Concept note: Climate Envelope Programme Committee, 23 February 2018

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1 Concept note: Climate Envelope Programme Committee, 23 February 2018 Strategic questions Is the proposed pipeline for 2018 and indicative pipeline for 2019 and 2020 for the Climate Envelope considered in accordance with the guiding principles of the Climate Envelope? If and how could the Climate Envelope better combine a long-term strategic outlook with a responsiveness to political opportunities and agendas? 1. Context In addition to the long-term meteorological impact of climate change, climate change has proven to affect other social and environmental areas by exacerbating gender inequalities, accelerate and increase existing waves of migration, negatively affect the global biodiversity and it has the potential to push approx. 100 million people into poverty by The consequences of climate change is already leading to increased occurrences of floods, droughts and other natural disasters, in both the developing and developed countries. Meanwhile, mitigating and adapting to climate change can positively add to addressing other issues such as general pollution, which estimates find to cause the death of nine million people each year. As stated in the strategy for development cooperation and humanitarian assistance, addressing challenges of climate change have wider positive side effects on other priorities identified in the strategy such as contributions to SDG7 and mitigation of the root causes leading to armed conflicts, instability of states etc. The US federal withdrawal from the Paris Agreement, and announced stop of financing to the Green Climate Fund (GCF), highlights the need of other states to pay a fair share. The gearing of investments ine the development funds can play a significant role in fulfilling the global target of 100 bn. USD yearly in climate investments by Despite strong indications of a positive upward trend in climate investments, figures for 2014 indicate a shortfall of 32 bn. USD. In addition to the contribution to the global target of 100 bn. USD, investing in the funds meet the strategic objective of the strategy for development cooperation and humanitarian assistance. Further, and in line with the guiding principles of the Climate Envelope, the funding of the funds will aim at ensuring a balance between mitigation and adaptation efforts. Established in 2008, the Danish Climate Envelope is a mechanism for channeling dedicated climate funding to support mitigation and adaptation activities in developing countries and is included as part of the Danish development assistance. As stated in the guiding principle of the Climate Envelope, and in line with the focus of UNFCCC, the envelope is focusing on both mitigation and adaptation. Cumulatively, the aim of the envelope is to ensure an even split between adaptation and mitigation efforts. The Ministry for Energy, Utilities and Climate (MEUC) and the Ministry of Foreign Affairs (MFA) each propose and prepare activities for 1 The World Bank 2017: Toward a Clean World For All & Development and Climate change 1

2 half of the Climate Envelope, and the respective responsibilities for the approved interventions is guided by a detailed division of labour agreement capturing the full programme cycle. Since its establishment, the annual allocation of the Climate Envelope Frame has been subject to approval by the Government s coordination committee. While the political buy-in has underscored the relevance and strategic impact of the Climate Envelope, the setup has meant that the Envelope is less responsive to new initiatives. The Climate Envelope is part of the Danish climate adaption and mitigation efforts, which also encompass climate mainstreaming across the Danish development cooperation. The Climate envelope thus only amounts to approx pct. of the entire Danish climate relevant ODA-funding in The reporting methods implies that the amount pledged to climate relevant projects varies over the years, but does not necessarily indicate changes in the Danish prioritization of climate mitigating or adapting efforts. However, over the past four years, disbursement of climate relevant ODA has been relatively stable at approx. 1.3 bn. DKK (fluctuating between approx bn. DKK). Since the adjustment of the envelope in 2016, the envelope has increased to 350 mil. DKK in The Climate Envelope broadly supports six different areas in a larger climate value-chain, ranging from initial analytical and diagnostic work to assist in identifying how (and where) best to tackle climate change, over establishment of enabling environment and incentives for climate action, to actual project development and mobilization of finance for the climate related investments. While the support is allocated to a range of organisations and institutions bilateral and multilateral it is important to acknowledge their respective niches in the value chain, and thus the rationale behind the Danish support. The choice of partners and themes are also informed by the evaluation of the climate envelope 2015 and the lessons learned, and a number of partners have been/are being phased out, such as UN-REDD, IUCN-Mangroves for the future etc. A model of the value chain and a non-exhaustive list of past and current recipients is included in the figure below: 2

