with UNEP for the Federal Democratic Republic of Nepal 14 November 2016 National Adaptation Planning and Processes

Transcription

1 with UNEP for the Federal Democratic Republic of Nepal 14 November National Adaptation Planning and Processes

2 PAGE 1 OF 65 ver. 19 August, modified by UN Environment & UNDP Readiness and Preparatory Support Proposal How to complete this document? - A readiness guidebook (URL) is available to provide information on how to access funding under the GCF Readiness and Preparatory Support programme. It should be consulted to assist in the completion of this proposal template. - This document should be completed by National Designated Authorities (NDAs) or focal points with support from their delivery partners where relevant. - Please be concise. If you need to include any additional information, please attach it to the proposal. - Information on the indicative list of activities eligible for readiness and preparatory support and the process for the submission, review and approval of this proposal can be found on pages of the guidebook Where to get support? - If you are not sure how to complete this document, or require support, please send an to countries@gcfund.org. We will aim to get back to you within 48 hours. - You can also complete as much of this document as you can and then send it to countries@gcfund.org. We will get back to you within 5 working days to discuss your submission and the way forward. Note: Environmental and Social Safeguards and Gender Throughout this document, when answering questions and providing details, please make sure to pay special attention to environmental, social and gender issues, in particular to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult page 4 of the readiness guidebook for more information.

3 PAGE 2 OF 65 ver. 19 August, modified by UN Environment & UNDP SECTION 1: SUMMARY 1. Country submitting the proposal 2. Date of initial submission 3. Last date of resubmission (if applicable) 4. Which entity will implement the Readiness and Preparatory Support project? (Provide the contact information if entity is different from NDA/focal point) 5. Title of the Readiness and Preparatory Support Proposal Country name: Nepal Name of institution (representing National Designated Authority or Focal Point): Ministry of Finance Name of official: Mr. Baikuntha Aryal Position: Joint-Secretary and GCF NDA Telephone: Full Office address: Ministry of Finance Singhadurbar Kathmandu, Nepal 09/09/ 11/04/ baryal@mof.gov.np National Designated Authority Delivery partner Accredited entity Name of institution: United Nations Environment Programme (UN Environment) Name of official: Mozaharul Alam Telephone: Position: Regional Climate Change Coordinator mozaharul.alam@unep.org Full Office address: UN Environment Asia and the Pacific Office, 2 nd Floor, UN Building, Rajdamnern Nok Avenue, Bangkok, 10200, Thailand Building Capacity to Advance National Adaptation Plan Process in Nepal The conference of the Parties to the Framework Convention on Climate Change (UNFCCC) has agreed two primary objectives of the National Adaptation Plan (NAP) and/or process which are: (a) To reduce vulnerability to the impacts of climate change, by building adaptive capacity and resilience; (b) To facilitate the integration of climate change adaptation, in a coherent manner, into relevant new and existing policies, programmes and activities, in particular development planning processes and strategies, within all relevant sectors and at different levels, as appropriate. 6. Brief summary of the request (500 words) Please describe the current status of NAP in country and what the readiness support is aiming to achieve Whereas the reduction of vulnerability will be achieved through implementation of adaptation programmes and projects emanating from the NAP as well as supported by other ongoing and likely upcoming initiatives, the proposed readiness and preparatory support request will present pathways for robust climate risk assessment, appraisal of adaptation interventions, financing mechanism, and assessment and monitoring reduction of vulnerability through NAP process and implementation strategies. By its very nature, the NAP process facilitates integration of climate change adaptation into existing development strategies, policies and programmes. The proposed readiness and preparatory support request aims at achieving reduction of vulnerability and integration of climate change adaptation into development planning process through: a. Development and enhancement of 'country capacity' to promote climate change adaptation (CCA) at systemic, institutional and individual levels; and help poor and climate vulnerable communities in adapting to and building resilience to climate change impacts; b. Contribution to reduce climate vulnerability by integrating CCA into existing and new

4 PAGE 3 OF 65 ver. 19 August, modified by UN Environment & UNDP policies, strategies and programmes; c. Establishment and/strengthening of a system to generate and share knowledge, experience, lessons learned, gaps and needs at international (NAP Expo, side-events during COPs sessions and SBs meetings), national and sub-national levels to advance CCA for the benefit of the poor people and restoration of ecosystem restoration; and d. Development of a strategy to implement, monitor and communicate adaptation benefits at different levels. This readiness and preparatory support project aims to enhance institutional coordination mechanism and put in place the capacity for informed decision-making which will lead to changing the behaviour and mind-set of the Nepalese society and decision-makers in the government such that climate change adaptation becomes a part of Nepal s development strategy or plan by: a. Strengthening institutional capacity of Government of Nepal (GoN) at local, regional and national levels to advance the NAP process; b. Strengthening system for developing and sharing climate risk and vulnerability information at different levels; c. Establishing funding strategy for implementation of National Adaptation Plan Processes (NAP processes); d. Strengthening capacity to monitor and review outcomes of the NAP process. 7. Total requested amount and currency 2,935,350 USD 8. Anticipated duration 36 months 9. Is the country receiving other Readiness and Preparatory Support related to the GCF? Yes No If yes, please attach the relevant scope of work, and briefly (100 words) describe the scope of support provided by other institutions

5 , modified by UN Environment & UNDP PAGE 4 OF 65 ver. 19 August SECTION 2: COUNTRY READINESS LOGICAL FRAMEWORK Please complete the table below, which enables a country to assess its readiness for the GCF and set targets for strengthening its readiness, including proposed outputs and activities to improve the country s readiness. For further guidance on completing the table, please refer to the guidebook Accessing the GCF Readiness and Preparatory Support Programme. COMPONENT, SUB-COMPONENTS and OUTPUTS 1 BASELINE TARGET Activities/Inputs (Including key outputs or deliverables where applicable) Component 1: Institutional Capacity for the NAP Process in Nepal Sub-component/Outcome -1: National and provincial government institutions are capable of integrating Climate Change Adaptation (CCA) into development policy and plans 1/4 3/4 Output 1.1: National policy documents and sectoral development plans identified to facilitate integration of adaptation options and to promote an integrated approach to adaptation planning including periodic reviews Strengthen the Multi-stakeholder Climate Change Initiative Coordination Committee (MCCICC) mandate defining the tasks and responsibilities of the relevant stakeholders in overseeing the NAP process by building on existing strategies and frameworks such as the Climate Change Policy, Forestry Sector Policies and Strategies, Low Carbon Economic Development Strategy (draft), National Adaptation Programme of Action, National Framework on Local Adaptation Plans for Action, Environment Friendly Local Governance Framework, etc Analyse and develop reports for 9 cross-cutting and thematic areas by reviewing policies, strategies, plans and programmes as also identified through NAPAs on: i) the vulnerability of each thematic and cross-cutting area in the face of climate change and opportunities for adaptation based on updated climate information; and ii) entry points for integrating adaptation to climate change into relevant policies, strategies and plans and programmes Propose revisions to selected cross-cutting and thematic area policies, strategies and plans to integrate adaptation to climate change Develop and institutionalize a strategy for the periodic review of cross-cutting and thematic area policies, strategies and plans including the integration in an iterative manner of: i) updated climate information; ii) lessons learned from the integration of climate change into these strategies and plans; iii) lessons learned from the implementation of these policies, strategies and plans; and iv) knowledge generated through the study and research programmes implemented under Component 1 The terms Outcome and Sub-component are used interchangeably in this proposal.

6 , modified by UN Environment & UNDP PAGE 5 OF 65 ver. 19 August Output 1.2: Workshop/training procedures or manuals developed and awareness raising events for public and private sectors, CSOs, and local communities on the NAP process conducted. Component 2: Climate Information Systems for Prioritising Adaptation Needs Sub-component/Outcome -2: 1/4 3/4 Meteorological Offices and Sectoral Ministries are able to use up to date climate information for risk assessment and appraisal of adaption interventions. Output 2.1: Sustainable climate information system (monitoring, modelling, forecasting and dissemination) to inform climate change adaptation, including a long-term plan for operation and maintenance, established Provide orientation and training for policy- and decision-makers and implementers from relevant government institutions (e.g. MoAD, MoFSC, MoWCSS, MoEn, MoUD, MoHA, MoFALD, MoCTCA, MoH, NPC etc.) on: i) current vulnerability of each sector; ii) recommended revisions to current policies and institutions to integrate adaptation to climate change; and iii) the standardised approach to implementing the NAP process Raise awareness of the private sector on the national priorities and climate scenarios, and on investment opportunities to increase the resilience of businesses to climate change Develop and implement at least an awareness raising campaign in each province for local authorities, CSOs and local communities on the national priorities for adaptation to climate change, climate scenarios, and opportunities for integrating adaptation into local development planning process Develop a step-by-step procedure or a training manual, as appropriate, for integrating adaptation priorities into local development planning Disseminate the procedure or manual to local stakeholders including province and district officers, and CSOs Gap analysis and needs assessment for a fully operational and sustainable climate information system in Nepal Develop GCF concept/s and associated documents for accessing project preparation facility toward developing full funding proposal for the installation of a fully operational and sustainable climate information system in Nepal based on the gap analysis and needs assessment (this is part of the development of GCF concepts under Activity 3.2.4) Develop a model for operation and maintenance of the climate information system in the long term Train staff from meteorological offices on using climate monitoring equipment and calibration, use of multiple sources of climate data for developing of climate change scenarios, impact scenarios and

7 , modified by UN Environment & UNDP PAGE 6 OF 65 ver. 19 August Output 2.2: System for cost-benefit analysis and appraisal of priority adaptation options established Component 3: Funding Strategy for NAP Process including its Implementation Sub-component/Outcome -3: Government of Nepal endorses resource mobilization strategy for medium and long-term CCA investment including private sector engagement. 1/6 4/6 Output 3.1: An assessment of the costs of meeting integrated adaptation needs in Nepal Output 3.2: Strategy for GoN to effectively mobilise utilise funding resources for adaptation and revise existing funding mechanisms. modelling Update climate scenarios with new data and information Develop a system to appraise individual adaptation options, including economic, ecosystem, and social costs and benefits for unintended impacts of adaptation measures in Nepal Define national criteria for prioritizing implementation based on development needs, climate vulnerability, risks, existing plans and valuation of ecosystem goods and services generated through study or research programme under Component Review reports produced on costing adaptation in Nepal including inter alia the Climate & Development Knowledge Network (CDKN 2013), Economic Impact Assessment of Climate Change in Key Sectors, and Asian Development Bank (ADB 2014) South Asia report and identify information gaps for a reliable estimation of costs for implementing climate change adaptation in the medium and long term Undertake a detailed economic study to fill the information gaps and estimate the costs of implementing the adaptation interventions included in the cross-cutting and thematic area policies, strategies and plans updated under Component Identify potential new public, private, bilateral and multilateral sources of climate finance to address the adaptation needs assessed under Component Develop an adaptation finance strategy to: i) access new identified sources of adaptation finance; ii) review and strengthen the structure of the existing funding institutions; and iii) support effective channelling of funds across sectors according to adaptation priorities identified in Component Develop workshop training toolkits and provide training to strengthen the capacity of relevant government stakeholders to initiate the implementation of the adaptation finance strategy Develop 2-3 GCF concepts and associated documents for accessing project preparation facility toward developing full funding proposal for the installation of a fully operational and sustainable climate information system in Nepal based on the gap analysis and needs assessment undertaken in

8 , modified by UN Environment & UNDP PAGE 7 OF 65 ver. 19 August Output 3.3: Study or research programmes to inform future investments in adaptation across sectors Component 4: Monitoring, Reviewing and Reporting of the NAP Process in Nepal Sub-component/Outcome -4: National and Sectoral Planning Unit of the key Ministries are capable of reviewing, monitoring and communicating results of the NAP process. 0/6 3/6 Output 4.1: A monitoring and reviewing system established for the NAP process. Component 2, as well as for addressing other identified adaptation needs Conduct a study and research programme in collaboration with relevant organizations such as NCCKMC, NAST, TUIoST, ICT Association of Nepal, DoIT of the Ministry of Science and Technology and/or other government institutions to measure the effectiveness of past, present and future adaptation interventions to inform long-term adaptation planning Identify previous and ongoing adaptation projects including EbA and ecosystem restoration in Nepal, building on the work of NAPA-catalysed projects, to be included in a long-term research programme Map responsibilities of key institutions in implementing, maintaining, monitoring relevant projects to inform adaptation planning on the medium- and long-term, including strengthening of existing research team/steering committee Develop business plans and financial models, working closely with the private-sector, to demonstrate the financial value of ecosystem goods and services generated by EbA to local communities and different sectors Design and implement a system for the dissemination of knowledge generated through the study and research programme to a wide range of public institutions and sectors, and iteratively integrated into policies and strategies through the periodic review process established in Component 1. This will include the dissemination of initial results during the project lifespan Develop a monitoring and reviewing system for the NAP process in Nepal including: i) milestones; ii) performance indicators at national and local levels; iii) targets on the short-, medium- and long-term; iv) outputs; v) monitoring and reviewing tools and templates; vi) assessment planning; and vii) and follow-up actions Institutionalize the monitoring and reviewing system for the NAP process by building on the current national M&E system of Nepal. Output 4.2: Technical training of national Develop guidelines and tools for technical staff of relevant government institutions including MoPE,

9 , modified by UN Environment & UNDP PAGE 8 OF 65 ver. 19 August and local government representatives and stakeholders to implement the monitoring and reviewing system for the NAP Output 4.3: NAP progress reports and communication material on NAP formulation, implementation, funding and monitoring to learn from the NAP process in Nepal TOTAL 3/20 13/20 MoFSC, NPC, and other thematic lead ministries and departments to facilitate data collection, analysis and dissemination of the results to monitor and review the NAP process over the long term Train technical staff of relevant government institutions including MoPE, MoFSC, NPC, and other thematic lead ministries and departments on the use of these guidelines and tools to monitor and review the NAP process following the system developed in Component Raise awareness of national and local government stakeholders including decision-makers, and province-, district- and sector-level officers on the monitoring and reviewing system developed in Component 4, and provide training to meet the performance targets Document and analyse the successes, failures and lessons learned from the formulation, implementation, funding and monitoring of the NAP process and previous relevant initiatives aligned with the NAP process in Nepal Disseminate information on the successes, failures and lessons learned related to the NAP process in Nepal on national portals, NAP portals and other relevant networks including NAP GSPs and UNFCCC platforms Implement a system for the documentation and analysis of the NAP process to be conducted on a regular basis and beyond the project lifespan, and the results to be: i) disseminated to relevant national stakeholders; ii) integrated into the monitoring and reviewing system for the NAP process; and iii) disseminated on relevant portals Produce and disseminate video clips on the implementation of the NAP process in Nepal Present the progress of the NAP process in Nepal and during climate change related international meetings.

