC member countries

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

A Climate change mitigation strategy and action plans are developed



These strategies are mainstreamed into regional development planning and budgeting of COMESA-SADC, etc.

Strategic objective 2: Strengthened mobilisation of internal sources of funding for climate change

 Key stakeholders and the public sector are sensitised with respect to climate change issues using targeted innovative education and awareness techniques

 Climate change strategies and action plans are mainstreamed into national development planning and budgeting

 The coordination and implementation framework is strengthened

 National taxes and financial incentives policy frameworks for climate change are developed

 A system to track in the national account system the flow of climate change financing is established

 Natural capital is integrated into national account systems

 National capacity in terms of environmental economic valuation is strengthened

Strategic objective 3: Strengthened mobilisation of external sources of funding for climate change

 Regional and national capacities of the IOC, government ,NGOs/CBOs ,private sector in bankable project design, management, monitoring and evaluation are strengthened

 Regional and national capacities of the IOC, government ,NGOs/CBOs ,private sector in climate change financing mechanisms (adaptation and mitigation) are strengthened

 Regional and national capacities of IOC, government ,NGOs/CBOs in negotiating skills to participate actively in international climate change fora are strengthened

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 The national and regional coordination mechanisms in terms of resource mobilisation are strengthened

 The feasibility to establish a regional climate change fund has been determined in a study

 The technical, administrative and financial capacities of the IOC are strengthened

 The possibility to combine European Development Fund (EDF) and the European Regional Development Fund (ERDF) on regional climate change initiative is determined in a study

Strategic objective 4: Strengthened the mobilisation of innovative sources of funding for climate change

 The private sector is sensitised on climate change issues using targeted innovative education and awareness techniques

 Corporate Social Responsibility among the private sector is promoted to encourage the adoption of sustainable development practices

 National governments are assisted to develop appropriate policy frameworks to encourage investment in climate change adaptation and mitigation measures

 The possibility to introduce payment for terrestrial and marine ecosystem services (carbon sequestration, coral reef services, mangroves and watershed services, etc.) to contribute to the financing of climate change adaptation and mitigation is determined in a study

 National capacities to evaluate carbon footprint of agricultural and forest land and their economic value are strengthened

 National governments are assisted to develop national legislation to regulate economic activities so that they do not adversely affect ecosystems. Any impact on the ecosystem by economic operators is mitigated by a system of compensation.

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1. Introduction

The region of the Indian Ocean Commission (IOC) is comprising of five countries, namely Mauritius, Madagascar, Seychelles, Comoros, and La Réunion (France). All IOC countries and Zanzibar are small islands and are regularly exposed to natural disasters (tsunamis, cyclones, drought, volcanic eruption), which have an impact on the population and the islands‟ ecosystems. Degradation of natural resources is caused both by natural phenomena (storms, tsunamis) and by man-made activities (water pollution, unsustainable agriculture practices, overexploitation of marine resources). These islands are also highly vulnerable to climate change impacts and climate variability such as sea level rise and intensity and frequency of rainfalls. These phenomena create a degradation of the environment which is further aggravated by anthropogenic pressure on natural resources which could jeopardise the sustainable development of these islands.

Recognising the crucial importance of the environment and appreciating the growing threats to natural resources, all IOC countries and Tanzania for Zanzibar ratified the three United Nations environmental conventions (so-called Rio conventions): the United Nations Framework Convention for Climate Change (UNFCCC), the United Nations Convention to Combat Desertification (UNCCD) and the Convention for Biological Diversity (CBD)). These Conventions aim to promote effective action to achieve sustainable development through innovative local programmes and supportive international partnerships.

The IOC countries and Zanzibar have developed national action plans for these conventions, but their implementation has been limited due to limited technical and financial capacity.

In this context, the IOC signed a convention in 2009 with the Global Mechanism (GM), a specialised body of the UN Convention to Combat Desertification that supports

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countries to mobilise financial resources and increase investments in sustainable land management, helping reverse, control and prevent desertification, land degradation and drought. The GM supports developing countries to position land as an investment priority at the national and international levels and sees a large potential in the use of climate change funding to provide additional funding for the implementation of the UNCCD.

Moreover, the IOC is implementing two projects (ISLANDS and ACClimate) funded respectively by the European Union and the Fond Français pour l‟Environnement Mondial (FFEM) which aim, amongst other objectives, to develop the capacity of the countries to access climate finance mechanisms.

This consultancy is carried out in the framework of cooperation between the IOC, the GM and the projects ISLANDS and ACClimate.

2. Objectives of the consultancy

The overall objective of the consultancy was the mapping and inventory of the access to and use of climate change related financing in the IOC region and Zanzibar to promote the sustainable use of natural resources, and the development of key elements of a road map to improve the access to climate change finance and the use of related mechanisms. In particular, the following specific objectives were achieved:

(a) The situation in IOC countries and Zanzibar with regards to the access and use of climate change related financing was analysed and

(b) The key elements of a road map to improve the access to climate change finance and the use of related mechanisms for countries in the region with a view to support the implementation of the Rio Conventions in the IOC region was developed.

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3. Methodology

The first phase of the consultancy was a desk review of existing documents and the analysis of information collected during a mission to Madagascar and the Comoros funded by the GM in August 2012.

The second phase of the consultancy was a mission in January 2013, funded by the ISLANDS project, to collect relevant information and meet relevant stakeholders in Zanzibar, Mauritius and la Réunion.

The list of the persons met during the consultancy can be found in Annex 2.

