GREENCLIMATE FUND

ALIGNING CLIMATE FINANCE WITH PHILIPPINE NATIONALLY DETERMINED CONTRIBUTION (NDC): A NATIONAL MULTI-SECTORAL DIALOGUE

10- 11 October 2017 | Sofitel Plaza Hotel, Manila, The Philippines

PROJECT DEVELOPMENT FOR GCF: Public and private sector project cycle, programming and pipeline development

Presenter:Dr. Joseph Intsiful, Senior Climate Information and Early Warning Systems Specialist.

• Background and perspective

• Focus areas of the Fund

• GCF Project Cycle

• Proposal Review & Approval Process

• Summary & Conclusion

Overview

Observed change in the climate system: Recent warming of the planet is unequivocal and

unprecedented

The Earth surface temperature has been successively warmer in the last three decades than in any previous decade since 1850

The planet is over 1°C warmer than it was in 1860, but there are substantial geographic differences in the rate of warming

Climate-related Disasters (GAR,2015)

Economic damage (US$) per disaster (1995-2015)

Economic damage (US$) per region (1995-2015)

Economic losses (absolute and as % of GDP, 1995-2015)

Climate related disasters are on the rise:

• About 90% of natural disasters

• About 90% of casualties

• About 70% of economic losses

Climate related-disasters will continue to riseas climate change gathers pace

Mitigation: reducing emissions• long-term goal of keeping the increase in global average temperature

to well below 2°C above pre-industrial levels;•aim to limit the increase to 1.5°C, since this would significantly reduce

risks and the impacts of climate.

Adaptation•strengthen societies' ability to deal with the impacts of climate

change; •provide continued and enhanced international support for adaptation to

developing countries.

Transparency and global stocktaking: come together every 5 years to set more ambitious targets as required by science;

Climate Finance: Developed countries shall provide financial resources to developing countries and aim to achieve a balance between adaptation and mitigation

Some Key Outcomes of the COP21 Paris Agreement

Climate Services for Adaptation Planning

Season to yearNext hour to 10 days DecadeLong termclimate change

Short to medium term weatherforecasts

Eg tropical cyclone, storm surge, flood

Probabilistic seasonalto inter annualforecast eg: probabilities of severity and intensityof extreme events

Decadal climatetrend analysis

Climatechange scenarios

emergency planning activation and responseEg: evacuation

Long-term strategic planningInfrastructure developmentLand use zoning and planningBuilding codes

Urban & coastal areas seasonal preparationof Stocking of constrution materials Adaptation planning

Local and national emergency serviceGovernmental authoritiesPublic

Urban plannersLocal to national govtBanksCompanies

Legislators

USER

SAPPLIC

ATION

SERVICE

Local and national emergency serviceConstruction companiesFood suppliers

RCMs simulate extreme events (e.g. tropical cyclones)

8 Strategic Focus Areas

With a focus on (6 investment criteria):• Impact potential• Paradigm-shift potential• Country ownership• Sustainable development co-benefits• Efficiency & effectiveness• Responsiveness to needs of recipients

Project development & approval process

Stage 2 Second level due diligencePerformance against investment criteriaConsistency with GCF safeguards & policies

Stage 3 Independent TAP assessmentPerformance against investment criteria

Stage 1 Completeness checkComplete information and documentation Adequate level of advancement

Stage 4 Submission of package to Board

Acc

redi

ted

Entit

y

ND

AFunding Proposal Review Process

Stage 1: Completeness of Funding Proposal

Project documentation:• No-objection from the country NDA(s)• Feasibility study -> providing rationale for proposed

design, structure & costs• Procurement plan, budget breakdown• Environmental and social impact assessment• Gender assessment and analysis• Risk assessment• Logic framework• Stakeholder consultations

