The views expressed in this paper/presentation are the views of the author(s) and do not necessarily

reflect
Draftthe viewsConference
Delhi or policies of the Asian Development Bank (ADB), or its Board
Paper of Directors,
November 22,or2010
the
governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or
reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented,
nor does it make any representation concerning the same.

“What Makes Climate Change Adaptation Pro-Poor? ADB’s Experience”

Discussion Paper

Abstract

Asia and the Pacific have achieved robust economic growth over the last decade, although
often at great expense in terms of resource depletion, environmental degradation and
increasing inequality. Climate change introduces new risks, and threatens to exacerbate
existing risks to environment and human society in Asia. The impacts of climate change, and in
particular increases in climate-related disasters (flood, drought, tropical storms), will fall
disproportionately on poor and marginalized communities, due to their high exposure, sensitivity
to harm, and low adaptive capacity. These sources of vulnerability are linked to the habitats of
the poor (low lying coastal deltas, river banks and flood plains, degraded environments); to the
high dependence of the poor on livelihoods associated with land, water and other natural
resources, including subsistence agriculture and fisheries; and to their limited capacity to
respond to, and to adapt to climate variability and change. It is therefore argued that climate
change adaptation programs and projects should be explicitly pro-poor in their design and
implementation. This paper examines the alignment of climate change adaptation and poverty
reduction strategies in practical terms. It examines the reasons why the poor are likely to be at
higher risk from the negative impacts of climate change. It considers a general set of arguments
to the effect that adaptation programs as designed and implemented by the Asian Development
Bank (ADB) are pro-poor, and that adaptation to climate change is an important element of
economic development and poverty reduction strategies of the most vulnerable ADB developing
member countries (DMCs). Finally, the paper examines several recent ADB-funded and
administered projects designed primarily to provide climate change adaptation for evidence that
these are pro-poor investments. Two general principles emerge as crucial in ensuring that pro-
poor adaptation achieves its objectives. First, the needs of the poor and vulnerable, including
women, children and those who live in geographically isolated, disaster-prone or ecologically
degraded locations must be explicitly prioritized. Second, the distribution of benefits (and costs)
associated with climate change adaptation projects – both targeted and general – must be fully
accounted for, so that the practical implications for poverty alleviation of investment decisions
can be fully assessed. Poverty impact analysis must be applied to specific programs and
projects, encompassing the spatial distribution of affected parties (particularly the poor);
comprehensive vulnerability assessment; determination of potential co-benefits, including
spillover benefits, and connectivity of the poor in infrastructure and related projects. Successful
pro-poor adaptation also requires effective and enabling policies and publicly accountable
institutions; and targets and indicators that are measurable, verifiable and reportable. ADB is
committed to promoting such policies and institutions, and to utilizing best practices in
adaptation methodologies, analytical tools and technologies to ensure that the poor - who are
the most vulnerable to climate change - are ultimately the greatest beneficiaries of adaptation
investments.

1
Draft Delhi Conference Paper November 22, 2010

The views expressed in this report are those of the authors, and do not necessarily reflect the
views and policies of ADB or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this report and accepts no
responsibility for any consequence of their use.

Use of the term “country” does not imply any judgment by the authors or ADB on the legal or
other status of any territorial entity.

2
Draft Delhi Conference Paper November 22, 2010

“What Makes Climate Change Adaptation Pro-Poor? ADB’s Experience”

Discussion Paper

By

Charles Rodgers and Daniele Ponzi1

I. Introduction

1 The Asia - Pacific region is home to the world’s fastest growing economies, as well as its
greatest concentrations of poverty. While mean per capita incomes across the region have
doubled in the last decade2, this growth has come at a high price in terms of environmental
degradation, resource depletion and, in many regions, growing inequality. Many challenges will
be faced in attempting to achieve, and to maintain growth in Asia that is at once inclusive and
environmentally sustainable. Among the most formidable challenges are the increasing risks
posed by a changing climate.

2 The Asia-Pacific region encompasses a diverse range of physical and human

geography, and the specific impacts of climate change will vary extensively within the region.
Likewise, the accompanying risks to human societies are diverse, and patterns of vulnerability
exhibit significant regional variation. Climate-related disasters have been identified as among
the most serious risks associated with climate change. Asia and the Pacific have long
experienced a disproportionate share of global weather-related catastrophes3, and the evidence
of climate change is already visible within Asia and the Pacific. IPCC (2007) documents
increases in extreme rainfall and associated flooding in East, South and Southeast Asia during
recent decades, including a seven-fold increase in the reported frequency of flooding in PRC
since the 1950’s4. Annual average human exposure to floods in the region increased from an
estimated 23 million in 1970 to over 50 million by 2010.5 Severe, often consecutive droughts
were also reported within the region, many associated with episodes of El Nino-Southern
Oscillation (ENSO).6 These trends threaten lives, livelihoods and economically and ecologically
sustainable growth. A recent study7 showed that flooding in South Asian countries has
contributed 49% to (modeled) annual economic losses of GDP since the 1970s.

3 The IPCC (2007) projects that warming will be “…well above the global mean in central
Asia, the Tibetan Plateau and northern Asia, (and) above the global mean in East and South
1
Charles Rodgers is Senior Environment Specialist (Climate Change Adaptation) and Daniele Ponzi is Lead
Environment Specialist at the Asian Development Bank (ADB). Analytical inputs and research assistance for the
preparation of this paper were provided by Tahir Qadri, ADB consultant and Loreta Rufo, Climate Change
Adaptation Officer, ADB.
2
Source: Asian Development Bank, Key Indicators for Asia and the Pacific 2010, Table 2.2. Within developing
member countries, regional average per capita GDP in current purchasing power parity (PPP) terms was $2490 in
2000, increasing to $5489 in 2009.
3
77% of all disasters occurring in Asia over the period 1975-2007 have been weather-related.
4
Reported in Cruz, et al. (IPCC), 2007. Asia. Chapter 10 in: Climate Change 2007 – Impacts, Adaptation and
Vulnerability. Contribution of Working Group 2 to the Fourth Assessment Report of the Intergovernmental Panel on
Climate Change. Table 10.3 p. 476.
5
Peduzzi, P.; H. Dao; C. Herold, and F. Mouton (2009): Assessing global exposure and vulnerability towards
natural hazards: the Disaster Risk Index. Natural Hazards and the Earth System Science, 9, 1149–1159.
6
IPCC. 2007. Working Group II, 10.2.4.
7
United Nations International Strategy for Disaster Reduction (UNISDR) (2009). Global Assessment Report on
Disaster Risk Reduction. United Nations, Geneva, Switzerland.