10 PAGE 9 OF 65 ver. 19 August SECTION 3: ADDITIONAL INFORMATION Please explain how this grant will help deliver on the country s NAP as identified above and build on institutions, processes or existing work already underway in the country. Please provide a description of a. Context b. Baseline situation with regards to each output c. Objectives, outcomes and impact d. Stakeholders consultation a. Context Nepal has made good progress on dealing with climate change adaptation by developing and enacting climate change policy including for adaptation, development and implementation of local level frameworks for integrating climate change adaptation into development processes, tracking climate change budget, and experiences of implementing climate change projects. However, National Climate Change Support Programme (NCCSP) case studies publications, Climate Public Expenditure and Institutional Review, and consultation with key actors including the climate change council revealed fragmented actions including setting up project specific steering committees, advisory groups, task forces etc. depending on types of project that relinquish their functions as the projects come to an end. Key reasons behind fragmentation are also lack of institutional capacity to coordinate climate change interventions as well as an absence of systematic approach of collating results delivered by individual projects. Absence of these key aspects hamper effective presentation of the overall picture as it relates to current status of climate change adaptation, reduction of vulnerability and increase in resilience of vulnerable communities and ecosystems in order to influence policy and decision makers. The proposed GCF readiness and preparatory project aims to sustainably strengthen country s current capacity in identifying, prioritising, planning and implementing medium- and long-term adaptation needs taking into account the UNFCCC decisions 1/CP.16 and 5/CP.17 and all elements of the NAP Technical Guidelines. The project is consequently aligned with a wide range of Nepal s policies, strategies and programmes to avoid duplication and foster sustainability of the progress already made. The proposed project will utilize experiences and learning from, and will be fully aligned with, on-going efforts including the following: Nepal s National Adaptation Programme of Action (NAPA): Realising the severe effects of climate change, urgency for helping poor and climate vulnerable communities to adapt to such effects, and being a Party to the UN Framework Convention on Climate Change (UNFCCC), the Government of Nepal prepared the National Adaptation Programme of Action (NAPA) in September 2010 using the NAPA preparation guidelines decided in Marrakesh in 2001, with support from Global Environment Facility (GEF)/Least Developed Countries Fund (LDCF). The NAPA was prepared by mobilising thematic working groups. The NAPA contains following 9 combined portfolios of projects to address most immediate and urgent adaptation needs of the climate affected and vulnerable communities. a. Promoting Community based Adaptation through Integrated Management of Agriculture, Water, Forest and Biodiversity Sectors; b. Building and Enhancing Adaptive Capacity of Vulnerable Communities through Improved System and Access to Service Related to Agricultural Development; c. Community Based Disaster Management for Facilitating Climate Adaptation; d. Glacial Lake Outburst Flood (GLOF) Monitoring and Disaster Risk Reduction; e. Forest and Ecosystem Management for Supporting Climate Led Adaptation Innovations; f. Adapting to Climate Challenges in Public Health (management of ecosystems so that they do not breed vectors or pathogens); g. Ecosystem Management for Climate Adaptation; h. Empowering Vulnerable Communities through Sustainable Management of Water Resource and Clean Energy Supply (including groundwater); i. Promoting Climate Smart Urban Settlement (including groundwater).

11 PAGE 10 OF 65 ver. 19 August Some of the NAPA prioritized adaptation programmes/projects are currently under implementation with LDCF, multilateral and bilateral support. The Government is implementing, inter alia, Nepal Climate Change Support Programme (NCCSP), popularly known as LAPA (Local Adaptation Plan for Action) project, in 14 most climate vulnerable districts of Nepal, Strategic Programme for Climate Resilience (SPCR) to strengthen institutions and build climate resilient infrastructure, GLOF and flood, and ecosystembased adaptation projects. Nepal's Climate Change Policy (2011) has provisioned for channelling at least 80 percent of the total climate change fund to field level activities to also address adaptation needs of poor and climate vulnerable communities and ecosystems and build adaptive capacity. A part of the NAPA framework, LAPA is a bottom-up approach to adaptation planning. While NAPA focused on national level programmes, Nepal was the first LDC to introduce LAPA which moved the NAPA process beyond national and regional to local levels. The National Framework on LAPA (2011) ensures direct participation of climate vulnerable communities in identifying, prioritising, planning, implementing and monitoring of adaptation actions. The LAPA also provides ample opportunities to integrate adaptation options into local to national planning processes. In 2013, the Government of Nepal has introduced a dedicated climate change budget code to channel funding for climate change activities from the centre to the local levels. Initial results of these initiatives, in particular the LAPA project, urge for scaling-up and expansion of adaptation coverage with people's participation and through LAPA framework to protect people, property and their livelihoods, including natural resources from climate change impacts. Nepal's Intended Nationally Determined Contribution (INDC): Nepal submitted its INDC to the UNFCCC Secretariat in February. Nepal has prioritised CCA and has categorically mentioned that: (i) Nepal has initiated NAP formulation process to address future adaptation needs; and (ii) Nepal places CCA at the centre of its development plans and policies. Nepal's INDC also urges for grant support to formulate and implement the NAP process, including ongoing NAPA and LAPA implementation. This signifies Nepal's urgency and priority on NAP process. Taking into consideration CCA only viable options to protect Nepali people from climate variability and change,, the Ministry of Population and Environment (MoPE), which is also the UNFCCC focal point, officially launched the National Adaptation Plan (NAP) formulation process in September 2015 within overall Cancun Adaptation Framework. Ministry has also adopted an expedited process to prepare and implement the NAP. In May, MoPE has engaged a NAP technical team to advance the NAP formulation process. Nepal has adopted the following approaches in advancing the NAP: a. Establishing working groups to coordinate multi-stakeholder thematic areas; b. Utilising existing coordination mechanisms (as established during NAPA preparation e.g. Multi-stakeholder Climate Change Initiative Coordination Committee (MCCICC) and Climate Change Council constituted before Copenhagen Climate Change Conference in 2009); c. Building capacity and enhancing understanding on CCA; d. Building ownership and avoiding duplications on efforts; e. Promoting multi-stakeholder participation; f. Ensuring gender-sensitivity and inclusiveness (leaving no one behind in the NAP process); g. Generating, utilising and sharing knowledge and good practices; h. Adopting 'development first' with integration of adaptation actions; i. Aligning with national policies and linking with recent initiatives (DRR and SDGs); and j. Synergising ecosystem-based and community-based adaptations. Following the launch of the NAP process in May, the Government of Nepal decided to prepare the NAP through Thematic Working Groups (TWG), which proved very helpful during the NAPA process but discontinue its function as Technical Working Groups were tied to project funding and never been institutionalized. Under the current NAP work, the Government of Nepal has established 7 TWGs and 2 Cross-cutting Working Groups. Some of the Working Groups (WGs) are built upon the existing ones established for the NAPA process. During the NAPA implementation, 5 TWGs were established. Gender and livelihood issues were addressed without forming working groups, which have now been formalised as the 2 separate cross-cutting working groups. The launch of the NAP process effectively builds on the efforts that were already under way during the NAPA preparation and implementation and reinforces them with 2 additional TWGs (for gender and livelihood issues). During consultation with Ministry of Population and Environment, it became clear that current efforts will not able to institutionalize these working groups. Institutional coordination mechanism, once effectively mainstreamed, will able to steer Nepal away from project-based TWGs and become as a part of adaptation planning component of national development. A functioning funding mechanism

12 PAGE 11 OF 65 ver. 19 August strategy should cement this endeavour. Each thematic and cross-cutting work group will follow the approach stated above to advance the NAP formulation process. The proposed seven TWGs are on: (i) agriculture and food security (nutrition); (ii) climate-induced disasters; (iii) forests and biodiversity; (iv) health (and water and sanitation); (v) tourism, natural and cultural heritage; (vi) urban settlement and infrastructure; and (vii) water resources and energy. Two cross-cutting working groups are on: (i) gender and social inclusion; and (ii) livelihood and governance. During the NAPA preparation, all TWGs except tourism, natural and cultural heritage were established. Each TWG is composed of representatives from relevant government institutions, associations of the local governments, international and national NGOs, federations and networks, academia, research organisations, private sector, professional societies, indigenous communities, women, media and youth. It is planned to provide updates, where necessary and appropriate, to constitutional bodies such as National Women Commission, and parliamentary committees such as the Environment Conservation Committee. This inclusive approach will contribute in developing country capacity, enhancing ownership and ensuring inclusiveness and transparency. The role of each TWG will be to conduct activities covering all 4 elements of the NAP Technical Guidelines. Each TWGwill be led by the relevant ministry in charge of the relevant sector and will support the working group in preparation of stocktaking report, capacity gap assessment, stakeholder analysis etc. These reports will be discussed, agreed upon and owned by the concerned TWG. For example, Thematic Lead of the Agriculture and Food Security TWG will prepare the stocktaking report. The TWG coordinator will organise TWG meeting and Thematic Lead will present the stocktaking report. Once the TWG members agree on the stocktaking report, the following step such as capacity gap assessment will start. Each TWG will be coordinated by the concerned Ministry based on the Business Allocation Rules (2015). During implementation of NAP prioritized adaptation options, Nepal considers to follow the LAPA process which means local people/target communities will be engaged in identifying and prioritizing adaptation options, designing, planning and implementing those actions. Composition and roles of the TWGs The Ministry of Population and Environment launched the NAP process in May and requested the 9 line ministries to form and coordinate the 7 Thematic Working Groups (TWGs) and 2 cross-cutting working groups (CWGs) as outlined above. The TWGs and CWGs are led by relevant Ministries as described above and are composed of representatives of government organisations, local governments, NGOs, CSOs, academia, indigenous communities, media, private sector etc. as the lead Ministry considers important. The number of TWG/CWG members varies from one to the other. For example, the Ministry of Forests and Soil Conservation has formed 32 members Forests and Biodiversity TWG. This was intended to ensure inclusion of several federations and NGOs working in forests and biodiversity. In another case, the Ministry of Culture, Tourism and Civil Aviation has formed an 18-member Tourism, Natural and Cultural Heritage TWG. As this TWG has more private sector representatives, the Ministry is in the process of including additional members. The Ministry of Energy has formed a 17-member Water and Energy TWG. The Ministry of Urban Development has formed a 12- member Urban Settlement and Infrastructure TWG. This indicates that there will be variation in the membership of various TWGs or CWGs depending on the nature of the working groups and involved organisations in that theme or sector. As NAP is a country-driven process, TWGs are sector or theme-driven. The Ministry of Population and Environment (MoPE), leading the NAP, has not prescribed an ideal formation of TWG or CWG. It is therefore, the prerogative of the concerned ministry on how they intend to make the TWG/CWG more comprehensive, transparent and inclusive. The concerned ministries have decided that the coordinator of each TWG/CWG may invite additional institutions as and when necessary, to make the NAP process more transparent and inclusive. Nepal will formulate the NAP through extensive, consultative, transparent, and inclusive approach as a part of the country-driven-ness of the process. Nepal s approach is to integrate adaptation into existing and/or new policies, strategies and programmes, and promote adaptation planning right from the local to national levels. For this, Nepal considers the working group approach imperative for building capacity and ensuring inclusiveness, as informed by the NAPA preparation experiences. TWGs andcwgs will be involved in each step of the NAP process. Nepal's NAP process also ensures capacity building and enhancement through 'learning-by-doing approach'. The NAP process is an opportunity to inform all stakeholders such as parliamentarians and constitutional bodies such as National Women Commission about adaptation planning and NAP. In Nepal's case, TWG members will be engaged in discussion and agreement on the following. Element A: Laying the ground work

13 PAGE 12 OF 65 ver. 19 August Stocktaking report Stakeholder's mapping and actors profile Capacity gaps, needs and barrier analysis report Development priorities and climate sensitivity report NAP road map (reviewed and refined) with detail Work Plan, if required Element B: Preparatory work Past and future climate change scenario report (sectoral and overall national) Vulnerability and Risk assessment report (national and theme-based) Compilation of climate change adaptation options Prioritisation of adaptation options for medium and long-term Climate-resilient development visioning report NAP DOCUMENT Report on integration of adaptation into development Element C: Implementation strategies NAP implementation strategic framework Element D: Reporting, monitoring and review Framework for monitoring, evaluation and review of NAP with indicators Each TWG/CWG will be engaged in all the steps of producing these reports, in addition to the substantial work related to the project components, such as in assessing capacity and identifying capacity gaps and needs, providing inputs for vulnerability and risk assessments, identifying and prioritising adaptation options, and integrating adaptation options into existing and new policies, programmes and budget, communicating NAP related information in that theme, formulating NAP implementation strategy, and developing M/E framework, and reporting etc. The TWG/CWG will convene frequently. At the beginning, workshops may also be organised to inform the TWG/CWG members about the importance of the NAP process. For example, a demand-driven workshop was organised for TWG on Tourism, Natural and Cultural Heritage to inform its members of importance of adaptation for Nepal, adaptation planning, and NAP formulation process. Other TWGs/CWGs may also need such workshops and in other areas. Each TWG/CWG coordinator will organise their meetings and coordinate activities related to that TWG/CWG and agree on all reports that will be drafted by the concerned Thematic Leads. The frequency of TWG meetings will be decided by the Group s Coordinator. The Ministry of Population and Environment encourages each TWG/CWG coordinator to organise meetings, agree and finalise documents and ensure integration of adaptation into existing and/or new policies and programmes. As a country-driven and medium and long-term process, and as part of the leave no one behind approach, Nepal has planned to involve a wide group of stakeholders for major activities of the NAP process. For example, vulnerability assessments will be further discussed with stakeholders, including women s groups, at national and sub-national levels. Stakeholders will also be consulted widely in identifying and prioritising adaptation options. Once draft NAP document is ready, it will be consulted with multistakeholders at national and sub-national levels. Taking into consideration the UNFCCC decision 5/CP.17 on initial guidelines, and all 4 elements of the NAP Technical Guidelines elaborated by the LDC Expert Group (LEG), Nepal has detailed out activities to advance the NAP process. The process and outcome documents will be prepared and made public during the NAP process. The NAP will also include NAP implementation strategic framework, and framework for monitoring, evaluation and review of NAP with indicators to accommodate Elements C and D of the initial guidelines. Nepal believes that its NAP will guide future course of actions on climate change adaptation to address medium- and long-term adaptation needs. Nepal's NAP formulation process has received initial support from Action on Climate Today (ACT), a UK-Aid funded initiative. It has planned to best utilise the lessons and experiences from NAPA and LAPA preparation and implementation, including drafting