The GCF Funding Proposal TemplateContents

Section A PROJECT / PROGRAMME SUMMARY

Section B FINANCING / COST INFORMATION

Section C DETAILED PROJECT / PROGRAMME DESCRIPTION

Section D RATIONALE FOR GCF INVOLVEMENT

Section E EXPECTED PERFORMANCE AGAINST INVESTMENT CRITERIA

Section F APPRAISAL SUMMARY

Section G RISK ASSESSMENT AND MANAGEMENT

Section H RESULTS MONITORING AND REPORTING

Section I ANNEXES

Stage 2: Second-level Due Diligence

Paradigm shift potential

Sustainable development potential

Country ownership

Performance against investment criteria

Consistency with GCF policies

Impact potential

Needs of the recipient

Efficiency and effectiveness

Gender policy

Risk framework

Results management and reporting

Environmental and social safeguards

Fiduciary standards

Legal framework

Impact potential

Paradigm shift potential

Sustainable development potential

Needs of recipient

Country ownership

Efficiency & effectiveness

Potential of the programme/project to contribute to the achievement of the Fund's objectives and result areas

Economic and, if appropriate, financial soundness of the programme/project, and for mitigation-specific programmes/projects, cost-effectiveness and co-financing

Beneficiary country ownership of and capacity to implement a funded project or programme (policies, climate strategies and institutions)

Vulnerability and financing needs of the beneficiary country and population in the targeted group

Wider benefits and priorities, including environmental, social, and economic co-benefits as well as gender-sensitive development impact

Degree to which the proposed activity can catalyze impact beyond a one-off project or programme investment

Investment Criteria

Investment Criteria –Attention Points (1)

Climate Impact Potential

• Is the linkage to climate change vulnerabilityclear and strong based on robust climate scenarios?

• Is the methodology to calculate emission reductions acceptable & robust?

• Is there a strong justification for increased resilience, based on evidence of climate impacts?

Investment Criteria –Attention Points (2)

Viability and Sustainability

• Is the proposal economically, environmentally and financially sound?

• Can results be sustained after GCF funding ends?

• Is there a plan and budget for operations and maintenance?

Investment Criteria –Attention Points (3)

Efficiency and effectiveness

• Impact vs funding (e.g. $/tCO2)

• Justification for proposed financial instrument and funding amount

• Co-financing and crowd-in additional source of financing

Examples of gaps identified in the completeness check and 2nd level due

diligence

Lack of country strategic planning

Projects developed ahead of country programming:• Weak country ownership• Often lead to weak projectl design and

implementation

1) Incomplete information- Budget breakdown missing- Disbursement schedule not provided

2) Missing documentation- Feasibility study not provided

- Environmental and Social Management Plan (ESMP) needed, but not available

3) Not sufficiently advanced- Resettlement action plan needed, but not developed- Stakeholder consultation not conducted

Common Gaps Identified in Completeness Check

Strengthening Performance against Investment Criteria

1) Climate impact potential- Use a robust methodology to calculate emission reductions or number of beneficiaries.- Demonstrate evidence of climate-related impact.

2) Long term sustainability- Improve viability of economic activities.- Duly consider O&M plan and its cost coverage.

3) Efficiency and effectiveness- Crowding in other sources of funding (for mitigation and

private sector projects).

Enhancing Consistency with GCF Policies

1) Gender policy- Conduct gender assessment and identify impacts and

livelihoods opportunities for women. - Disaggregate expected results by gender.

2) Logic framework- Strengthen cause-effect relation to remove barriers.- Narrow down scope of activities, more focused.

3) Risks - Solidify risk mitigation measures to reduce risks.

Lega

l arr

ange

men

tsAccredited Entity

Secretariat

GCF Board

Concept note (optional)

Generation of Project

idea Submission of funding

proposal

No-objection

Analysis and recommendation

Board Decision

NDA

TechnicalAdvisory Panel

Trus

tee

Possible request for Readiness support by

NDA

Possible support from

Project Preparation

Facility to AE

Based on Board decision B.07/03

1

2

3

4

5

6

Summary 0f project development & approval process

Financial instruments Size

Infographics - Financials

Geographical Distribution

Priority Countries

Access Modality

Impacts

Infographics – Potential Impacts

GREENCLIMATE FUND