CLIMATE CHANGE ADAPTATION FINANCE IN ZAMBIA A Call to Transparency and Accountability ZAMBIA COUNTRY REPORT Prepared by Zambia Climate Change Network and Caritas Zambia for the Adaptation Finance Accountability Initiative (AFAI) June 2015 ACKNOWLEDGMENTS The Zambia country report, Climate Change Adapta- as coordinated the editing and layout process. At tion Finance in Zambia: A Call to Transparency and the same time, the editor, Mary Paden, deserves Accountability would not have been possible without our gratitude as she helped make this report high the full participation of the following people: quality. In Zambia, many thanks goes to members of the Cli- Last but not the least, we would like to thank all mate Change Network for conducting research to respondents from Lwangwa, Sinazongwe, Senanga, track climate change adaptation financial in-flows in and Mongu districts and numerous other officers Zambia and also establish the level of transparency working for the Ministry of Finance and the Minis- and accountability in the utilisation of these funds at all try of Agriculture and Livestock, for providing infor- levels. We also thank Pelum for supporting a study on mation on the issues covered in this report. Special the case of Sinazongwe and Zenga irrigation schemes. thanks go to all the participants who participated in Most of the information in this report is based on these the validation workshops of the two researches that two important researches. In addition to these organ- form the bulk of the information in this report. isations, we also thank the researchers, Dr. Choolwe Beyani and Parkie Mbozi from the Institute of Economic Finally, we pay special tribute to OXFAM and WRI and Social Research – University of Zambia, and for providing the funds to implement the AFAI proj- Muketoi Wamunyima and Wilfred Miga. ect. Without them, our efforts to track climate change adaptation funds and advocate for transparency and In America, we want to thank Lisa Dougherty-Choux accountability in the utilisation of these funds would of the World Resources Institute (WRI), who not have taken place. authored some of the sections in the report as well s The effect of burning trees: Picture from the Western Province (Inonge Mutukwa, 2014) 2 3 TABLE OF CONTENTS Acronyms 4 Executive Summary 5 1. Introduction 11 1.1 The Government of Zambia 11 1.2 Community participation 12 1.3 Transparency and accountability 12 1.4 Summary 13 2. Adaptation Finance Background and Context 15 2.1 Effects of climate change in Zambia 15 2.2 Adaptation finance in Zambia 15 2.3 National planning for climate change 17 2.4 Local knowledge of climate change and adaptation planning 20 2.5 Roles of the government in adaptation finance 22 2.6 Defining adaptation-relevant projects 23 3. Case Study Selection and Methodology 25 3.1 Selection process of adaptation funds 25 3.2 Sources of climate change funds 25 3.3 The adaptation projects 26 3.4 Research tools 29 3.5 Conclusions from survey results 32 4. Analysis of Local Institutions 34 4.1 Actors in adaptation finance 34 4.2 Institutions 36 4.3 Governance characteristics 36 4.4 Local financial structures for adaptation 40 4.5 Local accountability processes 41 5. Conclusion and Recommendations 44 Bibliography 46 3 ACRONYMS AFDB African Development Bank NCCRS National Climate Change Response Strategy AFTI Adaptation Finance Tracking Initiative NGO Nongovernmental Organization CCFU Climate Change Facilitation Unit NPE National Policy on Environment CSOs Civil Society Organizations ODA Official Development Assistance DMMU Disaster Management and Mitigation Unit PPCR Pilot Programme on Climate Resilience DRR Disaster Risk Reduction SADC Southern Africa Development Community ENRMMP Environment and Natural Resource Management and Mainstreaming SNDP Sixth National Development Plan Program SPCR Strategic Plan for Climate Resilience GDP Gross Domestic Product UNFCCC United Nations Framework Convention IDA International Development Assistance on Climate Change IFC International Financing Corporation ZCCN Zambia Climate Change Network MTENR Ministry of Tourism, Environment and ZDA Zambia Development Agency Natural Resources ZDAD Zambia Development and Assistant NAPA National Adaptation Plan of Action on Database Climate Change ZMK Zambian Kwacha NCCDC National Climate Change and Development Council 4 5 EXECUTIVE SUMMARY Climate change is emerging as one of the biggest To make sure that this increased spending reaches threats to Zambia’s economic and social develop- the most vulnerable communities, Oxfam, the Over- ment. Because most of Zambia’s population lives in seas Development Institute (ODI), and the World poverty,1 it is imperative that people receive assis- Resources Institute (WRI) launched the Adaptation tance to adapt to climate change. The