3 With reference to the guiding principles of the Climate Envelope, which identifies an overall theory of change for the envelope (see annex 1), the Climate envelope has the prime objective of reducing emission of greenhouse gas and increasing vulnerable groups climate resilience. In line with the value chain model above, funding have reflected a consistent wish to support both early stage readiness activities and actual implementation in the form of investment projects on the ground. Special focus is on leveraging private finance through public finance facilities, which is given even more attention due to the expected US withdrawal from the Green Climate Fund (GCF) and other climate finance commitments. Moreover, focus is still on utilising the Danish comparative competence, and on delivering transformative change. Finally, the need for a more long-term predictable programming, with fewer and larger interventions per year is still the ambition. This will make it easier to capture and communicate results across the envelope and improve the possibility to influence the strategic direction of the recipients. 2. Danish Climate Envelope - looking forward Based on the guiding principles of the Climate Envelope and a strong wish to use Climate Envelope funds strategically, the Danish MFA and the MEUC have agreed to focus Climate Envelope funds during 2018 on the below mentioned activities (approved by the government s coordination committee). The total funds amounts to 350 mil. DKK: 80 million DKK for building climate resilience in Danida partner countries of Mali and Ethiopia 40 million DKK for civil society through CISU 40 million DKK for The International Renewable Energy Agency (IRENA) 10 million DKK for the Intergovernmental Panel on Climate Change (IPCC) The 2018 climate envelope also includes a few more interventions: In a separate concept note, the MEUC will present the intervention regarding clean energy investment in growth economies through the Multilateral Development Banks and the OECD with the total sum of 130 mil. DKK. In addition, the MFA will present separate concept notes for support to SE4ALL and UNEP-DTU with the combined value of 50 mil. DKK. 1. Building climate resilience in Danida partner countries of Mali and Ethiopia (80 million DKK) As highlighted, one out of two overall purposes of the climate envelope is to contribute to improved resilience against climate change, with a special focus on the poorest and most vulnerable people. In the poorest countries, agriculture is often the most important economic sector as well as the most climate vulnerable. The poorest and most vulnerable groups located in rural areas are often the most dependent on agriculture. Identification and implementation of climate adaptation within agriculture, e.g. more climate resistent crops, climate sensitive cultivation methods, improved water resources management and green post-harvest valueadding are thus some of the relevant approaches to improve climate resilience in these communities. This corresponds well with the climate envelopes focus on transformation and 3

4 on private sector leverage. The climate envelope is activated within these thematic areas in countries which are engaged in country programming, and as such (and in line with the evaluation/lessons learned and guiding principles) used as a platform for integration of climate change across the country programmes. This year two African countries will receive climate envelope funding: a. Climate adaptation - Mali (35 million DKK) Mali is experiencing extreme climate vulnerability in the form of less predictable weather, including greater fluctuations in rainfall quantities, which cause both increased risk of drought and heavy temporary rainfall with erosion and damage of crops as consequences. These changes makes it more difficult to maintain output levels in the agricultural sector and contributes to increased instability and migration. The climate change financing will be integrated in the next phase of the Private Sector Development Programme ( ), which is currently under formulation. The climate change funding will finance part of component 1 on supporting access to finance and business development in Small and Medium Sized Enterprises (SMEs) in cooperation with producer organizations within agribusiness value chains. This will include: i) support micro-finance institutions targeting small producers and cooperatives, with a particular focus on developing credit lines for adaptation/green technologies; ii) support financially climate adaptation identified through the business plans of small and medium-sized enterprises and cooperatives e.g. climate-resistant agricultural production and processing, sustainable energy, etc.; iii) development of risk reduction mechanisms, such as insurance ; and iv) integration of climate adaptation into national policies and strategies. The climate intervention will be co-financed and implemented with IFAD and the government. The further development and approval of the climate envelope intervention in the country programme, as well as the management during implementation, will be the responsibility of the embassy. b. Climate resilient livelihoods Ethiopia, DKK 45 mil. While Ethiopia for more than a decade has achieved impressive growth rates, it is also experiencing the direct negative effects of climate change, particular severe droughts, heavy rains and floods. The new Country Programme for Ethiopia ( ) will have the overall objective to contribute to inclusive, sustainable growth and development in Ethiopia by supporting the vision of building a Climate Resilient Green Economy and reaching lower middle-income status by Climate resilience activities will be mainstreamed throughout the Programme, and the Climate Envelope indicators will be included in all engagements. The Climate Envelope funding is expected to be channelled to the Programme s Climate Resilient Livelihoods engagement that focuses on adaptation, with mitigation co-benefits, to sustainable livelihoods for communities within and around one of Ethiopia s most important ecosystems, Kfa biosphere, south-west of Ethiopia. 4

