Strategies for Climate Resilience and Sustainable Growth by Virtuelle Akademie

Strategies for Climate Resilience and Sustainable Growth

Table of Contents 4

Foreword: Wolf-Dieter Zumpfort

I. Tackling Climate Change with Market-Based Instruments: Can Emerging Economies and Industrialized Countries Jointly Achieve a Breakthrough?

Gabriel Quadri de la Torre: Tackling Climate Change with Market-Based Instruments Market Mechanisms in Emerging Economies and Developing Countries Kátja Abreu: Stopping Deforestation: The Agriculture and Livestock Confederation in Brazil Thomas Koenen: The Challenge of Climate and Change Walter Hirche: Common Understanding in Times of Climate Change Chito Gascon: Action Plans to Prepare for Natural Disasters Political Economy and Innovation Valerie Bockstette: On the Concept of Shared Value Barun Mitra: Competition is Innovation – Putting India’s Economy into Perspective Gunnar Still: Innovative Products for Environmental Goals

II. Adapting for Tomorrow Opportunities and Risks of Climate-Resilient Growth Sir Graham Watson: Adapting for Tomorrow Paula Baker: Climate Change Being Close to our Citizens Lessons Learned? Past Experience of Adaptation Julian Morris: Win-Win or Lose-Lose: Which Policy to Address Climate Change? Gullög Nordquist: Proof from History – How Do Humans Adapt to Changes in Environment? Sectoral Case Studies Pier Vellinga: Making Climate-Proof Oliver Blank: Smart Cities – How to Become a Smart City? Frank Raes: Climate Action as Development Konar Mutafoğlu: Perspectives of a Bilateral Financing Institution Global Capacities and Constraints Rob Swart: Europe is Vulnerable, Too Arianto A. Patunru: Cooperation on Adaptation and Mitigation – Southeast Asia Carlos Muñoz Piña: Smart Regulation in Mexico Finance for Adaptation Paul Renier: Finance for Adaptation Strategies Axel Michaelowa: A Market Mechanism for Adaptation to Climate Change

The Public and Private Sector as Drivers of Adaptation Sandeep Chamling Rai: The Public Sector’s Stake in Reducing Vulnerability Nana Künkel: Adaptation to Climate Change – A Case for Business? Humberto Delgado Rosa: Opportunities and Risks of Climate-Resilient Growth

III. Resource Management: Transatlantic Experiences – New Ideas and Innovative Solutions for Developing Countries?

Sustainable Development Julian Morris: Property Rights and Sustainable Development Lyuba Zarsky: Can Extractive Industries Promote Sustainable Development? Maximilian Auffhammer: The Carbon Tax – Solution or Scenario? The American Debate on Energy Management Robert Holste: Clean Energy Accounts for National Security Carlton Carroll: Can Yesterday’s Energy Be Tomorrow’s Relief? Corey Johnson and Tim Boersma: The Genie is Out of the Bottle: Shale Gas in the Security Debate Water Management Rachel M. Dawson: A Question of Water Thomas W. Beauduy: Guarding the Susquehanna River Basin Joe Navari: Between Waterfowls and Water Rights – Managing Wetlands Jerry G. Schulte: Biodiversity Instead of Pollution: The Ohio River Valley Water Sanitation Commission Waste Management Anne Steinhauer: Napa Valley Vinters as an Example of Local Sustainability Practices Scott Hutchings: Conversion Technologies and a Changing Industry: Innovation, Sustainability and the Future of Waste Joe McDermott: Pioneering Resource Efficiency: From Recycling to Biosolids Heidi Sanborn: Extended Producer Responsibility – Another Polluter Pays Principle? Land Use Management Sherry Greenberg: California Land Use – The Peace Dividend and Base Closures John A. Russo: Redeveloping the Alameda Naval Station The Green Tea Party Movement Terry L. Anderson: Serving Budget Cuts and Environmental Quality

Foreword In early 2012, the board of the Friedrich Naumann Foundation approved a new strategy for our work abroad. Addressing an urgent global issue for the first time, it states: â&#x20AC;&#x153;Climate change is a global challenge with enormous economic and social consequences. For liberals especially, it implies a regulatory challenge: How are market-based incentives used to promote ecologically sensible behaviour effectively? How should the principle of liability be designed in relation to ecology? Which regulatory framework is required to achieve sensible adjustments to climate change?â&#x20AC;? At the occasion of three consecutive kick-off conferences in Berlin, Brussels, and San Francisco, experts from different backgrounds provided their insights, views and knowledge in response to these questions. At the conference in Berlin, which was co-hosted by the German Federation of Industry (BDI), we focussed on joint action between industrialised countries and emerging economies. We believe that it is essential to find common ground to mitigate carbon emissions and adapt to a changing environment. Innovation and technology in the private sector must be key elements of any roadmap that eventually leads to low-carbon markets. Our goal is coupled with encouraging efficient behaviour towards both ecology and energy usage.

In 2050, we expect a world population of about nine billion. The largest part will be most likely living in emerging economies. Understanding the emerging economiesâ&#x20AC;&#x2122; interests in achieving higher living standards, benefits of growth and social mobility, we seek to make progress in sustainable development by shifting towards renewable energy sources and built climate-resilient facilities. At the conference in Brussels, which was hosted by the Alliance of Liberals and Democrats for Europe (ALDE group) in the Committee of the Regions, the increasing role of adaptation policies was widely discussed, particularly those of infrastructure design, archaeology, water scarcity and water management. Other practical examples were geoengineering in coastal areas, floating houses and exports of floating greenhouses. The idea was to inform thoroughly about existing and future research and findings. Within this domain, we challenged the quest for adequate financial mechanisms targeted at climate resilience in regions which are highly sensitive to weather variability. In San Francisco, we dealt with the implications of water and waste management, energy security and land use planning. As mankind has already severely affected the planetâ&#x20AC;&#x2122;s ecosystem, such as environmental degradation and resource exploitation, we tried to identify most efficient alternative solutions of (natural) resources management.

Foreword At our workshop, North American examples and best practices from environmental and economic perspectives were presented with the intention of learning from their methods and of designing them further. Now, this publication is intended to highlight the key messages and present the most enlightening ideas that were given by our speakers. In Berlin, we clearly had political and economic discussions on the choice of market-based instruments for emerging economies. In Brussels, we shared scientific knowledge on adaptation and took advice of experts on the regional and global level. In San Francisco, we talked in round table format about approaches of resources management, the case of shale gas and on how to make progress for a sustainable world in future. We thank the German Federal Ministry for Economic Cooperation and Development (BMZ) for providing new funding for international dialogue on coordinated action and cooperation, aiming at mitigating carbon emissions and adapting to climate change. The conferences held have given useful input for numerous follow-up measures undertaken by the foundation and its partner organisations in emerging economies and developing countries. The Council of Asian Liberals and Democrats (CALD) and the Liberal Network for Latin America (RELIAL) are also involved in this topic. CALD has published a joint statement and RELIAL

recently organised a seminar on “Liberal Proposals by Latin America for Low-Carbon Growth and Tackling Climate Change.” This booklet is more a documentary mirroring different approaches and various angles than a coherent textbook. In addition, we have launched media live streams for the Berlin and Brussels conferences. Recordings, longer versions of our speakers’ papers and a documentary film are available at www.climate.fnst.org. I wish you all inspired reading! Potsdam, April 2012

Dr Wolf-Dieter Zumpfort Vice-Chairman of the Board of Directors, Friedrich-Naumann-Stiftung für die Freiheit

I. Tackling Climate Change with Market-Based Instruments: Can Emerging Economies and Industrialized Countries Jointly Achieve a Breakthrough? International Conference, Berlin, 23 February, 2012

Dr Gabriel Quadri de la Torre Director, Sistemas Integrales de Gesti贸n Ambiental (SIGEA), Mexico City, Mexico http://pagina.sigea.com.mx Tackling Climate Change with Market-Based Instruments Climate change mitigation policies in emerging economies should be part of a comprehensive vision of long term sustainable development, featuring as key elements: competitiveness, dynamic economic growth, energy efficiency and energy security, balanced fiscal policies, biodiversity conservation, protection of property rights and the rule of law. The most important drivers of emissions growth in M茅xico are gasoline subsidies, electricity and agriculture subsidies. Similar to this are inefficiencies within the national oil monopoly, housing policies (subsidies, and subsidized mortgages that promote urban sprawl) and potentially bio-fuels. Economic growth can either take a high or a low emissions path depending on the relative prices for energy. In turn, this depends to a large extent on the amount of subsidy and nature of tax policies. In a number of emerging economies deforestation is a major contributor to emissions and is mainly driven by agriculture subsidies, uncertainty of land property rights, weakness of the rule of law and absence of correct

Tackling Climate Change with Market-Based Instruments incentives to landowners for the production of environmental and carbon public goods. Correct and efficient climate change policies and/or policy instruments are well known. No doubt there are some special cases in which virtuous formulas may be found but broadly speaking the toolbox is quite restricted to: • Removal of gasoline, diesel and electricity subsidies. • Structural reform in energy sectors promoting private investment and competition (in México, there are state monopolies in oil and gas, and electricity). • Green fiscal reform (carbon tax – less income taxes). • Agriculture subsidies removal or their re-design as payments for environmental services and carbon related public goods. • Contracts for payment for environmental services to land owners (conservation and carbon sequestration). • Feed-in tariffs, renewable portfolio standards or renewable energy certificates for utilities. • Urban development and housing policies promoting high density and compact cities. • New and extensive protected areas in tropical regions. • Local government-federal policies towards methane capture in landfills and public transport, congestion and parking charges, etcetera. • Various policies regarding methane capture in livestock industry, WWTP, and industrial gases. • Cap and trade across selected industrial sectors.

Market Mechanisms in Emerging Economies and Developing Countries Senator Kátja Abreu Chairwoman, The Agriculture and Livestock Confederation of Brazil (CNA) http://www.ictsdclimate.org Stopping Deforestation: The Agriculture and Livestock Confederation of Brazil The Agriculture and Livestock Confederation of Brazil (CAN) is the leading organization in the agricultural sector covering agriculture, livestock, fishing, forests and rural extractive processes. With headquarters in Brasília, CAN is the main decision-making forum for Brazil’s rural producers acting in defence of framers’ rights, livestock producers and their socioeconomic interests. It represents and exerts influence on public authorities to raise support for actively developing the agriculture and livestock sector.1 Brazilian food production is a major source of income in the country. The agriculture and livestock industry accounts for 20 per cent of the GDP and 37 per cent of employment. We have taken a green development during the last 40 years. In total, only 27 per cent of the national territory is being used for agricultural production although 61 per cent of our country consists of rain forests. In 2009 Brazil voluntarily agreed at the climate conference in Copenhagen to reduce emissions by 36 per cent to 38 per cent by 2022, which was also approved by congress. By this step forward, Brazil serves as role model for Latin America. It also replaced conservative-style farming of newer techniques by shifting to high-tech in farming. Furthermore, 60 per cent in agriculture already uses the technique of direct planting on straw because ploughing the soil has always implied carbon emissions. Likewise, dry and nutrition poor land is re-natured, biomass is injected into soil and more animals can be raised per hectare. Our objective is to downsize and eventually stop deforestation, which will dramatically reduce carbon emissions. About 61 per cent of forests are protected and demonstrate a high share of protected areas in Brazil. 1 Source: ICTSD Global Platform

Tackling Climate Change with Market-Based Instruments Dr Thomas Koenen Managing Director Department of Climate and Sustainable Development BDI, Federation of German Industries, Berlin, Germany http://www.bdi.eu The Challenge of Climate and Change Which are the key factors that differentiate the climate challenge from other major issues of international concern such as the provision of food, water and energy in a growing world population, security issues etc.? Two unique features mark climate change. First, climate change is by far more complex than any other challenge mankind has ever faced and science is far from fully understanding its interrelated factors. Second, climate change as such constitutes a clear threat to mankind. Climate change cannot be a topic only being mastered by politicians and tackled by governments. Climate policy will ideally be understood as part of broader economic policies. The complex questions and challenges that come with such an understanding of economic policies can only be tackled successfully if the innovative strength of businesses is taken on board. The Federation of German Industries` (BDI) mission is to strengthen Germany as a country with broad and sophisticated industries that help facing the challenges of tomorrow.

Walter Hirche Member, The German Council for Sustainable Development / former Parliamentary State Secretary at the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Berlin, Germany http://www.nachhaltigkeitsrat.de Common Understanding in Times of Climate Change The German Councilâ&#x20AC;&#x2122;s mandate for Sustainable Development states that the â&#x20AC;&#x153;aim of having a policy of sustainable development is to establish a valuable platform for the purposes of conserving the environment and of promoting quality of life, social coherence within society as well as an integrated form of economic development both in Germany and on

an international scale. The objective behind doing so is to find a fair and even balance between the needs of the present-day generation and the perspectives of life of generations to come.” Substantial progress has actually been achieved in the last 15 years. Today it is more intensely talked about concrete policies that have to be created transparently at the national and international level. The twodegree target is an example for a top-down approach but the instruments to achieve this goal must be variable and of a market-economy nature. In the context of emerging economies some common understanding is strongly needed to balance criticism that arose when financial support for climate policies was granted because at the same time funds for global environment facilities and the Official Development Assistance (ODA) were capped.

Chito Gascon Undersecretary for Political Affairs, Office of the Political Advisor at Office of the President of the Philippines http://www.pcoo.gov.ph Action Plans to Prepare for Natural Disasters The government of the Liberal Party of the Philippines places great emphasis on the issue of climate change, particularly in pursuing adaptation and mitigation measures to respond to the impact of climate change. Given the archipelago’s geographical location in the basin of the Pacific and its densely populated coastal areas at the edge of the so-called ‘Ring of Fire’, the Philippines are highly prone to earthquakes, typhoons and volcanic eruptions. In fact, a recently released climate change vulnerability index2 which took into account 42 social, economic and environmental factors, such as exposure to climate related natural disasters, availability of natural resources, sea-level rise, adapting capacity, population patterns, level of development, ranked the Philippines 6th out of 170 countries.3 2 Maplecroft ( a risk assesment firm) 3 http://maplecroft.com/about/news/ccvi.html

Tackling Climate Change with Market-Based Instruments Actions taken to combat the threats resulting of climate change will comprise incentives, which aim at creating partnerships both at the international and national level. In 2009, the Philippine’s congress passed the Climate Change Act4 to establish a constitutional mandate and to formulate plans for preparing to natural disasters and attract foreign finance projects. Within this plan, public financing prioritizes adaptation measures to reduce vulnerability and risks to local communities, particularly targeting at the protection for the poor. At the same time, this strategy provides a policy environment to encourage the private sector to participate and optimize mitigation opportunities for sustainable development. An action plan5 has been set up to focus on seven priority areas for the next ten years. These priority areas include the promotion of climatefriendly industries and services, stabilization of the sustainable energy sector, capacity building and enhanced policies of the government that are outlined as: • Creation of green jobs and promoting sustainable consumption and production • Energy efficiency policies as well as both conservation and rehabilitation of the current energy infrastructure • Developing renewable energy sources • Enhancing public transportation • Better research and development • Capacity building on the local level

4 Republic Act 9729, enacted by the Philippine Congress on23 October 2009 5 Philippine National Framework Strategy on Climate Change adopted on April 2010

Political Economy and Innovation Valerie Bockstette Director, FSG – Social Impact Consultants, Geneva, Switzerland http://www.fsg.org On the Concept of Shared Value The concept of shared value will become a pivotal approach for the next wave of economic growth. According to the business management scholars Michael E. Porter and Mark R. Kramer 6, societal needs, not just conventional economic ones, define markets. In recent years business has increasingly been viewed as a major cause of social, environmental, and economic problems (…). This diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth (…). The concept of Shared Value (…) emphasizes the connections between business success and societal progress when companies act on three levels: • Developing new products and markets E.g. IBM no longer produces laptops but helps cities to better manage their data so that cities can use their resources more efficiently. • New understanding of resource productivity E.g. Alcoa uses aluminium as key raw material. Alcoa recognized that recycling rates in the US were not very high. Every year millions of aluminium cans are being thrown away but to Alcoa these represent a resource that is reason enough to fix the recycling problem. • Building up local clusters E.g. Audi wants to manufacture a green energy car but was hampered by a storage problem: excess wind or solar energy could not be stored, and thus not fed into production processes. If Audi, which is a car-maker, not an energy company, manages to find a solution for the storage problem, not just their problem will be solved, but society and the environment gain as well.

