Introduction to Climate

Finance
Economics of Climate Change Adaptation Training Programme
Mari Tomova mari.tomova@undp.org, UNDP
 Agenda
• Introduction to the ECCA Programme
• Climate Finance Landscape
• New and Additional Finance
• Mechanics of Climate Finance
• Visualizing Global Climate Finance
• Making Sense of Global Financing Flows
• Institutional and Finance Mapping (group discussion) & Knowledge check
• Take-home Messages
 Why Invest in Adaptation?

 Climate change can no longer be treated only as an environmental issue, and it should not
be seen as an optional, local/national or a regional issue.
 Adapting from the ground up, engaging both private and public stakeholders from the micro
level up as an agent of change.
 Understanding of the process of assigning economic costs for adaptation projects is an
important step in adaptation prioritization.
 In the face of limited public finance, it is essential to ensure that finance is catalysed from
other sources. Combining and sequencing public domestic with public international, as well
as private finance is also important. This calls for different ways of looking at a problem and
finding solutions.
 It is critical to make sure that countries access and make use of climate finance.
 Why Economics of Adaptation?
• Being able to demonstrate and evaluate the costs and benefits of adaptation options, and
more broadly the impact of adaptation interventions, is crucial, but also necessary
• On a national level, countries need to think about the potential costs climate change will have
on local economies, and design plans and budgets to invest in long-term adaptation options.
• This is especially true for agriculture, livestock and fisheries, as these industries are all heavily
dependent on weather and climate conditions.
• With limits to available financial resources, especially in least developed and developing
countries, political leaders will need to prioritize between adaptation options. This means
using the right economic tools to maximize benefits, while reducing costs.
• A more rigorous understanding of evaluating the costs and benefits of adaptation has become
necessary. Quantitative information speaks to decision makers and donors, and help both for
planning and budgeting for adaptation and leveraging funds to implement actions.
• Finally, cost-benefit analyses provides the means of appraising and comparing the impacts of
proposed project interventions and policies – even when benefits and costs occur over long
periods of time. CBA also provide a framework to identify, quantify, and if possible, monetize
all the impacts a project or policy can have on local economies.
 The ECCA Programme

• Launched in 2012, a three-year-programme, comprised of a series of

technical training sessions
• Aimed to identify gaps in capacity development needs in an area
that is critical for helping countries formulate National Adaptation
Plans (NAP) and access climate finance.
• Partnership between UNDP, USAID, ADB, Yale University, the Global
Water Partnership and AIT
 Climate Finance Landscape
In the lead up to the COP21 meeting in Paris in late 2015, Governments and agencies
pledged new climate finance. ODI estimated that the public finance offered by developed
countries would result in at least $18.8 billion per year by 2020. In addition, Japan aims to
mobilize $10 billion per year in public and private finance by 2020. New pledges to climate
funds, including the Adaptation Fund (AF), Least Developed Countries Fund, and the Green
Climate Fund (GCF), added up to more than $1.5 billion (including pledges of $1 million from
the city of Paris, and funding from the state government of Quebec).
All multilateral development banks have also pledged to scale up climate finance in
developing countries substantially by 2020, to more than $30 billion per year.
 New and Additional Finance
As noted in the UNFCCC treaty, “the developed country Parties...shall provide new and
additional financial resources to meet the agreed full costs incurred by developing
country Parties in complying with their obligations....They shall also provide such
financial resources, including the transfer of technology, needed by the developing
country Parties to meet the agreed full incremental costs of implementing measures
that are covered by [this treaty]....The implementation of these commitments shall take
into account the need for adequacy and predictability in the flow of funds and the
importance of appropriate burden sharing among the developed country Parties .
Mechanics of Climate Finance
Visualizing Global Climate Finance
Making Sense of Global Climate
Financing Flows
 Institutional and Finance
Mapping
• What sources of funding for CCA are available in your country that you are aware of?

• What agencies are involved in managing these funds and the associated projects?

• What is the pipeline: for future CCA projects?

• Is your government currently seeking accreditation for a climate fund?

Note: Please divide into groups of 4-5 and after 15 min, present the results of your discussion
 Knowledge Check
• Which of the following comprises the largest proportion of global
climate finance flows?

