Climate Prooﬁng the Sandy Bay water service improvement ... · water service improvement project, St. Vincent ... Step 2 – Assess the implemen+ng modali+es ... requires mobilisation

ClimateProofingtheSandyBaywaterserviceimprovement

project,St.Vincent

Module:Iden+fyinganda1rac+ngpoten+alclimatefundsforbuildingtheclimateresilienceof

aspecificwatersupplysystem

1

Background•  This module is a knowledge product developed as part of the

‘Climate proofing the Sandy Bay water services improvementproject,St.Vincent’fundedby

•  TheprojectaimstoassistCentralWaterandSewerageAuthorityin delivering safe and sustainable water supply services tocommuniDes in the Sandy Bay area of St. Vincent - focusing onsupport toward the prepara+on of a project appraisal documentforsubmissionforfunding.

•  Implemented between January 2016 and March 2017 by aconsor+ummadeof:

•  Projectpartners:

2

Whatmoduleisit?

3

Module1:Understandingclimaterisksandvulnerabili+esforaspecificwatersupplysystem

Module2:Iden+fyingandappraisingop+onstobuildclimateresilienceofaspecificwatersupplysystem

Module3:Iden+fyingandappraisingthecostsandbenefitsofbuildingtheclimateresilienceofaspecificwatersupplysystem

Module4:IdenDfyingandaLracDngpotenDalclimatefundsforbuildingtheclimateresilienceofaspecificwatersupplysystem

Objec+vesofthismodule

•  Aim: Provide guidance and awareness on iden+fying andaccessing climate funding op+ons for water supplyprojects,focusingonexamplesfromtheSandyBayproject.

•  Audience:Projectdevelopers

4

Contentsofthismodule

5

•  IntroducDontoclimatefinance

•  Howtogetstarted?

•  Overviewof4entrypoints:Step1–Iden+fypoten+alfundingop+onsStep2–Assesstheimplemen+ngmodali+esStep3–Appraiseandselectpoten+alfundingop+onsStep4–LaythegroundworkStep5–Developtheproposal/conceptnote

•  Exercise – Assess what climate funds meet your project’sneeds

6

Introduc+ontoclimatefinance

Climate Finance – a new priority …

•  Adapting to climate change and reducing greenhouse gas emissions requires mobilisation of financial resources on a large scale

•  Financing of the necessary activities is being carried out in a complex setting: Resources are channeled through bi- and multilateral channels of cooperation and a number of international funds and financing mechanisms

•  Climate finance initiatives are heterogeneous, with diverse modes of access and funding priorities

•  National public finance systems often face difficulties in absorbing the additional funding and stakeholders often lack a full overview of financing options

Thecomplexlandscapeofclimatefinance

• 

Source:ODI,2015

BilateralFunders

MulDlateralClimateFunds

Private NaDonalclimatefunds

UNFCCCChannel

NonUNFCCCChannel

7

Howtogetstarted?

KeyconsideraDons:1.  Whataretheclimatefundsthatareavailable?2.  Howcanyouaccessthem?3.  Howdoyouselectaspecificclimatefund?4.  Howdoyoupitchyourprojecttothisspecificclimatefund?Fourentrypoints:

Step1–IdenDfypotenDalfunding

opDons

Step2–AssesstheimplemenDngmodaliDes

Step3–AppraiseandselectpotenDalfundingopDons

Step4–Laythegroundwork

Step5–Developtheproposal/concept

note

8

Step1–Iden+fypoten+alfundingop+ons

•  Review the online Climate Funds Update website (ODI,H e i n r i c h B ö l l S + a u n g N o r t h A m e r i c a )h1p://www.climatefundsupdate.org/

•  Consult the relevant ministry dealing with externaldevelopment aid for your country about climate fundingsourcesavailable

•  Create a long list of climate funds available that may beappropriate for your project (based on the previous twosteps)

