The Philippine government has yet to sign the Copenhagen accord, the loose climate change agreement which recognizes the need for industrialized countries to make huge cuts in their carbon emission, but stops at specifying any mitigation targets.

However, civil society is telling President Arroyo that there's no rush signing it because it does not provide for an adaptation fund. The special fund was earlier proposed to equip developing countries, such as the Philippines, in preparing for any effects of climate change--for example, by setting up an early warning system and by constructing sea walls.

The accord instead promises that developed nations will put up a "green fund" of US$30 billion between now and 2012, and $100 billion by 2020. The sources of the fund and the mechanisms for monitoring its utilization have not been identified, however.

The Philippines may still push for the adaptation fund by the end of the year, when the climate change negotiations resume in Mexico.

In an interview with Newsbreak's Purple S. Romero, JUZHONG ZHUANG, assistant chief economist of the Asian Development Bank and author of the study "Economics of Climate Change in Southeast Asia: A regional review," explains the dynamics of the adaptation fund at both local and international levels.

How much should developing countries, and in particular, the Philippines, demand from the Annex I nations in terms of contributions to the adaptation fund?

The amount of adaptation funding needed in the developing world, and in the Philippines, depends on the agreement [or the lack thereof] on mitigation.

If an agreement and a binding framework emerge, say to curb the concentration level below 450 ppm, then the amount of adaptation funding needed would be much less than in the case where there is no agreement on mitigation targets.

Even if the world manages to agree on a tight target, assistance from Annex I parties is still required to address the climate impacts that are a result of past emissions and are already affecting developing countries. Allocation of adaptation assistance should depend on the degree of climate vulnerability, and the countries most vulnerable to climate change and extreme events, like the Philippines, should be given priority to access this assistance.

Developing nations are wary that assistance for adaptation would come in loans. Will this scenario prevail post-2012?

Loans may emerge among other forms of assistance to support investment in adaptation measures, although most should be on a grant/compensation basis.

What should the Philippine government do in order to strengthen the capacity of the country to fund climate change adaptation? Should we set aside a certain percentage of our gross domestic product for adaptation programs?

From the government of the Philippines' point of view, a certain amount of additional resources should be put in place to scale up the existing good development practices and "no-regrets" measures, considering current and future threats of climate change. However, the country will need significant technical as well as financial assistance from Annex I parties.

In what areas should the Philippines spend on in terms of adaptation? What should be the priority areas?

Agriculture and water resources are priority sectors, which are inter-linked, and food security issues should be looked at in parallel in the context of climate change. Disaster risk reduction and management is also a priority, and is already on top of the government's agenda.

What is your take on the viewpoint that it will be costly for local government units to fund adaptation programs?

Depends on what type of programs. Working together with other organizations and the central government, local government units could play a vital role in raising awareness about climate challenges locally and provide much needed information regarding adaptation options available to the local communities. Such programs are usually very cost effective.

How would boosting climate change adaptation affect the economy?

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