A. Multilateral grants
B. Multilateral, concessional Loans
C. Private sector investments in energy efficiency and clean energy
D. Private sector market rate loans to governments
E. Bilateral grants and loans
Financiers
 Global Environment Facility
(GEF): Overview
A. Implementing partners

B. Serves as financial mechanism for several

organizations

C. Seeks integrated approaches to climate

change

D. Funds: Currently US$3 billion for climate

finance

E. Manages SCCF & LDCF

 SCCF and LDCF
SCCF – Established in 2001, open to all developing country parties,
supports adaptation and technology transfer, cumulative pledges
US$348 million, meets less than 30% of demand for priority projects,
funded 57 CCA projects (US$241 million), mostly in agriculture and
water resources management; World Bank is main GEF agency.

LDCF – most commonly used program by UNDP (49%); cumulative

pledges of US$915 million, demand exceeds funds available; also
supports NAPA preparation; 158 projects (US$864 million), mostly for
natural resource management and agriculture (only 5% for
infrastructure).
 Take-home Messages
• Global availability of resources is not the issue, it is how these are allocated to solving the world’s
problems, including climate change
• Most CCA activities will need to be funded by sources within the country—external sources will
help, but will never be sufficient
• Local governments have access to a wide range of financial sources, such as municipal bonds, land
taxes, fees and charges which can be used for CCA projects
• Agencies that support quality CCA interventions need proactive staff
• Any messages from your home country?
Introduction to Proposal
Development
Designing a Logic Framework

Economics of Climate Change Adaptation Training Programme

Mari Tomova mari.tomova@undp.org, UNDP
Agenda
• The Project Cycle
• Up Front Considerations
• Steps in Project Preparation
• Step 1 – Brainstorming a Problem Tree
• Step 2– Develop an Objective Tree
• Step 3 - Define Additionality
• Step 4 – Results/Logic Framework and how to read it
• Step 5 – Define Implementation Arrangements
• Examples from the GCF
 Recap
Steps we need to take prior to project ideation/project design

• Understand directions and trends in global adaptation finance

• Describe why your project is an appropriate use of public/private funds
• Distinguish which parts of a project are most appropriate for public finance, and which
parts are more matched to public-private partnerships and other sources of financing
• Understand the procedures in your country for accessing funds for adaptation
• Understand the eligibility criteria, priorities, and evaluation criteria of relevant financiers
• Selection of the most relevant and appropriate financier for the given project
 Quick Discussion
• What are the key development challenges in your
country?

• What progress has been made towards overcoming

these challenges?

• What implications does climate change have for

development progress in your country?
 The Project Cycle
Pre-project discussion &
Policy & activities
Strategy Project Identification
Pre-feasibility

Implement Project Feasibility Study/

Draft project

ation
RESULTS
Design document

Project implementation
Monitoring & Evaluation

Appraisal/
Approval
Final Project document
 Up Front Considerations
• Identify the most relevant financing channels
-Climate Funds Inventory (G20), containing information about ~ 90 funds
-UNCCC Funding for Adaptation Interface

• Support capacity development at the organizational level

-Using national coordinating institutions and NDA to ensure country ownership and coordination among relevant actors

• Aligning with NAP strategies and frameworks

-Using UNFCCC procedures associated with NAPAs and NAPs

• Support and facilitate project and/or program preparation

• Enhance domestic enabling environments to attract private finance
• Foster lesson sharing and peer learning
 Steps in Project Preparation
Step 1 – Brainstorm P o le T ee with full participation
Step 2 – Develop O je ti es T ee with full participation
Step 3 – Define which aspects are additio al due to CC threats
Step 4 – Develop the Results Framework or Logframe (with examples)
Step 5 – Describe Institutional implementation arrangements, including procurement
Step 6 – Risk Management & Safeguards (Day 2)
 Step 1: Brainstorming a
1. Defi e ore pro le Problem Tree
• Displacement due to flooding
• Water/sanitation deficiencies
2. Identify direct causes and direct effects
• Heavy rains
• Overburdened infrastructure
• Settlement in flood prone areas
• Obstructed drains
• Increased vulnerability
• Damage to infrastructure
3. Identify secondary (driving) causes
• Rural-urban migration
• Lack of planning
• No responsible lead agency
 Step 1: Brainstorming a
Problem Tree
• Key principles for developing a theory of change:
• It should be developed consultatively to reflect the understanding of all
relevant stakeholders;
• It should be grounded in, tested with, and revised based on robust evidence at
all stages;
• It should support continuous learning and improvement from programme
design to closure.
Step 1: Brainstorming a
Problem Tree
 Step 2: Develop an
Objectives Tree
1. Now, reverse negative statements from the problem tree into positive ones:
• Imagine that the problem has already been solved!
• Redu ed fisheries apture  sustai ed fisheries apture