Step1–IdenDfypotenDalfundingopDons

Step2–AssesstheimplemenD

ngmodaliDes


Step4-Laythe

groundwork

Step5–Developtheproposal/conceptnote

9

10

Example:ClimateFundsavailableforStVincent&TheGrenadines

UNFCCC&MulDlateral

BilateralGermany’s International Climate Initiative (IKI) EU/European Development Fund 11th (EDF 11th) UK Caribbean Infrastructure Partnership Fund

Green Climate Fund (GCF) Adaptation Fund (AF) Global Environmental Fund (GEF) Trust Fund – GEF-5/GEF-6 Special Climate Change Fund (SCCF) WB Pilot Program for Climate Resilience (PPCR)

•  Assess the implemen+ngmodali+es in terms of project implemen+ng and execu+ngen++es, project appraisal and approval processes, +meframes and planning ofiden+fiedac+vi+esforeachoftheclimatefundsiden+fiedinyourlonglist

•  Foreachtheshortlistedfunds,iden+fythefollowingparameters:q Mandate/objec+ves

q Fundingavailableandapprovedq Countrycap(ifrelevant)q Projectsizeq Projectreviewcriteriaq Projectapplica+onprocessq Accessmodali+es

q Projectapprovalprocess•  Recordalltheinforma+oninamatrix

Step2–Assesstheimplemen+ngmodali+es

11


Step2–Assessthe

implemenDngmodaliDes


Step4–Layoutthe

groundwork


12

Example-GreenClimateFund(I)

Mandate:TheGCFaimstopromoteaparadigmshiaandhelpdevelopingcountriestransformtheireconomiesandputthemonalowemissionandclimate-resilientpathway.Totalfundingpledged: USD10.3billion Approved:USD424.6millionProjectsize:•  Microscale(lessthanUSD10million)•  Smallscale(betweenUSD10and50million)Financialinstruments:Grant,concessionalloans,guaranteesandequityProjectreviewcriteria•  Investmentcriteria:impactpoten+al,paradigmshiapoten+al,sustainable

developmentpoten+al,needsoftherecipient,countryownership,efficiencyandeffec+veness

ProjectapplicaDonprocess:•  ThroughouttheyearonarollingbasisorrespondingtoRequestforproposals

•  Mediumscale(betweenUSD50and250million)•  Largescale(overUSD250million)

13

Example-GCF(II)

Projectapprovalprocess:•  ProjectapprovalprocessinvolvesNDA,implemen+ngen++es(IE)andGCFSecretariat,Boardand

AdvisoryPanel.•  13monthsfromconceptnotesubmissiontofinalprojectapproval

•  Deadline-submissionatleastthreeweeksbeforetheBoardmeeDng

AccessmodaliDes:•  CountryownershipthroughNa+onalDesignatedAuthority(NDA)and“no-objec+on”procedure•  Accessthroughaccreditedmul+lateral,regionalandna+onalen++es-seenextslide

ConceptDevelopment(opDonal)

PreparaDonandSubmissionofFundingProposal

AnalysisandrecommendaDonstotheBoard

BoardDecision

Conceptnotesubmission

Feedbackontheconcept

IE/EE/Inter-

mediary

Secretariat

No-objec+on

FundingproposalsubmissiontotheSecretariat

NDA/Focalpoint

Analysisandrecommenda+ontotheBoard

Secretariat

Boarddecision:-  Approval-  Condi+onalapproval

-  Rejec+on

Board

NDA/Focalpoint

SecretariatTechnicaladvisorypanel

IE/Inter-

mediary

1month 7months 3months2months

•  For micro and/or small-sized

proposals (less than USD 50million), a simplified approvalprocessisbeingdiscussed.

•  A pilot RFP may be launchedtarge+ng small-scale ac+vi+esinSIDSandLDCsintheareasofserving urgent adapta+onneedsandotherpriori+es.