The third part of the consultancy is a regional workshop with the following objectives: 1. Presentation of the findings of the consultancy and discussion on the way

forward

2. Participation in the capacity building exercise in climate change financing organised by the GM

Detailed Terms of Reference of the regional workshop can be found in Annex 3.

The key elements of the road map to improve access to and use of climate change finance:

 Identified potential barriers to resource allocation and disbursement and highlight aspects in the policy, fiscal, legal, institutional and human resource environments that may impede the implementation of specific actions related to resource mobilisation or programme execution at national and regional level

 Recommended actions at regional level for overcoming these barriers and create an enabling environment for climate change resource mobilisation at regional level

 Identified and review the different climate change financing sources including bilateral and multilateral funding, national budgets and investments by NGOs/communities and private sector entities

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4. Analysis of climate change challenges in the IOC

countries and Zanzibar

Small islands of the Indian Ocean and Eastern Africa Region have many features in common: small size, small populations, lack of substantial natural resources, remoteness, vulnerability to natural disasters, excessive dependence upon imports, limited number of economic sectors, inaccessibility to economies of scale, high cost of transportation and communication.

These islands are especially vulnerable to climate change and the Intergovernmental Panel on Climate Change (IPCC)2 indicates with a high level of confidence that small islands will be affected by global sea level rise, which could increase coastal inundations and erosion and magnify the impact of storm surges and affect coastal agriculture. Climate change impacts on reefs and fisheries, through warming of the ocean and ocean acidification, are threats that would undermine food security and livelihoods in small islands in the region of the IOC. Changes in precipitation will also affect the availability of water which will affect the population, key economic sectors such as tourism and agriculture, and biodiversity. Climate change will also have a direct impact on human health.

4.1 Comoros

The Union of Comoros consists of the three islands Grande Comore(1148 km2), Anjouan(424km)and Moheli(290km2,) covering an area of 18623 km² . The distance between the islands is between 30-40 km.These islands are separated by deep trenchThe total population is 753 9004 with a density of 300 habitants per km² . Most agglomerations and 41% of the population of the country lie on the coastal area. Comoros is a least developed country with a GNI per capita of 1,079 USD5 in 2011.

2

IPPC, 2007 3

Mayotte ,French department forms part of the archipelago of Comoros but it is not cover by this study 4_{World Bank statistics, 2011}

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Comoros is vulnerable to climate change. Preliminary findings indicate that the temperature has risen by 1°C since 1960, rainfall has diminished, the sea level has risen by 0.4 mm per year and the frequency of cyclones has increased.

The most important factors of climate change vulnerability are the following6: (i) most of the population lives in towns in coastal areas; (ii) most of the infrastructure is located in areas with less than 6m of elevation; (iii) the traditional habitat made of straw and daub does not resist well to extreme weather events; (iv) the country is dependant on the agricultural and fishery sectors; and (v) food insecurity exists and access to drinking water is problematic.

Climate change impacts are currently being seen. The combination of intense and irregular rainfall, pronounced dry seasons and high temperatures have already a negative impact on agricultural production and are responsible for the degradation of agricultural land. The change in rainfall patterns has exacerbated the water scarcity in Comoros. Climate change also has a negative impact on the artisanal fishing sector because of bleaching of the coral reef sensitive to sea temperature rise. The increase in temperature will multiply the occurrence of malaria and other vector-borne diseases in the highlands.

The inventory of the country‟s greenhouse gas (GHG) emissions7

showed that the annual emission volume (all direct greenhouse gas emissions combined) were 1.3 million teCO2 in 1994. 58.9% of emissions are due to change of land use and 35% to

agriculture. The contribution of energy in this emission is only 5%.

4.2 Madagascar

Madagascar covers an area of 600 000 km² and has 5 000 kilometres of coastline with a population of 21.3 million inhabitants8. It is a least developed country with a GNI per capita of 824 USD9 .

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Communication nationale initiale, Convention Cadre des Nations Unies des Changements Climatiques 2002 7_{Communication nationale initiale, Convention Cadre des Nations Unies des Changements Climatiques 2002} 8

World Bank Statistics ,2011 9

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Madagascar is highly vulnerable to climate change. This vulnerability affects especially the agricultural sector, the public health, water resources, forestry, fisheries and the coastal zones. Climate change varies from region to region. Climate change studies10 indicate that there is an increase in temperatures which is more important in the south of Madagascar, the dry season is longer on the east coast and the central highlands and rainfalls are more intense in the western part of Madagascar. The number of extremes events (cyclones, droughts, floods) has increased during the period 1994 – 2005.

This climatic variability has an important impact on the agriculture sector (change of the agricultural calendar, change of varieties cultivated). There is also a reduction of the production because of the late start of the rainy season, periods of drought during the rainy season, and hail fall which can damage the crops in certain regions.

Further, there is an impact on public health with the increase of diseases such malaria, dengue fever, chikungunia, respiratory diseases, diarrheic diseases etc. during extreme climatic events.

Madagascar‟s annual direct GHG emissions are estimated at 58 million tteCO211. CO2

emission from soils represent 70%, land use change (forest and grassland) contributing 27%. The volume of GHG emitted by energy production represents only 1.6% of national emissions.

4.3 Mauritius

The Republic of Mauritius (Mauritius) consists of two main islands, namely Mauritius and Rodrigues, and groups of islands called St. Brandon and Agalega, covering of total area of 2 045 km². The population is 1.286 million inhabitants12, with a density of 654 habitants per km². Mauritius is an industrialised upper middle income country with a GNI per capita of 12,918 USD13.