2. Modif the auses so the lead to the desi ed effe ts

• Habitat changed  ha itat restored
• Thus, root causes become root solutions
• Convert your problem tree to an objectives tree
Step 2: Develop an
Objectives Tree
Development
challenge Persistent poverty and high levels of inequality and exclusion

Lack of steady income

Low skills and
Immediate
education
Poor health B
Causes

A Low coverage,
relevance and
quality of econ.
Lack of access to Low public Skewed access to natural services
infrastructure investment in basic resources
services
Underlying
Causes

Elite capture of
Recurrent social and public institutions Feudal social structures
Structural/Root political conflict
Causes
Growth with
Longstanding distortions
discriminatory practices
 Step 2: Develop an
Objectives Tree
Immediate causes are the proximate or nearest causes of a development challenge. They have the closest causal relationship to
the p o le a d a e the ost di e t e pla atio fo h it e ists. Fo e a ple, if the de elop e t halle ge is high le els of
ultidi e sio al po e t a d dep i atio , the the i ediate auses ight e idesp ead lo age e plo e t i the u a
i fo al se to , u al e plo e t o e t ated i su siste e o lo -p odu ti it ag i ultu e, high le els of o idit /ill ess
etc.

Underlying causes relate to choices made by society that explain the immediate causes of the development challenge. They
relate mostly to policies, laws, regulations; performance of state and non-state institutions; accessibility, affordability and quality
of economic, social and rule of law and justice services; and availability, prioritisation/allocation and utilisation of public,
household a d othe esou es. These ould i lude poo ualit a d a essi ilit of health a d edu atio se i es, lo udget
allo atio s fo so ial p ote tio , s a it of edit tailo ed to i o a d s all e te p ises et .

Root causes are pervasive and long-standing development constraints, often structural in nature, having to do with history,
deeply embedded social and political systems, cultural factors, geography, climate and demography that are transmitted through
attitudes, behaviours and actions at different levels, both tangibly in policy, legislation and the way public and private institutions
work, but also intangibly through discrimination and exclusion.
 Step 3: Define Additionality
• Additionality refers to additional impacts or effects of climate change
above and beyond a baseline, broken down into two elements:
• The additional risks from climate change
• The additional cost to incorporate CCAR into a proposed project
design.
• The difference between the ith climate change and ithout it is
the additio al part to be financed.
• For example, when discussing carbon credits (for climate change
mitigation purposes), the term additio alit means that the carbon
credits lead to additional reductions of carbon dioxide emissions. In
other words, it refers to the et positive change
 Step 4: Results Framework/LogFrame
All projects need to clearly and
concisely explain what they intend to
accomplish with the funds solicited:
• Outcome & Intermediate Indicators,
Targets, and Deadlines of the PDO
• I puts & a ti ities at ase of hai of
ausalit i Results F a e o k
• Describe how these will lead to
expected outputs and outcomes --
the ea s hi h the PDO ill
be achieved.
 Step 4: Results Framework/LogFrame
• A tool for planning and managing projects

• Systematically presents information about the key components

• Well designed, described objectively, clearly structured, easy to evaluate

• Does not show every detail; rather the key factors only

A way of thinking about the structure of your project that is consistent with financier
requirements and evaluation procedures
How to Read a Logic Framework

Your planned work Your intended results

Step 4: GCF Results Management
Framework Part 1
Step 4: GCF Results Management
Framework Part 2
Few Examples
Few Examples
 Step 5: Implementation Arrangements

• How will the project be implemented? (DIM vs. NIM modality)

