ETHIOPIA - GGGI Report 2019 - GGGI Report 2019

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GGGI Ethiopia: Project Results Report 1/ 4 ETHIOPIA ACCELERATING GREEN GROWTH OVERVIEW Country / Global implementaon Ethiopia Least Developed Country (LDC) Themac area Mul-sectoral Project start date Q1 2017 Funding source Core Earmarked: Italy 2017 budget USD 1,474,015 % of budget disbursed 94% CONTEXT Over the past decade, Ethiopia’s economy has grown rapidly and consistently, which has allowed the country to make significant reducons in poverty. Ethiopia’s development gains and future sustained growth, however, face threats due to climate change and environmental challenges including: Domesc food insecurity due to dependence on rain-fed agriculture. Energy insecurity due to reliance on rainwater for hydropower-generated electricity. Greenhouse Gas (GHG) emissions that pose a long term economic liability. OVERALL OBJECTIVE Support the Government of Ethiopia’s deliverables relating to development goals by integrating CRGE plans and projects into Ethiopia’s Second Growth and Transformation Plan. HIGHLIGHTS Just under USD 397 million of green investment mobilized for CRGE, including USD 337 million from the international private sector for the Mekele City Water Project. Financial requirements of the CRGE analysis report completed, submitted and accepted by the government. RELEVANT SDGs 1.5. By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters. 2.3. By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment. 13.3. Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

Transcript of ETHIOPIA - GGGI Report 2019 - GGGI Report 2019

GGGI Ethiopia: Project Results Report

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ETHIOPIAACCELERATING GREEN GROWTH

OVERVIEW

Country / Global implementation

EthiopiaLeast Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source CoreEarmarked: Italy

2017 budget USD 1,474,015

% of budget disbursed 94%

CONTEXTOver the past decade, Ethiopia’s economy has grown rapidly and consistently, which has allowed the country to make significant reductions in poverty. Ethiopia’s development gains and future sustained growth, however, face threats due to climate change and environmental challenges including:

• Domestic food insecurity due to dependence on rain-fed agriculture.

• Energy insecurity due to reliance on rainwater for hydropower-generated electricity.

• Greenhouse Gas (GHG) emissions that pose a long term economic liability.

OVERALL OBJECTIVE• Support the Government of Ethiopia’s deliverables relating

to development goals by integrating CRGE plans and projects into Ethiopia’s Second Growth and Transformation Plan.

HIGHLIGHTS• Just under USD 397 million of green investment mobilized

for CRGE, including USD 337 million from the international private sector for the Mekele City Water Project.

• Financial requirements of the CRGE analysis report completed, submitted and accepted by the government.

RELEVANT SDGs1.5. By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters.

2.3. By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment.

13.3. Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

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OUTCOME 1 STATUS ACHIEVED

Improved understanding of financing requirements for CRGE.

GGGI drafted a financial analysis report for CRGE which was accepted by the government; improving understanding of existing financial gaps and requirements for CRGE implementation.

OUTCOME 2 STATUS ON TRACK

Financing is approved for CRGE supported proposals.

GGGI is aiming to develop at least five investment proposals worth approximately USD 500 million on behalf of CRGE. This year, GGGI mobilized just under USD 397 million of investment in Ethiopia and is continuing to assist in the development and implementation of proposals.

OUTPUT 2.1 STATUS ON TRACK

Bankable public/private project developed and capacity built.

• GGGI provided support to MoFEC/CRGE Facility to develop an investment profile on the Mekele City Water Supply Project, attracting USD 337 million of private investment. GGGI drafted the project concept and business case, led fact finding missions, organized stakeholder consultations and briefed Government Authorities on issues that arose during the project.

• GGGI supported MOFEC to develop a GCF project proposal to enhance critical irrigation systems in drought stricken regions. GCF approved the USD 50m proposal in October, contributing USD 45 million alongside the Ethiopia’s USD 5 million contribution.

• GGGI developed a Concept note for an Italian Ministry of Environment, Land and Sea (IMELS) funded Climate Change, Mitigation and Adaptation project in Ethiopia. IMELS has committed USD 119,000 to the project.

• GGGI has worked with Government entities to produce a pipeline for PPP Projects, principally focused on green and climate resilient infrastructure projects. GGGI developed a template for authorities seeking funding for PPP investment projects, PPP investment profiles and the Partnering for Green Growth and Global Goals 2030 Concept Note for Ethiopia amongst other projects.

• GGGI helped to develop the CRGE Facility Private Sector Fund’s Implementation Guidelines and institutional documents to operationalize the CRGE and attract future investment. is currently developing a CRGE Facility Resource Mobilization Strategy.

• GGGI has assisted MEFCC in the development of a proposal for the REDD+ implementation programme (RIP) that led to financial support from the Norwegian Government. As a member of the RIP Task Force, GGGI will continue to support implementation of the REDD+ program in 2018.

• GGGI led a working group to produce a draft of the Rural Job Opportunity Creation Strategy which was endorsed by the National Flagship Programs Coordinators of the MoANR. GGGI has begun work to implement the Strategy as a member of the Rural Job Opportunity Taskforce.

• GGGI conducted an investment mapping on the Industrial sector and developed a policy guidance for Resource Efficiency for industrial parks.

• GGGI developed a bankable project on integrated waste management at the industrial parks for the Kombolcha Industrial Park.

• GGGI supported MoFEC in the development of its GCF Readiness and Preparatory Support proposal.

OUTPUT 1.1 STATUS ACHIEVED

Financial requirement and options for full implementation of the CRGE/INDC analyzed.

• GGGI formulated and finalized an Inception report for the work ‘’Financial requirements and options for full implementation of the CRGE/INDC,’’ which outlines the conceptual and analytical framework and engagement strategy.  Finalization of the report included inputs from which engagement with key national stakeholders (i.e. Government of Ethiopia, Donors, CSO’s).

• GGGI also developed a Climate Financing Tracking and Projection Methodology Analysis report, which designs the methodology to determine the capacity to project climate finance needs, outlines the methodology to quantify the financing mix and track activities.  The report was shared for review and approved by an expert group validation workshop convened by the CRGE Advisory Group and CRGE Facility in November. GGGI was on track to produce a finalized report accounting for those comments in December.

RESULTS ACHIEVED IN 2017

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RESULTS ACHIEVED IN 2017

OUTCOME 3 STATUS ON TRACK

Improved tracking of climate expenditure.  GGGI developed a ToR for the Analysis of Climate Finance Expenditure Tracking System, a first step toward operationalizing it and ultimately improving tracking of climate expenditure.

OUTPUT 3.1 STATUS ON TRACK

Sector-wide System for tracking climate expenditure developed.

GGGI defined and developed a ToR for the Analysis of Climate Finance Expenditure Tracking System and Support the Implementation of the tracking System, which was shared with MoFEC work divisions. The ToR builds on the work of the analysis of financial requirements for the CRGE (Output 1.1). 

OUTCOME 4 STATUS ON TRACK

MRV system for CRGE enhanced.  • GGGI provided technical support for the MRV system

and assisted in the launch of the MRV during Global Green Growth Week 2017, which concluded with the signing of a Memorandum of Understanding between MEFCC and executing ministries.

OUTPUT 4.1 STATUS ON TRACK

Comprehensive MRV system for the CRGE developed.

• GGGI provided technical support focused on data utilization and management to strengthen the development of an MRV system; support on follow up actions of Ethiopia’s MRV framework implantation; and capacity building for tracking GHG emissions at national and sub-national levels.

OUTCOME 5 STATUS ON TRACK

Improved knowledge sharing and communication related to climate diplomacy.

• In GGGI coordinated knowledge sharing events and has taken the lead on internationally driven projects championed at the Global Green Growth Week 2017.

• GGGI has facilitated future international knowledge sharing by helping launch the Environmental Diplomacy Center, a national hub facilitating South-South Cooperation and climate diplomacy.

OUTPUT 5.1 STATUS ON TRACK

South-South Cooperation and Knowledge Sharing developed and implementation commenced.

• In collaboration with Addis Ababa University, GGGI supported the launch of the Environmental Diplomacy Center, a national hub which facilitates South-South Cooperation and knowledge sharing. The official launch was announced at the LDC Ministerial Meeting, bringing together 23 LDC ministers, 50 focal points and coordinators.

• GGGI developed the concept note for the establishment of an institution for knowledge sharing and climate diplomacy and co-organized the LDC Ministerial and technical meetings (which took place in preparation for COP23).

• GGGI staff is a core team member of the Ethiopian negotiators on climate change and coordinating the LDC Group. GGGI hosted two strategy and one ministerial meetings in Addis Ababa in preparation for the COP23.

OUTPUT 5.2 STATUS ON TRACK

Climate Communication and diplomacy strategy developed and implementation commenced.

• GGGI, in collaboration with Ethiopia’s Ministry of Environment Forest and Climate Change, co-convened the Global Green Growth Week 2017, the first time that Africa has hosted the event, on the theme “Unlocking Africa’s Green Growth Potential”. There was strong high-level participation from Ethiopia, international development organizations and international governments.

• GGGI lead initial scoping work and program development including high-level technical, operational, planning, logistical and liaising support to Ethiopia and key stakeholders.

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GGGI Ethiopia: Project Results Report

PARTNERS

LOCAL

• Ministry of Environment, Forest and Climate Change

• Ministry of Finance and Economic Cooperation

• Ministry of Agriculture and Natural Resources

• Ministry of Water, Irrigation and Electricity

• Ministry of Industry

• Prime Minister’s Office

• Ministry of Urban Development and Housing

• Ministry of Livestock and Fisheries

• Ethiopian development Research Institute

• Economic Policy Analysis Unit

• Kifiya Financial Technology

INTERNATIONAL

• Irish Aid

• Government of Italy—Ministry of Environment, Land and Sea (IMELS)

• World Resources Institute (WRI)

• African Union

• UNECA

• CRGE Advisory Board members: Norway, Denmark, DFID, World Bank, UNDP, USAID, SIDA, OXFAM, CSO’s, Echnoserve Consulting (private sector)

ADDITIONAL RESULTS

• GGGI provided support to the Prime Minister’s Office including briefing notes, speeches and talking points on international negotiation on climate change and implementation of Ethiopia’s national policies on climate resilient green development.

• GGGI supported the Ministry of Environment, Forest and Climate Change regarding Ethio-China partnership on Infrastructure, by coordinating a fact-finding mission.   

• GGGI supported the coordination of the Multisector Investment Plan for Resilience, led by the World Bank and Africa Development bank.  

• GGGI participated in reviewing the draft Climate resilient strategy for the MoUDH and provided inputs on a corresponding steering committee meeting. 

GGGI Mozambique: Project Results Report

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MOZAMBIQUESCALING UP PRO-POOR RENEWABLE ENERGY IN

MOZAMBIQUE

CONTEXTMozambique’s strong economic performance of annual 7.2% economic growth over the past decade has not been equitable, with 39% of the total population living in rural poverty. Only 27% of the total population and 5% of the rural population have access to electricity hindering education, health and development in rural areas. The Government of Mozambique’s (GOM) Green Economy Action Plan seeks to scale up the development of off-grid renewable energy to increase access to rural people and improve their livelihood and income generation in sectors such as agriculture, fisheries and tourism and small business.

OVERALL OBJECTIVE• Assess the inclusive green growth potential of Mozambique.

• Support Mozambique achieve its NDC goals through improved energy access for rural communities. This is being done through improved implementation of off-grid renewable energy solutions, for example in productive use.

• Assist in the design and adoption of a financing instrument aimed at scaling up pro-poor renewable energy.

OVERVIEW

Country / Global implementation

Mozambique Least Developed Country (LDC)

Thematic area Energy

Project start date Q1 2017

Funding source Core

2017 budget USD 834,466

% of budget disbursed 64%

HIGHLIGHTS• The Green Growth Potential Assessment in Mozambique

has led to the identification and prioritization of the country’s opportunities for green growth.

RELEVANT SDGs1.2. By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.

2.3. By 2030, increase substantially the share of renewable energy in the global energy mix.

17.3. Mobilize additional financial resources for developing countries from multiple sources.

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OUTCOME 1 STATUS ON TRACK

The Government of Mozambique (GoM) has a better policy environment and institutional design in place to improve investment in pro-poor renewable energy in rural area.

The target for this outcome is for Mozambique to adopt and pilot policy recommendations to scale up renewable energy for rural development. This outcome is dependent on the completion of outputs 1.1 and 1.2, which will be completed in 2018.

OUTPUT 1.2 STATUS ON TRACK

Recommendations for policy and regulatory framework aimed at scaling up renewable energy for productive use in rural areas developed and submitted to government.

GGGI has conducted a market assessment of key productive uses in off-grid rural areas, focusing on solar-powered irrigation solutions and solar-powered mills as two major high-potential areas in terms of market size and viability of business models. In order to further support this output, an off-grid policy barrier assessment is in progress, which will assess the barriers to private sector participation in the off-grid power sector. This output is on track with its intended timeline for completion by the end of 2018.

OUTPUT 1.1 STATUS DELAYED

Undertake an assessment of the green growth potential of Mozambique.

An assessment of Mozambique’s green growth potential has been conducted using the GGPA diagnostic tool. The GGPA process consisted of: (i) a preliminary assessment based on the data analysis and literature review which identified several area of green growth interventions including improving agricultural productivity, use of renewable energy for improving rural livelihoods, deforestation and poverty reduction; (ii) validation of the preliminary assessment and consultation with stakeholders (areas identified included agricultural productivity, natural resource depletion, renewable energy, good governance and education enablers); and (iii) expert interviews, sector analysis and development of recommendations. The final report has been delayed to enable full analysis of the obstacles and opportunities regarding the identified green growth priorities, and development of appropriate recommendations.

RESULTS ACHIEVED IN 2017

OUTCOME 2 STATUS ON TRACK

The Government of Mozambique has a clear business case and financial mechanisms developed to improve investment in pro-poor renewable energy in rural areas.

This outcome is on track with its intended timeline for completion by the end of 2018.

OUTPUT 2.1 STATUS ON TRACK

Identify/ design a financing instrument aimed at scaling up renewable energy use in rural areas with a goal of receiving funding for such.

Building on the work in Output 1.2, investment concepts notes have been prepared for solar-powered irrigation solutions and solar-powered mills, for project/program financing discussions with development donors. In 2018 this will be further developed into project/program pipeline with a tailored financing solution to ensure bankability.

OUTCOME 3 STATUS ON TRACK

Improved knowledge or skills on design of bankable projects and climate finance landscape.

This outcome has been partially achieved and is on track for completion in 2018.

OUTPUT 3.1 STATUS ON TRACK

Capacity development program focused on bankable project proposal formulation and institutional setup of a national financing vehicle delivered.

Under the capacity development program in 2017, GGGI focused on providing the foundations of green growth principles, and sharing experiences in national financing vehicles from other countries. A workshop on Green Growth Concepts and Approaches was held in February 2017. Experiences from Ethiopia’s Climate Resilient Green Economy (CRGE) Fund and Rwanda’s Green Fund (FONERWA) were shared by a member of GGGI’s Rwanda team during a World Bank-organized workshop. Experiences from South Korea were shared during a seminar at the Eduardo Mondlane University. Furthermore, key government stakeholders were supported to attend Global Green Growth Week 2017.

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PARTNERS

LOCAL

• Ministry of Land, Environment and Rural Development (MITADER)

• Ministry of Economy and Finance (MEF)

• Ministry of Energy and Mineral Resources (MIREME)

• Ministry of Agriculture and Food Security (MASA)

• FUNAE (National Energy Fund)

INTERNATIONAL

• UNIDO

• UN Women

• DFiD

• GIZ

LESSONS LEARNED• Working in an environment where the country faces fiscal

and macroeconomic challenges, as well as high levels of risk poses its own challenges in mobilizing investment capital from the public and private sector.

GGGI Rwanda: Project Results Report

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RWANDACLIMATE RESILIENT GREEN CITIES

OVERVIEW

Country / Global implementation

RwandaLeast Developed Country (LDC)

Thematic area Green City Development

Project start date Q1 2017

Funding source Core

2017 budget USD 1,411,786

% of budget disbursed 79%

CONTEXTThe government of Rwanda, in its national plan, the Economic Development and Poverty Reduction Strategy (EDRPS2), has identified urbanization as a key element to grow the economy. The challenge with this ambition is that Rwanda is approximately 18% urbanized, which is one of the lowest in Africa. However, the current average growth rate of the urban population is 4.5%, which is far above the global average of 1.8%. This growth is largely concentrated in the capital city of Kigali, with an annual population growth rate of 9%.

In order to better distribute economic growth across the country and accomplish the national urbanization target of 35% by 2020, the Government of Rwanda has identified six secondary cities (Huye, Muhanga, Nyagatare, Rubavu, Musanze and Rusizi) that would serve as green growth poles.

GGGI, in 2015, developed a National Roadmap for Developing Green Secondary Cities which was endorsed and adopted by the government in 2016. The next stage of the National Roadmap has started with assistance to the government to develop the enablers of green urbanization through policy guidelines and actions to support implementation.

OVERALL OBJECTIVE• Contribute to green urbanization implementation through

integrated planning, financing of pilot projects, and institutional strengthening.

HIGHLIGHTS• The Prioritized Actions identified in the GGGI produced

National Roadmap for Green Secondary Cities were implemented in 6 secondary cities.

RELEVANT SDGs11.3. By 2030, enhance inclusive and sustainable urbanization and capacity for participator integrated and sustainable human settlement planning and management in all countries.

13.2. Integrate climate change measures into national policies, strategies and planning.

17.9. Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South, and triangular cooperation.

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OUTCOME 1 STATUS ACHIEVED

Prioritized actions identified in the National Roadmap for Green Secondary Cities development implemented in 4 secondary cities.

Six secondary cities District Development Strategies were developed in 2017, incorporating key actions from the National Roadmap exceeding the 2 planned, leading to the achievement of both Intermediate Outcomes 1 and 2.

OUTPUT 1.1 STATUS ACHIEVED

Urbanization sector action plans and District Development Plans (DDPs) reviewed to integrate key actions and recommendations from the National Roadmap.

• GGGI worked with the partner government at the national and subnational level in 2017 to ensure that urbanization sector action plans and District Development Plans (DDPs) were reviewed to integrate key actions and recommendations from the National Roadmap. This was done through the location of six GGGI District Assistants to work on the ground in the six secondary cities. This arrangement enhanced the collaboration with the District One-Stop Center technicians whose role it is to implement the District plans. This support resulted in the integration of green growth principles and the recommendations from the Roadmap into the planning framework for Rwanda’s development at the sub-national level titled the District Development Strategies (DDS). The DDS will serve as the next generation of Rwanda’s medium-term strategy under the National Strategies for Transformation (NST1) which replaces the EDPRS II.

• GGGI Rwanda also worked at the national level to integrate the recommendations of the Roadmap into policy in the building and construction sector through the support to Rwanda Housing Authority (RHA) to develop a Green Building Minimum Compliance and Standards. The standards are expected to come into effect from mid-2018 and will ensure sustainability and the efficient use of building material resources in the construction sector. The most impactful aspect of this output is GGGI’s technical support with formulating the green building indicators in close collaboration with RHA, Rwanda Green Building Organization (RwGBO), Building and Construction Authority of Singapore, and the Rwanda Institute of Architects.

• The minimum compliance and standard’s elaborate participatory consultations with government, NGOs, private sector practitioners, students and faculty, as well as the public on the meaning and need for Rwanda to move toward a green building minimum compliance was an opportunity to train the key stakeholders in the building and construction sector on the need for green growth. A total of 225 persons were trained to understand the concepts, applications and operations of green building. Most of these participants were architects, urban planners, civil engineers, building material and construction service providers.

RESULTS ACHIEVED IN 2017

OUTCOME 2 STATUS ACHIEVED

Funding for at least one green project identified within the Roadmap for Green Secondary Cities.

Funding was identified for the Rubavu Eco-Tourism project from Fonerwa. Funding was also identified for the WASAC Faecal treatment Sludge Treatment Plant treatment projects from the African Development Bank.

OUTPUT 2.1 STATUS ON TRACK

Submission of financing proposal for a project identified within the Roadmap for Green Secondary Cities.

• Initial scoping on potential green city projects was completed in early 2017, using the MININFRA Secondary Cities Feasibility Studies for the six selected secondary cities and the project concepts submitted to FONERWA. A Green investment plan was submitted to MININFRA in March 2017, featuring fecal sludge treatment plants and solid waste. Of the project concepts submitted to FONERWA, the Rubavu Eco-Tourism project was progressed from the shortlist. GGGI provided robust financial modelling as part of a prefeasibility study for the project.

• GGGI also provided technical support to WASAC on Faecal Sludge Treatment Plant projects in Rwanda. The African Development bank has indicated their support for GGGI’s capacity building and assistance to WASAC. By building these capacities, WASAC would be able to design and implement projects in FST and other areas of sanitation, leading to a continuous pipeline of bankable projects under the Rwanda Water and Sanitation Program.

• In 2017, GGGI completed the design of a three-year program that offers guidance on strategy and policy advisory; technical solutions; business model development; contract management and increased valorization of sludge. GGGI is also providing support to WASAC to implement the projects, review current project portfolio to improve financial viability and engage with the private sector to operate plants. The program has been agreed with WASAC and requires a no-objection from the African Development Bank for the program to start Jan 2018.

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RESULTS ACHIEVED IN 2017

OUTCOME 3 STATUS ON TRACK

Capacity building and knowledge on green urbanization developed and disseminated in the six secondary cities.  The delivery of the launching workshop of the Training of Trainers Program in May 2017 disseminated knowledge regarding designing green cities and helped develop the skills necessary for the six secondary cities to independently implement and mobilize resources for green city development projects.

OUTPUT 3.1 STATUS ACHIEVED

Training of Trainers (ToT) on National Roadmap implementation delivered in 6 secondary cities.

• GGGI designed a biennium project titled “Training of Trainers (ToT) on Green Secondary Cities Development in Rwanda”. This project aims to enhance the capacity of key officials from six secondary cities in planning and designing green cities and eventually enable them to independently implement and mobilize resources for green city development projects.

• In May, the launching workshop of the ToT program was delivered in partnership with the Rwandan Ministry of Infrastructure. The workshop was attended by 36 officials from six secondary cities. Upon the completion of the first training, 6 green city project concept notes were produced by local government officials from secondary cities. Full proposals developed through the workshop program will be taken to the next phase for resource mobilization and project financing, with the assistance of GGGI’s investment specialists. The trainers are expected to replicate the lessons from this capacity building to other selected technicians at the Secondary Cities and be evaluated to see the medium-term impact of the program in 2018.

ADDITIONAL RESULTS

• GGGI supported the first phase of greening the new Bugesera International Airport. GGGI’s technical advisory focused on the value engineering of the airport design to optimize energy and water efficiency as well as recommendations for the use of sustainable building material resources with local and recycled content.

• GGGI supported the dissemination of the National Urbanization Policy together with MININFRA to the 30 districts across the whole of Rwanda, presenting on the opportunities and challenges of green urbanization. This output positioned GGGI to have an outreach at the sub-national level beyond the six secondary cities.

• GGGI in collaboration with the National Designated Agency, (NDA) REMA, developed in June 2017 a “Readiness and preparatory support proposal to implement Green City Development Projects in Rwanda’s Secondary Cities”. This proposal has now received approval from GCF and will support the Government of Rwanda for the preparation of a detailed green master plan for one priority secondary city in Rwanda as part of the promotion of the green urbanization. The proposal gives GGGI the opportunity to showcase to the Government and other concerned stakeholders the possibility of accessing Green Finance for sustainable development. 

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GGGI Rwanda: Project Results Report

PARTNERS

LOCAL

• Ministry of Infrastructure (MINIFRA)

• Ministry of Environment

• Ministry of Local Government

• Rwanda Green Building Organization

• Rwanda Institute of Engineers

• Rwanda Institute of Architects (RIA)

• FONERWA

• Rwanda Environment Management Authority (REMA)

• Rwanda Housing Authority (RHA)

• Water and Sanitation Corporation (WASAC)

INTERNATIONAL

• African Development Bank (AfDB)

• Building and Construction Authority of Singapore (BCA)

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RWANDATECHNICAL SUPPORT TO THE

RWANDA NATIONAL FUND FOR ENVIRONMENT AND CLIMATE CHANGE (FONERWA) FACILITY

OVERVIEW

Country / Global implementation

RwandaLeast Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 885,761

% of budget disbursed 58%

CONTEXTEstablished in 2012, FONERWA aims to mobilize domestic and international climate finance, and secure sustainable financing to support projects toward the implementation of the GGCRS. As a cross-sectoral national financing mechanism, FONERWA is the vehicle through which environment and climate financing is channeled, programmed, disbursed, and monitored.

The key priority of the Fund’s operations is to ensure a sustained and effective delivery that continues to incrementally commission projects, build capacity of potential applicants to access funding, commit finance and quality assure implementation of funded projects. Additionally, operations aim to enhance FONERWA’s role in addressing wider national strategic needs related to the environment and climate change. This will necessitate technical support to the Government of Rwanda to adequately resource the Fund, build capacity and execute its mandate.

OVERALL OBJECTIVE• Assist Rwanda access financing to support transition to

an environmentally sustainable, low carbon and climate resilient economy that contributes to wealth creation and poverty reduction.

• Provide technical support to the Rwanda National Fund for Environment and Climate Change Facility.

HIGHLIGHTS• Development of the Environment and Natural resources

sector strategic plan (ENR SSP) as a critical input to strengthening and mainstreaming of green growth and climate resilience into the NST1.

• Supported Rwanda Ministry of Natural Resource (now the Ministry of Environment) to become the first Ministry to be accredited by the GCF, access the Project Preparation Facility for USD 1.5 million, and access the GCF’s Readiness Project for USD 300,000.

RELEVANT SDGs1.a. Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programs and policies to end poverty in all its dimensions.

13.2. Integrate climate change measures into national policies, strategies and planning.

13.a. Implement the commitment undertaken by developed-country parties to the UNFCCC to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible.

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RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ON TRACK

SIncreased financing for green growth and climate resilience in Rwanda.

This outcome is on track with its intended timeline for completion in 2019.

OUTPUT 1.1 .STATUS ON TRACK

Complete FONERWA Secretariat Strengthening: by implementing Business Plan (DESIGN 2016). The goal for FONERWA to be independently sustainable.

• GGGI supported FONERWA to deliver a presentation to the Rwandan Cabinet and Parliament that proposed a new law giving autonomy to FONERWA, in order to enhance capacity of the FONERWA Secretariat. This revision of the law establishing FONERWA created another opportunity and platform to share lessons and knowledge of the Fund’s activities in the last 4 years to the highest decision-making body of the government.

• FONERWA has increased the fund’s commitment rate over the last 5 years to USD 10m per year, which it expects to maintain over the next 5 years with some increased investment in infrastructure. This delivery also includes an ongoing work to complete FONERWA Secretariat strengthening by implementing Business Plan designed in 2016 with the goal for FONERWA to be independently sustainable.

OUTPUT 1.2 (continued) STATUS ON TRACK

• It funded the E-Waste-policy, the Meteo Rwanda information dissemination strategy, agriculture sector strategy. It has supported the first two green mines in Rwanda to demonstrate the financial benefits of green mining to the industry.

• Across the 35 projects approved to date, there has been a strong preference for projects that contribute to sustainable land management, ecosystem rehabilitation, renewable energy, energy efficiency and water storage.

• Supported Rwanda to become the first Ministry to be accredited by the GCF, successfully access the Project Preparation Facility of USD 1.5m and access readiness of USD 300,000 GGGI/FONERWA support for Fund mobilization for the construction of mini-grids in Rwanda are targeting EUR 20m from the NAMA facility with additional contributions from the GoR (EUR 3m) and leveraging from the private sector (EUR 13m). Discussions indicated that a consultant to support mitigation work as a critical input to the concept will be sourced through IPSD.

• GGGI/FONERWA supported the development of the Environment and Natural resources sector strategic plan (ENR SSP) as a critical input to strengthening and mainstreaming of green growth and climate resilience into the NST1. In October 2017, FONERWA supported the costing exercise for the ENR SSP.

• FONERWA has been coordinating the development of the Strategic Program for Climate Resilience (SPCR) that is planned to be submitted to the Climate Investment Fund (CIF) for the council meeting in Washington in December 2017. The SPCR development and review process was concluded in October 2017 and submitted to World Bank on 1st November 2017.

All these outputs will enable FONERWA to become more independent, sustainable and more efficient to achieve its strategic outcomes.Some other activities related to this output that are ongoing include a technical support for Management Information System that will be established as part of implementing the Business Plan and the operationalization of the new management team and Board under the new law given a special status to FONERWA. GGGI also provided ‘on-demand’ strategic support by completing the review of the Funds Disbursement in April 2017. Other mechanism to transition beyond FONERWA pool include the Green City Pilot project which has completed a technical assistance to a private real estate developer in 2017. This assistance focused on greening the engineering designs for a neighborhood plan within the selected site for piloting a green city. GGGI is also working with FONERWA and the Energy Development Corporation Limited on NAMA proposal planned for submission in Dec 2017.

OUTPUT 1.2 STATUS ON TRACK

National Green growth objectives translated into implementable projects.

• In collaboration with GGGI, FONERWA has engaged with many international funders and networks (DFID, kfW, GCF, south-south-north (SSN), etc.).

• Through GGGI’s technical assistance to FONERWA secretariat, Rwanda is now positioned to be one of the first Least Developed Countries to get enhanced direct access to the Green Climate Fund (GCF).. FONERWA is finalizing a USD 40m proposal to GCF through the direct access modality to implement an integrated tea, coffee and housing program.

FONERWA continues to influence policy and sectors in the Rwandan economy by leading by example and by including strong green requirements to projects before committing funds. Some examples include:

• It influenced District Development Plans (DDPs) under the EDPR and continuing to assist in the new generation of the District Development Strategies (DDS) under the evolving National Strategy for Transformation (NST1).

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RESULTS ACHIEVED IN 2017

OUTPUT 1.3 STATUS ON TRACK

Document results and lessons from the implementation of FONERWA to support resource mobilization and knowledge sharing efforts.  • GGGI shared experiences with Malawi on the design

and establishing of FONERWA, an initiative that is supported by UNDP.

• GGGI shared FONERWA experiences on the factors for successful national Financing Vehicle and the design features essential for effective functioning with various partners in different forums including the Innovate4Climate in Barcelona, at the review of performance to date of the green fund of South Africa, a conference call with Jordan, the Global Green Growth Week in Addis Ababa, the Rwanda side event as well as other side events at the COP 23 in Bonn.

PARTNERS

LOCAL

• Ministry of Environment (MoE)

• Ministry of Lands and Forestry (MINILAF)

• Ministry of Finance and Economic Development and Research (MINECOFIN)

• Ministry of Local Government (MINALOC)

• Development Bank of Rwanda (BRD)

• Civil Society, Central and Decentralized organs and private sector.

INTERNATIONAL

• Department for International Development

• KFW, Germany

• Swedish International Development Agency (SIDA)

• African Development Bank

• World Bank

• Energy Development Corporation Limited (EDCL)

GGGI Senegal: Project Results Report

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SENEGALGREEN GROWTH PATHWAYS

IN SENEGAL

OVERALL OBJECTIVES• Assist appropriate government agencies to apply and use green

city guidelines and implementation roadmap and inform future national planning.

• Support Senegal to map out national policy priorities that will allow the country to achieve objectives laid out in its INDCs/NDC.

• Support market assessments that contribute to building Senegal’s readiness to scale up RE4PU and alternative fuels for the household energy sector and other potential industries.

• Assist in the development of innovative financing vehicle for increased access to climate finance for private sector.

• Support Senegal in developing its inclusive Green Growth Governance with the formulation of the National Green Growth Strategy and undertaking long-term capacity building initiatives.

OVERVIEW

Country / Global implementation

Senegal Least Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 1,252,488

% of budget disbursed 85%

HIGHLIGHTS• Formulation of the Strategy for Development of Kolda as a

Green Secondary City by 2035 and the Green City Action Plan (GCAP) as the roadmap to achieve it, that will benefit a population of 88,840 people.

• Formulation of the Strategy for Development of Tivaouane as a Green Secondary City by 2035 and the Green City Action Plan (GCAP) as the roadmap to achieve it, that will benefit a population of 75,493 people.

• Formulation of the Strategy for the new city of Diamniadio as a Green & Smart City, that will benefit an estimated population of 100,000 people.

• Priority sector analysis and selection for the formulation of the National Green Growth Strategy.

• Design of the Renewable Energy & Energy Efficiency Fund (REEF) as an innovative national financing vehicle for accelerating access of local private sector to climate finance with USD 50 million in the first cycle up to USD 200 million during the first 24 months, with an estimated 300 MW of solar energy installations and a reduction of 31.3 million TCO2.

• Increased knowledge and capacities of local governments, private sector and academia on the principles, concepts and challenges of developing green cities.

RELEVANT SDGs11.3. By 2030, enhance inclusive and sustainable urbanization and capacity for participator, integrated and sustainable human settlement planning and management in all countries.

13.2. Integrate climate change measures into national policies, strategies and planning.

13.a. Implement the commitment undertaken by developed-country parties to the UNFCCC to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible.

CONTEXTSenegal’s situation has been characterized by successive years of underperformance in key sectors of the economy including inadequate access as well as high cost of electricity, low agricultural productivity, weak urbanization. Combined with the economy’s vulnerability to exogenous shocks (climatic shocks, energy crisis, low value-added of exports, etc.), the result is persistent poverty, unemployment and social inequality both in rural and urban areas.