5 Currently, many communities are involved in unsustainable charcoal production resulting in deforestation in the area, which has led to negative climate impacts both in the area and downstream. The Climate Resilient Livelihoods engagement seeks to promote sustainable livelihoods, such as production of forest coffee, honey, fruits and timber, as an alternative to the current unsustainable production of e.g. charcoal. Value-chain activities and access to markets will be important elements in the engagement in order to gain a commercial incentive for the communities. The change to sustainable livelihoods in the ecosystem will further have positive impacts on agricultural and pastoral communities downstream. Here, the negative consequences of the destruction of the ecosystem have already been reported in relation to diminished soil fertility and water access, incl. groundwater and flooding. The funding will possibly be channelled through the finance facility in relation to the Resilient Green Economy Strategy, , CRGE). The further development and approval of the climate envelope intervention in the country programme, as well as the management during implementation, will be the responsibility of the embassy. 2. Support to civil society climate action through CISU Civil Society play a key role in the promotion of low-emission and resilient societies, as confirmed by the Paris Agreement. The climate envelope evaluation of 2015, as well as the subsequently developed climate envelope principles, likewise emphasized the strategic role of the civil society - amongst others in building an accountable and informed enabling framework, locally, nationally, and internationally, for climate action. As such, a support to civil society complements the Danish bilateral and multilateral climate cooperation with governments. The Danish civil society is already engaged in networks with civil society in developing countries. This includes support to civil society e.g. to enable them to represent poor and marginalized and climate vulnerable groups, to monitor progress and set-backs in terms of climate action, and to become watch dogs as well as a partners in climate decision making at national as well as at global level. This includes also cooperation with private sector. The cooperation and network between Danish- and developing countries civil society are as such promoting more ambitious climate action at various levels. In 2013, the MFA established a climate and environment fund for civil society support anchored administratively in CISU (Civilsamfund I Udvikling). The fund has supported 24 projects amounting to 89 mio DKK, and had its last call for proposals in the autumn of The projects will be finalized by the end of CISU solicited a review in 2017, which concluded that substantial results had been achieved, and recommended that funding should be continued. In 2017, a reform of the MFA civil society support incl. for fund holders, such as CISU was implemented. The climate envelope 40 mio DKK (to be spent over 4 years) to civil society support, will be channeled through CISU, and take advantage of the reform, by supplementing the existing CISU civil society fund, rather than continuing a thematic fund for climate. This will also reflect the lessons learned around the transaction costs of maintaining a separate funding window. The climate envelope support is expected to be included in the form of an addendum to the existing agreement between CISU and MFA (HMC). The addendum 5