3
Draft Delhi Conference Paper November 22, 2010

Asia.”8 Patterns of precipitation are subject to greater uncertainty, although overall, precipitation
is projected to increase in Northern, Eastern and parts of Southeast Asia, although summer
precipitation is likely to decrease in central Asia. Where precipitation increases, it is likely to take
the form of increased high-intensity events, associated with flooding, landslides and loss of soil.
Of particular concern is the gradual loss of glacial and snowpack storage, which supports warm
season and drought year flows in many of Asia’s major river systems, including the Ganges,
Indus and Yangtze.The IPCC also projects sea level rise of around 40 cm by the late 21st
century,9 although many researchers believe that the IPCC projections of SLR are too
conservative.10

4 In addition, extreme rainfall and winds associated with tropical cyclones are likely to
increase in East, Southeast and South Asia. A study by Webster et al (2005) reported significant
changes in the frequency and intensity of tropical cyclones in the region over the past 35
years.11 In addition to the observed prominent increases in the intensity and frequency of many
extreme events (e.g., tropical cyclones, prolonged droughts, heat waves, excessive rainfall,
thunderstorms, severe dust storms and immense tides), the region is also highly susceptible to
natural hazards such as tsunamis, earthquakes, and landslides. In a region with countries
struggling to combat poverty and striving to achieve sustainable development, such impacts
pose additional risks to these already vulnerable communities. Over the last century, Asia
Pacific accounted for 91% of the world’s total deaths and 49% of the world’s total damage due
to natural disasters.12

5 This paper examines the alignment of climate change adaptation and poverty reduction
strategies in practical terms. It examines the reasons why the poor are likely to be at higher risk
from the negative impacts of climate change, and the evidence supporting these claims. It
considers a general set of arguments to the effect that adaptation programs as designed and
implemented by the Asian Development Bank (ADB) are pro-poor, and that adaptation to
climate change is an important element of economic development and poverty reduction
strategies of the most vulnerable ADB developing member countries (DMCs). Finally, the paper
substantiates the argument by examining several recent ADB-funded and administered projects
designed primarily to provide climate change adaptation for evidence that these are pro-poor
investments.

II. Why the Poor are at Greater Risk from Climate Change

6 Climate change is already impacting populations in Asia Pacific, with some areas
experiencing declining crop yields on account of salt water intrusion; accelerated soil erosion
resulting in land degradation, land slides, mudflows and inundation of major coastal cities due to
sea level rise, disappearing glaciers, flash floods, increased water scarcity due to droughts,
forest fires, and unstable and irregular rainfall patterns. The natural ecosystems of the Asia and
Pacific region are likewise facing increased pressure from human activities and land use change
thereby reducing their resilience to the effects of climate change. Moreover, the IPCC13 has
estimated that even if atmospheric concentrations were held constant at 2000 levels (no new
8
IPCC (2007) WG 1, Chapter 11.4.
9
IPCC (2007), WG 1 Chapter 10.6. Sea level rise in Asia and the Pacific is projected to occur at levels consistent
with global mean.
10
E.g., Rahmstorf, S. (2007). A semi-empirical approach to projecting future sea level rise. Science 315(5810): 368-
370.
11
Webster, P.J., Holland, G.J., Curry, J.A., Chang, H.-R. 2005. Changes in tropical cyclone number, duration, and
intensity in a warming environment. Science 309, 1844-1846.
12
International Fund for Agricultural Development (IFAD). 2009. Climate Change Impacts in the Asia/Pacific Region,
Available online at http://www.ifad.org.

4
Draft Delhi Conference Paper November 22, 2010

emissions), global warming would continue, with temperatures rising by 0.1 oC per decade
through 2030 on the basis of historical emissions alone. We are thus committed to a certain
degree of further climate change however successful our efforts at mitigation.

7 The adverse impacts of climate change may reverse many of the important economic
gains made by developing countries. The recently completed ADB study, The Economics of
Climate Change in Southeast Asia (2009), predicts that the cost of inaction to climate change
impacts could represent more than 6.7% of gross domestic product (GDP) in Southeast Asia by
the end of the century. A growing body of evidence makes it clear that climate change is an
issue that the countries of Asia and the Pacific cannot afford to ignore. The impacts of climate
change, and the vulnerability of poor communities to climate change, vary greatly, but generally,
climate change is superimposed on existing vulnerabilities.14 The poor are directly dependent on
the environments in which they live for food, water, livelihoods and the very roots of their cultural
traditions. They are most immediately exposed to the consequences of damage to those
environments, and least able to protect themselves from the resulting deprivations and
hardships.

8 The IPCC (2007), (citing Beg et al., 2002) notes that “In the absence of opportunities for
engaging in stable and gainful livelihood, poverty stricken communities are left with no option
but to utilize even the disaster-prone areas, unproductive lands and ecologically fragile lands
that have been set aside for protection purposes such as conservation of biodiversity, soil and
water. With climate change, the poor sectors will be most vulnerable and, without appropriate
measures, climate change will likely exacerbate the poverty situation and continue to slow down
economic growth in developing countries of Asia.”15

9 It is unfortunate that the poor, by virtue of their low levels of consumption, have
contributed so little to historical greenhouse gas (GHG) emissions but are among the greatest
recipients of harm. Therefore, their interests should come first in adaptation efforts as a matter
of climate justice.16 Although convincing in principle, this alignment does not always occur, at
least at the level of national policy.17 A. M. Kramer (2007) in UNDP Human Development Report
2007/2008 concluded that, in a sample of 19 countries, that climate change adaptation was
often poorly integrated in Poverty Reduction Strategy Papers, although some countries,
including Bangladesh, had succeeded in mainstreaming climate change and climate disaster
risk reduction in national development planning.