Senegal has recognized the need to diversify its energy mix and attract private sector investments to ensure a competitive supply of electricity in the industrial zones and agricultural areas that have strong economic potential. The agriculture sector is highly vulnerable to climate change, high costs of inputs such as fertilizers, declines in harvests, etc., resulting into more unemployment, high food prices and extensive imports. Ineffective urban development planning without growth has also led to consistent environmental and urban challenges that exacerbate the social inequalities and urban poverty.

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OUTCOME 1 STATUS ON TRACK

Senegalese Government adopts the National Green Growth Strategy and develops green growth actions for selected pilot secondary cities.

This outcome is on track with its intended timeline for completion of summer 2018. In coordination with the Prime Minister’s Office, the NGGS will be presented for validation at the third edition of the National Conference on Sustainable Development scheduled for June 2018.

OUTPUT 1.1 STATUS ON TRACK

The final National Green Growth Strategy (NGGS) document submitted to the government.

The following milestones were achieved: (i) Report on the Assessment of national priorities’ planning documents (PSE, INCD/NDC, National Sustainable Development Strategy - SNDD) to identify green growth opportunities/initiatives; (ii) Report on the macro-economic analysis of the situation in Senegal, structured around the sectoral working papers on green challenges based on the green growth potential assessment; (iii) National validation of the Prioritized Sectors to include in the National Green Growth Strategy Document, based on the green growth potential assessment in different areas of green growth correlating with priority sectors of the PSE, INDC/NDC, SNDD, etc.; (iv) Report on the Assessment of poverty reduction and social inclusion potential (including gender analysis) in the NGGS; and (v) Policy recommendations to GoS for adopting the NGGS.

OUTCOME 2 STATUS DELAYED

Green energy projects are designed and demonstrated to be financially feasible.

GGGI has been working with Government agencies in the development of a pipeline of projects, including with the Centre de Suivi Ecologique as the national accredited entity to GCF, the Ministries in charge of Agriculture, Environment and Energy. The project ideation and development has progressed with the concept note stage, and planning is underway for proposal development in next fiscal year.

RESULTS ACHIEVED IN 2017

OUTPUT 1.2 STATUS ON TRACK

GGGI supports Gov. to apply and use green city guidelines and implementation roadmap in 2017.

• In May 2017, Senegal confirmed the three pilot cities following the meeting of the Steering Committee: Tivaouane, Kolda and the new city of the Urban Pole of Diamniadio.

• The main achievement has been the development of the Strategy for Development of Kolda as a Green City. The process involved organizing the Forum for KOLDA Future with the Vison of the city, and the Green City Action Plan (GCAP) development in a participatory way, with the establishment of the Committee for Local Concertation (CLC) as a technical forum formalized through a municipal decree. Similarly, the city of Tivaouane has gone through the same process with the Strategy for Development of Tivaouane as a Green City by 2035. The Summit of Tivaouane’s Future and the GCAP as the roadmap for the implementation of the two strategies are central elements of the next steps that include the demonstration projects and the Investors’ Forum.

• GGGI committed USD 200,000 for the Fecal Sludge Management for the Urban Poor project which started implementation in September 2017 aiming to have hygienic fecal sludge services become more accessible, organized and affordable to the urban poor in secondary cities in Senegal, and more sustainable entrepreneurship developed through sounder business models, including for the informal sector.

OUTPUT 2.1 STATUS ON TRACK

Green energy projects are designed and submitted to financiers.

• The Renewable Energy and Energy Efficiency Fund (REEF) for Senegal is an innovative national financing vehicle designed by GGGI in collaboration with AfDB and FONSIS aiming at accelerating the development of Renewable Energy (RE) projects, including rural electrification and Energy Efficiency (EE) in Senegal. Requested by Senegal, the REEF was officially launched on October 12th, 2017 to provide subordinated debt to RE, EE and solar off grid projects and aims to address the financial, technical and institutional barriers which these projects encounter in Senegal. Funding for REEF will be sought from the GCF and from AfDB which will also endeavor to attract additional partners to reach the Fund’s initial target size of USD200 million.

• Through its Rice husk waste to energy initiative, GGGI is working with the Senegal to ‘match-make’ waste to energy opportunities in rice mills with technology providers and potential investors.

• GGGI’s slaughterhouse waste to energy project, known as THECOGAS, will serve as a demonstration project for institutional procedures by which project guarantees are provided for waste to energy projects. The project is one of the first waste to energy projects to secure a guarantee from FONGIP, a sovereign guarantee and investment fund dedicated to Small and Medium-sized Enterprises (SMEs) in Senegal. The guarantee will then be used as an incentive to apply for debt finance from a concessional credit line funded by the green finance fund of Agence Francaise de Developpement (AfD) administered through Société Générale des Banques du Senegal (SocGen). The loan from SocGen Bank is still to be approved.

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GGGI Senegal: Project Results Report

RESULTS ACHIEVED IN 2017

OUTPUT 2.2 STATUS DELAYED

Conduct the market & economic assessment, and the Environmental and Social Impact Assessment (ESIA) in support of the design of the 2 bankable E4PU projects and the 1 bankable Green city development project.

• GGGI conducted a detailed status analysis on existing policy, institutional and legal framework, and market situation to identify gaps to develop green energy projects for energy for productive uses (E4PU) in rural areas of Senegal. The Market Assessment final report was delivered at the beginning of June 2017, encompassing an assessment of existing fuel pellets and briquette producing businesses in Senegal, including their current supply chains, major market barriers and challenges, and the support required to scale up the supply and demand side market development. On the demand side, it encompasses assessing main issues such as household sector retail prices for fuel, ability to pay for alternative fuels, awareness levels, and major fuel market drivers of alternative fuels. Overall, the objective of this study is to understand the market demand for briquettes and pellets to support the business cases for wide-spread scale up of producers to enhance diversified alternatives fuel supply in Senegal. It concluded on the potential for biomass-waste energy bankable project opportunities and a review of the existing barriers in the markets for fuel pellets and green charcoal in Senegal

• The other component of this output on the environmental and social analysis was not feasible since there were no additional projects ready to apply the analysis to. Social & Environmental analysis will be integrated into technical and economic design, and be an integral part of pre-feasibility and feasibility studies for bankable projects and not treated as a separate contract.

OUTPUT 2.3 STATUS DELAYED

Design a scalable and sustainable business model/system for decentralized FSM for secondary cities in Senegal.

• This output was designed to valorize a Fecal Sludge Management (FSM) system that is sustainable and affordable to the urban poor for a secondary city of Senegal. This project serves as a demonstration for the application of the green secondary city guidelines recently validated by the Government of Senegal, under one of the five pillars in the guidelines – Water & Sanitation.

• GGGI, in consultation with its government counterpart, identified “Tivaouane” as a project area. In 2017, the pre-assessment report elaborating on successful/replicable factors of FSM system implemented in Dakar, FSM value chain and waste to resource opportunities, and potential areas of interventions in Tivaouane has been produced. The next step of the project is to conduct the market assessment centered around three potential intervention areas mentioned above. This market assessment was completed at the end of 2017 and will serve as a basis for identifying/creating business cases to achieve sustainable and affordable FSM services for the urban poor in Tivaouane.

ADDITIONAL RESULTS

• GGGI and the Republic of Senegal signed a Host Country Agreement on 14 April 2017.

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PARTNERS

LOCAL

• Government institutions (Economic, Social and Environmental Council, Ministries in charge of Finance, Cities & Local Governance, Energy, Environment, Urban Planning, Transports, Hydraulics & Sanitation, Agriculture, Senegal Emerging Plan, Industry,

• Government Agencies (Guarantee Fund for Private Sector Investment – FONGIP, Sovereign Investment Fund – FONSIS, Bureau for Upgrading in Energy Efficiency – BMN,

• Association of Mayors of Senegal

• Association of Elected Officials

• Universities and Research Institutions (University Cheikh Anta Diop of Dakar - UCAD, Institute of Environmental Sciences - ISE, University Gaston Berger of Saint-Louis, CIFRES/CERER Research Centers

• Association of Professional Bankers & Financial Institutions (APBF)

• Private sector (Cooperative of Private Sector in Solar Energy - COPERES, THECOGAS Senegal LLC, Order of architects, Senegalese Urban Planners Association, Association Rice mills of the North

• Civil Society Organizations including the Confederation of NGOs - CONGAD, ENDA Energy, African urban management Institute (IAGU) and Energy4Impact

• Bilateral and Multilateral support agencies including African Development Bank – AfDB, Korean International Development Agency – KOICA, European Union – EU, French Development Agency (AFD) SUNREF : Public climate finance, Bill & Melinda Gates Foundation

LESSONS LEARNED• Need to combine policy / strategy works with demonstrative projects that are transformative to showcase the examples of green

growth initiatives.

• Long-term capacity development to target various audience based on the needs and interests.

• National financing vehicle crucial for bringing transformation to sector(s).

• Stakeholders engagement to be constantly assessed and adjusted based on the program evolution.

• Green growth financing gap assessment and support for resource mobilization to be at the heart of the supports to GoS.

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UGANDAUNLEASHING THE POTENTIAL OF UGANDA’S ECONOMY THROUGH

GREEN GROWTH

CONTEXTUganda’s primary development strategies, the Uganda Vision 2040 and the National Development Plan II (NDPII, 2015-2020), map out an ambitious growth agenda for the coming decades. Uganda aims to achieve an annual economic growth rate of 8.4% by the year 2025, and attain Upper Middle-Income Status by 2040. However, sustainable economic growth is threatened by the country’s vulnerability to climate change as 70% of the labor force is dependent on rain-fed agriculture. The Government of Uganda (GoU), therefore, has adopted a climate-centric economic model through the development, adoption and launching of the Uganda Green Growth Development Strategy (UGGDS) and Roadmap.

The UGGDS is designed to achieve an inclusive low emissions economic growth process that emphasizes effective and efficient use of natural, human and physical capital while ensuring that natural assets continue to provide for present and future generations. The strategy seeks to strengthen the technical and institutional capacity for the development of a greenhouse gas (GHG) national inventory system, nationally appropriate mitigation actions (NAMAs), and the associated measuring, reporting and verification (MRV) systems. However, a number of cross-sectoral barriers to a green growth transition have been identified, and need to be addressed as part of a green transition.

OVERALL OBJECTIVE• Support mainstreaming of green growth into development

planning as well as putting in place a favorable institutional enabling environment.

• Assist Uganda increase access to reliable, affordable energy for poor urban and peri-urban residents.

OVERVIEW

Country / Global implementation

UgandaLeast Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 1,198,964

% of budget disbursed 88%

HIGHLIGHTS• Completion and launch of the Uganda Green Growth

Development Strategy.

• Development of a Green Growth Implementation Roadmap.

• Organization of 7 capacity development and knowledge sharing events.

RELEVANT SDGs11.3. By 2030, enhance inclusive and sustainable urbanization and capacity for participator, integrated and sustainable human settlement planning and management in all countries.

12.4. By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment.

13.2. Integrate climate change measures into national policies, strategies and planning.

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OUTCOME 1 STATUS ON TRACK

The Government of Uganda at national and sub-national level adopts and implements green growth strategies, guidelines and plans.

GGGI supported completion and launch of the Uganda Green Growth Development Strategy (UGGDS) in November 2017, as well as the development of a costed Green Growth Implementation Roadmap, which adds numerical evidence to the strategy and informs the National Planning Authority (NPA), Ministry of Finance, Planning and Economic Development (MoFPED) and other Ministries, the financing gap required for a green growth transition to be achieved.

OUTPUT 1.2 STATUS ON TRACK

Develop and adopt Green City guidelines for 3 Secondary Cities.

• GGGI supported the Secondary cities of Gulu and Mbarara to develop Green Cities Development Action Plans and Guidelines. The Guidelines focus on Local Economic Development (LED); Micro, Small and Medium Enterprises (MSME) development, green jobs creation, infrastructure improvements, climate resilience building as well as social wellbeing. The 2 action plans have been discussed in the Municipal councils and are currently undergoing review by the Technical Committees (formed during consultations) before they are brought back for final stakeholder validation and adoption. These action plans have already been used to inform the Budget statements and of both Secondary cities for the financial year 2018-19.

OUTPUT 1.1 STATUS ON TRACK

Sector/sub-national level green growth plans and strategies are developed and implemented by the government.

• GGGI in Uganda supported the completion of the Uganda Green Growth Development Strategy (UGGDS) and the development of a costed Green Growth Implementation Roadmap. The UGGDS was officially launched on 22nd November 2017 by the Prime Minister of Uganda. GGGI will continue to support the mainstreaming of green growth in sub national/sectoral policies, in budgeting, implementation and financing mechanisms.

• GGGI supported the Ministry of Lands, Housing and Urban Development (MLHUD) to complete the National Urban Policy (NUP) and its Implementation plan. This was supported by the analysis conducted by GGGI’s partner; the New Climate Economy entitled Better Cities Better Growth which stressed the Need to invest and build Compact, Connected and Coordinated Cities (3Cs). The 3Cs concept was adopted by the National Urban Policy as well as the Green Cities Development Roadmap which forms part of the Implementation plan of the National Urban Policy. The NUP was approved by cabinet on 14th June 2017, its implementation is to commence in the 2018-19 financial year. GGGI is committed to support the implementation of this policy.

• GGGI has also supported Ministry of Water and Environment in the review and re-drafting of the National Environment Management Policy (NEMP) and the Climate Change Bill. Both pieces of legislation are aligned with green growth and are meant to set Uganda on a low emissions growth path. In addition, GGGI is also supporting the Ministry of Water and Environment to mainstream green growth into the Sector Investment Plan. This is still an ongoing process.

• GGGI is working with the Ministry of Energy and Mineral Development to review the Renewable Energy Policy, Develop Renewable Energy Roadmap and Investment Plan. The Initial Consultations have taken place, the bulk of the work will be undertaken in 2018.

RESULTS ACHIEVED IN 2017

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OUTPUT 1.3 STATUS ON TRACK

Capacity Development and knowledge sharing for Green Growth effectively implemented.

• GGGI conducted a total of 7 capacity development and knowledge sharing events. Working closely with the Ministry of Energy, and Mineral Development GGGI convened and trained stakeholders on Energy and green growth transition within the energy sector.

• In Urban Development, a convening of all Urban Development Sector Working Group (UDSWG) actors took place and deliberated on the need to harmonize urban development interventions and develop an infrastructure corridor and plan. The donors led by DFID and the World Bank, also Co-Chairs of the Donor Group on Urban Development called for the establishment and formalization of this UDSWG. The National Planning authority has since launched a process of developing urban development, physical planning and infrastructure development harmonization Guidelines as a result of this capacity building engagement.

• A Water and Environment Sector Capacity building session was organized in November 2017 with the purpose of discussing green growth in the context of the Water and Environment sector. The session focused on harmonization and prioritization of the water and environment sector in National development. It also agreed a clear roadmap on the development of Regulatory Impact Assessments for the National Environment Management Policy (NEMP), the Water Policy and the Climate Change Bill. The Session was also an opportunity for discussing the Uganda Green Growth Development Strategy (UGGDS) and charting a way of mainstreaming it in the Water and Environment sector.

• In October 2017, GGGI supported senior government officials from the Ministry of Lands, Housing and Urban Development (MLHUD); Ministry of Finance, Planning and Economic Development (MoFPED); Ministry of Water and Environment (MoWE); Kampala Capital City Authority (KCCA); National Environment Management Authority (NEMA) and Makerere University to participate in the Global Green Growth Week (GGGW 2017) in Addis Ababa; the Africa and Middle East (AME) Knowledge Sharing Platform and; the World Green Economy Summit in Dubai, UAE.

• In May 2017, the GGGI supported the MLHUD Minister and Commissioner to participate in the International Conference on National Urban Policies and Implementation of 2030 and New Urban Agenda. The Government of Uganda in this Conference outlined the country’s development goals and vulnerability to climate change and other challenges linked to rapid demographic increase and urban unemployment. The presentation highlighted also opportunities for the socio – economic transformation of the country, which will be facilitated by the NUP and Implementation Action Plan. This is the process that GGGI is supporting the MLHUD to expedite in addition to the mainstreaming of green growth in the sectors’ planning and budgeting cycle.

OUTCOME 2 STATUS ON TRACK

Bankable projects in waste to energy sector developed in the GKMA.

• Despite delays in the start of the implementation of the actions under this outcome area due to need to create an enabling environment i.e. development of the National Urban Solid Waste Management Policy (NUSWMP), all the foundation activities planned for the year were later fast tracked. These included Policy gap assessment and recommendations on regulatory improvements (within existing policies) for supporting integrated waste-to-energy projects; pre-feasibility to identify best technology/approach/sites for municipal solid waste to energy sub-sector development with special attention being paid to the views of for peri-urban MSMEs, social inclusion and gender aspects and value chain analysis of the waste to resource sector.

• It is however important to note that, much as the original focus of the outcome area was Waste to Energy, initial scoping studies and consultation broadened the scope of the outcome to Waste to Resource including Energy. A feasibility study and bankable project shall then be delivered in 2018 year.

OUTPUT 2.1 STATUS ON TRACK

Policy assessment and feasibility study for integrated waste-to-energy project to maximize municipal waste to energy in Kampala City conducted.

• Green Growth diagnostics and scoping for this output revealed that an enabling policy framework was not yet in place for the feasibility to take place. Consequently, a policy assessment had to be conducted which revealed the strengths, weaknesses and prospects of the existing policy regime. The scoping recommended supporting the Ministry of Lands, Housing and Urban Development (MLHUD) in completing the National Urban Solid Waste Management Policy (NUSWMP) and Implementation Plan.

• Through a consultant, GGGI supported the Ministry of Lands, Housing and Urban Development to complete the NUSWMP, its Implementation Plan and Regulatory Impact Assessment (RIA). The Regulatory Impact Assessment (RIA) is a cabinet requirement for all new policies seeking cabinet approval. They must prove and exemplify the legal, institutional and financial implications of the intended policy on government. The process of developing the policy, its implementation plan and RIA has now been completed and policy documents await cabinet approval. The NUSWMP policy is well aligned with green growth agenda and mandate of turning waste into a resource.

• GGGI has undertaken a prefeasibility study to assess the most suitable high impact intervention areas where GGGI can develop bankable projects as well as deepen investments.

RESULTS ACHIEVED IN 2017

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OUTPUT 2.2 STATUS ON TRACK

Design waste-to-energy pilot project for Kampala City and submit proposal to Government for approval with potential funding proposal.

• This output faced a similar challenge as output 3 and had to await the completion of the NUSWMP. In addition, working closely with the Kampala Capital City Authority (KCCA), GGGI was requested to hold until the Waste Management Teaser was released. The teaser was signed off in October 2017 thus delaying the commencement of the output. Since the launch of the teaser, and completion of the NUSWMP, a consultant has been hired and produced an anecdotal frame draft. A final report is expected by end of January 2018.

• GGGI made efforts have been made to develop and complete proposals on a) Solar Home Systems Proposal funded up to a total of million USD by the Dutch Embassy in Uganda; b) Energy for Water proposal submitted and in the final approval stages by the Hungarian Government as initial efforts to implement the UGGDS and associated roadmaps and policies.

RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• As part of GGGI’s support to Uganda, a Country Planning Framework (CPF) has been developed and completed. The 5-year framework was approved by the GGGI management team in November 2017 and will be launched in February 2018. The CPF focusses on supporting Uganda’s green growth transition through a multi-sectoral approach focusing on the Energy, Green Cities and Water Sectors. The Framework also proposes Mobilization of Resources for implementation of the Uganda Green Growth Development Strategy.

• In a bid to promote the transparency mechanism espoused by the Paris Agreement and enshrined in Uganda’s NDC, GGGI has led the process of developing the Measurement, Reporting and Verification (MRV) system for Uganda. This work is in initial stages and expected to run through 2018 and 2019/20 biennium.

• As a transition mechanism from policy support to green finance mobilization for government, GGGI in 2017 also initiated support to government of Uganda especially the Kampala Capital City Authority’s accreditation process a Direct Access Entity (DAE) to the GCF. The accreditation support is expected to continue in 2018 and it will come along with capacity building and support to pipeline project development to the GCF.

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PARTNERS

LOCAL

• Ministry of Finance, Planning and Economic Development,

• Ministry of Water and Environment - Climate Change Department

• Ministry of Energy and Mineral Development

• Ministry of Lands, Housing and Urban Development

• National Planning Authority

• National Environment Management Authority

• Kampala Capital City Authority

• Private Sector such as PSFU, USSIA, UMA, Solar Now, Village Power, Mandulis Energy, Barefoot Solar

• ACODE

• EPRC

INTERNATIONAL

• Multilateral institutions including UNDP, UN-Habitat.

• Other partners including the New Climate Economy (NCE) and IIED.

LESSONS LEARNED• The process of the developing sub national policy frameworks and actions plans is very iterative and requires buy-in from multiple

sources and institutions. In GGGI’s case the Green Cities Action Plans had to combine MLHUD, MoLG officials, Ministry of Water, Agriculture, Environment, Youth and Women as well as crucial groups such as slum dwellers so as to be accepted. This process requires capacity building actions for these groups and allowing time for the process of adoption to happen.

• Capacity building and knowledge sharing events are crucial in bridging the gap between GGGI and high-level government officials. They also provide a good opportunity for deepening relations with partners and country teams.

• Having the correct policy framework in place/addressing the policy environment is as essential to success as the intended intervention. It is important to anchor all GGGI’s interventions within national policy frameworks.

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CAMBODIAGREEN URBAN DEVELOPMENT

PROGRAM - PHASE II

CONTEXTCambodia’s urban areas account for around 30% of the total population of 15 million and is expected to rise to an estimated 44% of a total population of around 18.4 million by 2030. The population increase of its capital city, Phnom Penh, has been driven by a shift from a rural to urban economy, and currently represents around 41% of the country’s urban population. Likewise, Cambodia’s secondary cities such as Battambang, Siem Reap, Sihanouk Ville, Kampot, Kep, Soung (the newly established city), and Bavet (Border city) are also undergoing rapid urban growth.

The rapid pace of unstructured urbanization is generating significant social, economic and environmental challenges in the country. Further, the country’s secondary cities face a severe lack of systematic development planning, and financial resources for green infrastructure and services. This will exacerbate a number of urban challenges the country is already facing in the form of:

• Unstructured urbanization and privatization of infrastructure development

• Under supply of urban infrastructure, including transport infrastructure and traffic management measures

• Increased urban vulnerability in the form of urban flooding and air pollution

• Insufficient municipal solid waste management

• Housing shortages and informal settlements

OVERALL OBJECTIVE• Provide green urban development interventions to deliver

socioeconomic and public health benefits.

• Support investments in green growth-related infrastructure in secondary cities along major economic corridors.

OVERVIEW

Country / Global implementation

CambodiaLower Middle Income Country (LMIC)

Thematic area Green City Development

Project start date Q1 2017

Funding source Core

2017 budget USD 800,630

% of budget disbursed 79%

HIGHLIGHTS• The Sustainable City Strategic Plan was developed

and submitted to the government counterpart for official endorsement.

RELEVANT SDGs11.3. By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management in all countries.  

13.2. Integrate climate change measures into national policies, strategies, and planning

17.9. Enhance international support for implementing effective targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North–South, South–South and triangular cooperation.

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OUTCOME 1 STATUS ACHIEVED

Strong support and commitment for green cities development and policy initiatives, as well as for institutional reform from the Royal Government of Cambodia (RGC) through the Ministry of Environment (MoE).

The Sustainable City Strategic Plan, originally titled National Strategic Plan for Green Secondary Cities was completed and received strong support from the government counterparts both at the national and subnational levels.

OUTCOME 2 STATUS ON TRACK

Increased sustainability of the program through financial feasibility analysis for projects; and the long-term ability for government counterparts to prioritize, develop, and mobilize financing for green urban projects in secondary cities.

OUTPUT 1.1 STATUS ACHIEVED

Develop a Sustainable City Strategic Plan and submit to government.

• The Strategic Plan was developed drawing on the experiences of the Phnom Penh Green City Strategic Plan and applying the Green City Strategic Planning Methodology. GGGI assessed existing master plans and city-planning documents for secondary cities to identify gaps and policy recommendations and a situation analysis on the ground. In various multi-stakeholders and experts’ consultations, the Strategic Plan was successfully developed and presented to the NCSD and Ministry of Interior.

• Under this output, the Program Management Unit (PMU) was established, consisting of members from both GGGI (country team) and the officials from government implementing partners (NCSD and MoI). The PMU plays a significant role in monitoring and coordinating the implementation of all the activities that lead to the achievement of the output. Furthermore, it symbolizes the joint ownership of the output to achieve a common goal.

• Three multi-stakeholder consultations and capacity development workshops were held during the development of the Strategic Plan and were attended by representatives from key ministries of the national government, municipalities, and local authorities from the seven selected secondary cities. The workshop programs discussed various green city development related topic such as solid waste management transport, waste water and sanitation, energy and prioritization of green city projects.

RESULTS ACHIEVED IN 2017

OUTPUT 2.1 STATUS ON TRACK

Develop a list of prioritized green growth investment opportunities in secondary cities for submission to potential funders.

A list of 100 priority green city actions was developed after many rounds of thorough consultation with the national and sub-national government. The list will be further shortlisted to 10 projects for which a detail concept note will be produced for each project. Out of the 10 projects, one will be selected for a pre-feasibility study.

OUTCOME 3 STATUS DROPPED

Improved transport policies and investment planning in Phnom Penh to contribute to reductions in traffic congestion and air pollution.

The output was dropped after a background study on parking reform in Phnom Penh was completed. The background analysis laid the groundwork for a prioritized green transport project, identified in the Phnom Penh Green City Strategic Plan 2017–2026. This study identified interventions, including the development of a parking plan, improvement of the regulatory support framework, development of parking management and information systems, and the development of a private sector concession model for parking management. It is envisaged that these measures will alleviate problems and externalities caused by uncontrolled on-street and sidewalk parking. However, the output was dropped because of the lack of engagement of the municipality and the budget was reallocated to a urban waste water output which was highly supported by MoE and MPWT.

OUTCOME 4 STATUS ON TRACK

Improved the enabling environment for investment in Cambodia’s urban waste water and sanitation.

OUTPUT 4.1 STATUS ON TRACK

Develop institutional mechanism and capacity for government and stakeholders in the area of urban waste water management

• GGGI provided inputs to the draft sub-decree on the management of sewer system and wastewater treatment system. Currently, the sub-decree was officially approved and endorsed by the RGC on December 25, 2017.

• GGGI also conducted a scoping study on wastewater treatment in secondary cities, looking into institutional arrangement, technical and financial management of the existing treatment plants. The detailed report was presented to the government counterparts – NCSD and MPWT. This scoping study lays the groundwork for the official engagement between GGGI and MPWT in the sector commencing in 2018. An MOU between GGGI and the RGC through the MPWT was signed and the proposed work plan for 2018 was reviewed and approved by the MPWT in 2017. In 2018, GGGI will support MPWT to set up a sub-TWG on urban waste water and sanitation and develop a guideline to facilitate the implementation of the sub-decree.

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PARTNERS

LOCAL

• National Council for Sustainable Development (NCSD)

• Ministry of Interior (MoI), through the General Department of Administration (GDA)

• Ministry of Economic and Finance (MoEF)

• Ministry of Public Works and Transport (MPWT)

• Ministry of Land Management, Urban Planning and Construction (MLMUPC)

• Ministry of Environment (MoE)

• Ministry of Mines and Energy (MME)

• Ministry of Tourism, the National Committee for Clean City Assessment

• Provincial Hall and relevant Provincial Departments for selected secondary cities

• Cambodia Climate Change Alliance (CCCA)

• Cambodia Institute for Urban Studies (CIUS)

• The NGO Forum on Cambodia

INTERNATIONAL

• Agence française de développement (AfD)

• Asian Development Bank (ADB)

• Japan International Cooperation Agency (JICA)

• European Union (EU)

• UNDP

• UNIDO

• UN-Habitat

• The World Bank Group

• GERES

• Nexus

LESSONS LEARNED• Setting up a Program Management Unit (PMU) at the early stage provides many advantages. The PMU plays a significant role in

monitoring and coordinating the implementation of all the activities that has led to the achievement of the outputs.

• Strong government’s support and engagement is central to the program’s success. At the beginning of the program, we strategically selected NCSD to support us at the national level, and Ministry of Interior to facilitate our work with the sub-national government.

• Maintain flexibility in program management is important in navigating a complex bureaucratic government procedure.

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CAMBODIAGREEN URBAN DEVELOPMENT

PROGRAM - PHASE II

CONTEXTCambodia’s urban areas account for around 30% of the total population of 15 million and is expected to rise to an estimated 44% of a total population of around 18.4 million by 2030. The population increase of its capital city, Phnom Penh, has been driven by a shift from a rural to urban economy, and currently represents around 41% of the country’s urban population. Likewise, Cambodia’s secondary cities such as Battambang, Siem Reap, Sihanouk Ville, Kampot, Kep, Soung (the newly established city), and Bavet (Border city) are also undergoing rapid urban growth.

The rapid pace of unstructured urbanization is generating significant social, economic and environmental challenges in the country. Further, the country’s secondary cities face a severe lack of systematic development planning, and financial resources for green infrastructure and services. This will exacerbate a number of urban challenges the country is already facing in the form of:

• Unstructured urbanization and privatization of infrastructure development

• Under supply of urban infrastructure, including transport infrastructure and traffic management measures

• Increased urban vulnerability in the form of urban flooding and air pollution

• Insufficient municipal solid waste management

• Housing shortages and informal settlements

OVERALL OBJECTIVE• Provide green urban development interventions to deliver

socioeconomic and public health benefits.

• Support investments in green growth-related infrastructure in secondary cities along major economic corridors.

OVERVIEW

Country / Global implementation

CambodiaLower Middle Income Country (LMIC)

Thematic area Green City Development

Project start date Q1 2017

Funding source Core

2017 budget USD 800,630

% of budget disbursed 79%

HIGHLIGHTS• The Sustainable City Strategic Plan was developed

and submitted to the government counterpart for official endorsement.

RELEVANT SDGs11.3. By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management in all countries.  

13.2. Integrate climate change measures into national policies, strategies, and planning

17.9. Enhance international support for implementing effective targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North–South, South–South and triangular cooperation.

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OUTCOME 1 STATUS ON TRACK

Strong support and commitment for green cities development and policy initiatives, as well as for institutional reform from the Royal Government of Cambodia (RGC) through the Ministry of Environment (MoE).

The Sustainable City Strategic Plan, originally titled National Strategic Plan for Green Secondary Cities was completed and received strong support from the government counterparts both at the national and subnational levels.

OUTCOME 2 STATUS ON TRACK

Increased sustainability of the program through financial feasibility analysis for projects; and the long-term ability for government counterparts to prioritize, develop, and mobilize financing for green urban projects in secondary cities.

OUTPUT 1.1 STATUS ACHIEVED

Develop a Sustainable City Strategic Plan and submit to government.

• The Strategic Plan was developed drawing on the experiences of the Phnom Penh Green City Strategic Plan and applying the Green City Strategic Planning Methodology. GGGI assessed existing master plans and city-planning documents for secondary cities to identify gaps and policy recommendations and a situation analysis on the ground. In various multi-stakeholders and experts’ consultations, the Strategic Plan was successfully developed and presented to the NCSD and Ministry of Interior.

• Under this output, the Program Management Unit (PMU) was established, consisting of members from both GGGI (country team) and the officials from government implementing partners (NCSD and MoI). The PMU plays a significant role in monitoring and coordinating the implementation of all the activities that lead to the achievement of the output. Furthermore, it symbolizes the joint ownership of the output to achieve a common goal.

• Three multi-stakeholder consultations and capacity development workshops were held during the development of the Strategic Plan and were attended by representatives from key ministries of the national government, municipalities, and local authorities from the seven selected secondary cities. The workshop programs discussed various green city development related topic such as solid waste management transport, waste water and sanitation, energy and prioritization of green city projects.

RESULTS ACHIEVED IN 2017

OUTPUT 2.1 STATUS ON TRACK

Develop a list of prioritized green growth investment opportunities in secondary cities for submission to potential funders.

A list of 100 priority green city actions was developed after many rounds of thorough consultation with the national and sub-national government. The list will be further shortlisted to 10 projects for which a detail concept note will be produced for each project. Out of the 10 projects, one will be selected for a pre-feasibility study.

OUTCOME 3 STATUS DROPPED

Improved transport policies and investment planning in Phnom Penh to contribute to reductions in traffic congestion and air pollution.

The output was dropped after a background study on parking reform in Phnom Penh was completed. The background analysis laid the groundwork for a prioritized green transport project, identified in the Phnom Penh Green City Strategic Plan 2017–2026. This study identified interventions, including the development of a parking plan, improvement of the regulatory support framework, development of parking management and information systems, and the development of a private sector concession model for parking management. It is envisaged that these measures will alleviate problems and externalities caused by uncontrolled on-street and sidewalk parking. However, the output was dropped because of the lack of engagement of the municipality and the budget was reallocated to a urban waste water output which was highly supported by MoE and MPWT.

OUTCOME 4 STATUS ON TRACK

Improved the enabling environment for investment in Cambodia’s urban waste water and sanitation.

OUTPUT 4.1 STATUS ON TRACK

Develop institutional mechanism and capacity for government and stakeholders in the area of urban waste water management

• GGGI provided inputs to the draft sub-decree on the management of sewer system and wastewater treatment system. Currently, the sub-decree was officially approved and endorsed by the RGC on December 25, 2017.