• Project Management Structure and Organigram
• Engagement of CSOs/NGOs
• Private Sector Engagement
• Integration of gender considerations
 Step 5: Implementation Arrangements

• How will the project be implemented? (DIM vs. NIM modality)

• Project Management Structure and Organigram
• Engagement of CSOs/NGOs
• Private Sector Engagement
• Integration of gender considerations
Few Examples
 Recap
• Understand the basic principles of project frameworks that are
used in adaptation project concept notes and design

• Identify inputs, activities, outputs, outcomes, and impacts for

your project

• Identify potential performance targets, data sources, and

assumptions/risks for your project
THANK YOU!
Questions?
Environmental and Social
Safeguards
Mari Tomova mari.Tomova@undp.org, UNDP
 Objectives
To describe key principles and the importance of environmental and social
safeguards

To recognize environmental and social safeguard procedures,

responsibilities and requirements

To identify and apply environmental and social safeguards that are
applicable to CC adaptation projects

To identify key elements of gender safeguards and design gender

safeguards for CC adaptation projects (Part 2)
ESS as part of the Feasibility Study Components

Comparing
Costs &
Benefits
Understanding (Part 3) Environmental
Economic & Social
Analysis Analysis
(Part 2) (Part 1)

Feasibility
Study
 Environmental Laws and Regulations

Laws that limit the use of land for certain activities are generally concerned with the
development of new sites or activities, eg land use or spatial planning consent. In many of
these cases it will be necessary to undertake an Environmental Impact Assessment (EIA). EIA
is a well-developed subject area, and most countries in the world have some form of law
requiring an EIA to be undertaken, prior to a decision being made as to whether or not to
give permission for a development.
Other laws and regulations can also limit the use of land. Examples include:
• zoning of land for certain industrial uses
• protection of land from certain activities
• constraining activities in certain areas, for example, setting criteria for noise.

The above examples give an indication of the range of controls, which may apply to an
organisation, and impact on its ability to operate. Many of these are set at a local level,
rather than by national or state laws, and as such, auditors must be aware of the local
regulations when they conduct an environmental audit.
 Environmental Impact Assessment (EIA)

What is environmental impact assessment?

Essentially, Environmental impact assessment (EIA) is an environmental decision support
tool, which provides information on the likely impacts of development projects to those who
take the decision as to whether the project should be authorized. The purpose of an EIA is to
determine the potential environmental, social, and health effects of a proposed
development, so that those who take the decisions in developing the project and in
authorizing the project are informed about the likely consequences of their decisions before
they take those decisions and are thereby more accountable. It is intended to facilitate
informed and transparent decision-making while seeking to avoid, reduce or mitigate
potential adverse impacts through the consideration of alternative options, sites or
processes.
EIA and EA are often used interchangeably. In the UK, for example, the term EA has often
been used to describe project-level assessment.
 Environmental Impact Assessment (EIA)
What is the objective of an EIA?
The objective of EIA is not to force decision-makers to adopt the least environmentally
damaging alternative, but rather to make explicit the environmental impact of the
development, so that the environment is taken into account in decision-making. EIA has
been regarded as both a science and an art, reflecting the technical aspects, such as impact
identification and prediction, as well as the evaluation, management, and presentation of
information. Before looking at EIA in more detail, it is worth looking at the nature of
environmental change that needs to be considered to provide a context.
When is EIA required?
EIA is required for all projects that have been identified as likely to have a significant effect
upon the environment. As you can probably imagine, defining what is 'significant' is not a
simple task.
Who carries out EIAs?
This varies in different counties. Frequently, it is the developer or environmental consultants
acting on behalf of the developer who carry out EIAs.
 Safeguards: General Points
• All financiers have safeguards
policies
• Direct Access: countries
themselves are responsible for
safeguards
• Environmental and social aspects
considered part of risk
management
• For ADB and UNDP: safeguards
apply to all projects
• Responsibility: Design team;
funder works with clients
• Use independent experts
 Indigenous Peoples Safeguards – ADB example
• Desig ed to foste full espect fo IP
identity, dignity, human rights, livelihood
syste s, a d cultu al u i ue ess
• Safeguards respond to history of
marginalization in development
• Special efforts required to overcome
marginalization
• Safeguards triggered by potential negative
AND positive impacts
• Safeguards may apply to non-ADB
activities
 ADB Indigenous Peoples
Safeguards: RESPONSIBILITIES
ADB Host Country
• Screen projects & due diligence • Assess projects for impacts
• Determine feasibility for • Engage with affected
financing communities
• Determine capacity to • Comply with all applicable laws,
implement IPP regulations, & standards
• Determine corrective measures • Include IP safeguard
(if necessary) requirements in bidding
documents
 ADB Key Principles for Involvement of
Indigenous Peoples
• Screen early!
• Use culturally appropriate
methods
• Meaningful consultations
• Obtain consent
• Avoid restricted access
• Collaboratively develop and
review Indigenous Peoples Plan
• Prepare legal recognition of
rights and access
• Follow up!
Social Safeguards: Example
Social Safeguards:
Additional Resources
• Environment Safeguards: A Good
Practice Sourcebook. ADB 2012.
• Indigenous Peoples Safeguards: A
Planning and Implementation Good
Practice Sourcebook. ADB 2013.
• Involuntary Resettlement Safeguards: A
Planning and Implementation Good
Practice Sourcebook. ADB 2012.
• Involuntary Resettlement Sourcebook:
Planning and Implementation in
Development Projects. World Bank
2004.
• Understanding the Asian Development
Bank’s Safeguard Policy. Oxfam 2010.
 Knowledge Check
Environmental and Social Safeguards are only required on ADB and World Bank projects
and programs?