10 While there is a widespread recognition that the costs and benefits of mitigating
greenhouse gas (GHG) emissions more than warrant mitigation efforts,18 there is also growing
13
IPCC, 2007: Summary for Policymakers. In: Climate Change 2007: The Physical Science Basis. Contribution of Working
Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change; p. 12.
14
OECD. 2003. Poverty and Climate Change.
15
Cruz, R.V., H. Harasawa, M. Lal, S. Wu, Y. Anokhin, B. Punsalmaa, Y. Honda, M. Jafari, C. Li and N. Huu Ninh,
2007: Asia. Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the
Fourth Assessment Report of the Intergovernmental Panel on Climate Change, M.L. Parry, O.F. Canziani, J.P.
Palutikof, P.J. van der Linden and C.E. Hanson, Eds., Cambridge University Press, Cambridge, UK, 469-506.
10.7.1, p. 494.
16
See e.g., Klein, Naomi (2009): Climate Rage: The Only Way to Stop Global Warming is for Rich Nations to Pay for
the Damage They’ve Done – or Face the Consequences (http://www.naomiklein.org/articles/2009/11/climate-rage).
17
UNDP 200/2008. Human Development Report: Adaptation to Climate Change in Poverty Reduction Strategies.
Occasional Paper 2007/34.
18
At the global level, estimates of the cost of climate change range from approximately 3% of annual GDP over the
coming century (Nordhaus, 2007) to 5% to 20% (Stern, 2006). Most of the difference in the estimates obtained
from these two studies is explained by the use of different discount rates. On the other hand, it has been estimated
that stabilizing GHG emissions would cost approximately 1% of GDP annually over the next 50 years.

5
Draft Delhi Conference Paper November 22, 2010

recognition that the world has started to, and will continue to experience significant changes in
climate regardless of the scope of forthcoming mitigation efforts (this is occasionally referred to
as “locked-in” impacts or “commitment” to climate change). To this extent, adaptation is a key
component of an overall strategy aimed at reducing the expected impacts of climate change.
This is particularly the case for developing countries which are expected to experience a large
share of the impacts associated with climate change.

11 The specific challenges of adapting societies to the unavoidable impacts of climate

change do appear to have much in common with the overall challenges of achieving equitable
growth, adaptation activities in practice span a continuum of responses from those that are
entirely justified by specific impacts of climate change19 to those that are sound development
practice under wide a range of conditions, including current climate (“no-regrets”). This has led
policymakers and practitioners to examine the extent to which development and adaptation to
climate change are two distinct agendas; or conversely, if successful adaptation is simply
“development done right.”20 The question is an important one, because the answer will influence
both the rationale and protocols supporting dedicated adaptation funding, and the manner in
which these funds are utilized.

12 As stated earlier, the higher levels of risk from climate change that the poor experience
can be understood in general terms using the standard IPCC risk framework:

Risk = (Hazard x Exposure x Sensitivity)/Adaptive Capacity.21

13 While the hazards associated with a changing climate - inclusive of climate-related

disasters – are global and regional in scope, and do not discriminate between wealthy and poor,
the poor are disadvantaged with respect to the remaining three factors: exposure, sensitivity
and adaptive capacity. As a consequence, they face climate-related risks that are objectively
higher than those faced by other segments of society.

A. Exposure

14 These elevated risks to the poor from the adverse impacts of climate change can be
attributed in part to the concentration of poor communities in areas of high exposure, such as
low lying coastal deltas, river banks and flood plains; to the high dependence of the poor on
livelihoods associated with natural resources such as land (subsistence agriculture), forests
(food, fuel and shelter), and fisheries (subsistence for coastal communities); and to their limited
capacity to respond to, and to adapt to climate variability and change. A major part of Asia’s
core poor can be found living (a) in remote, difficult to access mountainous areas (the upland
poor), (b) in harsh, drought-prone areas (the dryland poor), (c) among those affected by regular
floods (the wetland poor), and (d) among fishing communities (the coastal poor). Furthermore,
in urban slum areas, environmental poverty puts major stress on people's health through
pollution, congestion and noise (the urban poor).22 It is estimated that by 2020, more than two-
thirds of the vulnerable and poor population in the region will suffer from environmental poverty
—up from less than one-half today23.ADB (2008) noted that poverty in Asia and the Pacific is
increasingly concentrated in places with harsh living conditions, including marginal lands and
19
For example, re-designing coastal infrastructure to compensate for sea level rise.
20
See e.g., Bapna, Manish and Heather McGray, Financing Adaptation: Opportunities for Innovation and
Experimentation. World Resources Institute Conference paper, November 2008.
21
(Exposure x Sensitivity) is often referred to as “Vulnerability”.
22
Linde, L. and A. Bauer. 2010. The Environments of the Poor: Mapping Spatial Dimensions by Using Geographic
Tools to Improve Analysis and Communication for Development Planning (Draft).

6
Draft Delhi Conference Paper November 22, 2010

areas of depleted resources, pollution, congestion, and proneness to natural and human-
generated disasters. Oxfam in its 2010 report concluded that populations in the small islands
states in the Pacific and low lying areas of Indonesia and Philippines are particularly exposed to
coastal erosion and consequent land loss, flooding and seawater intrusion.24 An estimated 4
billion people were affected by natural disasters in Asia from 1970 to 1999, largely due to the
high population density in disaster-prone areas (Multi Agency Report, 2003)25. A study
conducted by Dasgupta (2007) examined the statistical evidence to establish the impacts of
floods as a major cause of persistent poverty in Bangladesh, and reported greater incidence of
poverty in the most flood-prone areas in the country. 26

B. Sensitivity

15 Terrestrial, wetland, coastal, and marine ecosystems and services—already at high risk
of severe degradation from fragmentation, pollution, unsustainable resources management
practices including over-harvesting—will be increasingly strained by climate change. A third of
coral reefs are likely to be lost by 2050, with dire consequences for fisheries and livelihoods.
Tropical forested areas, which are known to be high in biodiversity, are likely to experience
further decline, accelerated extinctions of plant and animal species, and diminished watershed
functions (ADB, 2010).27 The livelihoods of the poor, which are very much dependent on the
goods and services derived from these ecosystems, will be severely affected as climate change
will further decrease the quality and abundance of the natural resources derived from these
ecosystems (Multi Agency Report, 2003).