• GGGI also conducted a scoping study on wastewater treatment in secondary cities, looking into institutional arrangement, technical and financial management of the existing treatment plants. The detailed report was presented to the government counterparts – NCSD and MPWT. This scoping study lays the groundwork for the official engagement between GGGI and MPWT in the sector commencing in 2018. An MOU between GGGI and the RGC through the MPWT was signed and the proposed work plan for 2018 was reviewed and approved by the MPWT in 2017. In 2018, GGGI will support MPWT to set up a sub-TWG on urban waste water and sanitation and develop a guideline to facilitate the implementation of the sub-decree.

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PARTNERS

LOCAL

• National Council for Sustainable Development (NCSD)

• Ministry of Interior (MoI), through the General Department of Administration (GDA)

• Ministry of Economic and Finance (MoEF)

• Ministry of Public Works and Transport (MPWT)

• Ministry of Land Management, Urban Planning and Construction (MLMUPC)

• Ministry of Environment (MoE)

• Ministry of Mines and Energy (MME)

• Ministry of Tourism, the National Committee for Clean City Assessment

• Provincial Hall and relevant Provincial Departments for selected secondary cities

• Cambodia Climate Change Alliance (CCCA)

• Cambodia Institute for Urban Studies (CIUS)

• The NGO Forum on Cambodia

INTERNATIONAL

• Agence française de développement (AfD)

• Asian Development Bank (ADB)

• Japan International Cooperation Agency (JICA)

• European Union (EU)

• UNDP

• UNIDO

• UN-Habitat

• The World Bank Group

• GERES

• Nexus

LESSONS LEARNED• Setting up a Program Management Unit (PMU) at the early stage provides many advantages. The PMU plays a significant role in

monitoring and coordinating the implementation of all the activities that has led to the achievement of the outputs.

• Strong government’s support and engagement is central to the program’s success. At the beginning of the program, we strategically selected NCSD to support us at the national level, and Ministry of Interior to facilitate our work with the sub-national government.

• Maintain flexibility in program management is important in navigating a complex bureaucratic government procedure.

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CAMBODIAKEP SOLAR DEVELOPMENT

PROJECT (KSDP)

CONTEXTIn support of the Government of Cambodia aimed to develop the City of Kep as an eco-tourism destination, GGGI developed and proposed the Kep Solar Development Project (KSDP)as a key component of this strategic vision. KSDP was focused on Kep Province and neighboring Kampot Province and envisaged to help scale up solar development in Cambodia. The project was identified and prioritized from a pipeline of projects developed under the current Country Planning Framework (CPF) 2016-2020 with Cambodia. Following the prioritization of projects, the Government of Cambodia requested GGGI for assistance to develop the project and help mobilize financing.

OVERALL OBJECTIVE• Contribute to reducing Cambodia’s greenhouse gas emissions

outlined in the country’s NDC targets by catalyzing the solar market and replace/reduce the deployment of more expensive and polluting power generation alternatives.

OVERVIEW

Country / Global implementation

CambodiaLower Middle Income Country (LMIC)

Thematic area Energy

Project start date Q1 2017

Funding source Core

2017 budget USD 26,766

% of budget disbursed 100%

2017 STATUS• GGGI’s scoping team identified three relevant options for

solar development for consideration by the Government of Cambodia (GOC). The options include a single 5 MW solar plant, a phased 2*5MW solar plant, and roof top solar primarily targeted at the commercial and household consumer segments in urban centers country-wide. In addition, the team designed an innovative corporate social responsibility (CSR) component and associated financing mechanism (“The Green Jobs Fund”) that would initially be linked to the KSDP but was designed to be mainstreamed into private sector projects and scaled up as the solar market mature.

• During a July 2017 mission, GGGI presented the proposed arrangements for KSDP at a stakeholder meeting chaired by the Minister of Environment (MOE). This meeting was regarded as essential secure the commitment of sector stakeholders, including the Ministry of Mines and Energy (MME), Electricité du Cambodge (EDC) and the Electricity Authority of Cambodia (EAC), confirm the offtake from KSDP through a power purchase agreement (PPA) between the project company and EDC, and issue a generation license and sharing of relevant data and technical requirements to prepare the technical specification.

• While the Minister of Environment re-iterated MOE’s support for KSDP, no commitment was articulated from energy sector stakeholders (MME, EDC, and EAC) to advance the requirements for project preparation. Following the stakeholder meeting separate discussions were held with EDC and subsequently with senior levels of MME. EDC expressed that they would not be interested in pursuing a PPA and deferred to MME. MME clarified that EDC had put in place PPA commitments for an additional 700 MW of coal and hydro and that no further capacity additional would be required until 2023. MME further clarified it would not support the preparation of KSDP.

• Decision made to cancel project preparation based on the strategic direction of sector stakeholders.

RELEVANT SDGs7. Ensure access to affordable, reliable, sustainable and modern energy for all.

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

13. Take urgent action to combat climate change and its impacts.

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PARTNERS

LOCAL

• Ministry of Environment (MOE)

• National Council for Sustainable Development (NCSD)/Ministry of Environment

• Ministry of Mines and Energy (MME)

• Electricité du Cambodge (EDC) – the offtaker

• Electricity Regulator of Cambodia (EAC)

• Kep Provincial Government

INTERNATIONAL

• Financiers: OikoCredit, Proparco, AFD, Green Climate Fund

• Private sector: Project sponsors, solar companies, Mekong Strategic Partners (fund managers)

• Donor and guarantor: Swedish International Development Authority (Sida)

LESSONS LEARNED• The relevant policy dialogue was difficult given that GGGI

was not embedded with the sector ministry (MME) and had no sector expertise on the ground to follow through after the team’s missions.

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CAMBODIAPOLICY ALIGNMENT FOR

GREEN GROWTH

CONTEXTThe current phase of Cambodia’s Rectangular Strategy and National Strategic Development Plan (NSDP) and will end in 2018. Achieving Cambodia’s international commitments – articulated through the Sustainable Development Goals (SDGs) and the Nationally Determined Contribution (NDC), as well as green growth aspirations – reflected in the National Green Growth Policy (2013) and National Green Growth Strategic Plan (2013-2030) – will necessitate integrated and coherent policy planning and implementation. The design of the Cambodia’s overarching planning document – which will be released in 2019 – thus provides a window of opportunity to align and prioritize policy priorities to fast-track the achievement of development and green growth objectives.

Critical success factors in this program include:

• Green growth interventions need to be built into sectoral plans and budgets as the NSDP is formulated based on sectoral mandates and priorities. the incorporation of green growth in the Rectangular Strategy, NSDP and relevant sector plans is based on robust technical analysis; and

• The implementation of these targets is aided by institutionalized and systematic monitoring and investment prioritization.

OVERALL OBJECTIVE• Strengthen national planning processes through prioritizing and

integrating green growth priorities towards the achievement of Cambodia’s Sustainable Development Goals (SDGs) and Nationally Determined Contribution.

OVERVIEW

Country / Global implementation

CambodiaLower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 660,706

% of budget disbursed 69%

HIGHLIGHTS• A national-level green growth potential assessment (GGPA)

was conducted in consultation with sector-wide stakeholders identified 4 pertinent areas for green growth: adaptive capacity, renewable energy, natural capital management, industrial productivity.

• Evidence-based policy priorities, instruments and investment requirements in greening the industrial sector were underpinned by an integrated cost benefit analysis utilizing system dynamic modeling.

• Indicators to track green growth performance in the industrial sector were proposed to strengthen the localization and implementation of relevant SDGs in Cambodia in the NSDP.

RELEVANT SDGs13.2. Integrate climate change measures into national policies, strategies, and planning.

13.a. Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate change to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible.

17.14. Enhance policy coherence for sustainable development.

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OUTCOME 1 STATUS ON TRACK

Government incorporates recommended policy priorities that support commitments (e.g. CSDG, NDC) relevant to green growth in the next phase of the Rectangular Strategy and National Strategic Development Plan (NSDP) 2019-2023

In 2017, GGGI conducted the Green Growth Potential Assessment (GGPA), which helped paved the way for further analysis to identify relevant green growth interventions in the industrial sector. Both contribute to the shaping of the green growth elements for the next phase of the Rectangular Strategy and NSDP.

OUTPUT 1.1 STATUS DELAYED

Assessment of the green growth potential of Cambodia undertaken and submitted to the Government.

• The Green Growth Potential Assessment (GGPA), is a diagnostic tool consisting of a combination of data analysis and stakeholder consultation, to identify and prioritize a country’s opportunities for green growth.

• A preliminary assessment for Cambodia was carried out, highlighting several areas where green growth interventions can support development in Cambodia, including using renewable energy for improving rural livelihoods and competitiveness, addressing deforestation, increasing agricultural productivity, strengthening adaptive capacity to the adverse impacts of climate change, and improving waste management. On July 27, the results of the preliminary assessment were presented and confirmed at a consultation workshop.

• During the consultation workshop, stakeholders identified five green growth priorities. These are: (1) improve productivity and resource efficiency, (2) increase adoption of renewable energy to improve competitiveness and rural livelihoods, and (3) strengthen adaptive capacity to increase economic resilience. The remaining priorities are (4) good governance and (5) education which were regarded as cross-cutting and enablers for advancement in the first three areas

• The country report, scheduled for April 2018, will analyze obstacles and opportunities regarding the identified green growth priorities, and suggest a set of recommendations. The results and recommendations of the GGPA will be shared with the Program Working Group (including SNEC that is leading the development of the Rectangular Strategy) to highlight green growth priorities and opportunities.

RESULTS ACHIEVED IN 2017

OUTPUT 1.2 STATUS DELAYED

Develop recommended policy priorities for the successor documents to the ‘Rectangular Strategy 2014-18’ and ‘National Strategic Development Plan 2014-18.

• Following the GGPA-identified priorities highlighted above, the industrial sector was selected for a deep dive to determine how a green growth approach could contribute to more inclusive and sustainable industrial development. The RGC regards it as a priority sector in achieving Cambodia’s economic vision to become an upper-middle income country by 2030.

• In order to develop a robust economic case for the integration of green growth priorities and targets in relevant sector plan(s) and the NSDP, the approach entailed a mix of quantitative and qualitative analysis that utilized system dynamic modeling and cost benefit analyses tools.

• Through extensive consultations including the program working group meetings, two national-level workshops, focus group and bilateral discussions, scenarios have been developed to quantify cross-sector impacts of greening the sector in relation to economic, social and environmental performance. Special consideration was also given to important variables including material intensity, energy and water efficiency labor productivity, environmental pollution, and GHG emissions.

• The report, scheduled for May 2018, will highlight evidence-based policy priorities and instruments and potential investment requirements, with the aim of supporting policymakers in rationalizing the transition towards green growth pathways and informing further regulatory and incentive policies.

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PARTNERS

LOCAL

• National Council for Sustainable Development (NCSD)

• Supreme National Economic Council (SNEC)

• Ministry of Economic and Finance (MEF)

• Ministry of Planning (MoP)

• Ministry of Industry and Handicraft (MIH)

• Ministry of Environment (MoE)

• Ministry of Mines and Energy (MME)

• Council for the Development of Cambodia (CDC)

• Royal University of Phnom Penh (RUPP)

• Cambodia Development Resource Institute (CDRI)

• The NGO Forum on Cambodia (NGOF)

INTERNATIONAL

• UNDP

• UNIDO

• GERES

• IFC

LESSONS LEARNED• The establishment of the Program Working Group (PWG), consisting of members from GGGI (country team) and representatives from

the program partners i.e. NCSD, SNEC, MEF, and MoP formalizes cooperation and secures commitment from counterparts. The PWG is a mechanism for receiving overall guidance and feedback on the program approach, reviewing technical deliverables, facilitating communication and ensuring ownership in respective ministries.

• Understanding the political economy and its influence on policy development is critical in shaping approaches for technical assistance in policy-focused projects. In the case of Cambodia, policy development (including dialogue) is driven primarily by sectoral priorities and ministries and is a time-intensive process.

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CHINAGLOBAL AND REGIONAL KNOWLEDGE SHARING

CONTEXTWhile China aims to invest heavily into infrastructure projects in the developing countries in line with the China’s Belt and Road Initiative (BRI) following a green path, the country has little experience on green cooperation with other developing countries. To overcome this gap knowledge sharing, cooperation and platform building is required to open conduits for cooperation and future project work on green development and investments along the BRI path.

OVERALL OBJECTIVES• Accelerate global partner INDCs through global and regional

knowledge sharing of China’s green growth experience to support adoption of green growth policies in GGGI member and partner countries.

• Support green investment-enabling policies, technologies and platforms, through cooperation with China and other countries.

• Identify new and accelerate existing green policy and project deployment in GGGI Member Countries along the Belt and Road Initiative path.

OVERVIEW

Country / Global implementation

China Upper Middle Income Country (UMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 697,937

% of budget disbursed 82%

HIGHLIGHTS• Ten knowledge sharing events engaging stakeholders from 13

countries to enhance their capacity to implement green growth in their home countries.

RELEVANT SDGs13.3. Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

17.9. Enhance international support for implementing effective and targeted capacity building in developing countries to support national plans to implement al the sustainable development goals, including through North-South, South-South and triangular cooperation.

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RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ACHIEVED

Chinese partners demonstrate capacity to co-deliver high quality knowledge sharing events based on feedback from participants.

In Cooperation with NDRC’s Office of Climate Change, GGGI China team has coordinated with 13 other Country Offices and governments to nominate and sponsor 56 relevant officials, over 5 knowledge sharing events, in 2017 from GGGI member countries to China as part of the China Climate Change Seminar Program for Belt and Road Countries. This outcome is on track with its intended timeline for completion by the end of 2018.

OUTCOME 2 STATUS ON TRACK

Green growth lessons shared by Chinese partners are applied by policy makers from other countries.

100% of participants in the knowledge sharing program agreed that 1) their capacity to implement green growth has increased from knowledge provided by this program, and 2) they will be able to adopt lessons learned toward policies and programs they are responsible for in their home countries. Participants benefiting from the Program came from Cambodia, Ethiopia, Indonesia, Laos, Mongolia, Nepal, Philippines, Uganda, Hungary, Morocco, Myanmar, UAE, and Thailand. This outcome is on track with its intended timeline for completion by the end of 2018.

OUTPUT 1.1 STATUS ACHIEVED

Develop China capacity to collect and exchange best practices, successes, and lessons learned on green growth through the delivery of high quality knowledge sharing events (2017).

China team has completed 10 knowledge sharing events delivering clear green growth knowledge, policy and cooperation impacts with each one to GGGI Member Country Stakeholders.

OUTPUT 1.2 STATUS ACHIEVED

Regional knowledge sharing activities conducted events delivered with Chinese partners on priority topics linked to GGGI China country activities (2017).

GGGI conducted one knowledge multilateral sharing events bringing together Member Country stakeholders with regional influence to share green growth experiences, and collaborate on future projects, resulting in planned green project work in collaboration with China in 2018 and beyond.

OUTPUT 2.1 STATUS ON TRACK

Chinese best practices in green growth collected and shared with countries in the region.

This output is on track with its intended timeline for completion by the end of 2018.

ADDITIONAL RESULTS

• International knowledge events were conducted in cooperation and partnership with two vital Chinese government entities, the National Development and Reform Commission (NDRC) and the Ministry of Environmental Protection (MEP), now the Ministry of Ecology and Environment.

• Knowledge sharing roundtables were conducted with each participant delegation collecting feedback on the capacity building portion, areas of green growth knowledge enhancement, and more importantly, potential areas for future green project collaboration in their countries. Based partly on this feedback, under China Program’s longer-term mission to support Greening the Belt and Road initiative, bilateral green project work with Mongolia, Jordan, Indonesia, Ethiopia and Philippines are to be initiated in 2018, fully utilizing the project and cooperation priming function of our knowledge sharing services.

• GGGI in China has also served a flashpoint and hub supporting more than 15 delegation visits related to our Member Country programming in 2017, resulting in concrete project cooperation moving forward.

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PARTNERS

LOCAL

• China National Development and Reform Commission (NDRC)

• China Ministry of Environmental Protection (MEP)

• China ASEAN SCO Center for Environmental Cooperation (CSEC)

• China Council for International Cooperation on Environment and Development (CCICED)

• China Energy Research Institute (ERI)

• China National Center for Climate Strategy and International Cooperation (NCSC)

• China National Institute for Standards (CNIS)

• China General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ)

• China Energy Conservation Association (EMCA)

• China Association of ESCOs

• Elion Resources Group (China)

• China National Renewable Energy Centre

INTERNATIONAL

• The Governments of Denmark, U.K., Cambodia, Ethiopia, Indonesia, Laos, Mongolia, Nepal, Philippines, Uganda, Hungary, Morocco, Myanmar, UAE, Uganda, Vietnam, Rwanda, Jordan and Thailand.

• World Wide Fund for Nature (WWF)

• United Nations Environment (UNEP)

• International Bamboo and Rattan Organization (INBAR)

• Institute for Sustainable Communities (ISC)

• Energy Foundation

• The Nature Conservancy

• The International Network for Bamboo and Rattan

• Global Environmental Institute

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FIJISUPPORTING THE

IMPLEMENTATION OF THE GREEN GROWTH FRAMEWORK FOR

FIJI – PHASE II

CONTEXTThe Republic of the Fiji Islands comprises of over 320 islands. The two largest islands, Viti Levu and Vanua Levu make up three quarters of the land areas and 70% of the population reside on Viti Levu. Fiji’s economy is driven by tourism, agriculture, fisheries, manufacturing and the financial sector. Climate change has become a growing concern for Fiji’s economy and the livelihood of its people.

Key challenges facing Fiji include:

• Vulnerability to external shocks, including climate change and financial crises.

• High dependence on imported fossil fuels.

• Declining terrestrial and marine biodiversity, resulting from unsustainable land management and coral reef degradation.

• Difficulties in the provision of sufficient infrastructure and services in both urban and rural contexts.

Fiji has a huge potential in green growth, including increasing renewable energy generation capacity, and moving toward more sustainable transportation services and technologies. In 2014 the Government adopted the Green Growth Framework for Fiji to plan for implementation of green growth across the economy.

OVERALL OBJECTIVES• Support Fiji to align its national targets under the National

Development Plan with its NDC targets under the Paris Agreement and to plan for implementation.

• Provide technical assistance support to help Fiji implement its green growth plans as elaborated in the Green Growth Framework and National Development Plan.

OVERVIEW

Country / Global implementation

FijiLower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 989,489

% of budget disbursed 64%

HIGHLIGHTS• The new National Development Plan (NDP) for Fiji was

completed with the support of GGGI and launched during COP 23 in Bonn, Germany.

• The NDC Roadmap was developed and launched by the Government of Fiji and GGGI during COP 23 in Bonn, Germany.

RELEVANT SDGs7.1. By 2030, ensure universal access to affordable, reliable and modern energy services.

11.6. By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

13.a. Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible.

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OUTCOME 1 STATUS ON TRACK

Increased mobilization of both national and international resources for renewable energy and energy efficiency programs through identification, design and preparation of bankable green energy projects and facilitation of an enabling environment for investment into the green energy sector.

This outcome was able to support the completion of the new National Development Plan for Fiji. Activities for the project feasibility documentation for the solar energy project for Taveuni were initiated in 2017.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

Formulation of the Country Planning Framework (CPF) for Fiji linked to the NDP incorporating green growth goals.

GGGI is initiating work on this output in Q1 2018.

OUTPUT 1.3 STATUS ACHIEVED

Approval and launch of the new National Development Plan (NDP) for Fiji.

• The NDP for Fiji was part of the 2015-2016 workplan, to support the Department of Strategic Planning of the Ministry of Economy in integrating the National Green Growth Framework (GGF) into the new NDP 2017–2036. The Government formally launched the new NDP in 2017, making it part of the 2017–2018 Work Plan.

• • The final NDP draft incorporates green growth policies, strategies, and programs; and includes lessons learned from the loss and damage survey report conducted after cyclone Winston hit the country in 2016.

• • The final NDP draft was launched at COP23 in Bonn, Germany in November 2017. GGGI’s inputs to the new NDP for Fiji have been recognized and acknowledged during the launch at Bonn.

OUTPUT 1.2 STATUS ON TRACK

Project feasibility documentation produced for up to two green infrastructure pilot projects.

• The Government of Fiji (GOF), through the Ministry of Economy (MOE) has agreed that GGGI, in partnership with MOE and Fiji Electricity Authority (FEA), conduct a full feasibility study for a 1.55MW solar power system for Taveuni; and a study to increase Ovalau’s renewable electricity share to at least 35% will been undertaken in 2018.

• The activities kicked off in November, with inception meetings and site visits to Taveuni. These were followed by further data collection and stakeholder consultations to finalize the selected sites for the solar power system, and environment and social impact assessment.

• Results of these activities and tender documentation will be reported for stakeholder review in May 2018, and will be finalized in June 2018. The opinions of MOE and FEA on the preferred financing model captured under this exercise will be considered in close consultation with the advice of GGGI on the matter.

• GGGI also discussed this project with KOICA, resulting in a letter of intent from KOICA to provide capital finance of USD 3.5 million for the implementation of the solar project on Taveuni once the full feasibility study is completed.

OUTCOME 2 STATUS ON TRACK

Increased awareness of options for green cities and cleaner transport and greater preparedness to implement green growth projects.

Strategic planning, analytical studies and capacity building activities were conducted to strengthen implementation of green growth projects.

OUTPUT 2.1 STATUS DELAYED

Rural electrification masterplan developed in-line with new NDP and integrating green growth principles. GGGI has consulted with the MOE and MoIT on rural electrification planning and pilot islands for analysis which will be undertaken in 2018 have been identified. It is also noted that there is ongoing work by ADB in this area and GGGI and ADB have also discussed and exchanged information.

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RESULTS ACHIEVED IN 2017

OUTPUT 2.2 STATUS ON TRACK

Policy, regulatory and incentives assessment and capacity building for implementation of green energy projects.

EE&RE workshops were organized to raise awareness and transfer knowledge to the owners of industry and commercial facilities. One workshop was conducted in Suva on the Nov 27, which included 31 participants from the private sector. The same energy efficiency and renewable energy workshop was also conducted in Lautoka on Nov 28, and included 15 participants from the private sector consisting of utilities, industrial companies, and the hotel industry. Scoping work before the workshop, the work during the workshop and further follow-up with interested companies has produced the following results:

• Survey results report including companies with highest energy consumption and the assessment of potential project options

• Market reach report on the availability and pricing of energy efficient equipment and renewable energy systems

• Increased knowledge of opportunities in EE and re for the participants of the workshops.

• 8 project briefs have been developed for GGGI to pursue further for potential project engage with the private sector including our key counterparts (MOE, Dept. Of Energy), the utility FEA and others (such as SPTO).

OUTPUT 2.3 STATUS ON TRACK

Analysis and options provided to decision-makers and planners to support green growth in cities/town and in the transport sector.

GGGI carried out a study on low emissions fuel for buses and trucks in Fiji. The study produced an environmental and economic analysis of the impact of moving to lower sulfur fuels, as well as introducing hybrids and electric vehicles. It also included a preliminary assessment for a scrapping scheme and a plan for the next steps including policy measures and project implementation. This study provides a basis or further work in 2018.

OUTCOME 3 STATUS DELAYED

Institutional capacity built-up and increased awareness of options for green growth at national and local level (building on green growth inputs to the NDP, Output A, WPB 2016/2016). Over the period 2017, GGGI has conducted and supported three training sessions for planning and implementation of green energy sector policies. This has covered NDC Roadmap development, feasibility studies implementation and other green growth related policy development and implementation. 2017, GGGI supported the NDC Roadmap development for critical sectors, and conducted activities to strengthen institutional capacity of key stakeholders.

OUTPUT 3.1 STATUS ON TRACK

Deliver training on planning and implementation of green energy sector policies.

In 2017, GGGI has conducted and supported the following trainings and capacity building sessions:

• In collaboration with the MOE, a stakeholder consultation workshop was undertaken on 26 January 2017 for the prefeasibility study for 100% renewables for Taveuni and Ovalau. 20 participants attended and inputs from the exercise was incorporated into the final draft report for the study.

• A key stakeholder consultation workshop with department of energy was carried out on 2 February 2017 on the review of Fiji’s biofuel program, which was attended by 23 participants.

• A two-day Regional Capacity Building workshop on “Green Infrastructure Project Development” was undertaken on the 27th and 28th of June 2017 conducted in Suva, Fiji (11 participants from Fiji, 24 was overall). The workshop participants consisted of policy and planning decision makers, financiers, and regional development partners. Participants from Fiji delivered case study presentations as well as participating in discussions and learning sessions

• GGGI was invited to make a presentation and contribute as a panelist for two sessions of the Sustainable Finance Initiatives in Fiji workshop organized by the Reserve Bank of Fiji. The objectives of the workshop were to create awareness on sustainable finance and generate discussion amongst policy makers, financial service providers and development partners; discuss the financial sector’s response to the financing of Fiji’s green growth Framework; and lay the foundation of Fiji’s Roadmap for Sustainable Finance.

• A training session for policy-makers and technical staff on how to develop an NDC Roadmap was conducted on the 7th of December 2017. The training session was based on a guideline for developing an NDC Roadmap and included exercises and was as theoretical training.

OUTPUT 3.2 STATUS ACHIEVED

Develop a roadmap for implementation of Fiji’s NDC to achieve a 30% reduction in CO2 emissions by 2030.

GGGI, in consultation with MOE and the Climate Change Division, identified the need to develop an NDC Roadmap to assist Fiji in implementing its NDC which aims for a 30% reduction of CO2 emission from the energy sector. Stakeholder consultations, data collection, and analysis for the Roadmap were conducted in during May–July. The methodology and implementation guidelines were derived from further consultation, and were validated in a stakeholder workshop held in August. The final Technical Draft Report and the final version of the NDC Roadmap were finalized by October and approved by Cabinet, with the NDC Roadmap launched by the Minister of Economy at a side event at COP23 in Bonn. The work included a capacity building component which was delivered after COP23, upon GOF’s request.

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PARTNERS

LOCAL

• Department of Strategic Planning (DSP), Ministry of Economy (MOE)

• Climate Change Division (CCD), Ministry of Economy (MOE)

• Department of Energy (DOE), Ministry of Infrastructure and Transport (MoIT)

• Ministry of Industry, Trade and Tourism (MITT)

• Office of the Commissioner Eastern Division

• Office of the Commissioner Northern Division

• Ministry of Rural and Maritime Development (MRMD)

• Ministry of I-taukei Affairs (MIA)

• Fiji Electricity Authority (FEA)

INTERNATIONAL

• Korean International Cooperation Agency (KOICA)

• Asian Development Bank (ADB)

LESSONS LEARNED• Timely recruitment of staff contributes to the prompt delivery of activities of the work program. It is however to be noted that

the achievements of 2017 i.e., NDC Roadmap and the new NDP will set a platform for more green growth opportunities in which GGGI can continue its strong collaboration with Government of Fiji opening up opportunities in other important sectors of Fiji’s economy. It is expected that the outstanding outputs and outcomes from 2017 will be completed in 2018.

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INDIAGREEN GROWTH THROUGH INDC

CONTEXTIndia’s INDC emphasizes the government’s goal of ensuring Electricity for All. The Indian government has promised to provide 24x7 electricity to all by 2019. At present, close to 50 million Indian households have little or no access to power. India has an electrification rate of 78.7%, with a large proportion of the underserved households concentrated in rural areas. The government has designed several policies to support rural electrification over the past 10 years, focusing on decentralized models.

However, most of the schemes and projects have not been able to address the quality, availability, affordability, and legality of energy access. It is also difficult to capture the level of energy access in terms of capacity to support different appliances, number of hours of supply, and the associated social and economic impacts (CEEW, 2015).

GGGI, seeing that off-grid-energy(OGE) companies can play an important role in improving access to energy for un-electrified households in India, conducted a market study. The demand for OGE systems from end-consumers is high and there are close to 100 companies operating within the different off-grid-energy market segments. However, most of the existing companies are small and are not able to grow their operations profitably due to unavailability of debt capital at appropriate terms and conditions from domestic lenders.

OVERALL OBJECTIVE• Support India to achieve its INDC commitments by mobilizing

fund to adequately finance the off-grid energy sector and increasing south-south collaboration on green growth.

OVERVIEW

Country / Global implementation

IndiaLower Middle Income Country (LMIC)

Thematic area Energy

Project start date Q1 2017

Funding source Core

2017 budget USD 577,907

% of budget disbursed 34%

HIGHLIGHTS• GGGI supporting funding proposals despite not having Country

Representative in India until the end of 2017.

RELEVANT SDGs7.1. By 2020, ensure universal access to affordable, reliable and modern energy services.

7.2. By 2030, increase substantially the share of renewable energy in the global energy mix

17.9. Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South, and triangular cooperation.

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RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• GGGI had developed a business case and financing proposal to secure ‘viability gap funding’ for electric buses under the national level Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in 2016. This proposal, after being endorsed by Government of Karnataka, was approved by the central government, and in his budget speech in March 2017, the Chief Minister of the State announced the introduction of 150 electric buses in Bangalore City with an investment of approximately USD 30 million.

OUTCOME 1 STATUS DELAYED

India makes progress toward its INDC commitments related to renewable energy. GGGI’s Country representative for India came on board in December 2017 to revise the current program to be more aligned with GGGI’s strategic directions in close discussions with the government stakeholders including NITI Aayog. Nevertheless, the expectation is that project work will be completed by the end of 2018.

OUTPUT 1.1 STATUS DELAYED

Financing stage for India Debt fund for Off-grid energy sector completed (Follow on from Concept & Design stage work in 2016). • GGGI acted as the lead arranger – responsible for

designing and structuring of the ACE Fund, an innovative finance instrument of USD 120 million for off-grid energy (OGE) sector in India. GGGI is working directly with Ministry for New and Renewable Energy (MNRE), Indian Renewable Energy Agency (IREDA) and the National Bank for Agriculture and Rural Development (NABARD), a GCF accredited entity, to establish this Fund.

• Market feasibility for the Fund was completed in January 2017. A Letter of Engagement has been received from IREDA, cleared by their Board, with an intent to provide up to USD 70 million to the Fund in addition to GCF concessional capital. IREDA, GGGI and NABARD have held several meetings to finalize the structure of the Fund and the attached briefing note captures the latest structure and implementation arrangements.

• GGGI has submitted the GCF full funding proposal draft to IREDA and MNRE which was then submitted to GCF via NABARD in April 2017 and NABARD submitted GCF full funding proposal to GCF in August 2017.

OUTCOME 2 STATUS DELAYED

South-South knowledge sharing fosters cross country learning to facilitate INDC implementation in GGGI partner countries. GGGI’s Country representative for India came on board in December 2017. However, the expectation still to deliver this outcomes by the end of 2018.

OUTPUT 2.1 STATUS DELAYED

India’s knowledge and experience on Renewable Energy best practices shared with GGGI and International Solar Alliance (ISA) partner countries. This outcome is intended timeline for completion by the end of 2018.

OUTPUT 2.2 STATUS DELAYED

IPSD support provided for Output 2.1 on India’s engagement in international knowledge sharing activities and platforms. This outcome is intended for completion by the end of 2018.

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PARTNERS

LOCAL

• Ministry of New and Renewable Energy,

• Indian Renewable Energy Development Authority (IREDA)

• National Bank for Agriculture and Rural Development (NABARD)

INTERNATIONAL

• The Green Climate Fund

LESSONS LEARNED• GGGI needs to operate strategically at the national level by

engaging with the central Ministries such as MNRE, MOP and MOEF&CC and programmatically at the sub-national or state level as had earlier with the states of Punjab, Himachal and Karnataka.

• There is a need to expand the interventions in hitherto untouched verticals such as Sustainable Landscapes, Green Cities and Water apart from Energy to increase GGGI footprint.

• Quick partnership building with other organizations for consortiums and joint efforts in view of the small team size in India.

• Aligning with programs such as smart cities, National Mission on Sustainable Agriculture would be immensely useful to influence the policies.

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INDIAWATER CONSERVATION FUND FOR SOLAR IRRIGATION PUMPS (WCS-SIP)

CONTEXTAt present, India spends over USD 6 billion on energy subsidies annually, and it is estimated that farmers pay only 13 percent of the true cost of electricity. Electricity subsidies have enabled farmers to access electricity at prices below the marginal cost of supply, thereby lowering the cost of irrigation and groundwater extraction. However, these benefits have come at an environmental cost through groundwater exploitation and a financial burden on distribution companies (DISCOMs).

By connecting solar-powered irrigation pumps to the grid and incentivizing farmers to evacuate surplus solar power and sell it back to the utilities, farmers are incentivized to not only use a cleaner form of energy for pumping, but to use the power more efficiently. This will benefit utilities as well since many utilities are under financial stress. To allow farmers to feed in to the grid they must first abstain for a certain period of time from their right being connected to the grid, which would be financially beneficial for the DISCOMs as each farmer entails a significant annual farm power subsidy burden.

OVERALL OBJECTIVE• Assess the business case for establishment of a Water

Conservation Fund that will solarize irrigation schemes for farmers who use scarce groundwater sources.

• Create incentives for farmers to increase water-use efficiency in irrigated agriculture.

OVERVIEW

Country / Global implementation

IndiaLower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q3 2017

Funding source Core

2017 budget USD 283,615

% of budget disbursed 37%

RESULTS ACHIEVED IN 2017• Developed and finalized a concept note on solar-irrigation

shared with relevant stakeholders and partner Energy Service Company.