6 “Creating Shard Value”, Harvard Business Review, January/February 2011, http://hbr.org/2011/01/the-big-idea-creating-shared-value

Tackling Climate Change with Market-Based Instruments Barun Mitra Managing Trustee, Liberty Institute, New Delhi, India http://indefenceofliberty.org http://www.challengingclimate.org Competition is Innovation â&#x20AC;&#x201C; Putting Indiaâ&#x20AC;&#x2122;s Economy into Perspective Innovation is an illustration of personal freedom to ask questions, to explore possible alternatives, to fail repeatedly and once in a while to come up with something that is dazzling and spectacular. Innovation is also an illustration of political freedom that many of us aspire and dream of; it is not merely a problem-solving tool. With regard to economic policies, competition is more important than innovation because it unleashes energy and uncertainty, which forces every economic actor to decide on methods of innovation, such as the Indian automobile market. The Indian car market developed a policy that virtually restricts any new innovation deriving from countries like Germany. It imposes an import duty of 100 per cent to enable the support of manufacturing at home. The Indian automobile market is still very small, which means that it makes no economic sense to locally manufacture latest models, which will initially sell only a relatively few units. Every new model that is seen on the roads of Germany may take years to get to India. Indeed most new models with latest technological advances will never get to India. This is a man-made problem and is partly sustained by some of the ideas from the West that preaches the virtues of lower conservation to the masses, while protecting the special privileges of the rich and powerful. India does not need a United Nations Framework Convention on Climate Change (UNFCCC) to identify its problems. Rather than debating whether global warming is being caused by human action, the question to ask would be whether it is possible to create an environment in which every country, community or people would be able to access the best that is available at the time, adopt it, improve upon it and move on because. In the end productivity and efficiency are able to protect the environment.

Professor Gunnar Still ThyssenKrupp Steel Europe, Duisburg, Germany http://www.thyssenkrupp-steel-europe.com/de Innovative Products for Environmental Goals ThyssenKrupp Steel Europe is prepared to take precautionary measures to protect the environment and face the upcoming challenge of climate change: â&#x20AC;&#x153;On the one hand, production facilities and processes are being optimized to reduce greenhouse gas emissions to an unavoidable minimum. On the other hand the development of steel continues to ensure that its applications make an ever-increasing contribution to protecting the environment. For example, lighter steel auto bodies save more CO2 over the course of their useful life span than is generated in the production of the steel used. Modern electrical steel grades for transformers ensure 99 per cent efficiency in the conversion of energy. Numerous steel applications in the renewable energy sector such as wind and water power or in photovoltaic systems demonstrate that steel material solutions are indispensable for effective climate protection.â&#x20AC;? 7 In future more solid, thinner and endurable steel will be needed, as steel has lots of applications in concurrency to other materials and only by less weight, higher resistance and lower material price it could become the best choice. Although there is clearly prevailing need for innovative products in order to meet environmental goals, innovation in the steel sector is very costly. A trade-off exists with regard to expensive climate policies, which force companies to slow down innovation. Instead economic policies should stimulate innovation and R&D because innovation is highly linked to creativity. Cross-links unexpectedly allow us to go towards those goals to which we truly aspire.

7 www.thyssen-krupp-steel-europe.com

Tackling Climate Change with Market-Based Instruments The pioneering role of Germanyâ&#x20AC;&#x2122;s environmental agenda is not wrong but the question arises to what extent Germany seeks to move ahead in comparison to other countriesâ&#x20AC;&#x2122; progress records. With regard to climate change, Germany currently drives along a lonely road. Although the Kyoto Protocol is now being prolonged, only the European Union, Norway, Switzerland, and maybe New Zealand and Australia are willing to sign the next round, while the rest of world decided to opt out. At this stage it is important to generally reconsider whether it has a positive impact to send more money to the global level or whether it makes more sense now to invest in further innovation at the national level.

II. Adapting for Tomorrow Opportunities and Risks of Climate-Resilient Growth International Conference, Brussels, 28 February, 2012

Sir Graham Watson Member of European Parliament, President of ELDR and Chairman of the Climate Parliament, Brussels, Belgium http://www.eldr.eu Adapting for Tomorrow The likely impacts of unabated climate change are now well documented â&#x20AC;&#x201C; higher global temperatures, dwindling water resources, rising sea levels, more precarious food security, an unprecedented spread in tropical diseases and an increased frequency of extreme weather events. In sum, it will mean a hotter, drier, hungrier, sicker and more disasterprone world. As the Chairman of a global network of MPs and MEPs from all mainstream political parties campaigning to increase government investment in renewable energy and electricity supergrids called the Climate Parliament, colleagues and I are working hard to try and make climate resilient growth a reality. In addition to this, in my role as President of the ELDR party, ELDR has decided to make the energy transition our main campaign theme for 2012. In 2008 the European Climate Foundation brought together a group of experts and opinion-makers to study how the EU's targets of an 80 per cent cut in CO2 emissions by 2050 can be made a reality. The Roadmap 2050 study looked in particular at how to decarbonise the power supply

Adapting For Tomorrow and studied various scenarios combining renewables (40 per cent, 60 per cent and 80 per cent) with Carbon Capture & Storage and nuclear, as well as a 100 per cent renewables scenario. Power generation accounts for a quarter of greenhouse gas emissions, so is an important place to start. People often assume that high-renewable energy scenarios are too variable to provide sufficient reliability, too expensive and require a breakthrough in the technology. The Roadmap 2050 study busted all these myths. Renewables do suffer from intermittency â&#x20AC;&#x201C; they stop and start. But we can overcome intermittency if we join up many different sources of renewable energy over a large area. In Europe for example, we can connect the wind power generated in Northern Europe to solar power from the sunny Mediterranean, and biomass from Eastern Europe to hydro in Norway and the Alps. When the wind stops blowing in Scotland, chances are the sun is shining in Seville. When the skies cloud over in Greece, the biomass incinerators in Poland can be fired up, or the floodgates can be opened on the dams in Austria. Adaptation to climate change is also about finding ways to live with less water, higher temperatures, higher sea levels and changed weather patterns. Adaptation is about reducing the adverse effects of climate change and reducing our vulnerability to those effects. Examples of adaptation that we must implement include planting different kinds of crop, bolstering flood defences, diversifying the economy and making insurance schemes work better. It is without a doubt the developing world and small island states that will be hit the hardest and the soonest. In the developing world, it will be the eldest, the youngest and the women who again will bear more than their fair share of the burdens. It is important to remember the global injustice of climate impacts when thinking about climate adaptation. As to the EU's role in climate change adaptation, due to the local nature of adaptation most initiatives need to be taken at local, regional and in a few cases national level. After all, much adaptation provides local (and not national or global) benefits. But the EU should be helping to finance adaptation efforts in the developing world. Fortunately, Commissioner Andris Piebalgs understands this. In 2011 the EU mobilised 2.34 billion Euros in fast start finance for developing countries.

There is a risk however that people will think adaptation is the answer to our climate-related woes. I am not of the opinion that adaptation in its strictest sense is an alternative to mitigation, as some people seem to claim. Adaptation does not replace mitigation of greenhouse gas emissions. The safest and most predictable method of moderating climate change remains early action to reduce CO2 emissions. Both adaptation and mitigation need to be pursued in parallel, complementing each other. We need to find a balance between climate mitigation and adaptation, and we need to find that balance in a time of economic crisis, with scarce financial resources. Adaptation is sadly unavoidable â&#x20AC;&#x201C; our climate is changing and will continue to change. The IPCC estimates that, even if we manage to contain the level of greenhouse gas emissions, past emissions have already made an average rise in temperatures of 0.6Â°C in coming decades inevitable. So adaptation is a must. In the most vulnerable countries such as Ethiopia, Bangladesh or the Maldives, it is a choice between adapt or die. The longer we wait the more adaptation will cost â&#x20AC;&#x201C; so we must act now.

Paula Baker Member of Basingstoke and Deane Council, United Kingdom, Deputy Coordinator, Commission for the Environment, Climate Change and Energy, Committee of the Regions, Brussels, Belgium http://www.basingstoke.gov.uk http://cor.europa.eu Climate Change Being Close to our Citizens The Committee of the Regions is the EU's assembly of regional and local representatives. We are all elected representatives, Councillors, regional ministers or Mayors. We come here to bring practical experiences from our home communities to bear on EU legislative proposals. We also work in the opposite direction, to keep our home communities in touch with EU policies. The European Commission, the European Parliament and the Council are obliged to consult the Committee in policy areas affecting regions and cities. It can appeal to the EU Court of Justice if its rights are infringed or it believes that an EU law violates the subsidiarity principle or fails to respect regional or local powers.

Adapting For Tomorrow If we look at the reaction many people have to changes brought on by the current economic crisis – we see denial of the problem and disagreement with the solutions. That shows us how difficult it could be to persuade our residents to adapt to change, whether it is a reaction to demographic changes, lifestyle aspirations, changes in diets or pressure on resources such as water, food and energy. We must also not forget that adaptation on its own is not enough – we must also mitigate our impacts on the environment. Much can be done (and is being done) by Local Authorities, sometimes despite a lack of action by their national governments. The local level is vital. It’s good to have ambitions, but the public sector at a local level must be engaged and empowered to ensure that ambitions are actually implemented. Local authorities have many powers that can achieve adaptation to climate change – land use planning to ensure growth is in the right places, standards (for insulation or drainage systems for example) to protect residents from extreme weather events. We have much influence through the way we use our own purchasing power, we can exert influence on our national government and, most importantly, we influence our local residents and can explain and encourage them to make the changes to their lifestyles that adaptation will cause. So the role of local authorities is going to be vital to drive adaptations. There can be problems, which are political or institutional in source. We talked about subsidies and those, which have been harmful. We had references to taxation and the role of market barriers. Adaptation can have a personal imperative that I think we should all bear in mind. I am not sure if the barriers are simple to describe, as political and institutional. This is all about people and what are the drivers in our lives. It is the impact on us in our own lives and how we assess our future life chances and our children’s future life chances. Do we have a dialogue with our representatives at the local level about what measures will give us and our children better chances in life? Without that political dialogue at the local level we risk failing with adaptation. That takes me round to the role of local and regional governments. We are the people who are closest to individual citizens and we should be the ones totally in tune with the issues that are inspiring, or irritating them. We need to have that in our minds when we are carrying out our responsibilities at a local level, whether it is about housing and the stan-

dards of housing. Or whether it is about land-use planning and looking at the shape of the area where we live and move around and what is going to affect that in the future. I think the task for us is to make sure that we are communicating with our residents about the big issues that could be affecting their lives, because we need to have a shared and common understanding about environmental impacts and why we are in certain instances proposing changes to the way that we all live our lives. Coping with the challenges of change on a global and local level leads us to realise that both is relevant. For example, one of the issues that remain, in spite of previous mitigation actions, is our individual household emission. That is very good proof of our need to have dialogue and information exchange about adaptation. Once you can do that then there are many things that the local and regional authorities can influence to change how their immediate neighbourhood works. We need to have resilience, to future changes, whether they are caused by climate change or not. We know that things are changing and they are changing very fast at the moment. We will only be successful in adaptation if we work with our communities.

Lessons Learned? Past Experience of Adaptation Julian Morris Vice-President, Reason Foundation, Washington, D.C., United States http://reason.org Win-Win or Lose-Lose: Which Policy to Address Climate Change? When considering the best policy to address climate change, it seems reasonable to begin by asking what impact climate change is likely to have. Southgate 8 looks at the likely impact of climate change on food production. He concludes that a rise in temperature is unlikely to reduce productivity considerably as long as individuals and companies continue to be able to make investments in the development of new technologies, so that agricultural productivity continues to outpace population growth. 8 Southgate, D. (2011) Weathering Global Warming in Agriculture, Los Angeles: Reason Foundation,

Policy Study 395.

Adapting For Tomorrow

However, there are barriers to such adaptation, most of which come from government intervention. Government ownership of land and water lead to perverse, inefficient, and often environmentally less suitable uses. Government regulation of land uses often has a similarly detrimental impact, since it precludes many private sector innovations. Likewise, government subsidies often have perverse consequences, such as encouraging the production of crops unsuitable to the terrain and over-abstraction of water. Southgate argues that adaptation will take place most rapidly and at least cost if government gets out of the way. When land and water are owned privately, the owners have incentives to put those resources to their highest-valued use. That means applying effective conservation measures, such as no-till farming and drip-feed irrigation. Private ownership also provides both the incentives and the means to develop better, more efficient technologies. Reiter 9 analysed the supposed impacts of climate change on health. He found that, contrary to claims made by others, rates of malaria have not risen as a result of climate change. Rather, in wealthy countries, malaria rates have declined dramatically as a result of a combination of, inter alia, changes in animal husbandry practices (people no longer live close to animals), drainage of swamps (where mosquitoes breed), the use of insecticides and larvicides, and air conditioning. Meanwhile, in poorer countries, malaria rates declined after about 1960, in large part as a result of using highly effective, long-lasting insecticides such as DDT, but are now rising again, in large part because of reduced usage of these insecticides. Other health impacts are also highly dependent on wealth, with people in richer countries generally being far less susceptible to death as a result of extreme temperatures than people in poor countries 10. Thus, an increase in wealth will by itself likely reduce the rate of mortality from extreme temperatures because people will be better able to afford clean and efficient heating and cooling systems, as well as having greater access to medical facilities. 9 Reiter, P. (2007) Human ecology and human behavior: climate change and health in perspective, Civil Society

Coalition on Climate Change Working Paper. 10 Keatinge, W. (2004) â&#x20AC;&#x153;Illness and mortality from heat and cold: will global warming matter?â&#x20AC;? in Environment

and Health â&#x20AC;&#x201C; Myths and Realities (eds. Okonski and Morris). London: International Policy Press. .

But increased wealth also brings the capacity to invest in other strategic disease-reducing activities, such as more effective preventive measures for vector-borne diseases. Goklany 11 shows that mortality and mortality rates from weather-related natural disasters have declined dramatically over the past century. The reasons for this are many and varied but include increased wealth, better building materials, and more reliable warning systems. While the economic damage done by such extreme events has risen, the main reason for this is that wealth has increased both in aggregate and on average. Goklany shows that as a proportion of total wealth in the US, the impact of extreme weather events has remained largely constant over the past century. In sum, if we are concerned about the impact of gradual climate change, then we should focus on policies that can reduce the harms people face today that might be made worse in the future. Creating an environment in which economic development can take place by removing perverse government interventions seems in general the best form of insurance. It would enable people to become wealthier and less dependent on weather-related activities, so that they are more resilient to all manner of future challenges. Such policies would be “win-win” in that they would increase rates of economic development regardless of what happens to the climate. By contrast, most policies aiming to “mitigate” climate change seek to reduce emissions of greenhouse gases (GHGs), which would come at a significant price in terms of lower productivity and fewer new resilient technologies because resources would be diverted into the research, development and production of low-GHG technologies. Paradoxically, such “mitigation” may end up being a “lose-lose” strategy because it would not only slow down economic development but, in part as a by-product of that, it would reduce the capacity of people in poor countries to adapt to a changing environment.