impacts of cli- Finance Accountability Initiative (AFAI) at the 2012 mate change over the last 30 years, such as floods UN climate change negotiations in Doha, Qatar, and droughts, were estimated to have cost Zambia to monitor the flow of adaptation finance. Zambia $13.8 billion in GDP loses (Watson et. al. 2013). Sec- is one of the four developing countries participat- tors heavily reliant on natural resources, in particular ing in a pilot programme in which local civil society rain-fed agriculture on which most of the population groups tested financial tracking tools and examined relies on for their livelihoods, appear to be the most community involvement and financial accountability. vulnerable to climate change. Existing and planned This report is based on research that was done by infrastructure projects are also at risk, due to more the Zambia Climate Change Network (ZCCN) and frequent and severe floods (Watson et. al. 2013). It is Pelum Zambia. It provides insight from efforts that therefore critical for Zambia to invest in climate adap- were made to track the delivery of adaptation finance tation to build resilient communities and economic from the national to local levels, and identifies the sectors that are key to the country’s development role and extent of participation from civil society at path. the community level. While substantial gains in adaptation finance have The AFAI research in Zambia used various tools and been made primarily from international donors, methods to track adaptation finance through national stakeholders including civil society organizations and local financial structures to identify whether the (CSOs) supporting vulnerable communities, identi- needs of the most vulnerable communities were fied several areas where further efforts are needed to being met. Researchers asked the communities strengthen the effectiveness of the delivery of adap- whether they were aware that adaptation funding tation finance to reach the ones who need it most. was available to benefit them and whether they Because international donors are increasing their could participate in planning for its use. The research pledges for adaptation finance annually, civil society sought to answer the following questions: needs to ensure that this funding reaches and bene- fits the most vulnerable communities within Zambia. l Are communities participating in adaptation proj- The impacts of climate change will usually be highly ect planning? localized and varied depending on the vulnerabilities l Are their needs being addressed? of the region; therefore community participation is crucial to provide the necessary information for effec- l How are CSOs helping communities get the fund- tive responses to climate change. ing they need? l Are government authorities responsive to the needs of the communities? 5 s Road construction affects trees: Northern Province New Kasama Luwingu Road, 2014 To answer these questions, the researchers used a directed by Zambia’s Department of Agriculture combination of research methods to collect informa- which oversees conservation farming and fish tion, including qualitative research, questionnaires, pond development and runs pilot projects for cli- direct observations, reviews of documents, inter- mate change adaptation farming in the area. The views, and focus group discussions with stakehold- research station was established for the local fam- ers at the national, regional, and local levels in three ers to learn new methods of farming that would case studies: reduce their vulnerability to climate change. At the same time, adaptation funds are used for infra- l Sinazongwe District: Of the total adaptation fund- structure development—clearing of canals and ing disbursed to Zambia, 38 percent is for projects the setting up of the weather station at the Kataba in this district. The main funders in this district are agriculture camp. the United National Development Bank, (UNDP) l Luangwa District: Here, the Ministry of Agriculture the World Bank, and the African Development Bank and Livestock, with funding from UNDP was sched- (AfDB) for projects related to agriculture, crop diver- uled to build a dam at Mukokwe, which would collect sification, irrigation and the construction of dams. rain water (reservoir type) to recuse food insecurity The researchers followed closely the construction in the area. This project was still in the planning of the dams in the Sinazongwe district. stage. In addition, the Luangwa Child Develop- l Senanga District: The World Bank and AfDB fund ment Agency (LCDA) was supporting irrigation most of the projects in this district. Here, adap- projects sited on three areas, near Kavalamanja, at tation funding is channeled primarily for
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