10

Ministry of Environment and Forestry, Rapport sur l’état de l’environnement à Madagascar 2012 11_{Ministry of Environment and Forestry Rapport sur l’état de l’environnement de Madagascar, 2012} 12

World Bank Statistics,2012 13

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In Mauritius, the impacts of climate change are already apparent through rising sea levels (3.5mm per year)14, beach erosion, an increase in the frequency and intensity of extreme weather events, as well as recurrent floods and droughts. The principal areas of economic and environmental vulnerability to climate change include tourism, agriculture, fisheries, health and freshwater resources. The coastal zone also faces much pressure with impacts on strategic infrastructure such as hotels, restaurants, residential buildings, roads and public utilities, especially during cyclones and sea surges.The rich biodiversity of the island, especially in the coastal and marine areas, is most threatened by climate change (coral bleaching and mangrove destruction) and this is further accentuated by human-induced pressures. Increasing CO2 emissions cause

ocean acidification, thus altering the diversity of marine ecosystems.

Rainfall is the primary source of water supply for Mauritius. A decrease of 8% in rainfall, along with more frequent and severe droughts, has been noted during the period 1905 – 2007, which makes Mauritius water stressed as a result of climate change.

The agricultural sector is being impacted by climate change through altered rainfall patterns, prolonged droughts or flash floods, extreme weather events such as cyclones, decreased water availability and the increased incidence of agricultural pests and crop diseases.

Climate change is also impacting the fisheries sector with modified fisheries productivity and availability. In two occasions, between 1997 and 2008, the tuna catch declined in the Western Indian Ocean due to above average sea surface temperatures, a deeper than average thermocline and low chlorophyll concentrations.

Elderly persons, children and infants are the most vulnerable groups to be affected by increases in temperature (0.74C° between 1961 and 1990)15 coupled with high levels of humidity. Moreover, Mauritius‟ tropical climate and rising temperatures multiplies the proliferation and transmission of tropical vector borne diseases, while flash floods favour outbreaks of water borne diseases (e.g. Chikungunya).

14

Ministry of Environment and Sustainable Development, Mauritius Environment outlook, 2012 15

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Greenhouse gas emissions for Mauritius amount to 3.5 million teCO2 in 200916. Energy

production is the largest contributor with 60%.

4.4 Seychelles

The Republic of Seychelles has a total land area of 455 km² spread across an Exclusive Economic Zone (EEZ) of around 1.4 million km². There are 115 islands listed in the Constitution of the Seychelles. The total population is 89 70017. Mahe where 80% of the population live, has a high population density with 434 habitants per km². The country is an upper middle income country with a GNI per capita of USD 16 72918. Most of the economic activity and the population are concentrated on the narrow coastal area of Mahe.

The Seychelles is vulnerable to the effects of climate change and associated extreme events. Vulnerability characteristics such as concentration of development on narrow costal zones with an average elevation of 2m above sea level, non-resilient ecosystems and populations unprepared for such events make Seychelles sensitive to climate change impacts. Preliminary findings19 indicate that rainfall will decrease during the dry southeast monsoon which will reduce stream flows, groundwater recharge and therefore water supply; the surface air temperatures will increase the rates of evapo-transpiration and consequently reduce stream flow, ground water recharge and further exacerbate the water supply problem; the increase of the rainfall intensity will result in greater surface runoff, increased frequency of landslides and reduced water capture in existing storage facilities. During periods of extended drought, forest fires will be more frequent, posing a risk to the infrastructure and biodiversity of the islands.

The sea level rise, rising sea surface temperatures, increased tropical cyclone intensity and ocean acidification will have a negative impact on the health of the coral reef

16

Ministry of Environment and Sustainable Development Mauritius Environment outlook, 2012 17_{Seychelles National Bureau of Statistics, 2011.}

18

UNDP, Gross National Income in PPP terms (Constant 2005),2011 19

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systems which is important to the fisheries and conservation of biodiversity (biodiversity is also a major tourist attraction).

Seychelles‟ annual GHG emissions are estimated at 0.237 million teCO2 in 200020.

They are primarily due to electricity production (57%), transport (25%) and industrial and commercial activities (11%).

4.5 Zanzibar

Tanganyikan State became a republic in 1962 and the People‟s Republic of Zanzibar was established in 1964. The two foreign states formed the United Republic of Tanzania in 1964.

Zanzibar is composed of the islands of Unguja and Pema. The Population of Zanzibar is around 1.3 million and the archipelago is densely populated, with about 518 habitants per km²21, on a total area of 2 654 km² (Unguja 1 666 km², Pema 988 km²). The United Republic of Tanzania is a least developed country with a GNI per capita of USD 1 328 in 201122. Zanzibar‟s economy is very dependent on the climate and a large proportion of GDP, employment and livelihoods are associated with climate sensitive activities. The population and the economic activities are concentrated in the costal zones. These areas are at risk from future sea-level rise and storm surge, as well as from coastal erosion. The coastal areas of Zanzibar are already vulnerable to coastal erosion, flooding and salt water intrusion in water supplies. Strategic infrastructure such as major new port developments, hospitals, tourism establishments etc. may be at risk from climate variability23.