A. True
B. False

The execution of environmental and social safeguards are the responsibility of

potentially affected communities and groups?

A. True
B. False
 Empowered lives.
Resilient nations.

MAINSTREAMING GENDER IN CLIMATE

CHANGE ADAPTATION

Mari Tomova
Climate Change Adaptation Team, BPPS/Global Environmental Finance Unit, UNDP
mari.tomova@undp.org
 Overview Empowered lives.
Resilient nations.

 Tools and policies to mainstream Gender

 Gender responsive stakeholder analysis
 GCF Case studies – Colombia, Samoa
 Takeaway messages
 Q&A
 Mainstreaming gender in UNDP-GEF Empowered lives.
Resilient nations.

• UNDP Gender Equality Strategy (GES)

• UNDP Gender Marker
• UNDP Country Office Gender Seal
• Revised GEF Gender Policy (Nov 2017)
• GCF Gender Policy
• Annual reporting on progress in addressing gender
inequality
– In 2016, 74% of projects in UNDP’s GEF-financed portfolio were
mainstreaming gender considerations
Toolkits to Mainstream Gender Empowered lives.
Resilient nations.
 Gender Responsive Stakeholder Analysis Empowered lives.
Resilient nations.

A gender responsive stakeholder analysis should respond to the following

questions:

• Who are the different stakeholders? Are men and women represented? What
are their interests?
• What are the project priorities for men and women?
• How will men and women be affected differently by the proposed project?
• What is the capacity for men and women to participate in the project,
particularly at the decision-making level?
• Who does what work? How does the work differ for men and women?
• Who has access to and who has control over environmental resources? Who has
access to and control over the benefits from environmental resources?
 Developing a Gender Action Plan
Empowered lives.
Resilient nations.

The following elements can form the GAP:

 Relevant background – insights into the status of gender equality

 Implementation plan – how gender outcomes, outputs and activities will
be implemented (short and long term)
 Proposed activities – the needed actions for reaching related outputs
 Responsible party – the responsible party for delivering such actions
 Indicators and targets – details on the specific measure for achieving the
gender related activity
 Timeline – timeline for delivery during project implementation
 Proposed budget – the resource allocation to ensure that there will be
funding for gender activities
 GCF Colombia
Empowered lives.
Resilient nations.

• Scaling up climate resilient water management

practices for vulnerable communities in La Mojana

• Colombia seeks to implement an integrated

approach to improve the adaptive capacity and
resiliency from climate impacts related to climate
change in the region of La Mojana

• The objective of the project is to enhance the

resilience of vulnerable communities in the La
Mojana region to climate change risks

• The targeted interventions will affect an area of

1,089,200 hectares approximately in four
departments (Bolivar, Sucre, Cordoba and
Antioquia)

• An estimated 203.918 people will benefit directly

from this intervention, which accounts for the
GCF Colombia
Empowered lives.
Resilient nations.
 GCF Colombia Empowered lives.
Resilient nations.