• Awaiting further commitment from stakeholders and Energy Service Company to implement project after onboarding of new GGGI country representative.

• Identified other potential project opportunities in irrigation, water conservation, and industrial use of water.

RELEVANT SDGs6. Clean Water and Sanitation

7. Affordable and Clean Energy

13. Climate Action

HIGHLIGHTS• Conducted a scoping mission and developed a concept note on solar irrigation scheme based on thorough tariff calculations.

• Shared project concept with relevant stakeholders and Energy Service Company to implement after onboarding of new country representative.

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PARTNERS

LOCAL

• Ministry of Renewable Energy (MNRE)

• Energy Efficiency Services Limited (EESL)

• Indian research institutes

INTERNATIONAL

• International Water Management Institute (IWMI)

LESSONS LEARNED• Given India’s complex structure of ministries and state

governments, identify an optimal entry point is critical. It was also challenging for GGGI to conduct project scoping without a physical presence on the ground. This has been addressed with GGGI’s new India Country Representative joining in late 2017.

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INDONESIAPHASE II OF THE INDONESIA GREEN GROWTH PROGRAM

CONTEXTThe future economic challenge for Indonesia is to deliver rapid, yet inclusive, and people-centered economic growth in support of the ambitious social and economic goals expressed in the nine-point priority agenda of Indonesia’s current national medium-term development plan (RPJMN 2015-2019). The ‘Nawa Cita,’ the 9 national priority agendas of Jokowi-Kalla, calls for a clean, transparent, democratic government; stronger rural economy; land tenure reforms; and greater productivity and competitiveness of the Indonesian people.

In this regard, Indonesia’s Investment Coordinating Board (BKPM) has targeted a total of USD 100 billion in green investment in the agriculture, forestry, fisheries, renewable energy and geothermal power, clean manufacturing, and tourism sectors to meet Indonesia’s sustainability ambitions relevant to the Sustainable Development Goals (SDGs) and climate change actions.

To achieve the goals, Indonesia has to address the challenges of:

• Lack of domestic and international investment to reach development targets, and

• Lack of knowledge and capacity.

OVERALL OBJECTIVES• Support in the acceleration of investment in inclusive,

green projects, with an aim for Indonesia to meet its Nationally Determined Contribution (NDC) and Sustainable Development Goals (SDG).

• Unlock large-scale finance and deliver high impact with a focus on developing climate-smart and socially inclusive investment projects.

• Build on the work done in Phase I, which focused on mainstreaming green growth into planning and on developing analytical tools.

OVERVIEW

Country / Global implementation

Indonesia Lower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q1 2016

Funding source EarmarkedNorway

2017 budget USD 5,578,494

% of budget disbursed 71%

HIGHLIGHTS• Drafted a “White Paper” on green growth implementation in

East Kalimantan to guide candidate governors competing in the 2018 election.

• Strengthened planning and investment decision-making in East Kalimantan through the design and delivery of extended Cost-Benefit Analysis (eCBA) and Green Growth Potential Analysis (GGPA) tools and workshops.

• Development and presentation of pre-feasibility studies to government stakeholders and private investors.

RELEVANT SDGs7.2. By 2030, increase substantially the share of renewable energy in the global energy mix.

13.2. Integrate climate change measures into national policies, strategies and planning.

15.2. By 2020, promote the sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.

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OUTCOME 1 STATUS ON TRACK

Green growth plans and strategies related to energy, special economic zones, forest and land-based mitigation, and across sectors are adopted by the relevant Indonesian government authorities.

• GGGI has, through its provincial offices and strong representation at subnational level, managed to influence many of the policies that are under development in all 3 focus sectors, namely energy, special economic zones (SEZ) and forest/land use.

• This outcome is on track with its intended timeline for completion by the end of 2019.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS DELAYED

Recommendations on potential RE technologies provided to pilot provinces as technical input for incorporation in their energy plans. GGGI has continued its leadership role in both East and Central Kalimantan in the development of the Provincial Energy Plans (RUED), which are now expected to be due in the first quarter of 2018. GGGI’s continued focus is on alternative planning models, inclusion of non-traditional energy solutions, ensuring the energy plans contribute to the SDG and NDC goals including its social and gender inclusion targets. The Ministry of Energy and Mineral Resources decided to postpone the deadline for all RUED’s to the second quarter of 2018, and therefore this deliverable is flagged as delayed, while for our counterpart it is on time.

OUTPUT 1.2 STATUS DELAYED

Green growth guidelines for planning and performance assessment of special economic zones are developed for application by provinces. All planning work in 2016 and 2017 has led up to the international Green SEZ Conference, held on 6 December 2017. The conference achieved an enhanced commitment of the Coordinating Ministry of Economic Affairs (CMEA) toward green development of SEZs. The proceedings will be used to finalize a SEZ handbook for Green SEZs and green growth policy guidelines for SEZ in early 2018, which were originally planned for completion in 2016.

OUTPUT 1.3 STATUS ACHIEVED

Green growth recommendations are developed with relevant authorities for incorporation into sectoral, provincial, and district-level development plans.

GGGI is supporting East Kalimantan Province with the development of their Buku Putih (“White Paper”), which will serve as a guide for candidate governors competing in the 2018 election, through which the green direction of the province can be ensured for the future. All planned technical recommendations were successfully provided to the government.

OUTCOME 2 STATUS ON TRACK

A systematic enabling approach to encourage green investment is adopted by the relevant Indonesian government authorities.

GGGI has been able to strengthen its relationships with the different line-ministries during 2017, with a strong focus on enabling activities as part of the GGP Phase 2. In February 2017, an Addendum to the grant agreement with Norway was signed to provide support toward additional activities under this outcome, focused on the forestry sector in East Kalimantan. This increased the total grant with NOK 8 million (USD 950,000). This outcome is on track with its intended timeline for completion by the end of 2019.

OUTPUT 2.1 STATUS ACHIEVED

Policy instruments are designed to reduce risks and enable better investment-related decision making and performance monitoring of green energy investments.

GGGI was able to strengthen its relationship with the Ministry of Energy and Mineral Resources (ESDM), followed by the development of a joint workplan for enabling activities under this output for the period 2017-2019. The development of the workplan has been done in close collaboration with ESDM representatives, building ownership within the Ministry.

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RESULTS ACHIEVED IN 2017

OUTPUT 2.2 STATUS DELAYED

National-level policy guidelines and instruments are designed to reduce risks and enable better investment-related decision making and performance monitoring in SEZ. GGGI continued to support Sei Mangkei with its ambition to attract green investment and has supported the further identification of opportunities in Sei Mangkei, resulting in a business case for solar power. While existing contracts have locked-in the state-owned PT Perkebunan Nusantara III with PLN, private sector parties are interested in solar PV rooftop solutions. Planned fiscal and investment policy recommendations to support risk reduction of green SEZ projects and De-risking instruments for SEZ projects selected in output 3.2 are to be completed in 2018.

OUTPUT 2.3 STATUS DELAYED

Policy instruments under a Jurisdictional Approach (JA) are designed to reduce risks and enable better investment‑related decision making and performance monitoring of forest and land based mitigations. • Strong progress has been made in strengthening the

relationship with the Director General Climate Change (DGCC) of the Ministry of Environment and Forestry (MoEF), a very important department with regard to GGGI’s support role in Indonesia’s forest and land-use related agenda. An initial agreement on the scope of work of GGGI with DGCC has been developed.

• While GGGI has successfully produced the Guidelines for REDD+ performance payments based on JA, work to finalize the project document for the Forest and Climate Partnership Fund (FCPF) East Kalimantan Province has been postponed to 2018.

OUTPUT 2.4 STATUS ACHIEVED

Green growth tools and methods for planning and investment decision-making are provided to national, provincial, and district government agencies.

GGGI hosted 2 training workshops on tools and produced a sector brief on eCBA. GGPA and eCBA are included in key planning documents and regulations issued by the Government of Indonesia (GoI). Strategic Environmental Assessment (SEA) results are integrated in the development plan of East Kalimantan, and a model of a landscape decision support tool is developed.

OUTCOME 3 STATUS ON TRACK

Increased green investment is directed to focal sectors.

This outcome is on track with its intended timeline for completion by the end of 2019.

OUTPUT 3.1 STATUS ACHIEVED

Green energy projects are designed and demonstrated to be financially feasible.

GGGI has completed: 1 pre-feasibility study (pre FS) with project de-risking instruments - presented to GoI and private investors; 2 POME pre FS; and One Solar PV pre FS.

OUTPUT 3.2 STATUS DELAYED

Green infrastructure projects in one or more special economic zones (SEZ) are designed and demonstrated to be financially feasible. GGGI has finalized one out of two planned SEZ relevant pre-FS/ investment studies and presented 2 pre-FS for 2 projects with project de-risking instruments to GoI and private investors. An investment event for targeted stakeholders with government, private investors and domestic banks has been cancelled upon the request of the government.

OUTPUT 3.3 STATUS ACHIEVED

Forest and land based GHG mitigation proposals within a JA are developed with Government Authorities, submitted for funding and guided during implementation.

At least 5 proposals will be completed by February 2018 for public/private investment. These proposals are shepherded through financial assessment and decision-making; A current proposal for landscape-wide peatland restoration provides a strong basis to attract other potential (also private) investors and donor funds. Implementation may proceed after the detailed design has been completed and agreed with all stakeholders.

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RESULTS ACHIEVED IN 2017

INTERMEDIATE OUTCOME 4 STATUS ON TRACK

A Green Growth Secretariat and Knowledge Platform supports well informed national and sub-national decision-makers within capable institutions to understand, replicate, and scale up green growth approaches.

The Green Growth Program Steering Committee (SC) met in June 2017. It is the inter-ministerial coordination arrangement, under the leadership of the Ministry of National Development Planning (BAPPENAS), to guide the collaborative GoI-GGGI Green Growth Program. Requests from BAPPENAS were received during the SC meeting to have a stronger focus on energy related activities. Main conclusions of the meeting were that a) The implementation of GGP Phase II will focus on four sectors/work streams, namely energy, SEZ, forest and land used based mitigation and cross cutting (knowledge and capacity building). b). Main activities will be directed at the technical aspect of bankable project proposal formulation and prioritizing the renewable energy sector. c). GGGI must be able to assist GoI in solving budget limitations through the formulation of bankable projects that are appealing to investors. d). Two milestones are to be achieved by the end of Phase II of GGP in 2020, namely the strengthening of institutions supporting green growth and the increase of inclusive green investment. In addition, the meeting recommended that a holistic approach (considering economic, environmental and social aspects) should be taken in planning and implementing each program, and that the sense of ownership regarding GGP of each implementing agency should be strengthened through transparent and regular coordination and communication. This outcome is on track with its intended timeline for completion by the end of 2019.

OUTPUT 4.1 STATUS ACHIEVED

The Green Growth Secretariat is established as a clearinghouse for knowledge solutions and service provision in support of green growth planning, enablers, and investment.

The Secretariat and knowledge platform continues to deliver green growth services. Partners receive useful support for their green growth activities and recognize the benefits of the Secretariat and knowledge platform’s services. An online web-based knowledge platform is established.

OUTPUT 4.2 STATUS ACHIEVED

Program outputs, global knowledge products and lessons learned are packaged into simple knowledge products and disseminated to encourage replication and upscaling.

A best practice SEA for the SEZ Maloy in East Kalimantan was delivered. The SEA stakeholder process engagement was based on a transparent public consultation process involving Focus Group Discussions (FGDs) with regional government agencies (primarily the provincial planning agency Bappeda of East Kalimantan) and non-government actors. The SEA document was well received by the Ministry of Environment and Forestry (MoEF).

OUTPUT 4.3 STATUS ACHIEVED

A green growth curriculum is designed and modules are prepared for relevant GoI agencies to use in training programs delivered.

Green growth curriculum design is ready for review by GoI, while tailor-made training modules are under preparation.

ADDITIONAL RESULTS

• GGGI continues to monitor for implementation compliance under the Gender and Social Safeguards (GSS) action plan developed in 2016. In 2017, GGGI piloted methodology for mainstreaming Safeguards, Poverty reduction and social inclusion (SPRSI) in economic analysis and planning.

• In February 2017, an addendum was signed between GGGI and the Norwegian Ministry of Foreign Affairs in which additional resources were allocated specifically to the strengthening of the Forest Management Units (FMU’s) in East Kalimantan. The support will consist of two components: (1) assessment of forest potential, biodiversity, and socio-economic dimensions for Forst management units (FMUs) without completed management plans and (2) business planning for operational FMUs with management plans. First deliverables are expected in 2018.

• The Indonesia Country Planning Framework (CPF) for the period of 2016-2020 was signed by the Minister BAPPENAS, Prof. Dr. Bambang P.S. Brodjonegoro, and by GGGI Director General, Frank Rijsberman. The CPF is aligned with Indonesia’s Strategic Action plans for Climate Change and the Green Planning and Budgeting Strategy for Indonesia’s Sustainable Development.

• GGGI has substantially over-delivered in the communication department compared to the original commitments. Media attention has been significant, and a large number of technical and non-technical communication materials were delivered. GGGI has also been very active on social media to inform our target groups about Indonesia’s progress in green growth.

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PARTNERS

LOCAL

• National Development Planning Agency (BAPPENAS)

• Coordinating Ministry for Economic Affairs (CMEA)

• Ministry of Energy and Mineral Resources (ESDM)

• Ministry of Environment and Forestry (MoEF)

• Ministry of Finance (MoF)

• National Institute of Public Administration of the Republic of Indonesia (Lembaga Administrasi Negara or “LAN”)

• Provincial Government of Central Kalimantan (CK)

• Provincial Government of East Kalimantan (EK)

• PT Sarana Multi Infrastruktur (PT SMI)

• Peatland Restoration Agency (BRG) (not formalized yet)

• Ministry of Law and Human Rights (collaboration has recently been initiated by MLHR)

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KIRIBATIGREEN AND CLIMATE RESILIENT

ISLAND DEVELOPMENT

CONTEXTKiribati, consisting of 33 widely scattered islands, is highly vulnerable to climate change and impacted by rising sea levels, increasingly frequent and severe storms, permanent erosion of the shoreline, frequent seawater inundation on freshwater resources, and reduced food security. The country also faces a number of structural economic challenges given its remoteness, small market size, and limited institutional capacity.

In 2013, the Government of Kiribati (GoK) adopted a Whole-of Island-Approach (WOIA) for outer islands to reduce the extreme vulnerability of climate change impacts. Led by the Office of the President, the approach is closely linked to the Kiribati Joint Implementation Plan on Climate Change and Disaster Risk Management (KJIP).

The GoK has requested technical support to address implementation challenges in the WOIA, particularly to identify sustainable micro-scale income generation opportunities and to improve availability and access to green infrastructure services for the achievement of development objectives.

OVERALL OBJECTIVES• Contribute to climate-resilient development of Kiribati’s

outer islands through the provision of support to green micro-business and improved infrastructure services based on the Whole-of Island-Approach (WOIA).

• Provide technical assistance to support the government in adopting an action plan in an island under the WOIA framework, as well as endorsing a climate resilient infrastructure project.

OVERVIEW

Country / Global implementation

KiribatiLeast Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 302,507

% of budget disbursed 59%

HIGHLIGHTS• GGGI assisted the Whole-of-Island Approach Partners to evaluate

the Approach in the pilot island of Abaiang. The Approach is currently being deployed in Tabiteuea North and Kiritimati.

• Government delegates from key ministries participated in the GGGI “Green Infrastructure Project Development and Financing” Capacity Building Workshop in Fiji in June 2017.

RELEVANT SDGs8.3. Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.

13.2. Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

17.6. Enhance the global partnership for sustainable development, complemented by multistakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of sustainable development goals in all countries, in particular developing countries.

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RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• GGGI took part in the Evaluation of the Whole-of-island approach for Abaiang and contributed to the development of the evaluation report.

OUTCOME 1 STATUS DELAYED

Kiribati/Island Council endorses the implementation of a green infrastructure project proposal(s). • GGGI’s work in Kiribati in 2017 was impacted by a

number of external and internal factors. The transition from a consultant to GGGI staff member caused delays with the Kiribati full time staff only coming onboard in September. However, since then the decision to place a staff in Kiribati has been proven correct with strong support from MELAD and recognition of GGGI’s commitment to our Kiribati objectives.

• From the Kiribati side, the Secretary for MELAD changed in May and it took time to familiarize the new Secretary with GGGI due to existing commitments the Secretary had to see to. A meeting between the CR and the Secretary was possible at COP23 in November 2017 where the discussions confirmed a mutual understanding of the objectives of the Kiribati program and the Secretary reaffirmed MELAD’s support.

OUTPUT 1.1 STATUS DELAYED

Green and climate change resilient infrastructure project pipeline developed and one small-scale infrastructure project designed to foster income-generating activities. For the design and identification of funding for a green infrastructure project, initial discussions have started and will be continued in 2018.

OUTCOME 2 STATUS DELAYED

Government and community adopt action plan for green income generating activities for implementation on one island. At least one action plan / project proposal in line with the KJIP is approved by Kiribati/Island council. This outcome was delayed due to factors mentioned above.

OUTPUT 2.1 STATUS DELAYED

Island/community/village level plan/proposal for (an) green income generating activity(ies) is developed. • GGGI and Kiribati have begun conversations toward

adopting an action plan for green income generating activities for implementation on an island. Two travel missions to Kiribati have aided in cementing relationships with government counterparts and other members of the donor community. This included meeting with the Kiribati National Experts Group (KNEG) in September 2017.

• GGGI joined the Whole-of-Island Approach Partners in evaluating the Approach in the island of Abaiang. Abaiang has been the first island where the Approach was deployed. Two other islands where the WOIA has begun are Tabiteuea North and Kiritimati. The country team took the opportunity to begin building relationships and start a dialogue with the community on Abaiang to establish needs and priorities.

OUTCOME 3 STATUS DELAYED

Island communities have improved knowledge of green income-generating opportunities and are more prepared for implementation. Participants from Kiribati took part in a two-day capacity building workshop in fiji with all participants of the learning event reporting an increase in knowledge of green income-generating opportunities

OUTPUT 3.1 STATUS DELAYED

Capacity development programs delivered on WOIA with best practice analysis on Philippines’ CRGG framework and Ecotown project. Government delegates from the Ministry of Finance and Economic Development, Ministry of Public Works and Utilities, and the Ministry of Environment, Lands and Agriculture Development participated in “Green Infrastructure Project Development and Financing” Capacity Building workshop, organized by GGGI in Fiji on June 27 – 28, 2017. This workshop focused on the design and development of green infrastructure projects including the merits of making infrastructure green, planning green infrastructure projects with emphasis on getting projects successfully funded, Public-private partnerships to get more projects done, Financing projects and Government policies that support infrastructure projects and PPPs.

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PARTNERS

LOCAL

• Ministry of Environment, Lands and Agricultural Development (MELAD)

• Office of the President (OB)

• Ministry of Finance and Economic Development (MFED)

• Ministry of Infrastructure and Sustainable Energy (MISE)

INTERNATIONAL

• GIZ

• USAID

• The Pacific Community (SPC)

• SPREP

• Other partners including the local island council and island committees.

LESSONS LEARNED• Placing a full-time staff in Kiribati has strengthened the relationships with government and other stakeholders and is a better

solution than a consultant.

• Taking into account the gender dynamics in Kiribati, GGGI will need to pay special consideration when planning consultations and developing training, especially as women are less vocal when speaking in groups where there are members of the Island Council, and at times when their male peers are present. As GGGI aims to develop a plan for income generating activities, gender will need to be a constant consideration to ensure that the benefits of the plan are felt equally across all gender groups.

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LAO PDRNATIONAL AND SUB-NATIONAL

PLANNING, FINANCING AND BUDGETING FOR GREEN GROWTH

CONTEXTLao PDR has experienced rapid economic growth, with an average 7.9% GDP growth during its 7th 5-Year National Social Economic Development Plan (NSEDP, 2011-2015). The poverty rate was reduced to 19.7% in 2015 and the Human Development index has increased. Labor structure has improved with increased percentage of labor employed in industry and service sectors. The current 8th NSEDP reiterated Government of Laos’ (GoL) ambition is to become a LMIC by 2020. Doing so will require not only better GDP growth, but a greater emphasis on the quality of growth. Laos seeks to maximize the impact of that growth on job creation and poverty reduction, which have been systemic challenges for the developing country.

OVERALL OBJECTIVES• Support Lao PDR in mainstreaming green growth

into its development by identifying potential green growth opportunities.

• Assisting in the development of multi-level and sectoral green growth strategies and action plans.

OVERVIEW

Country / Global implementation

Lao PDRLeast Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 879,201

% of budget disbursed 75%

HIGHLIGHTS• Green Growth Potential Assessment of the Lao PDR finalized,

with agriculture, education, energy and mines, forestry and land-use, tourism, and urban development identified as primary focus areas

• Technical studies, including fiscal instruments, green growth plans (vision, gaps and prioritized actions) and gender study, are produced to support the development of the National Green Growth Strategy.

• Capacity development on green growth planning and implementation delivered to a range of stakeholders, including private sector, civil society and academia.

RELEVANT SDGs6.3. By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally.

6.a. By 2030, expand international cooperation and capacity-building support to developing countries in water- and sanitation-related activities and programmes, including water harvesting, desalination, water efficiency, wastewater treatment, recycling and reuse technologies.

8.3. Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.

11.3. By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.

12.5. By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

13.2. Integrate climate change measures into national policies, strategies and planning.

13.3. Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

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OUTCOME 1 STATUS ON TRACK

The Government of Lao PDR has in place better strategies and institutions to support national, sub-national and sector level green growth planning and implementation.

Increased knowledge of green urban development and green fiscal instruments among stakeholders, including private sector, civil society (represented by Women and Youth groups) and academia.

GGGI has incorporated elements of green growth into selected Ministry of Planning and Investment (MPI) tools such as guideline for guiding annual NSEDP implementation, provincial SEDP, sector SEDP implementation, annual plans and/or investment screening tool. Further, GGGI’s green city development concept was incorporated into the approved National Urban Development strategy. And at least 70% of the participants who attend the training conducted by the GGGI supported local trainer report an increase in knowledge and skills to scale up green city development and ability to implement environmental tax law

OUTPUT 1.1 STATUS ACHIEVED

Lao Green Growth Potential Assessment finalized.

• Building on a primary assessment and stakeholder consultations which brought together government representatives, the private sector, academia, civil society and development partners, a Green Growth Potential Assessment (GGPA) was produced. The GGPA provides recommendations which range from policy and institutional reform to infrastructure projects to opportunities to access international finance.

• A preliminary assessment was conducted, based on data analysis and literature review, highlighting several areas where green growth interventions can support development in Laos. Results of the preliminary assessment were largely confirmed by a stakeholder consultation workshop, bringing together representatives from government ministries, the private sector, academia, civil society and development partners. 

• The GGPA report has been reviewed by the key stakeholders, and submitted to the National Institute for Economic Research and Ministry of Planning and Investment.  

• The key sectors identified in the GGPA such as agriculture, forestry, tourism, urban development, and education have been adopted as primary focus areas in a draft version of the Lao PDR’s National Green Growth Strategy. The National Green Growth Strategy will be formally adopted as one of the government’s national strategy in 2018. 

RESULTS ACHIEVED IN 2017

OUTPUT 1.2 STATUS ON TRACK

National Green Growth Strategy and Implementation measures developed.

• GGGI provided two major technical inputs to the National Green Growth Strategy submitted to the Ministry of Planning and Investment: i) “Green fiscal instruments for green growth delivery” and ii) “Green Growth in Lao PDR: Vision, Gaps and Prioritized Actions”

OUTPUT 1.3 STATUS ON TRACK

Green growth mainstreamed into the draft National Urban Development Strategy and piloted.

• Comments on the draft Lao National Urban Development Strategy were submitted.

• A scoping study was conducted to assess the current situation of solid waste management in Vientiane and identify potential projects. The potential project ideas were presented and well-received by the Vientiane City Office for Management and Service (VCOMS). VCOMS is primarily responsible for waste management and has identified projects with high priority based on GGGI recommendations. A solid waste management strategy and roadmap for Vientiane was drafted based on the situational analysis and government consultations. The results of the study on the Vientiane solid waste sector will constitute the proposal to be submitted to KOICA in the first quarter of 2018.

OUTPUT 1.4 STATUS ON TRACK

• Capacity development on green growth planning and implementation delivered to a range of stakeholders, including private sector, civil society (represented by Women and Youth groups) and academia

• A green growth study tour to the Republic of Korea was designed and facilitated. The fifteen-person delegation was led by a Vice-Minister of MPI and met with key staff from GGGI, GCF, the Ministry of Environment of Korea and other agencies. A workshop on Green Cities Development was also hosted in Vientiane. The workshops focused on developing green cities in the context of Lao PDR whilst bringing in best practices from other developing countries in the areas of solid waste and wastewater management. The workshop was attended by 72 people including 19 officials from provincial governments. A total of seven government officials was sent to training programs related to climate change and sustainable development hosted by China.

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PARTNERS

LOCAL

• Ministry of Planning and Investment

• National Institute for Economic Research

• Ministry of Natural Resource and Environment

• Ministry of Public Works and Transport

• Vientiane City Office of Management and Service (VCOMS)

• Provincial Government of Champasak

• Urban Development Administration Authority – Pakse

• ECCDA (Environment Conversation Community Development Association)

INTERNATIONAL

• KOICA

• World Bank

ADDITIONAL RESULTS

• GGGI developed concept note focused on the development of fiscal policies and climate accounting was submitted to the Government of Luxembourg in March.

• A concept note focused on the development of green cities, solid waste management and wastewater management was submitted to KOICA in September 2017.

• A GCF readiness proposal was developed and submitted in November 2017.

• A study titled “Gender review to inform green growth strategy and priorities” was commissioned and was scheduled to be completed by December 31.

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MONGOLIAGCF READINESS PROGRAM

FOR MONGOLIA

CONTEXTMongolia has made commitments to increase renewable energy generation and improve urban planning and resilience in its National Green Development Policy (NGDP) and Action Plan, Nationally Determined Contributions (NDCs) and Sustainable Development Vision 2030. While the supporting policy environment has improved, implementation and financing to address these challenges remain well below the levels needed to transition to inclusive green growth.

• Mongolia’s energy sector is highly dependent on fossil fuels with over 90% of heating and electricity derived from coal. The resulting soil and air pollution is particularly acute in the peri-urban areas of Ulaanbaatar and other secondary cities, where poverty exceeds the national average.

• Given the current impacts of weak commodities prices and low investment, a stretched government budget reduces the ability to introduce many of the intended green development measures.

OVERALL OBJECTIVESeeks co-funding GCF Readiness Programme to: (i) prepare investment projects/programs within the scope of three high impact sub-sectors (ii) undertake market and technical assessments to ensure the investment potential of MGFC programme to scale up and enabling the development of bankable funding proposals.

Potential impact of MGFC includes:

• Small-scale renewable and alternative electricity and heating solutions for peri-urban areas;

• Green and affordable residential buildings;

• Waste management and sanitation technologies and services in peri-urban areas;

• Energy efficiency measures for buildings, SMEs, and industrial markets.

OVERVIEW

Country / Global implementation

MongoliaLower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q3 2017

Funding source EarmarkedGreen Climate Fund (GCF)

2017 budget USD 79,616

% of budget disbursed 63%

RELEVANT SDGs7. Ensure access to affordable, reliable, sustainable and modern energy for all.

9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

12. Ensure sustainable consumption and production patterns.

13. Take urgent action to combat climate change and its impacts.

17. Strengthen the means of implementation and revitalize the global partnership for sustainable development.

HIGHLIGHTS• Initiation of market assessment and formalization of the

financial products to be financed through the Mongolian Green Credit Finance Corporation (MGFC. Formally called Mongolian Green Credit Fund/MGCF) in alternative heating, green and affordable housing and waste and sanitation sectors.

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OUTCOME 1 STATUS ON TRACK

Project/program preparation support, including for adaptation, to develop funding proposals provided and private sector engaged in country consultative processes.

Project/program preparation support such as three market demand assessment and investment potential study and funding proposal development is underway by hiring four staff under GCF Readiness Programme.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

Market demand and investment potential study - Small scale RE and alternative energy solutions to peri-urban areas and follow up with implementation work.

The study is on track and initial findings are included in the funding proposal. Further detailed assessment and product development to be continue.

OUTPUT 1.2 STATUS ON TRACK

Market demand and investment potential study - Waste management and sanitation solutions and follow up implementation work.

The study is on track and initial findings are assessed. Given lack of commercial viability and low of potential impacts, the selected products are not to be considered in the funding proposal. Further detailed assessment and product development to be continue.

OUTPUT 1.3 STATUS ON TRACK

Market demand and investment potential study - Green and affordable residential building and follow up implementation work.

The study is on track and initial findings are included in the funding proposal. Further detailed assessment and product development to be continue.

OUTPUT 1.4 STATUS ON TRACK

Legal service consultancy - Scale-up phase of the MGCF.

Consultant procurement process will begin in April 2018.

OUTPUT 1.5 STATUS ON TRACK

Funding proposal development support.

Funding proposal development work is underway with a new staff hired under GCF Readiness Programme. XAC bank agreed to take a role of Accredited Entity to submit the Funding proposal to GCF.

ADDITIONAL RESULTS

• GGGI helped secure additional resource mobilization in the origination of project pipelines.

• As the MGCF is a public private partnership scheme-based initiative, GGGI’s main role was defined as a neutral leading intermediary between local stakeholders and potential investors. GGGI has been leading consultations with potential investors while actively supporting identification and origination of project pipeline development. During project pipeline development activities, GGGI conducted energy efficiency pipeline project engaging major energy consumers showing market potential and investment need. Additional resource mobilization from GCF Readiness Program is dedicated to additional market assessment, product design and operationalization of the MGCF.

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PARTNERS

LOCAL

• Ministry of Environment and Tourism

• Ministry of Finance

• Mongolian Bankers Association

• XAC Bank

INTERNATIONAL

• GCF

• Dutch Development Bank

• UN-PAGE/UNEP

LESSONS LEARNED• Understanding GCF disbursement process and

requirements: This readiness program was the second readiness program handled by GGGI and the process was well managed as a result of learning from previous experiences where major delays were encountered.

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MONGOLIATRANSITION TO GREEN

DEVELOPMENT - PHASE II

CONTEXTMongolia’s resource-intensive development and climate change vulnerability have created urgency for a transition to green growth. Economic transformation over the past 20 years has been driven by the extraction of Mongolia’s mineral resources and rapid urbanization. However, Mongolia’s reliance on commodities exports for growth has not only left it vulnerable to price fluctuations, but has exacerbated the impacts of climate change.

Sustaining recent development gains in Mongolia faces a number of challenges:

• Electricity generation infrastructure reliance on coal‑fired sources.

• Rapid urbanization with 68% of population living in settlements ‑ primarily in Ulaanbaatar.

• Lagging poverty reduction despite strong GDP growth.

• Exposure to harmful urban air pollution.

• Limited capacity to finance green growth in the country.

OVERALL OBJECTIVES• Support Mongolia’s efforts toward fostering economic growth

with greater resource efficiency, greater social inclusion and lower GHG emissions intensity.

• Increase awareness and inclusion of green growth principles in policies and planning.

OVERVIEW

Country / Global implementation

MongoliaLower Middle Income Country (LMIC)

Thematic area Multi‑sectoral

Project start date Q1 2017

Funding source CoreEarmarked: Germany, GCF

2017 budget USD 1,174,212

% of budget disbursed 74%

RELEVANT SDGs7.2. By 2030, increase substantially the share of renewable energy in the global energy mix 

12.2. By 2030, achieve the sustainable management and efficient use of natural resources 

13.a. Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate fund through its capitalization as soon as possible.

HIGHLIGHTS• The Mongolian Green Credit Fund (MGCF) was launched,

through the signing of a Memorandum of Understanding (MOU) between Ministry of Environment and Tourism (MET), Ministry of Finance (MOF), the Mongolian Bankers Association (MBA) and GGGI at the 5th Mongolian Sustainable Finance Forum on 6 September 2017.

• GGGI, in cooperation with Ulaanbaatar Mayor’s Office and the Energy Regulatory Commission has launched a pilot for energy efficient retrofitting of residential public buildings.

• The National Energy Efficiency Action Program (NEEAP) was designed with key support of GGGI and later adopted by the Government of Mongolia Cabinet in September 2017.

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OUTCOME 1 STATUS ON TRACK

Key recommendations adopted by MET and/or relevant agencies to displace fossil fuels with renewables and promote green public buildings.

• In 2017, GGGI supported the development of two key policy document contributing to the implementation of Mongolia’s energy laws.

• The GGGI Mongolia Cities program helped launch the participatory process for the revision of the Law on Urban Development, and provided relevant databases to promote greener construction practices.

• At the subnational level, GGGI supported the Municipality of Ulaanbaatar in determining its contribution to the country’s NDCs and associated Climate Investment Strategy, and helped prioritize 18 climate friendly projects from the Ulaanbaatar City Development Master Plan, with estimated 2.2 MtCO2-eq reduction potential.

OUTCOME 2 STATUS ACHIEVED

At least seven infrastructure projects developed and at least one project financed.

GGGI’s Mongolia Program supports the development of bankable projects in the areas of industrial energy efficiency, residential building retrofitting, low carbon public education infrastructure and air pollution reduction, four areas with a strong potential for green and inclusive growth.

RESULTS ACHIEVED IN 2017

OUTPUT 1.2 STATUS ON TRACK

Support the development at least 3 green public building project proposals.