14 PAGE 13 OF 65 ver. 19 August of low carbon economic development strategy in Nepal will use the experiences and lessons learned during the implementation of, at least, the following NAPA priority and climate resilience programmes and projects funded through various multilateral, bilateral and private sector organizations: a. Nepal Climate Change Support Programme b. Community-based flood risk and GLOF risk reduction programme c. Reducing vulnerability and increasing adaptive capacity in agriculture sector d. Ecosystem-based adaptation Programme (EbA) e. Strategic/Pilot Programme on Climate Resilience f. Building climate resilient watersheds in mountainous ecoregions g. Building resilience to climate related hazards h. Mainstreaming climate change risk management in development i. Building climate resilient communities (private sector) j. Enhancing capacity, knowledge and technology support to build climate resilience of vulnerable developing countries k. Hariyo Ban Project with adaptation component l. Adaptation for Small Holders in Hilly Areas (ASHA) Project m. Building adaptation to climate change in health through climate-resilient water and sanitation (WASH) In addition, two projects will be implemented soon. They are: a. Catalysing ecosystem restoration in degraded forests of Nepal (LDCF) b. Adapting to climate induced threats (food) in Karnali region The above list of climate change projects provides good evidence and experiences of good practices and learning or/and failure. With initial support received from Action on Climate Today (ACT), UK-Aid Nepal has started interacting with the project officials to observe and learn from good practices including collecting data and information on climate change adaptation and resilience. Adaptation is Nepal's priority and a 'survival strategy for poor and vulnerable communities'. Nepal underscores funding as the 'key limiting factor' for NAP process. Although Parties to the UNFCCC made the decision and urged the Global Environment Facility (GEF) to support LDCs in formulating the NAP through the LDCF, it has not materialized due to shortage of funding in this voluntary fund under the GEF. In addition, the COP 21 at Paris further requests the Green Climate Fund (GCF) to expedite support for the least developed countries and other developing country Parties for the formulation and implementation of NAPs, consistent with decisions 1/CP.16 and 5/CP.17, and for the subsequent implementation of policies, projects and programmes identified by them (decision 1/CP.21, paragraph 47). In response to these decisions, GCF Board at its 13 th meeting from 28 to 30 June at Songdo, Republic of Korea decided to expedite its support for the NAPs and implementation of projects identified in NAPs (Decision B.13/09). The Board 'decides that, given the urgent need to support and expedite the formulation and implementation of national adaptation plans and other adaptation planning processes, the Executive Director can approve up to USD 3 million per country through the GCF Readiness and Preparatory Support Programme modalities, in order to support the formulation of national adaptation plans and/or other national adaptation planning processes based on his/her assessment of country circumstances and needs, and taking into consideration the United Nations Framework Convention on Climate Change national adaptation plan technical guidelines and the importance of coordination and complementarity with other national adaptation plan related initiatives and support. The National Designated Authority (NDA)/focal point can request up to US $ 3 million under the Readiness Programme for advancement of the NAP process. The Ministry of Finance of Nepal (NDA to the GCF) has designated the United Nations Environment Programme (UN Environment) on 31 January to support Nepal as delivery partner for the Readiness Support Programme with focus on NAP process 2. Hence, UN Environment will function as the GCF Delivery Partner for this project. 2 Request letter from the NDA attached as Annex I-1

15 PAGE 14 OF 65 ver. 19 August Nepal prepared a needs assessment and concept proposal on 'capacity building to advance NAP process in Nepal' for GCF support in March and submitted to the GCF through UN Environment. This proposal has been formatted with the original concept and this proposal has been prepared to access funding from GCF to advance the NAP process in line with the recent decision of the GCF Board (decision B.13/09). b. Baseline situation Nepal has one of the highest population densities of all LDCs. Unemployment and poverty are ubiquitous across the country, with more than 70% of the population living on less than US $2 per day. Nepalese, therefore, rely heavily on natural resources for their livelihoods. As a result, ecosystem degradation is the most consistent threat to the population and to the Nepalese economy. Unsustainable use of wood, soil and water resources, and the consequent degradation of natural ecosystems in Nepal is jeopardizing the livelihoods of rural communities and ultimately the Nepalese economy as a whole. The Government of Nepal (GoN) therefore, in recent years has implemented many measures, with donor funding to ensure climate change adaptation is at the forefront in development planning, including Nepal Climate Change Support Programme (NCCSP), also known as LAPA (Local Adaptation Plan for Action); strategic programme for climate resilience (SPCR); and the National Adaptation Programme of Action (NAPA). However, these have come as immediate and/or short-term responses and largely project-based adaptation actions. The National Adaptation Plan presents a unique opportunity for Nepal to systematically integrate climate change adaptation into existing policies, strategies and plans and steer Nepal from project-based adaptation to an integrated programmatic approach to build resilience in the long run. It will also shift focus from immediate and short-term intervention and investment to medium and long term investment to support transformative changes. It will also help country to put in place a system to monitor and evaluate results of adaptation actions as well as status of integration of climate change into development planning. A small, mountainous and land-locked least developed country, Nepal is most vulnerable to climate change. People living both in the highlands and lowlands are greatly affected by climate variability and climate-induced disasters. Weather variability associated with rising temperature and changing pattern of precipitation and drought is expected to have adverse impacts on livelihoods of nearly 30 million people. Nepal has experienced an average maximum annual temperature increase of C. Greater warming has been observed at higher elevations in the northern part of the country. All-Nepal maximum temperature has increased by 1.8 C between 1975 and 2005, with high-altitude area showing an annual increase of 0.12 C during the dry season and lower altitude areas experiencing a rise of 0.06 C. Days and nights are becoming warmer. Cool days and cool nights are becoming less frequent. Under various climate change scenarios, mean annual temperatures are projected to increase between C by the 2060s and C by the 2090s (INDC, ).. Impact of climate change is vivid in the Nepal Himalayas. The total estimated ice reserve between 1977 and 2010 has decreased by 29 percent (129 km 3 ) and number of glacier lakes has increased by 11 percent and glaciers recede on an average by 38 km 2 per year. Increased size of glaciers will likely increase GLOFs. About 21 glacier lakes are already posing threat. Climate change has greater variability in stream flow, and climate-induced disasters such as floods, landslides and GLOFs pose significant risk to hydropower and irrigation facilities, other infrastructures and human settlements, including human life. The number of human casualties was higher in 2014 (487 persons) than in 2013 (460 persons) due to floods, landslides and other disasters. Under this scenario, climate change has impacted major economic and social sectors such as agriculture, water resources, forests and biodiversity, health and drinking water, and livelihood opportunities. However, scale of impact varies from lowland to highland and from east to west. The western part of the country is more prone to climate change. Accelerated adverse effects of climate change on the poor and climate vulnerable people, natural resources and development infrastructure calls to undertake urgent actions in Nepal to help people to adapt to, and build resilience to such effects. The 2013 study on Economic Impact Assessment of Climate Change in Key Sectors (agriculture, hydropower and water-induced disasters) has estimated direct cost (loss of income) of current climate variability and extreme events equivalent to an annual 1.5 to 2 percent of GDP and much higher in extreme years, rising up to 5 percent of the GDP by Economic costs of climate change for these three sectors would be equivalent to 2-3% of GDP by the mid-century. Other economic sectors are also adversely affected and challenged by climate change impacts. The 2015 earthquake (occurred on 25 April) claimed the lives of nearly 9,000 people and about 0.8 million people lost their home and property. Earthquake and climate-induced disasters have further accelerated climate risks and vulnerabilities, inter alia, to food, water, sanitation and ecological securities. It has increased cost for adaptation and building resilience would require more resources and/or poor people will further suffer from the brunt of climate

16 PAGE 15 OF 65 ver. 19 August change. Poor, climate vulnerable and earthquake affected people and productive ecosystems are greatly impacted by climate change phenomenon. Unless immediate actions are taken immediately, about one-third (affected by earthquake and climate-induced disasters) of the total population will be greatly affected from the accelerated adverse impacts of climate change. Nepal is continuously facing additional adaptation burden. It urgently requires huge investments in building adaptive capacity and resilience to climate change impacts. Adaptation being the 'lifeline for survival' of majority of poor people, it calls for urgent action to identifying and prioritising medium- and long-term adaptation options to reduce climate vulnerability and protect people, property and natural resources by integrating climate change adaptation (CCA) into relevant new and existing policies, programmes and activities. Maplecroft (2010) has rated Nepal as the fourth most climate vulnerable country despite its very negligible contribution to global greenhouse gas (GHG) emission (only percent to the total global GHGs emissions). Nepal's rural mountain communities have limited livelihood options, low adaptive capacity due to limited education and information, poor access to needy services, and inequitable access to productive assets. People also lack knowledge and information on appropriate adaptation options and strategies. Based on climate vulnerability and capacity analysis, and participatory social research, changing weather patterns in rural mountain areas have significantly challenged the livelihoods of the community, experiencing resource degradation, food scarcity, lack of basic services, and increasing social inequalities. Poor households are more vulnerable to climate variability. The changing climate is an additional burden to the poor people in the mountains and lowlands who are already living in poverty. Furthermore, a 2011 report from the World Bank, Vulnerability, Risk Reduction and Adaptation to Climate Change for Nepal projects mean annual temperatures to increase by 1.3 to 3.8 degrees Celsius by 2060s and 1.8 to 5.8 degrees Celsius by 2090s. Similarly, winters are projected to be drier and monsoon summers wetter, with three-fold increase in monsoon rainfall. Glacial retreat with the increased temperatures and the subsequent Glacial Lake Outburst Floods (GLOF) will exacerbate the impacts already felt by the most vulnerable communities 3. Despite the efforts put in place through the projects listed above in section C1 to build Nepals adaptive capacity in the face of such extreme challenges from climate change impacts, Nepal s capacity to implement integrated climate change adaptation is challenged by multiple factors. These factors include: i) limited access to well-organised knowledge to inform climate-resilient planning processes; ii) limited financial and technical capacities to implement policies, strategies and plans that integrate climate change; iii) absence of the required institutional structures to coordinate and fund cross-sectoral and sectoral planning; and iv) limited institutional structures and technical capacity to initiate a functional, cross-sectoral and iterative NAP process. The problem that this project will address is that the national response to climate change and variability in Nepal is currently projectbased with interventions that respond to localised adaptation needs. Consequently, it is expected that the vulnerability of Nepal s population and socio economic development to the negative effects of climate change will increase in the future. One of the drivers of the country s vulnerability to climate change is the limited capacity of local and national institutions to integrate climate change into social and economic development in a coherent and systematic manner. The preferred intervention therefore is to strengthen the technical and institutional capacity in Nepal to: i) systematically provide climate risk and vulnerability knowledge and information for informed decision making and integrating climate change adaptation into existing policies, strategies and plans as well as planning processes at both national and local levels; ii) institutional structure and climate finance mechanism to shift focus from immediate and short-term intervention and investment to medium and long term adaptation interventions and investment to support transformative changes, and iii) put in place a system to monitor and evaluate results of adaptation interventions as well as status of integration of climate change into development planning. The strengthened capacity will increase the resilience of the country to the effects of climate change in the medium- to long-term and support sustainable development. Importantly, the project will build on initiatives that are aligned with the NAP process including the LAPA, NAPA and NAPA-catalysed projects. The key barriers to the implementation of the proposed project solutions are as follows: a. Capacity: The Government of Nepal (GoN) recognises the need to mainstream considerations of climate change adaptation into cross-sectoral and sectoral policies, strategies and plans at national and local scales. However, government departments such as the Department of Environment have only recently become operational and coordination mechanisms such as the Multi-sectoral Climate Change Initiative Coordination Committee (MCCICC) need 3

17 PAGE 16 OF 65 ver. 19 August to be revitalised to attain desired outputs. As a result, there are gaps in technical and institutional capacity within Nepal s government to integrate climate change into policies, strategies and plans. The MCCICC is a progressive step towards more coherent adaptation planning, with its mandate to function as a national platform for enabling regular dialogue and consultations on policies, plans, projects, activities and finance for climate change 4. However, the technical capacity and availability of skilled staff within the Ministry of Population and Environment (MoPE) and other relevant national institutions is not yet sufficient to fulfil the complex function of integrating climate change priorities into crosssectoral and sectoral development planning. This barrier will mainly be addressed by Component 1 of the proposed project. b. Policy and finance: At present, many cross-sectoral and sectoral policies, strategies and plans do not include explicit consideration of building resilience to climate change. As a result of this limited integration of climate change into cross-sectoral planning, the sustainability of Nepal s socio-economic development is threatened. Additionally, Nepal has not yet fully made use of the existing opportunities to access international and national climate financing. Therefore, the funds allocated to adaptation to climate change in Nepal are not commensurate to the needs for adaptation. The country is in need of a robust strategy for funding adaptation in medium and long term. This barrier will be addressed under Component 3. c. Climate change information and knowledge: The availability and quality of climate data and information is inadequate and often not reliable for the design and implementation of an integrated approach to climate change adaptation interventions. Challenges also exist due to step reliefs of the country (lowland to highlands), scarcity of stations including time-series data in certain areas, lack of skilled human resource to collate and analyse available data and information, and lack of use of models to downscaling climate change impact areas. These challenges were also noted during the preparation of NAPA (2010), LAPA (2011) and Climate Change Policy (2011). This concern is included in the policy but its inadequate implementation has proved to be a challenge to meet the growing demand for necessary data and information for modelling to understand climate change trend and future climate scenario. Inadequate hydro-met stations in representative areas (landscape variability) and lack of such stations at higher altitude (at north and south facing slopes from east to west) is additional and most prominent challenge in Nepal and it has forced a reliance on peoples' perception and field observation on climate data and its impacts that are highly subjective. However, people have experienced increased temperature, landslides, torrential rains and floods which are claiming lives (human and livestock) and property each year and have challenged ecosystem functioning. In addition, there are still considerable gaps in the use of climate information, which frequently results in a superficial inclusion of such information in national planning processes. The current climate monitoring system requires technical strengthening, including: i) capacitybuilding of technical staff; and ii) a strategy for sustained operation and maintenance. Furthermore, knowledge on the most appropriate methods for adaptation across sectors e.g. EbA interventions is also often insufficient for longterm land use planning. This is partly a result of the limited availability of data to inform integrated adaptation. One of the factors for this data gap is the absence of mechanisms for collection, analysis and sharing of data on the effectiveness of climate change adaptation in Nepal. As a result, there is a limited understanding and awareness among the government and general public of future climate change scenarios, vulnerability and risk assessments, and adaptation opportunities. This barrier will be addressed under Component 2. The proposed project will address the above-mentioned barriers and challenges by supporting the efforts of the GoN to integrate adaptation to climate change into its economic development in a systematic manner. UN Environment will provide expertise and technical support to the Government of Nepal in integrating adaptation options into existing and new policies, strategies, and programmes (one of the objectives of NAP as mentioned in NAP Technical Guidelines). Nepal's approach is that TWG will provide technical inputs on what adaptation options are to integrate into existing and new policies and programmes and each TWG coordinator will have leading role in the government policy formulation process and contribute in integrating adaptation options as and when possible. This will ensure ownership of integration of adaptation options by national and sectoral ministries and technical agencies. The project is divided into the following four components: i) technical and institutional capacity for the NAP process in Nepal; ii) climate information system for prioritising adaptation needs; iii) funding strategy for the NAP process; and iv) monitoring, reviewing and knowledge sharing to learn from the NAP process in Nepal. This project will build on several initiatives and projects under implementation namely the NAPA and LAPA implementation 4 Ministry of Science, Technology and Environment MCCICC. Available at: थ ह /mccicc Accessed on 26 March 2014.

