Climate Finance, Climate Change Resilience, and Application to PPP Projects

CEUs: 6.0

Course Description

This IP3 course focuses on the strong convergence between climate change and public-private partnerships for the delivery of public infrastructure and services. It does so by analyzing the application into PPPs of the latest instruments designed to cope with the challenges posed by climate change from two perspectives:

a. Climate finance, understood as the design, formulation, structuring, and use of financing instruments and sources explicitly aimed at supporting mitigation, adaptation, and resilience efforts to address climate change, and

b. Climate resilience, entailing the design, formulation, and implementation of tools embedded in PPP projects to increase the ability of the public infrastructure in question to prepare for, recuperate from, and adapt to the impacts of climate change.

Most scientific evidence clearly points out to the effects that human activity is having in destabilizing the climate, a trend that has been accelerating, and is having pernicious impacts, ranging from weather unpredictability, extreme temperatures, ocean warming and acidification, rising sea levels, floods, and extended droughts, among a myriad of other examples. These impacts pose an acute threat to public infrastructure and the services they provide, and thus to the quality of life of most countries.

Climate change matters from a public-private partnership perspective because societies worldwide are increasingly being forced to cope with these rather significant impacts, either by:

i. Designing or adapting public infrastructure to shield these valuable investments from climate change-related risks;
ii. Building infrastructure and providing services explicitly aimed at actually ameliorating the effects of climate change, or
iii. Making extended use of financial mechanisms that ensure resources are adequate for climate change mitigation

Along this line, PPP policy frameworks and individual projects increasingly need to take into consideration climate-related uncertainties, particularly in the case of capital-intensive infrastructure investments.

The goal of the course is threefold. The first goal is to provide the participant with an understanding of the impacts of climate change, primarily those related to public infrastructure and services in general, and PPPs in particular.

The second goal is to provide a knowledge basis for the formulation and implementation of climate finance solutions that can be used to finance public infrastructure projects implemented by means of a PPP.

The third goal is to provide to the participant with knowledge about the key tools that can be embedded in PPP projects to ascertain either their resilience to risks posed by climate change, or to actually ameliorate climate change impacts.

Learning Outcomes

Through successful completion of this course, participants will be able to:

  • Explain the relationship between the challenges posed by climate change, the instruments utilized to cope with them, and PPP policy framework programs and projects.
  • Identify how different countries manage climate change
  • Summarize how climate finance mechanisms tap into alternative sources of financing for PPP projects
  • Evaluate the tools embedded in PPP infrastructure projects to ensure resilience to climate change-related risks
  • Justify the capacity of PPP projects to address climate change problems

Who Will Benefit

  • Seasoned professionals from the public sector who need to learn about how different countries manage climate change, and the instruments available to do so
  • National, regional and local government officials (ministry of energy, public works, infrastructure, water, environmental, economy, finance or PPP/privatization units of such ministries

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