Example-GCF(III)

14Source:h1p://www.greenclimate.fund/partners/accredited-en++es/ae-directory

Implemen+ngEn++esoftheGCF

Step3–Appraiseandselectpoten+alfundingop+ons

Ø  Using the matrix prepared under the previous step, discuss and select potential criteria for appraising and selecting a potential funding option. Potential criteria are provided in the next slides

Ø  Discuss and agree on a weighting system for each of the selected criteria (total weight should equal to 100%)

Ø  Assess and score each funding option against all selected criteria

Ø  Sum up the total score of each funding option Ø  Rank all funding options from the highest to the lowest score 15



ngmodaliDes

Step3–Appraiseand

selectpotenDalfundingopDons

Step4–Layoutthe

groundwork


16

Poten+alOp+onMappingCriteriaCriteria Informa3onforassessment

•  Financialresourcesinplace•  Difficult(financialsustainabilitynotclear)

•  Eligibleforyourcountry•  Noteligibleforyourcountry•  NewinsDtuDonhastobeestablished

•  Easytoaccess•  Complex(longlasDngapplicaDonprocess)•  Verycomplex(e.g.mulD-stageproposal

process)

•  Topics:adaptaDon,miDgaDon,…•  Volumeof(max/min)financialsupport•  Typeofsupport:grant,loan,co-financing

…

Overallvolumeandfinancialsustainability

ComplexityandDmerequirementsofapplicaDonprocess

FinancialStatus

EligibilityofcountriesandenDDes

Typeofprojectsandsortoffinancialsupportgiven(e.g.grant)

Eligibility

Accessibility

Typesofprojectsandfinancial

support

17

Poten+alOp+onMappingCriteriaCriteria Assessment

notreally

maybe/notsure

yes

Doesthefundmeetmyproject’s

needs?CanIapply?



FinancialStatus



Eligibility

Accessibility


support

Step3–Appraiseandselectpoten+alfundingop+ons

Ø  Questions for consideration: •  Which fund best fits your project’s needs? •  What steps would be necessary in order to get access to the

fund? •  Where do you see options and/or difficulties for your

organisation in applying for a fund? Why

18



ngmodaliDes

Step3–Appraiseand

selectpotenDalfundingopDons

Step4–Layoutthe

groundwork


Step4–Laythegroundwork(1)

•  Onceyouhave selected theclimate fund, setupa teamtoworkon theprojectfundingapplicaDon.

•  Engagewith the Fund’s NaDonal Designated Authority or Focal point inyourcountrytocommunicateinten+onofdevelopingaproposalandseekassistance.

•  Consult the ImplemenDngEnDty thatwill supportyour fundingproposal(if this is a Fund’s requirement).When selec+ng an Implemen+ng En+ty,iden+fyareasofexper+sethattheycanprovidetoassistthedevelopmentof the proposal (e.g. budge+ng, economic and financial analysis,Prefeasibilityandfeasibilitystudies,M&E,etc.).

•  Check the fund calendar for upcoming submission deadlines whichgenerallycoincidewiththeFundBoardmee+ngs.Ensureyouleaveyourselfenough+metopreparetheproposal. 19


Step2–AssesstheimplemenDngmodaliDes


Step4–Layoutthe

groundwork

Step5–Developaproposalforfunding

applicaDon


•  Check if the selected fund requires a one-step (fullproposal) or two-step applicaDon (concept notefollowed by full proposal). It should be noted thatwhile for some funds it may be a voluntary step,developingaconceptnoteishighlyrecommendedasexperience has shown that it leads to be1erproposals, by providing the opportunity to start adialoguewiththefund.

•  Read the proposal or concept note template andguidancedocuments.