18 PAGE 17 OF 65 ver. 19 August project; BMUB funded GCF Readiness Programme; Integrating Agriculture into NAP project; PPCR Building climate resilient watersheds in mountainous ecoregions, Building resilience to climate related hazards, Mainstreaming Climate Risk Management in development and Building Climate Resilient Communities through Private Sector Participations; Hariyo Ban Project and Multistakeholder forestry programme; Mountain EbA; Community Based Flood risk and GLOF risk reduction programme. From the implementation of these projects Nepal has documented experience, knowledge and lessons learned on climate change adaptation in the recent years to promote 'evidence-based' adaptation undertakings. This practice, which has previously been undertaken as immediate and sporadic short term measures, could be best utilized to formulate the NAP for the longer term in the spirit of the 2010 Cancun Adaptation Framework, and build on preparation and implementation of the NAPA, LAPA and other climate change initiatives such as climate resilience programme (PPCR Pilot Programme on Climate Resilience). With this in perspective, Nepal has initiated the process to prepare a NAP through country-driven, inclusive and multi-stakeholder engagement, and fully transparent process, with the aim of mobilizing finance for advancing the NAP process, hence this proposal to the GCF. The National Designated Authority (NDA) of Nepal to Green Climate Fund (GCF) has requested UN Environment to support Nepal and act as a delivery partner to access GCF readiness and preparatory support for building capacity to advance national adaptation plan process. This request from the Government of Nepal falls within the approved PoW Outputs of UN Environment specifically output number 4 Technical support provided to countries to address UNFCCC adaptation planning and reporting requirements under expected accomplishment EA(a). Please also note that UN Environment and UNDP are jointly implementing National Adaptation Plan Global Support Programme (NAP-GSP) both for Least Developed Countries (LDCs) and Other Developing Countries with financial support from the LDCF under the Global Environment Facility (GEF). This provides enhanced knowledge about the NAP process and specifically the support required under different areas for countries to advance their National Adaptation Plan Process as well as a wealth of technical expertise among NAP-GSP partners that can be tapped into. c. Objectives, outcomes and impacts The main objective of this project is to strengthen the institutional and technical capacity of Nepal s government at both national and local level to advance the NAP process. This will be done in the spirit of the decision 5/CP.17 and in line with UNFCCC NAP Technical Guidelines developed by the LDC Expert Group. All four elements of the NAP process which include laying the groundwork, preparatory elements, implementation strategies; and reporting, monitoring and review will be fully considered during the NAP process and implementation of NAP prioritized adaptation options. See Figure 1below for more detail on the elements of the NAP process.

19 PAGE 18 OF 65 ver. 19 August Figure 1: Potential key elements and steps within a national adaptation plan process as outlined in the NAP initial and technical guidelines. Source: AC//13 Outcomes of the project This project will identify and use multiple ways to integrate climate change adaptation (CCA) options into new and existing national policies, strategies, plans and programmes of the key climate-sensitive and economic development sectors and institutionalize CCA as a 'development strategy' for Nepal as Nepali people have no alternative to survive from climate change effects and impacts. Outcomes (also referred to as the sub-components of the project) from this project are as follows: a. National and provincial government institutions are capable of integrating CCA into development policy and plans b. Meteorological Offices and Sectoral Ministries are able to use up to date climate information for risk assessment and appraisal of adaption interventions c. Government of Nepal endorses resource mobilization strategy for medium and long-term CCA investment including private sector engagement d. National and Sectoral Planning Unit of the key Ministries are capable of reviewing, monitoring and communicating results of the NAP process. The above stated outcomes will be supported by several outputs which will be delivered during implementation of this NAP readiness and preparatory proposal including types of outputs stated in the LEG technical guideline for NAP For example, under Element A (laying the groundwork), four reports for each working groups will be prepared. They are on: (i) stocktaking; (ii) stockholder mapping and actor's profile; (iii) capacity gaps, needs and barrier analysis; and (iv) development priorities and climate sensitivities. At the end of the completion of this element, the NAP roadmap will be revised based on lesson learned. The Element

20 PAGE 19 OF 65 ver. 19 August B (preparatory work) is the 'backbone' of the NAP process. Nepal considers the importance of accomplishing the tasks under this element so as to make an implementable NAP with enhanced country ownership. Nepal also considers the need for 'good amount of time' to understand the process and outcomes in this step. As a part of the Element B, Nepal will develop (i) past (trend) and future climate change scenario; (ii) vulnerability and risk assessments 5 ; (iii) compilation of climate change adaptation options; (iv) prioritization of adaptation options for medium- and long-term with their economic appraisal; (v) climate-resilient development vision; and (vi) a NAP document. A sustainable NAP coordination mechanism is sought to be strengthened. Once the NAP is in place, an approach for integrating adaptation into existing and new national and sectoral development policies, plans and programmes will be developed. A NAP implementation strategic framework will be developed in the spirit of the Element C, and a framework for monitoring, evaluation and review of NAP with indicators will be developed as a part of the NAP to promote implementation of prioritised adaptation options, institutionalized monitoring and evaluation, and documentation and adaptation communication for sharing good and failure practices with the international, regional and national and subnational adaptation communities. One of the outcomes of this project is to develop a funding strategy for NAP implementation. Impacts This project will have multi-fold impacts in integrating CCA into national to local level planning processes in different economic and social development sectors. The key impacts are expected as follows: a. Vulnerability of key economic sectors and people are addressed and climate resilient development promoted in Nepal by capacitating national and provincial government institutions; b. Enhance effective use of climate change adaptation finance for vulnerable population, sectors and regions by bringing synergies and avoided duplication of efforts through coordination among key ministries and partnership with private sectors. d. Stakeholders consultation Nepal's Business Allocation Rules has made ministries responsible for specific area of work such as planning and budgeting, infrastructure development, social and economic development etc. The Ministry of Finance is responsible for accessing and channelling funding to different ministries, and hence the Government has designated this Ministry as the NDA for GCF. The NDA has issued a no-objection letter on 31 January to UN Environment to function as the Delivery Partner to the NAP process. The MoPE works in close cooperation with the NDA and progress, challenges and barriers are timely and frequently communicated to the NDA based on national practice. In major initiatives like the NAP, Nepal has a culture of engaging multi-stakeholders to inform and ensure their participation, including the climate vulnerable communities and women. Each thematic and cross-cutting working group ensures participation of civil society organizations, local governments, academe and research, and private sector. Representation of minorities, marginalized and disadvantaged groups will be ensured during consultation at different geographical areas at national and subnational levels. Nepal's NAP process underscores the importance of 'leaving no one behind'. Multi-stakeholders will be engaged in working groups or reference or expert groups as appropriate. During the NAP process, efforts will be made to communicate to the political parties and parliamentary committees on environment and thematic areas affected by climate change. Interest groups and vulnerable communities will be given ample opportunities to raise their needs, ideas and concerns that will help to make Nepal s NAP inclusive. This NAP project will promote the culture of multi-stakeholders engagement. Nepal has already embarked on multi-stakeholder consultations at the district level (Nepal has 75 districts, 5 development regions and potentially 7 provinces). In the spirit of the new Constitution of Nepal (2015), new federal structures, legal provisions on right to information and in-country communication facilities and general practice of informing and engaging multi-stakeholders (institutions and individuals) in the policy and plan formulation, MoPE has planned to organize several consultations to collect information on climate change impacts, adaptation practices, and local needs as building blocks for the NAP process. This process will further ensure transparency, inclusiveness, wider acceptance and ownership in making NAP gender-responsive and promote involvement of indigenous communities and most climate vulnerable people. 5 Taking into consideration the IPCC AR5, 2014

21 Please also see the TWG composition description in the Context section above. PAGE 20 OF 65 ver. 19 August SECTION 4: PROJECT/PROGRAMME DESCRIPTION Describe the main activities and the planned measures of the project/programme according to each of its components. The following activities have been planned to implement to meet the above objectives and outcomes. Sub-Component/Outcome 1: National and provincial government institutions are capable of integrating CCA into development policy and plans Output 1.1: National policy documents and sectoral development plans identified to facilitate integration of adaptation options and to promote an integrated approach to adaptation planning including periodic reviews Strengthen the MCCICC mandate defining the tasks and responsibilities of the relevant stakeholders in overseeing the NAP process by building on existing strategies and frameworks such as the Climate Change Policy, Forestry Sector Policies and Strategies, Low Carbon Economic Development Strategy (draft), National Adaptation Programme of Action, National Framework on Local Adaptation Plans for Action, Environment Friendly Local Governance Framework, etc Analyse and develop reports for 9 cross-cutting and thematic areas by reviewing policies, strategies, plans and programmes as also identified through NAPAs on: i) the vulnerability of each thematic and cross-cutting areas in the face of climate change and opportunities for adaptation based on updated climate information; and ii) entry points for integrating adaptation to climate change into relevant policies, strategies and plans and programmes Propose revisions to selected cross-cutting and thematic area policies, strategies and plans to integrate adaptation to climate change Develop and institutionalize a strategy for the periodic review of cross-cutting and thematic area policies, strategies and plans including the integration in an iterative manner of: i) updated climate information; ii) lessons learned from the integration of climate change into these strategies and plans; iii) lessons learned from the implementation of these policies, strategies and plans; and iv) knowledge generated through the study and research programmes implemented under Component Provide orientation and training for policy- and decision-makers and implementers from relevant government institutions (e.g. MoAD, MoFSC, MoWCSS, MoEn, MoUD, MoHA, MoFALD, MoCTCA, MoH, NPC etc.) on: i) current vulnerability of each sector; ii) recommended revisions to current policies and institutions to integrate adaptation to climate change; and iii) the standardised approach to implementing the NAP process. Output 1.2: Workshop/training procedures or manuals developed and awareness raising events for public and private sectors, CSOs, and local communities on the NAP process conducted Raise awareness of the private sector on the national priorities and climate scenario, and on investment opportunities to increase the resilience of businesses to climate change Develop and implement at least one awareness raising campaign in each province for local authorities, CSOs and local communities on the national priorities for adaptation to climate change, climate scenarios, and opportunities for integrating adaptation into local development planning process Develop a step-by-step procedure or a training manual, as appropriate for integrating adaptation priorities into local

22 PAGE 21 OF 65 ver. 19 August development planning Disseminate the procedure or a manual to local stakeholders including development region or province and district officers, and CSOs 6. Sub-Component/Outcome 2: Meteorological Offices and Sectoral Ministries are able to use up to date climate information for risk assessment and appraisal of adaption interventions Output 2.1 Sustainable climate information system (monitoring, modelling, forecasting and dissemination) to inform climate change adaptation, including a long-term plan for operation and maintenance, established Gap analysis and needs assessment for a fully operational and sustainable climate information system in Nepal Develop GCF concept/s and associated documents for accessing project preparation facility toward developing full funding proposal for the installation of a fully operational and sustainable climate information system in Nepal based on the gap analysis and needs assessment (this is part of the development of GCF concepts under Activity 3.2.4) Develop a model for operation and maintenance of the climate information system in the long term Train staff from meteorological offices on using the climate monitoring equipment, using multiple sources of climate data, and the development of climate change scenarios, impact scenarios and modelling Update climate scenarios with new data and information. Output 2.2: System for cost-benefit analysis and appraisal of priority adaptation options established Develop a system to appraise individual adaptation options, including economic, ecosystem, and social costs and benefits for unintended impacts of adaptation measures in Nepal Define national criteria for prioritizing implementation based on development needs, climate vulnerability, risks, existing plans and valuation of ecosystem goods and services generated through study or research programme under Component 3. Sub-Component/Outcome 3: Government of Nepal endorses resource mobilization strategy for medium and long-term CCA investment including private sector engagement. Output 3.1: An assessment of the costs of meeting integrated adaptation needs in Nepal Review reports produced on costing adaptation in Nepal including inter alia the Climate & Development Knowledge Network (CDKN 2013) Economic Impact Assessment of Climate Change in Key Sectors, and Asian Development Bank (ADB 2014) South Asia report and identify information gaps for a reliable estimation of costs for implementing climate change adaptation in the medium and long term Undertake a detailed economic study to fill the information gaps and estimate the costs of implementing the adaptation interventions included in the cross-cutting and thematic area policies, strategies and plans updated under Component 1. Output 3.2: Strategy for GoN to effectively mobilise utilise funding resources for adaptation and revise existing funding mechanisms Identify potential new public, private, bilateral and multilateral sources of climate finance to address the adaptation needs assessed under Component Develop an adaptation finance strategy to: i) access new identified sources of adaptation finance; ii) review and strengthen the structure of the existing funding institutions; and iii) support effective channelling of funds across sectors according to adaptation priorities identified in Component Develop workshop training toolkits and provide training to strengthen the capacity of relevant government stakeholders to initiate the implementation of the adaptation finance strategy Develop 2-3 GCF concepts and associated documents for accessing project preparation facility toward developing full funding proposal for the installation of a fully operational and sustainable climate information system in Nepal based on the gap analysis and needs assessment undertaken in Component 2, as well as for addressing other identified 6 Including workshop/ training on writing proposals for interventions that promote integrated adaptation to climate change.