11 Goklany, I. M. (2011) Wealth and Safety: The Amazing Decline in Deathsfrom Extreme Weather in an Era

of Global Warming,1900–2010, Los Angeles: Reason Foundation, Policy Study 393.

Adapting For Tomorrow Professor Gullög Nordquist Professor and Head of Department of Classical Archealogy and Ancient History, University of Uppsala, Sweden http://www.arkeologi.uu.se Proof from History – How Do Humans Adapt to Changes in Environment? Humans are as species adaptable and have therefore spread all over our globe. Humans have adapted to different environments by creating social, economic and political structures, found food, shaped clothes, shelter and objects, from first pyrotechnology, using fire to cook food, make objects etc. to the establishment of large organizations, such as states and EU, all the time adjusting society, economy, technology and natural surroundings to fit human ideas and needs. The human minds and cultures have needed to change since life patterns have changed in different intricate ways. External pressure though e.g. climate change or environmental degradation may necessitate radical change in people’s way of living, as many examples in the past can show 12. We need a firm sequence of events, when studying how past environmental changes and cultural responses interact, in order to avoid the temptation to see any casual connection as explanatory. It is tempting to fit all change into the same explanation, but dramatic changes in human societies rarely depend on one cause only. Many factors lay behind the Roman Empire’s disappearance in the West; most of them people hardly perceived at the time. But the fact of its change and finally disappearance affected people over large areas of Europe. It is important to recognize that the results of e.g. climatic or environmental stress and/or events may depend on the way they are perceived and met by the people affected by them. Humans’ possibilities to act and react are determined within the framework of their culture, ideologies and technology, their social hierarchies, power structure, networks etc. A radical external change, in e.g. climate, may as a consequence necessitate societal change, but those afflicted by it largely govern the direction. This will also be different depending on your own or your

12 Urban Mind. Cultural and Environmental Dynamics http://www.arkeologi.uu.se/Forskning/Projekt/Urban_Mind/

group’s place in the society. Such reaction and strategies will decide long term developments, since it will start new lines of exploring and developing, usually not at all foreseen. Can we learn from the past? We cannot directly translate successful strategies of the past into our modern world, into our social and political strategies. Our society requires of us to use our tools, our ideology. But we cannot avoid change, we will need to adapt, even if we do not know or agree on its causes and realize that all actions we take (or do not take) have long-term effects. The way we act and react, formulate strategies, plan etc. depend on our own social frames and structures, our ideologies, power structures etc. We are generally not prepared or capable to look outside that frame at least not as a group. Study of the past may open our eyes to alternatives and encourage us to look outside our modern limitations, whether by trying new ways of using old technologies or offering a more realistic way of looking at ourselves. Information from the past provides a diversity of options to the modern planners and policy makers.

Sectoral Case Studies Professor Pier Vellinga Director/Chairman of the Netherlands’ National Research Program: Knowledge for Climate; Professor on Climate Change, Wageningen University and Vrije Universiteit Amsterdam, The Netherlands http://www.wageningenuniversity.nl http://www.vu.nl/ Making ‘Climate-Proof’ Even with the best estimate of global average temperature rise under scenarios with major emission reduction efforts, we are very likely to end up by the end of this century with two to three degree temperature rise of which already one degree has already occurred over the last 50 to 100 years. When emissions would continue in business as usual global temperatures could go up by three to six degrees. The worldwide cost of damage due to climate change has been roughly estimated by the World Bank to be in the order of 100 billion US-Dollars per year, starting from 2020 onwards. There are different estimates as well both higher and lower ones.

Adapting For Tomorrow These costs can significantly be reduced by innovation and anticipatory investments in reducing vulnerability. Many adaptation measures and investigations have co-benefits. When you design and implement adaptation measures the co-benefits could carry a lot of costs of adaptation away. But to captures such benefits requires both political and foresight skills. What is extremely relevant for the Netherlands and other low-lying Delta areas is the melting of the Greenland ice cap. The rather rapid melt is a surprise to major parts of the scientific community. Whether it is temporary (local climate variety) or the start of a trend (climate change / global warming) is not fully certain. But the odds are it is a response to the globally rising temperatures. The glacial decay is in the order of 200 billion tons of melting ice per year. What is equally surprising is the melting on the Antarctic ice sheet. Not just where it is expected: the West Antarctic Ice sheet, but also at other places on the continent. Antarctica is now a net producer of water (and subsequent sea level rise). How to handle the rise in sea level now underway? Along the North Sea coast we now expect a rise in sea level of some 20-30 cm in the next 40 years. This we can handle. But sea level rise is likely to accelerate there after up to 1 meter in 2100 and more beyond. In the Netherlands, the present yearly costs of water management and coastal protection are in the order of 0.2 per cent of GDP. Additional costs for a 1 meter sea-level in 100 year would roughly double the yearly cost, thus up to 0.4 per cent of GDP (0.4 per cent of GDP is about 2 billon Euro). This figure is relatively small. It implies that the Dutch economy and population is not likely to retreat from the sea. The benefits of working and living close to the sea clearly outweigh the cost of adaptation to sea level rise, at least for the forth-coming century. The additional coastal protection cost for the Netherlands is estimated to be in the order of one billion euro. This is to protect about 10 million people along a coastal stretch of some 300 km. Extrapolating these cost to the global level comes down to an amount of 50 billion Euros per year to protect the (about) 500 million people living in coastal areas. In the Netherlands we explored different strategies.

• The offensive strategy: building a new and strong coastal ring dike some 20 kilometres offshore. This is technically possible and many engineers would like to go for it. There is enough sand in the North Sea to build such a dike. But from the water ecological perspective it is not a preferred solution because of far reaching impacts. • In the second scenario we would continue like now – shorten the coastal line and reinforce the existing dikes and coastal protection works and keep the sea out. The problem with this solution is the water that comes down from the rivers. It cannot flow freely into the North Sea anymore. Especially during a westerly storm the river water would pile with major risk of flooding. • In a third scenario we would keep the estuaries as open as possible. This implies a much greater length of coastline to be protected. There would also be more salt penetration, which is negative for agriculture. The advantage of this third scenario is that the rivers will run freely into the North Sea. • The fourth scenario is to move investments and people to higher grounds in the east of the Netherlands and Germany. But it turns out that moving houses and industry is much more expensive than raising dikes. So it is very unlikely that the economic activities and people will move upward and eastward. Given the preference for scenario three which is keeping the estuaries open and reinforcing the dikes of many kilometres, the question is how to reinforce the dikes. We could make them higher. But they still may fail under extreme water level. The alternative is to make them significantly wider. Such that the dikes would not be able to break anymore during the time the water is extremely high. The water could wash over the top of the dike and some dike erosion could occur. But when the dike is wide enough it would not break. As a consequence only a relatively small quantity of water would flow into the polders and only little damage would occur. Beside the idea of building broad, unbreakable dikes more innovation is going on, for example in aquaculture and salt water agriculture. This is a typical response to rising sea levels and increasing water quantities from rainfall and rivers. Floating cities and floating greenhouses (horti-

Adapting For Tomorrow culture) are additional examples of adaptation path ways. Such new practices and the technology involved are likely to create new international markets for those investing in it now. Another innovative approach is to harvest rainwater and to store in underground for later use in periods of drought. In the meantime these underground fresh water reservoirs can keep the brackish groundwater at (sea) bay. Indeed the Netherlandsâ&#x20AC;&#x2122; national government together with regional governments, major cities and private sector companies initiated a major research and innovation program. A budget of 100 million euro was allocated to develop climate-proofing strategies including new technologies and proposals for institutional changes. A co-creation program has been developed that includes academic and applied researchers, consultancy firms, project developers, contractors, and entrepreneurs from the sectors such as agriculture and transport. Eight regions â&#x20AC;&#x201C; hot spots â&#x20AC;&#x201C; were selected to find and test innovative solutions that would create co-benefits. The notion of co-creation is rather typical for the approach we have taken in this national exercise. Co-creation in this case means that the owners of the problem work closely together with the researchers and innovators in a multidisciplinary setting with the goal to find optimal solutions. In conclusion, Research and Innovation (R&I) can help to bring down the costs of adaptation to Climate Change. R&I in a setting aimed at co-creation is likely to pay off. Many adaptation measures can be carried out such that are multiple co-benefits. Of course adaptation to climate change is not a free lunch. Major efforts are required in research, innovation and co-creation and major political hurdles have to be taken to implement specific measures in a timely way. Like in the case of mitigation (reducing greenhouse gas emissions) research, innovation and cooperation can bring down the cost dramatically. In practice, however, the institutional change that required is the major bottleneck in implementing cost effective solutions. Indeed the most critical factors are: first, to get political support for R&I investments and second, to mobilise and support political consistency in planning and implementation.

Dr Oliver Blank Director European Affairs, The German Electrical and Electronics Industry (ZVEI), Secretary General T&D Europe, Brussels, Belgium http://www.zvei-akademie.de http://www.tdeurope.eu Smart Cities â&#x20AC;&#x201C; How to Become a Smart City? According to the United Nations (UN), 80 per cent of economic growth in developing and transitional countries will be generated in cities. ZVEI together with the Institute for Future Studies and Technology Assessment therefore has initiated the drafting of a number of "roadmaps" on "water and sewage" (2009), on "Energy" (2009) and on "Megacities" (2010). Clean water is a human right: Nevertheless 1 billion people are without access to clean water. Expansion of demand requires an expansion of capacities including drinking water purification, desalination in arid countries, refurbishment in order to stop the current 50 per cent leakage and sewage treatment. The cumulative water infrastructure demand by 2030 will require investments of 23 trillion US dollars. Transportation is a key challenge: Traffic will double by 2050; air traffic will double by 2020. E-mobility is a key technology in an integrated transportation system that is free of CO2 emissions, energy efficient and silent, and one good solution for future transport. Cumulative transportation infrastructure investments are at 9.5 trillion US Dollar by 2030. Sustainable energy supply: We need more reliable, economical and environmentally friendly power. We can get there with decentralised power generation on the basis of renewables and a smart grid for intelligent energy distribution. Energy efficiency plays a key role. Technologies are available; demand-side energy management is needed to increase efficiency. Investments into cumulative energy infrastructure needed are 9 trillion US Dollar by 2030. The integration of technologies is the key for a successful transformation of cities into smart cities. This includes manufacturing, energy generation, transmission and distribution and energy storage, transportation and mobility, smart appliances, smart buildings, embedded software and systems and smart meters. No sector employs more experts

Adapting For Tomorrow needed for this transformation than the electrotechnical and electronics industry (E+E) industries. We have the technological solutions to make the megatrends become real life. Smart Cities need smart solutions for their energy grid, buildings, lighting, mobility, safety and security and factories. Innovations in that area improve the quality of life in rapidly growing agglomerations. Smart Cities will be the places where future jobs and wealth are created. They are the home of the "brains" of the future. Smart cities will need to cater for different living concepts. Developing smart cities is a complex task, as they are not built from scratch but on the basis of renovation and transformation of existing infrastructures. Therefore smart cities need a holistic approach and an improved network of intelligent systems. The European Electrical Engineering Industry in its "Electra 2"-Report (2012) launches a "Smart Cities initiative". Cornerstone of this initiative is a "Checklist for mayors on how to become a smart city". Main recommendations are: City councils must take the lead; steer and coordinate transformation; develop a clear vision; get insight into the legal side of the transformation; get insight into finance and resources; set benchmark dates and monitor progress; look for local and financial partners; investigate all financial constructions; check EU funding opportunities; analyze different project structures (e.g. project finance model vs. corporate finance model).

Dr Frank Raes Head of Unit, Climate Risk Management, Institute for Environment and Sustainability, Joint Research Centre, European Commission, Ispra, Italy http://ies.jrc.ec.europa.eu Climate Action as Development 13 There is mounting evidence that human activities are changing the Earths climate. Over the past 20 years and in 4 assessment reports, the Intergovernmental Panel on Climate Change (IPCC) has shown that the evidence is not only mounting but also ever more coherent. Basic un13 Thanks to Julian Wilson for his useful comments to the first draft.

derstanding, observations and model calculations provide an ever more consistent picture of the human impacts on climate in the past, and give a solid basis to manage the risks of climate change in the future. It is known what needs to be done and why: that is the scientific-technological question as it is outlined and answered in the IPCC reports. How to come to climate action and for whom: that is the political question, for which there is not yet an internationally agreed answer. Science does outline the risks of climate change. Based on that knowledge policy makers, i.e. those people in ministries and e.g. the European Commission, do try and device policies and measures to deal with the risk. Eventually, it is the decision maker, the politician, who takes the risk in deciding to spend resources for this problem or another. Managing a complex problem like climate change, which touches on all aspects of daily live, is obviously not only a scientific-technological problem, but needs to be embedded in a larger political discourse. Adaptation While fighting for a 2째C world is still high on the agenda of the UNFCCC and the EU, it becomes ever more necessary to start and prepare for both it and the possibility of a + 3째C world through dedicated adaptation policies. Adaptation has for a long time been taboo in climate policy circles, as it was considered a means of diverting attention and resources from mitigation efforts 14. Today, adaptation to a 2째C world is well accepted, as an essential second leg of climate action. The European Commission is preparing an adaptation strategy that will be presented to the EU Council and Parliament in 2013. It will look to promote mainstreaming adaptation concerns into common European policies at both the formulation and revision stages, as well as exploiting the potential of market based instruments, e.g. insurance, to strengthen adaptive capacity. It will also seek to develop adaptation to future climate change as an extension of protection against current weather related disasters. The Strategy will further seek to strengthen the knowledge base on adaptation through more research on the impacts of global warming, which is lagging behind research that has elucidated the link between greenhouse gas emissions and global warming. In the mean time the Commission has created CLIMATE-ADAPT 15, a web-based platform to exchange information on adaptation between countries, regions, cities and practitioners in Europe who are already engaged in adaptation. 14 Pielke R., et al., Lifting the taboo on adaptation, Nature, 445, 597-598, 2007. 15 climate-adapt.eea.europa.eu

Adapting For Tomorrow Climate impacts will however be most felt in societies that are most vulnerable to the impacts of climate change: the often poor people in the low lying deltas of the Ganges, Mekong and other large rivers, millions of African farmers who depend on rain fed agriculture, people in mega-city slums in the South. Making these population groups resilient to climate change is a prerequisite for their further development. Limits to adaptation In a world in which people pursue personal wealth rather than environmental quality, there is little chance to remain below + 4°C 16. This implies unprecedented changes in the world we live in, with possible passing of irreversible thresholds or tipping points 17, leading to variously the melting of the Greenland ice cap with a resulting multi-meter sealevel rise, a shutdown of the Atlantic thermohaline circulations, major biome shifts in the Amazonian rainforest, collapse of agriculture in subSaharan Africa. For the more vulnerable regions this may require migration of their population or complete transformation of their society, rather than an incremental adaptation of existing activities. More systematic research is required to assess the potential climate impacts of a + 4°C world, including feedbacks, thresholds, etc. It has become clear, however, that there are limits in sight as to how much climate change society can adapt to. These limits can be of a behavioural, institutional and economic nature, or a complicated unmanageable mixture of them. This calls again for enhanced efforts in mitigation, using all available approaches. Climate Action as Development Climate change and hence climate action – whether mitigation, adaptation or even reengineering – is related to many fundamental aspects of our societies. CO2 emissions are tightly linked to the economy. Curbing emissions will require a less carbon intensive way of production. Also consumption patterns need to be changed through a different social behaviour and a greater sense for the common good. The developed world may have to come to terms with seeking increasing well-being under conditions of economic stability rather than via growth. With its links to 16 IPPC, Climate Change 2007 Synthesis Report. Contribution of Working Groups I, II and III to the Fourth

Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, Pachauri, R.K. and Resinger, A. (eds), IPCC, Geneva, Switzerland, 104 pp., 2007; Meinshausen M., et al, Greenhouse-gas emission targets for limiting global warming to 2 degrC, Nature, 458, 1158-1163, 2009. 17 Lenton T., et al., Tipping elements in the Earth's climate system, PNAS, 105, 1786-1793, 2008; Schellnhuber H.-J., Tipping elements in the Earth System, PNAS, 106, 20561-20563, 2009.

environmental, economic and social issues, climate change policy is arguably potentially the most concrete driver towards sustainable development, albeit not a yet successful one. In discussion of sustainable development it is seldom discussed where we want to develop to. That is of course a political question because it is linked to value systems. In his book â&#x20AC;&#x153;Development as Freedomâ&#x20AC;? Amartya Sen argues that development ought to be towards more freedom, so that people can be actively involved in shaping their own destiny. That requires political freedom, access to social facilities (health, education), access to economic opportunities (markets), trust and protective security for the weakest. Values such as justice or care for environment emerge from a joint cultivation of these various aspects of freedom. Clearly this goal is not only to be realized in developing countries; many aspects of it are still relevant to the developed world. The argument of Sen is anyway that while development is towards freedom, freedom itself is a precondition for development. So there are, or there should be tight iterations between development and freedom. A benign climate, and hence climate action is a precondition for the development of hundreds of millions in the world. By the same token, development through poverty eradication, halting brutalization of people, health improvement, trusts building, etc. is a requirement for people to be able to deal with climate change. Climate action, whether mitigation or adaptation, has therefore to fit within a socio-economic system that is functioning according to firmer sustainability principles, implying tight iterations between adaptation, mitigation, and issues regarding development. Dr Konar MutafoÄ&#x;lu Sector Economist, KfW Entwicklungsbank, Strategy and Policy Division Water and Solid Waste, Frankfurt, Germany http://www.kfw-entwicklungsbank.de Perspectives of a Bilateral Financing Institution As a bilateral development financing institution, KfW Entwicklungsbank has a long-time experience in financing projects and programmes in developing countries, in countries in transition as well as in emerging eco-

Adapting For Tomorrow nomies. These activities form part of German development cooperation and are based on both grants and loans depending on the types of projects financed and the overall characteristics of the partner countries. In 2011, total new commitments of KfW Entwicklungsbank amounted to around 4.5 billion Euros originating from the federal budget and from own funds at the capital market. Around 2.2 billion Euros of these new commitments addressed mitigation of greenhouse gas emissions and adaptation to climate change. These figures indicate the strong role of climate action within the current project portfolio. While financing measures to mitigate greenhouse gas emissions remain important as an integral part of the activities of KfW Entwicklungsbank, adaptation to climate change is evolving as further field of financing. The approach of KfW Entwicklungsbank uses two channels to address adaptation to climate change. On one hand, all new projects undergo a systematic climate-proofing process since 2011. This procedure makes sure that the design of projects takes the anticipated effects of climate change fully into consideration. This procedure is mandatory, regardless of the sector in which the activities take place. To this end, KfW Entwicklungsbank makes use of available sources of climate data and â&#x20AC;&#x201C; where required â&#x20AC;&#x201C; conducts in-depth assessments that shed light on potential climate impacts in the project region as well as suitable measures to alleviate these impacts. This climate-proofing process ensures that climate change does not threaten the intended development outcomes of a project. On the other hand, the bank also increasingly finances projects that specifically address climate risks and the impact of climate variability and climate change in the partner countries. Adaptation projects follow a particular logic by systematically analyzing climate risks in the project area and by identifying the vulnerable people and ecosystems. Building on this analysis, appropriate measures are selected that increase the adaptive capacity and lower the vulnerability of communities. However, it should be noted that the specific activities pursued will in many cases not be entirely different from regular development projects. Examples are the improved efficiency of water use in drought prone areas, such as the reuse of treated wastewater or the introduction of efficient irrigation in agriculture.

The evolution of the portfolio reflects the increased level of activities as regards adaptation to climate change. From all new commitments in 2011 around 450 million Euro addressed adaptation â&#x20AC;&#x201C; be it as a principal or a significant objective of the activities. Around two thirds of these funds flowed into agriculture and water projects, two sectors that are especially affected by the mostly negative impacts in form of rising temperatures, changes in precipitation and runoff and extreme events such as floods or prolonged droughts. Around two thirds of the above commitments were directed to the African continent and the Middle East, where climate variability and climate change already pose significant challenges. The above mentioned numbers provide a single-year snapshot and may fluctuate throughout years, yet they are indicative. While activities in the field of adaptation to climate change can benefit from the experience gained in many sectors of development cooperation, new challenges arise as well. One example is climate data, which are essential for identifying climate risks and appropriate alleviation measures. For this purpose, KfW Entwicklungsbank increasingly cooperates with scientific institutions that provide data as well as know-how to practitioners in development cooperation. These efforts are important in both strands of addressing adaptation, be it in the context of mainstreaming adaptation within the portfolio or in the context of designing adaptation projects.

Global Capacities and Constraints Dr Rob Swart Coordinator of International Climate Change Adaptation Research, Wageningen University and Research Centre, The Netherlands http://www.wur.nl Europe is Vulnerable, Too In Europe, the development of adaptation policies started relatively late, well after the turn of the century. During the international negotiations in the context of European climate policy and the United Nations Framework Convention on Climate Change (UNFCCC), the emphasis has rightly been on mitigation in the developed world and on adaptation in

Adapting For Tomorrow the more vulnerable developing regions. A European focus on adaptation may have taken the pressure away from the need to reduce greenhouse gas emissions. However, with important assessments like those of the IPCC 18, the European Environment Agency 19 and research projects such as PESETA 20, it became increasingly clear that impacts of climate change were already observed in various natural and economic systems and projections suggested that these impacts would be exacerbated by climate change in the future. The number of time series for observed changes in ecological, hydrological and cryosphere systems consistent with observed temperature changes reported in the IPCC report is larger for Europe than for any other part of the world, due to significant investments in climate change research. Also the number of research projects addressing future climate change and associated impacts is considerable, leading to a significant scientific capacity to assess future changes and response options. Nevertheless, a comprehensive, consistent picture of future impacts is largely missing because impact analysis in Europe is based on a wide variety of (IPCC SRES) climate change scenarios, and usually only potential impacts are analysed. The latter is because neither comprehensive analysis of impacts avoided by mitigation (e.g., EU 2°C target) has yet been done, nor a comprehensive analysis of vulnerability or impacts to be avoided by adaptation. The main reason for this is that methodologies and indicators for the assessment of avoided impacts and residual impacts are still controversial. Europe takes adaptation initiatives at all levels After Finland issued the first national adaptation strategy, other countries, regions and the European Commission have followed suit. In Brussels, after the publication and discussion of a Green Paper 21, in 2009 a

18 IPCC (Intergovernmental Panel on Climate Change), 2007. Contribution of Working Group II to the Fourth

Assessment Report of the Intergovernmental Panel on Climate Change, 2007 M. L. Parry, O. F. Canziani, J. P. Palutikof, P. J. van der Linden and C. E. Hanson (eds). Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. 19 EEA (European Environment Agency), 2008. Impacts of Europe's changing climate – 2008 indicator-based assessment. EEA Report No 4/2008, EEA Copenhagen 20 Ciscar, J. C., A. Iglesias, L. Feyen, L. Szabó, D. Van Regemorter, B. Amelung, R. Nicholls, P. Watkiss, O.B. Christensen, R. Dankers, L. Garrote, C. M. Goodess, A. Hunt, A. Moreno, J. Richards, and A. Soria, 2011 "Physical and economic consequences of climate change in Europe". PNAS January 31, 2011 21 EC, 2007. Green paper. From the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions. Adapting to climate change in Europe – options for EU action (No. COM(2007) 354 final {SEC(2007) 849}). Brussels: Commission of the European Communities.

White Paper 22 was released. This White Paper aims at the publication of a European Adaptation Strategy in 2013. Objectives of that strategy will be to “climate-proof” EU policies and directives; to integrate adaptation into EU’s funding programmes; to consider new policies, e.g. spatial planning as an integration tool; to integrate adaptation in EU external relations (developing countries); enhancing the knowledge base, e.g. regarding regional scale and information on costs; involvement of civil society, business sector organisations and enhanced information exchange; and support member states. In addition to large investments in research, as part of the development of a sound knowledge base the Commission is developing an information system on climate change impacts, vulnerability and adaptation, called Climate-Adapt, which will be hosted by the European Environment Agency. The EU has already placed climate change at the heart of its external relations. It is now a regular item on the agenda of its policy dialogue with partner countries in the developing world. The main avenues for incorporating climate change concerns in development collaboration are the mainstreaming of adaptation in general, the integration of climate change adaptation and disaster risk reduction, and pursuing synergies mitigation and adaptation (e.g., via sustainable forestry, ecosystembased approaches and rural development. Another piece of evidence that Europe is serious about climate change is that the European Commission envisions that at least 20 per cent of the EU budget should support climate change activities (i.e., >200 billion Euro over 7 years). This would be achieved through the ‘mainstreaming’ of climate change obligations across different funding instruments, i.e. cohesion, agriculture, research and innovation, and external action. The main goal would be to ensure the effective decarbonisation and resilience of a wide range of activities and investments 23. At the level of the member states, a major part of the countries have adopted National Adaptation Strategies. Strong points of these strategies are that they the often include plans for targeted research pro22 EC, 2009. White paper – Adapting to climate change: Towards a European framework for action (COM(2009) 147 final). Brussels: Commission of the European Communities. 23 EC, 2011. A Budget for Europe 2020. SEC(2011) 867 final/SEC(2011) 868 final. Brussels: Commission of the European Communities IEEP, 2012. Practical Options for Climate Change Mainstreaming in the 2014-2020 EU Budget. Background document for the workshop on ‘Practical Options for Climate Change Mainstreaming in the 2014-2020 EU Budget’, 1 February 2012, Brussels.

Adapting For Tomorrow grammes; plans for the implementation, monitoring and funding of adaptation, and planned coordination between sectors and administrative levels. Weak is that these are often only plans, and the implementation lags behind: coordination between levels and sectors is still poor, stakeholder involvement is often inadequate, responsibilities between administrative levels are often unclear, and there is still a lack of context-specific adaptation knowledge, both with regard to expected climate impacts as to the costs and benefits of adaptation options 24. These weaknesses as well as insufficient resources, lack of public support, and lack of political priority, especially with the current financial crisis, currently delay the implementation of the national strategies. With the exception of a few countries, usually only â&#x20AC;&#x153;localâ&#x20AC;? climate change impacts are being addressed by the strategies. Climate change impacts in other regions, e.g. through trade (agricultural and forestry products) or migration, can have consequences for Europe that are as yet not explored. In parallel with the National Adaptation Strategies, also regions, provinces, states in federal countries, and metropolitan regions in Europe are developing climate change adaptation strategies. The European Commission has issued guidelines to support other regions to do the same 25. Interestingly, while climate change adaptation and mitigation are largely disconnected in national policy processes, at the local level (e.g., in cities) synergies and trade-offs are sometimes taken into account. Also at these subnational levels, implementation is often still lagging. Potentially, changing the framing of climate change from purely a risk to also an opportunity may accelerate policy action. Examples are the export of adaptation knowledge (e.g. the Dutch Delta experiences), beach tourism in the Baltic countries and increased productivity or opportunities for new crops (e.g. wine in northern countries) and the latter at least for small to moderate increases of temperature and with adequate water.

24 Biesbroek, G. R., R. J. Swart, T. R. Carter, C. Cowan, T. Henrichs, H. Mela, M. D. Morecroft, and D. Rey, 2010.

Europe adapts to climate change: Comparing National Adaptation Strategies. Global Environmental Change, Volume 20, Issue 3, August 2010, Pages 440-450; Swart, R. J., Biesbroek, G. R., Binnerup, S. Carter, T. R., Cowan, C., Henrichs, T., Loquen, S., Mela, H., Morecroft, M. D., Reese, M., and D. Rey, 2009. â&#x20AC;&#x2DC;Europe Adapts to Climate Change: Comparing National Adaptation Strategies (no. 01/2009). Partnership for European Environmental Research (PEER), Helsinki, pp 160 25 Ribeiro, M. M. C. Losenno, T. Dworak, E. Massey and R. Swart, 2009. Design of guidelines for the elaboration of Regional Climate Change Adaptations Strategies. Final Report, Ecologic/European Commission

Dr Arianto A. Patunru Senior Research Associate, Institute for Economic and Social Research, University of Indonesia, Jakarta, Indonesia http://www.lpem.org Cooperation on Adaptation and Mitigation – Southeast Asia Managing climate change is an issue of public goods, which means it is not economically attractive to any private party to do it alone despite the benefits of doing so. Therefore, climate change is prone to free riding. Nevertheless, any action will affect others, such as when being left uncompensated, the latter will be forced to move down to a lower utility and thus, towards a negative externality. The problem of climate change is not contained in an isolated place. It is almost impossible to localize it within a small range neighbourhood. Due to these characteristics of the climate change problem, it is imperative for all affected parties to cooperate. The idea of international cooperation in terms of environmental causes, such as climate change mitigation and adaptation, is essentially about how developed countries can help developing countries to reduce emission levels by proper compensation. One of the important aspects of international cooperation is recognized in funds that often require a loop process where assistance is given with conditionality. It is rather common and in fact can be used to help the recipient country developing its own structure or system to support global initiatives for a green economy. Cooperation can also be conducted using existing organizations. Many of these organizations have already developed initiatives that address environmental problems in a coordinated way. In addition to this “developed-developing countries cooperation”, there is need for a cooperation system between developing countries. Most naturally this is formed on the basis of geographical proximity, e.g. Southeast Asian countries; each country is prone to the externality that originates from any other country in the region (for example on NOx and SOx pollution). Clean energy is one of the areas in which cooperation among developing countries is needed, as energy demand is always rising in a developing economy. But the demand is often met with a supply of energy that produces a negative externality to the economy. That is, the supply of clean energy has been limited. Many Southeast Asian economies are “victims” of high oil prices, but they continue to pervasively subsidize

Adapting For Tomorrow energy. Countries spend up to 25 per cent on energy subsidies, for example Malaysia (15 billion US-Dollar in 2009), and Indonesia (15 billion US-Dollar in 2010). In 2008 the overall fossil fuel consumption subsidies amounted to 557 billion US-Dollar, of which non-OECD countries were responsible for 400 billion US-Dollar. These energy subsidies distort prices and have negative effects on the environment as it can support pervasive activities that lead to environmental degradation or encourage over-consumption. Although energy is subsidized for economic development and poverty alleviation, subsidies for oil and other energy sources mainly benefit higher income groups and capital-intensive industries. While pursuing cooperation with other countries, each individual country should continue improving its own domestic policies and development practices. Agriculture in Indonesia is still the most important sector in terms of the large share of poor population working in it. Hence, any policy regarding this sector should take poverty issues into account. Simply requesting low carbon agricultural practices might not tackle the root of the problem. The fact that many poor Indonesians are stuck in the agriculture sector is related to the rigid labour market where the movement across sectors (from agriculture to more value-adding manufacturing) is relatively hindered. Furthermore, the ratio of land per farmer is very small (currently majority of Indonesian farmers are landless peasants and farmers who own less than 0.5 hectare of land). It keeps reducing due to the fixed resource of land versus increased labour force in the sector. This leads to low levels of productivity and sustainability. Therefore, it would be more logical if the policy in this sector aims to increase productivity (in a more sustainable manner) and to improve farmers’ access to wider opportunities like manufacturing. This also applies to the peat and forestry sector. With regard to energy and transportation, the government’s attempt to reduce dependency on fossil fuel and to move towards renewables is commendable. However, the key culprit of Indonesians’ dependence of fossil fuel is – as abovementioned – due to heavily subsidized prices. The cheap price of gasoline has made riding private vehicles far more attractive than public transportation. In addition, the availability and reliability of mass transportation is still low which leads to low incentives for consumers to reduce their use of private vehicles (and hence fossil fuel). Due to this heavy subsidy on fossil fuels, incentives for businesses to develop renewables remain little and it is not easy to compete against subsidized fuel.

