Meeting of the PPCR Sub-Committee. January 27-28, Washington, D.C.

Transcription

1 PPCR/SC.2/4 January 16, 2009 Meeting of the PPCR Sub-Committee Washington, D.C. January 27-28, 2009 PROGRAMMING DESIGN AND FINANCING FOR PPCR

2 2nd PPCR-SC Meeting, January 27/28th, Washington DC Programming Design and Financing Pilot Program for Climate Resilience

3 4. Overall model of the PPCR 3. Next Steps Key tasks Criteria for PPCR finance Cooperation with others/link with other programs KM and learning PPCR objectives and expected outcomes 2. Overview 1. Outline

4 PPCR-SC requested the Secretariat to draft three papers: 1. Programming Design and financing of the PPCR 2. Criteria for financing modalities 3. Regional Programs and how they will be operationalized Internal discussion across agencies indicates that more discussion and input from the PPCR-SC would be productive to align views before finalizing details Consideration of the Expert Group Report will also be useful before finalizing details, e.g. the selection of the regional pilots will simplify drafting guidance for operationalizing the regional PPCR pilots y y 1. Overview

5 Beyond business as usual a change in approach: Upstream climate resilience in development planning, core development policies and strategies Programmatic approach(es) with a focus on long-term needs (not project by project decisions) Cross-sectoral dialogue, common strategic vision and agreed approach for integration of climate resilience Led by relevant ministry with such mandate (for cross-sectoral planning and budgeting) Alignment of development partners behind this strategic vision and approach Principles : Country-led and country-specific there are no blue prints Build on NAPAs and other relevant country studies, pilots, and strategies Strategically aligned with the Adaptation Fund and other funding Purpose and Objectives: Pilot and demonstrate ways to integrate climate risk and resilience into development planning Provide Incentives for scaled-up and transformational change in integrating consideration of climate resilience in national development planning consistent with poverty reduction and sustainable development goals Complement, build upon, and leverage through other ongoing activities Enable learning-by-doing and sharing of lessons 2. PPCR objectives, and outcomes

6 Planning work (ditto) Identify and align government entities (and development partners) around a strategic vision and agreed approach to integrate climate resilience into development Outline a programmatic investment program with a range of components Build capacity incl. institutional strengthening and cross-sector coordination Identify specific action in sectors and/or across sectors in the country (e.g. could be countrywide, in a region, or sub-region of specific vulnerability) KM & learning tasks (across and within pilots, as well as wider international community). what does sequencing look like? ---Æ (it all depends on country circumstances) Analytical work (building on existing, do not duplicate) Major tasks at country level: 3. Overall model" of PPCR: Major Tasks

7 Time 1st Qu. 2nd Time line 3rd 4th Formulate investment program* Year 2 Year 3 Year 6 (continues throughout) Year 5 (continues, incl. feedback loops) Year 4 * The timing of formulation of the investment program will vary by pilot; it could be right after the joint mission or may require a longer time for dialogue. ( no blue print ) KM, Lessons learning, Capture results Increase climate resilience of e.g. agriculture sector investments, or coastal zones, etc. (e.g. may start later) Initiate specific investments; e.g. a supplement to a water resources sector program Revise policies/strategies (e.g. PRSC, sector policy/strategy ) Capacity building e.g. institutional strengthening, improved coordination across sectors Knowledge & Awareness Planning Analysis Tasks (examples.) Tasks (end of most PPCR pilot implementation )

8 Develop a programmatic investment program with a range of components; prepare short descriptions of each of the components (incl. notional budget) (b) Take stock of country situation (progress in considering climate resilience in their development planning & investments; what are other ongoing & planned programs?, etc.) Work in collaboration with government sectors and development partners & other stakeholders Assess readiness to accelerate with PPCR support Define needs to formulate the investment program (analytics, consultations, essential immediate capacity building, and other processes) Develop proposal on: scope, estimated effort and time to carry out identified initial tasks and submit to PPCR-SC Initiating steps within the country: Joint mission: (note: some of these components may be proposed for PPCR support/co-finance; others may be financed and carried out by other development partners, such as UNDP and others) Identify and align government entities (and development partners) around a strategic vision and agreed approach to integration of climate resilience into development (a) Goal: Initial tasks - (.. left columns of previous chart): PPCR Initial Tasks

9 Notional allocation of PPCR fund envelope for specific investment program Implement components of this programmatic approach leading to integration of climate resilience in core development plans, budgets, and investments Present programmatic approach and associate investment program to PPCR-SC <<expect to take 3 24 months>> Investment program implementation Initial tasks: Strategic vision and agreed programmatic approach/steps Initial towards more climate resilient development path; Develop investment program tasks to support this approach that consists of both TA and other investments Proposal/budget to carry out initial tasks Joint Mission (determine scope of initial tasks) Country Selection EOI Key Steps and PPCR-SC decision points

