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Case Study 1
Case Study 1
2 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
Gender and
Climate Change Finance
A Case Study from The Philippines
Amihan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
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2 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
Foreword:
Gender is Crucial in Climate Change Finance
I
nvesting in women is one of the most effective ways understood by addressing the intimate connections between
to advance sustainable development and fight climate climate change, agriculture and rural poverty. In the Phil-
change devastation. Existing conditions and discrimi- ippines, approximately 30 percent of the population lives
nation determine who is most impacted by “natural” below the poverty line and rural agriculture provides a pri-
disasters. Women are the majority of the 1.3 billion mary source of income and subsistence livelihoods. Some
people living in the deepest poverty worldwide, and 75 percent of the rural population is considered poor and
people in poverty bear the brunt of climate change impacts. social hierarchies, such as gender and ethnicity, further shape
They are most dependent on the environment for livelihoods, the experience of poverty. Climate change poses a threat to
food, fuel and medicine. Women often lead communities important development issues such as water supply, food
in conserving natural resources, adapting crops to chang- security, health, natural resources, and protection against
ing soil and climatic conditions, and rebuilding following natural hazards.
natural disasters.
The feminization of poverty and gendered divisions of From Coping Strategies to Policy Needs
labor present clear differences in how climate change impacts The study shows that it is women who have led their house-
women and men, and their respective capacities for coping holds and communities in the development of agricultural
with and adapting to climate’s changes. And while women coping strategies including food preservation, mixed crop-
tend to bear a disproportionate burden of adjustment to cli- ping and crop diversification, water harvesting and irriga-
mate change, they contribute less than men to greenhouse tion, growing reliance on wild fruits and forest products and
gas emissions. cultivating at higher levels. Financial coping strategies include
Still, women’s voices are largely absent from policy dis- shifting from crop production, taking out loans, selling off
cussions and negotiations over climate change. The preva- livestock, seeking government financial assistance, reducing
lence of men in decision-making—which is often most acute food consumption, and migrating to find other sources of
in economic spheres—means that special efforts must be work and income.
made to involve women in climate negotiations. Therefore, The studies also show that policymaking is often too nar-
while women’s lives and livelihoods should be central to the row in scope, failing to adequately address development and
development of policies and mechanisms to finance climate equity. According to the Intergovernmental Panel on Climate
change mitigation and adaptation, gender considerations are Change, climate policy should carry three roles: to control the
thus far scant. atmospheric concentrations of greenhouse gases; to prepare
Given this context, governments must ensure their cli- for and reduce adverse impacts of climate change and take
mate financing policies are informed by gendered realities. advantage of opportunities; and to address development and
With the support of Heinrich Boell Foundation, WEDO has equity issues (IPCC, 2007).
launched a pilot initiative on climate change financing in Currently, the Philippines financing policy framework
adaptation and mitigation at the national level, starting with has limited focus on women’s concerns and minimal wom-
this case study from the Philippines. Partnering with Athena en’s participation. For example, in assessing the Philippines
Peralta, a Philippines-based consultant on women, poverty national financial regime, the study found a lack of recognition
and ecology, the study analyzes the challenges of financing of links between climate change and the financing of overall
gender equality in climate change mitigation and adaptation development goals, including gender equality; an inordinate
financing; identifies the specific issues of concern for women reliance on market-based solutions that don’t account for
such as agriculture, food sovereignty, disease, migration, and gender roles and feminized poverty; and a lack of consultation
agro-fuel production; and provides recommendations for and participation of women and women’s rights advocates.
improving women’s lives through climate change mitigation
and adaptation financing. The author used a combination of Women as Agents of Change
quantitative and qualitative second-person data with original Women are not only victims of climate change, but also
interviews and analysis to complete the studies. effective agents of change in relation to both mitigation and
adaptation. They have a strong body of knowledge and exper-
Making the Connections tise that can be used in climate change mitigation, disaster
Gender and climate financing in Philippines can only be reduction, and adaptation strategies.
4 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
Those who
contribute
least to climate
change will be
the hardest hit.
