Ecosystem based Adaptation in Mountain Ecosystems in Nepal mountain ecosystems. The project also aims

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    Programme Period: 4 years

    Atlas ID 00062837

    Project ID: 00080216

    Start date: July 2012 End Date December 2014 L-PAC Meeting Date: 23 February 2012

    Management Arrangement: NIM

    Ecosystem based Adaptation in Mountain Ecosystems in Nepal

    Coordinating Entity: Ministry of Environment, Science and Technology, Government of Nepal

    Implementing Partner: Ministry of Forests and Soil Conservation, Government of Nepal

    Expected CP Outcome(s): Environment and, energy and climate change mainstreamed into national and local development planning with a focus on gender, social inclusion and post-conflict environmental rehabilitation.

    Expected Output(s): Priority adaptation actions implemented in selected districts to build

    communities’ resilience to climate change

    ** including the IP budget and UNDP GMS

    Agreed by (Ministry of Forests and Soil Conservation):______________________________________

    Agreed by (UNDP):

    Brief Description

    Nepal’s national economy and people’s livelihoods largely depend on natural resources and ecosystems services. These are increasingly negatively influenced by climate change effects, including increased variability and extreme events. The National Adaptation Programme of Action (NAPA) and other national strategies and action plans have recognized that immediate actions are needed to minimize climate risks to society, economy and ecosystems. The Ecosystem based Adaptation Nepal (EbA-N) project aims to enhance capacity of local communities, demonstrate EbA measures for continued provision of ecosystem services, and support in strengthening the institutional capacity of key national Nepalese actors to build and better integrate ecosystem resilience options in national, sub-national and local level plans. This will promote EbA options as part of overall adaptation strategies in Nepal and reduce the vulnerability of communities, with particular emphasis on mountain ecosystems. The project also aims to develop ecosystem-focused decision-making tools, demonstrating EbA results at the local level, building the economic case for EbA and using knowledge and learning derived from the project to influence formulation of national and local policies and strategies for adaptation.

    Total resources required (BMU Germany via UNDP Cost

    Sharing Agreement with UNEP) 1,731,733**

     Initial Project Grant 100,000  Parallel Co-finance

    o BMU Germany (UNEP) 713,296 o BMU Germany (IUCN) 927,608

    Total allocated resources including co-finance:

    3,372,637

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    CONTENTS

    1. SITUATION ANALYSIS 1

    1.1 Location, Geographic and Climatic Context 1 1.2 Socioeconomic and Livelihood Context 3 1.3 Climate Change and its Impacts: A General Overview 4 1.3.1 Overall Trends of Increasing Ambient Temperatures 5 1.3.2 Increased Unpredictability on Water Availability – with Overall Decreased Seasonal Availability 6 1.3.3 Increased Frequency of Extreme Weather Events/Natural Disasters 6 1.3.4 Climate Change and its Impacts on Hills and Mountains 8 1.4 Policy Context 9 1.5 Institutional Context 11 1.6 Stakeholder and Baseline Analysis 11 1.7 Long-term Solution and Barriers to Achieve the Solution 14

    2. PROJECT SITE 18

    2.1 Site Selection Process 18 2.2 Rationales for Site Selection 18 2.3 Description of Project Site 19

    3. PROJECT STRATEGY

    3.1 Project Design Principles 21 3.2 Project Objectives, Outcomes and Outputs 22 3.3 Project Objective, Components and Outputs 23 3.4 Sustainability Analysis: Economic, Social and Environmental Benefits 30 3.5 Cost effectiveness of the Proposed Project 32 3.6 Replicability 33 3.7 Result Framework 37 3.8 Potential risks and assumptions 39

    4. MANAGEMENT ARRANGEMENTS 40

    4.1 Fund Flow Modality 40 4.2 Management and Financial Audit 41 4.3 Management Structure, Roles and Responsibilities 41 4.4 Project Coordination Mechanism 42 4.5 Field Level Project Coordination Committee 42 4.6 Project Executive Board 42 4.7 Project Management Unit 44 4.8 Field Office 45

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    5. MONITORING FRAMEWORK AND EVALUATION 46

    5.1 Project Start 46 5.2 Quarterly 46 5.3 Annually 46 5.4 Periodic Monitoring through Site Visit 47 5.5 Mid-term of Project Cycle 47 5.6 End of Project 47 5.7 Learning and Knowledge Sharing

    48

    6. LEGAL CONTEXT 50

    7. ANNEXES 51

    Annex 1: Major climate change related projects and programmes being implemented in Nepal.