• Gender Assessment

 Desk review of relevant studies conducted by the Government of Colombia, multilateral

agencies, NGOs/CSOs, the private sector to collect the gender baseline information;
 Stakeholder consultations to consult the community members, and verify project locations;
Indigenous population and ethnic minority in the project area (Zenú people);
 Existing gender inequality in Colombia - review of Gender Inequality Indexes, Poverty, Rural
situation in la Mojana, Health, Risk Management, Education, Political participation and
decision-making, Labour force participation, Access to resources, Gender-based Violence;
 Mechanisms to address gender inequality in Colombia – legal and administrative
framework (strategies and actions with relevance to the project);
 Gender issues in response to water management in Colombia;
 Gender analysis and recommendations, including project design and implementation,
monitoring and evaluation,, quantitative and qualitative outcomes
GCF Colombia Gender Action Plan Empowered lives.
Resilient nations.
GCF Colombia Gender Action Plan Empowered lives.
Resilient nations.
GCF Colombia Gender Action Plan Empowered lives.
Resilient nations.
GCF Colombia Gender Action Plan Empowered lives.
Resilient nations.
Colombia Logframe Empowered lives.
Resilient nations.
 GCF Samoa
Empowered lives.
Resilient nations.

• Integrated Flood Management to Enhance Climate Resilience of the Vaisigano

River Catchment in Samoa
• As a Small Island Developing State (SIDS) in the Pacific, Samoa has been heavily
impacted by increasing severe tropical storms. Given the topography of the
country, these extreme events result in significant river discharge that results in
flooding of lowland areas
• The objective of the project is to strengthen adaptive capacity, and reduced
exposure to climate risks of vulnerable communities, infrastructure, and the built
environment in the Vaisigano River Catchment
• Primary direct beneficiaries include approximately 26,528 people in the Vaisigano
river catchment
GCF Samoa
Empowered lives.
Resilient nations.
 Gender Assessment Samoa
Empowered lives.
Resilient nations.

 Desk review of relevant national policy documents, the Strategy for Development of Samoa
2016-2020, relevant sector plans or draft sector plan;
 Lessons learned and recommendations from past assessments and studies on gender
equality undertaken by the Government of Samoa, UN agencies, NGOs/CSOs, the private
sector to collect the gender baseline information;
 Stakeholder consultations to consult the community members, and verify project locations;
 Existing gender inequality and vulnerability of Apia Urban Area- o er ie of fa’aasamoa
(Samoan traditional culture), review of Gender Inequality Indexes, Poverty,, Health,
Education, Political participation and decision-making, Labour force participation, Access to
resources, Gender-based Violence;
 Mechanisms to address gender inequality in Samoa– legal and administrative framework
(strategies and actions with relevance to the project);
 Gender issues in response to flood management in Samoa;
 Gender analysis and recommendations, including project design and implementation,
monitoring and evaluation,, quantitative and qualitative outcomes;
 In Samoa, vulnerability in disasters is most often identified around women, the elderly,
children and youth, and people living with disability
GCF Samoa Gender Action Plan Empowered lives.
Resilient nations.
 Key Messages Empowered lives.
Resilient nations.

 Ensure gender-responsive design and implementation

 inclusive consultations with both men and women at the design and
implementation phases of project;
 Examine mechanisms, social norms and institutional arrangements that affect
gender biases;
 Identify and address barriers and nature of these barriers (e.g. time poverty,
social norms, restriction on mobility) to women’s participation and leadership;
 Seek to address gender bias through affirmative action (e.g. quotas or special
measured in access to irrigated land);
 Invest in time-saving technology so that women and man of all age groups have
more time to devote to productive activities;
 Linking gender-responsive adaptation to broader climate change policy and
planning (e.g. NAPs)
 Prepare action plans, with budgets and lines of responsibility to advance
gender targets within the context of the project that is being designed
 Empowered lives.
Resilient nations.

THANK
YOU!

Questions?