6 will include a simple tracking and monitoring system, using CISU s existing and soon to be established monitoring system (and reflecting the climate envelope indicators), to be reported on by CISU as part of the standardardised yearly reporting to Danida. The tracking and monitoring is likely to capture input (funding spent on climate action in terms of SDG 13), as well as a more qualitative results assessment of the funding for SDG 13. A stock take of the approach will take place after 2 years, in order to verify whether (the integration in) the civil society fund is indeed supporting climate action. 3. The International Renewable Energy Agency (IRENA): Scenario and investment planning to promote renewable energy in emerging economies The support to IRENA aims at improving emerging economies capacity for power sector transformation by providing analyses, knowledge and modeling tools. Long term modeling and scenario-building is a powerful tool to show decision makers how to integrate renewable energy in the electricity mix in a cost effective manner. IRENA is a leading multilateral energy institution, which have grown and developed substantially since its establishment in 2009, amongst others based on a Danish initiative. IRENA has approx. 150 members, and enjoys strong support from growth economies due to their analytical and advisory capacity. The support to IRENA will be in the form of a close partnership with the Danish energy authorities/institutions, and constitute an earmarked contribution to IRENA to be implemented over 3 years. A joint Program Coordination Group will be responsible for approval of program assignments, working schedules, working modalities and progress reporting. The detailed focus of the programme has not been fully elaborated, but focus will be on the emerging economies which the Danish Energy Authority is already engaged in, and the following elements (possibly individual development engagements) are amongst others being considered: Regional studies to investigate how coordinated regional investments and power sector planning can help achieve economies-of-scale investments, which can benefit smaller countries, and accelerate decarbonization. This could possibly focus on ASEAN countries, East Africa, or the MENA region. Regional exchange platforms, including south-south cooperation between emerging economies. This will involve exchange of experiences and best practices regarding long terms energy system modeling, as well as experiences of cooperation with private investors and businesses. General toolbox development to be disseminated through training courses and capacity building. The proposed tools include technology catalogues; power sector modeling toolbox (for a variety of contexts, regions and countries); energy sector and scenario modeling; and demonstrate benefits on investor and business involvement. A finance/investment platform, which will be developed through a dialogue between IRENA and the Danish authorities in order to ensure maximum complementarity with other work by e.g. IEA, the MDBs, OECD and not least the upcoming Clean Energy Investment and Finance initiative under the Clean Energy Ministerial, CEM. As such the IRENA cooperation will be a vehicle for Denmark s commitment to the proposed CEM 6

7 campaign about long term scenarios and modeling scheduled for 2018 launch at CEM9 in May Scenario analyses of emerging technologies. An example could be the impact of an increasing number of autonomous and/or electrical vehicles on energy storage and what it means for fossil fuels. 4. Support to IPCC The year 2018 marks the 30th anniversary of the IPCC, the independent technical and scientific panel established in 1988 by the World Meteorological Organisation (WMO) and the UN Environmental Program (UNEP). IPCC provides scientific information on the state of the climate, and informs the climate convention process. IPCC s work is based upon more than 3000 researchers globally, including research from Denmark (DMI, DTU, KU and AU). The IPCC has presented its reports regularly since 1990, with the most recent published in The comprehensive data in these reports constitute a considerable foundation for political decision-making, including in relation to the implementation of the Paris Agreement. The IPCC s work programme furthermore emphasises the participation of developing countries in all aspects of the workings of the IPCC. The IPCC is currently working on the sixth Assessment Report to be finalised in 2022 in time for the first UNFCCC global stocktake (countries to review progress towards their goals). A special report on the aim of the 1.5 C increase (above pre-industrial levels) and the required low emission pathways will be published in October 2018, and is awaited with interest in the climate community. The IPCC also maintain a database on national GHG emissions, and produce guidelines for stock taking and reporting of GHG emissions under the UNFCCC. The IPCC mainly relies on voluntary contributions from member countries. However, contributions to the IPCC have declined since 2012 and with the foreseen withdrawal of the US financial support (which constitutes 38% over the past years), the work of the IPCC may be endangered. The Executive Council of the WMO urges its members to maintain, and where possible, increase their financial support for IPCC activities through contributions to the IPCC Trust Fund. Norway, Sweden and Netherlands have increased their contribution. Denmark has so far provided 1 mil. DKK annually in the period , but will with this contribution double the support to IPCC. The support will be given in the form of core support. DMI is monitoring the Danish support, which limits the transaction costs for MFA Assessment of the proposed interventions against the guiding principles Annex 1 is presenting the Climate Envelope Theory of Change and aimed results. It is in addition illustrating how the proposed interventions in 2018 individually fits into the framework, which causes the curved lines. The annex thus shows what type of activities and outputs the interventions are expected to produce, and what outcomes this will lead to and what overall objective it is the hope to deliver. The model shows that there is a balance, though not an even split but more like 60:40, between mitigation and adaptation related activities (likewise good balance and synergy between bilateral and multilateral, good attention to needs and alignment, and good balance in terms of 7