Dr Carlos Muñoz Piña Advisor, Instituto Tecnológico Autónomo de México, Mexico City, Mexico http://www.itam.mx Smart Regulation in Mexico How do we adapt from a liberal point of view? Subsidies create market distortions by not allowing the market to cooperate and to reflect the opportunity cost of water, energy etc. which causes an economic and environmental problem. Although lower prices enable firms or households to use more of the respective resource in the short run, the choice regarding technology will not be the efficient one in the long run. In the end, this new efficient technology will not be chosen due to artificially set low prices. In Mexico, the main environmental problem is water shortage. What is the policy to adapt to frequent droughts? An economy has to rely on more groundwater. Protecting the aqua sphere becomes a priority. The government has to take into account the sustainability aspect of aqua sphere, which is a clear adaptation policy. What does this have to do with subsidies? 77 per cent of aqua sphere is used for agriculture in a country that has the water scarcity of Israel and the water technology of Indonesia. Electricity is highly subsidised which makes the rise of water pumps cheap. Thus, water resources are over-used as a result of the wrong price signals. In the field of agriculture, the government pays three-fourth of the total cost of electricity. Illegal farmers do not have a legal water concession and pay only half of the tariffs. In addition, property rights are not being respected, e.g. farmers extract more water without a permit. In the ITA’s research group, a new policy-design has been developed. It aims at reducing the vulnerability to climate change and to adapt to the scarcity of water. The OECD and WTO recommend decoupling subsidies to separate support for farmers from price distortions. In this case, price subsidies for electricity are abolished and farmers are supported directly. The new market priced electricity then leads to a lesser use of water pumps and a more careful use of the scarce resource water. As a side effect, incentives are created to improve new technologies for watering the fields.

Adapting For Tomorrow However, any government that increases prices of electricity for farmers will obviously face tough elections. In the end, democracy means communicating ideas. Our policy idea for the agricultural sector is to start with a website, which becomes accessible with an electro ID that automatically calculates the environmental allowance of the respective electoral district which means that farmers receive information on water over-exploitation, deforestation, wildlife preservation and air pollution. Firstly, this is important as citizens are often unaware whether a place is overexploited, or not. By providing information to citizens support for policy is gained. Secondly, farmers as interest group are trying to exert influence on congress people. If congress does not recognize the future benefits of this policy, it will not be supported. However, by empowering citizens through such a website this policy is likely to develop and grow into a useful programme that can be adopted and eventually implemented.

Finance for Adaptation Paul Renier Deputy Head of Unit, DG for Development and Cooperation â&#x20AC;&#x201C; EuropeAid, DEVCO C2, European Commission, Brussels, Belgium http://ec.europa.eu/europeaid Finance for Adaptation Strategies Some of the developing countries have already actively been involved in the preparation of adaptation plans by preparing National Adaptation Programmes for Action (NAPAs); however, these are not usually integrated in proper national programmes or development strategies. NAPAs have therefore suffered from a general lack of support. More recently the development of National Adaptation Plans (NAPs) seems to be better integrated in domestic frameworks and it is hoped that proper support will be provided to implement them. Among the ways a country can access funding, there is the bilateral cooperation, the multilateral funding (through United Nations channels or under United Nations Framework Convention on Climate Change, development banks, or the national budget of developing countries.

The aid effectiveness principles should be applied to climate financing and can be enhanced by increasing country ownership both by basing support directly on the development strategies of the developing countries and by using country systems (budget support). Streamlining of assistance between different donors is another are for improvement. The coordination between the European Union (EU) and other partners can be further improved by means of joint financing, programming and management, delegated cooperation with the EU member states and multi-donor trust funds. Corresponding performance assessment frameworks should be aligned with national monitoring systems. An effective response to climate change should be addressed through dialogue, capacity building and actions. A flagship initiative the Commission developed is the Global Climate Change Alliance, which targets support to the most climate vulnerable countries. There is a strong focus on the integration of climate change into poverty reducing efforts, adaptation in water and agriculture, Reducing Emissions from Deforestation and Degradation (REDD), Clean Development Mechanism (CDM) and Disaster Risk Reduction (DRR). Budget support is the preferred modality, but there are also other opportunities to work with joint financing, programming and management So far a total of 200 million Euro in 2008-2011 have been allocated and more than 60 million Euro are planned for 2012 and 2013. The core of the European Commission cooperation, which is carried forward by means of the European Development Fund (EDF), the European Neighbourhood and Partnership Instrument (ENPI) and the Development Cooperation Instrument (DCI), is a commitment for climate-relevant interventions, especially in the fields of water, agriculture, forestry, fisheries, rural development, energy efficiency, renewable energy and conservation. The Commission promotes adaptation and mitigation synergies and the commitments have totalled more or less 3 billion Euro since 2002. However, since the strategies are still very project-oriented a move to more strategically interventions is needed. The EU Investment Facilities mobilise additional funding for investments by leveraging loans and partner the countries' contributions to establish

Adapting For Tomorrow better infrastructure interconnections, by promoting an equitable development and job creation and by addressing threats to the environment, including climate change. In conclusion, Official Development Assistance (ODA) will remain an important source of funding: it should focus on the mainstreaming and integration of the CC, enhance the importance of ownership but will not be able to cover all needs. As far as the private sector is concerned, the involvement will be less obvious than with mitigation; however, it might be possible in some 'niche' sectors such as water efficiency, agricultural production and ecosystem services. Loans could be effective to mobilise the private sector in the above-mentioned niches, while the EU investment could facilitate 'climate windows'. A global agreement and innovative financing mechanisms (AGFs) are strongly needed; they could take several forms, such as a tax on international transactions, international levies, bunker fuels, a debt swap for adaptation.

Dr Axel Michaelowa Perspectives GmbH, Hamburg, Germany; Center for Comparative and International Studies, University of Zurich, Switzerland http://www.perspectives.cc http://www.uzh.ch A Market Mechanism for Adaptation to Climate Change The relevance of adaptation is steadily increasing in international climate policy. While several funds have been established to finance adaptation activities in developing countries particularly vulnerable to climate change, the available funds are far below the level needed. Thus, international adaptation instruments should be as efficient as possible. In other policy fields market-based mechanisms have been used to maximize efficiency. So far however, there is almost no experience with market-based mechanisms, such as taxes, performance-based payments and tradable allowances for climate change adaptation, whereas they have been successfully applied in the case of climate change mitigation during the last two decades.

For any of market-based mechanisms, common metrics are needed to compare the effectiveness of projects. While mitigation projects can be compared by the widely accepted unit of “tonnes of CO2equivalent”, the international community has not agreed on any common metric for climate change adaptation. Even within development agencies, each adaptation project is evaluated with a wide range of indicators, which are often project-specific, so comparison is not possible. Furthermore, development agencies mainly assess direct outputs of adaptation projects (e.g. knowledge, infrastructure), while the real impact on peoples’ lives is not quantified and compared. Therefore, the introduction of universal impact indicators (“adaptation units”) for climate change adaption projects would be beneficial. Given the ethical difficulties to monetize human lives and environmental benefits, we propose to use three indicators for the adaptive effect: • Saved Wealth (SW) is measured by a mixed index of absolute and relative wealth savings, in order to both include economic value and vulnerability to climate change. • Saved Health (SH) is estimated by an established method in the health sector, the Disability Adjusted Life Years (DALYs). • Environmental Benefits (EB) measures those environmental benefits and services that are not economically quantified in the SW indicator. Once such common metrics of adaptation metrics are introduced, an adaptation market mechanisms based on quotas of adaptive benefits could be established: each industrialized nation or company could commit to achieve a certain amount of adaptation units (measured in SW or SH). Such committers could directly invest in projects to achieve the adaptation units or buy certified adaptation units from companies or other nations, who can deliver adaptive benefits at lower costs. Similar to emission trading systems, governments could also oblige companies to achieve a specific amount of adaptation units. We can learn from climate change mitigation that monitoring and independent verification will be key to guarantee the stability and integrity of an adaptation market mechanism. Some challenges to be resolved are the

Adapting For Tomorrow highly politicized process of adaptation funding and the imprecise knowledge about future impacts of climate change, which may lead to inefficient spending.

The Public and Private Sector as Drivers of Adaptation Sandeep Chamling Rai Senior Advisor Adaptation Policy, Global Climate and Energy Initiative World Wildlife Fund International, Singapore http://www.wwf.sg The Public Sectorâ&#x20AC;&#x2122;s Stake in Reducing Vulnerability Adaptation and the UNFCCC Adaptation within the UNFCCC is moving in slower pace than it should to meet the challenges that are caused by climate change. In the 17th Conference of Parties (COP-17) to United Nation Framework Convention on Climate Change (UNFCCC) that took place in Durban South Africa in December 2011 we were able to get some concrete decisions on the adaptation negotiation track. Decisions included the operationalization of the Cancun Adaptation Framework by adopting decisions on the composition, modalities and guidelines for the Adaptation Committee, as well as initial guidelines for the formulation of National Adaptation Plans (NAP) and a work plan on loss and damage for year 2012. Our intention was to identify and explore possibilities on addressing the issue resulting from a slow onset of climate change impacts. Future Adaptation Challenges Although we were able to fulfil some goals of adaptation at the UNFCCC, some challenges remain. They include fulfilling the commitment done by developed country parties on adaptation financing for vulnerable developing countries; likewise support for the development and implementation of National Adaptation Plans for Least Developing countries (LDC) as well as setting up an international compensation/rehabilitation mechanism to address loss and damage (e.g. sea level rise, loss of ecosystem and its services, loss in arable land, desertification, climate induce migration).

Trust building between developing and developed countries is also one of the bigger challenges. UNFCCC has decided that the Least Developed Countries (LDC) will prepare National Adaptation Plans (NAPs) to identify their medium and long-term adaptation needs. Developed countries will provide financial and technical support for their formulation and implementation. We have to ensure that this promise will be kept. We should not repeat the same mistake that happened during the implementation of the National Adaptation Program of Actions (NAPAs) where LDC countries were asked to develop their short-term adaptation needs but lacked financial support from developed countries. This incident weakened the trust of developing countries towards developed countries. Studies have shown that the implementation of existing NAPA projects for LDC countries requires approximately 2 billion US-Dollar funding. Yet less than a quarter of total funding has been collected so far. Developed countries need to fulfil their financial commitments and build trust among the parties. In 2010, the World Bank estimated that with the approximately estimated 2째C global warming by 2050 above pre-industrial state, adaptation financing in the range of 70-100 billion US-Dollar is annually needed. However, with the current mitigation target pledge in the UNFCCC, we are likely to hit a 4째C rise in temperatures. The big challenge is to limit global warming to 2째C and to secure adaptation finance to adapt to future climate change impacts. Equally, there is a need to establish international compensation/rehabilitation mechanisms, which addresses the issues that cannot be solved by adaptation. Public sector as driver for adaptation The public sector as a driver for adaptation plays an overarching role because it can create a level playing field for climate smart investment and development that reduces failed adaptation strategies. The public sector is able to drive adaptation through appropriate responses by policy, regulation, public funding and best practices. Key areas include planning guidance and regulation (e.g. building specification for extreme weather), coastal zone management, disaster risk reduction and preparedness, early warning systems, public sector learning on adaptation, adaptation planning etc.

Adapting For Tomorrow The public sector can support and encourage multi- and cross sector collaborations and partnerships, bringing together different skills and perspectives for addressing complex and interrelated challenges. It is able to drive the need to address short-term needs; sets priorities for medium and long-term planning and support no/low regret adaptation options and pathways. The public sector has a stake in managing and addressing trade offs to ensure inter- and intra generational equity, effective and fair management of shared natural resources (e.g. freshwater) in a changing climate. The public sector is vital for supporting and sharing sound science and for communicating adaptation past experience. Moreover, the public sector is responsible for addressing the needs of the poorest and most vulnerable in society to manage and protect the natural environment and natural resource base on which mankind depends. The public sector ensures that financial and technical support reaches those who depend on it (e.g. from North to South, from national governments to most vulnerable communities and places). Private sector as driver for adaptation The private sector plays a valuable role for adaptation, in particular when it comes to innovation. The private sector has the capacity to innovate and produce new technology to adapt to change. It is important for the government (public sector) to support companies in overcoming barriers to investment, to harness resources and innovation. Civil society as driver for adaptation The civil society also plays an important role on adaptation. It can challenge, influence and hold to account, underline and fill gaps in the work of the public and private sector. Civil society drives demand, highlights needs, exerts political influence, provides and communicates impacts that follow a lessons learned approach. Conclusion Adaptation is becoming an increasing concern today, as we are not able to take effective actions to mitigate climate change. However, we have to be aware that adaptation is not an alternative form to mitigation because of the limit to adapt to any kind of climate change impacts. An effective adaptation measure involves all sectors. However, the public

sector accounts for the most important role in adaptation by building resilience and reducing vulnerability towards climate change impacts in developing countries.

Dr Nana Künkel Environment and Climate Change Division, Competence Centre for Climate Change, Gesellschaft für Internationale Zusammenarbeit, Eschborn, Germany http://www.giz.de Adaptation to Climate Change – A Case for Business? While climate change adaptation has typically been dominated by public sector interventions, successful adaptation will depend on the engagement of both public and private sector. In many developing countries, small- and medium-sized enterprises (SME), as well as the supply chains and production facilities of large companies face multiple climate-induced risks. Climate change poses not only physical risks to properties and facilities but also disrupts supply chains and the demand for products. However, a risk for one business may represent an opportunity for another. The World Bank estimates a demand of up to 171 billion US-Dollar for new adaptation products and services. Useful approaches seem to be: 1. Understanding risks for private sector and offering tools to manage them The incorporation of risk-management into businesses that are vulnerable to climate change (e.g. water scarcity for agribusi- ness, food and beverages industry) is one pathway to adaptation in the private sector. Climate-related risks are increasingly evaluated by the insurance and reinsurance industries, resulting in new products and the identification of new client groups. Many of the new business activities will be found at the “bottom of the pyramid” – i.e., at the start of the supply chain, often in developing countries. Examples include Cafédirect, the UK’s largest fair-trade coffee and tea company, which has worked together with GIZ to train its suppliers in adaptation methods. Climate Proofing for Development is one tool that can support companies in adaptation risk assessment.

Adapting For Tomorrow 2. Understanding business opportunities and identifying promising fields of action A study commissioned by GIZ identified the following promising fields of action for businesses: » raising agricultural productivity, » information and communication technologies, » index insurance and financial tools, » decentralized services for water and energy and » disaster preparedness and infrastructure. The private sector can play an important role in disseminating technologies that assist other actors in adapting to climate change. GIZ is currently preparing a training that will help businesses in developing countries create and deploy new products and services that support adaptation. 3. Promoting innovative technologies GIZ pilots incentive mechanisms for early action and supports pilot measures that demonstrate the effectiveness of innovative technologies for climate change adaptation. An example for a public-private partnership is the “buried diffuser”, developed at the Arid Regions Institute in Tunisia and manufactured and distributed by Chahbani Technologies (Chahtech). This underground irrigation technique enhances irrigation effciency and can thus play an important role in regions that increasingly face climate-related water shortages. GIZ and Chahtech are cooperating to improve agricultural, touristic and urban water management in the Tunisian Médenine region. In addition, GIZ has launched the IMPACT Business Award to reward enterprises that showcase outstanding business models in combating climate change. Over 130 submissions were received, with 30 per cent addressing adaptation and 70 per cent, mitigation of greenhouse gases. Particularly in supply chain or value chain settings, approaches that bring together stakeholders from different stages of the chain on the risks and opportunities stemming from climate change and that stimulate joint action across different stages hold much promise.