R
elative to rich, industrialized countries, the Phil- neo-liberal development trajectory that emphasizes export-led
ippines is a minor contributor to global green- and debt-driven growth.
house gas (GHG) emissions, which are now Climate change scenarios for the Philippines (e.g., Lasco
known to cause global warming. Even so, it is et al. 2006, 2007; Lasco and Pulhin 2008) predict adverse
highly vulnerable to climate change. Eight out environmental and socio-economic consequences includ-
of ten Filipinos are exposed to climate-induced ing: greater frequency and intensity of heat waves, droughts,
natural disasters, and more than three-fourths of the national floods, and typhoons; altered ecosystems; reduced output
Amihan Magbubukid
economy derives from climate-sensitive sectors, particularly and productivity of the agriculture, fishery, and forestry sec-
agriculture (Garcia Rincón and Virtucio 2008). Moreover, the tors; livelihood losses, food insecurity, and diminished water
country’s emissions have been steadily rising due mainly to supplies; and heightened incidence of certain diseases. The
unsustainable land and energy use linked to its espousal of a brunt of these changes will be borne by poor people since
6 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
vulnerability to current and future risks associated with climate sius should the amount of GHGs in the atmosphere double.
change. This stems from at least three factors: its location and The box below gives a snapshot of climate change impacts
geography; its economic dependence on climate-sensitive by sector.
agriculture and fisheries, agro-industry, and tourism; and More than three out of 10 Filipinos live below the poverty
its developing country status and worsening poverty prob- line, and poverty incidence rose from 30 percent in 2000
lem that translate to lack of capital, technology, and human to 32.9 percent in 2006 (Garcia Rincón and Virtucio 2008).
resources to mitigate and adapt to climate change. Some 75 percent of the rural population is considered poor
The country lies across the western rim of the Pacific (Balisacan 2008 in ibid.). Social hierarchies such as gender
typhoon belt and has a discontinuous coastline of 32,000 and ethnicity further shape the experience of poverty. Pre-
meters (and with 70 percent of the country’s municipalities liminary evidence suggests that slightly more Filipino women
located in coastal areas). Climate-related risks include tropi- and women-headed households are poor as compared to
cal cyclones, rising sea levels, and the effects of El Niño. A men (Encarnacion 2008). Not only do poor people tend to
study by the Philippines’ Initial National Communication on inhabit disaster-prone and environmentally precarious areas,
Climate Change (PINCCC) (Republic of the Philippines 1999) but also their heavy reliance on pastures, fishing grounds, and
observes that sea levels rose almost 15 cm in a 40-year period forests for their livelihoods and other basic needs make them
beginning in 1960. particularly susceptible to the degradation and depletion of
Although their share of gross domestic product has been natural resources (UNESCAP 2003).
steadily shrinking, agriculture, fishery, and forestry continue
to compose 18 percent of the economy and serve as the Impacts on Rural Communities and on Rural Women
foundations for the country’s agro-industrial and agro-services Women farmers in the Philippines compose over 70 percent of
sectors (World Bank 2007). Agriculture is the main livelihood paid and unpaid agricultural labor in rice and corn production
base for 35 percent of the country’s labor force, while some (Reyes-Cantos and Bernabe 2006 in Spieldoch 2007). They are
60 percent of the country’s coastal population rely on marine often small owner-cultivators, tenants, and farm workers, with
resources for a living. The World Bank calculates that 85 the primary tasks of planting, weeding, harvesting, sacking,
percent of the country’s gross national product comes from and storing seeds; while men are mainly responsible for pre-
sectors at risk from rising temperatures and weather variability paring the land, applying fertilizers and pesticides, and other
(Garcia Rincón and Virtucio 2008). The Climate Research Unit mechanized tasks. Amihan,2 a national non-governmental
of the World Wide Fund (CRU-WWF 1998 in Garcia Rincón organization of Filipino peasant women with members in 32
and Virtucio 2008) estimates a rise in temperatures of 0.1–0.3 provinces (see the box on page 8), notes that its members
degrees Celsius over a decade, while the PINCCC (Republic of are already feeling the effects of climate change.