• Initiated in 2017, GGGI Mongolia Cities program initial focus on green public education buildings promotion has expanded to help create an enabling environment for these to develop. In May 2017, GGGI signed an MoU with the Ministry of Construction and Urban Development (MCUD) and helped launch of a participatory process to revise Mongolia’s Law on Urban Development, a foundational work for the promotion of low-carbon, resilient and inclusive cities growth.

• GGGI also developed the Green Construction Products Database and associated market survey under MCUD, an important enabling factor for property developers willing to adopt greener construction practices.

OUTPUT 1.1 STATUS ON TRACK

• Support the development of at least 3 green energy project proposals.

• GGGI signed an MoU with the Energy Regulatory Commission (ERC) in February 2017. GGGI supported the development of two major policy documents: (i) the National Energy Efficiency Action Programme (NEEAP) adopted by Mongolia’s Cabinet in September 2017, and (ii) the ongoing design and adoption of an energy standards and labelling regulation (S&L Regulations) for appliances. Both contribute to the implementation of the Energy Conservation Law (2015) and the State Policy on Energy (2015). GGGI also participated in the design and drafting of an action plan for the NEEAP to be approved by the minister of energy in early 2018.

OUTPUT 2.1 STATUS ON TRACK

Support the development of at least 3 green energy project proposals.

• GGGI, in cooperation with Ulaanbaatar City’s Mayor’s Office and the Energy Regulatory Commission, has launched a pilot for energy efficient retrofitting of residential buildings. Three precast concrete buildings were selected in one district of Ulaanbaatar City and have undergone heat metering, to model the potential heat efficiency and financial gains derived from retrofitting. The project is expected to highlight the business case for Energy Performance Contracting (EPC) and Energy Service Company involvement in helping finance part of the retrofitting works, under a pay-for-performance type of scheme, with opportunities for scaling-up, structuring and financing.

• GGGI supported the ERC in developing a pipeline of energy efficiency pilot projects for 15 (out of 192) large energy consumers exceeding the threshold set by Mongolia (also referred to as Designated Entities or DEs), to improve their energy efficiency. The 15 investment grade energy audits commissioned helped size a market of around USD 60 million for capital investments in energy efficiency, with an average payback period of 3 years. GGGI considers that the total market potential for the 198 designated entities could be exceeding USD 500 million. The corresponding market will be one of the main targets of the Mongolian Green Credit Fund (MGCF).

• GGGI provided technical assistance and support to Arig Bank’s “Innovation Challenge – Lets Fight Air Pollution together!”, by identifying the best technical solutions for fossil fuel displacement and air pollution reduction in peri-urban areas of Ulaanbaatar City. 47 proposals by Mongolian entrepreneurs and companies, including electric heating technologies, alternative fuels and renewable energy-based heating technologies were submitted with 14 of them shortlisted by a Committee of experts. The selected products will benefit from a MNT 100 million grant from Arig Bank. The results will help inform the most appropriate type of technologies to be promoted through the financial products of the MGCF, and help identify other related project opportunities.

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OUTPUT 2.2 STATUS ON TRACK

Support the development at least 3 green public building project proposals.

• GGGI completed the business case for a low carbon and cost efficient public infrastructure PPP starting with selected pilot project sites – 9 primary school and 1 kindergarten – in Ulaanbaatar city. The city benefited from GGGI’s support in designing a project financing and implementation structure that is beneficial and affordable via a performance based/availability payment PPP model, the first of its kind for social infrastructure projects. The cost-benefit analysis applied including environmental, health and educational cost and benefits) underlined a 13.3% higher value for money in favor of the public–private partnership option compared to the baseline option.

• GGGI completed a market sounding exercise, including the organization of a “climate investment partnership forum” and business case development. Draft procurement documents including technical terms of reference, evaluation criteria and methodology designed for bidding proposals were prepared and handled to Ulaanbaatar city as part of this assignment.

RESULTS ACHIEVED IN 2017

OUTPUT 2.3 STATUS ACHIEVED

Prepare a project design and financing proposal for at least 1 green urban infrastructure project.

The business case for a low carbon and cost efficient public infrastructure PPP successfully secured additional funding from the federal ministry for economic cooperation and development of Germany (BMZ) through the NDC partnership to support the project’s procurement preparation and market sounding activity. Completed by the end of December 2017, it and obtained Ulaanbaatar city’s official endorsement letter for its successful completion.

OUTCOME 3 STATUS DELAYED

National Green Credit Fund formally approved to begin operations, deposits initial funding, solicits funding proposals, and disburses funds.

Throughout 2017, GGGI’s support has been instrumental in moving the Mongolian Green Credit (MGCF) initiative from an idea to conceptual development stage. The concept and business plan of MGCF was developed and successfully endorsed by the government and Mongolian Bankers Association (MBA) in 2017. Mongolia, represented by the Ministry of Environment and Tourism (MET), Ministry of Finance (MoF), and the MBA, together with GGGI jointly signed a MoU to establish the MGFC, a national financing vehicle to bring long-term finance that stimulates green growth in the country.

OUTPUT 3.1 STATUS ON TRACK

Develop operational arrangements for a National Green Credit Fund.

• The successful completion of the first phase of MGCF’s development, which included concept, legal/regulatory framework assessment and detailed business planning/modelling made way for the official endorsement and launching of the MGCF, materialized by the signing of a MoU between MET, MoF, MBA and GGGI at the 5th Mongolian Sustainable Finance Forum on September 6 2017.

• GGGI secured additional earmarked resources from the GCF Readiness Programme to carry on with the development of the MGCF. Through consultations with potential investors (FMO, ADB, etc.) in the fund, and the parallel development of a pipeline of projects, a first estimation of the market potential and investment needs was determined.

• Three market assessments have been launched to support MGCF’s product design and operationalization phase. GGGI helped MGCF partners identify suitable options for the fund structure as well as capitalization options. Early engagement with potential investors resulted in raising the interest of the GCF and other potential investors in the fund. GGGI now cooperates with the Green Climate Fund in providing project preparatory support and detailed market assessment.

OUTCOME 4 STATUS ON TRACK

S&L Regulations adopted by Energy Regulatory Commission targeting the phaseout of polluting heating technologies.

GGGI supports the Energy Regulatory Commission in the design and adoption of an Energy Standards & Labelling Regulation (Energy S&L Regulations). The International Institute for Energy Conservation has been contracted by GGGI from October 2017 to January 2018 to carry out an impact assessment of the regulation, and to identify the preferred institutional arrangements and potential barriers in its implementation. The regulation is to be approved by Government upon consultation with Line Ministries, relevant government authorities, academia and CSOs by end 2017.

OUTPUT 4.1 STATUS ON TRACK

Design a regulatory standards & labelling (S&L) programme aimed at stimulating market demand for alternative heating solutions.

GGGI contracted International Institute for Energy Conservation to carry out an impact assessment of the draft regulation, and identify preferred institutional arrangements and potential barriers in implementation. The regulation is to be approved by the Government upon consultation with Line Ministries, relevant government authorities, academia and CSOs by end-2017. The regulation defines a regulatory framework for promoting energy efficient electric appliances, including electric heaters for residential facilities not connected to district heating systems. One major expected benefit of the regulation is to help phase out polluting heating technologies.

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PARTNERS

LOCAL

• Ministry of Environment and Tourism - Ministry of Construction and Urban Development

• Ministry of Finance

• Ministry of Energy

• Energy Regulatory Commission

• Ulaanbaatar Capital City Municipality

• Mongolian Bankers Association

• Business Council of Mongolia

INTERNATIONAL

• GIZ

• Green Climate Fund

• UNPAGE/UNEP

LESSONS LEARNED• The nature of the development of the operational arrangements for the MGFC requires extensive consultative work to be held,

rendered complex by the change of Government in September 2017. In order to speed up decision making, a Working Group was formed with key stakeholders involved, which was later transformed in a Steering Committee for the project.

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MYANMARIMPLEMENTATION OF THE INDC

CONTEXTSince 2011, Myanmar has begun its transition to a market economy, and from military rule to democracy. The opening up of the economy has accelerated growth, with a 6.5% growth average since 2011. The first democratic elections in 25 years took place in 2015. Myanmar relies heavily on natural resources such as energy, minerals, forestry, and agriculture for its main exports and industries, which makes it essential that its growth pattern is environmentally sustainable. Myanmar’s potential needs to be unlocked through careful analysis and by charting a sustainable development path that generates strong economic, environmental and social outcomes.

In support of country’s sustainable development Myanmar needs to address:

• The growing energy demands of its population and expanding economy, while maintaining Myanmar’s international commitment to low GHG emissions; and

• The growing rural and urban demands for forest, agricultural and watershed products and services while addressing the economic and policy drivers of deforestation and landscape degradation.

OVERALL OBJECTIVES• Support Myanmar’s efforts to move towards a low carbon

green growth model that simultaneously achieves poverty reduction, social inclusion, environmental sustainability, and economic growth.

OVERVIEW

Country / Global implementation

MyanmarLeast Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 687,913

% of budget disbursed 73%

HIGHLIGHTS• Completion of the Green Growth Potential Assessment.

• Completion of the MRV assessment report, and MRV Inception Workshop conducted.

RELEVANT SDGs7.2. By 2030, increase substantially the share of renewable energy in the global energy mix.

7.3. By 2030, double the global rate of improvement in energy efficiency.

13.2. Integrate climate change measures into national policies, strategies and planning.

15.2. By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.

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OUTCOME 1 STATUS ON TRACK

Government of Myanmar (MOPAF/MONREC) uses green growth analysis and recommendations in its 2018 planning and policy making. GGGI has engaged with a host of policy makers and stakeholders in the development of its green growth potential assessment (GGPA) and Country Planning Framework (CPF), and has in turn engaged with policy makers in consultations to inform the development of the government’s policy frameworks for green economy, climate change, and environmental conservation.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ACHIEVED

Undertake an assessment of the green growth potential of Myanmar.

• The Green Growth Potential Assessment (GGPA) is a diagnostic tool which consists of a combination of data analysis and stakeholder consultation in order to identify and prioritize a country’s opportunities for green growth.

• The preliminary assessment highlighted several areas where green growth can support development in Myanmar, including improving agricultural productivity, the use of renewable energy for improving rural livelihoods and for productive use, forest protection, and addressing the adverse impacts of climate change and poverty.

• The results of the preliminary assessment were presented at a consultation workshop on 9 February 2017 in Naypyidaw, where stakeholders selected priorities for green growth interventions. The results from the workshop largely confirmed the results of the preliminary assessment. Participants identified five priority areas for green growth in Myanmar, with (1) natural resource depletion, (2) poverty, (3) loss in forest cover, and (4) agricultural productivity representing technical or economic challenges, while participants regarded (5) education as enabling for advances in the first four areas.

• Based on the results of the preliminary assessment and the stakeholder prioritization, the country report analyzed obstacles and opportunities regarding the identified green growth priorities, and suggested a set of recommendations. These recommendations range from policy and institutional reform to infrastructure projects to opportunities for access to international finance. In addition to the detailed technical report which presents the results of the assessment process, including the underlying analysis and key recommendations, a summary report highlights key recommendations that are most relevant for NDC implementation and the development of the CPF.

OUTPUT 1.2 STATUS DELAYED

INDC MRV framework and investment analysis provided to GoM.

• An assessment of the status of MRV in Myanmar has been completed. This involved extensive engagement with national stakeholders and provides a good snapshot of the status of Myanmar’s MRV institutional frameworks.

• The report also compiles key principles and frameworks from credible international sources and presents them in a clear and simplified manner that is accessible to national government implementing agencies. It provides clear recommendations to the government and GGGI for technical assistance to be sourced and institutional frameworks to be developed to enable effective implementation of MRV implementation.

• The report did not, however, assess the extent to which climate change mitigation actions impact on poverty reduction or social inclusion indicators, which will require some supplementary work as we proceed toward developing the MRV program.

OUTPUT 1.3 STATUS ACHIEVED

Capacity development programs on INDC implementation delivered with analysis on best practice cases.

• The MRV Inception Workshop, held on 23–24 November 2017, broadened understanding of key MRV principles and best-practices of participants from 8 ministries and relevant agencies that will be involved in the implementation of an MRV system.

• This was a highly interactive learning event that built on the experiences and expertise in agriculture, forestry, energy, industry, and waste sectors. This event identified challenges and lessons drawn from MRV experiences in Armenia, Chile, Georgia, Azerbaijan, Vietnam; and asked Myanmar participants from 5 MRV sectoral working groups to reflect on local applicability and solutions to address these challenges.

• Interactive presentations were held on MRV implementation in the agricultural sector in Uganda and on MRV institutional development in Ethiopia at national level.

ADDITIONAL RESULTS

• GGGI provided inputs in the formulation of several key policy documents and with regard to institutional restructuring plans currently under review by the cabinet.

• GGGI country team has been working with various Government agencies on the development of the Host Country Agreement and to engage across government to mobilize a constituency for GGGI Accession. Both documents have been approved by MONREC for review by all key cabinet ministries.

• GGGI country office organized or facilitated capacity-building opportunities for more than 130 government staff related to NDC implementation.

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PARTNERS

LOCAL

• Ministry of Natural Resources and Environmental Conservation

INTERNATIONAL

• Vivid Economics

LESSONS LEARNED• Distance between the primary development partners

and private sector offices in Yangon and GGGI’s offices in the administrative capital (Napyitaw), and the limited transportation/communication infrastructure created challenges that GGGI had to overcome. additional costs for operations.

• GGGI’s strategic targeting of sectoral interventions and support will need to remain flexible and pragmatic to be able to respond to new opportunities.

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NEPALIMPLEMENTATION OF THE NATIONALLY DETERMINED CONTRIBUTION OF NEPAL

CONTEXTGrowth of transport sector and motorization – Demand for vehicles has grown by 14% per year during 1990-2015, with much of this concentrated in and around the Kathmandu Valley region. Sustained levels of population growth in Kathmandu, and the increasing prominence of the city’s economy mean that demand for mobility in the capital will remain high for the foreseeable future.

Since the 2000s, air pollution in Nepali cities, particularly Kathmandu, has worsened considerably. Levels of particulate matter in the air around Kathmandu are now similar to those of Delhi and Beijing. A 2007 study found that air pollution lead to approximately 17,000 premature deaths in Kathmandu.

OVERALL OBJECTIVES• Support Nepal in sectoral NDC implementation by identifying

financing options for NDC implementation, and commencing the implementation of the NDC at the local level with municipal agencies.

OVERVIEW

Country Global implementation

NepalLeast Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 626,877

% of budget disbursed 97%

HIGHLIGHTS• Launch the ‘Green Municipality Development Program.

RELEVANT SDGs13.2. Integrate climate change measures into national policies, strategies and planning.

17.3. Mobilize additional financial resources for developing countries from multiple sources.

17.9. Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South, and triangular cooperation.

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OUTCOME 1 STATUS ON TRACK

Sectoral plan for NDC implementation approved by GoN.

The Implementation Plan was drafted in December. It has been produced through extensive consultations with the private sector, the Ministry of Population and Environment and the Ministry of Physical Infrastructure and Transport.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

Electric Mobility Implementation plan for NDC completed and submitted to GoN.

• GGGI delivered a program briefing and presentation to the Ministry of Physical Infrastructure and Transport gaining broad approval for the Electric Mobility NDC Implementation Plan. A review of methodologies and output design options was undertaken including informal consultations with sector experts in order to identify and design an overall methodology. A first round of consultations with stakeholders was held in July, inviting 30 participants from national private sector associations for electric vehicles and the Joint Secretaries of Ministry of Population and Environment and Ministry of Physical Infrastructure and Transport. Over July and August, interviews were held with national and local government representatives as well as scientific and development organizations in Nepal. A consumer survey to gauge consumer satisfaction, views and motivations for switching to private electric vehicles was also undertaken.

• An extensive data-gathering process was undertaken, investing GHG emissions at the national, sectoral and local level, providing the evidence-based rationale and data for policy interventions identified under the Implementation Plan. The Implementation Plan was being drafted during October, November and December 2017, and a full first draft was prepared in mid-December, for subsequent review.

OUTPUT 1.2 STATUS ON TRACK

Pipeline of bankable project ideas developed and submitted to Government of Nepal to advance Electric Mobility NDC implementation.

Consultations undertaken over July and August with Nepali and Indian electric vehicle businesses as well as consultations outlined under Output 1.1 helped feed into project ideation.

OUTCOME 2 STATUS ON TRACK

Municipal level Project proposal approved for implementation and financed.

The production of the pre-feasibility report in October is the first step towards production of a proposal on electric buses.

OUTPUT 2.1 STATUS ON TRACK

Municipal level pilot project proposal on electric buses developed and submitted.

A meeting was held with the Chairman of the public transportation bus system in Nepal who committed to working with GGGI. A review of existing feasibility studies and best practices in the region and globally were undertaken. A passenger/kilometer analysis, initial research into financing options and a cost-benefit analysis were also undertaken. A pre-feasibility report was completed in October and is under technical review.

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PARTNERS

LOCAL

• Ministry of Population and Environment

• Ministry of Physical Infrastructure and Transport

• Sajha Yatayat (Principal public transport operator in Kathmandu, with Kathmandu Municipal Corporation as its majority shareholder)

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PACIFIC REGIONPACIFIC REGIONAL PROJECT FOR

GREEN GROWTH

CONTEXTGreen growth in the Pacific faces implementation challenges, particularly with rural projects, however, Pacific Island governments have also shown high commitment to climate change mitigation, renewable energy development and green growth. In combination with relatively small bureaucracies and power structures, this is an opportunity to support the countries to meet their objectives and promote green growth.

This project is focused on improving the lives of rural and urban citizens in the Pacific region, with replication potential to other SIDS, with a particular focus on social inclusion and gender, and contributing to meeting basic needs, enhancing resilience and mitigating impacts on the environment.

OVERALL OBJECTIVE• Promote green growth options to GGGI countries as well

as other Pacific countries by developing partnerships that facilitate knowledge exchange and provide targeted and practical capacity building.

• Contribute to high level dialogue and continue to develop analysis to support evidence-based decision making.

OVERVIEW

Country / Global implementation

14 countries of the Pacific Island Region

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 176,285

% of budget disbursed 39%

RELEVANT SDGs7.1. By 2030, ensure universal access to affordable, reliable and modern energy services.

11.6. By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

17.6. Enhance the global partnership for sustainable development, complemented by multistakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of sustainable development goals in all countries, in particular developing countries.

HIGHLIGHTS• Regional capacity building workshop on Green Infrastructure

Project Development and Financing.

• Green growth knowledge sharing and policy dialogue at national, regional and international events.

• GGGI joined the Pacific Regional NDC Hub as a partner alongside GIZ, SPREP, SPC and the Global NDC Partnership.

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OUTCOME 2 STATUS ON TRACK

Knowledge on green growth shared between PICs (and SIDS) and other developing countries and increased policy dialogue and articulation of green growth objectives in regional outcome statements and government policies.

PIC green growth objectives articulated in at least one outcome statement or policy document.

RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• In June, GGGI signed an MoU with the Pacific Islands Development Forum.

• GGGI submitted a concept note for a regional energy efficiency project in six Pacific Island countries to the German Government’s IKI call for proposals in partnership with SPC and PCREEE.

• Discussions with PIFS where it was agreed for GGGI to join as an Observer, an MoU to be signed and for GGGI and PIFS to collaborate on private sector capacity building for access to climate finance.

OUTPUT 1.1 STATUS DELAYED

Urban Ecosystem-based Adaptation (EbA) in Support of Green and Resilient Cities. There has been a minor delay with this output, however consultations with relevant stakeholders in Fiji and regionally has taken place to carry out a preliminary identification of relevant green infrastructure sectors and initiatives. A TOR for a consultant has been prepared and the work will proceed as planned in 2018.

OUTCOME 1 STATUS DELAYED

Ecosystem-based Adaptation (EbA) with focus on disaster resilient decentralized green infrastructure at the urban and peri-urban level in the Pacific Islands is promoted. The Regional Program was approved in March 2017, and subsequent time and effort was required to bring on board appropriate GGGI staff.

OUTPUT 2.1 STATUS ON TRACK

PIC green growth objectives discussed at regional and national workshops and policy dialogue meetings and one knowledge product produced.

• GGGI held a regional capacity building workshop on green infrastructure project development and financing in June in Fiji. There were 29 participants from Fiji, Kiribati Tonga and Vanuatu, including government planners and economic analysis, and representatives from regional and national development organizations. The programs focused on green infrastructure projects, public-private partnerships, project financing and government policies that support public-private partnerships on green infrastructure projects. Countries also shared their own case studies and discussed policies and projects undertaken in their countries, sharing knowledge and best practices.

• GGGI provided input at, organized or co-hosted 6 green growth knowledge sharing and policy dialogue at regional and international events. They were: (i) “India-Pacific Islands Sustainable Development Conference (GGGI was a panelist); (ii) GCF Regional Dialogue for the Pacific (GGGI delivered a presentation); (iii) Green Breakfast Event (GGGI co-hosted alongside KOICA); (iv) Climate Action Pacific Partnership Event and Pre-COP (GGGI was a panelist); (v) COP23 Side Events (GGGI organized a side-event titled “How SIDS Are Planning For and Implementing Mitigation Actions to Achieve NDC Targets”); (vi) Regional PEAG, PCREEE, and Renewable Energy Deployment Workshop (GGGI presented an overview of the pre-feasibility studies on 100% Renewable Energy for Ovalau and Taveuni islands).

• GGGI has joined the Pacific NDC Hub as a partner. This platform will enhance Pacific SIDS’ ability to implement the Paris Agreement and 2030 Agenda through improved access to finance, low carbon investment and debt management initiatives, and will enhance countries’ capacity to manage climate risks through long-term sustainable investment programs, legal frameworks, private sector integration and innovative policy development. GGGI will work to align its NDC support in the region with this effort. The partnership is led by GIZ, SPC, SPREP and the Global NDC Partnership.

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PARTNERS

LOCAL

• Pacific Islands Development Forum (PIDF)

• Pacific Community (SPC)

• Secretariat of the Pacific Regional Environment Program (SPREP)

INTERNATIONAL

• Korea International Development Agency (KOICA)

• GIZ

LESSONS LEARNED• GGGI can add value to new and ongoing initiatives through

partnerships with regional organizations in the Pacific. Although there are many actions underway, consultations still identified gaps and niches where GGGI can play an important role, particularly in the areas of project financing and private sector engagement.

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PHILIPPINESCLIMATE RESILIENT GREEN

GROWTH (CRGG)

CONTEXTAs one of the countries most vulnerable to climate change impacts, the Philippines encounters extreme weather occurrences, such as Typhoon Haiyan, that have resulted in significant loss of lives and damage to properties. Recognizing the threat of climate change, the Government of the Philippines passed the Climate Change Act of 2009, which created the Climate Change Commission (CCC) and paved the way for the adoption of the National Climate Change Action Plan. Building on the lessons of the “Demonstration of Eco town Framework Project (Phase 1)”, which was completed in 2014, and responding to Government request to support more local governments units (LGUs), the GGGI, CCC and the Department of Trade and Industry (DTI) initiated in 2015 the Climate Resilient Green Growth (CRGG) Planning Project. Currently implemented in the provinces of Palawan and Oriental Mindoro, the project is designed to promote climate resilience and inclusive, pro-poor green growth to a greater number of LGUs and Micro-Small and Medium Enterprises (MSMEs).

OVERALL OBJECTIVE• Climate change resilience enhanced and inclusive green

growth achieved in participating local government units.

OVERVIEW

Country / Global implementation

PhilippinesLower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 768,991

% of budget disbursed 83%

HIGHLIGHTS• The Provincial Government of Palawan issued and adopted

Provincial Ordinance No. 1865: “Prescribing the Climate Resilience Green Growth (CRGG) Framework for Palawan”.

RELEVANT SDGs11.3. By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.

13.2. Integrate climate change measures into national policies, strategies and planning.

13.a. Implement the commitment undertaken by developed-country parties to the UNFCCC to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible.

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OUTCOME 1 STATUS ON TRACK

Climate Resilient Green Growth (CRGG) Strategies that promote climate resilience, inclusive green growth, and poverty alleviation accepted, adopted, and implemented in 2 participating provinces and replicated in other government units.

GGGI supported the development of Provincial Climate Resilient and Green Growth Strategies for the Provinces of Palawan and Oriental Mindoro to help identify and pursue priority policies and projects that will reduce climate change vulnerability and support inclusive and pro-poor green growth. The strategies were formulated through an approach that was led by the technical staff and officials of the provincial and municipal governments and with active engagement of stakeholders to ensure that these have local ownership and context. In line with the priority projects identified in these strategies, GGGI implemented technical assistance on project identification and proposal preparation for the poorest municipalities of Palawan and Oriental Mindoro to help conceptualize interventions that respond to climate change impacts and address basic socio-economic and environmental needs. The development of detailed project proposals for these projects is now the focus of further GGGI support with the end view of facilitating investment matching with domestic and international funding windows such as the Green Climate Fund, among others.

RESULTS ACHIEVED IN 2017

OUTPUT 2.1 STATUS ACHIEVED

Business case for Greening MSME Operations Piloted.

GGGI produced the “Case Study on Best Green Business Practices among MSMEs in the Food Processing Industry in the Philippines” to illustrate the financial and non-monetary benefits of green business practices based on the assessment of the experience of 12 MSMEs that have initiated more efficient and sustainable business practices. The case study aims to equip GGGI and DTI with sound reference in promoting “green business practices” among MSMEs, which account for more than 60% of employment in the country. The results of the study were introduced and piloted in selected MSMEs and, to date, 6 MSMEs in the Provinces of Palawan and Oriental Mindoro have already started implementing green business practices which include: a.) Use of low energy consumption led lights; b.) Retrofitting of facilities to utilize natural lighting and ventilation; c.) Waste recycling; d.) Efficient water and fuel usage; and e.) Use of solar energy.

OUTPUT 1.1 STATUS ON TRACK

Inclusive and Pro-Poor Green Growth approach, which engages the marginalized sectors at the community level, demonstrated to enhance the social and environmental aspects of the CRGG Project.

GGGI developed the “Inclusive and Pro-Poor Green Growth Concept Note” for the Municipality of San Vicente through a highly participatory process that involved on the-job capacity building and knowledge sharing between project consultants and key local government staff. The said Concept Note informs the ongoing formulation of the “Sustainable and Inclusive Municipal Tourism Code” to ensure that the marginalized and vulnerable constituents of San Vicente, particularly women and indigenous people, are provided opportunities and able to actively participate and benefit in the development momentum of San Vicente.

OUTCOME 2 STATUS ON TRACK

Green business practices adopted by MSMEs in 2 participating provinces.

GGGI has initiated the introduction of green business practices among Micro, Small and Medium Enterprises (MSMEs) in Palawan and Oriental Mindoro. Based on the “Case Study on Best Green Business Practices among MSMEs in the Food Processing Industry in the Philippines”, GGGI has examined the operations of 17 MSMEs engaged in the processing of bananas, cashew, calamansi and coconut oil to analyze their current operations, provide business coaching, and present the potential savings and benefits in adopting more efficient and sustainable manufacturing processes. From this initiative, 6 MSMEs have already adopted a range of “green business practices” that contribute to more efficient use of energy and water and promote waste recycling. GGGI continues to work with additional MSMEs to serve as demonstration cases and “Green MSME Champions” that will facilitate “peer to peer” knowledge sharing to broaden project impact. These MSMEs have community-based operations that employ local workers, including women and those with limited educational attainment, hence contributing also to inclusive and pro-poor green growth.

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RESULTS ACHIEVED IN 2017

OUTCOME 3 STATUS ACHIEVED

Policies resulting from the Provincial CRGG Strategies supported by the concerned government agencies.

The Palawan Provincial Development Council passed in August 2017 “Provincial Development Council Resolution No. 14, Series of 2017: A Resolution Approving and Endorsing the Provincial Climate Resilient Green Growth Strategies for the Province of Palawan” to broadly commit to pursuing climate resilience and green growth in the environment, economic, infrastructure, social, and development administration sectors of the province of Palawan. Taking off from this resolution, the Governor of Palawan approved and signed Provincial Ordinance No. 1865, Series of 2017: “Prescribing the Climate Resilience and Green Growth framework for the Province of Palawan” in December 2017. The said local law enjoins national government agencies, provincial government offices and functionaries, and all local government units in the province of palawan to adopt and conform with the “Palawan Climate Resilient Green Growth Framework”, developed under the CRGG Project, in climate proofing their respective plans, projects and programs. it requires all local government units to enact their respective supporting ordinances and enjoins regulatory agencies to adopt the said framework in their review of applications for permits and licenses for relevant activities in the province. these policies provide the necessary legal foundation for mainstreaming climate resilience and green growth in the policies, budgets, plans and projects in palawan and for aligning public and private sector initiatives towards these.

OUTPUT 3.1 STATUS ON TRACK

Climate resilient and green growth related national and local policies, resulting from the Provincial CRGG Strategies completed in 2016, developed and officially submitted to the appropriate authority.

GGGI informed the formulation of local government policies at the Provincial and Municipal levels to support climate resilience and green growth strategies. In Palawan, GGGI worked with the Executive and Legislative Departments of the Provincial Government in the formulation and issuance of Provincial Development Council (PDC) Resolution No. 14 “A Resolution Approving and Endorsing the Provincial Climate Resilient Green Growth Strategies for the Province of Palawan” together with five (5) supporting PDC Sector Committee Resolutions; and in the development of “Provincial Ordinance No. 1865, Series of 2017: Prescribing the Climate Resilience and Green Growth Framework for the Province of Palawan”. In Oriental Mindoro, GGGI cooperated with 5 local government units, identified as CRGG Project replication sites, in the issuance of Executive Orders creating LGU Technical Working Groups to commit technical staff time and resources for the conduct of CRGG Project activities and the implemetation of project recommendations.

OUTCOME 4 STATUS ON TRACK

Capacity development modules for the implementation of the Provincial CRGG Strategies supported by the concerned government agencies.

In 2017, GGGI conducted twelve capacity development activities in partnership with the Provincial Government of Palawan and Oriental Mindoro and their respective municipalities. The conduct of these training activities demonstrated the strong support of the concerned local government units as they provided both in-kind contributions in the form of technical staff time and modest financial counterparts such as the transportation and accommodation costs of the participants, and in some cases the cost of the training itself. LGUs and partners are willing to cost-share and invest in training activities that they recognize to have relevance and value-addition. As GGGI earns the trust and confidence of partners, the direction is towards encouraging LGUs to provide substantial financial counterparts for capacity development activities as this enhances LGU ownership and instills responsibility on the part of the participants to re-echo and share the knowledge gained with colleagues.

OUTPUT 4.1 STATUS ON TRACK

Institutional capacity development strategy and training modules, to support the implementation and mainstreaming of provincial CRGG strategies developed in 2016, delivered.

Twelve (12) capacity development activities were delivered, benefiting 496 participants from local governments and stakeholders, in Palawan and Oriental Mindoro on the subject of: a.) GHG Inventory; b.) Local Climate Change Action Plan Formulation; c.) Development Pathways Analysis; d.) Local Economic Modeling for Local Governments; e.) CRGG Implementation and Monitoring and Evaluation Systems; f.) Provincial CRGG Strategy Training; and g.) Project Proposal Write-shop for Bankable Projects.

OUTPUT 4.2 STATUS ON TRACK

Information, Education and Communications (IEC) activities to effectively communicate CRGG lessons/results delivered.

Key project results and activities are published in the local newspapers of the concerned provinces and even aired on local cable television and news programs. News articles are prepared and shared with the local governments and uploaded in the websites of the GGGI and partner government agencies. Currently, GGGI is conducting an “Outcome and Impact Assessment of the Ecotown Project in San Vicente” to strategically document and communicate project experience and lessons.

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PARTNERS

LOCAL

• Climate Change Commission

• Department of Trade and Industry

• Provincial Government of Palawan

• Provincial Government of Oriental Mindoro

• Municipal and City Governments (24 – Palawan and 15 – Oriental Mindoro)

• Micro-Small and Medium Enterprises in the 2 provinces

• Palawan Council for Sustainable Development

• Academic Institutions and Civil Society Organizations in the 2 provinces

LESSONS LEARNED• It important that similar development interventions are designed to consider the Philippine’s decentralized governance context,

where local government units (LGUs) are accorded political and fiscal autonomy to plan and manage the development of their localities and provide basic services to their constituents. Said interventions need to take into account the technical and financial capacity limitations of LGUs, especially those in the lower income classes, to ensure that project activities are customized to respond to the context and needs of LGUs. A “one-size fits all” approach will not work. It is important to ensure that LGUs are in the pilot seat so that they acquire ownership of project activities and results. A demand-driven approach will complement this.

• It is important for local stakeholders, especially the marginalized and vulnerable ones, to be actively engaged alongside the LGUs to mitigate an “LGU Centric Approach” to project design and implementation. This needs to be carefully managed, though as there is a wide range of dynamics between local stakeholders and local governments given also a broad set of interests.

• Project tools and materials need to be simplified. LGU officials and staff are among the overworked personnel in the Philippine bureaucracy and it will be more effective if project materials could be simplified, without compromising their analytical use.

• Project interventions need to be clear about concrete project outcomes. Given the mandate of LGUs as providers of basic and frontline services, analytical exercises are expected to lead to tangible results such as projects that will help LGU address climate change impacts and pursue local economic development. The connection between analysis and project development, such as in the GGGI Value Chain, appeals to this LGU interest.