10 Illustrative country examples

11 Low GDP/among IDA countries & high population density; Highly affected by inland flooding and vulnerable to sea level rise, threatening the livelihood base for a substantial percentage of its people. Income is mostly dependent on climate sensitive sectors Government has recognized that an increase in extreme flood events and SLR will have a major impact on the welfare of the country. There is an excellent analytical base and information base (aided by the fact that the IPCC has recognized the sub-region as highly vulnerable). Government already invested for years in improved hydromet services, flood early warning systems, and institutional and physical risk reduction measures. Country has prepared a good NAPA - based on a broad stakeholder process and a national adaptation strategy and action plan, outlining actions in a range of areas/themes. Background: Already much progress: a coordinated, strategic approach (e.g. a climate change or adaptation strategy) exists or is at an advanced state Country A (1)

12 Joint mission led by government - assesses progress on the ground. It is evident that the action plan is based on sound analytics and a comprehensive process. Yet, within the discussions, it becomes clear that the current action plan was not able to prioritize actions at the point of formulation, and hence does not provide enough focus. Fragmentation and resource limitations may hamper an efficient way to go forward. PPCR engagement aids in prioritizing interventions of action items of the existing plan, identifies those that have high level of impact and/or include promising innovation, which are seen as key candidates for proposed support from PPCR. In addition, sequencing the tasks in the existing plan will further aid effective implementation and attract support by other development partners for components that are not covered by the PPCR. Given the existing broad and active engagement of a range of stakeholders, the country feels very ready to take these extra steps within the next few months. PPCR initial tasks: Country A (2)

13 PPCR engagement leads to scaled-up investments in areas with highest development benefit through increased climate resilience. PPCR provides opportunities e.g. to learn from innovative approaches that are expected to have high impacts, while also being very cost effective (example: by combining the existing engineered coastal protection approaches with nature based adaptation through restoration of vast coastal mangrove areas). The PPCR process aids to extract lessons learned from the already extensive engagement in A towards climate resilience. The PPCR learning process will also actively engage a range of stakeholders using a menu of participatory tools in assessing impacts of interventions on people livelihoods & mechanism to disseminate lessons learned. This will aid to transfer the large range of experiences in country A to other countries. Outcomes of PPCR investments and engagement process: Country A (3)

14 Increase coastal protection and implement innovative approaches in nature based adaptation. Document work done and lessons learned & share with other pilots, capture results Periodically update policies/strategies in terms of approach to climate resilience Scale-up specific investments with high impact Capacity building Knowledge & Awareness Planning Analysis Tasks Tasks Time 1st Qu. 2nd Time line 3rd 4th Year 2 Year 3 Country A (4) Year 6 (continues throughout) Year 5 (continues, incl. feedback loops) Year 4 (end of PPCR pilot implementation ) Formulate investment program*

15 Among 20 lowest income countries based on the HDR; highly vulnerable to climate variability; climate change will greatly increase the frequency and severity of floods and droughts. In recent years, avg. yearly rainfall has decreased in parts of the country leading to severe power shortages, as the country is mainly dependent on hydropower. Country recently completed its NAPA. Process was mainly led by the Ministry of Environment, which is very active, yet analytical work had to rely mainly on outside consultants due to lack of capacities. NAPA process greatly increased the dialogue and awareness and provided an opportunity to identify a number of immediate actions. Ministries of finance and planning are aware of the work and recognize need for additional and more comprehensive action, yet the government s focus for now is on immediate needs in important areas, such as to attract private and other finance to rapidly expand energy sources, expand agricultural areas, and invest in urgent needs in the education sector. Background: The country has undertaken some work, but institutional capacities and resource constraints limit further action Country B (1)

16 Joint mission led by government and resulting engagement of a range of players initiating a platform for greater dialogue among government agencies, civil society, and development partners; aids in consolidating some good work that has been done in various dispersed small scale projects across the country. Support further analytical work, incl.engagement of the main university in the analytical process; plus training of key staff in the government. Yet, much more work is needed. Launch a number of essential consultancy tasks (e.g. improved flood plain and flood hazard mapping; a review of the present investment plans in the hydropower sector to identify a greater range of viable mixes of power options; etc.) Information generated aids to identify a range of key adaptation actions; and a process of prioritization. The NAPA, national communications, and range of other activities are building blocks in this process. Process of prioritization and dialogue across sectors, engaging civil society groups, the country s business council, and communities in highly vulnerable areas is taking around 1.5 years. PPCR initial tasks: Country B (2)