the Philippines 1999) predicts an increase of 2–3 degrees Cel- According to Amihan, the main manifestation of climate
8 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
Climate Change (IACC), which is tasked with proposing ing and managing climate-related risks in agriculture, and the
climate change policies and preparing country positions on PTFCC’s (2007) Philippine Climate Change Strategic Frame-
the negotiations around the United Nations Framework Con- work broadly mentions the need for agricultural technologies
vention on Climate Change (UNFCCC). The UNFCCC and the and drought-resistant crops, hardly any measures have been
Kyoto Protocol were adopted in 1992 and 1997 and ratified proposed to build climate resilience in the agriculture and fish-
in 1994 and 2003, respectively, committing the country to the ery sector. A general review of the country’s climate-change
provisions set out in “Non-Annex I Party.” policies and development plans gives a sense that the issue
More recently, the Presidential Taskforce on Climate remains peripheral to the Government’s macroeconomic goal
Change Mitigation and Adaptation (PTFCC) was formed in of achieving sustained economic growth, even though it is
2007 to address the impacts of climate change, paying particu- becoming increasingly clear that it will have adverse conse-
lar attention to ensuring compliance to air emission standards quences for the latter effort.
and combating deforestation and environmental degradation There is a disproportionate focus on mitigation, especially
in general. The PTFCC is made up of a number of government on the promotion of renewable energy. The “energy bias” is
agencies as well as representatives from business and civil apparent in the fact that the PTFCC is currently chaired by
society. The IACC currently acts as its technical arm. the Department of Energy (DOE) even though Administrative
As a developing country and relatively minor emitter of Order No. 171 creating the taskforce states that it shall be
GHGs, the Philippines is not obligated to curb its GHG emis- chaired by the DENR. Furthermore, the “energy bias” is reflec-
sions. Nonetheless, under the 2004–2013 Philippine Energy tive of a preference for “hard” scientific and technology-based
Plan (PEP), new and renewable energy sources are targeted solutions over “soft” policies that address socio-economic
to expand to 53 percent of the country’s total energy require- needs and differences (Lambrou and Piana 2006). While land
ments in 2013 from 51 percent in 2004. Since the ratification use, particularly agriculture, is the foremost source of GHG
of the Kyoto Protocol, the country has participated in the emissions in the country, very little has been done on main-
Clean Development Mechanism (CDM),4 which is essentially streaming an ecologically friendly land-use policy.
geared towards increasing investments in GHG abatement In short, there is a broad disconnect between current gov-
opportunities in developing countries. ernment policies for climate-change mitigation and adaptation
While the 2004–2010 Medium-term Philippine Develop- and the priorities and needs articulated by poor rural women
ment Plan (MTPDP)—the key document that steers national in the previous section.
development programs and determines public resource allo-
cation—hardly takes into account the looming challenges of Financing the Philippines’ Response to Climate
climate change (Lasco et al. 2007), it does call for the Gov- Change: a Critical Review
ernment to take advantage of opportunities presented under
Financing policies for climate change
the CDM to boost the development of indigenous energy
mitigation and adaptation
resources. As of February 15, 2008, 16 CDM projects have
been registered with the Department of Environment and Current Policies in the Philippines
Natural Resources (DENR) and are expected to prevent the Consistent with the “energy bias,” fiscal policies on mitiga-
emission of 481,863 tons of CO2 per year (DENR 2008). This tion in the Philippines are closely associated subsidies and
is equivalent to around 1 percent of the country’s annual CO2 incentives under the PEP to attract domestic and foreign
emissions. The Philippine Clean Air Act was also passed in investments in renewable energy development. Yet, at the
1999, while the Bio-fuels Act was adopted in 2006 to pursue same time, the Government continues to offer a package of
energy efficiency and security as well as cut emissions. incentives for the expansion of investments in fossil fuels that
The Philippines’ adaptation policies tend to be concen- contribute to climate change.