8 geography all of the guiding principles). To ensure a proper balance, the envelope in recent years has predominantly been funding adaptation activities. The model likewise shows that many of the proposed interventions captures several types of activities/outputs, and delivers more than one outcome. For instance, IPCC support will both contribute to a more robust international climate architecture as well as build more effective climate information system and thus support more effective policies and planning. Likewise, support in Mali and Ethiopia will both promote climate technologies and markets, as well as support communities and develop financial frameworks. Regarding the guiding principles: Danish national strengths in developing low-carbon transition of the energy sector are most prominently brought into play in the energy related interventions, incl. the support to the hub in the UN city in Copenhagen (presented in another note), and there is an explicit requests in some of the multilateral interventions e.g. IRENA to establish synergies with the bilateral assistance within energy (approved in earlier years). In terms of leveraging, this is brought prominently into play by the invest framework intervention (presented in another note) as well as in the IRENA support, and the Mali climate intervention. Transformational changes is aimed for in all the interventions, in the sense that they are conceived out of the thinking that minor incremental changes is not sufficient, and that fundamental systemic changes are required. Context analysis, risks and assumptions, and management considerations Annex 3 provides an overall glance from the climate envelope point of view regarding the key policy considerations, such as fragility, human rights, gender etc. The assessments are done at a general levels, with some hints as to how these issues are relevant and should be applied in the specific interventions. The actual reflection of these policy concerns in the interventions will be context specific, both in terms of countries and institutions. For the same reason, the risk matrix is not included, as it should be based upon a specific context analysis. However, the main risk associated with these interventions are likely to be related to continued commitment from the partners, incl. countries, to the interventions and the changes they will initiate. However, in all of the interventions of this concept note, the receiving ends (civil society, governments institutional partners) have expressed solid needs for cooperation and funding, and the particular case of IPCC is critical in due to funding shortfalls. Moreover, for most of the partners, MFA has prior experience with cooperation, and the suggested contributions is thus based on in-depth understanding of the partners. The likelihood of the commitment risk materializing is therefore deemed low, though the impact would be high if indeed the commitment would diminish. Still it is important to conduct context specific risk analysis as part of the formulation, and not underestimate the political-economy challenges related to interventions At the overall management level, MFA holds the overall responsibility for administration of the Climate Envelope, while MEUC will be leading the preparation, implementation, monitoring and closure process on activities falling under their initiative in line with the overall division of labour. The management set up of the individual interventions is highlighted in the description of these above. 8