16 IFAD28 estimated that there are about 500 million rural poor in the region and most of
them are subsistence farmers in rainfed areas whose livelihoods are threatened by climate
change. Projected sea-level rise could threaten the livelihood of millions of poor rural people
living in the low-lying areas of the Pacific Islands and South and South-East Asia such as Viet
Nam, Bangladesh and India (IFAD). Climate change is threatening food production systems and
therefore the livelihoods and food security of billions of people who depend on agriculture in the
region. Moreover, developing countries in Asia and the Pacific are likely to face the highest
reduction in agricultural potential in the world due to climate change. Projected reduction in
staple food crop yields in parts of Asia is estimated to range from 2% to 10% by the 2020s and
16% to 42% by 2050 (ADB, 2009).29 Many of the rural poor engage in subsistence agriculture
as either a primary or supplementary occupation, and declining yields will have both economic

23
See: (1) ADB (2008): Environments of the poor. New Perspectives on Development Planning.
http://www.povertyenvironment.net/?q=filestore2/download/1829/PEP13-EnvironmentofthePoor-Bauer.ppt;. (2) A.
Bauer (June 2008): The Environments of the Poor - Summary of a forthcoming book on "Environmental Poverty”.
http://www.povertyenvironment.net/pep/?q=filestore2/download/1848/Bauer%20_June%2008_%20The
%20Environments%20of%20Poverty%202.pdf. (3) A. Bauer et al (forthcoming): The Environments of the Poor.
Manuscript of a book for ADB.
24
Oxfam International. 2010. Climate Change Adaptation: Enabling People Living in Poverty to Adapt. United
Kingdom.
25
Multi-Agency Report (2003), “Poverty and Climate Change: Reducing the Vulnerability of the Poor through
Adaptation”, report by the African Development Bank, Asian Development Bank, UK Department for International
Development, Federal Ministry for Economic Co-operation and Development (Germany), Ministry of Foreign Affairs
– Development Co-operation (Netherlands),OECD, United Nations Development Programme, United Nations
Environment Programme and World Bank; Sperling, F. (ed.),Washington.
26
Dasgupta, A. 2007. Floods and Poverty Traps: Evidence from Bangladesh. Economic and Political Weekly. 3166-
3171.
27
ADB. 2010. Strategic Directions of Asian Development Fund Operations for Promoting Climate Change Mitigation
and Adaptation. Manila.
28
IFAD. Climate Change Impacts in the Asia Pacific Region. http://www.ifad.org/events/apr09/impact/pacific.pdf
29
ADB. 2009. Building Climate Resilience in the Agriculture Sector of Asia and the Pacific. Manila.

7
Draft Delhi Conference Paper November 22, 2010

and nutritional impacts. Climate change is projected to further reduce water availability in many
areas due to changes in rainfall patterns, resulting in both more frequent and severe droughts
and excessive runoff. Maintaining water security is a key priority for the poor people of the
region as climate change impacts to water resources may have a wide array of subsequent
negative consequences.

17 Climate change will further reduce access to drinking water, negatively affect the health
of poor people, and will pose a real threat to food security in many countries in the region. In
some areas where livelihood choices are limited, decreasing crop yields threaten famines, or
where loss of landmass in coastal areas is anticipated, migration might be the only solution. The
macroeconomic costs of the impacts of climate change are highly uncertain, but very likely have
the potential to threaten development in many countries. 30

18 Climate change is also increasingly affecting global migration patterns particularly in “hot
spots”— specific areas where residents are at relatively high risk from climate change, including
areas affected by sea-level rise, cyclones and typhoons, flooding, and water stress; especially in
river deltas; in low lying small island states; and in arid regions of Central and West Asia.
Moreover, changes in rainfall pattern will force affected people to higher elevations where soil is
less fertile resulting in an increased rate of conversion of marginal land to agriculture with
consequent increase in greenhouse gas emissions.

C. Adaptive Capacity

19 Not only are the poor more exposed to the unfavorable impacts of climate change
through their places of habitation, and more sensitive to these impacts due to their dependence
on land, water and other natural resources for their livelihoods. The poor also possess lower
adaptive capacity, defined by the IPCC as “The ability of a system to adjust to climate change
(including climate variability and extremes) to moderate potential damages, to take advantage of
opportunities, or to cope with the consequences.”31 Adaptive capacity is strongly associated with
income and wealth, but involves far more than physical assets. For example, when a climate-
related disaster such as a flood or drought destroys physical assets, access to credit or to
insurance may determine if and how quickly recovery is possible.32 In the absence of such
resources, disasters may permanently consign affected households to poverty. Access to critical
infrastructure also confers adaptive capacity. This might include water storage and distribution
infrastructure, effective in adapting to increasingly severe drought; or to disaster early warning
systems and shelters in the context of floods and tropical storms.

20 Adaptive capacity is also provided by human and social capital. Education, and in
particular the education of females, has been demonstrated to confer adaptive capacity in the
face of climate change.33 Effective local government and institutions are also essential in
establishing adaptive capacity, as Cuba has demonstrated through its effectiveness in
managing risks associated with tropical storms at community level.34 Cuba, along with
Bangladesh, have demonstrated that low income countries have the potential to achieve
30
OECD. 2003. Poverty and Climate Change.
31
IPCC AR4 (2007) WG II (Impacts), Glossary.
32
Laplante, B. 2009. Poverty, Climate Change, and the Economic Recession. Paper prepared for the 3 rd China-
ASEAN Forum on Social Development and Poverty Reduction, 4th ASEAN+3 High-Level Seminar on Poverty
Reduction, and Asia-wide Regional High-Level Meeting on the Impacts of the Global Economic Slowdown on
Poverty and Sustainable Development in Asia and the Pacific.
33
Blankespoor et al., 2009: The Economics of Adaptation to Extreme Weather Events in Developing Countries,
Development Research Group, The World Bank, Washington, DC.

