To Reduce Poverty, Developing Countries are Addressing Climate Change
by Doug Mason, Director, Environmental and Social Performance at MCC
Halfway around the world from the climate change conference in Paris, Indonesia is moving forward with an innovative project to catalyze economic growth while cutting greenhouse gas emissions. With support from the U.S. government’s Millennium Challenge Corporation (MCC), the government teamed up with private businesses to address the main sources of greenhouse gas emissions by investing in sustainable farming practices.
A changing climate is not just a threat to the environment; it is a threat to people’s livelihoods. If we don’t take action, researchers say that climate change could shrink the global economy by 23 percent by the end of the century. It risks undermining years of economic growth in the developing world, which are likely to be disproportionately affected.
It should not be surprising then that developing countries like Indonesia are looking to play a key role in the fight to reduce emissions and, crucially, adapt to the consequences of a changing climate. This month, negotiators in Paris sought to define the global response to climate change. While coverage of the talks has focused on how wealthier countries can support countries with lesser means, developing countries are already deploying exciting strategies that set tangible examples for how the world can promote economic growth with climate resilient development.
It should not be surprising then that developing countries like Indonesia are playing a key role in the fight to reduce emissions and, crucially, adapt to the consequences of a changing climate.
As a director of environmental and social performance at MCC, I work with developing countries to prepare sustainable and climate resilient development projects that promote economic growth. Time and again, I have been impressed by the commitment and forward thinking approaches of our partner countries as they respond to a changing climate. Here are three smart ways that these countries are thinking about climate resilient development.
Consider how changes in the climate will impact your project
Over the next two decades, countries will invest $90 trillion in infrastructure. But in order for that infrastructure to promote long-term growth, it has to be able to survive whatever Mother Nature throws at it, today or in the future.
In the Philippines, MCC partnered with the Government to build 140 miles of roads on Samar Island, one of the largest islands in the archipelago. As we were working together to design the project, we recognized that over the next 20 years the road would be vulnerable to more frequent and intense storms, as well as a rise in sea levels. So the engineers got to work, integrating design features to make the road resilient to these changes. That meant raising bridges and expanding culverts, strengthening embankments, and building sea walls, all reducing the chance that the road might wash away.
The value of that extra investment became tragically all too clear. Typhoon Haiyan struck the Philippines in 2013 as the road was being completed. With sustained winds of over 190mph, Haiyan was one of the strongest storms ever to make landfall. The road was directly on the storm’s path, but it survived largely intact, serving as a crucial artery for emergency response, and subsequent reconstruction.
Think broadly about adaptation
Adaptation can take many forms. The “hard” engineering solutions in the Philippines are important, but by no means the only approach. We also need to consider “soft” responses, such as helping people prepare for climate change. In the Philippines, for example, the government is going beyond hard infrastructure and making it a priority to improve disaster response by providing preparedness training for communities and identifying key evacuation in case of severe storms.
Developing countries are also increasingly considering “green” responses that rely on natural ecosystems to play protective roles. In coastal areas like the Philippines, mangrove forests can be a critical tool to protect people and infrastructure, acting as a natural buffer against storm surges. In fact, during the conference in Paris, large insurance companies such as Swiss Re have pointed out that preserving so-called green infrastructure can be the cheapest way to reduce adaptation risks. (The insurance industry may understand this better than anyone, since they can be on the hook for paying for the damages caused by severe storms). And relying on nature to provide key infrastructure is not just an option in poor countries; in New York, the state is using a natural filtration process for its water reserves that saves it billions of dollars.
Finally, there are the “soft” policy changes that bring about systemic change and lead to a more sustainable future. In the island nation of Cabo Verde, where only nine percent of poor households are connected to the public water supply, MCC worked with the government to manage its limited fresh water. Climate change is likely to exacerbate the scarcity of freshwater, as salt water seeps into supplies and rising temperatures evaporate what little water is available. But the government went even further. Recognizing the far-reaching threat of climate change, the government is integrating the new management approach into its 25-year infrastructure plan to ensure it is prepared for the consequences of climate change.
To scale up efforts, partnering with the private sector is key
The challenges of climate change are too large for any government to effectively address in isolation. Developing countries are increasingly working with private businesses in areas where they have shared interests. Consider Indonesia. The country is the world’s sixth largest emitter of greenhouse gases, but it has set its sights on reducing emissions by as much as 29 percent by 2030. To do that, it is having to come up with new ideas and draw in key partners.
Earlier this month, the government entered into a $17 million public-private partnership to tackle poverty through environmentally sustainable economic growth. The government, with MCC support, is investing $8.5 million, and a private consortium is matching that investment. Together, they will restore large swathes of peat swamp forests, reducing the risk of fires that pose enormous climate risks (the Indonesian peatland and forest fires this year released greenhouse gases equivalent to an entire year’s emissions from the United States). And together, they will help farmers and palm oil producers use their land more sustainably, benefitting roughly 17,000 farmers.
That’s the path to real impact.
Governments and public donors like MCC are making a difference around the world. But with smart approaches that leverage new partners and advance economic growth, countries like Indonesia are already catalyzing solutions.
