unep / undp / wrigreen climate fundreadiness programme

UNEP / UNDP / WRIGreen Climate Fund

Readiness Programme

11 July 2016

Structure of the Presentation

• Introducing the Green Climate Fund

• UNEP / UNDP / WRI GCF Readiness Programme in Uzbekistan

• Some insights

About Green Climate FundLaunched during COP 17 in 2011 (Durban) as an operating entity of the financial mechanism of UNFCCC; fully operational in 2015

Largest fund globally that is fully dedicated to climate change

Unique in diversity of accredited entities (National entities, UN agencies, CSOs, Banks etc.)

Currently 33 agencies have been accredited to GCF (July, 2016).Funding proposals

B.11 in Nov 2015: 8 projects (168 MUSD)

B.13 in June 2016: 9 projects (257 MUSD)

Remarks on Green Climate Fund

• Centrepiece of long-term finance under UNFCCC

• GCF Vision:

• Promote a paradigm shift towards low-emission and climate-resilient development

• Induce a change in the daily decisions investors and consumers make

Remarks on Green Climate Fund• Strategic Impact Areas:

• Adaptation:• Livelihoods of people, communities and regions• Health and well-being of people, food and water

security• Infrastructure and built environment• Ecosystems and related services

• Mitigation:• Low-emission energy and electricity• Low-emission modes of transport• Buildings, cities, industries and appliances energy

intensity; Land use and forests

Remarks on Green Climate Fund

• GCF Investment criteria

• Impact potential

• Paradigm shift potential

• Sustainable development potential

• Responsive to recipients needs

• Promote country ownership

• Efficiency & effectiveness

Resources & Allocation

GCF Architecture

10.3 billion in pledges

10 billion committed

35 governments, 8 developing countries, cities

National Designated Authorities have a broad scope, from convening national stakeholders, to approving National Implementing Entities and all projects, to approval of readiness support and national strategic oversight.

ROLE OF NDAS

• Green Climate Fund promotes Direct Access of funding through National Implementing Entities (NIEs)

• NIEs are accredited through a decision of the GCF Board• The main accreditation levels are:

• Project management, Grant Award, On-lending / blending

• Four different project sizes• Micro: under 10 MUSD, Small: under 50 MUSD, Medium: under

250 MUSD, Large: over 250 MUSD

• Three risk categories (International Financial Corporation)• Low, medium and high

ACCREDITATION

GCF Readiness Programme BMUB provides €15 M to the UNDP/UNEP/WRI programme

to support 9 countries from 2013 onwards

In parallel, over 40 countries are funded by GCF secretariat directly for preparedness

Global Overview

UZBEKISTAN NEPAL

KENYA

PHILIPPINES

PHASE 1: Benin, Ghana, Colombia, El Salvador, Fiji

PHASE 2: Kenya, Nepal, Philippines, Uzbekistan

COLOMBIAEL SALVADORBENIN

GHANA

UNEP/UNDP/WRI Programme: Active in 9 countries until end 2016

• Action 1.1: Provide information and advice to the government focal institutions on climate finance regarding the requirements for direct access to funds of the GCF

• Awareness raising on the GCF and its requirements regarding fiduciary and institutional capacities of the GCF

• online information platform and/or a series of knowledge products so that climate finance stakeholders in Uzbekistan understand the GCF and key GCF focal institutions in country

• technical workshop that involves the focal institutions in the type of projects and programmes the GCF will fund and their relation to other sources of climate finance, including the GEF, AF, and CDM, with particular focus on inter-ministerial coordination

UZBEKISTAN WORK PROGRAMME

• Action 1.2: Support the government focal institutions in consulting and identifying a National Designated Authority (NDA)

• identify national institutional options for the operationalization of a NDA through a mapping of potential NDAs against NDA functions

• conduct workshops with identified/nominated NDAs candidates to train them on the roles and functions of an NDA

• facilitate national consultations on the NDA selection• develop necessary procedures and documents to enable effective

execution of NDA role for Uzbekistan


• Action 1.3: Support Uzbekistan in identification, assessment and strengthening a national institution to directly access climate finance from the GCF (NIE)