trated on lowering risks and responding to natural disas- Important sources of mitigation finance include CDM proj-
ters, especially those associated with tropical cyclones. For ects; the Global Environment Facility (GEF), which is jointly
instance, several flood-management infrastructure projects are administered by the United Nations Development Programme
currently being undertaken (Lasco et al. 2007). The province (UNDP), the United Nations Environment Programme (UNEP),
of Albay, which was hardest hit by typhoons in 2006, is the first and the World Bank; loans from international and regional
local government to work on disaster- and climate-proofing. banks; and overseas development assistance (ODA). The
The 2007 Albay Declaration calls for the improvement of World Bank’s Carbon Finance Facility is supporting seven
evacuation sites, the introduction of climate change education CDM-related projects in the Philippines, mainly dealing with
in school curricula, and training of local officials in disaster wind and geothermal power generation (World Bank 2008).
preparedness. The Asian Development Bank (ADB) has also financed sev-
While the 2004–2010 MTPDP cites the importance of reduc- eral initiatives in the country including the Rehabilitation
10 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
the provision of public subsidies, including fis-
cal incentives.
More than
three out of Scaling up CDM projects and piloting and
10 Filipinos establishing a carbon trading system.
live below
the poverty
Expanding ODA, loans, and grants from donor
line.
countries as well international and regional
financial institutions.
Overall, the Philippine Government’s financing-policy Qualitatively, the country’s policy regime around financing
Amihan Magbubukid
response to climate-change mitigation and adaptation com- climate-change mitigation and adaptation is problematic for
prises four tracks: at least three reasons:
Promoting investments in renewable-energy projects through 1.Lack of recognition of the links between financial strategies
12 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
financing—cannot be designed
in isolation from overall develop-
ment financing and policy. Community Strategies
To Adapt to and Cope with Climate Change
2. An inordinate reliance on
market-based solutions—No agricultural adaptation strategies financial coping strategies
doubt markets have a role to • Practice crop diversification • Engage in off-farm work
play in raising climate change • Look for other sources of income in the
• Plant crop varieties that are resistant to
funds, but market-based solu- country and abroad
tions will always be imperfect droughts, floods, and pests • Take out loans from moneylenders, rela-
and inadequate as stand-alone • Plant fruit trees and root crops tives, and friends
policies. Perhaps the most cogent • Cultivate at higher levels • Sell off livestock
argument against market-based • Practice contour farming • Seek government financial
financing has to do with its failure assistance
• Plant bamboo to prevent soil erosion
to account for fair distribution. • Rent out, sell, or pawn farm lots
• Construct temporary drainage • Reduce food consumption
As emphasized by feminist and
environmental economists, mar- or canals Source: NEDA (2008).
kets prices are in essence about
determining who is willing to pay
for a scarce good, and thus have inherent tendencies to would tend to prioritize international and regional trade and
“price out” or exclude the poor as well as the non-monetized financial agreements, such as WTO regulations, over climate
and non-commercial sectors where women predominate change policies.
(Gender CC 2007; Lee 2007).
For instance, CDM projects that combine GHG abate- 3. Lack of consultation of women’s organizations—While
ment with poverty alleviation would tend to be micro-scale the Philippine Climate Change Strategic Framework is cur-
projects in micro hydro and biomass energy as well as rently undergoing consultation among stakeholders, wom-
community reforestation and agro-forestry activities (Lam- en’s groups are not among them. Similarly, as noted above,
brou and Piana 2006). However, the approval process for the Government discussions around SBN 1890 exclude the
CDM projects is both cumbersome and costly, rendering NCRFW. These practices demonstrate the prevailing and
small-scale projects unviable and making it difficult for poor mistaken view among policymakers that climate change
communities to apply. Moreover, while the CDM could in and financing for mitigation and adaptation in particular are
theory offer opportunities for the diffusion of renewable gender-neutral. The NCRFW is, however, starting to recog-
energy options addressing rural women’s needs (e.g., solar nize that climate change is a women’s issue. At the 52nd
stoves), in actuality carbon investors are likely to find such Session of the UN Commission on the Status of Women, it
projects considerably less financially attractive than one-off highlighted Filipino women’s vulnerability to natural disas-
investments in industry and transportation (Skutch 2002). ters, food shortages, and diseases linked to climate change
To cite another example, the introduction of user fees for (NCRFW 2008). Women farmers have clearly articulated their
environmental services, with the sound objective of internal- priorities and needs and must be fully integrated in decision-
izing environmental costs in market prices, could, depending making processes around financing design, management,
on how it is implemented, have regressive distributional and operation. Indeed, there is a strong case for channeling
impacts, preventing the rural poor and women, who are funds towards rural women, who are already in the frontline
the most dependent on the environment, from accessing of mitigation and adaptation efforts.