8
Draft Delhi Conference Paper November 22, 2010

dramatic improvements in adaptive capacity and resilience in the face of climate change and
natural disasters by focusing on the effectiveness of local institutions, in addition to early
warning and related measures.35

III. Aligning Climate Change Adaptation and Poverty Reduction in ADB’s Programs

21 ADB’s long term strategy (Strategy 2020) acknowledges the unintended consequences
of the region’s rapid development in the form of environmental degradation, resource depletion
and growing contribution to anthropogenic climate change. Strategy 2020 explicitly commits
ADB to address climate change adaptation: “ADB will (…) help DMCs adapt to the unavoidable
impacts of climate change – including those related to health – through national and municipal
planning, investments in defensive measures, support for insurance and other risk-sharing
instruments, and “climate-proofing” projects. Disaster risk management will be a vital part of the
development process. Sustainable management of forest and other natural resources for
provision of clean water supplies, protection of biological diversity, and sequestration of carbon
from the atmosphere to offset greenhouse gas emissions will be part of ADB’s assistance to
address climate change.” Effectiveness in poverty reduction at the country level is established
on the basis of progress toward the Millennium Development Goals. Strategy 2020 is
noteworthy in that specific program areas and activities (e.g., planning, insurance, disaster risk
management) are advocated, although an explicitly “pro-poor” targeting of such activities is only
implicit in the document.

22 A more specific statement of ADB’s commitment to making adaptation pro-poor is found

in the recent (2010) strategy document Addressing Climate Change in Asia and the Pacific:
Priorities for Action.36 The Priorities for Action highlights the nexus between poverty and climate
change mitigation and adaptation: “It is increasingly evident that continued poverty reduction will
not be possible without proactive efforts to mitigate the causes of global warming and at the
same time help the region's most vulnerable citizens adapt to the unavoidable impacts of
climate change.” The document stresses that successful adaptation efforts are consistent with
the broader objectives of environmentally sustainable growth.

23 The Priorities for Action specifically commits ADB “…to ensure that DMCs' poverty
reduction strategies and targets—including gender equality and other social development
objectives—take better account of climatic conditions and disaster risks, and build measures to
enhance the resiliency of poor communities, women and other vulnerable groups.” Given is
significance climate resilience, ecosystems stability and food security, specific focus is given to
water as the medium through which the most important impacts of climate change are likely to
be conveyed. The Priorities for Action also commits ADB to “…understand and respond to the
long-term food security risks implied by climate change threats to agricultural production and
food prices, potentially including support for more resilient cropping systems.”

24 Perhaps the most explicit commitment is contained in Appendix 4 of The Priorities for
Action on adaptation, where it is stated that ADB will support country-driven climate change
adaptation programs primarily by (i) promoting the mainstreaming of adaptation and disaster
risk reduction into national development plans and ADB country partnership strategies; (ii)
34
Thompson, M., and I. Gaviria, 2004. “Weathering the Storm: Lessons in Risk Reduction from Cuba.” Boston:
Oxfam America
35
UNISDR (2009), Ch. 1 p. 14.
36
ADB. 2010. Focused Action: Priorities for Addressing Climate Change in Asia and the Pacific. Mandaluyong City,
Philippines. Originally released under the title Addressing Climate Change in Asia and the Pacific: Priorities for
Action (2010).

9
Draft Delhi Conference Paper November 22, 2010

helping build the climate resilience of vulnerable sectors such as agriculture, energy, transport,
and health, including preparation of climate-resilient sector road maps; and (iii) assisting the
DMCs in climate proofing projects—including those financed by ADB—to ensure their outcomes
are not compromised by climate change and variability or by natural hazards in general. Priority
will be given to the least-developed countries and to addressing threats to highly vulnerable
segments of society. All of these efforts will be accompanied by training, awareness raising, and
education measures to help weave climate change adaptation into the fabric of economic
development. In addition, ADB will help to ensure that the DMCs' poverty reduction strategies
and targets— including gender equality and other social development objectives—take better
account of climatic conditions and disaster risks, and build measures to enhance the resiliency
of poor communities, women, and other vulnerable groups. Since water is the principal medium
through which climate change is manifested, special attention will be given to improving DMC
capacities for climate-resilient water management in urban, rural, and river basin settings
through investments and technical assistance. ADB also will join with partners to understand
and respond to long-term food security risks from climate change threats to agricultural
production and food prices, potentially including support for more resilient cropping systems.
The Priorities for Action thus sharpens the focus of ADB’s adaptation activities on the poor and
the disadvantaged. To see how this is achieved at the level of individual programs and projects,
we turn to an examination of several recent ADB projects.

IV. Pro-Poor Adaptation Approaches and Practices – ADB’s Programs and Projects

25 There is growing recognition that actions to address climate change and development
are closely linked. Climate adaptation is seen as necessary in reducing vulnerabilities and the
anticipated impacts of a worsening climate on the poor. ADB utilizes a multi-pronged approach
in promoting climate resilience while addressing poverty reduction. This may include support for
climate-proofing of infrastructure, policy formulation and integration of climate change in national
and local plans or sector investments programs and development policies as well as support for
capacity building of government agencies and communities. As stated in The Priorities for
Action “Climate change adaptation is a relatively new concern in economic development, and
new knowledge will continue to be needed to help the DMCs effectively address the threats
imposed by climate change on their poverty reduction efforts. Tools and methods to help the
DMCs better address current climate variability risks and to anticipate and adapt to future
climatic conditions are needed…” To guide its adaptation interventions, ADB already works on
the development of relevant adaptation methods, tools, practices, and cost-effective responses
as well as assessments of physical, economic, and social vulnerabilities and impacts. The
economic analysis of adaptation measures and their prioritization in terms of cost effectiveness
is also an area of increasing focus in both strategic plans and climate proofing of projects.
Approaches must be fine tuned to meet the needs and match the capacities of individual
countries. ADB is also developing innovative financing and risk-sharing approaches and
associated institutional arrangements to promote the integration of adaptation and disaster risk
reduction, including through insurance and other disaster risk finance instruments. To ensure
that the poor, being the most vulnerable to adverse impacts of climate change, benefit from
climate change adaptation programs, it is necessary to undertake measures that ensure
equitable distribution of such benefits. This is illustrated by a sample of adaptation projects,
programs, strategies and action plans, flag-ship studies and knowledge products and other
activities supported by ADB and its development partners, as described in the annex to this
discussion, and briefly summarized in the following paragraphs.