• mapping of potential NIEs (mandates, capacities) against NIE functions and accreditation standards

• NIE accreditation workshop • NIE capacity self-assessment in order to identify its current level of

capacities as well as any additional capacities that may still be required

• NIE to prepare a capacity development strategy to address any identified needs and gaps

• support to identify relevant expertise to implement the capacity development strategy and work to address capacity gaps including through targeted technical assistance


• Action 2.1: Support Uzbekistan’s stakeholders in assessing the existing pipeline and development of procedures to scale up potential proposals (mitigation and adaptation) seeking climate finance, especially those seeking GCF support

• review existing pipeline and lessons learned so far (GEF, CDM, AF) and analyzes the potential to scale up efforts in priority sectors

• develop draft requirements for projects and programmes to be eligible for climate finance, especially for those seeking GCF finance

• assess linkages of potential programmes and projects to existing and planned national policies and sectoral strategies and evaluate them against GCF investment criteria


• Action 2.2: Build capacity of key institutions and actors involved in developing and sustaining a project and programme pipeline

• strengthen coordination and information flow between the ministries and agencies who play a role in the domestic mitigation and adaptation activities, including incorporating GCF guidance on funding of projects and programmes

• conduct series of workshops and trainings with key stakeholders in public and private sectors to facilitate the build-up of the pipeline of projects and programmes

• provide technical assistance to projects and programmes for attainment of critical milestones in the early stage project development process, such as business plan development or financial structuring

• provide ongoing technical assistance to public and private sector project and programme developers with a view to submitting proposals to relevant climate funds, including GCF, in one or two identified priority sectors


• Action 3.1: Assess climate change-related priorities and associated financing required to address/implement those priorities, and identify potential sources of funding - international, national, private and public - and current barriers to investments

• mapping of the LEDS investment plan to identify areas for operationalization; to prioritize actions for short and long-term investment; and to identify gaps in sectors or barriers for adequate financing

• identify climate change risks and adaptation priority areas for investments in agriculture, and climate change risks and mitigation priority areas for investments in energy sector, including buildings

• conduct pre-feasibility assessments for adaptation/mitigation priorities identified

• conduct cost-benefit analysis of adaptation/mitigation options identified


• Action 4.1: Train LFIs to identify, assess and structure financing plans for climate-relevant investment opportunities in the public and private sectors

• raise LFI awareness on general climate change finance issues through a workshop and training on climate-relevant investments as well as through the knowledge developed

• Action 4.2: Support financial institutions in public and private sectors in Uzbekistan in effective coordination between national stakeholders to facilitate the process of developing and financing climate-relevant investments across sectors

• assist LFIs to understand, assess and compare levels of risk and potential returns of various types of investments, including via cost-benefit analysis; strengthens LFI skills related to project financing structures and modelling in mitigation and adaptation sectors; and train experts of LFIs on the criteria for evaluating climate change projects


• Originally 5 activity areas: NDA, strategic frameworks, NIE support, pipeline development, knowledge management

• Project Preparation Facility Nov 2015• Now 5 activity areas: NDA, strategic framework, NIE support, NAP,

knowledge management• PPF enlarged to IIEs, activity area 4 removed• Readiness and Preparatory Support implemented through delivery

partners.

GCF SECRETARIAT’S READINESS AND PREPARATORY SUPPORT

• Quickly changing environment• Developing policy framework• GCF Sec and Board are new• Paris Agreement / NDCs

• Fit for purpose accreditation• Potential level of accreditation crucial to development of pipeline• NDAs and NIEs (or IIEs) to work together from very early stages to

ensure national strategies are aligned with pipeline

SOME INSIGHTS

• Setting up the NDA• Coordination mechanism, composition• Strategic choices: IIEs, NIEs, both?

• Direct access• Selecting an NIE• Accreditation level and experience

• Pipeline development• On GCF overall:

• only one project concept template and one project proposal template• developing a GCF proposal is time consuming, costly and risky• lead time between a decision on accreditation and a first possible

funding proposal submission

SOME INSIGHTS

unep / undp / wrigreen climate fundreadiness programme

Environment