9 3 Indicative pipeline for the Climate Envelope For the 2018 and 2019 Climate Envelope, the below mentioned priorities/activities have been identified as relevant for financing from the Climate Envelope. The decision on which of them to finance from the Climate Envelope will be made within the framework of the guiding principles and the objective of focusing efforts on few activities (and will be subject to approval by the government s coordination committee). Denmark will aim to provide its fair share to the Green Climate Fund as the key channel to support multilateral efforts on mitigation and adaptation activities. Substantial efforts will be used via the Danish seat in the GCF board on making the GCF function as efficiently as possible in support of activities that are transformational and catalyse private investments. An updated organisational strategy was approved in November, it is expected that replenishment process of GCF will be inituiated towards the end of 2018 and may take up to a year. Further accelerating the sustainable energy transition through support that enables multilateral energy organizations to provide country-specific support to accelerate the sustainable energy transition in emerging economies. Encouraged in large part by Denmark, the IEA - through its Clean Energy Transition Programme - is further deepening and broadening its support for emerging economies. Further development of Danish Energy Agency Energy Partnerships. There is a strong interest in accessing the Danish expertise related to the clean energy transition, and the bilateral DEA Energy Partnerships can be meaningfully expanded to a strategic new partner country such as India. In addition to the broadening of country coverage, it is expected that by 2019 and 2020, the existing DEA partnerships will have generated additional opportunities and demand for targeted expansion of existing programmes within current or related fields, such as investment mobilization. Support for the development of bankable project through the established project development facility at IFU to expand the pipeline of financially viable projects for private investors Further accelerating the sustainable energy transition through support for multilateral energy organizations (like IEA, CEM and IRENA) as well as the SE4All Energy Efficiency Hub in Copenhagen Bilateral support to climate adaptation through country programming in Danish partner countries. Building resilience and assisting poor people with adapting to the consequences of climate change is decisive to fight poverty, prevent migration and to pave the way for sustainable growth. 9

10 3. Monitoring Separate result frameworks will be developed for all of the above mentioned activities. To enable monitoring of the Climate Envelope at portfolio level, a monitoring framework has been developed. All interventions under CCE, approved in 2016 and later, should include one or more 2 of the following core indicators and report upon it annually (+ a number of supporting indicators): Impact: Tons of carbon dioxide equivalent reduced as a result of CCE mitigation interventions Impact: Total number of people benefitting of the CCE resilience interventions Outcome: Low-carbon and climate resilient enabling environment (policies, legislation, systems, structures, assets) developed as a result of the CCE interventions An annual effort will be undertaken to track these indicators and aggregate them at the level of the Climate Envelope. This will be used in general communication of the results of the climate envelope. Furthermore, and in line with AMG, attention will be given to communication of results in the individual interventions. 4. Annexes 1. ToC and result frame for the Climate Envelope 2. Proces Action Plan 3. Context and policy analysis 2 Interventions with co-benefits (mitigation/adaptation) should report upon these. 10

11 11

12 Annex 1: Theory of Change and result frame for the Climate Envelope

13

14 Annex 2: Climate Envelope 2018: Process Action Plan Activity Amount (million DKK) Preparation and quality assurance Approval Commitment (2017) Responsible CISU 40 MKL to draft simple document in cooperation with CISU, KFU indicated light QA (appraisal checklist) Climate resilience in country programmes: - Mali (35) - Ethiopia (45) 80 Embassies responsible for soliciting quality assurance. Council for development policy, May Presentation to Council for development policy as part of country programmes. Second quarter Mali Q3 Ethiopia Q4 MKL Embassies SE4ALL X 2: - Hub (40) - Platform (10) 50 MKL to draft documents, KFU appraisals done in combination with other appraisals, see separate concept note IPCC 10 MKL/EFKM to draft simple documentation, no KFU appraisal, MKL development specialist (appraisal checklist) Investment framework 130 EFKM to draft one or more documents, appraised by KFU (and development specialist), See separate concept note IRENA 40 EFKM to draft document, appraisal by KFU Council for development policy, June 3 rd quarter MKL 1 st quarter by Head of Unit 1st quarter MKL and EFKM Council for development policy, June Council for Development Policy, October 3 rd quarter EFKM 4th quarter EFKM