Humberto Delgado Rosa Director for Mainstreaming Adaptation and Low-Carbon Technology DG Climate Action, European Commission http://ec.europa.eu/clima Opportunities and Risks of Climate-Resilient Growth It is my pleasure and honour to address you in this International Conference, for which the Friedrich Naumann Foundation is to be praised. In replacing Director-General for Climate Action, Jos Delbeke, and as recently appointed Director for Mainstreaming Adaptation and Low Carbon Technology, this gives me the opportunity to share with you the vision we in the European Commission have on how adaptation should be developed in Europe, and on the role of both the private and the public sector to promote it. Let me first refer to the reasons why adaptation has an increasingly important role to play. Not many years ago, adaptation was more a priority for developing countries, in particular those most vulnerable to climate impacts and less prone to have many emissions to reduce. For developed countries, including the EU, the attention was more on mitigation. That has changed considerably, with adaptation tending to be seen as a full second pillar of climate change policy. Looking to the recent history of international climate change negotiations, one can recognise the climax point reached in 2007, when the Bali Roadmap was approved, under great public attention brought from the IPCC reports, the Stern Report, Al Gore's film and book, and the Nobel Peace Price. An anticlimax followed in 2009, when the Copenhagen Accord left everyone with a sense of deceived expectations, in spite of the direct involvement of over 100 heads of state and government. The CancĂşn and Durban Conferences that followed reopened the prospects for a new global deal to be forged up go 2015, but it is unlikely that a new climax is to be attained in the climate change international arena in the coming years. This is where the role of adaptation can fill in a relevant role for climate change policy. While the climate keeps degrading from delayed global action, the consequences of climate change and of extreme weather events increase, and so do the inherent risks, costs and losses. To act in order to protect lives and livelihoods and to turn our societies more cli-

Adapting For Tomorrow mate resilient will thus gain an increasing sense and appeal. Furthermore, the benefits of adaptation action are more prone to be grasped by the public opinion, whenever floods, droughts, forest fires, coastal erosion or heat and cold waves strike nearby, than are the benefits of reducing emissions. The adaptation rewards are reaped locally, while the mitigation rewards are reaped globally. Thus, and in sum, adaptation will have a fundamental role to play, not only preparing to withstand a harsher climate, but also to keep conditions for political momentum on the climate crisis. The rationale for adapting comes from the fact that even if the world would cease all greenhouse gas emissions tomorrow, still we would need to adapt to the unavoidable adverse effects of climate change. But when it comes to justify action, we should keep well in mind that the costs of early action outweigh by far the costs of inaction or of delayed action. This cost-benefits side of adaptation is something we should always keep in mind when promoting climate strategies and policies. To give you one example picked from the estimates for inland flooding in a study commissioned by the EC (ClimateCost project), a minimum protection level against floods in Europe is estimated to cost around 3 billion euro per year, while it could result in about 20 billion euro per year of avoided costs. These kinds of benefits, together with the potential benefits for growth and jobs that lay in adaptation action, make a strong case that adds to risk avoidance. After the adoption of the White Paper on Adaptation in April 2009, in the European Commission we are now in the implementing phase, with a view to have a EU Adaptation Strategy adopted by March 2013, covering the next 10 years. One of the implementation actions run by the EC is mainstreaming climate adaptation across the range of all relevant EU policies and financial instruments. For instance, the EC has proposed that at least 20 % of the EU budget expenditure under the new Multiannual Financial Framework for 2014-2020 is to be spent on activities to tackle climate change, be it as mitigation or as adaptation. As a substantial part of the EU budget is implemented and co-financed by the Member States, such mainstreaming of climate action will have a considerable multiplier effect and will direct national funding towards climate goals. However, estimates show that public available funds will not be sufficient without private investment.

In order to leverage private investments it is first important to address favourable business conditions. Key barriers to private investment in adaptation are a difficult business environment, project risks, inadequate access to finance and insufficient risk-adjusted returns. Public interventions can address these barriers by supporting risks-mitigation instruments, promoting better access to finance and giving revenue support. The potential for Public-Private Partnerships (PPPs) is also to be explored. PPPs can be a useful tool to combine financial and knowledge resources from both the public and private domains on specific projects. National and local-level adaptation and disaster risk reduction, as well as management plans, could specify areas where private sector investment and innovation are deemed essential, and identify a clear role for the private sector to contribute to the shaping of a climate resilient society and economy. When developing guidelines for strategies and plans on adaptation, we intend to take this into consideration. It should be kept in mind that business and private activity as such are affected by climate change, and thus benefit from adapting. In addition to the physical risks it may bring, climate change will affect areas such as supply chains, logistics and raw materials costs, in turn impacting on companies' profitability. Some economic activities will be more affected than others, thus it is crucial that the private sector increases its awareness and self-assessment capacities, in order to integrate climate adaptation considerations in overall risk assessment and management plans. The private sector should aim at gaining knowledge and capacities to deal with climate risks, and at reaching an adequate level of autoadaptation. In this context, strengthening the knowledge base for adaptation emerges as one of the fundamental orientations of the EC's White Paper. To fulfil it, we will be launching in March this year the EU Climate-Adapt information platform, the web-based clearinghouse mechanism on adaptation. It will contain information on expected climate impacts, vulnerable sectors and regions, national and regional strategies and action plans, case-studies on adaptation and adaptation tools, projects, reports, guidelines, etc. Although it is oriented towards policy-making, private actors will also find there a wealth of information and ideas for their own adaptation activities.

Adapting For Tomorrow One further important aspect is to integrate climate risk assessment and prevention into the project design and business operations, as that can reduce costs and increase benefits in the medium and long term. We have to ensure that new infrastructure and other key-assets and activities are shaped in a climate resilient way. That is why we in the EC intend to give priority to the revision of standards for infrastructure, and to the development of guidelines for project management and other aspects of climate risk assessment and prevention. The enhancement of the functioning of the insurance market for it to better serve and take into consideration adaptation is also a priority. Through adequate premium policies, insurance can induce and enhance the appropriate deployment of investments and actions for adaptation by the private sector. Apart from understanding and removing the barriers that may reduce private action in adaptation, we are also keen in fostering the business opportunities that adaptation may entail for early movers. The benefits of adaptation measures for companies can actually be twofold, both from avoided costs and from direct revenues that may arise from adaptation activities, services and technologies that can be profitable. What we want to achieve from our goals of promoting and mainstreaming adaptation is not only to help build a society that is more resilient and more sustainable. We also want to grab the opportunities and no regret measures that adaptation has to offer, contributing to the smart growth and green economy that underlies the strategy for Europe up to 2020 and beyond.

III. Resource Management: Transatlantic Experiences – New Ideas and Innovative Solutions for Developing Countries? International Conference, San Francisco, 15 until 18 March, 2012

Sustainable Development Julian Morris Vice-President, Reason Foundation, Washington, D.C., United States http://reason.org Property Rights and Sustainable Development In The Other Path, Hernando de Soto, Enrique Ghersi and Mario Ghibellini documented the plight of their fellow countrymen in Peru, most of whom are denied the right to own and transact formally. They must, instead, rely upon informal mechanisms to enforce contracts, property rights and other relationships. Whilst such informal mechanisms – customs and norms, for example – work well for groups that are relatively homogenous and where there is little trade with outsiders, they impose significant constraints on the ability for groups to improve their lot. Societies that have adopted formal institutions – such as property rights, markets, contract law, tort law, and trademarks – have tended to do much better economically and socially than societies that have relied primarily on informal institutions. Property rights are capital; they give people incentives to invest in their land and they give people an asset against which to borrow, so that they might become entrepreneurs. As in Peru, the 700 million rural poor in India are not oppressed by multinational companies. Most of them have

Resource Management – New Ideas and Innovative Solutions never even heard of multinational companies and those that have probably dream of working for them. No, India’s rural poor are oppressed by tenure rules, which make it difficult for them to rent, buy or sell property formally. Land transactions typically involve paying large bribes to local officials, who have a vested interest in maintaining the status quo. Property rights are created in order to resolve competing claims over resources. Thus, if 10 men all graze their cattle on the same piece of land and there are no rules governing how much each man can graze, then each man has a strong incentive to graze as much of the available land as possible. Under such a system – known as ‘open access’ – the cattle will quickly denude the land and, in the absence of free land on which to move the cattle, will die. Historically, open access has been a rarity, occurring only when land is so plentiful that ownership is not necessary, or when people are prevented from owning property. In most cases, before the tragedy occurs, the users of the land would see the advantage of either dividing it up into individual plots or creating rules for using it that reduce the likelihood of denudation. In either case, the land has been privatised – made the exclusive property of one or more people. If the land is split into plots it becomes ‘several’ or ‘individual’ property; if the owners agree to common rules it is called ‘common’ property. Privatisation is expected to occur when the costs of exclusion (that is, the costs of limiting access to a piece of previously open land, for example by fencing and policing) are equal to or less than the external costs (which, in this case, means the costs associated with the denudation of the land). But the costs of exclusion will depend upon the exclusion technologies available. Wherever there are externalities present (such as the threat of encroachment by cattle belonging to other ranchers), users would have an incentive to produce new and cheaper exclusion technologies. So, over time, we would expect more and more land to become privately owned and the sum of external costs to decline precipitously. Land that is owned privately (whether individually or in common) will in general be better managed than land that is unowned or owned by the state. This is because the owner(s) know that they will reap the benefits from any investments made in the land, so they have stronger incenti-

ves to make those investments. Going back to our cattle-rancher example: those who graze more cattle than their land can support will soon cease to be cattle ranchers. That creates a strong incentive to discover the ‘carrying capacity’ of the land – and to increase it through new technologies. Entrepreneurial peasants constantly introduce new crops and production methods, creating an environment of diverse agriculture. Technological innovation not only enables peasants to improve their lot, it also benefits those with whom they trade by lowering the cost of purchasing food and other goods and reducing the risk of famine. But agrodiversity will be stifled if those who might innovate new technologies are not allowed to benefit from the investments they make through the ownership of property. The individual’s incentive to invest in his land and innovate new methods of production will be greater when he can own and exchange property. Thus, Michael Stahl 26 concludes: ‘At the farm level, the presence or absence of clearly defined property rights makes the difference between active interest in investing in soil conservation measures or apparent indifference to environmental degradation’ Individual property rights also encourage pollution prevention. In the English common law for example, if the owner of property A emits a substance that causes damage to property B, then the owner of A must compensate the owner of B for the harm caused. Thus, even at the height of the industrial revolution a smelting works in an industrial area was enjoined for causing damage to shrubs and trees on a nearby property 27. There remains an ancient maxim, sic utere tuo ut alienum non laedas, roughly translated as “so use your own as not to harm another.” Widely applied in the courts of law this rule would protect not only the property of the owner but also neighbouring properties and even the environment – and society – as a whole. Property also begets wealth. Once a person owns property, he or she can use it as collateral against a loan. Because such collateral gives the lender security, they will be willing to offer loans at lower rates. So property

26 Stahl, M. (1993): ‘Land Degradation in East Africa’, Ambio, Vol. 22, No. 8, December, pp. 505-8. 27 St Helen’s Smelting Co v Tipping (1865) 11 All ER 1483.

Resource Management – New Ideas and Innovative Solutions reduces the cost of becoming an entrepreneur. Of course, some of these entrepreneurs will fail and they may have their property repossessed by the lender. But at least they will have had the opportunity to try to escape from poverty and, of course, most will be no worse than if they never had the property in the first place. In any case, many will succeed in their endeavours. Some may become wealthy; most will simply be less poor.

Professor Lyuba Zarsky Associate Professor, Graduate School of International Policy and Management, Monterey Institute of International Studies, Monterey, United States http://www.miis.edu Can Extractive Industries Promote Sustainable Development? Extractive industries, which are inherently unsustainable, can be considered to contribute to sustainable development if they generate “net benefits” – an excess of benefits over costs-to local communities and host governments. Given complex economic, environmental, social and cultural trade-offs – and the fact that local communities bear virtually all the costs – local communities must be privileged in assessing “net benefits”. Key elements to determine whether a mining project is likely to bring net benefits over both the operating and post-closure phases are: 1) Evidence of free, prior and informed consent 2) Level and distribution of mine earnings 3) Assessment of total economic benefits (wages, procurement, multiplier effects) 4) Investment of royalties and taxes in building productive capacities that can sustain livelihoods after mine closure 5) Environmental risk, assessed by the adequacy of company management and government oversight

My co-author Leonardo Stanley and I used this framework to assess the controversial Marlin gold and silver mine in the highlands of Guatemala. In 2005, local indigenous communities rejected the mine by a vote of over 95 per cent in special plebiscites called consultas. In a report published by the Global Development and Environment Institute, we found that Guatemala captured only 15 per cent of mine earnings in royalties and taxes between 2006 and 2009. Law sets Guatemala’s all-minerals royalty rate at only 1 per cent. By comparison, South Africa sets a royalty rate of around 28 per cent. We found that economic benefits were significant, especially if unverified company data on local procurement is accurate. The mine generates about 2000 jobs, about half of which go to locals. Data constraints made it impossible to assess indirect jobs and multiplier effects but based on case studies elsewhere, they could be substantial. However, the jobs will dry up when the mine closes and we found little evidence that mine revenues are being invested in building sustainable productive capacities. In fact, there is a widespread general lack of transparency and fiscal accountability. Environmental risk stems primarily from the potential for widespread contamination of water by heavy metals in an agricultural area. We found that risk is high because government regulatory oversight is weak and there is no third party monitoring of water quality. Company management of cyanide is up to a good standard but there is no public mine closure plan and only 1 million US-Dollars to put towards mine closure. Moreover, the mine was built to specifications that did not take climate change into account. High-intensity floods could breach the mine’s tailings pond and increase heavy metals seepage from waste rock. The number of high-intensity floods in Guatemala between 1990-2009 was nearly 300 per cent greater than between 1980-1989. We conclude that the Marlin mine is highly unlikely to generate “net benefits” for Guatemala and that the capture of net benefits requires robust governance capacity by host states.

Resource Management â&#x20AC;&#x201C; New Ideas and Innovative Solutions Professor Maximilian Auffhammer Associate Professor, Department of Agricultural and Resource Economics, University of California, Berkeley, United States http://are.berkeley.edu The Carbon Tax â&#x20AC;&#x201C; Solution or Scenario? Energy, Air Quality, Climate Change and Development are highly pivotal issues when it comes to transatlantic experiences in this sector in the search for new ideas and innovative solutions for developing countries. Emissions of greenhouse gases continue to increase at a record pace, even in the face of a Global economic and financial crisis. Much of this growth comes from rapidly developing countries. Chinaâ&#x20AC;&#x2122;s CO2 in the year 2010 were 142 per cent higher than its emissions in 2000. To put this into perspective, the growth in emissions from 2009-2010 was equivalent to the emissions of Spain. If we just added the increase in emissions over year 2000 emissions over the past decade, this is almost equivalent to the total annual emissions of the US. If we are to slow down global growth of greenhouse gases, we have to rely on effective policy. Given the lack of success in designing a follow up agreement to the Kyoto protocol, the search is on for feasible and incentive compatible alterna-tives. A significant carbon tax imposed by the G20 countries is such a solution. Developing countries find it difficult to collect income taxes, which are distortionary. A carbon tax is easily collected upstream and non-distortionary. Further, countries participating in such a scheme could enforce this tax with their trading partners by enforcing a border adjustment.