Coastal and marine ecosystems are the backbone of Zanzibar‟s economy and support a very large number of livelihoods on the islands. Sea level rise, rising sea surface temperatures, extreme weather events and ocean acidification will have a negative impact on the health of the coral reef, sea grasses bed and mangroves which are

20

Seychelles National Greenhouse Gas Mitigation Options report, 2008 21

Tanzania in figure , National Bureau of Statistics of Tanzania,2012

22_{UNDP , United Republic of Tanzania, Gross National Income in PPP terms (Constant 2005),2011} 23

Revolutionary government of Zanzibar, Socio economic data and climate screening of programmes and development plans. technical report ,volume 3 The economics of climate change in Zanzibar,2012

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important to the fisheries, seaweed harvesting and the conservation of biodiversity, the latter being important for the tourism sector. There was mass bleaching of many of Zanzibar‟s coral reefs during the 1998 El Niño event, which was reported to have led to a large economic loss for the tourism industry. Shallow seaweed harvesting is an important activity in Zanzibar, supporting livelihoods. Seaweeds are dying off along the coast of Tanzania, including Zanzibar, because of the sea surface temperature rise. The agriculture sector is also very climate-sensitive. The agricultural production (e.g. clove production) is at risk from greater climate variability such as temperature increase (estimates indicate that temperatures will increase by 1.5-2°C by 205024, change of rainfall frequency (trends indicated an increase of rainfall during the wet season and a decrease of rainfall during the dry season) and an intensification of extreme events. Climate change has an effect on public health with periodic outbreaks of diseases (malaria and cholera) during extreme weather events (floods and droughts).

The climate variability with change in rainfall patterns with more frequent droughts has intensified, the water scarcity.

Zanzibar‟s annual GHG emission was estimated in 2010 at 0.763 million teCO2. They

are due to electricity production (39%), agriculture (28%), forestry ( 29%) and waste (4%).25

4.6 La Réunion

La Réunion is a French department and an European Union ultra-peripheral territory. La Réunion covers a total area of 2 512 km2 with a population of 839 480 inhabitants26 and has a density of 312 habitants per km2. It has a high level of economic development

24

Revolutionary government of Zanzibar, Projection of climate change and sea level rise for Zanzibar ,volume I The economics of climate change in Zanzibar,2012

25_{Revolutionary government of Zanzibar ,The economics of climate change in Zanzibar , draft final summary} report ,2012

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with France having a GNI per capita of USD 30 462 in 201127. 82%of the population and the majority of economic activities are concentrated in the coastal zones.

An analysis of historical climate data28 indicates that during the next century:

• The rainfall will vary from - 2 to +20% with more extreme events and dryer winter months

• The sea level will rise from 20 to 60cm by 2100

• The Mascareignes anticyclone will be strengthened which will generate stronger wind during the austral winter and

• Cyclones might become less frequent but more intense with associate rainfalls. The disasters and risks are the major challenge for la Réunion concerning climate change29. Landslides will need special attention and monitoring in the mountains. Flooding and sea surges will be more frequent in coastal areas and infrastructure might be at risk during extremes events.

The diminution of rainfall during the winter will exacerbate the existing water scarcity situation in specific areas and will have an impact on the hydropower sector.

The sugar cane is the main agriculture production.The sugar cane is more resilient to climate change being less sensitive to the increase of the atmospheric CO2 .It is as

well relatively easy to create varieties adaptated to different climate conditions.

Coral reefs will be highly vulnerable to sea temperature rise and ocean acidification. These will have an impact on traditional fisheries, beach protection, tourism and marine biodiversity.

Climate change in la Réunion will also have an impact on public health with more frequent outbreaks of diseases such as the chikungunya. Such outbreaks might also have a major impact on the tourism sector.

27_{UNDP , France Gross National Income in PPP terms (Constant 2005),2011} 28

Météo France, 2008 29

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In la Réunion, the GHG emissions were estimated at 4.3 million teCO2 in 2008. They

mainly come from electricity production (44%) and land transport( 29%)30. France and la Réunion are committed to reduce GHG emissions by 75% by 2050.

Despite different situations among the IOC countries and Zanzibar (different level of development, different size of population and territory), all IOC countries are already feeling the impacts of climate change and share common threats related to climate change. Climate change will severely affect the marine and coastal ecosystems of the Western Indian Ocean States. Coral reefs will be affected by rising sea temperature, the mangroves by flooding, sedimentation and a rising sea level, and water resources by rainfall change and rising temperatures. These ecosystems provide invaluable goods and services for communities living in coastal areas. The agriculture, fisheries and tourism sectors, which are the pillars of the economy of the IOC countries and Zanzibar, will be severely affected.

5. Analysis of the Institutional, Policy and Legal

Framework

The countries of the IOC and Zanzibar are members of several international and regional organisations which have developed policies and strategies related to climate change and natural resources management.

5.1 International and regional level

5.1.1 The

Indian Ocean Commission

The IOC is an intergovernmental organisation founded in 1984 and based in Mauritius. The five member countries are France (La Réunion), Comoros, Madagascar, Mauritius and Seychelles. Its mission is to strengthen links between the peoples of its member states and improve their standard of living, promoting cooperation in a number of areas: diplomacy, economy, trade, agriculture, fishing, the conservation of resources and

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ecosystems, culture, science and education. The IOC is defending the interest of island states in regional and international fora.

The IOC has limited internal financial resources (EUR 541 170 in 2011). The five member countries contribute to the budget of the IOC as follow: Comoros 6%, Seychelles 5%, Madagascar 29%, Mauritius 20%, France (La Réunion) 40%. The IOC manages a portfolio of ten regional cooperation and development programmes. The financial resources mobilised in 2011 were EUR 12 million for a total amount of EUR 83 million over a period of several years.

The IOC is currently implementing five regional projects related to climate change and sustainable land management as indicated in table 1 below.