•  CheckwhatsupporDngevidenceisrequired,suchas(1) map indica+ng the loca+on of the project/programme; (2)Financial/economicanalysis; (3)Pre-feasibility Study or Feasibility Study ; and, (4)EnvironmentalandSocialImpactAssessment

20



ngmodaliDes


Step4–Layoutthe

groundwork


Example–TheGCFconceptnoteform

PARTA:Project/ProgrammeInformaDon

PARTB:Project/ProgrammeDetails

PARTC:Financing/CostInformaDon

PARTD:ExpectedPerformanceagainstInvestmentCriteria

PARTE:BriefRaDonaleforGCFInvolvementandExitStrategy

PARTF:RiskAnalysis

PARTG:MulD-StakeholderEngagement

PARTH:StatusofProject/Programme

PARTI:Remarks

PARTJ:SupporDngDocuments

Source: www.gcfund.org/fileadmin/00_customer/documents/Operations/4.4_GCF_Concept_Note_Template.docx

•  ReviewexamplesofpastproposalssubmiLedtotheselectedfund toseewhatmaybeexpectedfromaproposal.

•  CollectandreviewbaselineinformaDon,including:(1)  Relevantscien+fic informa+onaboutthe impactsofandrisksposedbyclimatechange in

yourcountry,ifanadapta+onproject;(2)  Na+onalgreenhousegasinventoriesifami+ga+onproject;(3)  Informa+on on your country’s relevant na+onal priori+es and strategic frameworks for

sustainabledevelopment,povertyreduc+on,andclimatechangeetc.;(4)  Na+onalvulnerabilityandriskassessments,economicstudies,andotherresearchincluding

pastprojectevalua+ons,undertakenbyotherorganisa+ons(researchcentres,universi+es,NGOsetc.);

(5)  Anynewdatarequiredtofillingapsinknowledge(e.g.vulnerabilitymapping,surveys,CBAetc.).

•  Consult with key stakeholders including the target group (especially vulnerable

communi+es,minoritygroups),governmentstaff fromdifferentministriesordepartments,otherrelevantorganisa+ons,andsectorexperts.

21




ngmodaliDes


Step4–Layoutthe

groundwork


Research

Step1

ScopingandsituaDonanalysis

Iden+fying thecontext for the interven+on, including theexis+ngsitua+on (baseline), causes to problems, poten+al solu+ons, andstakeholderviews.

Developingtheresultsframework

Step2

Developingthelogicmodel

Iden+fying how the project/programme will logically lead, fromac+vi+estooutputs, tooutcomes,objec+veandgoal,sothatthedesiredchangeisachieved.

Step3

AssessingrisksandassumpDons

Iden+fyingassump+ons for the logicmodel tooccur,and risks totheproject/programme,includingenvironmentalandsocialrisksinlinewiththeFund’sEnvironmentalandSocialPolicy.

Step4

Assigningindicatorstomeasureprogress

Iden+fyingrelevantindicatorstomeasuretheproject/programme,includingsepngbaselinemeasuresandtargets.

Step5

AligningprojecttotheFund’sstrategicresultsframework

Aligningprojectobjec+veandoutcomestotheFund’sstrategicresultsframework.Fund’sindicatorsmustalsobeselected.

22



ngmodaliDes


Step5–Develop

theproposal/conceptnote

Step5–Developtheproposalorconceptnote

(1)

Step4–Layoutthe

groundwork

Developingtheresultsframework

Step6

Knowledgemanagement Describingwhatknowledgemanagementproductswillbecreatedand shared (e.g. best-prac+ce guidelines for a specific climatechangeadapta+onmeasure).

Step7

MonitoringandevaluaDonplan

Describinghowdeliverablesandresultswillbemeasured,andhowprogresswillbetrackedfrombaselinetotargets.

Step8

BudgetandDmeline Iden+fying the cost of the project/programme, and the +melineincludingstartandenddates,andkeymilestones.

Step9

Sustainability Describinghowthebenefitswilllastbeyondthefundingperiod.

Finalisingthetemplate

WriDngtheproposal Pupngalltheinforma+ongatheredintothetemplate.