The American Debate on Energy Management Robert Holste Deputy Director, Government Relations The Pew Charitable Trusts, Washington, D.C., United States http://www.pewtrusts.org Clean Energy Accounts for National Security In the United States, the debate on energy management has led to the development of the Pew Clean Energy Program to accelerate the clean energy economy over the next five years for national security, economic and environmental benefits. The idea is to bring together economic, science and military experts to increase awareness of the need for national energy policies in service of our economy, national security and climate and to make the US more energy independent, prosperous and secure. These key changes to US energy policy are foreseen to be adopted in four sectors, which are industry, utilities, transportation, R&D. However, political frameworks for these goals are needed. Pewâ&#x20AC;&#x2122;s objectives are to increase (fuel) economy and encourage the adoption of electric vehicles, to foster the US innovation through expanded energy R&D and to ensure that the electric and industrial sector becomes cleaner and more efficient. Pew links clean energy with national security. The investment trends in both global and domestic economies require complying with the Department of Defense (DoD). According to General David H. Petraeus, â&#x20AC;&#x153;by reducing demand for fuel we will improve operational capability, reduce risk to our forces, and ultimately, strengthen our security.â&#x20AC;? Despite all operational risks and costs, the DoD has a long history of innovation, scale and purchasing power with partners in the private sector, research and innovation in the development system. Pew mainly commits to two approaches. Firstly, economic opportunities result from the emerging domestic and clean energy economy. Secondly, national security risks are associated with US energy posture. Job growth in the clean energy economy outperformed overall job growth in almost

Resource Management – New Ideas and Innovative Solutions all states in the US between 1998 and 2007. The emphasis of clean energy investment that comprises wind, small-hydro, biomass and waste-to-energy, solar, geothermal, marine can be measured in GDP: when comparing Germany and the United States, Germany is scaled at 1.4 per cent, while the US being at 0.23 per cent and France at 0.15 per cent: a lot can be done in future.

Carlton Carroll Deputy Director of Media Relations American Petroleum Institute, Washington, D.C., United States http://www.api.org Can Yesterday’s Energy Be Tomorrow’s Relief? There are two views of the future of oil and natural gas: one view is that it is “yesterday’s energy” and that we need to focus all efforts into renewable energy. The other view is that oil and natural gas is the only proven energy that we can rely on for abundant and affordable supplies. The truth is somewhere in between: We need to continue producing oil and natural gas as we look new sources of energy. America’s oil and natural gas companies are spending an enormous amount of money and resources developing the alternative energy sources we will use in the future. In fact, they spend more than the U.S. government and nearly as much as the rest of the private sector combined. But by the government’s own estimates, we will continue to rely on oil and natural gas for more than the majority of our energy well into future. In fact, the US will require 10 per cent more energy in 2035 than in 2010 with more than half of it to be met by oil and gas. Also, the US oil and natural gas production is increasing as a result of technological innovation. Because of this continued dependence, controlling the price of oil seems to be on the minds of our politicians. Many factors affect the price of oil, such as geopolitical risks, weather, inventories, global economic growth, speculation, hedging, investment, exchange rates and inflation. But in the end, it comes down to supply and demand.

The U.S. is a major producer of oil and natural gas and has the power to increase this supply substantially because of new technologies and discoveries. In fact, with new production coming online in the U.S., Canada, and Brazil, many analysts are saying the energy superpowers are now shifting away from OPEC and to the Americas. And there are many advantages to a healthy U.S. oil and gas industry that provides the energy we need today while also developing the resources that we will use tomorrow. The industry already supports 9.2 million well paying jobs in the U.S. and pays the federal government 86 million US-Dollar a day in revenues. These companies are owned by millions of Americans who have pension funds, 401(k)s, IRAs and other investment accounts, so they do well when the industry does well. However, the industry can do a lot more for the economy, for government revenues, and for U.S. energy security. Eighty-seven percent of federal offshore acreage is currently off limits to development. The Obama Administration recently denied the Keystone XL pipeline that would bring new supplies of oil from Canadaâ&#x20AC;&#x2122;s oil sands. And now ten federal agencies are considering new regulations on hydrologic fracturing, the technology that makes much of the new development possible. Instead of raising taxes on an industry that already pays at much higher rates than other industries, we advocate that the administration allow more access to Americaâ&#x20AC;&#x2122;s vast resources for responsible development. This would lead to more government revenue in the log run, the creation of up to one million new American jobs, and an increase of U.S. production that would allow us to get 100 percent of our liquid fuels from North American sources in just 15 years.

Resource Management – New Ideas and Innovative Solutions Dr Corey Johnson Assistant Professor, Transatlantic Academy, German Marshall Fund of the United States, Washington, D.C., United States http://www.gmfus.org Tim Boersma PhD Student, Transatlantic Academy, German Marshall Fund of the United States, Washington, D.C., United States http://www.gmfus.org The Genie is Out of the Bottle: Shale Gas in the Security Debate Examining the global shale gas potential according to data by the Energy Information Administration shows that next to the United States and other parts of North America, also China, Argentina, South Africa and parts of Europe have great potential for future shale gas exploitation. In the United States the “genie” clearly is out of the bottle. Enormous growth of shale gas extraction are predicted, though geological and economic uncertainties remain and make long term impacts of shale gas on the market for natural gas extremely difficult to predict. Some interesting ongoing debates are whether or not the U.S. should export some of its gas in the form of liquefied natural gas (LNG) and whether more gas should be used to generate electricity. Opponents of exports argue that the gas should be used for domestic consumption. Either way, with wellhead prices being as low as they currently are, something needs to change in order to incentivize companies to invest in drilling new wells. Furthermore, the states in the U.S. clearly show different speeds of adoption of shale gas exploitation. Texas, Oklahoma and Pennsylvania were mentioned as early adopters. These states are currently developing their regulatory regimes, to counter some of the still existing environmental concerns that have been linked to shale gas, such as groundwater contamination, methane leakage and anthropogenic seismicity. Other states, such as New York and Delaware, are contemplating whether or not to extract the alleged resources under their soils.

Some areas in the European Union show potential for shale gas, most notably Poland, France and parts of Scandinavia. But shale gas will not be developed in the short term in Europe. Currently a dozen companies are investigating cores they have gotten out of the ground, in particular in Poland, which is the only early adopter at this time. Even if the reserves prove to be commercially extractable, many obstacles will have to be overcome before large-scale development can take place. On the other side of the spectrum, France and Bulgaria have outright banned the technology used to extract shale gas, while many EU member states – such as the United Kingdom, Germany and the Netherlands – are contemplating and doing additional research on the environmental and societal concerns. Meanwhile European institutions are deliberating what to think of shale gas – if anything at all – and whether the existing regulatory frameworks are sufficient to cover the environmental concerns mentioned before. All this leads to a broad research agenda on the leakage of methane and fracking fluids, the overall carbon footprint of shale gas (as compared to for instance coal or conventional natural gas) and seismicity caused by reinjection of flow back water into the well. Furthermore it is important to study the ripple impacts of shale gas on renewable energy ambitions, with and without obligatory renewable legislation in place.

Water Management Rachel M. Dawson Legislative Representative, Water Resources Team, National Wildlife Federation, Washington, D.C., United States http://www.nwf.org A Question of Water It has been said that our search for safe, reliable sources of fresh water could one day soon rival our search of oil. For many developing countries, there is often no greater concern than securing clean sources of water. As we face growing human populations and a changing climate, it is important to recognize that water is a finite resource, and could present tremendous challenges for future health, security, and environmental well-being.

Resource Management – New Ideas and Innovative Solutions Recently, the 6th World Water Forum was held in France, and brought together delegates from more than 180 countries to address some of the world's biggest water-related challenges. French President Nicolas Sarkozy said, “There will be no sustainable development while the question of water remains unsolved.” Yet, these challenges are likely to persist globally without significant and coordinated planning and action. The situation in the United States is representative of nearly all major water concerns across the globe. Our country experiences regular incidences of scarcity in the West, frequent flooding and Midwest, protracted legal battles over water rights in the south and aging infrastructure in the East. Water supplies in the United States must meet the varying demands of agriculture, energy development, transportation and manufacturing – and still provide abundant and safe drinking water for a growing population. Lastly, I would like to highlight a succinct summary statement from the Western States Water Council, who recently released a “Vision on Water” at a conference in Washington, DC last week. The state, “A secure and sustainable future is increasingly uncertain given our climate, aging and often inadequate water infrastructure, limited knowledge regarding available supplies and existing and future needs and uses, and competing and sometimes undefined or ill-defined water rights. Effectively addressing these challenges will require a collaborative, cooperative effort among states and stakeholders that transcends political and geographic boundaries.”

Thomas W. Beauduy Deputy Executive Director & Counsel, Susquehanna River Basin Commission, Harrisburg, Pennsylvania, United States http://www.srbc.net Guarding the Susquehanna River Basin Responsible, sustainable water resources management is a societal challenge that touches every corner of the globe. Like other resource management issues, there are cultural, political, economic and environmental factors interwoven into the fabric of that challenge. And while there are significant benefits to be derived from the proper manage-

ment of water resources in any free market society, especially those related to economic security, there is nonetheless an important governmental role in providing the framework for long-term sustainable utilization of the resource, rather than destructive exploitation. In the end, the framework is really a governance issue, and thought needs to be given in shaping or evolving an institutional framework that fosters or incentivizes that long-term sustainability. The Susquehanna River Basin Commission is a case in point. Established pursuant a federal-interstate compact, the Commission is vested with the authority and responsibility to manage the water resources of the Basin at a major watershed scale (approximately 71,000 square kilometers) through a power-sharing arrangement under which the member jurisdictions (Pennsylvania, New York, Maryland and the Federal government) delegated their respective sovereign authorities over water resources management to the Commission. In short, the Commission represents a forum for the joint exercise of that sovereign authority to facilitate holistic management at a natural watershed scale, rather than at a political jurisdictional scale. The Governors of each of the member states, and the President of the United States, each appoint a Commissioner. Through their respective commissioners, the four jurisdictions join in making the appropriate management decisions for the utilization and conservation of the Basinâ&#x20AC;&#x2122;s water resources. Utilizing its authority to allocate the waters of the Basin, not only to individual water users but also between and among the jurisdictional members, the Commission has developed a regulatory program governing ground and surface water withdrawals, and consumptive use of that water. Under the program, the Commission has established appropriate thresholds and standards to ensure sustainable utilization of the resource, avoid societal or environmental impacts from improper exploitation, and provide the uniformity and consistency necessary to protect public and environmental health, and at the same time facilitate economic growth. It is a governance structure that simultaneously respects its sovereign members and promotes management policy at a larger basin scale. At that scale, its standards and incentives are appropriately tempered to promote sound, responsible management of the resource, and allow the market to decide how best to achieve them.

Resource Management – New Ideas and Innovative Solutions Joe Navari Real Estate Specialist, Ducks Unlimited, Inc, Rancho Cordova, California, United States http://www.ducks.org Between Waterfowls and Water Rights – Managing Wetlands Ducks Unlimited (DU) is an international non-profit organization working to protect, restore, and manage wetlands and associated habitats for North America’s migratory waterfowl. These habitats also benefit other wildlife and people. In much of the Western US DU is not only working to protect the landscape, but also the water on that landscape. The water is a fundamental part of the larger ecosystem especially for waterfowl. Much of the western US receives less than 10-18 inches of annual precipitation thus water is a scarce commodity for all living things throughout the Western United States. In California most of the rights to use water are owned by agricultural landowners. These rights allow the landowners to remove water from natural flows for activities associated with farming, drinking, manufacturing, or for wildlife uses. This is the simplest right often referred to as a „riparian right“. Some large landowners have adjudicated water rights. Adjudicated water rights supply water as part of a judicial process which distributes water to a collective of landowners most often represented by a water district or water company. These adjudicated water rights are also called „appropriative water rights“. The State of California Water Resources Control Board manages and enforces these rights in the State. DU acquires lands that are beneficial for the future of waterfowl in the West. In order to have waterfowl you need water, thus all the property we protect must also have good water rights. DU is looking for properties that have the necessary water to support large populations of migratory birds. Once a property is found and it is deemed important to migratory birds, DU must now find funding to purchase the property or purchase an interest in said property. Funding for the purchase of land and/or water comes from many sources including grants from State and Federal agencies, private foundations, environmental mitigation, and private individuals. Once a property

is identified we work to get the project funded through one or sometimes multiple sources identified above. This funding is often in the millions of dollars. DU acquires both fee simple interests and conservation easements. A fee simple interest in land is just that a property that is owned by a person or company that takes title to a deed of ownership. Conservation easements are deeds that read like contracts where by DU can purchase individual landownership rights from a fee simple owner. For example, Farmer Joe would like to sell a conservation easement to DU for 100,000 US-Dollar. For consideration of 100,000 US-Dollar farmer Joe sells the rights to subdivide the property, the agricultural right, the right to sell his water. The extinguishment of these rights makes up the value of the conservation easement. Now DU owns these rights and can protect the existing water, wetland or grasslands associated with the property. Every conservation easement is different and allows or disallows certain management practices to benefit the conservation purpose written into the easement. Conservation easements can be written for any duration, but DU only does easements in perpetuity.

Jerry G. Schulte Manager, Source Water Protection and Emergency Response, Ohio River Valley Water Sanitation Commission (ORSANCO), United States http://www.orsanco.org Biodiversity Instead of Pollution: The Ohio River Valley Water Sanitation Commission The Ohio River Valley Water Sanitation Commission (ORSANCO) was established on June 30, 1948 to control and abate pollution in the Ohio River Basin. ORSANCO is an interstate commission representing eight states and the federal government. Member states include: Illinois, Indiana, Kentucky, New York, Ohio, Pennsylvania, Virginia, and West Virginia. The Ohio River is 1,580 km long with a catchment of 528.358 km2. It is a multi-use resource serving water based commerce, as well as drinking water and industrial water intakes. It receives waste water from more than 600 permitted discharges and 1,300 combined sewage

Resource Management â&#x20AC;&#x201C; New Ideas and Innovative Solutions overflows (during rain events) and supports 40 coal fired electric power plants. The Ohio River has a diverse habitat that includes islands and backwaters and has a fishery comprised of over 150 species of fish useful for recreational and commercial fishery. ORSANCO operates programs to improve water quality in the Ohio River and its tributaries including: setting waste water discharge standards; performing biological assessments; monitoring for the chemical and physical properties of the waterways; and conducting special surveys and studies. ORSANCO also coordinates emergency response activities for spills or accidental discharges to the river, and promotes public participation in programs, such as the Ohio River Sweep and the River Watchers Volunteer Monitoring Program. ORSANCO is governed by 27 Commissions (3 from each state, appointed by their respective Governor, and 3 from the federal government, appointed by the U.S. President). ORSANCO is funded by annual state contributions and federal grants with a total annual budget of 3.7 million US-Dollar. While this Commission was created to abate water pollution and address water quality issues, it is currently evaluating its possible role in interstate water resource management. As water becomes an increasingly valuable commodity, and, as only a small percentage of the Ohio River municipal and industrial interests use flow, a large quantity of water exists in this resource that could be diverted and used away from its original course. Establishing one entity to facilitate discussions between states and federal agencies regarding water allocation and withdrawals, inter-basin transfers and drought and flood management plans could be a very useful role where in ORSANCO could provide additional services to its member states.