26 Targeting the poor through specific interventions that lead to more equitable outcomes in
terms of impact distribution is a guiding principle for pro-poor adaptation. We need to ensure

10
Draft Delhi Conference Paper November 22, 2010

that adaptation measures benefit primarily the poor. For instance, linkages between climate
change adaptation activities and poverty reduction are not always necessarily inherent, i.e., the
benefits of climate-proofing a coastal road may escape the poor if that road connects mostly
affluent communities and does not include links to poor communities, villages and
neighborhoods. Similarly, a project designed to expand the capacity of a water reservoir in
anticipation of increased inflow variability may not necessarily benefit the poor if they are not
connected to the municipal supply system for drinking water supply or are landless and unable
to benefit from supply of water irrigation during climate induced droughts.

27 In another example, a multipurpose dam might be designed to provide hydropower

generation (mitigation), irrigation and flood control (adaptation) in anticipation of climate change,
and poor communities might or might not be the intended direct beneficiaries of such services.
However, the poor may benefit through improvements in the local labor market, at least for the
duration of construction. Bhatia et al. (2007) found that every dollar of direct economic benefits
from the Bhakra multipurpose dam in India generated an additional $0.90 in indirect benefits.
The resulting gains to agricultural labor (poor) households were actually higher than the gains to
other rural households and to urban households when these indirect impacts were included and
such impacts should be taken into account when designing adaptation programs.37

28 Similarly, a project designed to improve watershed management might result in

enhanced carbon sequestration (mitigation) in addition to reduced flooding and improved soil
moisture and groundwater recharge (adaptation), while creating alternative livelihood
opportunities for poor communities, including direct employment, timber and non-timber forest
products and improved fisheries. Such a project might also build social capital by strengthening
local resource management and governance institutions.

29 Early warning systems for climate change related disasters such as floods or drought
provides another illustration. While the immediate objective for establishment of such a system
is to reduce fatalities, the indirect poverty reduction benefits may be substantial. Poor
communities often have few assets to buffer disaster losses, and the loss of scarce assets to
natural disasters has a particularly damaging effect on the well-being of poor communities.
Disasters can rapidly erase accumulated development progress achieved with great effort over
decades, and long-term impacts are most severe for vulnerable groups including women and
young children.38 As noted by the UNISDR (2009), “Climate change ….. will turbo-charge the
disaster risk-poverty nexus, drastically increasing disaster impacts on the poor and resulting
poverty outcomes.” (p. 11) It follows that efforts to manage, respond and reduce the risks of
climate-related hazards (including development of disaster early warning systems), do generally
generate good pro-poor adaptation results.

30 Climate change adaptation efforts can be pro-poor by design, or can benefit the poor as
an indirect, secondary or spillover impact. It is also possible that secondary impacts of
adaptation and closely related development projects are harmful to the interests of the poor.

31 On a general level, two principles emerge as crucial to promote pro-poor adaptation and
to ensure that it achieves its objectives. First, a clear prioritization of the needs of the poor and
vulnerable, including women, children and those who live in geographically isolated, disaster-
37
R. Bhatia, R. P. S. Malik and M. Bhatia, 2007: Direct and Indirect Impacts of the Bhakra Multipurpose Dam, India.
Irrigation and Drainage 56, 195-206. Indirect impacts can also be negative, as is common when communities are
displaced.
38
United Nations International Strategy for Disaster Reduction (UNISDR) (2009). Global Assessment Report on
Disaster Risk Reduction. United Nations, Geneva, Switzerland.

11
Draft Delhi Conference Paper November 22, 2010

prone or ecologically degraded locations. Second, an improved ability to account for the
distribution of benefits (and costs) associated with climate change adaptation projects – both
targeted and general - so that the practical implications for poverty alleviation of investment
decisions can be more fully appreciated. In this context, conduct of social analysis to determine
the spatial distribution of the poor vulnerable to climate change within the sphere of influence of
the project or program, vulnerability assessment to guide the design of a project or program with
enhanced climate resilience, determination of potential co-benefits, including spillover benefits,
consequent to climate adaptive investments, and enhanced connectivity from major road
networks to secondary and tertiary levels to enhance benefits to the poor, thus ensuring pro-
poor adaptation.

32 Distribution analysis of project/program benefits examines the distribution of net benefits

among beneficiary groups by income level. The extent to which the poor benefit is important to
document in agricultural, social sector, urban development and public utility projects that often
focus on, or at least include the least well-off. Distribution analysis, based on a comprehensive
social and poverty impact analysis, is therefore an appropriate tool to determine the impact of
the project on the poor, particularly with respect to vulnerability to climate change, and the
information thus obtained useful in project design. This type of distribution analysis is
particularly relevant since information about potential beneficiaries is part of the process of
project identification and design, in addition to appraisal. Moreover, distribution analysis can
provide insight into the allocation of project costs and benefits between males and females,
since gender sensitivity of the project must be ensured, particularly in health, education or
agricultural development projects.

A. Examples of ADB supported Projects and Programs for Adaptation to Climate

Change

33 Cambodia39: The $66 million Rural Roads Improvement Project aims to rehabilitate and
pave 505.4 km of rural roads to improve rural connectivity to national and provincial road
networks, with $5.5 million grant funding from Nordic Development Fund for climate adaptive
design and implementation. These include engineering design adjustments (increasing drainage
capacity, adjusting sub-grade materials to withstand higher water content and road elevation in
areas particularly at risk to flooding), capacity building (private sector contractors) and
information generation (preparing climate change vulnerability maps to influence transport
sector planning), introducing ecosystem-based adaptation strategies and effective road
maintenance and management, disaster mitigation, and over-loading control. The project roads
are located in seven provinces, mainly around the Tonle Sap Basin, which has a large
proportion of Cambodia's rural poor. These are Battambang, Kampong Cham, Kampong
Chhnang, Kampong Speu, Kampong Thom, Pursat, and Siem Reap.

34 Solomon Islands40: The $24 million grant for the Second Solomon Islands Road
Improvement Project aims to repair the infrastructure damaged by the floods, with enhanced
engineering design-based resilience to changing climate patterns It will (i) improve about 30
water crossings (bridges, culverts, and wet crossings), build about 20 kilometers (km) of roads,
and selectively relocate roads for adaptation to climate change; (ii) maintain roads using local
community and private contractor supplied labor-based, equipment-supported (LBES)
39
ADB. 2010. Proposed Loan Kingdom of Cambodia: Rural Roads Improvement Project. Report and
Recommendation of the President to the Board of Directors. Manila.
40
ADB. 2009. Proposed Asian Development Fund Grant and Administration of Grants Solomon Islands: Second
Road Improvement (Sector) Project. Report and Recommendation of the President to the Board of Directors.
Manila.