Signoff Gepngthesignofffromtherelevantauthorityanden+ty. 23

Step5–Developtheproposalorconceptnote

(2)



ngmodaliDes


Step4–Layoutthe

groundwork

Step5–Develop

theproposal/conceptnote

Tipsforwri+ngaproposal

•  Compileandreviewtheconceptnote/proposaltemplatesandanyrelevantguidancefromtheselectedfund’swebsite.

•  Usesimple,clearlanguagetoansweralltheques+ons.•  Usetablesandbulletpointswhererequiredtopresent

informa+onclearlyandsimply.•  Have the proposal reviewed by one ormore people for clarity

andgrammaretc.•  Providerelevantdocumenta+onandsuppor+ngevidence(e.g.

Mapindica+ngtheloca+onoftheproject/programme,Pre-feasibilityStudy,FeasibilityStudy,EnvironmentalandSocialImpactAssessment)

24

25

Exercise

26

Whatyoucanexpecttolearnfromthisexercise

Ø  Tounderstandinterna+onalclimatefinanceop+onsandthemodali+esforaccessingfundsinrela+ontotheneedsofyourcountry

Ø  Toiden+fythemodali+esforaccessingclimatefundsØ  Toassesswhatclimatefundsmatchyourcountry’sneeds

27

Ø  CriteriaforOp+onMappingØ  ExerciseØ Reflec+ons

Agenda

28

Op+onMappingCriteria

Overallvolumeand financialsustainability

Complexity andDme requirementso f a p p l i c a D o nprocess

FinancialStatus

Eligibil ity ofcountries andenDDes

T y p e o fprojects ands o r t o ffi n a n c i a lsupport given(e.g.grant)

Eligibility

Accessibility


support

$

√√

√

adaptaDon

miDgaDon

biodiversity

29

Op+onMappingCriteriaCriteria Informa3onforassessment

•  Financialresourcesinplace•  Difficult(financialsustainabilitynotclear)

•  Eligibleforyourcountry•  Noteligibleforyourcountry•  NewinsDtuDonhastobeestablished

•  Easytoaccess•  Complex(longlasDngapplicaDonprocess)•  Verycomplex(e.g.mulD-stageproposal

process)

•  Topics:adaptaDon,miDgaDon,…•  Volumeof(max/min)financialsupport•  Typeofsupport:grant,loan,co-financing

…



FinancialStatus



Eligibility

Accessibility


support

30

Op+onMappingCriteriaCriteria Assessment

notreally

maybe/notsure

yes

Doesthefundmeetmyproject’s

needs?CanIapply?



FinancialStatus



Eligibility

Accessibility


support

31

Op+onMappingExercise

SelectedClimateFunds

FundOpDonno3

FundOpDonno2

FundOpDonno1

FundOpDonno4

Todothisexercise,pleaseusethefundsshortlistedinthematrixyouhaveprepared!

32


agreed$XXXbillionbut….

difficultbecause….

Fundno1

?

Accessibility complexbecause…

Typesofprojectsandfinancialsupport adaptaDon,

grants,…

Fundno2 Fundno4Fundno3

example

?

?

?

?

?

?

?

?

?

?

?

Eligibility

Financialstatus?

?

?

?

XYZ-Fund

33


Nowitisyourturntodotheexercise!Ø Breakupingroupsof4-5people(onegroupperfund)

Ø Asagroup,followtheseinstrucDons:Step1Brieflyscreentherelevantinforma+ononyourfund(seehand-out)Step2MatchtheinformaDonyoucollectedaccordingtothefourcriteriaStep 3 Illustrate your assessment by choosing cards by colour according to

yourassessmentofwhetheryourcountryshouldandcanapplyforthefund (green = yes, yellow =maybe, red = no) andwrite down a briefexplana+onofyourassessment

ForinformaDononthefundspleasereviewthematrixyouhaveprepared!

34

Op+onMapping–Reflec+ons

•  Which fund best fits your project’s needs?

•  What steps would be necessary in order to get access to the fund?

•  Where do you see options and/or difficulties for your organisation in applying for a fund? Why?

Thankyou!

35