EPILOGUE ■ 267a more prominent role for wealthy industrialized cities to partner with cities
that are at low-income levels.
In contrast, Dodman, Mitlin, and Co in “Victims to Victors, Disasters to
Opportunities” examine the potential for community-based initiatives to help
the urban poor adapt to climate change. Th ey draw upon the experiences of
the Homeless People’s Federation of the Philippines in responding to disas-
ters. At the center of the organizing methodology are community savings pro-
grams, which provide a versatile means for acquisition of and relocation to less
vulnerable areas, thereby enhancing disaster preparedness and risk reduction.
Th e examples from the Philippines show how appropriate responses to some
aspects of climate change can be implemented through partnerships among
local organizations, professionals, and city offi cials.
Th e private sector has a substantial role to play in mobilizing resources to
address climate change adaptation and mitigation. In “Mobilizing Private Sec-
tor Resources toward Climate Adaptation and Mitigation Action in Asia,” Park
explores this role, particularly in Asia. He suggests that increased investment
could be achieved using institutional structure and public policy that can facili-
tate and create business-led innovation. Park also notes that it is challenging to
ensure that climate solutions help, or at least do not harm, poor, energy inse-
cure, and economically marginalized groups. He proposes a triple bottom-line
strategy for fi nancing climate change action in Asia. Th is involves the following:
(1) investing in sector-based carbon mitigation strategy for industries, encour-
aged, for example, by reduction of fuel subsidies; (2) fi nancing of community-
based ecosystem and clean energy microenterprises; and (3) building resilience
to climate change through market-based adaptation strategies, such as catas-
trophe bonds, contingent surplus notes, exchange-traded catastrophe options,
catastrophe swaps, and weather derivatives.
Whether as part of market-based approaches to address climate change or
otherwise, the cost of carbon is likely to rise, which will have substantial impacts
on municipal fi nances. Th e paper by Annez and Zuelgaray, “High Cost Carbon
and Local Government Finance,” examines the fi nancial impacts of rising car-
bon costs using case studies from the Indian state of Maharashtra and from
Spain. Th ey note that local government revenues are generally not dependent
on the price of energy, and therefore local governments see negligible fi scal
gain from increasing energy prices. However, many public services that local
governments provide, such as garbage collection, are energy intensive. Conse-
quently, higher energy prices will create an adverse fi scal shock for local gov-
ernments. Hardest hit will be smaller, less diversifi ed governments currently
operating at low levels of service because the most basic services tend to be
most energy intensive. Annez and Zuelgaray suggest that the appropriate pol-
icy response will be for higher levels of government, which generate surpluses