12
Draft Delhi Conference Paper November 22, 2010

techniques; and (iii) build capacity including community education and awareness campaign
and environmental management and road maintenance schedules. The project will remove
transport accessibility constraints on economic growth and social development in
the subproject areas by restoring or providing road connectivity and improving
reliability of access in the face of natural hazards.

35 Timor Leste41: The $46 million Road Network Development Sector Project ADF loan was
approved in 2009. The project involves the climate proofing of coastal roads and those passing
through highly mountainous agricultural areas to adapt to rising sea levels, rising temperatures,
and worsening erosion from flooding. Approach to climate proofing includes engineering and
bio-engineering adaptation measures, including earth levee banks with “rip-rap” protection from
extreme waves along the coastline and reforestation of unstable slopes in the mountainous
agricultural areas. The project is expected to benefit about 62,000 people, including
55,000 poor and 28,000 extremely poor and reduce poverty by providing villagers
in the project area with immediate employment and income-generating
opportunities.

36 Khulna, Bangladesh42: TA for Strengthening the Resilience of the Water Sector in

Khulna to Climate Change with $600,000 from the CCF is aimed at identifying and assessing
impacts of climate change on urban drainage system and surface water supply system, and
proposing adaptation options to climate-proof the proposed investments. For the water supply
system, decreased river flows in dry season and sea level rise would increase the salinity of the
river, the main source of water supply. Options for improving climate resilience of the proposed
water supply scheme include: shifting the water intake point further upstream by 4 km or
increasing the size of the impounding reservoir by 12 million cubic meters (MCM) to adapt to a
2050 climate change scenario. ADB Board just approved on 11 November 2010 the City
Region Development Project, which includes a subproject for urban drainage system
improvement in Khulna. ADB plans to process the Khulna Water Supply Project next year to
develop the surface water supply system in the city. The findings of the TA will be reflected in
the design of these two projects to make the proposed infrastructure climate-resilient

B. Strategies and Action Plans

37 Bangladesh43: JSF funded $2.5 million TA: Supporting Implementation of the

Bangladesh Climate Change Strategy and Action Plan. Approved in March 2009, the TA aims to
enhance the capacity of the MoEF and other relevant ministries and line agencies for project
preparation, implementation, and policy formulation in relation to Bangladesh Climate Change
Strategy and Action Plan (BCCSAP), including (i) guidelines for the country’s prioritized project
formulation in four sectors in line with the BCCSAP; (ii) development of proposals for (a) climate
change adaptation and mitigation; (b) public–private partnerships for clean development
mechanism (CDM); (iii) knowledge management and (iv) capacity development and associated
actions. Part of the TA activities also include the assessment of the impact of climate change
on poverty and on people living in vulnerable and climate-sensitive areas and identifying
approaches and techniques for poverty data analysis, incorporating climate change issues and
use of the present management information system.
41
ADB. 2009. Proposed Asian Development Fund Grant Democratic Republic of Timor-Leste: Road Network
Development Sector Project. Report and Recommendation of the President to the Board of Directors. Manila.
42
ADB. 2008. People’s Republic of Bangladesh: Strengthening the Resilience of the Water Sector in Khulna to
Climate Change. Technical Assistance Report. Manila.
43
2009. ADB. People’s Republic of Bangladesh: Supporting Implementation of the Bangladesh Climate Change
Strategy and Action Plan. Technical Assistance Report. Manila.

13
Draft Delhi Conference Paper November 22, 2010

38 Nepal44: TASF funded $575,000 TA: Strengthening Capacity for Managing Climate
Change and the Environment, approved in November 2008 provides support to the Government
to generate an agreement for an effective and sustainable institutional framework for managing
environmental protection and climate change and development of an action plan for
mainstreaming environmental protection and climate change into sub-national administration,
including the community forestry management. The action plan will streamline jurisdictional
responsibilities at central, regional or provincial, district, and village and/or municipality levels,
including decentralization policies. Enhanced awareness and capacity building to mainstream
environmental and climate change considerations into the national development agenda is also
being supported.

39 Sri Lanka45: The $700,000, CCF supported TA for Strengthening Capacity for Climate
Change Adaptation provided support to Sri Lanka in preparing a strategic program for climate
change adaptation together with priority action plan and investment strategy. Recognizing that
climate change is likely to threaten the significant achievements the country has made in the
last 20 years in increasing incomes and reducing poverty, an institutional development strategy,
with a program of capacity development and training requirements has been prepared and
implemented under the TA. Education, communication and awareness strategy will soon be
implemented to increase understanding of climate change adaptation risks and adaptation
responses at national, local, and community levels to promote adaptation. This technical
assistance project has recently come up with a new framework to enable Sri Lanka's economy
and people to cope with climate change impacts.

40 Lao PDR46: NDF: $2.8 million and TASF $300,000: TA: Capacity Enhancement for
Coping with Climate Change is providing policy support to the National Climate Change Office
and related institutions to effectively implement the national strategy and action plan on climate
change (NSAPCC). It will also raise public and policy maker awareness on climate change and
provide assistance for implementing pilot adaptation activities in vulnerable sectors such as
water, agriculture, and forestry sectors. These activities will also reinforce data collection
systems on climate change impacts and strengthen TWG capacity in data collection and
analysis.

41 Bhutan47: Japan special Fund: $700,000. TA: Capacity Building of the National
Environment Commission (NEC) in Climate Change, approved in Dec 2009, aims to enhance
capacity of NEC to function as a designated national authority that will prioritize climate change
risks in energy and water resources development and promote climate change mitigation and
adaptation activities. The TA's includes: (i) Institutional development strategy and organizational
framework for climate change mitigation and adaptation; (ii) NEC's operational toolkits, including
guidelines, manuals, and business procedures and responsibilities for environmental
assessments and CDM appraisal, particularly in hydropower, renewable energy, and transport;
(iii) NEC’s operational toolkits; (iv) Climate change modeling and a national road map with a
time-bound action plan; and (v) In-house workshops and training programs to build awareness.
44
2008. ADB. Federal Democratic Republic of Nepal: Strengthening Capacity for Managing Climate Change and the
Environment. Technical Assistance Report. Manila.
45
ADB. 2009.Democratic Socialist Republic of Sri Lanka: Strengthening Capacity for Climate Change Adaptation
Technical Assistance Report. Manila.
46
ADB. 2010. Lao People's Democratic Republic: Capacity Enhancement for Coping Climate Change. Technical
Assistance Report. Manila.
47
ADB. 2009. Kingdom of Bhutan: Capacity Building of the National Environment Commission in Climate Change
.Technical Assistance Report. Manila.