    Annex 2: Site Selection Processes and Steps Followed

    Annex 3: Climatic and Non-climatic Threats/Pressures and Potential Adaptation Actions

    Annex 4: List of major stakeholders working in the areas/issues

    Annex 5 a: Proposed indicative activities with resources for the project

    Annex 5 b. Activities carried out by IUCN Nepal

    Annex 5 c. Budget Allocation to UNEP, UNDP and IUCN for Nepal partnership project

    Annex 6: Job Descriptions of Project Staff

    Annex 7 a. Tentative Annual Work Plan 2012

    Annex 7 b. Tentative Annual Work Plan 2013

    Annex 7 c. Tentative Annual Work Plan 2014

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    List of Tables

    Table 1: Nepal’s HDI over the years Table 2: Impact of Climate Change on Different Ecosystems Services and People’s Livelihoods Table 3: Stakeholder and Baseline Analysis Table 4: VDCs, Population and Households of Panchase Area Table 5. Social, Economic and Environmental Analysis Table 6: Result Framework Table 6: Potential Project Risks and Assumptions Table 7: Project Component and Lead Agencies Table 8: Project Management Staff and Budget Table 9: M& E work plan and budget

    List of Figures and Maps

    Figure 1: Map of Nepal Figure 2: Topographical Cross-Section of Nepal Figure 3: Map of Nepal Districts Showing Relative Overall Climate Change Vulnerability Figure 4: Map of Project Site Figure 5: Fund Flow Process Figure 6: Project Organization Structure

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    ACRONYMS AND ABBREVIATIONS

    ADB Asian Development Bank APF Adaptation Policy Framework APR Annual Project Review BMU The Federal Ministry for Environment, Nature

    Conservation and Nuclear Safety CBOs Community Based Organizations CBS Central Bureau of Statistics (of Nepal) CC Climate Change CDKN Climate and Development Knowledge Network CDRMP Comprehensive Disaster Risk Management Project CNA Capacity Needs Assessment CSOs Civil Society Organizations DADO District Agriculture Development Office DDCs District Development Committees DFO District Forest Officer DiSCO District Soil Conservation Office DLSO District Livestock Services Office EbA Ecosystem based Adaptation GIS Geographic Information Systems GIZ Deutsche Gesellschaft Fur Internationale

    Zusammenarbeit GLOF Glacial Lake Outburst Flood GCM Global Circulation Model GO Government Organization HDI Human Development Index ICIMOD International Centre for Integrated Mountain

    Development INGOs International Non-Governmental Organisations IPCC Intergovernmental Panel on Climate Change IUCN International Union for Conservation of Nature

    and Natural Resources LAPA Local Adaptation Programme of actions LDCF Least Developed Countries Fund Masl Metres Above Sea Level MCCICC Multi-Stakeholder Climate Change Initiatives

    Coordination Committee MoAD Ministry of Agriculture Development MoEST Ministry of Environment, Science and Technology MFSC Ministry of Forest and Soil Conservation MoFALD Ministry of Federal affairs and Local

    Development M&E Monitoring and Evaluation NAPA National Adaptation Program of Action NARC Nepal Agriculture Research Council NAST Nepal Academy of Science and Technology NBS Nepal Biodiversity Strategy NBSAP National Biodiversity Strategies and Action Plans NBSIP Nepal Biodiversity Strategy Implementation Plan NCCSP National Climate Change Support Programme NEPAP Nepal Environmental Policy and Action Plan NGOs Non-Governmental Organisations NPC National Planning Commission

    NTFPs Non-timber forest products PES Payment for Ecosystems Services PIR Project Implementation Reports PMU Project Management Unit PPCR Pilot Programme for Climate Resilience REDD Reducing Emissions from Deforestation and

    Forest Degradation SC Steering Committee SHL Sacred Himalayan Landscape SPCR Strategic Program for Climate Resilience ToRs Terms of Reference ToTs Trainers Trainings TYIP Three Year Interim Plans UNCED United Nations Conference on Environment and

    Development UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFCCC United Nations Framework Convention on Climate Change USD United States Dollar VDCs Village Development Committees VIA Vulnerability and Impact Assessment WCMC World Conservation Monitoring Center WWF World Wide Fund for Nature

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    1. SITUATION ANALYSIS

    1.1 Location, Geographic and Climatic Context

    Nepal lies between 80°4’ and 88°12’ East longitude, and from 26°22’ to 30°27’ North latitude, covering a

    territory of approximately 147,181 square kilometres that extends roughly 885 kilometres from east to

    west. It is a landlocked country, surrounded by India to the east, west and south, and China to the n