such services. International financing facilities such as the GEF and
More generally, the Gender and Climate Change Network donor grants have been likewise criticized for systematically
(Gender CC 2007) points out that markets are oriented failing to consider the gendered and social costs of climate
towards short-term profitability whereas climate change change-related projects. The World Bank’s Climate Invest-
mitigation and adaptation policies must necessarily take a ment Funds have remained a donor-driven endeavor, with
long-term view if they are to address the needs of present developing countries and civil society—including women’s
and future generations. This is a key principle in under- groups – largely marginalized from their design (Tan 2008).
standing the concept of sustainable development. In the An Action Aid study (Mitchell et al. 2007) also concludes
context of heightened economic globalization, the Network that there is little evidence of specific efforts to target poor
also expresses the concern that a market-based approach women in mitigation and adaptation activities funded as
groups.8 These proposals need to be studied closely for of ecological debt campaigns—such as Acción Ecológica,
urgent implementation. Jubilee South, and the World Council of Churches—point out
14 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
that the recognition of the concept also entails the uncondi- financing and development goals: gender equality, poverty
tional cancellation of illegitimate financial debts being claimed eradication, and sustainable development. More concretely,
from poor countries in order to free-up resources for mitiga- the mobilization of these funds must be complemented by a
tion and adaptation. Case studies have established the differ- range of policies that address poverty and social imbalances,
ent channels through which external financial debt generates e.g., debt and investment management. Additionally, the
ecological debt (Peralta 2006). funds ought not to be raised at the expense of other develop-
ment needs that continue to be severely under-resourced.
Some recommendations for government
In the Philippines, the ongoing discussions around SBN
financing interventions
1890 and the establishment of a Framework Programme on
While addressing the global inequities described above— Climate Change provide a crucial opportunity to discuss
through ecological reparation and compensation, as well alternative policy regimes as well as to reshape the financial
as through debt cancellation for developing countries—is architecture around climate change from the perspective of
the most justice-oriented and significant method of raising the rural poor and women. Needless to say, a first step would
funds for tackling climatic vulnerabilities, national and local be to intentionally involve the rural poor and women and
strategies could also have important impacts. make processes more participative so that “strategies and
At the national level, financing to deal with climate change interventions can truly identify and meet the needs of those
must be situated within the broader context of development they aim to assist” (Brody et al. 2008: 4).
Strengthening Approved • Climate risk reduction mainstreamed into key national and selected local plans and processes
the Philippines’ for funding • Enhanced national and local capacities to develop, manage, and administer projects
Institutional Capacity through UNDP addressing climate change risks
to Adapt to Climate
• Improved coping mechanisms improved through pilot adaptation projects
Change (NEDA and
DENR)
Furthermore, the Philippine Government could carefully The author is from the Philippines and is a consultant for
study and consider, in close consultation with all stakeholders the Poverty, Wealth and Ecology Project of the World Coun-
(especially the rural poor and women’s groups), the follow- cil of Churches. She completed a Post-graduate Diploma
ing proposals for raising funds for climate change mitigation in Feminist Development Economics and a Master of Arts
and adaptation: (MA) degree in Economics of Development at the Institute
of Social Studies in The Hague, the Netherlands. She received
Conduct an ecological debt audit in partnership with civil her Bachelor of Science (BS) degree in Economics at the
society, including farmers, fisher folk, and women’s groups. University of the Philippines (Diliman). Her research and
The findings could be used to seek the cancellation of the advocacy interests are focused on gender and international
country’s illegitimate debts, which, in turn, would make trade, finance and sustainable development.