14
Draft Delhi Conference Paper November 22, 2010

C. Flagship Studies and Knowledge Products

42 Building Climate Resilience in the Agriculture Sector of Asia and the Pacific48: Agriculture
is the sector most vulnerable to climate change in Asia because: (i) production is highly
sensitive to weather; (ii) more than 60% of the region's economically active population and
dependents rely on the sector for their livelihood; and (iii) the majority of poor derive their
livelihoods from agriculture, and they will be most affected by climate change. This International
Food Policy Research Institute (IFPRI) study uses predictions of global climate change models
to develop scenarios to 2050 for Asia and to derive implications for food security. The study
found that irrigated agriculture in the region is expected to decline with rice in the range of 14%–
20% over the next 40 years and childhood malnutrition is projected to increase dramatically by
between 9 and 11 million children, by 2050 as a result of climate change.

43 Climate Change and Migration in Asia and the Pacific: The preliminary report on Climate
Change and Migration in Asia and the Pacific, while putting a spotlight on key interactions
between climate change, migration, and settlement patterns, identifies the need for policies that
promote understanding of vulnerable areas, and the minimum developments needed to avoid
mass displacement. The report also concluded that coastal flooding poses the greatest climate-
change-induced risk, with around one-third of the Southeast Asian population living in areas
considered to be at risk of coastal flooding and its associated impacts. In addition, the regional
technical assistance (RETA): Policy Options to Support Climate-Induced Migration49 provided
$700,000 to conduct country and sub-regional surveys and studies to improve understanding of
climate-induced migration. Studies may cover selected urban areas in countries such as
Indonesia, Viet Nam, Papua New Guinea, and a number of island nations in the Pacific.

44 Ho Chi Minh City Adaptation to Climate Change Study50: ADB, Japan International
Cooperation Agency (JICA) and the World Bank supported the climate change study in several
coastal mega-cities—Manila (led by JICA), Ho Chi Minh City (led by ADB), Bangkok and
Kolkata (led by the World Bank). A synthesis report has been prepared based on the city level
findings.51 HCMC ranks among the top 10 cities in the world with populations most likely to be
severely affected by climate change. By 2050, millions of its citizens will be at increased risk
from regular and extreme climatic events such as floods, droughts, and tropical storms. To help
reduce the impacts of these risks, this study provides HCMC's government and private sector
with more reliable information based projections of HCMC's 2050 exposure in key sectors and
areas, and proposes structural and nonstructural measures to build climate resilience in the
city's most vulnerable sectors and areas. The study found that the poor will be more exposed to
flooding by 2050 than others living in HCMC and the impact will be substantial. Also, about 50%
of the city’s water supply treatment plants, 60% of the city’s waste water treatment plants and
90% of land fill sites are at risk of flooding. Agricultural areas and industrial zones will be
severely affected.

45 Regional Review of the Economics of Climate Change in Southeast Asia 52. The report
assessed the factors that explain why Southeast Asia is particularly vulnerable to climate
change; considered the economic costs and benefits of actions; and provided a range of options

48
See Footnote 28.
49
ADB. 2009. Policy Options to Support Climate-Induced Migration. Technical Assistance Report. Manila.
50
ADB. 2010. Ho Chi Minh City Adaptation to Climate Change: Summary Report. Manila.
51
The results of the study, however, are only indicative and more detailed analysis and planning is required within
each sector and local government area.
52
ADB. 2009. The Economics of Climate Change in Southeast Asia: A Regional Review. Manila.

15
Draft Delhi Conference Paper November 22, 2010

and recommendations to assist policy makers to adopt necessary actions. The report revealed
that increases in temperature, sea level rise and changes in rainfall patterns are projected to
cost the region up to 6.7% of GDP each year by the end of the century. The report provides
strong evidence that investing in climate change adaptation and mitigation options outweigh the
costs and gives recommendations for cost-effective measures, focusing on agriculture, energy,
forestry sectors. This study led to the launch of similar studies in other regions including East,
Northeast and South Asia, and the Pacific.

D. Concluding Remarks

46 The Asia and Pacific region has a diverse range of physical and human geographic
circumstances, and thus the specific risks from climate change and their timing—and
accompanying threats to human societies—vary extensively. As discussed in the paper, water is
likely to emerge as a major common denominator of climate change adaptation actions since it
transcends all sectors – be they agriculture and food security, irrigation, health and nutrition,
infrastructure, forests and associated ecosystems and ecosystems services, and others.

47 As discussed in the paper, prioritizing the needs of the poor through, for example,
participatory vulnerability assessments is an important element to design pro-poor adaptation
interventions. At the same time distribution analysis also plays a central role. Distribution
analysis based on a comprehensive social and poverty impact assessment, is an appropriate
tool for determining the impacts of the project on the poor, particularly with respect to climate
change adaptation. The information on the distribution of benefits is also a key part of the
process of project identification, appraisal and design and provides an essential entry-point for
the formulation of pro-poor adaptation measures. Distribution analysis can also provide insight
into the allocation of project benefits and costs between males and females, to ensure gender
sensitivity, particularly in health, education or agricultural development projects.

48 Recognizing that climate change disproportionately affects the poor and imposes
additional hardships on an already vulnerable section of the society, it is appropriate and
desirable to take into account the level of their vulnerability, capacity to cope, the priority actions
as identified by them, and target adaptation actions that truly help the poor within the sphere of
influence of a given project or program. This, however, cannot not be achieved in absence of
appropriate and enabling policies and publicly accountable institutions with capacity and
commitment, with adequate business processes, and with targets and indicators that are
measurable, verifiable and reportable. ADB is committed to promote such policies and
institutions and make use of best practices in terms of adaptation methods, analytical tools and
technologies and knowledge products to ensure that the poor -who are the most vulnerable to
climate change- are ultimately the main beneficiaries of adaptation investments.

16