• Timing is critical. LGU officials have a three-year term of office coinciding with the local election cycle. Hence, it is important to design projects that consider this because the change in leadership could also affect political buy-in and support. In the same vein, it is important to establish relationship with both the Executive and Legislative Departments of the LGU to ensure that support comes from both branches.

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PHILIPPINESMAINSTREAMING GREEN GROWTH

IN DEVELOPMENT PLANNING

CONTEXTThe Philippines’ decentralized governance structure and cyclical changes in Government Administrations – six years for national government and three years for local government- have impacted the continuity of government plans and projects. Recognizing these institutional constraints, NEDA, the lead socio-economic planning agency of the Philippines, has developed a National Long-Term Vision (NLTV) to give continuity to government programs across ensuing administrations. The NLTV embodies the aspirations of the Filipino people and provides the basic framework in the formulation of national, sectoral and local development plans, such as the Philippine Development Plan. The NLTV serves as a strategic platform to introduce new approaches in national development planning.

However, a critical gap remains in the operationalization of the NLTV, particularly in its ability to be cascaded with appropriate climate goals and adopted by the Local Government Units to eventually influence the formulation of their respective local development plans. Strengthening the national, regional and local government planning nexus, and harmonizing the sectoral and thematic planning, strategies and targets through the use of a green growth lens would be a critical element in ensuring that SDG targets are achieved as envisioned by the NLTV, and inclusive growth and climate resilience are promoted.

OVERALL OBJECTIVE• Support the government in ensuring that green growth

is incorporated into national, regional and provincial development planning.

• Facilitate the improvement of development guidelines for adoption and the development of a replication plan in order to scale up the use of the guidelines.

OVERVIEW

Country / Global implementation

PhilippinesLower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q4 2016

Funding source Core

2017 budget USD 405,995

% of budget disbursed 96%

HIGHLIGHTS• Prepared for pilot-testing the Green Growth Toolkit for

Development Planning.

• Secured Legal and Operational Mandate to Institutionalize Green Growth in Development Planning at the Pilot Provincial and National Agencies:

• Adoption of Executive Order 11-016, Series of 2017 of the Provincial Government of Dinagat Islands (Region 13, Mindanao).

• Adoption of Executive Order 02, Series of the Provincial Government of Bataan (Region 3, Luzon) in support of the 2017 Provincial Legislative Council Resolution Supporting Green Growth Planning

• Commenced delivery of capacity development on green growth planning to the pilot Provincial Government of Bataan (Region 3, Luzon), Provincial Government of Dinagat Islands (Region 13, Mindanao), and the pilot National Government Agency – the Bureau of Micro, Small and Medium Enterprise Development

RELEVANT SDGs8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro ,small- and medium-sized enterprises, including through access to financial services.

13.2. Climate Action: Integrate climate change measures into national policies, strategies and planning.

17.14. Enhance policy coherence for sustainable development.

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OUTCOME 1 STATUS ON TRACK

Guidelines for mainstreaming green growth tools in planning adopted as reference in government development planning.

The Green Growth Toolkit produced under output 1.1 will be pilot-tested in 2018 in the Provincial Government of Bataan and the Provincial Government of Dinagat islands as well as in the Bureau of Micro-Small and Medium Enterprise Development (BSMED).

RESULTS ACHIEVED IN 2017

OUTCOME 2 STATUS ON TRACK

Adoption by the government of green growth guidelines.

The outcome will largely be informed by the work of output 2.1 which is scheduled to begin in 2018.

OUTPUT 1.2 STATUS ON TRACK

Training for partners and key stakeholders on the green growth tools conducted.

• Training for partners and key stakeholders commenced in June 2017 with the conduct of the Training Workshop on Capacity Needs Assessment (CNA) which were conducted in the Pilot Provinces of Bataan and Dinagat islands, and the Pilot National Government Agency – the Bureau of Micro, Small and Medium Enterprise Development. Undertaken at the initial phase of the capacity building component, the CNA validated the baseline information on the pilot province and confirmed the engagement and commitment of partners, with an opportunity to level off and clarify: a) development vision, priorities and directions, b) institutional arrangements; and c) existing knowledge and capacity for green growth planning. Results of the CNA further informed the Project of the best approach and design to respond to the Pilot province’s planningrelated capacity assets and needs, readiness to proceed with the pilot-testing of the Toolkit by capacity development to address the capacity gaps and meet the objectives of the project.

• The preliminary trainings conducted, one each for the Provincial Government of Bataan and Dinagat Islands, and the DTI-BMSED, served as sensitization sessions aimed to introduce the green growth concept as a development approach, share the green growth experiences in selected countries and how they were successfully mainstreamed, as well as some lessons learned associated with the green growth experience. Case studies relating specifically to the selected sector/theme (energy, tourism and MSME) were showcased providing the context and parameters for success by utilizing the green growth strategic outcomes, and the driver or facilitating factors were underscored. With the Green Growth Planning Toolkit drafted, the Training Modules for each of the pilot agencies were designed to implement the Toolkit within the development planning context and priority sectoral/thematic focus selected by the pilot agencies. The conduct of trainings will continue until June 2018.

OUTPUT 1.1 STATUS ACHIEVED

Green growth planning guidelines and toolkit drafted for piloting.

• Drawing on extensive consultations with the central and regional offices of the National Economic and Development Authority, a green growth toolkit for development planning was completed on the 31st October 2017. The toolkit contains an operational framework, a step-by-step guide, analytical tools, templates and checklists. It is designed to give users the flexibility to adapt it to their situations whilst maintaining a focus on the key development planning steps. It is anchored to the national Long-Term Vision 2040 and the Sustainable Development Goals. The toolkit also includes a resource note which provides the conceptual foundations and applications of green growth concepts locally and globally. It presents the framework for mainstreaming green growth in Philippines development planning, showcasing the green growth elements already embedded in the country’s legal, policy and institutional frameworks.

• The Toolkit is comprised of 2 volumes: 1) Operational Guide which showcases green growth entry points in each of the key planning steps; lists analytical tools to evaluate planning and policy options; and, presents a robustness checklist for use when drafting or updating the sectoral or thematic plans; and, 2) Reference Note which elaborates on the concept of green growth principles, approaches, strategies and outcomes; lists various analytical tools in aid of evidence-based development planning; features green growth experiences in selected countries; and, showcases good practices on energy, tourism and MSME as the current sectoral or thematic focus selected by the two pilot provinces (Bataan on energy; Dinagat Islands on tourism) and one national agency (DTI-BSMED on micro, small and medium enterprise development). Training Modules were designed to guide the application of the Toolkit.

OUTPUT 2.1 STATUS ON TRACK

National and local development plans enhanced using green growth planning guidelines and tools.

GGGI is initiating work on this output in Q1 2018.

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PARTNERS

LOCAL

• National Economic and Development Authority—Central Office and its Regional offices: Region 3 (NRO 3) and Region 13 (NRO 13/NRO Caraga)

• Department of Trade and Industry – Bureau of Small and Medium Enterprise Development and its Regional Offices in Regions 3 and 13

• Local Government Unit (LGU): Provincial Government of Bataan (Region 3, Luzon)

• Local Government Unit: Provincial Government of Dinagat Islands (Region 13, Mindanao)

• LGU: 14 Municipalities in the Pilot Provinces of Bataan and 7 Municipalities in the Dinagat Islands

• Department of Energy

• Department of Tourism and its Regional Offices in Regions 3 and 13

• Philippine Statistical Authority

• Tourism Infrastructure and Enterprise Zone Authority

• Department of Environment and Natural Resources and its Regional Offices in Regions 3 and 13

• Environment Management Bureau and the Regional Offices of Regions 3 and 13

• Mines and Geo Sciences Bureau Region 13 Office

• PENELCO and DIELCO (Energy Distribution Utilities in the Provinces of Bataan and Dinagat Islands, respectively)

LESSONS LEARNED• The fundamentals to mainstreaming green growth in development planning have been put in place and is proceeding steadily

with the critical engagement of NEDA as the lead socio-economic and planning agency in place. Having secured a buy-in from NEDA through regular consultation on project implementation strategies and evaluation meant that support from all levels of governance on development planning from various sectoral and thematic agencies are effectively facilitated. Therefore, the interventions at the country level of GGGI towards the mainstreaming of green growth in development planning at the national, regional and local levels, and interest to have green growth mainstreamed in the planning of other government agencies are gaining traction and efforts towards institutionalization of green growth in development planning remain very optimistic.

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PHILIPPINESSUPPORT TO THE

OPERATIONALIZATION OF THE PEOPLE’S SURVIVAL FUND (PSF)

CONTEXTThe PSF was legislated through Republic Act 10174 amending the Climate Change Act of 2009. The PSF was established as a special fund under the National Treasury dedicated to finance local climate change adaptation interventions that aim to respond to the National Framework Strategy on Climate Change (NFSCC) and the National Climate Change Action Plan (NCCAP) with a minimum allocation of approximately USD 25 million annually. The PSF is mainly designed for the local government units (LGUs) and government-accredited local community organizations (LCOs), specifically to address the funding gaps for the local climate adaptation projects that are aligned with the national/local climate change adaptation-disaster risk reduction plans and/or national/local climate change action plans.

The Climate Change Commission (CCC) as one of the PSF Board member requires assistance to operationalize the Fund, as well as in delivering its mandate and function to mainstream climate change policies in the national and local development plans and projects. Particularly assisting those poorer LGUs who are relatively behind in terms of capacity to satisfy the technical conditions and requirements of PSF and other similar climate financing facilities.

OVERALL OBJECTIVE• Improve and strengthen the operational capacity of the

PSF Board members, particularly the Secretariat’s ability to manage, deploy and track progress of the Fund’s utilization.

OVERVIEW

Country / Global implementation

PhilippinesLower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 631,682

% of budget disbursed 91%

HIGHLIGHTS• GGGI successfully prepared institutional documents for the

operationalization of the People’s Survival Fund (PSF).

• GGGI assisted in developing a results-based Monitoring and Evaluation system for the efficient monitoring of PSF proposals.

RELEVANT SDGs13.2. Integrate climate change measures into national policies, strategies and planning.

13.a. Implement the commitment undertaken by developed country parties to the UNFCC to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible.

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OUTCOME 1 STATUS ON TRACK

Improved (in terms of effectiveness and efficiency) operationalization and management of the PSF Program.

The achievement of Output 1.1: the preparation of the Institutional Capacity Development (ICD) Plan, the Strategic Roadmap for the Implementation of the PSF and a proposed accreditation mechanism to allow local community organizations (LCOs) to access the fund has set the groundwork for operationalization of the PSF Program.

RESULTS ACHIEVED IN 2017

OUTPUT 1.2 STATUS ACHIEVED

Establishment of the PSF Monitoring and Evaluation System.

• GGGI has supported the PSF Secretariat to develop a Monitoring and Evaluation System (MES) to help provide a systematic way to monitor, track and manage the project proposals submitted by LGUs and LCOs. The MES also provides the Secretariat information and data essential for its reporting processes. Moreover, the MES functions as a knowledge management tool. It is a repository of data and information for the PSF Secretariat needed for policy decisions and actions.

• GGGI also developed a PSF Guidebook on Results-Based M&E to ensure value for money and manage results to achieve meaningful progress. The guidebook serves as a preliminary document in promoting a common understanding and reliable practice of results-based M&E for PSF. This allows a continuous feedback of information for governing and decision-making, ensuring an emphasis on results-driven planning and implementation.

OUTPUT 1.3 STATUS ON TRACK

PSF related Knowledge Management Products and Activities developed.

• The PSF Project has produced two audio visual presentations to support CCC in its capacity building activities in assisting the LGUs in the project identification, development and preparation of the needed technical documents required to access the PSF.

• The first video defines key climate change terms establishes the relationships between climate change adaptation and disaster risk reduction; provides climate information and data relevant to local adaptation planning and details the context of establishing the PSF. The second video provides information on the PSF, including its legal background, roles of different agencies in the PSF operations, requirements to access and PSF post approval processes.

• The MES detailed in Output 1.2 functions as a knowledge management tool. It is a repository of data and information for the PSF Secretariat needed for policy decisions and actions.

OUTCOME 2 STATUS ON TRACK

PSF operational tools for the efficient and effective management of PSF accepted by the Government.

The Coaching and Mentoring System detailed in Output 2.1 is being included in every PSF training and workshop roll-out in LGUS.

OUTPUT 2.1 STATUS ON TRACK

Project Development Toolkits to support LGUs and communities developed.

GGGI provided support on establishing a Coaching and Mentoring System on proposal development. The system includes hands-on training, inputs by mentors/trainers, participation in group discussions and learning events, and subsequent processing of learning experiences with trainers and experts. The system is used in every PSF training and workshop roll-out in the LGUs. The system aims to: train the LGUs and stakeholders in the identification and assessment of the risks and impacts of climate hazards; capacitate stakeholders in developing climate science; and to help LGUs to prepare their own climate action plans and roadmaps.

OUTPUT 1.1 STATUS ACHIEVED

Capacity Development and Strategic Action Plan developed.

• GGGI provided support to the PSF Secretariat through the institutional strengthening component of the PSF Project to develop an Institutional Capacity Development (ICD) Plan. The plan provides a brief description of the PSF including its legal basis and objectives; describes the status of PSF performance, identifies specific issues and challenges as well as the emerging gaps from the PSF’s desired performance; and outlines the specific strategies that shall be implemented to strengthen the institutional capacity of the PSF secretariat.

• To support the ICD Plan, a strategic roadmap for the implementation of the PSF was likewise developed. It is a 10-year roadmap that provides the context and discusses the PSF strategic framework defined in the ICD Plan. The roadmap identifies the strategic objectives, key result areas and priority activities that need to be undertaken to effectively and efficiently utilize the PSF.

• The project also proposed an accreditation mechanism for LCOs to access the PSF. Section 23 of the RA 10174 stipulates that LCOs be allowed to access the PSF and mandates that the CCC develop accreditation guidelines for LCOs. The paper likewise discusses the mechanism for the transfer of funds to accredited LCOs selected to implement projects funded by PSF.

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OUTCOME 3 STATUS ON TRACK

Knowledge and capacities of the LGUs on PSF project proposal preparation enhanced.

The Coaching and Mentoring System on proposal development detailed in Output 2.1 is being rolled-out in the LGUS, helping to develop their capacities through hands-on trainings, feedback from trainers and participation in group discussions and learning events.

RESULTS ACHIEVED IN 2017

OUTCOME 4 STATUS ON TRACK

Finance mobilized for bankable projects.

OUTPUT 4.2 STATUS DELAYED

Bankable projects developed in green infrastructure in energy (RE, EE), green cities or other sectors and submitted for financing approval (building on from 2016 output b for project design & preparation - green infrastructure origination for ecotown project. No projects were identified at this stage in the overall initiative that requires external finance to be procured, therefore this output has been deferred as a result.

OUTPUT 4.1 STATUS ON TRACK

PSF Financing Framework and Resource Mobilization Strategy developed.

GGGI initiated the development of the terms of reference for this output in November 2017.

ADDITIONAL RESULTS

• As a recognition of the works done by GGGI at the early stage of the PSF operationalization, the Department of Finance (DOF), the chairman of the PSF Board, uses the recommendations of the scoping work done by the Project to guide the institutional directions of the PSF as well as utilizing some of the suggested policy tools and mechanisms to effectively and efficiently operationalize the Fund. It should also be noted that the DOF is very much keen to work with GGGI particularly on the Resource Mobilization Component of the Project.

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PARTNERS

LOCAL

• Climate Change Commission (CCC)

LESSONS LEARNED• Though it remains to be seen how the operationalization

of the PSF will unfolds with the DOF, CCC being the PSF Secretariat since the Fund inception until July 2017 represents a rich compendium of lessons when taken in totality. This should benefit the next phase of the Project from deepening the dialogue, working a much closer tie, and more effective institutional arrangements among government agency members of the Board.

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THAILANDACCELERATING IMPLEMENTATION

OF THAILAND’S NATIONALLY DETERMINED CONTRIBUTION (NDC)

CONTEXTUnder its Nationally Determined Contribution (NDC) commitment, Thailand aims to reduce GHG emissions by 20-25% from projected BAU levels by 2030. This forms part of the government’s vision for climate-resilient and low-carbon growth and is aligned to both the current 5-year National Economic and Social Development Plan and Thailand’s Climate Change Master Plan. To meet this commitment, there is an urgent need to systematically cascade the economy-wide NDC target into sectoral targets, so that sector-specific plans can be formulated and implemented. There is also the need to demonstrate actual NDC implementation on the ground.

OVERALL OBJECTIVE• Support Thailand to develop and implement the plans and

measures of the NDC Action Plan for the Industrial Sector.

OVERVIEW

Country / Global implementation

ThailandUpper Middle Income Country (UMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 504,680

% of budget disbursed 69%

HIGHLIGHTS• Completion of the NDC Action Plan for the Industrial Sector.

• GGGI and Thailand jointly agreed on the Country Planning Framework (CPF), a five-year cooperation framework.

RELEVANT SDGs7.3. By 2030, double the global rate of improvement in energy efficiency

9.4. By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-used efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

13.2. Integrate climate change measures into national policies, strategies and planning

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OUTCOME 1 STATUS ON TRACK

Thai Government adopts the NDC Action Plan.

GGGI has successfully developed an NDC Action Plan for the Industrial Sector. The Action Plan was well received by relevant stakeholders from government agencies, private sector, development agencies, and others, and awaits government adoption.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ACHIEVED

Thailand NDC Action Plan for Industrial Sector developed.

The NDC Action Plan for the Industrial Sector was successfully completed. It outlines priority subsectors and emission reduction measures, potential implementation mechanism and key elements of relevant agencies’ functions and institutional structures. It also includes a monitoring, review and verification framework to track progress against NDC goals.

OUTPUT 1.2 STATUS ON TRACK

NDC Capacity enhanced.

GGGI started to assess capacity gaps and needs from stakeholders in 2017. The project consulted with government agencies, industries, the private sector, academia and civil society to identify areas where the project can strengthen capacity building activities. These include GHG reduction measures, green project development and supporting schemes and policies.

OUTCOME 2 STATUS ON TRACK

Thai Government actively implements the NDC action plan and measures for the industrial sector.

The Outcome is on track to commence in 2019. In 2017, GGGI and Thailand jointly agreed on the Country Planning Framework (CPF), a five-year cooperation framework. The CPF aligns GGGI’s potential in-country interventions and strategic objectives with Thailand’s development priorities in industry and green urbanization. GGGI also engaged the government in several bilateral meetings and an inclusive workshop on Thailand’s urgent needs and GGGI’s complementary strengths.

OUTPUT 2.1 STATUS ON TRACK

NDC implementation and green project development demonstrated.

In 2017, GGGI began work on NDC implementation through development of bankable projects. GGGI approached around 50 small and medium-sized enterprises to explore the potential for green project development. Nine projects were selected for further assessment and site visits. By the end of 2017, GGGI shortlisted two potential green projects for further development.

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PARTNERS

LOCAL

• Office of Natural Resources and Environmental Policy and Planning

• Ministry of Natural Resources and Environment

• Office of the National Economic and Social Development Board (NESDB)

• Thailand Greenhouse Gas Management Organization (TGO)

• Ministry of Energy

• Ministry of Industry

• Federation of Thai Industries

• Other relevant stakeholders from related ministries, academic institutions, private/industrial sector, and civil society

LESSONS LEARNED• GGGI developed a GCF Preparatory Support proposal on

Advancing Thailand’s Access to GCF. The project aims to assist Thailand to be ready to access GCF’s resources and will be on track to achieve its NDC targets. The project is expected to start in early March.

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THAILANDTHE THAI AUTO PARTS SUPPLY CHAIN DEVELOPMENT THROUGH ENERGY

EFFICIENCY (TAPEE) PROGRAM

CONTEXTThe Industry GHG Reduction Roadmap, which was developed with GGGI support during 2014-2016, focuses on three high impact industrial sectors: automotive parts, palm oil, and frozen seafood. All these sectors are crucial to consider in NDC implementation and have significant GHG reduction potential. Developing green projects (e.g. energy efficiency, renewable energy) in these sectors could effectively contribute to national effort in meeting NDC targets.

• Small and Medium Enterprises (SMEs) in these sectors lack the technical and financial capacity to develop and implement the green projects.

OVERALL OBJECTIVES• Reduce GHG emissions by approximately 3-5 MtCO2e in

three selected manufacturing sub-sectors (i.e., auto parts, palm oil, and frozen seafood), which will result in up to THB 4.3 billion in cost savings.

• Operationalize an EE risk-sharing facility established by the Royal Thai Government and/or local FIs that will mobilize private sector investment; and

• Operationalize an OBR/OBF mechanism established by a utility in Thailand (i.e., PEA) that will mitigate credit risk and streamline loan repayment through cost savings; and

• Mobilize a minimum of USD 30 million in financing for EE investment in the SME auto parts sector.

OVERVIEW

Country / Global implementation

Thailand Upper Middle Income Country (UMIC)

Thematic area Energy

Project start date Q1 2017

Funding source Core

2017 budget USD 63,456

% of budget disbursed 92%

RELEVANT SDGs7. Ensure access to affordable, reliable, sustainable and modern energy for all.

9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

17. Strengthen the means of implementation and revitalize the global partnership for sustainable development.

HIGHLIGHTS• Developed partnership with state-own utility company, PEA,

which initiated energy audits in 20 companies.

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OUTCOME 1 STATUS ON TRACK

The energy efficiency market in Thailand is expanded.

The initial Energy Audit of20 companies is to be completed in early 2018, followed by 200 audits by April 2018.

RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• GGGI developed partnership with key stakeholders for TAPEE program.

OUTPUT 1.2 STATUS DELAYED

Design on-the-bill repayment/financing mechanism for Thai Auto Parts Energy Efficiency Program. Agreement with PEA on On-the-bill repayment mechanism is underway.

OUTPUT 1.1 STATUS DELAYED

Design Risk Sharing Facility for Thai Auto Parts Energy Efficiency Program. While a technical advisory consultant was brought on board, the de-risking facility establishment work was delayed because the financing option is not yet finalized.

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PARTNERS

LOCAL

• Office of Natural Resources and Environmental Policy and Planning (ONEP), Ministry of Natural Resources and Environment

• Provincial Electricity Authority (PEA)

LESSONS LEARNED• The time needed for awareness raising, coordination

and capacity building within Government as well as local stakeholders should not be underestimated;

• These types of projects engaging multiple local stakeholders require a solid focal person who has a strong relationship with local stakeholders.

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VANUATUGCF READINESS PROGRAM

FOR VANUATU

CONTEXTTo contribute to the country’s energy access and sustainability targets the Government of Vanuatu approved the establishment of the National Green Energy Fund (NGEF) through a decision by the Council of Ministers in 2016. GCF Readiness Program will allow NGCF to finalize required feasibility studies with an aim to enable an informed decision by the government regarding the NGEF strategy and implementation priorities.

• Vanuatu has more than 60 inhabited islands and is extremely vulnerable to climate change but has only 9% electrification in off-grid areas (outside of urban concession areas).

• The country has a USD 20 million financing gap to achieve national energy access targets has been identified (National Energy Roadmap, 2016). At the same time under the sustainable energy objective, a target of 100% renewable energy in the electricity sector has been set for the year 2030 (Nationally Determined Contributions, 2015).

OVERALL OBJECTIVES• Inform the strategy and implementation planning of

National Green Energy Fund (NGEF) by identifying potential opportunities – both short term and long term.

• Support the design and operationalization NGEF.

OVERVIEW

Country / Global implementation

VanuatuLeast Developed Country (LDC)

Thematic area Multi-sectoral

Project start date Q3 2017

Funding source EarmarkedGreen Climate Fund

2017 budget USD 370,000

% of budget disbursed 34%

RELEVANT SDGs7. Ensure access to affordable, reliable, sustainable and modern energy for all.

17. Strengthen the means of implementation and revitalize the global partnership for sustainable development.

HIGHLIGHTS• Initiation of an off-market demand study, a renewable energy

technology feasibility study and a market infrastructure and business model study.

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OUTCOME 1 STATUS ON TRACK

Project/program preparation support, including for adaptation, to develop funding proposals provided.

A consultant has been engaged and project/program preparation support underway. Desktop market demand assessment was completed.

RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• GGGI developed collaboration opportunities with the IUCN (International Union for Conservation of Nature) Oceanic Regional Office in Fiji, which has potential to be the Accredited Entity for GCF in support to the NGEF. There were to develop and submit funding a proposal to GCF in Q1 of 2018. An MoU is being discussed for roles and responsibilities between the two agencies GGGI and IUCN Oceania Regional Office.

• GGGI also explored collaboration opportunities with the Korean International Corporation Agency (KOICA), which ha directly reached out to the Government of Vanuatu showing interest on their engagement and potential investment on the fund. GGGI facilitated the preparation of the concept notes by providing technical advice and the Department of Energy is bilaterally consulting with KOICA.

OUTPUT 1.1 STATUS ON TRACK

Completion of the Feasibility Studies.

While desktop market demand assessment was completed, in-country market demand assessment is to be conducted in early 2018. Technical feasibility assessment and investment analysis with pipeline project identification work will follow in Mar-May 2018.

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PARTNERS

LOCAL

• Ministry of Climate Change and the Department of Energy (DoE)

• Department of Women’s Affairs, Department of Local Authorities (DLA)

• Department of Strategic Policy, Planning and Aid Coordination (DSPPAC)

• Department of Finance and Treasury

• Department of Tourism Development (DoTD),

• Department of Geology Mines and Water Resources

• Department of Agriculture

• Vanuatu Skills for Growth(TVET) and Vanuatu Bureau of Standards

• National Bank of Vanuatu Ltd.

• Bank of South Pacific Ltd.

• VANWODS Ltd.

• Vanuatu National Council of Women

INTERNATIONAL

• BMZ

• Energy4All Ltd.

• ACTIV Association

LESSONS LEARNED• Understanding GCF disbursement process and requirements: This readiness program was the first readiness program handled

by GGGI. The organization gained detailed knowledge of the GCF and its Readiness Program which will support future work moving forward.

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VANUATUMOBILIZING FINANCE FOR GREEN

ENERGY PROJECTS IN VANUATU

CONTEXT• Vanuatu is a Small Island Developing State, consisting

of more than 80 remote islands and highly vulnerable to climate change. Its remoteness, small market size and limited institutional capacity remain key barriers to green growth. Over 2015-2016, in collaboration with the World Bank, GGGI provided technical assistance to the Department of Energy for the revision of the National Energy Road Map (NERM). The revised NERM has identified five strategic areas for policy intervention in the energy sector: accessible energy, affordable energy, secure and reliable energy, sustainable energy and green growth. In addition, a financing gap of at least USD 20 million was identified to achieve national energy access targets.

• 73% of Vanuatu’s population does not have access to electricity. The Project aims to implement the objectives of the NERM to achieve 100% rural electrification, while also supporting the 100% renewable energy target also set out in the NERM. It will do so by helping to mobilize financial resources to help fill the USD 20 million financing gap for Vanuatu. The NGEF was included in the NERM as one of the tools for its implementation.

• The Program also aims to provide green employment opportunities in rural areas through use of renewable energies.

OVERALL OBJECTIVE• To support the Government of Vanuatu’s establishment and

operationalization of the National Green Energy Fund and to mobilize financing for a green energy projects.

OVERVIEW

Country / Global implementation

VanuatuLeast Developed Country (LDC)

Thematic area Energy

Project start date Q1 2017

Funding source Core

2017 budget USD 931,874

% of budget disbursed 75%

RELEVANT SDGs5.c. Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.

7.1. By 2030, ensure universal access to affordable, reliable and modern energy services.

7.2. By 2030, increase substantially the share of renewable energy in the global energy mix.

13.a. Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible.

HIGHLIGHTS• The National Green Energy Fund (NGEF) was set up on May

29, 2017, and the government contributed a seed fund of USD 86,000 with a planned allocation of USD 0.6 million annually from 2018. The NGEF Task Force was established and met five times and the NGEF Manager was recruited. Fund design incorporated policy to mainstream gender and social inclusion.

• The Vanuatu Country Planning Framework 2017-2021 was signed in June 2017, by the GGGI Director General of GGGI and the Minister of Climate Change in Vanuatu.

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OUTCOME 1 STATUS ON TRACK

Increased financing for energy access and green energy projects mobilized through establishment of a National Green Energy Fund (NGEF), institutional capacity building and project proposal development.

• Whilst unavoidable delays caused by a volcanic eruption and recruitment delays have slowed progress, the project remains on track to increase finance for energy access and green energy projects through the NGEF.

• A GCF readiness project was approved in March 2017 and is underway to carry out market assessments, feasibility studies and develop a pipeline of projects for the NGEF. In addition, GGGI has assisted the Government to submit 3 concept notes to KOICA for funding to the NGEF.

• As described in Output 2.1, substantial work has been done to increase the institutional capacity of the NGEF. A training workshop was completed in April for the Department of energy and the Utilities Regulatory Authority on the NGEF and on energy project prioritization. Training workshops were also carried out for the NGEF Task Force members in April and November. The NGEF training workshops resulted in letters of intent from two institutions to partner with the NGEF signaling that institutional capacity building is increasing the likelihood of increased financing for energy access and green energy through the NGEF.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

Appropriate legislative framework identified and the NGEF integrated into existing government financial systems.

• The Vanuatu CPF was launched focusing on strengthening Vanuatu’s inclusive and sustainable energy development effort.

• The operational manual and procedures was completed at the end of 2017. Extensive consultations have been carried out with the Ministry of Finance and the Reserve Bank of Vanuatu regarding the legislation and financial integration of the NGEF into the Vanuatu financial system. The drafting of legislation has been delayed slightly due to the volcano eruption and Government decisions and will be completed by 31st January 2018. The NGEF legislation is expected for approval by the Parliament in June, 2018.

• A gender assessment for the implementation of the NGEF was completed in October 2017, this facilitated, amongst others the development of gender policy into the NGEF design support, the alignment of the fund with the National Gender Policy and People’s Plan, the alignment with budget requirement to track gender-related investments and opening up broader stakeholder engagement.

OUTPUT 1.2 STATUS ON TRACK

Institutional capacity for energy projects strengthened and guidelines for accessing energy financing developed. This will include enhancing project identification and prioritization, design, evaluation and management skills for officers from Government implementing agencies and other key stakeholders.

• GGGI has supported five meetings of the NGEF Task Force and attended the Department of Energy annual retreat and contributed towards the development of the 2017 DoE Business Plan.

• A training workshop was completed in April for the Department of energy and the Utilities Regulatory Authority on the NGEF and on energy project prioritization. Training workshops were also carried out for the NGEF Task Force members in April 2017 and November 2017.

• A private sector workshop was also carried out for the NGEF Task Force members in April and November. This resulted in letters of intent from two institutions to partner with the NGEF.

• Green Infrastructure Project Development and Financing Regional Capacity Building Workshop was conducted in Suva, Fiji on June 27-28. Seven government officials from Vanuatu attended the workshop, from the Department of Energy, the Department of Geology Mines, and Water Resources, and the Department of Public Works. These are GGGI government counterparts who are involved in energy and infrastructure sector activities in Vanuatu.

OUTPUT 1.3 STATUS ON TRACK

National Green Energy Fund (NGEF) designed and established and operationalization documents prepared.

• The National Green Energy Fund was formally approved and set up under Model 1 by the Council of Ministers (CoM) on May 29, 2017, establishing an NGEF Unit within the Department of Energy and the NGEF Task Force comprised of the Ministry of Climate Change, the Ministry of Finance, DSPPAC and DLA. Through this CoM decision, an initial amount of VT7.3 million, roughly USD 68,000, was allocated for NGEF operations and investment as part of Government Contribution for 2017-2018. The Government is in the process of allocating another USD 0.6 million annually from domestic sources (electricity bill levy) toward the fund, from 2018 onwards. GGGI also assisted the Gov to submit 3 concept notes to KOICA for funding to the NGEF.

• A Project Manager for the NGEF was recruited in November 2017 to support the NGEF Task Force, with the responsibility to lead in activities towards setting up the Fund as an independent public entity.

• The NGEF has met five times since June this year and has approved TORs for further activities supported by GGGI including drafting of the NGEF legislation, NGEF operations manual and management rules and procedures.

• The NGEF Operational Manual has incorporated gender and social inclusion in funding evaluation criteria. GGGI also facilitated the inclusion of Vanuatu’s Department of Women’s Affairs in the fund’s future Board to ensure continued attention to its contributions towards gender equality.

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OUTCOME 2 STATUS ON TRACK

Increased financing for green energy projects mobilized through project proposal development.

• GGGI has been involved in developing green energy projects which are currently under consideration for financing. A GCF Readiness Project was approved in March and is underway to carry out market assessments and feasibility studies. A project proposal on Solar Water Pumps for off-grid and rural communities in Vanuatu was submitted in September to the Luxembourg Government and is under consideration. GGGI also assisted the Department of Energy and Department of Tourism to implement a BMZ funded Solar Freezer Project for rural tourism bungalows in Vanuatu.

• GGGI’s work in helping to build the institutional capacity of the NGEF under Output 1.2 will assist the NGEF to direct finance towards green energy projected.

RESULTS ACHIEVED IN 2017

OUTPUT 2.1 STATUS ON TRACK

Green energy projects are designed and demonstrated to be financially feasible under the national energy access and sustainable energy objectives of Vanuatu. This output will focus on identification of green energy projects with demonstrated financial feasibility and build on an ideas pipeline started in 2016.