16 G e n d e r A ND C l i m a t e c h a n g e f i n a n c e
The author would like to thank Zenaida Soriano and Teresita Economy-wide Assessment of the Philippines”, ASEAN Economic Bulletin
Vistro of Amihan, Felizardo Virtucio of the World Bank Office Vol. 25 (1): 21–30.
in Manila and friends (who prefer to remain anonymous) in Dargantes, B., C. Predo and H. Franciso (2008), “Adaptation and
various government agencies for generously sharing infor- Strategies to Climate-induced Disaster: A Case Study of Households and
mation. Needless to say, the usual disclaimers apply. Communities in Leyte”, paper presented at the 3rd Conference of the
Resource and Environmental Economics Foundation of the Philippines,
10 June 2008, Manila, Philippines.
Notes Department of Energy or DOE (2007), “Philippine Country Report:
1 This estimate excludes land-use data, which would most likely Moving towards Energy Independence and Sustainable Development”,
increase the percentage somewhat. presentation for the UN ESCAP Workshop on Business Models and
Financial Frameworks to Scale-up Responses to Climate Change,
2 This section draws heavily from interviews with Amihan.
Clean Energy and Sustainable Development, 18 July 2007, Bangkok,
3 See Reyes-Cantos and Bernabe (2006) in Spieldoch (2007) for a con- Thailand, retrieved from http://www.unescap.org/esd/climatechange/
cise case study of trade liberalization, agriculture, and women in the workshop/2007_07_18/documents/Thu,%2019%20July/Session5-1/5_
Philippines. Hershey%20T.%20dela%20Cruz.pdf.
4 The CDM allows a industrialized countries to implement emission- Enarson, E. (2000), “Gender Issues in Natural Disasters: Talking Points
reduction projects in developing countries. These earn saleable certified and Research Needs” in Focus Programme on Crisis Response and
emission reduction (CER) credits, each equivalent to one tonne of CO2, Reconstruction Workshop, ILO: Geneva.
which can be counted towards meeting Kyoto targets (see UNFCCC Ford Runge, C. and B. Senauer (2007), “How Bio-fuels Could Starve the
website: http://unfccc.int/kyoto_protocol/mechanisms/clean_develop- Poor”, Foreign Affairs, May/June 2007, retrieved from http://www.foreig-
ment_mechanism/items/2718.php). naffairs.org/20070501faessay86305-p10/c-ford-rungebenjamin-senauer/
5 The GAD Budget provision mandated all government agencies and how-biofuels-could-starve-the-poor.html.
instrumentalities to allocate a minimum of 5 percent of their total appro- Freedom from Debt Coalition (2008), “Is the Philippine Debt Problem
priations for GAD programs and projects (see http://www.ncrfw.gov.ph/ Over?”, Manila Times, 20 January 2008, retrieved from http://www.
inside_pages/about_us/about_us.html). manilatimes.net/national/2008/jan/20/yehey/top_stories/20080120top2.
6 Based on the current exchange rate of US$1=PhP46. html.
7 See, for instance, an analysis by Antonio Tujan (2005) on the loan Garcia Rincón, M. F. and F. K. Virtucio (2008), Climate Change in the
component of Japanese ODA to the Philippines. Japan is the country’s Philippines: A Contribution to the Country Environmental Analysis, World
biggest bilateral donor. Bank Office Manila: Manila, retrieved from http://siteresources.world-
bank.org/INTPHILIPPINES/Resources/PhilippineCEACC1July.pdf.
8 For a brief description of these alternative financing mechanisms, see
Gender CC (2007), “Gender: Missing Links in Financing Climate Change
Oxfam (2007) and the South Centre (2008).
Adaptation and Mitigation”, unpublished position paper presented at the
UNFCCC COP 13, Bali, Indonesia, December 2007, retrieved from http://
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