Project title Period Source of funding

Amount in Million Euro

Climate Change Adaptation (ACClimate)

2008-2012 FFEM

MAEE

CR REUNION

3.6

Agro ecology regional initiative climate change (IRACC)

2009-2012 IFAD 0.75

ISLANDS : Small Island developing states (SIDS)

2011-2013 EU 10

Risks and disasters management, 2012-2015 AFD 2

management of the biodiversity in islands, marine and coastal areas in coastal states of Eastern Africa and Indian Ocean (Comoros, Madagascar, Maurice, Seychelles, Tanzania,

Kenya)

2013-2017 EU 15

Renewable energy development and energy efficiency improvements in Indian Ocean Commission Member States

2013-2017 EU 15

Table 1. Programme related to climate change implemented by the IOC

The project ACClimate carried out a vulnerability study to climate change for the IOC countries and developed a framework for a regional climate change adaptation strategy

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in the IOC countries 2012 – 2020 (which not include Zanzibar). The main recommendations are the following31:

 To set up an regional climate change adaptation observatory which would have the objective to capitalise, harmonise and disseminate the data and information to allow a better understanding of climate change forecasting models at regional and national level

 To set up a regional resource centre for climate change adaptation based on national services which aims at promoting the use of existing or emerging resources through synergies with the projects and actions taking place within the IOC region. The main mission would be :

 Information and communication

 Communication and awareness campaign

 Training and education

 Advice and expertise for public and private policy makers

 Capitalisation and distribution, dissemination

 Scientific monitoring of innovation and experimentation of alternative solutions

 To ensure the regional coordination and governance by the IOC

The framework for a regional climate change adaptation strategy in the IOC countries 2012 – 2020 was approved by the Council of Ministers of the IOC in January 2013. The European Union is the main funding agency of the IOC with 68% of the total financial resources for projects. The IOC has also developed partnerships with international and regional organisation like l'Agence Française de Développement (AfD), the African Development Bank, the World Bank, La Réunion, several United Nations agencies (UNDP, UNEP, UNESCO, UNICEF, WHO, IFAD).

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IndianOcean Commission, Framework for the regional climate change adaptation strategy in the IOC members countries 2012-2020,2012

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However, due to its limited internal financial resources, the IOC has often difficulties to find co-financing required by some funding agencies for the development of regional projects.

The IOC would like to put in place specialised units for priority areas identified by member countries to insure the sustainability and the efficiency of actions. However, this will require more financial resources from member countries.

It is important to note that the IOC is in the process of improving its administrative and financial procedures to meet international standards in order to improve the management and the monitoring of its projects. At present, the IOC has follow the administrative and financial procedures of each donor agencies as its internal procedures do not meet international requirements.

The IOC is playing a key role in international and regional fora (COMESA, SADC etc.), to create an enabling environment for increased investments in the region to combat land degradation, adapt to climate change, protect agriculture production and, more in general, promote the protection of the environment and natural resources. The IOC has recently obtained the status of observer in the UNFCCC and two Memoranda of Understanding were signed at the Sustainable Development Conference Rio+20 in 2012 between the IOC, The Caribbean Community Climate Change centre (CCCCC), the Secretariat of the Pacific Regional Environment Programme (SPREP; one of their main objectives being the enhancement of SIDS‟ access to the international climate finance).

5.1.2 Western Indian Ocean Coastal Challenge (WIO-CC)

The Governments of the Indian Ocean islands and coastal eastern and southern Africa (Comoros, France-Réunion, Kenya, Madagascar, Mauritius, Mozambique, Seychelles, and Zanzibar) have signed a range of international and regional agreements, projects and activities that address issues including climate change, biological diversity conservation, desertification and sustainable development. The Western Indian Ocean Coastal Challenge (WIO-CC) launched in October 2012 will build on this to ensure that momentum is created for implementation of these agreements over a long time scale.

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The WIO countries have developed a 20 year vision for the WIO-CC and a strategy to achieve this vision. The outline of the strategy was presented for consideration by contracting parties during COP732.

The WIO-CC is a mechanism based on exchange of experiences to coordinate and align regional projects and programmes which aim to secure coastal economies in the face of climate change. The WIO-CC will work in close collaboration with the IOC, the Nairobi Convention and the consortium for the Conservation of Coastal and Marine Ecosystems in the Western Indian Ocean (WIO-C; see below).

It will develop a communication strategy and address the need for a resource mobilisation and sustainable finance strategy including private sector engagement. The WIO-CC will be initially supported financially by the project ISLANDS implemented by the IOC.

5.1.3 The Nairobi Convention

The Nairobi Convention regroups ten countries of southern and eastern Africa. All IOC countries and the United Republic of Tanzania are signatories of the Convention. The Nairobi Convention for the Protection, Management and Development of the Marine and Coastal Environment of the Eastern African Region constitutes the current regional legal framework for the protection of marine and coastal resources. The protocol on Land Based Sources and Activities (LBSA) was adopted in 2010 and a protocol on Integrated Coastal Zone management (ICZM) was adopted in 2012.

In this framework, the Consortium for the Conservation of Coastal and Marine Ecosystems in the Western Indian Ocean (WIO-C) was launched in 2007 with the mission to achieve a healthy marine and coastal environment which sustainably supports people‟s livelihoods in the WIO-region. Founding members of the WIO-C include International Union for Conservation of Nature (IUCN), Wildlife Conservation Society ( WCS), Western Indian Ocean Marine Science Association (WIOMSA), World Wildlife Fund( WWF), Coral Reef Degradation in the Indian Ocean (CORDIO), Indian Ocean Commission( IOC), Intergovernmental Oceanographic Commission of the United

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Nations Educational, Scientific and Cultural Organisation( IOC-UNESCO), New Partenrship for Africa‟s Development Coastal and Marine Sub Programme ( NEPAD COSMAR).

