Scene-settting presentation by Sophie Lavaud, Policy Analyst, Environment Directorate, OECD.

1. MAINSTREAMING CLIMATE RESILIENCE IN
INFRASTRUCTURE PLANNING
RATIONALE, KEY CONCEPTS AND ENABLING ENVIRONMENT
Sophie Lavaud
Climate Change Adaptation
OECD Environment Directorate
8th March 2023

2. Indonesia is highly vulnerable to climate change
• Indonesia: Top 1/3 of countries
exposed to climate risks (INFORM
Risk Index, 2019)
• Climate risks in Indonesia
– Sea-level rise
– Landslides
– Shift in rainfall patterns and
increasing temperatures
– Floods and droughts
• Indonesia is vulnerable to climate
risks
• High population density in
hazard prone areas
• Strong dependence on natural
resource
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Source: WB Climate Risk Profile Indonesia, 2022
Source: Climate Resilience Development
Policy 2020-2045
Bappenas

3. Infrastructure failure can lead to social hardship and
economic losses by disrupting access to basic life lines:
 Hurricane Katrina in (2005): power failure led to severe water
contamination, due to purification and wastewater treatment plants
seizing to function
 Floods UK (2007): 350 000 people without access to mains water
supply for over 2 weeks
 Superstorm Sandy (2012): 5.4 million commuters stranded in NYC
as roads and metro closed for at least 2 weeks
 Floods Serbia (2014): 25% reduction in power due flooding of a
coal mine
 Australian Bushfires (2019/20): infra damages exceeded USD
26/hectare;
Climate change impacts on infrastructure

4.  Increased reliability of service provision (ex post and ex
ante benefits)
 Increased asset life (reduced maintenance costs; avoid
need for costly retrofitting)
 Reap co-benefits: some climate-resilience measures (use
of natural components (e.g. green roofs; surrounding assets
with permeable land) generate biodiversity, climate
mitigation, or human wellbeing benefits
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Benefits of climate resilient infrastructure
USD 50 billion/year in flood defenses could reduce
expected losses up to USD 1 trillion by 2050
(Hallegatte et al., 2013)
Source: Lifelines: The Resilient Infrastructure Opportunity
(World Bank/ Hallegatte et al., 2019)

5. “Climate-resilient infrastructure is
infrastructure that is designed, built and
operated in a way that anticipates,
prepares for, and adapts to changing
climate conditions…
…it can also withstand, respond to, and
recover rapidly from disruptions caused by
these climate conditions” (OECD, 2018)
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What is climate-resilient infrastructure?
Source: https://www.oecd.org/environment/cc/policy-perspectives-climate-resilient-
infrastructure.pdf

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What is climate-resilient infrastructure?
Source: https://www.oecd.org/environment/cc/policy-perspectives-climate-resilient-
infrastructure.pdf
 Resilience measures are:
o Fortify coastal infrastructure against
flooding
o Increase cooling system capacity for
solar energy
o Building on higher ground to prepare
for sea-level rise
o Implement program for pruning and
managing trees near transmission
lines

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THE ENABLING ENVIRONMENT

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Planning and designing climate-resilient infrastructure
Source: OECD/IADB Policy Evaluation Framework on the Governance of Critical Infrastructure Resilience in Latin America, 2017
https://publications.iadb.org/publications/english/document/Policy-Evaluation-Framework-on-the-Governance-of-Critical-Infrastructure-Resilience-in-
Latin-America.pdf
o Policies and regulations
o Technical codes and
standards
o Facilitating climate risk
disclosure
o Voluntary guides, toolkits
and standards
o Designing appropriate
financing strategies

9.  Planning for climate resilient
infrastructure requires climate risk
assessment
 Climate risk assessment aims at
understanding and characterizing
climate risks
o Assessing hazards, vulnerability and
exposure
o Assess interdependent risks and
cascading impacts at asset and
operative level and beyond
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Climate risk assessment
Source: IPCC (2014): Fifth Assessment Report, Working Group 2, Chapter 19
AR5 Synthesis Report: Climate Change 2014 — IPCC