• A detailed project proposal on Solar Water Pumps for off-grid and rural communities in Vanuatu was submitted in September, 2017 to Luxembourg Government in Partnership with the Department of Energy and the Department of Water. The project aims to promote and scale-up the use of solar water pumping systems in rural areas of Vanuatu, thereby increasing the resilience of Ni-Vanuatu in rural areas through access to alternative sources of potable water. The project is based on gender assessments, gender responsive design and monitoring and evaluation. The proposal is currently under consideration.

• The solar refrigeration for Vanuatu Rural Tourism Operators project aimed to improve livelihoods and electricity access, reliability and affordability for small rural tourism operators in selected off-grid sites in Vanuatu through access to refrigeration powered by solar systems that enables diversification of services and improved income streams. 10 systems were installed and a skills development and training workshop was organized for the rural tourism operators. The project is based on gender assessments, gender responsive design and monitoring and evaluation. The relatively high participation of women was due to deliberate efforts by GGGI, e.g. by involving women in the planning and combining technical RE with food processing. During the workshop, GGGI also facilitated a gender-segregated session on participants’ perception of social and productivity benefits from new technology.

OUTPUT 3.1 STATUS DELAYED

Policy, institutional and incentives assessment for green energy projects in alignment to outputs 1.3 and 2.1 conducted and customized training for capacity building for green energy projects in Vanuatu delivered. Data collection and surveys with private sector with potential for Renewable Energy (RE) and Energy Efficiency (EE) projects were carried out and the information was collated and analyzed. GGGI organized 1 day private sector capacity building workshops in Espiritu Santo and Port Vila to introduce EE and RE applications in industrial and commercial facilities. GGGI aimed to establish engagement with various stakeholders, increase level of awareness, share the knowledge with private sector representatives and assess project pipeline options. The following results were achieved: i)Survey results report including companies with highest energy consumption and the assessment of potential project options, ii)Market reach report on the availability and pricing of energy efficient equipment and renewable energy systems and iii) a Workshop evaluation and quiz result report.

OUTCOME 3 STATUS ON TRACK

Increased knowledge and skills among government and local stakeholders to scale up green energy.

• A Green Infrastructure Project Development and Financing Regional Capacity Building Workshop was conducted in Suva, Fiji on 28th of June 27-28. Seven government officials from Vanuatu attended the workshop, from the Department of Energy, the Department of Geology Mines, and Water Resources, and the Department of Public Works. These are GGGI government counterparts who are involved in energy and infrastructure sector activities in Vanuatu.

• The 1-day private sector capacity building workshops in Espiritu Santo and Port Vila to introduce EE and RE applications in industrial and commercial facilities helped to increase the knowledge and skills of local stakeholders.

ADDITIONAL RESULTS

• The NGEF work in Vanuatu is considered SPRSI best practice, and the GGGI NFV guidelines are based on this experience. The gender assessments done for the solar freezers project are also an example of gender-sensitive project design and implementation.

• Vanuatu Energy Demand Projections, BAU Scenario Report launched with the Ministry of Finance, Prime Minister’s Office, KOICA and UNDP in attendance. Article in local newspaper and on GGGI and DoE websites.

• NGEF was included in the Vanuatu Climate Finance Roadmap by  he Climate Finance Working Group of the Ministry of Climate Change.

• Provided advice towards the Luganville electricity concession re-tender and commented on the re-tender documents.

• Assisted with the Talise Hydro project management by providing support to the project manager

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PARTNERS

LOCAL

• Ministry of Climate Change

• Department of Energy

• Department of Strategic Policy, Planning and Aid Coordination (DSPPAC)

• Department of Finance and Treasury

• Department of Tourism Development (DoTD)

• Department of Women’s Affairs

• Department of Local Authorities (DLA)

• Department of Geology Mines and Water Resources

• National Bank of Vanuatu

LESSONS LEARNED• It is important to have done a gender analysis of the NGEF

operations with all the Task Force members involved, as well as non-government actors. This resulted in more awareness of how to involve women at all levels and the Ministry of Women being added to the proposed NGEF management Board.

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VIET NAMENHANCED POLICY FOR INCREASED

GREEN FINANCE IN VIET NAM

CONTEXTViet Nam has decided to shift away from traditional models of growth towards a sustainable green growth development model targeting a low-carbon pathway by 2030. Hence the country has adopted the Viet Nam Green Growth Strategy (VGGS) and a corresponding Green Growth Action Plan. However, the cost of implementing the VGGS is estimated to be at least USD 30 billion.

Due to limitations in domestic financing and ceasing of ODA and concessional loans by 2017 because of Viet Nam’s MIC status means that the country will have to diversify its funding sources and explore innovative funding mechanisms. To this end, the VGGS calls for increased investment across all sectors including through public-private partnerships (PPP) and international sources, and specifically calls for a scaled-up financing of green growth. Mobilizing finance to support the implementation of VGGS and the Country Planning Framework (CPF) will necessitate technical support to develop and strengthen green growth financing policies and institutions.

OVERALL OBJECTIVE• Support Viet Nam access scaled-up green finance in public

and private investments leading to increased implementation of green growth activities.

OVERVIEW

Country / Global implementation

Viet NamLower Middle Income Country (LMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 353,708

% of budget disbursed 95%

HIGHLIGHTS• The Minister of Planning and Investment visited GGGI’s HQ

in Seoul and signed the second MOU with GGGI’s Director General, launching the next phase of strengthened collaboration between GGGI and Viet Nam in implementing green growth.

• GGGI supported the development of a mechanism for coordinating and mainstreaming green growth to national policy with the aim to enhance mobilization of finance for green investments. A series of 3 regional workshops and 3 business forums were co-organized with MPI and GIZ to review 5-year implementation of the VGGS.

• The final Investment Appraisal Handbook has been endorsed and adopted by MPI which enhances the appraisal framework for public investments to ensure green growth and other socio-economic indicators to be taken into account.

• GGGI conducted a review of international best practices on green criteria for businesses in agriculture, industry and waste sectors which provides key inputs to prepare the draft Green Criteria for SMEs manuals for SME Development Fund. Experiences from the public sector such as the Dutch Green Fund Scheme and from private sector such as Samsung, H&M and PUMA were analyzed and shared with SMEDF and the audience at the consultation workshop.

• GGGI supported an initial study on mainstreaming green growth into the PPP policy framework to further enhance private sector investments in green projects.

• MPI and GGGI co-hosted the consultation workshop on GGGI’s Green Growth Performance Measurement tool of which Viet Nam is one of 3 focused countries. Nearly 50 participants from line ministries and institutes participated the workshop and provided valuable inputs to finalize the tool that would be suitable for the country context.

RELEVANT SDGs7.3. Mobilize additional financial resources for developing countries from multiple sources.

17.9. Enhance international support for implementing effective and targeted capacity building in developing countries to support national plans to implement all the sustainable development goals including North-South, South-South, and triangular cooperation.

17.14. Enhance policy coherence for sustainable development.

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OUTCOME 1 STATUS ON TRACK

Ministry of Planning and Investment (MPI) adopts green growth measures in key public investment frameworks leading to new sources of green finance.

This outcome is on track and its achievement is subject to the completion of output 1.1. It targets one MPI decision issued to incorporate the Investment Guidelines for Green Growth (IGGG) into the investment appraisal process. The IGGG handbook for investment appraisal is being developed and will be delivered to MPI for approval and adoption into an investment appraisal process.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

IGGG are mainstreamed into key public investment appraisal processes.

GGGI has worked closely with the Department of Investment, Supervision and Appraisal (DISA) to develop the TOR to incorporate the IGGG appraisal process. The procurement of 3 experts in investment, appraisal and finance has been completed. GGGI has been guiding the consultants to develop quality reports that meets DISA’s requirements and enable the development of a green appraisal process. A consultant workshop was delivered in November 2017 to present the team’s study and gather comments from industry experts.

OUTCOME 2 STATUS ON TRACK

Institutional arrangements for the implementation of the VGGS are developed.

This outcome is on track subject to the completion of output 2.1. GGGI is working with MPI and GIZ to establish the mechanism for the implementation of the VGGS.

OUTPUT 2.1 STATUS ON TRACK

Establish coordination mechanism for green growth coherence at the national level is developed.

• GGGI has worked closely with MPI and GIZ to develop a coordination mechanism on the implementation of green growth activities. A series of workshops are being conducted in the North, the Central and the South where government officials, private sector, and development professionals met to discuss the implementation of the VGGS throughout the last five years. A high-level meeting will be conducted in the beginning of 2018 to discuss the coordination, progress and future of VGGS implementation. The partnership between GGGI, MPI and GIZ has strengthened the coordination and collaboration on green growth.

• GGGI has worked with several partner countries including Viet Nam, in which MPI is a focal point, to develop GGPM to measure and evaluate green growth performance in each country. In Viet Nam, the tool will make the coordination between various government agencies more effective and efficient thus enhancing the implementation of green growth.

• GGGI’s position as a leading organization on green growth in national and international policy dialogue was strengthened through media promotions and coverage.

OUTCOME 3 STATUS ON TRACK

SMEDF incorporated green growth criteria into SME loan scheme, increasing share of green business receiving funding.

This outcome targets one policy issued by SMEDF to update SME guarantee to reflect green growth decision-making criteria. As described in output 3.1, the green growth appraisal criterial has been submitted to SMEDF.

OUTPUT 3.1 STATUS ON TRACK

Policy analysis of greening Viet Nam’s SME lending scheme developed and submitted to government.

GGGI has conducted a study on international best practices in green credit and submitted to SME Development Fund to support the development of the Green Criteria Handbook to guide SMEs throughout the loan application process. SMEDF is one of the public funds dedicated to SMEs in Viet Nam (initial capitalization of around USD 88 million). By supporting SMEDF to green their lending portfolio, GGGI will make a major impact in the private sector and enable SMEs to be green and clean.

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LESSONS LEARNED• The development of a national coordination mechanism of

green growth activities and enhancing the mobilization of resources are well much better facilitated with a national platform such as the VGGS, than starting from a zero base. However, it is important to ensure on-going capacity building and knowledge sharing, especially at the local level.

ADDITIONAL RESULTS

• MPI, GGGI and GIZ co-organized a series of 3 regional workshops reviewing 5-year implementation of the VGGS with local governments and 3 regional forums with local businesses on the challenges and opportunities in green investments. Around 250 participants attended the regional workshops and business forums, providing valuable inputs to the review of implementing the VGGS and setting the priorities in the next 5 years.

• The draft Green Criteria Handbook was developed based on international best practices of both public sector as well as leading businesses. In particular, representatives from the successful Dutch Green Fund Scheme and PUMA presented on their green criteria and shared their experience at the consultation workshop for the draft Handbook.

• GGGI supported MPI to conduct a review of the current Public Private Partnership policy framework analyzing the challenges and opportunities in mainstreaming green growth in PPP. The study also proposes changes to the PPP policy framework to further enhance mobilization of private sector finance in green growth.

• GGGI’s Flagship publication “Korean Green Growth Experience” was translated and published in Vietnamese.

PARTNERS

LOCAL

• Department of Science, Education, Natural Resources and Environment (MPI)

• Department of Investment Supervision and Appraisal (MPI)

• SME Development Fund (MPI)

INTERNATIONAL

• German Agency for International Cooperation (GIZ)

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VIET NAMSCALING UP BIOMASS

WASTE‑TO‑ENERGY IN VIET NAM

CONTEXTViet Nam’s GHG inventory (2010) reveals a 602% increase since 1990, with emissions per unit of GDP surpassing all other Asia-Pacific developing countries except China. This is fueled by domestic coal consumption which has increased by 21% between 2013 and 2014 alone. Coal currently accounts for 36% of total electricity supply and is projected to increase to 56% by 2030. Over 98% of the population is connected to the grid and demand will increase by a further 10% a year until 2030 with renewable energy accounting for only 6% of total national energy production.

The Government of Viet Nam’s (GoV) Green Growth Action Plan (GGAP) developed with the support of GGGI seeks to develop new non-renewable energy sources with a focus on biomass energy development. The GoV has adopted a Renewable Energy Development Strategy and Revised National Power Development Master Plan 7 which respectively set biomass energy targets at around 6% and 2% of the national energy mix by 2030.

OVERALL OBJECTIVE• Increase the share of electricity produced by biomass waste-

to-energy through strategic policy advice to the government and the development of bankable projects.

• Increase in biomass to waste-to-energy in Viet Nam’s energy mix resulting in GHG emission reduction from BAU.

OVERVIEW

Country / Global implementation

Viet NamLower Middle Income Country (LMIC)

Thematic area Energy

Project start date Q1 2017

Funding source Core

2017 budget USD 359,670

% of budget disbursed 87%

HIGHLIGHTS• GGGI an MOIT signed the first MOU and project document to

launch our collaboration in supporting the development of clean energy in Viet Nam.

• GGGI co-organized a kick-off meeting with Soc Trang Province and MOIT in developing the Provincial Biomass Energy Planning.

• GGGI, in collaboration with GIZ, prepared feasibility studies for five short-listed sugar mills in support of the development of bankable biomass energy projects.

• GGGI and GIZ co-organized the Investor Forum to introduce these 5 biomass energy projects to local commercial banks and international financiers and a training workshop for local commercial banks on appraising biomass energy investments.

RELEVANT SDGs7.2. By 2030, increase substantially the share of renewable energy in the global energy mix.

17.9. By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

13.2. Integrate climate change measures into national policies, strategies and planning.

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OUTCOME 1 STATUS ON TRACK

Government accepts provincial biomass energy planning.

The overall outcome of the project is to support an increase in green energy production, and consequently a reduction in emissions, through the adoption of action plans that will be implemented and result in the financing of waste-to-energy projects. The project is on track as noted in the progress of output 1.1 below. A final draft of the Biomass Planning will be completed soon for Government’s consideration. Identifying climate finance for the initial projects is expected to motivate further sugar mills to implement the technology for biomass energy development.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

Provincial biomass energy planning developed.

In early 2017, GGGI signed the project document with Ministry of Industry and Trade (MOIT) completing the legal requirements to start rolling out activities for biomass energy planning. Following the approval of the project document, GGGI and MOIT selected Soc Trang Province to conduct the Provincial Biomass Energy Planning. As such, in August 2017 the provincial government of Soc Trang hosted the kick-off meeting with MOIT and GGGI where the methodology to develop the biomass energy planning was presented and a working group of government officials and consultants was set up to conduct the planning. By the end of 2017, the first draft of the Planning was developed and ready for consultation. Delivery of the final Planning is on track.

ADDITIONAL RESULTS

• In October 2017, GGGI and GIZ co-organized an Investor Forum to introduce five pre-FS for biomass energy projects among local commercial banks and international DFIs. Together with the Investor Forum, a training workshop for local commercial banks was also conducted to build capacity on appraising biomass energy investments in which 26 mid-level bank officers (including 15 female participants) from 8 local commercial banks attended. The local banks and some international DFIs show interest in biomass energy business. 

• In August 2017, GGGI, MOIT, and Soc Trang’s PPC co-organized a kicked-off workshop for the Provincial Biomass Energy Planning. At the workshop GGGI presented its activities in Viet Nam and the workplan for the biomass energy planning. The workshop has strengthened GGGI’s partnership with Soc Trang Province as well as with MOIT and paved the way for future collaboration in renewable energy.

• GGGI Vietnam contributed to the peer-review process of the IEA Flagship report “World Energy Outlook 2018 – Southeast Asia Special Analysis” which was launched in Singapore in October 2017.

OUTCOME 2 STATUS ON TRACK

Finance is mobilized for biomass waste-to-energy projects.

This outcome is on track subject to the completion of output 2.1. The identification and development of bankable biomass energy projects within the sugar sector will be accompanied by resource mobilization to fill in the investment ‘gap’. GGGI and the German Agency for International Cooperation (GIZ) are working together to support five selected sugar mills in developing pre-feasibility studies for biomass combined heat and energy plants (CHP).

OUTPUT 2.1 STATUS ON TRACK

Biomass waste-to-energy project submitted to potential financiers with a goal to sign financing agreement – FINANCING.

GGGI, in collaboration with GIZ, has prepared pre-feasibility studies of five short listed sugar mills.

Following the completion of these pre-FS, GGGI is in the process of selecting the most feasible project to work with and preparing investment documents to attract local and international investment under relevant mechanism. These activities will support a bankable biomass energy business model that can be rapidly scaled up throughout Viet Nam.

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PARTNERS

LOCAL

• Ministry of Industry and Trade (MOIT)

• Provincial Peoples’ Committee (PPC)

• Commercial Banks: BIDV, HDBank, Vietcombank, VIB, LienvietPost, SHB, An Binh Bank, VietinBank

• Sugar-mills: LASUCO, CASUCO, NASUCO, DakLak Sugar JSC.

• Vietnam Sugarcane and Sugar Association

INTERNATIONAL

• USAID

• German Agency for International Cooperation (GIZ)

• Dragon Capital

• InfraCo

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VIET NAMVIET NAM URBAN GREEN GROWTH

ACTION - PHASE II

CONTEXTViet Nam’s economic growth in recent decades has been accompanied by significant rural to urban migration, which has led to increased social and environmental challenges. Over the past decade, 700 square kilometers of land has been converted into urban areas and inhabited by 7.5 million new city residents. While Viet Nam’s cities represent potential engine for strong economic growth, the largest urban centers operate with poor urban design and lack adequate infrastructure. Cities also lack sufficient levels of green growth investment, due in part to insufficient climate change and green growth mainstreaming in policy and planning processes, and climate-relevant project orientation.

To address these challenges, Viet Nam had adopted the Viet Nam Green Growth Strategy (VGGS), which includes priorities to deploy technologies to adapt to climate change and reduce GHG emissions through green growth actions in infrastructure, employment, and natural capital. Many of the VGGS mitigation goals as reflected in the NDC will require increased low carbon infrastructure investment in the wastewater, energy and transport sectors.

OVERALL OBJECTIVE• Support cities in Viet Nam to decrease poverty, increase green

jobs, improve air quality, reduce GHG emissions and increase resilience to climate change through low-carbon planning and investments in urban infrastructure.

OVERVIEW

Country / Global implementation

Viet NamLower Middle Income Country (LMIC)

Thematic area Green City Development

Project start date Q1 2017

Funding source Core

2017 budget USD 477,938

% of budget disbursed 72%

HIGHLIGHTS• Development of the City-level NDC Assessment is a key policy

document for the Ministry of Construction to direct cities to align the policy and planning with Viet Nam’s NDC targets and commitment to the Paris Agreement.

• Completion of the OECD, GGGI, UN Habitat Viet Nam Urban Policy Review (to be launched in 2018), this provides key recommendations to MOC to deliver on urban green growth.

• Completion of the Ben Tre Waste Water Management Feasibility Study.

RELEVANT SDGs11.3. Enhancing inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.

11.6. By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

13.1. Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

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OUTCOME 1 STATUS ON TRACK

Green Master Plan aligned with NDC target is accepted by Government.

This outcome is on track following the completion of output 1.1.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

Green City Master Plan produced.

This output will mainstream green growth into the masterplan of a city, ensuring the cities lasting sustainable green development. The city will be selected for those prioritized by GGGI and MOC during the development of the Urban Green Growth Action Plan.

ADDITIONAL RESULTS

• Implementation of the Water Sector Policy Recommendations for the Mekong Delta, delivered under outputs for Viet Nam’s SDC funded work.

OUTCOME 2 STATUS ON TRACK

Urban green growth policy recommendations accepted by Government.

This outcome aims to incorporate GGGI’s policy recommendations into the National Urban Development Program (NUDP), 2021-2025 as well as develop wider key policies. This will mainstream the recommendations from the Urban Green Growth Action Plan, Urban Green Growth Indicators, Urban Policy Review (developed with OECD and UN Habitat) as well as city level NDC assessment.

OUTPUT 2.1 STATUS ACHIEVED

City level NDC assessment developed.

The City-level NDC Assessment is a key policy document for MOC to direct cities to contribute to the achievement of Viet Nam’s NDC. It was prudently developed and submitted to MOC in November 2017 which was accepted with recommendations incorporated into the Urban Green Growth Action Plan and submitted to the Office of the Prime Minister on the same month. This document when adopted will ensure the alignment of cities policy and planning with NDC targets and contribute to Viet Nam’s commitment to the Paris Agreement and green growth commitments.OUTPUT 2.1 STATUS ON TRACK

Green growth mainstreamed into the 2021-2025 NUDP.

The target for this output is 1 report with recommendations on NUDP green growth mainstreaming submitted to MOC. GGGI has worked closely with Organization for Economic Cooperation and Development (OECD) and MOC to deliver a chapter on green growth policy in the Viet Nam Urban Policy Review. The chapter shows GOV’s effort in promoting and implementing green growth in urban areas. The report has been submitted to MOC for internal review and finalization. The NDC assessment and OECD’s Urban Policy Review provide policy recommendations to promote green growth and low-carbon investment. These policy recommendations enable GoV to design attractive policy tools and measures to attract more private investment in green growth.

OUTCOME 3 STATUS ON TRACK

Green bankable projects accepted by Government.

The aim for this outcome is for 2 bankable projects to be accepted by Government. This outcome is aligned with output 3.1 which aims to develop 2 bankable projects in sustainable urban infrastructure for submission to the Government for approval in 2018.

OUTPUT 3.1 STATUS ON TRACK

Bankable project developed.

The Ben Tre Waste Water Management Feasibility Study work was completed on time in September 2017 and has incorporated comments from the Ben Tre Peoples’ Committee and Asian Development bank (ADB). The quality of the report was appreciated by ADB and the Ben Tre Peoples’ Committee as reflected in their letter of appreciation. GGGI is working on additional bankable projects to be delivered in 2018.

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PARTNERS

LOCAL

• Ministry of Construction (MOC)

• Provincial Peoples Committee (PPC)

• City People’s Committees (CPC)

• Departments of Planning and Investment

• Departments of Natural Resources and Environment

• Urban Climate Resilience Community of Practice

• GreenID

INTERNATIONAL

• Asian Development Bank (ADB)

• German Agency for International Cooperation (GIZ)

• SECO

• OECD

• World Bank

• UN Habitat

LESSONS LEARNED• MOC has requested training activities in 2017, however due to delays from the ministry these have been pushed to 2018, it is

important to engage the ministry early to discuss on proposed dates and ensure close working to ensure delivery.

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COLOMBIAPOLICY AND INVESTMENT

DEVELOPMENT TO ADVANCE COLOMBIA’S LONG-TERM GREEN

GROWTH OBJECTIVES

CONTEXTColombia is looking toward developing a Green Growth Long-Term Policy that will provide new sources of growth, innovation, job creation and income generation, and at the same time enables the country to meet its Sustainable Development Goals and its NDC targets, all to be attained by 2030.

To achieve these goals Colombia required increased capacity to mainstream green growth objectives into development planning and investments in priority sectors that are critical for the country´s future green growth, particularly in areas that are highly susceptible to increased natural resource degradation and forest cover loss.

OVERALL OBJECTIVES• Support Colombia with green growth target setting

in a mid‑term timeframe to be reflected in the next Development Plan.

• Strengthen Colombia to better align efforts and enable the adoption and implementation of sound policies and investments to ensure that reduced deforestation targets are met by addressing the targets and outcomes in the implementation and expansion of the interventions defined under the Joint Declaration of Intent (JDoI), the Amazon Vision, the Green Growth Taskforce and policy development and the peace process implementation through the High‑level Councilor for Peace Office.

OVERVIEW

Country / Global implementation

Colombia Upper Middle Income Country (UMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source CoreEarmarked: Norway

2017 budget USD 1,202,422

% of budget disbursed 86%

HIGHLIGHTS• Lead a Colombian nationwide REDD+ payment for performance

mechanism with a total of USD 15 million in funding to the Government of Colombia.

RELEVANT SDGs12.2. By 2030, achieve the sustainable management and efficient use of natural resources.

13.2. Integrate climate change measures into national policies, strategies and planning.

15.2. By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.

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RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ON TRACK

Long-term green growth policy framework adopted.

This outcome is on track with its intended timeline for completion in 2019.

OUTPUT 1.2 STATUS ON TRACK

Subnational level green growth investment proposals and performance assessment tools delivered to policy-makers and Government entities.

This output is on track with its intended timeline for completion in 2019.

OUTPUT 1.1 STATUS ON TRACK

Long-term green growth policy submitted to CONPES (Economic and Social Policy Council) for approval.

This output is on track with its intended timeline for completion in 2018.

OUTCOME 2 STATUS ON TRACK

International climate finance from partner governments under strategic land-use/REDD+ schemes (Amazon Vision and DoI with strategic partners) secured for implementation.

This outcome is on track with its intended timeline for completion in 2019.

OUTPUT 2.1 STATUS ACHIEVED

Proposals for attaining selected Policy design and implementation (Modality 1) milestones identified during 2016, under Colombia’s Joint Declaration of Intent with international Government partners for reducing GHG through REDD+ and the promotion of sustainable development (DoI) submitted.

• GGGI team coordinated and executed two key documents: i) the drafting and presentation of the Annual Results Report that provides a detailed description of the status of progress of each of the 63 milestones defined under the Modality 1, against which a total of USD 15 million were paid to the Government, and ii) the Annual Operations Plan, that defines the investment lines for the implementation of those resources.

• Both documents have been prepared following the templates and guidance of the Sustainable Colombia Fund of the IDB, through which the payments of the DoI will be made. Supporting letters with the funding commitment have been provided.

OUTPUT 2.2 STATUS ON TRACK

Investment-ready project/investment proposals submitted to Sustainable Colombia Initiative strategic programs.

This output is on track with its intended timeline for completion in 2019.

OUTPUT 2.3 STATUS ON TRACK

Investment-ready project/program proposals submitted for Amazon Vision implementation in new departments, taking into account social inclusion and gender aspects.

This output is on track with its intended timeline for completion in 2019.

OUTPUT 2.4 STATUS ON TRACK

Articulation instruments for green growth and post-conflict objectives delivered to support the Peace Agreements implementation.

This output is on track with its intended timeline for completion in 2019.

OUTPUT 2.5 STATUS ON TRACK

Effective land-use/sustainable agriculture production policy recommendation developed to ensure deforestation reduction.

This output is on track with its intended timeline for completion in 2018.

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PARTNERS

LOCAL

• Ministry of Environment and Sustainable Development

• National Planning Department

• Ministry of Agriculture and Rural Development

• Ministry of Finance and Public Credit

• Institute of Hydrology, Meteorology and Environmental Studies – IDEAM

• Colombian Presidential Agency of International Cooperation

• High‑level Counselor for the post‑conflict office

• Sustainable Colombia Fund

• Colombia Peace Fund

• Colombia´s Competitiveness Council

• University of Los Andres

• Fondo Acción

• Sustainable Cattle Ranching Roundtables

INTERNATIONAL

• Interamerican Development Bank

• World Bank

• The French Development Agency (AFD),

• KfW

• The Nature Conservancy

• World Wildlife Fund

• Tropical Forest Alliance ‑TFA

LESSONS LEARNED• A sub-national level intervention is needed to foster green

growth deployment in the entire country

ADDITIONAL RESULTS

• GGGI organized 2 academic events sponsored by the Green Growth Taskforce with participation of over 100 people each to promote research and dissemination of cutting‑edge research that could provide inputs and ideas to the technical analysis. Results under this Green Growth Policy workstream will be delivered in 2018.

• GGGI has been working with the Fund for the Financing of the Agricultural Sector ‑ FINAGRO and the Earth Innovation Institute ‑EII in the design of agro‑environmental financial instruments, which has resulted in the design of the Instrument for the Sustainable Productive Transformation‑ITPS, an instrument for the sustainable productive transformation of the livestock sector in the country. This will be put to the test in 2018 through two pilots in the Colombian Amazon with 200 producers.

• As part of the accompaniment of GGGI to the Vision Amazon Program, in the Indigenous Pillar, the GGGI Program has been actively supporting the participatory definition of the strategic and action lines of the pillar, the definition and preparation of the guide for the structuring of projects by of indigenous organizations and the structuring of a regional strategic project with the Organization of Indigenous Amazonian Groups ‑ OPIAC, which has been selected for funding in the first call of the PIVA entitled “Strengthening Governance and Capacities for Environmental Governance of Peoples Indigenous people of the Colombian Amazon”.

• GGGI supported the Second Annual Seminar on Forest Cover Monitoring (November 28‑30th 2017), this event was intended to foster knowledge and experience sharing that will bring together top national and international experts to discuss and devise ways in which national monitoring schemes can be strengthened and better contribute to decision‑making processes, considering Colombia’s commitments on climate change, sustainable development, reducing deforestation and restoring ecosystems. More than 180 representatives from authorities, research institutes, universities, NGOs, private sector, local communities, experts and other academic and institutional stakeholders interested in monitoring forests participated.

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COSTA RICACAPITAL ENHANCEMENT FOR

ECOSYSTEM SERVICES THROUGH THE ENVIRONMENTAL BANK

FOUNDATION (FUNBAM)

CONTEXTCosta Rica recognizes agriculture as a key source of emissions, but the question is on how to increase necessary capital for the associated AFOLU (agriculture, forestry, and other land uses) sector to implement NDC strategies and achieve targets, given the fiscal deficit of the government. In this context, the Government intends to transform FUNBAM into a specialized financing entity for ecosystem management and has requested GGGI to utilize its skills in designing, restructuring and scaling up the vehicle. The overall problems that the project is seeking to address are as follows:

• Lack of capital for the government to achieve the targets in their NDCs.

• Lagged local market for sustainably produced agriculture/forestry products (e.g. timber) distorted by scattered and skewed information without a central governing body and the system.

• Reluctance to change current land-use practices due to financial instability during the conversion period caused by upfront capital, lack of knowledge/technical assistance; and limited access to markets with price premiums.

OVERALL OBJECTIVES• Support FUNBAM increase capital to USD 5 million by 2018,

and USD 10 million by 2021.

• Contribute to Costa Rica NDC’s mitigation and adaptation targets by channeling capital towards agroforestry projects, forest conservation activities, ecosystem-based adaptation, and other relevant activities.

• Contribute to the empowerment of farmers and entrepreneurs operating in green growth sectors in Costa Rica by providing sustainable livelihoods and a better standard of living.

OVERVIEW

Country / Global implementation

Costa Rica Upper Middle Income Country (UMIC)

Thematic area Land-Use

Project start date Q1 2017

Funding source Core

2017 budget USD 179,823

% of budget disbursed 58%

HIGHLIGHTS• GGGI supported the Government of Costa Rica in strengthening

the country’s Environmental Bank Foundation (FUNBAM) as a specialized financing vehicle for sustainable development by refreshing its strategic plan (e.g. revised objectives) and structuring projects to attract domestic and international funds.

• GGGI developed a resource mobilization analysis and selected two priority pipeline projects (out of six projects identified) with FUNBAM. Designing of these two projects will be finalized by end of 2018.

RELEVANT SDGs13. Take urgent action to combat climate change and its impacts.

15. Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss.

17. Revitalize the global partnership for sustainable development.

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RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ON TRACK

Enhanced capital mobilized by Costa Rica’s Environmental Bank Foundation (FUNBAM).

GGGI has contributed substantially to the identification and development of FUNBAM’s two pipeline projects; the Forest Plantation Usage Program (PPAF) and the Sustainable Timber Management Program (SUTIM); provided an analysis that includes a strategic approach to mobilize financial resources and helped to reach out to potential investors for the FUNBAM’s projects.

OUTPUT 1.1 STATUS ACHIEVED

A set of FUNBAM strategic documents developed and submitted to FUNBAM.

GGGI provided a Concept Note for FUNBAM, which provides an analysis of current capacity, performance record, legal structure and suggests measures to help transform FUNBAM into an independent financing entity. The Concept Note was approved by the Board in April. GGGI also helped to produce promotional products for FUNBAM as well as an investment plan to assist in mobilizing resources for PPAF and SUTIM.

OUTPUT 1.2 STATUS ACHIEVED

A resource mobilization analysis developed.

GGGI developed a resource mobilization for FUNBAM focusing on its priority project PPAF. The analysis provides a financial projection of the pipeline project ahead; details a strategic approach to mobilize financial resources; and identifies possible funds and investors who could provide seed capital to FUNBAM and its projects.

OUTPUT 1.3 STATUS ON TRACK

1 new project identified and structured by FUNBAM.

GGGI has identified and developed two priority pipeline projects with FUNBAM, namely PPAF and SUTIM. For PPAF, the initial assessment has been completed and the results submitted to the Government of Costa Rica for further project structuring and investor relations. For SUTIM, GGGI is producing a feasibility study which is expected to be completed by Q2 2018.

ADDITIONAL RESULTS

• GGGI reached out to potential investors including the Central American Bank for Economic Integration and the Korea Forest Service and facilitated relationships between the Ministry of Environment and Energy of Costa Rica helping to mobilize resources. GGGI also helped share knowledge about and produced by FUNBAM and Costa Rica. GGGI published a blog on the work around FUNBAM; held a GGGW session on FUNBAM; and held an internal session on FUNBAM at the Communities of Practice meeting.

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PARTNERS

LOCAL

• National Forestry Financing Fund (FONAFIFO)

• Ministry of Environment and Energy (MINAE)

• National System of Conservation Areas (SINAC)

• Ministry of Agriculture and Livestock (MAG)

• Costa Rica’s National Bank (Banco Nacional)

• Osa Conservation

• CRUSA Foundation

• FUNDECOR (Foundation for the Development of the Central Volcanic Range)

INTERNATIONAL

• Conservation International (CI)

• Central American Bank for Economic Integration (CABEI)

• Korea Forestry Services (KFS)

LESSONS LEARNED• Maintaining regular and close dialogue with government counter party facilitated the approval of GGGI’s recommendation for

FUNBAM enabling the project to progress as initially planned.