5.1.4 The Common Market for East and Southern Africa (COMESA)

Founded in 1994, COMESA is group of 19 countries (including all the IOC countries but without the United Republic of Tanzania). Its mission is to “achieve sustainable economic and social progress in all Member States through increased co-operation and integration in all fields of development particularly in trade, customs and monetary affairs, transport, communication and information, technology, industry and energy, gender, agriculture, environment and natural resources”.

COMESA is implementing the Comprehensive Africa Agricultural Development Programme (CAADP), which is an initiative of the African Union (AU) and the New Partnership for Africa‟s Development (NEPAD).

CAADP has five strategic components and fully integrates climate change issues:

 Land and water management

 Market access

 Food supply and hunger

 Agriculture research

CAADP is mobilising external funding channelled through a multi donor Trust Fund hosted at the World Bank and aims to increase the mobilisation of public financial resources for the agriculture sector by 10% based on results of national round table. In 2011, of all IOC countries only Seychelles signed the CAADP country compact agreement. Seychelles is now in the process of preparing its investment plan. Comoros and Madagascar are in the process of developing the CAADP country compact agreement. The United Republic of Tanzania signed this agreement in 2010 and developed investment plans and a post CAADP country compact agreement road map.

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COMESA is implementing a programme entitled “Climate Change Adaptation and Mitigation in the Eastern and Southern Africa (COMESA-EAC-SADC) Region”. The Programme Management Unit is composed of the Tripartite Coordination Secretariat and the Climate Change Unit in COMESA, East African Community (EAC) and SADC.

The programme‟s objective is to address impacts of climate change in the COMESA-EAC-SADC region through successful adaptation and mitigation actions which also build economic and social resilience for present and future generations.

The purpose is to enable COMESA-EAC-SADC member states to increase investments in climate resilient and carbon efficient agriculture and its linkages to forestry, land use and energy practices by 2016.

The specific objectives are:

 To contribute to the adoption of key elements of the African Climate Solution and mainstreaming of climate change in national planning

 To support member states to access adaptation funds and other climate change financing sources and mechanisms through national investment frameworks for climate adaptation in agriculture, forestry and other land uses

 To enhance the adoption of climate-smart conservation agriculture in the COMESA-EAC-SADC region

 To strengthen the capacity of national research and training institutions and the implementation of research programmes

 To implement climate vulnerability assessments and analyses

 To apply mitigation solutions in the COMESA-EAC-SADC region with carbon trading benefits

 To establish a regional catalytic facility to support investments in national climate-smart agriculture programs.

The Global Mechanism is assisting COMESA to mobilise financial resources for the programme.

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Several partners have contributed financial support to the programme. The EU committed EUR 4 million, Norway signed a grant agreement with COMESA of USD 20 million and DFID (UK) committed GBP 38 million.

5.1.5 Southern African Development Community (SADC)

SADC has 15 member countries. The United Republic of Tanzania and all IOC countries except Comoros are members. The SADC mission is to promote sustainable and equitable economic growth and socio-economic development through efficient productive systems, deeper co-operation and integration, good governance and durable peace and security, so that the region emerges as a competitive and effective player in international relations and the world economy.

The strategic sectors of intervention are:

 Trade, industries, finance

 Infrastructure and services

 Food security, agriculture, natural resources

 Human and social development

SADC has developed a Regional Indicative Strategic Development Plan (RISDP) which is designed to develop harmonised policy and regulatory frameworks to promote regional cooperation on all environmental issues and natural resources management including trans-boundary ecosystems. SADC is also developing a Regional Infrastructure Development Master Plan, RIDMP (2013 – 2027). Climate change is an important issue for SADC which is implementing the regional programme described in the above section.

5.1.6 The Alliance Of Small Islands States (AOSIS)

The Alliance Of Small Islands States (AOSIS) was founded in 1992 and has taken a leading role in promoting the interests of small island states with regard to global climate change. AOSIS was also instrumental in the organisation of two Global Conferences on the Sustainable Development of Small Island Developing States, the first held in

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Barbados in 1994 and the second in Mauritius in 2005. AOSIS is a lobby group within the Group of 77.

5.1.7 The Global Island Partnership

The Global Island Partnership (GLISPA) assists islands in addressing one of the world‟s greatest challenges, namely to conserve and sustainably utilise the invaluable islands‟ natural resources that support people, cultures and livelihoods in their island homes around the world. It brings together island nations and nations with islands (small and large), developing and developed, to mobilise leadership, increase resources and share skills, knowledge, technologies and innovations in a cost-effective and sustainable way that will catalyse action for conservation and sustainable livelihoods on islands. In this framework, GLISPA is supporting the Western Indian Ocean Coastal Challenge (WIO-CC), which is proposed as a platform to galvanise political, financial and technical commitments and actions at regional and national levels on climate change adaptation, promoting resilient ecosystems (marine and coastal resources) and sustainable livelihoods and human security.

5.1.8 World Trade Organisation (WTO)

Madagascar, Mauritius and the United Republic of Tanzania are members of WTO since 1995. Comoros and Seychelles are observers. With respect to trade and the environment, members can adopt trade-related measures aimed at protecting the environment.