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 Resources available in the United
Kingdom to support climate resilient
infrastructure planning:
o The Environment Agency provides data for flood-
related parameters in their Flood Map used in
infrastructure development
o The Highways England Adaptation Framework
Model: process to identify activities that will be
affected by climate change and possible options
to manage risks
Climate risk assessment: examples
Source: UK government service
Check the long term flood risk for an area in
England - GOV.UK (www.gov.uk)
Source: Clim’ADAPT
Climate Change Adaptation Strategy and
Framework — English (europa.eu)

11. OECD simulation of potential macro-economic impacts of
Seine river flood in Paris region
 1.5 million households and business customers could face power supply
disruptions
 More than half of the 250 km metro line could be closed (only 1 of 14
lines operational)
 Road network disruptions could affect 5 motorways, several major
highways and all bridge crossings over the Seine river
 5 million customers could face disruptions to water supply
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19 billion in business operating losses (i.e. 65% of the direct losses)
Source: OECD (2014), Seine Basin, Île de France, 2014: Resilience to major floods,
http://www.oecd.org/gov/risk/seine-basin-ile-de-france-2014-resilience-to-major-floods-
9789264208728-en.htm.
Understanding future infrastructure impacts

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 Climate-resilient infrastructure can be promoted
through:
 National level policies:
o National Adaptation Plans/Strategies;
o National Infrastructure Plans/Strategies;
o Sectoral infrastructure development plans (transport,
energy, water strategies)
 (Sub)national Regulations:
o Strategic Environmental Assessments (SEA)
o Environmental Impact Assessments (EIA)
o e.g. South Africa: EIA on Port of Durban included a climate
risk assessment – original design was adapted (heightened)
to protect port from sea level rise
National policies and regulations
Port Durban, South Africa
Source: https://www.sahistory.org.za/place/durban-harbour-
and-port

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 Technical codes and standards need to be
adapted to account for climate change
impacts:
o New York state utilities regulator: electric, gas
and steam systems need to be protected against
impacts from climate change;
o France’s Nuclear Safety Agency updated water
discharge regulation to adapt to heatwaves;
o Korea Expressway Corporation adapted design
standards to enhance drainage capacity, bridge
design and embankment slopes;
Technical codes and standards
France Nuclear Power Stations during extreme heatwave
Source: https://lenergeek.com/2018/08/14/nucleaire-canicule-
polemique-tristan-kamin-tribune/

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 Increased public disclosure of climate risks can encourage infrastructure resilience
building by :
 informing investment decisions
 raise awareness
 stimulate action
 UK: Adaptation Reporting Power gives government power to require infrastructure
providers to report on their CC risk exposure
 USA: Securities and Exchange Commission: issued guidance that CC risks need to be
disclosed
Facilitating climate risk disclosure
Source: Techtarget,
https://www.techtarget.com/searchcio/news/252516019/SE
C-chair-touts-benefits-of-climate-risk-disclosure-rule

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 Climate impacts will increase needs for infrastructure investment
 Developing and communicating infrastructure plans can help investors identify
investment opportunities
 Public procurement processes can support climate resilience
 Lenders and public funders can use risk screening to identify infrastructure resilience
needs
 Public finance can be used to mobilise private co-financing
Financing strategies

16.  Time horizons: benefits span beyond administrative/political
cycles
 Uncertainty about future: climate-resilient infrastructure
needs to be prepared for range of different scenarios
 Information and capacity: awareness and information on
climate risks/projections not readily availale, in required
resolution
 Policy misalignments: can inadvertently distort incentives to
act/discourage the use of innovative solutions
 Externalities: many co-benefits may not result in generating
revenues for operators
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Challenges in developing climate resilient infrastructure

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THANK YOU
Sophie.Lavaud@oecd.org