15 Annex 3: Context and policy analysis 1. Fragility, conflict, migration and resilience Briefly summarise the key conclusions and implications for the programme of the analysis of the below points: - There is a clear link between climate and vulnerability, fragility and instability. Especially climate adaptation and climate resilience should be seen in a broader context of vulnerability and fragility and vice versa (fragility and vulnerability seen in the context of climate change). This is in line with the Development Strategy that talks about climate change as one of the underlying causes for vulnerability and fragility and about the need to build resilience against climate change (p.18) - This is particularly relevant for the bilateral adaptation interventions, and will be addressed as part of the country programmes 2. Assessment of human rights situation (HRBA) and gender 3 Briefly summarise the key conclusions and implications for the programme of the analysis of the below points: - Human rights principles are important for a successful implementation of the climate envelope at various levels and contexts. Especially the civil society support is expected to contribute substantially to improved human rights. UN Guiding Principles on Business and Human Rights can play a role in the context of the activities aiming for private sector engagement and finance. The Human Rights Based Approach and PANT should be applied in a context specific manner in the interventions Human Right Standards (international, regional and national legislation) - Context specific depending on the intervention. 3 The purpose of the analysis is to facilitate and strengthen the application of the Human Rights Based Approach, and integrate gender in Danish development cooperation. The analysis should identify the main human rights issues in respect of social and economic rights, cultural rights, and civil and political rights. Gender is an integral part of all three categories.

16 Universal Periodic Review - Not applicable at this stage (after UPR), and at this overall level Identify key rights holders in the programme - Stakeholders affected by climate change Identify key duty bearers in the programme - Governments and institutions combatting (or supposed to combat) climate change Human Rights Principles (PANT) Participation - It is key to ensure that the implementation of activities at country level engage and involve the stakeholders affected by climate change (or representatives of the stakeholders). This can be done in various consultation processes, depending on the interventions. In bilateral interventions in Mali and Ethiopia it is part and parcel of the interventions, while multilateral interventions establishing enabling frameworks may use formal consultation processes at national level. Accountability - Globally, governments as well as other institutions has signed up to commitments, and can be held accountable at various levels Non-discrimination - The involvement of stakeholders should give due consideration to different groups e.g. marginalised groups, women, etc. - In line with the climate envelope guiding principles disaggregated monitoring data will be the aim where relevant (when the indicator concern people, not infrastructure or similar) Transparency - Information will be made available during the implementation in bilateral activities. In mulitilateral activities due attention will be given to public dissemination of data and analysis to the general public. Gender - Women are often amongst the most vulnerable to climate change, amongst others due to their lack of assets and access and control over resources, which implies less

17 opportunities for alternatives and less resilience against climate change effects. Women are also vulnerable due to their lack of information and lack of voice in decision making, regarding decisions related to climate change. - Generally, there is good attention to the climate and gender links among gender organisations and institutions, and likewise increasingly in climate change related fora. For instance UNFCCC recently adopted a climate change policy, GEF updated its gender policy in November, and GCF will approve its first gender policy in the coming board meeting. - The practical integration of gender concerns will depend on the intervention and the context. Youth - Not done at this stage 3. Inclusive sustainable growth, climate change and environment - Briefly summarise the key conclusions and implications for the programme of the analysis of the below points: - N/A as a climate envelope 5. Capacity of public sector, public financial management and corruption Briefly summarise the key conclusions and implications for the programme of the analysis of the below points: - N/A at overall climate envelope level, context specific depending on the intervention, only few interventions will finance through governments. 6. Matching with Danish strengths and interests, engaging Danish actors, seeking synergy

18 Briefly summarise the key conclusions and implications for the programme of the analysis of the below points: - The Climate envelope evaluation of 2015 specifically pointed at the possibility to take further advantage of the Danish comparative advantage e.g. within energy and water. This was followed up in the development of the guiding principles of the climate envelope, which places the Danish strengths as one of the principles for the selection and design of interventions. This is reflected this year in the choice of energy related interventions, incl. the support to the hub in the UN city in Copenhagen. Furthermore for the multilateral interventions synergies are activated with the bilateral assistance within energy (approved in earlier years) 7. Stakeholder analysis Briefly summarise the key conclusions and implications for the programme of the analysis of the below points: - N/A at overall climate envelope level, context specific depending on the intervention. In general, within the climate envelope, the partner selection often come before the design of the intervention.

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