The strategic sectors of intervention are:

 Trade, industries, finance

 Infrastructure and services

 Food security, agriculture, natural resources

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It is important to mention the Enhanced Integrated Framework, a multi donor programme which helps least developed countries play a more active role in the global trading system. The programme has a wider goal of promoting economic growth and sustainable development and helping to lift more people out of poverty. One of the objectives is to mainstream trade into national development strategies.

Comoros is implementing a project since 2008 that aims to enhance the capacities of trade and investment support services, in order to create a conductive environment for private sector development especially in the tourism sector.

Madagascar is implementing two projects: “Enhancement of trade capacity” and “Export development support”. Trade priorities have been mainstreamed into the Poverty Reduction Strategy Paper and in the Madagascar Action Plan.

The United Republic of Tanzania has integrated all recommendations of the Diagnostic Trade Integration Study in the 2005 – 2010 Poverty Reduction Strategy Paper and the National Strategy for Growth and Reduction of Poverty. A Trade Integration Strategy 2009 – 2013 Framework Programme was developed and a road map of implementation is being developed for Zanzibar.

The regional organisations IOC, the Nairobi Convention, COMESA and SADC provide a policy and institutional framework which gives an opportunity to enhance regional cooperation and increase regional, national technical and financial capacity for climate change adaptation (mitigation) and sustainable management of natural resources. Lobbying groups such as AOSIS and GLISPA for small islands states are important global initiatives. Global and regional initiatives should complement and strengthen national programmes for climate change adaptation (mitigation) and sustainable management of natural resources.

However, it is important to note that technical and financial partners are now starting to work with larger regional groups of countries such as COMESA-SADC-EAU where greater numbers of people are affected and potentially larger results achieved. In this context,island states of the WIO are disadvantaged relative to continental countries. To

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overcome this barrier, WIO countries will need to demonstrate that climate impacts have important consequences for the region. The IOC countries and Zanzibar must quickly position themselves in this regional architecture if they do not want to be marginalised.

At the moment, regional programmes in the IOC countries and Zanzibar are often limited because:

 The IOC countries and Zanzibar have specific characteristics of small islands states and have difficulties to be integrated in the problematic of larger African countries

 The IOC countries and Zanzibar have limited financial and technical capacities to participate actively in the different processes of negotiations in the international and regional fora

 The IOC has a limited capacity in terms of coordination, management monitoring and formulation of programmes

 The situation in IOC Countries and Zanzibar is heterogeneous (land areas, population and level of economic development) and it is difficult to find a synergy between the countries even if all countries are vulnerable to climate change

Small Islands States and Least Developed Countries are now granted special international status in terms of mobilisation of funding for climate change (adaptation and mitigation) .This is a real opportunity for the IOC countries and Zanzibar in terms of resources mobilisation at regional and national level.

It is important that a common regional vision and position can be developed and presented to potential donors. The recent launch of the WIO-CC will allow enhancing regional coordination and cooperation. Moreover, the development of the framework for the regional climate change adaptation strategy in the IOC countries (2012 – 2020) takes into account the specificity of small islands in order to respond to climate change impacts and ensure a better utilisation of technical and financial capacity where it is necessary. The development of a regional financing strategy for climate change will complement these initiatives and help to mobilise additional financial resources.

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5.2 National level

5.2.1 Comoros

Between 1994 and 1998, Comoros ratified the United Nations Framework Convention on Climate Change (UNFCCC), the Convention on Biological Diversity (CBD) and the United Nation Convention to Combat Desertification (UNCCD).

In accordance with the UNFCCC and with the support of the Global Environment Fund and UNDP, the first national communication was prepared in 2003 and a National Action Plan for Climate Change Adaptation was prepared in 2006. The second national communication is currently being developed. Comoros has integrated climate change adaptation into the National Strategy for Growth and Poverty Reduction (2010 – 2014) . A strategic programme framework 2011 – 2016 Climate Change-Natural Environment- Disasters and Risks Reduction was elaborated.

The main programmatic components under climate change are:

 Sustainable land management

 Integrated water resources management

 Integrated costal zones management

 Establishment of an enabling environment for resources mobilization

 Strengthening of national capacities at all levels

 Integrated waste management

 Development of clean energy

 Climate change adaptation for agriculture

 Public health and climate change

The UNFCCC focal point is based in the Ministry of the Production, Environment, Energy, Industry and Handicraft.

The Government of Comoros has recently created the National Commission for Sustainable Development which will prepare the sustainable development strategy. The

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commission will strengthen the coordination mechanisms and the processes of inter-sectoral consultations and will be responsible for resources mobilisation.

However, despite the existence of a policy, legal and institutional framework, the implementation of environmental strategies and programmes remain limited. The National Capacity Self-Assessment (NSCA) was conducted in 2009 and assessed national capacity for implementing Comoros obligations under the UNFCCC, CBD and UNCCD.

The main constraints identified to implement the UNFCCC and the other Rio conventions were33:

 National plan and national strategies are often not updates and do not reflect the evolution of the needs

 Sectoral policies do not integrate enough the environmental issues

 The legal framework is incomplete and does not take into consideration international obligations

 There is a lack of high level coordination and consultation mechanisms

 Poverty is putting pressure on the environment

 Institutions are not efficient

 There are limited financial and human resources

 Scientific research is not integrated into development priorities

 There is lack of reliable data

 There is lack of awareness and information of the key economical players on climate change and environmental issues

 There is limited knowledge on climate change funding mechanisms

5.2.2 Madagascar

Madagascar ratified the CBD in 1993, the UNCCD 1997, the UNFCCC in 1998 and the Kyoto protocol in 2003.