23 PAGE 22 OF 65 ver. 19 August adaptation needs. Output 3.3: Study or research programmes to inform future investments in adaptation across sectors Conduct a study and research programme in collaboration with relevant organizations such as NCCKMC, NAST, TUIoST, ICT Association of Nepal, DoIT of the Ministry of Science and Technology and/or other government institutions to measure the effectiveness of past, present and future adaptation interventions to inform long-term adaptation planning Identify previous and ongoing adaptation projects including EbA and ecosystem restoration in Nepal, building on the work of NAPA-catalysed projects, to be included in a long-term research programme Map responsibilities of key institutions in implementing, maintaining, monitoring relevant projects to inform adaptation planning on the medium- and long-term, including strengthening of existing research team/steering committee Develop business plans and financial models, working closely with the private-sector, to demonstrate the financial value of ecosystem goods and services generated by EbA to local communities and different sectors Design and implement a system for the dissemination of knowledge generated through the study and research programme to a wide range of public institutions and sectors, and iteratively integrated into policies and strategies through the periodic review process established in Component 1. This will include the dissemination of initial results during the project lifespan Sub-Component/Outcome 4: National and Sectoral Planning Unit of the key Ministries are capable of reviewing, monitoring and communicating results of the NAP process. Output 4.1: A monitoring and reviewing system established for the NAP process Develop a monitoring and reviewing system for the NAP process in Nepal including: i) milestones; ii) performance indicators at national and local levels; iii) targets on the short-, medium- and long-term; iv) outputs; v) monitoring and reviewing tools and templates; vi) assessment planning; and vii) and follow-up actions Institutionalize the monitoring and reviewing system for the NAP process by building on the current national M&E system of Nepal. Output 4.2: Technical training of national and local government representatives and stakeholders to implement the monitoring and reviewing system for the NAP Develop guidelines and tools for technical staff of relevant government institutions including MoPE, MoFSC, NPC, and other thematic lead ministries and departments to facilitate data collection, analysis and dissemination of the results to monitor and review the NAP process over the long term Train technical staff of relevant government institutions including MoPE, MoFSC, NPC, and other thematic lead ministries and departments on the use of these guidelines and tools to monitor and review the NAP process following the system developed in Component Raise awareness of national and local government stakeholders including decision-makers, and province-, district- and sector-level officers on the monitoring and reviewing system developed in Component 4, and provide training to meet the performance targets. Output 4.3: NAP progress reports and communication material on NAP formulation, implementation, funding and monitoring to learn from the NAP process in Nepal Document and analyse the successes, failures and lessons learned from the formulation, implementation, funding and monitoring of the NAP process and previous relevant initiatives aligned with the NAP process in Nepal Disseminate information on the successes, failures and lessons learned related to the NAP process in Nepal on national portals, NAP portals and other relevant networks including NAP GSPs and UNFCCC platforms Implement a system for the documentation and analysis of the NAP process to be conducted on a regular basis and beyond the project lifespan, and the results to be: i) disseminated to relevant national stakeholders; ii) integrated into the monitoring and reviewing system for the NAP process; and iii) disseminated on relevant portals Produce and disseminate video clips on the implementation of the NAP process in Nepal Present the progress of the NAP process in Nepal and during climate change related international meetings.

24 PAGE 23 OF 65 ver. 19 August Nepal's NAP process follows the maximum utilization of existing processes, practices and coordination mechanism, and experiences and lesson learned from NAPA preparation and implementation with improvements, if necessary. Nepal considers the NAP process an additional opportunity to enhance capacity by 'learning by doing' and interactive working group approaches. The proposed activities are tuned to meet the key objective of a sustainable and holistic mechanism and process to address climate change adaptation in the long term, in other words, a NAP. Each activity proposed commensurate the outputs and outcomes related to the NAP process, and strategy formulation for NAP implementation, reviewing, monitoring and reporting of NAP-prioritised adaptation actions, including 'adaptation communication' as included in the Paris Agreement, This process will equally contribute to generate and manage knowledge to share 'adaptation learning' with adaptation communities and policy-makers, funding agencies, climate change negotiators at international, regional and national levels and sub-national level where appropriate.

25 PAGE 24 OF 65 ver. 19 August SECTION 5: BUDGET, PROCUREMENT, IMPLEMENTATION AND DISBURSEMENT The following table provides annualised budget against each output under main cost categories and detailed have been presented in the costed log-frame in annex I (a). Implementation schedule is also provided as Annex IV below GCF Sub-component/Outcome and Outputs FT30 class Class of expenditure Year 1 (USD) Year 2 (USD) Year 3 (USD) TOTAL 1. National and provincial government institutions are capable of integrating CCA into development policy and plans. 1.1 National policy documents and sectoral development plans identified to facilitate integration of adaptation options and to promote an integrated approach to adaptation planning including periodic reviews. 1.2 Workshop/training procedures or manuals developed and awareness raising events for public and private sectors, CSOs, and local communities on the NAP process conducted. 10 Staff and other personnel costs 59,500 37,500 97, Contractual services 16,500 31,500 48, Transfers and grants issued to Implementing Partner (IP) 40,000 40,000 TOTAL for Output , , , Staff and other personnel costs 30,100 64,400 94, Contractual services 9,750 82,750 92, Travel 2,625 15,875 18,500 TOTAL for Output , , ,500 TOTAL for Component 1 118, , , Meteorological Offices and Sectoral Ministries are able to use up to date climate information for risk assessment and appraisal of adaption interventions. 2.1 Sustainable climate information system (monitoring, modelling, forecasting and dissemination) to inform climate change adaptation, including a long-term plan for operation and maintenance, established. 10 Staff and other personnel costs 27,500 57,500 7,500 92, Contractual services 3, , , , Transfers and grants issued to Implementing Partner (IP) 15,000 30,000 45, Travel 5,625 66,875 72,500 TOTAL for Output , , , ,000

26 2.2 System for cost-benefit analysis and appraisal of priority adaptation options established READINESS AND PREPARATORY SUPPORT PAGE 25 OF 65 ver. 19 August 10 Staff and other personnel costs 27,500 57,500 7,500 92, Contractual services 3, , , , Travel 1,500 1,500 3,000 TOTAL for Output ,500 45,500 70,000 TOTAL for Component 2 75, , , , Government of Nepal endorses resource mobilization strategy for medium and long-term CCA investment including private sector engagement. 3.1 An assessment of the costs of meeting integrated adaptation needs in Nepal 3.2 Strategy for GoN to effectively mobilise, utilise funding resources for adaptation and revise existing funding mechanisms. 3.3 Study or research programmes to inform future investments in adaptation across sectors 10 Staff and other personnel costs 32,500 20,000 52, Contractual services 9,000 3,000 12,000 TOTAL for Output ,500 23,000 64, Staff and other personnel costs 87,500 61, , Contractual services 20,000 40,500 60, Transfers and grants issued to Implementing Partner (IP) 80,000 40, , Travel 6,500 10,500 17,000 TOTAL for Output , , , Staff and other personnel costs 48, , , Contractual services 64,000 64, Transfers and grants issued to Implementing Partner (IP) 115, , Travel 4,500 30,000 34,500 TOTAL for Output , , ,000 TOTAL for Component 3 53, , , , National and Sectoral Planning Unit of the key Ministries are capable of reviewing, monitoring and communicating results of the NAP process. 4.1 A monitoring and reviewing system established for the NAP process. 10 Staff and other personnel costs 29,000 17,000 46, Contractual services 21,750 16,750 38, Transfers and grants issued to Implementing Partner (IP) 20,000 20, Travel 2,500 2,500 5,000 TOTAL for Output ,250 36, ,500

27 PAGE 26 OF 65 ver. 19 August 4.2 Technical training of national and local government representatives and stakeholders to implement the monitoring and reviewing system for the NAP 10 Staff and other personnel costs 17, , , Contractual services 92,000 92, Travel 1,000 17,000 18,000 TOTAL for Output , , , NAP progress reports and communication material on NAP formulation, implementation, funding and monitoring to learn from the NAP process in Nepal 10 Staff and other personnel costs 18,000 7,500 25,000 50, Contractual services 21,500 16,000 21,000 58, Transfers and grants issued to Implementing Partner (IP) 27,000 27, Travel 10,000 10,000 10,000 30,000 TOTAL for Output ,500 33,500 56, ,000 TOTAL for Component 4 76, , , , Monitoring and Evaluation 5.1. Mid Term Evaluation (MTR) 5.2. Terminal Evaluation (TR) 10 Staff and other personnel costs 18,000 25,000 43,000 TOTAL for Component 5 18,000 25,000 43,000 National Level Project Management Unit (PMU) 10 Staff and other personnel costs 86,000 86,000 86, , Equipment, vehicles and furniture 10,000 10, Travel 1,000 1,000 1,000 3,000 Operating Expenditure 2,500 2,500 2,500 7,500 TOTAL for National Level PMC 99,500 89,500 89, ,500 Delivery Partner Fee (10%) 42, ,365 72, ,850 GRAND TOTAL 465,410 1,676, ,925 2,935,350

28 PAGE 27 OF 65 ver. 19 August Procurement plan For goods or services to be procured/hired, list the items to be procured/hired (including consultants), the estimated cost of each item, and the procedure to be used (i.e. direct procurement, open tender, shopping, other and related thresholds). Please include the procurement plan for at least the first tranche of disbursement requested below. Overall financial management and procurement of goods and services under this readiness and preparatory support proposal will be guided by UN Environment s regulations, rules, policies and procedures as well as its programme manual for nationally implemented project modalities. Further, procurement of goods and services will follow the general principles stated under clause 7 of Framework Readiness and Preparatory Support Grant Agreement (Framework Agreement) between Green Climate Fund (GCF) and UN Environment. UN Environment will comply with its obligation under clause 7 (a) of the Framework Agreement, which states The procurement of Goods and Services for Approved Readiness Support Proposals, whether by the Delivery Partner or by a third party, shall be done in accordance with the rules, policies and procedures of the Delivery Partner. For this readiness and preparatory support proposal, procurement of services of technical international and national consultants will be directly managed by UN Environment, in consultation with the Ministry of Population and Environment (MoPE) and GCF s National Designated Authority (NDA) of Nepal, the Ministry of Finance. Further UN Environment will engage MoPE as a third party to procure goods and services in delivering activities at national level as they relate to meetings, workshops, etc. The types of procurement and process to be followed for this readiness and preparatory support project is presented below: Procurement Item Monetary Threshold Procurement Type General Characteristics of Goods and Services to be Sourced Goods and Services specific to GCF Proposal Procurement Process Time Frame Goods and Services (Commercial Vendors) < US$ 10,000 Low Value Procurement 1. Readily available offthe-shelf goods with standard specifications, available from several sources of supply within the country. 2. Goods must not be covered by Blanket Purchase Order (BPO) or Systems Contract, neither in stock nor in procurement pipeline. 3. LVP is not for international purchases Basic, standard goods or simple services with clear specifications 678,500 USD in total for Meeting Packages, translation, printing, office supplies and Travel costs Three informal quotations must be obtained with relevant information (price, quantity, delivery, time, etc.) via , fax etc. using the best value for money approach 1. Vendors can submit bids via to a centralized address 2. Evaluation criteria are pass/fail basis only and a vendor needs to pass all criteria to be considered 1 day to 1 week Goods and Services (Commercial Vendors) US$10,000 > Request for Quotations 767,000 USD for Website development, filming, upgrading of climate information system, twinning arrangement and vulnerability assessments 1 week to 2 months

29 PAGE 28 OF 65 ver. 19 August Services of International and local experts (Consultants/ individual contractors) N/A Recruitment A consultant is an individual who is a recognized authority or specialist in a specific field, engaged by the United Nations under a temporary contract in an advisory or consultative capacity to the Secretariat. A consultant must have special skills or knowledge not normally possessed by the regular staff of the Organization Total Budget excluding project Management Costs 1,223,000 USD in total for International and local Experts USD 2,668, Formulation of ToR and job vacancy announcement for a minimum of 7 days. 2. Desk review of Applications followed by shortlisting. 3. Interview of shortlisted applicants followed by selection by the Hiring Manager Usually 4-6 weeks Detailed Procurement Plan Procurement Type Procurement Item Amount (in USD) Procurement Timeframe Low Value Procurement of Goods and Services Contractual Services 459,500 Y1Q1-Y3Q4 Travel 201,500 Y1Q1-Y3Q4 Equipment, vehicles and furniture 10,000 Operating Expenditure 7,500 Y1Q1-Y1Q4 Request for Quotations of Goods and Services Recruitment of Services of International and Local Experts Contractual services 400,000 Y2Q1-Y2Q4 Transfers and grants issued to Implementing Partner (IP) 367,000 Y1Q1-Y1Q4 International experts 275,000 Y1Q1-Y3Q4 National Experts 690,000 Y1Q1-Y3Q4 National Officer (UN Environment) 258,000 Y1Q1-Y3Q4 TOTAL 2,668,500 Disbursement schedule Specify the proposed schedule for requesting disbursements from the GCF, including amounts and periodicity. For amounts requested, keep to multiples of USD 5,000, and for periodicity, specify whether it s quarterly, bi-annually or annually only. UN Environment as the Delivery Partner for this Readiness and Preparatory Support Proposal will submit a request to GCF for disbursement of grant following approval of R&P Support Proposal. The disbursement request will be signed by the authorised representative of the UN Environment and will include details of the bank account into which the grant will be deposited. UN Environment, the Delivery Partner for this R&P Support Proposal for Nepal, will administer the grant disbursed by the GCF in accordance with UN Environment s financial rules, regulation and procedures including maintenance of records of grant, disbursements and expenditure. UN Environment will allocate disbursed grant for procuring goods and services required to implement activities of the approved

30 PAGE 29 OF 65 ver. 19 August Readiness and Preparatory Support Proposal and will follow procedures and guidelines stated under clause 5 (Use of Grant Proceeds by the Delivery Partner) of Framework Readiness and Preparatory Support Grant Agreement between GCF and UN Environment. Disbursement schedule will follow the indicative yearly budget provided in the beginning of Section 5 and in accordance with the procurement plan (costed logframe) presented in Annex I. Additional information This box provides an opportunity to include further explanations related to the budget, procurement plan and disbursement schedule, including any details on the assumptions to justify costs presented in the budget.