17 Key components: strengthening of institutional processes and structures for disaster risk management across relevant agencies; enhancing flood forecasting systems and community based risk reduction measures, and revising B s key sector policies and investment plans (e.g. in energy, agriculture and other water related infrastructure). In addition, scaling-up of successful previous efforts done through a large community based program is expected to increase food security by shifting cropping patterns and varieties in response to changed rainfall patterns. Greater crop yields will enable the start-up of food processing facilities for export to neighboring countries. PPCR investment program and outcomes: Country B (3)

18 Planning (supported by a number of consultancies) Knowledge & Awareness large component throughout; participatory planning work supported Capacity building (incl. coop. mechanisms, training, institutional strengthening, improved regulations, etc.) Revise key sector policies and investment plans (incl.. energy, agriculture, water) & draft a DRR strategy for B Invest in flood forecasting, improved coord. in disaster response, & scale-up community based program in climate resilient agricult. Invite intl. experience; exchange visit; capture lessons& results Analysis Tasks Tasks Time 1st Qu. 2nd Time line 3rd 4th Year 2 Year 3 Country B (4) Year 4 Year 6 (continues, incl. feedback loops) (continues throughout) Year 5 (end of PPCR pilot implementation ) Formulate investment program*

19 Over 80 percent of the funding required for adaptation and mitigation efforts will be provided by the private sector (UNFCCC) An enabling environment that will respond to private sector s specific needs and potentials is essential Need for coordination between the public and private sector s needs, resources and capabilities and optimization of respective actions for maximum country resilience Need for coordination of actions inside the private sector, information sharing and dissemination Formation of such private sector oriented climate risk management activities and supporting institutional structures (incl. e.g. specific facilities) could be supported through the initial task within the PPCR pilots and serve as a platform for the implementation of specific components of the investment program PPCR and Engagement with the Private Sector

20 Investment plan will need to demonstrate how and to what extend the suggested investments will lead to impact vis-à-vis the country/countries vision? (Details will be covered in the Results Framework paper) PPCR-SC assessment will be supported by a review report prepared by the MDBs; the MDBs will invite outside reviewers in this effort. (assessment of both the underlying analysis and the stakeholder process followed) Assessment of the proposed actions will need to be made in the context of the countries vision/goals (as stated by the pilot country) Suggest the programming paper will outline a process (with guiding questions) and key criteria that the PPCR-SC will use to assess the fit of the proposed investment program for PPCR finance. How to assess the suggested investment program? Criteria for finance

21 Programmatic approach with a view on long-term actions, planning processes, and investment decisions Components (both): (i) Technical assistance (TA) and cooperation e.g. revision of core development strategies; support regulatory change; strengthened institutions as well as improved cross-sectoral coordination; knowledge and awareness programs); and (ii) Contribute to climate resilience of key (physical) investments Resources should go towards actions that are (i) an outcome of a comprehensive planning process and (ii) consistent with the link between development and climate change identified for that country. Complementarity to ongoing MDB programs/country support strategies to deliver greater impact & could provide additional resources Cooperation with partners (e.g. UNDP and bilateral donors may carry out much of the TA type work and/or other components through their programs) Investment Program

22 Financing for preparation of projects and programs (i.e. components of the overall investment program) grants (ii) - grants and/or highly concessional loans - pilot may choose to ONLY access grant funds (may limit total funds) (iii) Financing for implementation of the investment program components Financing of initial tasks, including preparation of an investment program - grants (i) Financing modalities (1)

23 The overriding goal is to support the programmatic approach outlined for the specific pilot - Details may be left to the specifics of the pilot and the MDBs These range from development policy lending/budget support to investment lending (incl. sector programs and specific investment support for a program and/or components under the outlined program) A range of financing modalities is available across the MDBs to support program based approaches Implementation of the investment program components: Financing modalities (2)

24 (2) (1) Continuously capture lessons learned all along Capturing progress and strengthen indicators for progress in terms of climate resilience through a variety of means Exchange of experience/visits across related PPCR pilots Develop a pilot specific training-of-trainers program and other relevant professional development programs targeting government staff, NGOs, others Pilot specific support desk <other - tbd> Need to ensure that EACH pilot program includes financing for knowledge management, e.g. The global support program will be designed with a view to building on and/or collaborating with other ongoing activities and learning platforms. Source book (living document); incl. preparation of technical papers (as needed) Annual meetings among pilots Sharing of lessons learned and understanding e.g. through peer review across PPCR pilots and regional workshops and training Expert help desk Training-of-Trainer program Need for a global support program Knowledge Management & Learning

25 Working group of the MDB committee Circulate for round of comments by March 10 Written comments within 14 days of receiving the draft papers: 24 March Revise Bring back to the PPCR-SC for approval in May Working group (chaired by Canada) Present to PPCR-SC for approval in May Results Framework paper Based on discussion of these main points: elaborate the programming design and financing paper and regional FW paper 4. Next Steps