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In accordance with the UNFCCC, the Government of Madagascar prepared34 :

 The Initial Communication in 2003, the Second Communication in 2010 and is now in the process of preparing the Third Communication

 A national action plan for climate change adaptation in 2006 with 15 priority programmes

 A national strategy for the Clean Development Mechanism (CDM)

In 2011, the national climate change policy identified five strategic components: (1) strengthen climate change adaptation actions based on real needs of the country; (2) implement mitigation climate change actions which contribute to the development of the country; (3) integrate climate change at all levels; (4) develop sustainable financing mechanisms; and (5) promote the research, technology development and transfer and adaptive management.

In 2010, a climate change division was created within the Ministry of Environment and Forestry. The designated authority for CDM is also based in the climate change division. A climate change thematic group was as well formed.

For the period 2006 – 2012, the Madagascar Action Plan (MAP) is the document of reference for all development initiatives programmed by the Government of Madagascar. The sectoral policies and strategies such as agriculture, fisheries, livestock and environment were elaborated and formulated based on the orientations defined within the MAP.

The National Programme for Rural Development, formulated in 2008, is the reference document for rural development and analyses the factors of rural poverty.

The Government of Madagascar has as well adopted the environment programme III in 2008 which includes the followings strategic programmes:

 Implementation of the sustainable development programme

 Sustainable management of forestry resources

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 Conservation and valorisation of the biodiversity in protected areas

 Integrated management of costal and marine areas

 Change of behaviour concerning the environment

 Sustainable financing mechanism

 Improve of environmental governance

Madagascar has also developed a national strategy for the Clean Development Mechanism (CDM) and has identified five priorities sectors, namely renewable energy, biocarburants, energy efficiency, waste and forestry.

Within the existing policy, legal and institutional framework, the implementation of environmental strategies and programmes remain limited in Madagascar.

The main constraints to implement the UNFCCC and the other Rio conventions are the following:

 The political crisis is the main constraint to financial resources mobilisation. Many partners have suspended their assistance programmes

 There is a stagnation of overseas development assistance due to the international economic crisis

 There is lack of exchange and coordination at national and regional levels

 The institutional framework is not integrated and decentralised enough to respond to environment challenges

 The legislation is not adapted to reality

 The administrative procedures of financial partners are slow and complex

 The limited internal financial capacity of the government does not allow a control of national environmental policies

 It is difficult to prioritize in period of crisis

 There is limited capacity in terms of management, monitoring and evaluation of projects

 There is a lack of technical capacity to negotiate in international fora

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 There is a lack of valorisation of the results of research

 There is a lack of awareness and information on climate change issues of the key economical players

 There is limited knowledge of climate change financing mechanisms

5.2.3 Mauritius

The Republic of Mauritius ratified the three Rio Conventions (CBD 1992, UNFCCC 1992, UNCCD 1994) and signed the Kyoto Protocol in 2001.

The first Climate Change Action Plan was developed in 199835, detailing sectoral responses for water resources, waste management, agriculture and forestry, fisheries, coastal zone management, energy planning and transportation. This was followed by the publication of the Initial National Communication under the UNFCCC in 1999. The Second National Communication is being finalised.

The National Climate Committee was set up under the aegis of the Prime Minister‟s Office in June 1991. Co-chaired by the Mauritius Meteorological Services, the National Climate Committee is responsible for developing national GHG inventories, evaluating climate change impacts, formulating climate change mitigation and adaptation programmes and promoting research, education and awareness on climate change. A Climate Change Division has been set up at the Ministry of Environment and Sustainable Development in 2010.

The Designated National Authority for the CDM is hosted by the Ministry of Environment and Sustainable Development and CDM procedures have been promulgated in 2010. In 2007, The Republic of Mauritius has adopted, as the long term vision for promoting sustainable development, the “Maurice Ile Durable (MID)” concept. The government is in the process of developing a MID policy, a 10 year strategy and an Action Plan to pave the way for sustainable development in Mauritius. A MID fund was also

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established for the preservation of natural resources and for the promotion of renewable energy, energy efficiency and conservation.

Mauritius has a policy, institutional and legal framework for climate change but the implementation of actions remains limited36 .

The main constraints identified were:

 Limited national studies on climate change impacts, vulnerability and risk assessment

 Lack of assessment of economic risks posed by climate change

 Lack of comprehensive and dedicated legislation to climate change

 Limited coordination to implement the Climate Change Action Plan

 Lack of technical and financial capacity for climate change adaptation and mitigation

 Lack of awareness of climate change issues in the public and private sector

 Lack of knowledge of financing mechanism for climate change

 Lack of a sustainable financing strategy for climate change

5.2.4 Seychelles

Seychelles ratified the UNFCC in 1992, the Kyoto Protocol in 2002, the UNCCD in 1997 and the CBD in 1992. A National Climate Change Committee was set up in 1992. In 2000, Seychelles submitted its Initial National Communications as a Non-Annex 1 country, with the support of the GEF. The Seychelles‟ Second National Communication was completed and submitted in 2011. In 2009, Seychelles launched its National Climate Change Strategy (NCCS).

The strategic priority objectives proposed are37:

 To advance the understanding of climate change, its impacts and appropriate responses

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Government of Maurtius ,National synthesis report RIO+20, 2012 37

Mapping and inventory of the access and use of climate change related financing in the Eastern Southern African - Indian Ocean region REPORT