31 PAGE 30 OF 65 ver. 16 August SECTION 6: IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION Please attach an implementation map or describe how funds will be managed by the NDA/FP or delivery partner If the entity implementing the readiness support is not an accredited entity of the GCF, please complete the Financial Management Capacity Assessment (FMCA) questionnaire (URL) and submit it with this proposal. Overall responsibility of implementation of activities including activities to be carried out by third party as well as timely delivery of outputs and achievement of intended results of this readiness and preparatory support proposal lies with UN Environment as the Delivery Partner. Further, as the delivery partner for this readiness and preparatory support project, UN Environment through its Asia and the Pacific Office will be responsible for overall coordination, oversight of the implementation of activities and evaluation of the project, which will be done in coordination with the Project Steering Committee (PSC) and the national Project Manager (PM). UN Environment will be also responsible for preparing progress reports, monitoring and evaluation reports including a Midterm Review and a Terminal Evaluation. A UNEP Programme Officer (PO) will be responsible for project supervision to ensure consistency with GCF and UN Environment policies and procedures. The PO will formally participate in the following: a) Annual Project Steering Committee (PSC) meetings; b) the mid-term review and final evaluation; c) the clearance of Progress Reports; and d) the technical review of project deliverables. UN Environment will engage the Ministry of Population and Environment (MoPE) as the main national level partner (third party) to support national level coordination and implementation of activities proposed under this readiness and preparatory support proposal. This will ensure appropriate participation of national level actors and stakeholders, effective use of resources as well as ownership of different outputs to be delivered under this project. Engagement of MoPE will be governed by UN Environment s programme manual () for implementation of project activities at national level. MoPE will assign a dedicated project manager who will support the implementation of national level activities, monitoring the progress using indicators and updating the logframe on a quarterly basis, with support from the local technical assistant and UNEP Programme Officer, for review by senior management at MoPE and UNEP. To avoid duplication of efforts and increase effectiveness and coherence, the Multi-stakeholder Climate Change Initiative Coordination Committee (MCCICC) established by the Government during NAPA formulation will serve as the PSC for this project. The MCCICC is chaired by the Secretary of the Ministry of Population and Environment, and is represented by senior government officers of the concerned ministries (development ministries sensitive to climate change impacts), associations of local bodies (district development committee, municipality and village development committee associations), non-governmental organizations (national and international), academic and research institutions, community-based organizations and independent experts. Furthermore, this broad-based MCCICC is also represented by inter-governmental body, key donors and development partners supporting and working on climate change in general, and adaptation in particular. The PSC will primarily serve to provide project oversight and advisory support, including: a) overseeing project implementation; and b) reviewing annual workplans. The PSC will meet at least twice a year with ad hoc meetings held as and when necessary to discuss the project's main performance indicators and provide strategic guidance. A representative of UN Environment will also sit in the PSC. In addition to this, a Technical Committee will be constituted under the chairmanship of the UNFCCC focal point/person for Nepal to provide technical guidance and ensure communication and reporting on the NAP process with national and international adaptation communities. A Project Management Unit will be established for day to day management of the project. The following positions are budgeted under the PMC budget: National Project Coordinator (full-time) National M&E and gender officer (full-time) National Administration & Finance officer (full-time) General Support Staff/Office Assistant (full-time) The PMU will coordinate activities between the project s DP, EE and various partners to oversee the implementation of the project s activities, reports, including approval of any changes to the project s targets, activities or timelines. In addition to the above, two part-time international consultants are budgeted as part of PMU Cost to carry out a mid-term review and terminal evaluation of the programme. Finally, a part-time international consultant working as Chief Technical Advisor (CTA) will provide technical backstopping and support to all components of the project. As this is a technical position, this is not budgeted under

32 PAGE 31 OF 65 ver. 16 August PMC. Hence a full time international Project Manager will not be recruited by the project as the international assistance will be more on the technical side. Procurement procedures of the whole project will follow UN Environment s procurement and contracting procedures, and will be supported by the National Administration & Finance officer. The thematic and cross-cutting working groups are another form to coordinate and reach-out the multi-stakeholders for their inputs. In order to ensure stakeholder engagement in the NAP process, several institutions are already accommodated in the working groups. Stakeholders are grouped into service providers, beneficiaries, enablers and advocates. Some organizations may play 'double role' due to their nature, working areas and priorities. For example, indigenous communities may function as beneficiaries and advocates, and media may function as enablers and advocates. The working groups are, in general, represented from relevant governmental institutions, local bodies (associations), professional societies, federations and networks, women, youth, indigenous communities, media, non-governmental organizations, and private sector. However, the UNFCCC focal point will inform and communicate the progress made on NAP process (of this project) to the relevant constitutional bodies such as women commission, and parliamentary committees. The donors and development partners will also be communicated timely and frequently also to seek their inputs and priorities as well. For knowledge generation and sharing, this proposed project will benefit from Nepal Climate Change Knowledge Management Centre (NCCKMC) established in 2010 as an outcome of the NAPA project under the Nepal Academy for Science and Technology (NAST). This Centre is also engaged in facilitating research and development on climate change. The NAP process is expected to greatly benefit from receiving data and information and communicating NAP outputs through Centre's network. As mentioned above, this project will be coordinated and led by the UNFCCC focal point the Ministry of Population and Environment (MoPE) which is also the secretariats of the CCC, CCCC and MCCICC. Hence, the secretariat is expected to report/communicate the progress and outcomes of this project to the Council and Committee, led at political level, for coordination, support and guidance, as and when necessary. As the selected Delivery Partner for this project, UN Environment through its Regional Office for Asia and the Pacific (ROAP) will provide the overall oversight functions of this project and provide necessary services to the Government of Nepal in an expedited manner. In particular, in consultation of the NAP coordinating body, UN Environment will ensure that project activities adhere to those listed in the project document, provide technical advisory services to the coordinating body and other parts of the project execution team. UN Environment will additionally provide for services pertaining to acquisition of goods and services related to this project, following UN Environment procurement and contracting procedures. The NAP implementation modality is as follows:

33 PAGE 32 OF 65 ver. 16 August Other relevant information

34 PAGE 33 OF 65 ver. 16 August This box provides an opportunity to include any important information you wish to bring to the attention of the GCF Secretariat, but did not have an opportunity to provide in the sections above. Value added for GCF Involvement The GCF is the operational entity to the UNFCCC and Paris agreement and a major funding source for the LDCs to implement future dedicated adaptation options to protect people and ecosystem resources from the adverse impacts of climate change. The Marrakech Accord in 2001 provided LDCs an opportunity to access funding from LDCF for NAPA preparation and implementation. Nepal prepared NAPA with seed funding (US$ 0.2 million) from the LDCF and additional funding supports from UK Aid/DFID (US $ million) and Danish Government (US$ 0.2 million) in This funding provided Nepal to expedite NAPA preparation, build country capacity, engage stakeholders and establish knowledge management centre (NCCKMC). Some of the NAPA prioritized adaptation projects are now under implementation. Parties to the UNFCCC decided to request the LDCF to fund NAP formulation activities but none of the LDCs have received funding from LDCF as of May. Parties also decided to request the GCF to provide funds for NAP formulation and implementation. The GCF has already allocated 50 percent of its total funding for adaptation and its 50 percent to LDCs, SIDs and Africa. With this in perspective, the Government of Nepal has decided to access funding from GCF taking into consideration COP decisions and funding availability with CGF. The GCF Board Decision (B.13/09) has further convinced Nepal to access GCF resources for NAP preparation and implementation. Nepal has initiated NAP process in May with initial seed funding from UK Aid through ACT (Action on Climate Today) initiative. Now, NAP technical team is in place and has developed 'common understandings' on the NAP process through national consultative processes. This NAP process is expected to be terminated due to limited resources. Hence, Nepal urgently requires additional funding to expedite the NAP process in line with decisions 1/CP.16, 5/CP.17 and COPs' other decisions and Article 7 of the Paris Agreement. From 2013 onwards, Nepal made every effort to explore funding from multiple sources for NAP process but two and half years was spent without any progress. Being a LDC and as per the Party's decision to support LDCs, and considering recent decision of GCF to support the NAP process, Nepal believes that GCF resources will contribute to prepare NAP and implement NAP-prioritised adaptation options. This will greatly contribute to engage poor and climate vulnerable communities in preparation of NAP and implementation of NAP-prioritised adaptation options through her indigenous LAPA framework. This will also greatly contribute to build adaptive capacity and resilience of both climate vulnerable people and ecosystems. Furthermore, Nepal will benefit from adaptation initiatives and experiences of the GCF. Nepal has no alternative financial resources for NAP. Existing funding for NAP process sufficiently limits use of science in climate scenario development, risk and vulnerability assessment, wider stakeholder consultation and engagement in the NAP process and limits activities related to national adaptation planning process and integration of adaptation into existing and new policies, strategies and programmes. Hence, GCF resource is urgently needed and required to keep the national momentum of NAP process and help people to understand and build their adaptive capacity. Exit Strategy The project s exit strategy is based on the integration of climate change adaptation into existing government plans and activities beyond the life of the project through integration of climate change adaptation into ongoing planning at local, regional and national levels. As stated above, the conditions are right for effective adaptation planning in Nepal. The proposed project aims to holistically strengthen the capacity of existing structures and systems to function effectively beyond the duration of the project. All the support envisaged in this proposal will be undertaken with a view to sustainably build technical and institutional capacity such as trainings and workshops, research grant focusing on collection and dissemination of climate information in Nepal, partnerships with academic and technical institutions, focusing on a study to inform future climate investments, an M&E framework for adaptation interventions, and finally integration of adaptation in various development and sector strategies and plans. These are expected to ensure sustainable functioning of the NAP process, in the long run. In each activity under the project, documents will be prepared though meaningful engagement of stakeholders for inputs and comments which will contribute to inform the stakeholders on the state of NAP process as well as will ensure their input and ownership.

35 PAGE 34 OF 65 ver. 16 August Once the NAP document is approved by the Government (normally by the Cabinet), relevant ministries, departments, NGOs and private will be engaged in developing adaptation programmes and projects, accessing funding and implementing programmes and projects. This will ensure their continued engagement in the process of the implementation of the NAP and future cycles of it. Furthermore, with the critical components focusing on development of capacity of stakeholders in mainstreaming adaptation into development plans and strategies; and financing strategy, including identification of potential new sources of climate finance, as well as valuating ecosystem goods and services to ensure commercial viability of such investments, the project will promote a paradigm shift across Nepalese government and society such that decision makers in the government and non-traditional donors like the private sector invest in adaptation. Considering the increasing threats and impacts of climate change, Nepal has limited choice to go beyond adaptation. This has been realized at the highest political level, policy-making, administrative and implementation levels. A small section of the community in rural and urban areas is now engaged in finding ways to build adaptive capacity and resilience. This is also clearly and adequately reflected in Nepal's development policies and programmes, and institutional structure. The Government has a dedicated Climate Change Management Division in the Ministry of Population and Environment with 9 permanent officers, and Environmental Impact Adaptation Section in the Department of Environment with 4 dedicated permanent officers. Similarly, relevant ministries and departments are engaged in strengthening institutions to promote climate change adaptation activities. As the NAP process will be advanced by ensuring multi-stakeholders engagement and an adaptation integration procedure will be developed and implemented as a part of this project, it will encourage continuation of addressing CCA through multiple windows such as policy and programme intervention, awareness raising, reward of best practices (a process to provide climate change award on the occasion of World Environment Day, June 5 is established), and exhibitions. This project is expected to enhance understanding on 'urgency' to move towards CCA to address medium- and long-term adaptation needs and help poor people to 'live with adverse impacts of climate change'. Existing partnership between the Government of Nepal and UN Environment on adaptation portfolio also provides ample opportunities to ensure sustainability of the project outcomes. Recently, implementation of an ecosystem-based adaptation programme (a global flagship programme) is completed with UN Environment support. UN Environment is supporting LDCF-funded 'catalysing ecosystem restoration for climate resilient natural capital and rural livelihoods in degraded forests and rangelands of Nepal'. A project on 'ecosystem-based adaptation for climate-resilient development in the Kathmandu Valley' is technically approved by the GEF and is expected to be funded soon. UN Environment will function as GCF Implementing Agency for this project. A PMU will be established to coordinate and support these adaptation projects within MoPE. This Unit is expected to promote and ensure sustainability for not only NAP process and its outcomes but also to support develop future 'adaptation programmes' for Nepal. The Government of Nepal is committed to make the outcomes of this NAP process sustainable and will ensure sustainability for longer term adaptation benefits. Potential for knowledge and learning The project has a dedicated component on knowledge aspects hence lesson learnt and knowledge products generated from the project will be collected and shared with other LDCs and interested 'adaptation communities' through different means including global and regional networks and knowledge platforms such as Global Adaptation Network, Asia Pacific Adaptation Network, South-South Cooperation Forum and Platform etc. In addition, Nepal NAP team will use the COPs and SBs meeting through sideevents, exhibition, NAP Expo, flyers, posters, websites etc. This sharing will also contribute to learn from other similar initiatives. Nepal has also planned to share her NAP through the 'NAP Central' of the UNFCCC. The long term research on adaptation in Nepal, which is part of the component 4 will also be documented and its results will be disseminated with other NAP teams.