Waste Management Anne Steinhauer Community Relations Manager, Napa Valley Vinters, St. Helena, California, United States http://www.napavintners.com Napa Valley Vinters as an Example of Local Sustainability Practices I represent the Napa Valley Vintners, a non-profit trade association, and spend much of my time focusing on sustainability issues. To quote Tip Oâ&#x20AC;&#x2122;Neil former Speaker of the United States House of Representatives â&#x20AC;&#x153;all politics are localâ&#x20AC;? and this sentiment fits sustainability practices perfectly. If we do not contribute at a local level to green initiatives we cannot bring change at a global level. In my work at the Napa Valley Vintners I oversee the Napa Green programs. These programs focus on improving the Napa River watershed by reducing fine sediment discharge and maintaining natural habitat. In the winery we work on changing the employee mentality in turning off the lights, turning off the water and putting the right containers in the right garbage cans. Napa Valley wineries have around an 85-90 per cent recycling rate including Vineyard waste for composting. The California state-wide average is around 60 per cent. Our two waste management companies are now moving into food composting and we are seeing organic matter in our landfill drop significantly.

Resource Management – New Ideas and Innovative Solutions Scott Hutchings Manager - Government and Public Affairs WM Waste Management – Colorado & Utah, United States http://www.wm.com Conversion Technologies and a Changing Industry: Innovation, Sustainability and the Future of Waste Waste Management is North America’s largest waste provider and recycler. We are leading the industry in sustainability. We believe we do not manage “waste,” we manage “resources.” We focus on developing sustainable solutions to materials management. These solutions must be environmentally and economically sustainable. We are striving to minimize our customers’ and our own impacts on the environment and to maximize the value of the materials we manage. WM is working to improve the understanding of new technologies and facilitate clean energy programs. We hope to gain support for programs that will reduce our reliance on foreign oil, reduce GHG emissions and create local economic development opportunities. This industry is evolving quickly. The technologies are likely to change as they develop. WM is investing in clean energy and technologies. These technologies will help to create more value from the material we manage. They will generate renewable energy and renewable energy that can reduce our reliance on foreign oil while reducing greenhouse gas emissions. We are working to reduce the conflicts between solid waste policies, state renewable energy policies, and federal renewable fuel goals. We are working to educate regulators on the technologies and opportunities for GHG emission reductions. There is no “single solution.” We expect to develop a suite of technology solutions over time. We hope to work with our local community partners to divert more material to higher value uses – by recycling more, creating energy and renewable fuel.

Joe McDermott Councilmember, King County, Washington, United States http://www.kingcounty.gov Pioneering Resource Efficiency: From Recycling to Biosolids Waste prevention, reuse, and recycling of materials have been and continue to be a large part of resource initiatives in the Northwest. The programs are directed towards waste prevention and recycling with an increasing focus on product stewardship, sustainability and green building. King Countyâ&#x20AC;&#x2122;s recycling rate is approximately 50 per cent through recycling opportunities for fluorescent lamps and electronic products, promoting less junk mail and phone books, and creating the Ecoconsumer Program, school education and technical assistance programs, and developing new markets for recycled materials. In 2010, nearly 1.2 million tons of materials were recycled and composted in King County. We have also seen success with product stewardship, a strategy that encourages environmental product design and shifts responsibility to producers for financing and managing products at their end of life. Products impacted by the strategy range from electronics, fluorescent tubes and bulbs to pharmaceuticals, paint, phonebooks, batteries and carpets. Future efforts will focus on increased recycling of paper, organics, metal, plastic film and bags as well as wood. King County has a Green Building Program that promotes green building techniques through grants, technical assistance, hands-on training and information. We have a green building and sustainable development ordinance that applies to all county-owned and county-financed buildings. There is also a lot of outreach to the building sector. King County also converts waste resources to energy with a landfill gas processing plant. The Cedar Hills Regional Landfill is one of the largest landfill gas processing facilities in the nation. The facility takes gas from decomposing garbage buried at the landfill, cleans it and transfers it to a nearby natural gas pipeline. The role of landfill gas to energy is major as it turns waste into an energy asset for the next 30 to 40 years. The major advantage is that previously wasted landfill gas is being used to generate power thereby reducing greenhouse gas emissions and generating revenue for the countyâ&#x20AC;&#x2122;s Solid Waste Division.

Resource Management – New Ideas and Innovative Solutions King County has been a leader in biosolids in the United States, producing biosolids from solids extracted during the wastewater treatment process for the past 40 years. Biosolids are a nutrient-rich marketable soil amendment that safely returns carbon and nutrients to the land. Biosolids produced by King County are called Loop and are used in private and public forests and to produce dry land wheat, compost, and hops. Biosolids are a safe, sustainable alternative to synthetic fertilizer with a proven ability to improve soil structure, reducing runoff and erosion. The County receives revenue from agriculture products based on the fertilizer value of biosolids delivered. The county’s Wastewater Treatment Division also creates resources from wastewater by fueling some of its operations through energy recovery and producing reclaimed water.

Heidi Sanborn Executive Director, California Product Stewardship Council, Sacramento, California, United States http://www.calpsc.org Extended Producer Responsibility – Another Polluter Pays Principle? The California Product Stewardship Council (CPSC) has the mission to shift California’s product waste management system from one focused on government funded and ratepayer financed waste diversion to one that relies on producer responsibility in order to reduce public costs and drive improvements in product design that promote environmental sustainability. The AB 939 (1989) – Integrated Waste Management Act created firstly, waste hierarchy in the order of source reduction, recycling and composting, transformation and landfill disposal. Secondly, it puts recycling goals on local government, amounting to 50 per cent in the year 2000. Landfill disposal bans were on aerosol cans, E-waste, fluorescent light bulbs and so on. In 2006, the Universal Waste Ban prohibited to reduce volume, toxicity and illegal disposal, to create collection and recycling options to place an enforcement burden on local government, which raised the cost burden for rate- and taxpayers. The illegal disposal rose dramatically.

The Strategic Directive 5 in 2007 the Department of Resources Recycle and Recovery (CalRecyce) called for fostering cradle-to-cradle producer responsibility. In following extended recycling fee systems this means the focus moves to the brand owner, who makes design and marketing decisions, which comes down to the principle of extended Producer Responsibility (EPR). However, this system never achieved source reduction. Consumers, taxand ratepayers have had enough cost increases. Advanced Disposal Fees (ADFs) undermine private sector growth and producers have no financial signal to stop generating waste, which has been supported widely in the last years and was approved for, amongst others, Ag Pesticide Containers, Green Chemistry, Paint, Carpet and Recalled Products Take-Back. International Research and Collaboration has been launched.

Land Use Management Sherry Greenberg Political Blogger and Democratic Political Consultant, California Majority Project, United States http://www.camajorityreport.com

California Land Use – The Peace Dividend and Base Closures In the United States decisions related to land use most often are matters of local concern, involving mundane interests such as a family wanting to add a second story onto their house or a small developer wishing to tear down a gas station to build a small retail strip mall. Decisions related to these matters are typically made by a municipal agency or maybe even by a vote of a city council. There may be tangential federal or state issues, such as compliance with the Americans with Disabilities Act, but mostly such typical land use issues are governed by localities. However, on occasion, land use matters can involve a complex balancing of federal state, local and private interests. These multi-layered scenarios can be treacherous to navigate and cause massive impact on communities. One such situation that greatly affected communities across the States, with a particular impact on California, was BRAC – Base Realignment and Closure.

Resource Management – New Ideas and Innovative Solutions Following World War II, Congress passed the Federal Property and Administrative Act of 1949. This law authorized the transfer or disposal of federal property by the General Services Administration (GSA). As the Cold War wound down and military procedures and strategies were modernized to meet current needs, Congress authorized the GSA to delegate its authority to the Department of Defence (DOD) to transfer or dispose of obsolete or redundant military installations. Military bases provide significant economic activity in local communities. Members of Congress, while recognizing a need for the military to modernize and cut unnecessary costs did not want to bear responsibility for closing such important sources of job in their districts. BRAC established a complex procedure that ultimately required essentially only an up or down vote, without amendment, from Congress. Thus, Members of Congress did not have the opportunity to exempt bases in their district. And, they did not have to assume responsibility, theoretically, for closing an important source of local economic activity. Thus far, there have been five rounds of base closures. While the base closures have impacted communities throughout the States, California has born a disproportionate share – particularly during the first four rounds. California has approximately 12 per cent of the United States population. But, during the first four rounds of BRAC, California absorbed 54 per cent of the personnel cuts and the closure of almost thirty significant installations. Estimates are that the first four rounds of BRAC cost California 9.6 billion US-Dollar in annual revenues. California alone lost more jobs via BRAC than the other 49 states combined. Beyond the direct job losses caused by BRAC, empty bases are left for reuse. The DOD first offers closed bases to federal agencies. If there is no such interest, then the DOD can offer all or part of the base to state or local government, redevelopment authorities or private entities. The reuse process is arduous. While it can create opportunities, it is also fraught with obstacles. Often the buildings and land on former military installations are contaminated with hazardous waste – such as asbestos, toxic chemicals and radioactive materials. These hazardous must be abated before the property can be reused. And, such abatement can be extremely expensive. Transferees of bases must enter into complex negotiations with the federal government for adequate removal of these hazardous materials.

Various interests in each impacted community have specific ideas about how a closed base should be reused. Developers often want to build housing – especially on bases that are located on highly desirable real estate, such as the Presidio of San Francisco, which has picturesque views of the Bay and Golden Gate Bridge. Nearby residents of closed installations often want recreation facilities. Commercial interests frequently want to build retail zones. On bases that might house endangered species, conservationists urge preservation of habitats. Historical preservationists might argue that portions of bases should be maintained to avoid destruction of buildings they feel are significant. There are also infrastructure considerations – such as transit, roads or bridges to accommodate increased traffic to housing, business or attractions on former bases. If housing is constructed on former installations, schools may need to be built for the children who will live in those houses. BRAC provides no money for such needs and states and local communities, especially in the current economy, may find it difficult to fund the necessary infrastructure. As in California, various state laws and initiatives may dictate whether bonds can be issued or taxes rose to accommodate the needed infrastructure. Often, military installations are not built to state or local code and may not follow federal disabilities access laws. Compliance requires additional expenditures before the property can be reused. Probably more than any other recent situation involving real property in the States, BRAC illustrates the competing interests at play in land use. Many of BRAC-related interests and issues apply in any land use situation in the States. As Alameda City Manager John Russo will illustrate, that municipality's experience with the closure of its Naval Air Station encapsulates the many pitfalls and opportunities of developing available land in a local community.

Resource Management – New Ideas and Innovative Solutions John A. Russo City Manager, City of Alameda, California, United States http://www.cityofalamedaca.gov Redeveloping the Alameda Naval Station The Alameda Naval Air Station is a closed Navy installation located on Alameda Island, adjacent to the City of Alameda 28 in Alameda Country, California. The subject of disagreement with various ministries evolved on how to use this land, which formerly belonged to the Naval Air Force, most appropriately. “Prior to 1936 the area was occupied by borax processing plant, an oil refinery and an airport for the City of Alameda. In 1936, the Navy acquired title to Alameda and the air station’s primary mission was to provide facilities and support for fleet aviation activities” 29. In 1993, Alameda was designated for closure and the installation ceased all naval operations in 1997 30. Out of the Naval Air Station Alameda 31 a city of Alameda has been redeveloped over the past couple of years when it still consisted of a regional park, Veteran’s facility, Endangered Species Colony Agreement, the United States Fish and Wildlife Service, East Bay Regional Park District and the City of Alameda. But the planning of the redevelopment of the former Naval Air Station was under constrain due to land-use regulations, wildlife restrictions as well as limitations on the historical district etcetera. The Navy was the led agency responsible for clean up of the site, together with the Environmental Protection Agency (EPA) as lead regulatory agency32.

28 http://www.cityofalamedaca.gov/About-Alameda/ 29 http://yosemite.epa.gov/r9/sfund/r9sfdocw.nsf/3dec8ba3252368428825742600743733/23fed941

bf316814882575ad00628866!OpenDocument 30 Ibid. 31 http://www.militarymuseum.org/NASAlameda.html 32 See footnote 29.

The Green Tea Party Movement Professor Terry L. Anderson Executive Director, The Property & Environment, Research Center, Montana; Hoover Institution, Stanford University, California, United States http://www.perc.org http://www.hoover.org Serving Budget Cuts and Environmental Quality As the 2012 presidential campaign heats up, enter the Green Tea Party (GTP) and candidate Kermit the Frog. The GTP has an official drink, green tea, which is filled with “anti’s” – anti-deficits, anti-regulations, and anti-bureaucracies – for fighting the cancer of an ever-growing government. But the GTP also has some “pros” – pro-growth, pro-environmental quality, and pro-property rights. The GTP does not stand behind environmental rhetoric. Kermit does not drive a hybrid because it is “deeper shade of green,” or eat at “green concession stands,” or use green termite killers. It does not believe that more government spending, especially at the national level, is the key to prosperity or to environmental quality. The GTP stands for improving environmental quality while cutting government budgets and bureaucracy. Its platform begins with the premise that economic growth is a prerequisite for environmental quality. Kermit is a “rational optimist,” the title of Matt Ridley’s best selling book, who is optimistic human ingenuity and entrepreneurship are the solution to, not the cause of environmental problems. With the right incentives, humans will adapt to global warming and, in so doing, improve ecosystems. To get the right incentives for improving environmental quality, the GTP platform focuses on using the carrot – property rights and markets – rather than the stick – government regulation. Property rights and the rule of law are the best way to make the environment an asset worth conserving because it makes economic sense to do so. Kermit understands that sustainability only comes from profitability.

Resource Management – New Ideas and Innovative Solutions Here are a few policies that the GTP supports. • Let markets determine how to best meet our energy demands. It will find alternatives to fossil fuels because those alternatives are cost effective, not because they create “green jobs.” The government has a poor record of picking winners. Despite billions of tax dollars spent on alternative energy such as wind and solar, they make a trivial contribution to both U.S. and world energy and continue to require subsidies. The market will find profitable and therefore sustainable alternatives that are cheaper, cleaner and more convenient. • Land management is best left to private property owners. Whether it is food, timber, or environmental amenities, private owners are better stewards. Private land trusts, for example, cooperate with landowners to obtain conservation easements for producing everything from open space to endangered species habitat to agricultural communities. The GTP opposes federal subsidies for agriculture, water projects, flood control, and hydroelectricity production because they distort sound private land management decision, often to the detriment of the environment. Ethanol is a classic example. The GTP opposes federal land management bureaucracies that have a poor record for either fiscal or environmental responsibility. The GTP believes that markets without subsidies for water, food, housing, and amenities will be more fiscally and environmentally friendly. • Where property rights are hard to create, the GTP believes the government can mimic the market through cap-and-trade programs. Command-and-control regulation failed to halt the demise of fisheries. Tradable catch shares to a sustainable harvest, on the other hand, have a record of reducing costs and increasing fish stocks. Similarly, capping air and water emissions and creating property rights to tradable emission permits can encourage innovative ways to reduce emissions at a lower cost. In his book, Cleaning the Air, Indur Goklany concludes that “emissions trading should be expanded to allow trades between old and new sources, and the pollutant-bypollutant approach should be replaced by one that focuses on reducing overall risks to public health.” The time is right for political entrepreneurs to endorse the GTP and Kermit as the best way to slow government growth, increase economic prosperity, and improve environmental quality. GO GREEN!

Impressions

Herausgeber Hans H. Stein Regionalbüro Europäische Institutionen und Nordamerika Friedrich-Naumann-Stiftung für die Freiheit 71 Av. de Cortenbergh 1000 Brüssel Belgien www.fnf-europe.org

Gesamtherstellung COMDOK GmbH Büro Berlin