The UK and Netherlands, together with the World Bank, today announced funding
of up to £3 million (Euro 4 million) for a new research study that will
support developing countries to prepare for climate change.

The two governments will jointly fund the research study which will help
developing countries understand the costs of adaptation and how to prepare
for the impacts of climate change.

The joint announcement by Netherlands Development Minister Bert Koenders,
UK Environment Minister Phil Woolas and World Bank Director of Environment,
Warren Evans, was made during a panel debate with Sir Nicholas Stern and
other key climate change leaders at the UNFCCC climate change summit in Bali.

This study complements a regional review of the economic impacts of climate
change in Southeast Asia. The regional review is being taken forward by
the Asian Development Bank and governments from the region. The UK will
contribute a further £450,000 for this study.

In making the announcement Bert Koenders said:

“There is no time left. We have to be crystal clear. Adaptation costs should
be additional on the basis of the principle the polluter pays.”

UK Environment Minister Phil Woolas said:

“ No matter how successful we are in our efforts to prevent further climate
change, we will feel increasing effects for many years to come.Climate
change is affecting all countries and poor countries are being hit first
and hit hardest.

Adaptation to climate change is vital. Any future climate deal needs to include
adaptation to climate change as well as mitigation of it. But we also need to
make sure that those countries least able to afford the unavoidable impacts of
climate change are supported in planning for and managing those impacts. This
World Bank work will make a significant contribution to that effort.

I am pleased that the UK is able to support the regional review of the
economic impacts of climate change.The Stern Report released last year
has provided a vital economic foundation for the UK’s climate policy and
programmes. This study will help Southeast Asian countries identify cost
and implement vital change policies now and avoid higher costs in the future”.

UK Trade and Development Minister Gareth Thomas said:

“Tackling poverty won’t succeed if development plans don’t take account
of the potential long-term impacts of climate change. The studies launched
today will help developing countries to identify and plan for these future
risks, so that more people can be lifted out of poverty in years to come. The
more developed a country is, the more it will be able to deal with natural
disasters when they strike.

“The Stern Review told us that the costs of taking strong, early action
against climate change would be substantially less than the costs of dealing
with the damage it caused”.

The two-year adaptation study will be led by the World Bank. It will look at
why adapting to the impacts of climate change is essential to development. It
will help developing countries understand how to prepare and adapt to the
impacts of climate change and the costs involved in ensuring their development
plans and goals can manage the impacts of a changing climate. The study will
focus on six key countries and their experiences.

After the panel discussion Sir Nicholas Stern said of the new studies:
“Poor people will be hit hardest by the impacts of climate change. Urgent
action is needed to help developing countries prepare for and adapt to
climate change.

“It is vital we have a better understanding of the costs of developing
climate-resilient development plans, including how to prioritise between
different adaptation responses.

“Developing countries are increasingly understanding why they need to adapt. We
now need to start thinking about what this looks like in practice, and how
to ensure that development plans are sufficiently designed and budgeted for
to both reduce poverty and build climate resilience. This study will help
provide the tools and knowledge to enable this.”