36 PAGE 35 OF 65 ver. 16 August SECTION 7: ARRANGEMENTS FOR MONITORING, REPORTING AND EVALUATION Please provide project/programme specific institutional setting and implementation arrangements for monitoring and reporting and evaluation. Please indicate how the interim/mid-term and final evaluations will be organized, including the timing. As described above, the Ministry of Population and Environment UNFCCC focal point is the lead agency for NAP and associated capacity building/enhancement of the relevant multi-stakeholders of climate change adaptation. The Climate Finance Management Section of the Climate Change Management Division in the Ministry is coordinating and leading the NAP process. In addition, concerned ministries will lead the themes and send information updates to the MoPE for a single Adaptation Plan. This approach of working group mobilization was successfully and effectively practiced in the NAPA preparation process in The same approach has been followed with improvements and by ensuring engagement of additional stakeholders. A number of documents will be prepared and shared with stakeholders. The project will prepare a practical and user-friendly action plan with monitoring indicators. The in-built monitoring process will be adopted and MoPE will be engaged in monitoring. The thematic leads will report back the progress to the NAP coordinator and MoPE. The NAP technical team will compile the monitoring progress report every 4 months and report to the concerned agencies while UN Environment will report monitoring progress to the GCF as per its standard practice. The M&E and gender officer, in coordination with the national project coordinator and the international technical advisor, will be in charge of monitoring the indicators and updating the log-frame on an annual basis, for review by senior management at MOPE, MOF and UN Environment, with support from the administration and finance officer. Given the proposed project duration of 36 months, it is proposed to submit the reports as follows: Interim report (months 1-12): to be submitted by end of Month 13 Mid-term review report (covering months 1-18): to be submitted by the end of Month 19 Interim report (months 13-24): to be submitted by the end of Month 25; Final report (months 25-36): to be submitted by end of Month 37; along with a terminal evaluation report. A mid-term review will be undertaken approximately half way through the implementation of this project and an independent final evaluation will be conducted at the end of this 3-year project by the UN Environment Evaluation Office. Interim and final progress reports will be submitted to the GCF within one month of completion of the reporting period indicated above. An implementation action plan with monitoring indicators will be developed, discussed at the working groups, Technical Committee and MCCICC and finalised. The thematic leads will ensure self-monitoring which will be compiled and verified by the NAP coordinator and MoPE. The outcome documents will be shared with relevant stakeholders and UN Environment will be engaged in communicating the progress monitoring and outcomes. Furthermore, UN Environment Evaluation Office will conduct final evaluations by mobilizing independent consultant/consulting firm.

37 PAGE 36 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT ANNEX I Costed Logframe Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Component 1: Technical and institutional capacity for the NAP process in Nepal Subcomponent/Out 1.1. National policy Strengthen the MCCICC mandate Local consultant (national climate & socio- LC: 25 documents and defining the tasks and responsibilities economic expert) to strengthen MCCICC $300/day come 1: sectoral of the relevant stakeholders in mandate (25 days including desk review of all 2 x day meeting = National and development plans overseeing the NAP process by documents, building on existing mandates, $4,000 provincial identified to building on existing strategies and strategies and frameworks mentioned and IC: 8 $500/day government facilitate integration frameworks such as the Climate detailing key roles and responsibilities with institutions are of adaptation Change Policy, Forestry Sector regards to the NAP) capable of options and to Policies and Strategies, Low Carbon integrating CCA promote an Economic Development Strategy 2 meetings (one brainstorming workshop and into integrated approach (draft), National Adaptation one validation workshop of MCCICC mandate development to adaptation Programme of Action, National International policy & CC expert to support policy and plans planning including periodic reviews. Framework on Local Adaptation Plans for Action, Environment Friendly national expert in finalizing document US $ 390,500 Local Governance Framework, etc. US $ 185, Analyse and develop reports for 9 cross-cutting and thematic areas by reviewing policies, strategies, plans and programmes as also identified through NAPAs on: i) the vulnerability of each thematic and cross-cutting area in the face of climate change and opportunities for adaptation based on updated climate information; and ii) entry points for integrating adaptation to climate change into relevant policies, strategies and plans and programmes. Local consultant to produce as deliverables: 9 x report for each cross-cutting and thematic areas reviewing relevant documents. o For 1 report: 5 days o Total = 45 days o 45 days to include editing and graphic design of reports Include international consultancy support (international policy & CC expert and international CTA) to provide technical assistance to develop e.g. more detailed vulnerability analyses based on available information on regional climate models etc. LC: 45 $300/day IC: 15 $500/day Meetings: o 9 x (1/2 day) meetings to present/validate the report to each TWG for feedback and finalization and 1 day final presentation of reports to TWGs = $7,500

38 PAGE 37 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Propose revisions to selected crosscutting and thematic area policies, strategies and plans to integrate adaptation to climate change. Local consultant time National Policy and Legal Expert International consultant support to integrate CC (International Policy and Legal Expert) Validation workshop to agree on proposed revisions Meetings with technical experts LC: 80 $300/day IC: 15 $500/day 1 day validation meeting = $2, meetings with technical and policy experts = $2, Develop and institutionalize a strategy for the periodic review of cross-cutting and thematic area policies, strategies and plans including the integration in an iterative manner of: i) updated climate information; ii) lessons learned from the integration of climate change into these strategies and plans; iii) lessons learned from the implementation of these policies, strategies and plans; and iv) knowledge generated through the study and research programmes implemented under Component 3. Deliverable: (i) a strategy for the periodic review of cross-cutting and thematic area policies, strategies and plans; (ii) its institutionalization o (i) Development of strategy: local consultant o (ii) Institutionalization: at least 1 workshop (budgeted for 3 for whole activity) LC: 60 $300/day 3 x 1 day meetings/validation workshop = $7,500

39 PAGE 38 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Provide orientation and training for South-South knowledge exchange visit policy- and decision-makers and Local consultant: design of orientation and 1 week knowledge exchange visit of Govt. implementers from relevant training for policy- and decision-makers (include of Nepal officials to and government institutions (e.g. MoAD, time for meeting with key bodies on what they training on integration MoFSC, MoWCSS, MoEn, MoUD, want from the training) of CC into national MoHA, MoFALD, MoCTCA, MoH, NPC Hiring of venue & meeting package 3-5 day planning: contractual etc.) on: i) current vulnerability of each sector; ii) recommended training in Kathmandu services: $40,000 Local consultant as revisions to current policies and institutions to integrate adaptation to trainer and facilitator: climate change; and iii) the 50 $300/day standardised approach to implementing the NAP process. training workshop: $ 20,000 Printing: $4,000

40 PAGE 39 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes 1.2 Workshop/training procedures or manuals developed and awareness raising events for public and private sectors, CSOs, and local communities on the NAP process conducted Raise awareness of the private sector on the national priorities and climate scenarios, and on investment opportunities to increase the resilience of businesses to climate change. US $ 205,500 Local consultant (adaptation expert) to help with sourcing information and meeting with private sector reps. Also to produce briefing notes for each of the most vulnerable sectors. International consultant (Adaptation expert and International CTA): Study on the key vulnerabilities of the key sectors (agriculture, industrial activity, energy/hydropower, tourism ) represented in the Nepal private sector to CC following most recent IPCC and SNC, and any other sources of information (e.g. more regional level modelling work). Develop factsheets as promotional material to be used in awareness raising campaigns. Also include study on investment opportunities to increase resilience of business to CC. 1 day awareness-raising event for private sector representatives (e.g. in collaboration with Nepal Chamber for Commerce etc.) LC: 80 $300/day International consultant 20 $500/day Meeting with concerned sectors representatives and 1 day workshop/event for presentation - $7,000 Printing - $2,000 Travel - $3,000

41 PAGE 40 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Develop and implement at least one Nepal has 7 federal provinces as of 20 Sept 2015 LC: 33,000 for designing awareness raising campaign in each province for local authorities, CSOs under the new constitution hence 7 awareness raising campaigns are needed and supporting these awarenessraising campaigns in and local communities on the 7 x annual awareness raising campaigns (1 per national priorities for adaptation to year) including: Years 1 to 3 climate change, climate scenarios, o Radio shows Meeting/workshop: and opportunities for integrating o Publish magazine articles 30,000 for running adaptation into local development planning process. o Plays, songs these awarenessraising campaigns in o Event in each of the 7 provinces Years 1 to 3 Travel - $10,500 over 3 years Printing $9, Develop a step-by-step procedure or a training manual, as appropriate, for integrating adaptation priorities into local development planning. Develop training manual (English and Nepali) 1 x launch event and consultation 1 day validation and launch Local consultant (Adaptation expert and training expert) Translation International consultant international CTA $22,500 local consultant 75 $300/day $5,000 international consultant $12,500 for consultation and validation workshops and meetings $4,000 for translation

42 PAGE 41 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Disseminate the procedure or manual 7 x ½ day launch of the manual in each $ 18,000 for 3 years for to local stakeholders including province? launch and dissemination province and district officers, and Local consultant (Adaptation expert and training CSOs. expert), meeting hire, travel $5,000 travel $10,000 venue hire (workshops) Component 2: Climate information systems for prioritising adaptation needs. Subcomponent/Out information system 2.1 Sustainable climate come 2: (monitoring, modelling, Meteorological forecasting and Offices and dissemination) to inform Sectoral climate change Ministries are adaptation, including a able to use up long-term plan for to date climate operation and information for maintenance, established. risk assessment and appraisal of US $ 587,000 adaption interventions. US $ 657, Gap analysis and needs assessment for a fully operational and sustainable climate information system in Nepal Develop GCF concept/s and associated documents for accessing project preparation facility toward developing full funding proposal for the installation of a fully operational and sustainable climate information system in Nepal based on the gap analysis and needs assessment (this is part of the development of GCF concepts under Activity 3.2.4) Develop a model for operation and maintenance of the climate information system in the long term. Training needs analysis by external contractor Travel See Activity no budgets allocated here International consultant Hydrometeorology expert $30,000 for assessment $5,000 travel $40,000 international consultant Meetings - $15,000 Local consultant - $30,000 Travel- $12,500 Printing- $6,000 Translation - $6,000

43 PAGE 42 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Train staff from meteorological offices on using climate monitoring equipment and calibration, use of multiple sources of climate data for developing of climate change scenarios, impact scenarios and modelling. External training courses could be considered Twinning arrangement with partnering institutions can be considered, where representatives from the institutions will provide training in Nepal to 250 persons from 7 Thematic Working Groups and 2 cross-cutting Working groups over the course of the project on vulnerability and risk assessment and/or current vulnerability, training/orientation on prioritisation criteria. Additionally, focused training over the course of the project to be provided to support staff of the Department of Hydrology and Meteorology (40 persons) involved in the use of climate monitoring equipment, analysis of multiple sources of climate data and development and interpretation of climate scenarios and modelling. General training on climate scenarios and modelling will also be provided to staff involved in monitoring and evaluating effectiveness of adaptation interventions towards reduction of vulnerability in Nepal (under Outcome 4) Exposure visits for core group of sectoral ministries and NAP Team (max 10 persons) to countries such as Bangladesh, Thailand or Philippines National consultant to support planning High travel in case the courses are out of Nepal Local consultant: 75 $300/day Training courses, twinning arrangements at US$300,0007 Translation - $5,000 Travel $55,000 Meetings - $45,000 7 These figures are based on UN Environment s experiences from most recent projects in countries with similar outputs.

44 PAGE 43 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Update climate scenarios with new Lump sump contractual services with relevant Contractual service: data and information. agency 15, System for costbenefit analysis and appraisal of priority adaptation options established US $ 70, Develop a system to appraise individual adaptation options, including economic, ecosystem, and social costs and benefits for unintended impacts of adaptation measures in Nepal Define national criteria for prioritizing implementation based on development needs, climate vulnerability, risks, existing plans and valuation of ecosystem goods and services generated through study or research programme under Component 3. Component 3: Funding strategy for NAP process including its implementation Subcomponent/Out come 3: Government of Nepal endorses resource mobilization strategy for medium and long-term CCA investment including 3.1 An assessment of the costs of meeting integrated adaptation needs in Nepal US $ 64, Review reports produced on costing adaptation in Nepal including inter alia the Climate & Development Knowledge Network (CDKN 2013) Economic Impact Assessment of Climate Change in Key Sectors, and Asian Development Bank (ADB 2014) South Asia report and identify information gaps for a reliable estimation of costs for implementing climate change adaptation in the medium and long term. CBA of adaptation measures & multi-criteria analysis Local & international consultant CBA and finance experts & international CTA 1 x day workshop to gather ideas Local consultant to define criteria for prioritizing implementation 1 x day validation meeting Local consultant International consultant International: 40 Local: 55 $300/day Workshops - $9,500 Travel = $3,000 Workshops - $7000 Local consultant 30 International consultant 10 Local consultant - 75 International consultant 10 $500/day

45 PAGE 44 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes private sector engagement. US $ 789, Undertake a detailed economic study to fill the information gaps and estimate the costs of implementing the adaptation interventions included in the cross-cutting and thematic area policies, strategies and plans updated under Component days local consultant 5 separate 1-day meetings with each sector to gain information on the costs of adaptation interventions Local consultant 50 $300/day International consultant 20 $500/day Workshops - $10,000 Printing - $2, Strategy for GoN to effectively mobilise, utilise funding resources for adaptation and revise existing funding mechanisms. US $ 346, Identify potential new public, private, bilateral and multilateral sources of climate finance to address the adaptation needs assessed under Component days local consultant desk review international consultant public and private finance & adaptation expert Local consultant 50 $300/day International consultant 20 $500/day Workshops $ 7,500 Travel - $3, Develop an adaptation finance strategy to: i) access new identified sources of adaptation finance; ii) review and strengthen the structure of the existing funding institutions; and iii) support effective channelling of funds across sectors according to adaptation priorities identified in Component 1. 1 day consultation workshop 1 day validation workshop 50 days local consultant time 25 days international climate finance expert and international CTA to advice on how to strengthen structure of existing funding institutions to receive funds? Project development expert to provide training on development of bankable proposals for accessing funding. $15,000 for workshops Local consultant 90 $300/day International consultant 20 $500/day Travel - $3,000 Contractual Services project development experts $120K Translation - $5,000

