Working group on climate change and natural resources

Recent work

Combatting climate change and protecting people and natural resources: In support of the 2024 ECOSOC cycle, the CEPA working group on institutions, climate action and environment provided policy advice on governments engaging with the insurance industry to ensure that climate risk pricing and the regulatory structure were designed to ensure that the industry continued to provide risk transfer for climate-related disasters and helped protect vulnerable groups and regions.

Background

Climate change and biodiversity loss remain major global challenges threatening food security and human well-being worldwide. Progress towards achieving SDGs 13, 14, and 15 has stagnated or deteriorated across all regions of the world. This poor performance can be attributed to a large degree to institutional factors, such as the fragmentation of responsibility for combating climate change and for the sustainable management, protection and restoration of natural resources in many countries.

Recognizing that climate change mitigation and adaptation call for technical and programmatic shifts as well as reform of institutional structures, cultures, and capacities, the Committee decided to study the institutional challenges and opportunities related to climate action and the protection of natural resources, both on land and under water, for the first time at its 21st session (2022). In related work on public financial management, the Committee has also drawn attention to questions of public sector capacity for the effective management of sustainable public procurement at all levels.

CEPA observations and insights

Regulating and reforming the insurance industry to combat climate change and accelerate implementation of the 2030 Agenda: At its 23^rd session, the Committee noted that years of large catastrophe losses due to more frequent and severe climate-related weather events had led to insurance coverage gaps in many countries, with devastating impacts for Governments and individuals, especially vulnerable groups. Increased collaboration between governments and the insurance industry was required, paired with accelerated regulation and reform, to better mitigate the risks associated with climate change. Enhancing the capacity of Governments at all levels to analyse risks, incentivize investments in resilience, prevention, and rehabilitation, and explore the development of tailored financing mechanisms, including parametric approaches to insurance, was seen as urgent.

Strengthening local and national capacity to attract climate funding

At its 22^nd session, the Committee underscored the need for expanded capacity to access climate finance. Among other observations, it emphasized the need to expand, as a matter of priority, the provision of training and assistance to improve the skills of the Governments of developing countries, and subnational authorities in particular, in analyzing data and designing climate projects that could attract investments.

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Building strong institutions to combat climate change and protect natural resources

At its 21^st session, the Committee noted that the fragmentation of responsibility for combating climate change and the sustainable management, protection and restoration of natural resources was a major institutional barrier to achieving Sustainable Development Goals 13, 14 and 15. Governments were encouraged to prioritize mechanisms for policy coherence, including through the promotion of ecosystem management and territorial development approaches within and across administrative boundaries. Simplified regulatory frameworks and clear distribution of responsibilities across all levels of government were part of the solution, along with increased capacity in natural capital accounting.

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Building capacity for the effective management of sustainable public procurement at all levels

At its 20^th session, the Committee stressed that the potential of sustainable public procurement was underutilized. By leveraging public expenditure, Governments could lead by example, stimulating markets for sustainable products and services and helping steer society towards more sustainable consumption and production patterns. Market mechanisms could be used to expand procurement options but required inspection and enforcement along with the capacity in the public sector to support them. Supreme audit institutions could play a crucial role in monitoring progress at the national level and adequate legislation should be in place to do so effectively.

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What action does ECOSOC recommend?

ECOSOC encourages Governments to build the capacity of the public sector in natural capital accounting based on the System of Environmental-Economic Accounting and strengthen the accountability of public institutions with regard to environmental policies by including an assessment of the state of natural resources under their jurisdiction as part of regular performance assessments (ECOSOC resolution 2023/28, para. 10).

ECOSOC recalls the need to strengthen the global response to climate change by increasing the ability of developing countries to adapt to its adverse effects, foster resilience, accelerate the full implementation of all the Goals and targets of the 2030 Agenda and integrate climate change measures, as appropriate, into national policies, strategies and planning, as well as the importance of mobilizing means of implementation from all sources, including adequate financial support, taking into account the specific needs and special circumstances of developing countries, and calls upon developed countries and the relevant international organizations and funding mechanisms to prioritize training and assistance for developing countries to improve their skills in analyzing data and designing climate projects that can attract investments (ECOSOC resolution 2023/28, para. 11).

ECOSOC notes with concern that the fragmentation of responsibility for combating climate change and for the sustainable management, protection and restoration of natural resources can be a major institutional barrier to the achievement of Sustainable Development Goals 13, 14 and 15, and encourages Governments to prioritize the establishment and strengthening of mechanisms for policy coherence to this end, inter alia, through the promotion of ecosystem management and territorial development approaches within and across administrative boundaries (ECOSOC resolution 2022/9, para. 7).

ECOSOC encourages Governments to leverage public expenditure to stimulate markets for sustainable products and services and help steer society towards more sustainable consumption and production patterns and to enhance efforts to build the requisite capacity for the effective management of sustainable public procurement at all levels (ECOSOC resolution 2021/12, para. 11).

Technical guidance for government officials

MDREA Membership Application

CEPA strategy guidance note on promotion of coherent policymaking

MDREA Membership Application

CEPA strategy guidance note on ecosystem management

MDREA Membership Application

CEPA strategy guidance note on long-term territorial planning and spatial development

Expert papers on this topic (2016-present)

MDREA Membership Application

MDREA Membership Application

MDREA Membership Application

MDREA Membership Application

Building strong institutions for addressing climate change and for the sustainable management of natural resources (conference room paper, 21 December 2021)