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AFFP Cohort II (2018/2019)

AFFP Cohort II (2018/2019)

For the second cohort, the AFFP has received more than 350 applications. Out of that, 18 fellows from 16 different countries were selected. On the other hand, we are pleased to announce that we have 3 additional Fellows from Thailand. One Business Fellow is sponsored by the Bank for Agriculture and Agricultural Cooperatives (BAAC). Two additional Research Fellows are funded by the Thailand Research Fund (TRF). Open the different tabs to get to the activities of the fellows of the second cohort.

Certified Expert in Climate Adaptation Finance (e-learning)

During the first 6 months of the AFFP 2018/2019, the 18 fellows worked intensively on topics related to adaptation and finance. They got insight into a new and innovative learning approach, provided by Frankfurt School Development Finance e-Campus. As a main part, participants worked on self-chosen topics where they could apply the knowledge gained so far.

Kick-off Workshop, September 2018 (Bangkok)

The kick-off workshop of the second cohort took place in Bangkok, Thailand, during 24th – 28th September 2018. Members of the Advisory Committee welcomed the new fellows to set the basis for the upcoming 18 months of the fellowship. Fellows were provided with basic knowledge and understanding of development of global adaptation finance issues. The workshop also allowed research fellows to present their research proposal and to receive fruitful input for their undertakings.

The kick-off workshop was the starting place of networking among the fellows. Various methods were employed enabling fellows to make friends and work with others, i.e. ice-breaking session, group activities (which consist of fellows in different tracks and different countries) and group discussion. Fellows began to learn and understand specific adaptation finance issues and problems in the countries and regions of their peer fellows.

Summer Academy, March 2019 (Bangkok)

The objective of the Summer Academy is to build on the Kick-off Workshop and to strengthen fellows skills in methodologies and techniques used to deal with adaptation measures and their financing. The Summer Academy focussed on the issue of flood and draught planning and action taken by both, the Thai Government, the private sector and the social enterprises.

The Summer Academy was an intensive training in which our fellows were asked to prepare a financial analysis of an adaptation project. Moreover, the keyntote lectures as well as the field trips focused specifically on the issue of flood management projects, both by the government and the private sector.

Webinar Series

During the Fellowship Programme, fellows are required to design, prepare and implement one webinar. The topics are choosen jointly in a group of 3-4 fellows, dealing with current issues in the field of adaptation finance.

1st Webinar: Designing commercial forestry schemes (CFS) for fural farmers resilience to climate change using adaptation finance

This research investigates the scope of commercial forestry schemes in Pakistan using discrete choice modelling. In Northern Pakistan, the majority population is involved in subsistence farming, which is vulnerable to climate change. Subsistence farmers can adopt commercial forestry for crop diversification, however, this require investment. Nevertheless, credit access, collateral and credit history limitations stop them from using long-term low interest loans. We suggest to use climate finance for proposed commercial forestry schemes to allow farmers to allocate part of the cropland to tree plantation. This will reduce their risk of crop failure by offering them the option of crop diversification using tree plantation that is less susceptible to unfavourable climate. Therefore, the proposed commercial forestry schemes can potentially contribute to farmers’ climate resilience. The research seeks to design the incentive schemes to encourage the farmers to allocate their land to tree plantation. It will pave the way for climate finance investment by engaging climate investors and donors. The research is novel as vulnerable communities can directly use the adaptation finance.

2nd Webinar: Investigating the viability of sub-national risk pools in Kenya and the Caribbean

Owing to the inherent link between disaster risk management (DRM) and climate change adaptation, financing approaches within DRM may be applicable in an adaptation context. Risk pooling, a type of risk transfer instrument, allows for entities facing common exposure to a climate hazard to pool their risk in order to obtain financial coverage. Risk pools are advantageous in managing climate risks as they may be based on parametric insurance policies thereby allowing for quick payouts post-disaster. Entities engaging in risk pooling are also able to receive premium cost reductions owing to a diversified portfolio. Risk pooling facilities addressing climate risks have only existed at the sovereign level. Since these facilities operate between countries, several potential participants have been reluctant to join, citing that their sovereignty may be compromised as the decision-making within the risk pool is made as a collective. Participants may also find premium payments from domestic budgets difficult to justify as they do not attain all the benefits accrued; the possibility of imminent donor and relief aid may further deter participants from entering risk pools. Sub-national risk pooling may overcome some of these barriers. Our presentation will provide an overview of the functionality of the risk pools; a case study of an existing risk pool based in Caribbean (sovereign); and, a hypothetical case study of a Kenyan sub-national risk pool.