46 PAGE 45 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Develop workshop training toolkits 1 week training workshop for about week training - and provide training to strengthen policymakers $20,000 the capacity of relevant government Develop training toolkits for adaptation finance Local consultant: 80 stakeholders to initiate the 100 days local consultant, 20 days $300/day implementation of the adaptation international consultant International consultant:10 finance strategy. Printing of toolkits for workshop $500/day Printing - $3,000 Travel - $6, Develop 2-3 GCF concepts and associated documents for accessing project preparation facility toward developing full funding proposal for the installation of a fully operational and sustainable climate information system in Nepal based on the gap analysis and needs assessment undertaken in Component 2, as well as for addressing other identified adaptation needs. International consultant (adaptation expert and international CTA) for development of concepts and associated documents Consultation workshops for data gathering = $5000 Travel National consultant to support proposal International consultant $25,000 Local consultant $33,000 Consultation workshops for data gathering = $10,000 Travel - $5, Study or research programmes to inform future investments in adaptation across sectors US $ 378, Conduct a study and research programme in collaboration with relevant organizations such as NCCKMC, NAST, TUIoST, ICT Association of Nepal, DoIT of the Ministry of Science and Technology and/or other government institutions to measure the effectiveness of past, present and future adaptation interventions to inform long-term adaptation planning. local consultant time to design research programme Research grants to MSc or BSc students in respective govt institutions working on adaptation Travel to sites where adaptation interventions have been conducted for research purposes as well as with govt delegation Meetings & workshops to present study and research programme, present and discuss findings of adaptation interventions and their applicability to inform long term planning Local consultant 150 $300/day International consultant 30 $500/day Travel $20,000 Workshops/meetings: $20,000 Research grants of $100,000

47 PAGE 46 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Identify previous and ongoing local consultant time to identify previous and Local consultant 45 adaptation projects including EbA ongoing adaptation projects, meeting with PMs $300/day and ecosystem restoration in Nepal, if needed International consultant 10 $500 building on the work of NAPAcatalysed projects, to be included in a Travel - $4,500 long-term research programme Map responsibilities of key institutions in implementing, maintaining, monitoring relevant projects to inform adaptation planning on the medium- and longterm, including strengthening of existing research team/steering committee Develop business plans and financial models, working closely with the private-sector, to demonstrate the financial value of ecosystem goods and services generated by EbA to local communities and different sectors. Institutional assessment: meetings with key institutions, involvement in relevant projects, desk review, write-up Amending TOR to strengthen existing research team International consultant w experience in valuation of ecosystem goods and services and development of financial models Local consultant as facilitator Travel & DSA Consultation workshops Local consultant 100 $300/day Workshops (validation, meetings) - $10,000 International consultant 10 $500/day International consultant - 30 $500/day Travel - $10,000 Meetings/workshops - $11,000 Local consultant 40 $300/day Translation of plans - $5,000

48 PAGE 47 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Design and implement a system for Develop knowledge dissemination system Local consultant 80 the dissemination of knowledge including: $300/day = generated through the study and Meetings $16,000 research programme to a wide range Web portal Meetings to disseminate knowledge and of public institutions and sectors, and Production of policy briefs & other material to iteratively integrated into policies disseminate results during project lifespan raise awareness and strategies through the periodic review process established in Local consultant $15,000 Component 1. This will include the Contractual services dissemination of initial results during set up web portal - the project lifespan. $15K Printing costs $3,000 Component 4: Monitoring, reviewing and reporting on the NAP process in Nepal

49 PAGE 48 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Subcomponent/Out reviewing system system for the NAP process in Nepal 1 day validation meeting meetings to take 4.1 A monitoring and Develop a monitoring and reviewing Consultation meetings with different sectors Consultations & come 4: established for the NAP including: i) milestones; ii) Take stock of baseline situation with regards to stock of baseline: National and process. performance indicators at national current national level sectoral M&E in Nepal $30,000 Sectoral and local levels; iii) targets on the what currently exists and how can this be built o Validation Planning Unit of US $ 147,000 short-, medium- and long-term; iv) on? Investigate whether there are any plans for meeting: the key outputs; v) monitoring and reviewing Ministries are tools and templates; vi) assessment a national level Vulnerability Index to be $5,000 capable of planning; and vii) and follow-up developed. Local consultant: reviewing, actions. Capacity assessment for staff on how to use 120 monitoring and M&E $300/day communicating International consultant to support results of the NAP process. monitoring & review system for US $ 510,500 M&E 20 $500/day IT support to develop a digitized M&E portal - $20,000 Travel - $5,000 Printing - $3, Institutionalize the monitoring and reviewing system for the NAP process by building on the current national M&E system of Nepal. 1 day validation workshop Facilitator 3 days Meetings & workshops = $15,000 Local consultants - $22,500

50 PAGE 49 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes 4.2 Technical training of Develop guidelines and tools for Develop guidelines and toolkits: local consultant Local consultant: national and local technical staff of relevant 3 x day validation workshop 120 government government institutions including Printing of material $300/day representatives and MoPE, MoFSC, NPC, and other International consultant 20 days stakeholders to thematic lead ministries and implement the departments to facilitate data $500/day monitoring and reviewing collection, analysis and dissemination Meeting/workshop: system for the NAP of the results to monitor and review the NAP process over the long term. US $ 197,500 $10,000 Printing - $4,000 Travel $3, Train technical staff of relevant government institutions including MoPE, MoFSC, NPC, and other thematic lead ministries and departments on the use of these guidelines and tools to monitor and review the NAP process following the system developed in Component Raise awareness of national and local government stakeholders including decision-makers, and development region or province-, district- and sector-level officers on the monitoring and reviewing system developed in Component 4, and provide training to meet the performance targets. Trainer: 5 days to design and 5 days to deliver training Meeting package for 5 day workshop Promotional material to explain M&E system targeted different audiences e.g. national vs local government stakeholders 5 day training and awareness raising Printing of materials Training workshop - $25,000 Travel - $8,000 Printing - $5,000 Local consultant: 50 $300/day IC: 11 $500/day Local consultant: 120 $300/day Meetings - $25,000 Travel to districts- $7,000 Printing - $8,000

51 US $ 166,000 PAGE 50 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes 4.3 NAP progress reports Document and analyse the successes, Meetings with PMs and policymakers 75 and communication failures and lessons learned from the local consultant & meetings $300/day material on NAP formulation, implementation, Meetings - formulation, funding and monitoring of the NAP $15,000 implementation, funding process and previous relevant Printing - $5,000 and monitoring to learn initiatives aligned with the NAP from the NAP process in process in Nepal. Nepal Disseminate information on the successes, failures and lessons learned related to the NAP process in Nepal on national portals, NAP portals and other relevant networks including NAP GSPs and UNFCCC platforms Implement a system for the documentation and analysis of the NAP process to be conducted on a regular basis and beyond the project lifespan, and the results to be: i) disseminated to relevant national stakeholders; ii) integrated into the monitoring and reviewing system for the NAP process; and iii) disseminated on relevant portals Produce and disseminate video clips on the implementation of the NAP process in Nepal. Develop communication products: 5 days international consultant (graphics, design, language) and 25 days local consultant Design a system of online documentation, newsletter, designate the funding source for ensuring this past project implementation LC: 25 $300/day IC: 5 $500/day Contractual services - $12,000 Meetings - $13,000 Local consultant - $18,000 Contract graphic design agency $15,000 for contractual services

52 PAGE 51 OF 65 ver. 16 August READINESS AND PREPARATORY SUPPORT Outcome Indicative Outputs Indicative activities Explanation of different cost categories Cost categories notes Present the progress of the NAP Travel for 1 rep from government to travel to 6 Travel $30,000 process in Nepal and during climate international events (SBIs or COPs) Printing costs - change related international Arrange debriefing about NAP discussion and $9,000 meetings. decisions at international level Translation - $9,000 Meeting $7,500 Mid-point and Terminal Evaluation Mid-term review consultant Terminal Evaluation consultant Consultant/Firm Consultant/Firm US$ 18,000 US$ 25,000 US $ 43,000 National Level Project Management Unit (PMU) Cost US $ 278,500 Project coordinator (full-time) M&E and gender officer Finance and admin officer General Support Staff/Office Assistant Office supplies & IT equipment Travel PSC meetings Printing costs US$ 105,000 US$ 66,000 US$ 51,000 US$ 36,000 US$ 10,000 US$ 3,000 US$ 3,000 US$ 4,500

53 PAGE 52 OF 65 ver. 16 August ANNEX II Additional reasoning and documentation a. Paradigm shift and replication potential The proposed paradigm shift in this proposal is to change the behaviour and mind-set of the Nepalese society and decision-makers in the government such that climate change adaptation becomes a part of Nepal s development strategy or plan. In Nepal, NAP is considered as a comprehensive process to mainstream adaptation into development planning and implementation. The NAP has also an objective of facilitating the integration of CCA, in a coherent manner, into relevant new and existing policies, programmes and activities, in particular development planning processes and strategies, within all relevant sectors and at different levels. Nepal's NAP has planned to mainstream CCA into several sectors such as agriculture, food security (nutrition), forests, biodiversity, water resources, energy, health, sanitation, urban settlements, infrastructure, tourism and natural and cultural heritage and climate-induced disasters. The livelihood and governance, and gender and social inclusion, two cross-cutting areas, will also attempt to integrate CCA in different thematic areas, and find ways as stand-alone for adaptation integration. The NAP process will also build adaptive capacity and resilience. Hence, this project ensures mainstreaming of adaptation into all climate-related and sensitive development sectors, effectively making it a norm rather than an afterthought. The NAP will furthermore consist of prioritized adaptation interventions in line with Nepal s development plans that aim to build resilience and reduce vulnerability of the Nepalese people and promote greater investment from both the traditional and nontraditional investors. b. Contribution to creation of an enabling environment As described in the proposal above, Nepal has decided to formulate the NAP through working group approach (7 thematic and 2 cross-cutting working groups), building on the TWGs that were created during formulation and implementation of NAPAs. The government has decided to ensure multi-stakeholder participation in these working groups. In order to ensure better representation and approach of 'leaving no one behind', stakeholders are preliminary grouped into service providers, beneficiaries, enablers and advocates. Each working group will include representation, as appropriate, from relevant governmental institutions, association of local bodies, professional societies, federations and networks, women and youth, indigenous communities, media, nongovernmental organizations, and private sector. Development partners, present in Nepal, will be communicated at appropriate time to seek their inputs during the NAP process. The UNFCCC focal point has also planned to inform and communicate the progress made on NAP process (of this project) to the relevant constitutional bodies, and parliamentary committees to ensure wider participation and seek political guidance to make the NAP 'a process owned by all Nepali people' to ensure implementation of NAP-prioritised adaptation actions in the medium- and long-term. The forest and biodiversity working group for example has good representation from NGOs, federations and networks, and tourism working group has more private sector representation than other sectors. Hence, working groups will ensure effective participation of appropriate private and public sectors during adaptation planning and its implementation. c. Contribution to regulatory framework and policies As mentioned above, Nepal has embarked on internalizing adaptation planning after NAPA preparation in September The NAPA resulted to the establishment of Climate Change Section in 2008 and Climate Change Management Division in the Ministry of Population and Environment, and Climate Change Coordination Committee at political level, and MCCICC as a coordinating body at the functional level. This also contributed to establish Environmental Impact Adaptation Section in the Department of Environment to expedite implementation of adaptation actions/options.

54 PAGE 53 OF 65 ver. 16 August The NAPA also contributed to prepare and implement Climate Change Policy in 2011 which promotes adaptation and low carbon economic development activities in Nepal. With this in perspective, this project is expected to contribute to revisit Climate Change Policy and other development policies by the end of NAP process. This project will directly contribute to national policies and programmes to make them climate-friendly or adaptation-responsive. Hence, this project will have multi-fold opportunities to influence and strengthen national and local adaptation policies and programmes during NAP formulation and implementation of NAP-prioritised adaptation options. d. Environmental, social and economic co-benefits, including gender-sensitive development impact Nepal's NAP process addresses all social and economic development sectors to make them climate-resilient and adaptation-responsive. It approaches to adopt 'development first' with integration of adaptation actions and considers 'adaptation as survival strategy for poor and climate vulnerable communities'. Hence, adaptation options will supplement the development efforts aimed at reducing poverty and building resilience. Similarly, NAP process accords high priority for inclusiveness to accommodate the concerns of disadvantaged communities, indigenous and traditional groups, disables, women, youth etc. It ensures gender-sensitive approach during NAP formulation, and will adopt a policy to ensure implementation of 'gender-responsive adaptation options'. It is already practiced in implementation of NAPA-prioritised adaptation projects and it is possible. A separate crosscutting working group on Gender and Social Inclusion will perform this task. e. Vulnerability of country and beneficiary groups Nepal is most climate vulnerable mountainous and land-locked LDC. Nepal is experiencing adverse effects of climate change in key economic and social sectors as production is declining due to increased frequency of climate-induced disasters such as GLOFs, landslides and floods. The UNFCCC has also considered LDCs the most climate vulnerable countries. About 21 percent of the total population is officially categorized as the 'poor people' and climate change has directly affected them and their livelihoods. Hence, there is a high level of exposure to climate risks. Analysis of 30 years of observed temperature of Nepal has shown maximum temperature increasing at alarming rate. The average warming in annual temperature between 1977 and 2000 was C. The warming is found more pronounced in higher altitude with an annual increase of C during the dry season. Precipitation projections show no change in western Nepal and up to 5-10 percent increase in eastern Nepal for winter season. During the summer months, precipitations are projected to increase for the whole country in the range of 15 to 20 percent. Climate model projections for Nepal indicate a rise in annual mean temperature by an average of 1.2 C by 2030, 1.7 C by 2050 and 3 C by 2100 compared to a pre-2000 baseline. As a result, agro-ecological zones will shift upwards altitudinally, as is already being experienced in Nepal. Currently, rainfall patterns have become erratic and a decreasing annual trend has been noted primarily in the mid-western region during the critical agricultural period of June-August. Conversely, increasing intensity of summer monsoon rain events are causing flash floods, erosion and landslides. The rapid retreat of glaciers is leading to the formation of new glacial lakes with potential for catastrophic outbursts. Shifts in precipitation patterns, longer droughts, frequent severe floods and deficit in the recharge of groundwater are limiting production and declining productivity of economic sectors and infrastructures further vulnerable to climate change. In a nutshell, over 80 percent of the total population is exposed to climate risk and vulnerable to climate change impacts.