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MEXICOIMPROVING PUBLIC

TRANSPORTATION SYSTEMS IN MEXICO

CONTEXTMexico, an upper middle-income country, is the second largest economy in Latin America. However, as Mexico’s economy continues to the grow the country faces increasing environmental and climate change related challenges. Rising car ownership and air pollution are reducing major urban areas to poisonous gridlock. The near-constant gridlock costs the local and national economy an estimated staggering 2.5 billion USD annually, while air pollution has long been one of the most pressing issues for Mexico’s cities and its inhabitants. For Mexico to continue growing in a sustainable way, the country will need to address:

• GHG emissions resulting from the transport sector.

• Air quality in its urban areas.

• Urban mobility, particularly as it relates to public transportation.

OVERALL OBJECTIVES• Improve Mexico’s overall public transportation through better

access and quality of service and access.

• Support the reduction of GHG emissions and local pollutants, in line with Mexico´s NDCs.

OVERVIEW

Country / Global implementation

Mexico Upper Middle Income Country (UMIC)

Thematic area Green City Development

Project start date Q1 2017

Funding source Core

2017 budget USD 282,202

% of budget disbursed 77%

HIGHLIGHTS• Development of economic models to support local government

decision-making on sustainable transport.

• Engagement of potential funding partners to enhance local government access to finance.

RELEVANT SDGs11.2. By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons.

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RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ON TRACK

Recommendations to improve local transport are adopted by local government.

GGGI has initiated work and is partnering with strategic stakeholders to develop and adopt recommendations that will improve transportation systems at the local level. GGGI’s strategic approach moving forward engages potential funding partners that can contribute resources to implement sustainable transport.

OUTPUT 1.1 STATUS DELAYED

Recommendations to improve the public transportation system are delivered to one local government.

• GGGI developed an economic and financial model to help the State of Morelos make key transportation decisions making.

• GGGI organized workshops and worked closely together with the State transport authorities to calibrate the model to capture local operating conditions and costs, and to discuss the analyses produced by the model.

• Analysis and technical support provided by GGGI led to the State of Morelos make fact-based bus technology and infrastructure acquisition decisions.

• There has been a delay due to government’s decision to postpone implementation out the necessity to divert public resources to support reconstruction of damage caused during the earthquake in 2017.

OUTPUT 1.2 STATUS ON TRACK

Deliver recommendations to improve access to finance for the improvement of the public transport system in one local government.

• To identify and explore the use of different financial sources to fund transport initiatives, GGGI scoped and met with potential sources of funding including NADBANK, CFF (C40 GIZ), the World Bank.

ADDITIONAL RESULTS

• GGGI’s developed two addition analytical tools for the Mexico transport toolkit, which put GGGI in a better strategic position to deliver technical advice to government partners.

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PARTNERS

LOCAL

• Ministry of the Environment (SEMARNAT)

• State of Morelos

• State of Sonora

• Mexico City

INTERNATIONAL

• North American Development Bank

• GIZ

• C40

• WRI

LESSONS LEARNED• Given political considerations and the long lead time

governments encounter, GGGI identified the need to develop a strategy securing funding partnerships/mechanisms, and leverage locations and partnership where the organization is already established.

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MEXICOSTATE OF SONORA -

SUB NATIONAL GREEN GROWTH PLANNING AND IMPLEMENTATION

CONTEXTMexico, an upper middle-income country, is the second largest economy in Latin America. However, Mexico’s already strained natural resources face increased environmental and climate change related pressure as its economy continues to grow. Mexico is the 13th largest Greenhouse Gas (GHG) emitter in the world and the costs of its environmental degradation were estimated at approximately 4.6% of GDP in 2016.

The State of Sonora, in particular, has one of the highest per capita energy usage and GHG emissions in the country. The state´s natural and human capital makes it well-poised to significantly contribute to the attainment of the country’s NDC and SDG targets while delivering inclusive economic growth. For this to happen, the state must act swiftly to mainstream green growth planning to its policy and finance decision making. Notedly, the opening of the nation’s energy market represents a unique opportunity for the state to decarbonize its economy and develop local capabilities in the energy sector by scaling-up energy efficiency practices, fostering the investment renewable energy infrastructure and investing in inclusive education, research and employment.

OVERALL OBJECTIVE• Development of the Sonora State Green Growth Strategy and

transitioning toward a pathway of green growth.

OVERVIEW

Country / Global implementation

MexicoUpper Middle Income Country (UMIC)

Thematic area Multi-sectoral

Project start date Q2 2016

Funding source Core

2017 budget USD 214,583

% of budget disbursed 79%

HIGHLIGHTS• Completion of scoping reports identifying areas of opportunities

in the Sonora State priority areas of urban development; renewable energy; energy efficiency; water management; natural resources; solid waste and public transport.

• Announcement by Sonora’s Governor of the Green Growth Strategy development.

• Creation of a Green Growth Cabinet to guide the implementation of the strategy.

RELEVANT SDGs7.2. By 2030, increase substantially the share of renewable energy in the global energy mix

8.2. Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labor-intensive sectors

11.2. By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons.

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OUTPUT 1.1 STATUS ACHIEVED

Scoping report identifying areas of opportunities and defining a workplan for the preparation of the StateGreen Growth Strategy

• In collaboration with the State government, GGGI analyzed sectoral documents, including National and State Development Plans, and GHG Inventories, among others), and engaged government officials through interviews to complete initial analysis.

• GGGI produced scoping reports with technical inputs in 7 key priority areas of the State of Sonora: urban development; renewable energy; energy efficiency; water management; natural resources; solid waste and public transport.

• GGGI and CEDES formed a steering committee to further develop the key priority areas and guide the development of the State Green Growth Strategy.

RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ON TRACK

The State of Sonora prepares with the support of GGGI a State Green Growth Strategy defining a pathwaytoward green growth

GGGI and its government partners made considerable strides toward the State’s development of a GreenGrowth Strategy to guide the transition to inclusive, environmentally sustainable, economic growth:

• During the State Governor’s event to announce the preparation of a Green Growth Strategy, an MOU between the State of Sonora and GGGI was signed. This event helped galvanize support for the development and implementation of the strategy and helped to attract key partners to help in the implementation of the Strategy.

• The State Governor also launched a Green Growth Cabinet consisting of the Governor, the Chief of the Executive´s Office, the Chief of Commission for Ecology and Sustainable Development (CEDES), and the State’s Ministers of Economy, Social Development, Agriculture and Infrastructure. This Cabinet will help coordinate government efforts in the Strategy’s implementation, and will be supported by a yet to be created Advisory Board which will have representation of academics, NGOs and civil society.

OUTPUT 1.2 STATUS ON TRACK

Technical inputs for the preparation of the State Green Growth Strategy

• Leveraging the scoping reports and the steering committee, GGGI proposed lines of action to be the main guiding forces in the implementation of the Strategy.

• GGGI evaluated the lines of action to estimate their green growth potential and actability of implementation through a workshop for the steering committee. This workshop and the joint analyses led to significant understanding of green growth and its economic, environmental and social impacts, and the refinement of identified priority areas.

• Through the diagnosis, analyses, interviews and workshop, GGGI has prepared a complete draft of the Strategy containing a Diagnosis, Strategy (which includes the Vision, Objectives, Themes and Lines of Action), Governance and Implementation sections. The draft was approved by the steering committee.

OUTPUT 1.3 STATUS ON TRACK

Support for the implementation of recommendations resulting from the Strategy

• With a draft Green Growth Strategy complete, GGGI reached out to key stakeholders to present the findings of the strategy, the proposed green growth implementation plans, and to develop buy-in and support for further development and implementation of the Strategy.

• This socialization and matchmaking efforts led to GGGI engaging various organizations, such as WRI, The Carbon Trust, Tetratech, MexiCO2, the Danish Energy Agency), and the signing of an MOU between Sonora and WRI.

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PARTNERS

LOCAL

• Ministry of the Environment (SEMARNAT)

• State of Sonora, Ecology and Sustainable Development Commission (CEDES)

• National Commission of the Efficient Use of Energy (CONUEE)

• Promexico

• University of Sonora

• MEXICO2

INTERNATIONAL

• North American Development Bank

• WRI

• Carbon Trust

• FCO

• USAID

• Danish Energy Agency

• Tetratech

LESSONS LEARNED• Inclusive approach: The development of and work toward Strategy implementation of the strategy has been strengthened by

adopting a transparent and open approach with partner organizations, who have appreciated the matchmaking and facilitating role that GGGI has played and the boldness and willingness of the state to implement green growth. Thus, an important lesson learned has been that being vocal advocates, taking risks and getting support from the experts is key to galvanize significant support.

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PERUIMPLEMENTATION PHASE

OF PERU´S NATIONAL ECO‑EFFICIENCY STRATEGY

CONTEXTPeru’s economic growth over the past decade has put the country on a solid path to OECD membership. The institutional and economic reforms it has undertaken lead to the improved competitiveness of its economy. In this way, Peru seeks to improve its standing on the World Bank Doing Business Index as a sign of aggregate improvement from internal multisectoral reforms. To this end Peru developed the Competitiveness Agenda 2014-2018, which sets national goals to accelerate the implementation of reforms. One of these goals concerns improved management of natural resources and the need to implement eco-efficient practices in public institutions. To achieve these objective, Peru will need to:

• Improve the current EcoIP program, which seeks to train 16 priority public institutions in efficient resource management.

• Simplify and institutionalize the reporting process to the Ministry of Environment so that 30% of public institutions at the national and subnational levels report their use of natural resources.

OVERALL OBJECTIVE• Support Peru implement the National Eco-efficiency Strategy.

• Assist public sector improve its eco-efficient performance in relation to the sustainable use of the natural resources.

OVERVIEW

Country / Global implementation

Peru Upper Middle Income Country (UMIC)

Thematic area Multi-sectoral

Project start date Q3 2016

Funding source Core

2017 budget USD 231,990

% of budget disbursed 83%

HIGHLIGHTS• Supported the Ministry of Environment to develop a proposal

for the national-level ecoefficiency program for 16 priority public institutions. This program assists institutions to improve their performance in natural resource management (electricity, water, fuel, solid waste and office supplies).

RELEVANT SDGs12.2. By 2030, achieve the sustainable management and efficient use of natural resources.

12.7. Promote public procurement practices that are sustainable, in accordance with national policies and priorities.

13.2. Integrate climate change measures into national policies, strategies and planning.

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OUTPUT 1.1 STATUS ACHIEVED

National-Level Ecoefficiency Management Implementation Proposal Endorsed by Government of Peru.

• GGGI developed a national-level ecoefficiency management implementation proposal and systematized national-level pilot experience in 16 public institutions inputs to the national-level EcoIP expansion proposal, establishing indicators that quantify the impact on reducing environmental and economic costs.

• GGGI conducted a mapping of current ecoefficiency practices in prioritized ministries and developed regional pilot proposal for rollout in 2018.

• GGGI supported the compilation and analysis of lessons learned through interviews with priority institutions and held a workshop to disseminate findings and solicit input from each of the ecoefficiency coordinators representing the 16 public institutions.

RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ON TRACK

Peruvian government has increased number of public institutions accurately reporting ecoefficiency performance and effectively employing eco-efficient and energy efficient practices.

As a result of GGGI support, the Ministry of Environment currently quantifies and systematizes the number of public institutions implementing effective ecoefficiency practices through mechanisms that encourage them to report their performance. Reporting takes place via a software platform.

OUTPUT 1.2 STATUS ON TRACK

Proposal endorsed by Government of Peru for regional scaling up of decentralized ecoefficiency management to regional entities.

GGGI is initiating work on this output in Q1 2018

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PARTNERS

LOCAL

• Ministry of Economy and Finance, Competitiveness and Formalization Council

• Ministry of Environment

LESSONS LEARNED• GGGI’s work to support the ecoefficiency initiative was

addressed both from the perspective of MINAM as the program steward and the public institutions who are participants. This yielded valuable lessons to improve the program in the following areas:

• Assessment and recommendations for internal organization of the MINAM team.

• Increasing the involvement of high-level executives of each institution involved.

• Establishing clearly defined roles within the MINAM team as well as ecoefficiency teams in each participating public institution.

• MINAM has included these inputs for the EcoIP 2018 initiative at national level and for the pilot project at regional level.

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PERUNATIONAL GREEN GROWTH STRATEGY

CONTEXTIn Peru, there is political recognition of the importance of the country’s forest and water resources, and the need to improve management of both if economic growth to be sustainable. As part of Peru’s OECD accession process, it has received a number of recommendations for improved institutionality, sustainable resource management as well as the importance of realizing concrete economic opportunities from natural capital. In response to these recommendations, among other measures, Peru has developed the National Green Growth Strategy (NGGS), which is a cornerstone for addressing Peru’s NDCs and Sustainable Development Goals (SDGs). Within the NGGS framework, among other elements, Peru will develop actions that address forest and water resource challenges, including:

• Deforestation that contributes to over half of the country’s Greenhouse Gas (GHG) emissions.

• Productive management of ecosystem services provided by forests.

• Prioritizing activities such as the sustainable timber production and initiatives that develop non-timber forest products, bio prospection, and eco-tourism opportunities.

• Expansion of basic water and sanitation services.

• Need to manage water resources with an integrated planning approach.

OVERALL OBJECTIVE• Support Peru to implement multi-sectoral green growth policies

and actions through the National Green Growth Strategy.

OVERVIEW

Country / Global implementation

PeruUpper Middle Income Country (UMIC)

Thematic area Multi-sectoral

Project start date Q1 2016

Funding source Core

2017 budget USD 485,540

% of budget disbursed 83%

HIGHLIGHTS• Supported the ministries of Economy and Finance and

Environment to develop the National Green Growth Strategy document and priority action areas.

• Provided key inputs for the development of the National Forest and Wildlife Plan, which is the overarching forest management plan for Peru. Sustainable forest management is a key area for Peru since over half of its GHG emissions come from deforestation.

RELEVANT SDGs12.2 By 2030, achieve the sustainable management and efficient use of natural resources

13.2 Integrate climate change measures into national policies, strategies and planning

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OUTPUT 1.1 STATUS ACHIEVED

National Green Growth Strategy Action Plan in Land Use/Land Change.

• GGGI worked closely with Peru’s Forest and Wildlife Service (SERFOR) to incorporate aspects of its forest economy analyses into the National Forest and Wildlife Plan (NFWP).

• In support of the NFWP, GGGI developed the conceptual model of the forest sector, prepared strategic vision for the forest sector 2030, identified key variables for forest sector performance as well as priority actions for the NFWP and possible financing sources.

RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ON TRACK

Peruvian government endorses National Green Growth Strategy Action Plan for Land Use/Land Change.

While continuing to support the implantation of the National Green Growth Strategy (NGGS) Implementation Plan, GGGI supported the development of the National Forest and Wildlife Plan (NFWP), which is a priority document for forest investment in the implementation of the NGGS.

OUTCOME 2 STATUS ON TRACK

Peruvian government endorses National Green Growth Strategy Action Plan for Water Stress and Management.

GGGI developed a relationship with the National Superintendence for Sanitation Services (SUNASS), the steward charged with regulating the newly developed conservation tariff that will be used to finance over USD 10 million in green infrastructure projects in the Rimac, Chillón and Lurín river valleys. GGGI will support the development and financing of these projects within the framework of the National Green Growth Strategy Action Plan for Water Stress and Management.

OUTPUT 2.2 STATUS DROPPED

Water Pricing Analysis for Water Sector Action Plan under the National Green Growth Strategy.

Decision was made by Peru’s National Water Authority to discontinue work on this output as it was agreed with GGGI that it was not relevant to the current scope of work.

OUTPUT 2.1 STATUS ON TRACK

National Green Growth Strategy Action Plan in Water Stress and Management.

GGGI is initiating work on this output in Q1 2018.

ADDITIONAL RESULTS

• GGGI successfully completed the NGGS Implementation Plan by engaging 12 sectors to prioritize green growth initiatives across the Peruvian government, and developing possible financing options. GGGI also supported the government with two workshops to validate the priority measures within the 12 sectors.

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PARTNERS

LOCAL

• Ministry of Economy and Finance

• Ministry of Environment

• National Superintendence for Sanitation Services (SUNASS)

• National Forest and Wildlife Service (SERFOR)

LESSONS LEARNED• Peru’s accession process to the OECD has played prime

importance in the prioritization of the National Green Growth Strategy, as well as the leadership from the Ministry of Economy and Finance.

• Multi-sectorial coordination is key to understanding the current initiatives of the government as well as to achieve buy-in from key sectors.

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JORDANIMPLEMENTATION SUPPORT FOR THE NATIONAL GREEN GROWTH

PLAN OF JORDAN

CONTEXTA number of key trends exist in Jordan that pose challenges to the country’s sustainable development, including severe water shortages and water systems degradation, limited conventional energy resources and security, waste management, as well as complex human migration in and around the country. Nevertheless, Jordan has high ambitions and potential for economic growth.

To deliver on this potential, while at the same time addressing sustainability challenges, Jordan developed the National Green Growth Plan (NGGP) in 2016 with GGGI support. The NGGP provides a comprehensive development approach to green growth planning and implementation, supported by the quantitative analysis of 24 projects across six green growth sectors, namely energy, water, waste, transport, tourism and agriculture. However, to successfully implement the NGGP, the following barriers need to be overcome:

• Lack of financing resources

• Lack of technical capabilities

OVERALL OBJECTIVES• Enhance the ability of the Jordan Environment Fund to mobilize

finance for green growth investments.

• Develop bankable projects for approval and financing.

• Build human resource capacity to develop bankable projects and meet GCF accreditation requirements.

OVERVIEW

Country / Global implementation

Jordan Upper Middle Income Country (UMIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 735,804

% of budget disbursed 92%

HIGHLIGHTS• Adoption of the National Green Growth Plan by the

Jordanian Cabinet.

• Defining a niche for GGGI on the electric mobility, prefeasibility studies for two projects.

• Greening Amman BRT and EV Infra Pre-Feasibilities.

RELEVANT SDGs6.4. By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity.

7. Ensure access to affordable, reliable, sustainable and modern energy for all.

11. Make cities and human settlements inclusive, safe, resilient and sustainable.

13.2. Integrate climate change measures into national policies, strategies and planning.

13.a. Implement the commitment undertaken by developed-country parties to the United Framework Convention on Climate Change to a goal of mobilizing jointly USD 100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Fund through its capitalization as soon as possible.

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OUTCOME 2 STATUS ON TRACK

Government approves bankable projects for further development and financing.

In 2017, GGGI made steady progress toward developing bankable project approved by government and ready for financing. GGGI completed scoping work, technical assessments and stakeholder consultations in order to develop 2 project concepts to further develop and finance. A letter of support for the two projects was issued by the Mayor of Amman City and by the Ministry of Environment. GGGI also took strong steps to design a water project for possible financing.

RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS DELAYED

Investments and financing for green growth in Jordan is enhanced through the support of the Jordan Environment Fund (JEF).

In 2016, GGGI conducted preliminary work to identify how best to support and mobilize finance through the Jordan Environment Fund. Through this initial work and analysis, it was identified that the envisioned approach to develop JEF into a national financing vehicle could potentially limit future opportunities to access climate finance for particular international funds (i.e. the GCF). As a result, the decision was made to pause, and explore other mechanism by which GGGI could support investment and financing for green growth in Jordan.

OUTPUT 1.1 STATUS DROPPED

Provide technical assistance to strengthen the implementation of the Jordan Environment Fund (JEF).

• Building on a 2016 GGGI report on the design of a Jordanian national financing vehicle (NFV), the Jordan Environmental Fund engaged GGGI in early 2017 to prepare a concept note with recommendations to enhance the fund’s technical capacity and scale-up JEF into a full-fledged NFV.

• Development of the concept note identified a potential conflict of interest between JEF and the Green Climate Fund’s (GCF) National Designated Authority in Jordan.

• Jordan’s Ministry of Environment indicated that implementing GGGI’s recommendations, and addressing potential conflict of interest issues would require significant revision of the JEF bylaws. The mutual decision was made by GGGI and the Ministry to halt GGGI’s technical assistance for the time being.

OUTPUT 2.1 STATUS ON TRACK

Prepare feasibility study and financial arrangements for 2 bankable projects in water, green energy or green transport and submit to government.

• GGGI evaluated green growth opportunities within the 6 priority sectors of the NGGP: energy, agriculture, transport, water, tourism and waste. The evaluation assessed existing sources of finance and the identified a pipeline of 36 projects ideas, with 18 being pre-selected and developed as concept notes.

• GGGI implemented a process of further analysis and stakeholder consultation to obtain government support for 2 bankable projects in the transport sector.

• The Greening the Bus Rapid Transit (BRT) System project aims to change the baseline choice for bus type in the upcoming Amman BRT tender’s technical specifications, from using diesel powered vehicles to either hybrid or fully electric powered buses, and to facilitate associated financing.

• The Electric Vehicles (EV) Public Charging Infrastructure Development project will support development of EV public charging infrastructure across Jordan by designing a national strategy, including the design of a business model to crowd in private sector investment.

OUTPUT 2.2 STATUS ON TRACK

Best practices for one water sector project, potentially on water desalination project, will be produced in alignment with the output b “develop two bankable projects”.

• In support of the government’s request to develop a Zarqa River Basin Master Plan, GGGI has completed scoping missions and under the consultation with relevant ministries and stakeholders, it has developed a concept note, ready for financing.

• GGGI has approached different potential financiers for Master Plan development and implementation, including the GCF and EIB Economic Resilience Initiative.

OUTCOME 3 STATUS ON TRACK

Increased capacity among public sector stakeholders to develop bankable projects and among potential implementing entities on GCF accreditation requirements.

Originally inked to support the enhancement technical capacity within the Jordan Environment Fund, this work was paused while GGGI explored other opportunities to support Jordan mobilize finance and investments for green growth projects.

OUTPUT 3.1 STATUS ON TRACK

A capacity building program is implemented targeting capacity gaps at key public sector stakeholders to improve the enabling environment for green growth and implement green projects.

The program concept was readjusted to move forward in 2018 with capacity building that is aligned to NGGP action planning, as well as to the GCF readiness program.

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PARTNERS

LOCAL

• Ministry of Environment

• Ministry of Energy and Mineral Resources

• Ministry of Planning and International Cooperation

• Ministry of Public Works and Housing

• Ministry of Water and Irrigation

• Ministry of Agriculture

• Ministry of Transport

• Greater Amman Municipality

• Ministry of Finance

LESSONS LEARNED• GGGI learned a number of valuable lessons during the course of preparing 2 bankable projects for further development.

In particular, GGGI should make sure to consult the wider scope of institutional stakeholders and financiers before making decision; the solar sector in Jordan is maturing fast and GGGI’s support may no longer be needed anymore; and there is likely little role for GGGI in energy efficiency in water sector in Jordan as it is already crowded with donors.

• GGGI work to support the Jordan Environment Fund provided lessons for selecting existing entities as potential national financing vehicles. In particular, GGGI should ensure in advance that a potential entity can access the main source of climate finance globally (GCF) free of conflict of interest. GGGI should also thoroughly review bylaws establishing the entity and spot any potential restrictions that would prevent scaling up staff-wise but also in terms of access of development partners to the steering committee.

ADDITIONAL RESULTS

• Completion of the options assessment and validation workshop for the Jordan Country Planning Framework. This will cover sectors key to the implementation of the “Smart Urban Cluster” of the Jordan NGGP, including waste, transport and energy, as well as a few cross-cutting issues. A full and final draft is expected Q1 2018.

• GGGI completed and submitted a GCF Readiness Program proposal to support capacity building, accreditation of a national direct access entity (DAE), development of a pipeline of bankable projects across mitigation and adaptation sectors, and private sector engagement.

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MOROCCOGREEN CITIES AND TERRITORIES

CONTEXTThe Kingdom of Morocco is acutely vulnerable to climate change and is prone to environmental constraints (water scarcity, land degradation, energy dependence, pollution, natural resource depletion). These increasing pressures are a catalyst for rural migration, as the rural economy largely depends on subsistence farming, further straining urban areas and their limited capacities and resources. The Government of Morocco has been cultivating an inclusive green economy for a number of years in collaboration with international development partners. Additionally, in the NSDS, urban development issues are emphasized, with a focus on conceptualizing territories as sustainable ecosystems, and improving design, coordination and implementation of urban interventions and rural-urban linkages. Such examples provide a strong foundation for GGGI’s Morocco country program, which encompasses green territorial development, the circular and social solidarity economy, and implementing the NSDS on a sub-national level.

OVERALL OBJECTIVES• Support Morocco to adopt the methodologies, action plans

and tools to implement green city and territorial development projects, develop two green city and territory project proposals to leverage financing.

• Provide technical support to Morocco to implement its NSDS and its NDC n°9 commitment to develop a model framework for low-carbon green territories including optimized energy, transport and waste management, in alignment with its ongoing advanced regionalization transition.

OVERVIEW

Country / Global implementation

MoroccoLower Middle Income Country (LMIC)

Thematic area Green City Development

Project start date Q3 2017

Funding source Earmarked: UAE

2017 budget USD 459,182

% of budget disbursed 72%

HIGHLIGHTS• Capacity building workshop focusing on the green growth

concept, green territories development, and the social solidarity economy aligned with Morocco’s National Sustainable Development Strategy (NSDS).

• Selection of pilot territories through a mapping that identifies marginalized territories, and territories facing particular resource pressures.

RELEVANT SDGs11.3. By 2030, enhance inclusive and sustainable urbanization and capacity for participator, integrated and sustainable human settlement planning and management in all countries

11.6. By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management

13.2. Integrate climate change measures into national policies, strategies and planning

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ADDITIONAL RESULTS

• In October, a Memorandum of Understanding was signed between the Government of the Kingdom of Morocco and GGGI in order to strengthen cooperation between the two institutions and accelerate Morocco’s transition to a green growth and inclusive economy.

• In November, GGGI and the Secretary of State for Sustainable Development Morocco (SEDD) co-organized the side event on “Implementing National Sustainable Development Strategies: act locally for global impact” at the Morocco Pavilion at the COP23 Bonn Zone. During the event, government representatives from Jordan, Senegal and Morocco as well as GGGI Morocco presented their national green growth programs and sustainable development strategies, and on GGGI support for these programs and strategies in these three countries.

• GGGI Morocco participated in the Kingdom of Morocco’s first National Sustainable Development Strategy (NSDS). Steering Committee meeting in November.

OUTCOME 1 STATUS ON TRACK

Government of Morocco (GoM) or relevant financier leverage finance for green city territorial projects.

GGGI worked during the first half of 2017 to better align its program in Morocco to government priorities. Program operations have resumed at an accelerated pace since the new GGGI Morocco Country Representative came on board in Q3. GGGI also developed its relationship with the new Secretary of State for sustainable development, which is facilitating GGGI’s work to mobilize finance in 2018.

OUTPUT 1.2 STATUS ON TRACK

Two green city and territory implementation projects designed.

• Through consultation and data analysis, the Morocco program has selected pilot territories through a mapping that identifies priority regions based on socio-economic and environmental data. The territories that have been identified are the Draa – Tafilalet region, which contains a vulnerable oasis ecosystem. A total of 40% of the national territory is considered part of the oasis ecosystem. The second region identified is the Beni Mellal – Khenifra region, which contains a fragile mountain ecosystem.

• - Consultations have continued with the key institutional partners and international finance institutions to conduct scoping and identification of priority projects to develop proposals to leverage financing.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

Capacity Building and Knowledge Dissemination

• To initiate the Green Growth Capacity Development Program in Morocco, the first Capacity Building workshop focused on the green growth concept, green territories development, and the social solidarity economy aligned with the NSDS and GGGI’s expertise.

• The workshop raised awareness on the green growth concept and GGGI’s activities, enhanced understanding of the NSDS and its relation to green growth local actions, presented GGGI’s value proposition for Morocco, enhanced understanding on green territories concept and GGGI’s thematic strategy, and collected participant recommendations on implementing the NSDS to support green territory development for GGGI’s 2018 Work Plan and Budget (WPB) activities.

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PARTNERS

LOCAL

• Presidency of the Government

• Secretary of State in charge of Sustainable Development (Program focal point)

• Ministry of Interior

• Ministry of Energy, Mines and Sustainable Development

• Ministry of Agriculture, Fisheries, Rural Development, Forestry and Water

• Ministry of Urbanism and Land Use Planning

• AMEE - Moroccan Agency for Energy Efficiency

• CESE-Economic, Social & Environmental Council

INTERNATIONAL

• The Government of the United Arab Emirates

• NDC Partnership

LESSONS LEARNED• Identify impediments and engage with decision makers early in the process to generate coordinated solutions. This allowed

GGGI to realign its work program to government priorities, and move forward with project implementation in collaboration.

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UNITED ARAB EMIRATES

UAE GREEN GROWTH INITIATIVE

CONTEXTThe UAE faces a complex set of challenges in pursuit of Green Growth. First, it is a hydrocarbon-based economy that must accelerate the speed of economic diversification to mitigate risks from highly volatile oil & gas prices. Second, the country lies in a hyper-arid climate, is highly water-scarce and consumes large amounts of energy for cooling and desalination. Third, it has a rapidly growing population and high dependence on expatriate labor forces. Fourth, its governance structure is highly decentralized (a federal system) and there is an increasing gap in development between Abu Dhabi /Dubai and other emirates.

To address such challenges, the UAE developed its UAE Vision 2021 and Green Economy for Sustainable Development Vision to ensure long-term sustainable development. To achieve the goals outlined in these national plans it has been identified that the lack of a cohesive national framework that incorporates all sectors and emirates needs to be addressed.

OVERALL OBJECTIVE• Support the UAE’s full transition into green economy realizing its

vision of UAE Vision 2021 and Green Economy for Sustainable Development Vision.

• Assist the UAE government in the implementation of the Green Agenda 2030, a national cross-sector green growth framework, to achieve its desired objectives of improved environmental performance, climate resilience, economic diversification and enhanced monitoring capabilities.

OVERVIEW

Country / Global implementation

UAEHigh Income Country (HIC)

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Earmarked: UAE

2017 budget USD 2,039,832

% of budget disbursed 71%

HIGHLIGHTS• Adoption of the National Climate Change Plan 2017-2050 by

the UAE Cabinet.

RELEVANT SDGs11.6. By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management

13.1. Integrate climate change measures into national policies, strategies and planning;

13.3. Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning;

17.9. Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the sustainable development goals, including through North-South, South-South, and triangular cooperation.

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ADDITIONAL RESULTS

• The GGGI developed Country Planning Framework 2018-2022 was approved, and will guide GGGI and UAE’s green growth interventions moving forward.

• The Host Country Agreement was signed on 24 October at a ceremony during the World Green Economy Summit.

OUTCOME 1 STATUS ON TRACK

The UAE government adopts and deploys implementation actions in the Climate Resilient Green Growth Master Plan for 2017-2018.

This outcome is on track with its intended timeline for completion by the end of 2018.

OUTPUT 1.2 STATUS ACHIEVED

Green Business Council set-up and operation.

A Green Business Council has been established and is in operation.

RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ON TRACK

Implementation Support Mechanism for the government (“G-support”) made operational; implementation support packages on the priority, catalytic actions in the Master Plan delivered through “G-support”.

GGGI has supported the Ministry of Climate Change and Environment (MoCCAE) develop the National Climate Change Plan, which was formally approved during the Cabinet meeting presided by the Prime Minister in June 2017. GGGI is now assisting the UAE government with the implementation of the projects and programs contained in the Green Agenda 2015-2030 based on the national priorities. The three main public policy projects under implementation are: national air emissions monitoring, green jobs and national program for climate change adaptation.

This output is on track with its intended timeline for completion by the end of 2018.

OUTCOME 2 STATUS ON TRACK

Knowledge sharing and capacity building activities are effective in improving participants’ knowledge/skills in green growth.

This outcome is on track with its intended timeline for completion by the end of 2018.

OUTPUT 2.1 STATUS ON TRACK

Implementation Capacity Enhanced.

Completed a tailored training program for the youth in cooperation with the Korean Embassy. This output is on track with its intended timeline for completion by the end of 2018.

OUTPUT 2.2 STATUS ON TRACK

Online interface and outreach activities delivered (G-Support online, GGMN, WFES).

GGGI is in the process of finalizing the development of a Green Growth MENA Network (GGMN) to provide an online platform for interactive discussions, networking and knowledge sharing for green growth practitioners in the MENA region. GGGI has actively engaged in the World Future Energy Summit (WFES) 2017 to host multiple bilateral meetings with local and international counterparts, as well as the regional dialogue (under Output 2.3). GGGI continues to support engaging the youth via the Green Growth Youth Program. This output is on track with its intended timeline for completion by the end of 2018.

OUTPUT 2.3 STATUS ON TRACK

Middle East and (North) Africa Ministerial Dialogue and regional knowledge sharing activities.

2nd Middle East Africa Policy Dialogue at the World Green Economy Summit was a successful continuation of previous knowledge sharing activities and was a vehicle to raise GGGI’s profile at an international event in 2017. GGGI plans to host another regional dialogue/knowledge sharing in 2018.

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PARTNERS

LOCAL

• Ministry of Climate Change and Environment (MoCCAE)

• Ministry of Energy (MoENR)

INTERNATIONAL

• World Green Economy Organization (WGEO)

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GLOBALBMZ GREEN INVEST

CONTEXTThe need to mobilize private capital for inclusive green investments is one of the most pressing issues for the achievement of green growth and, since 2015, the targets set in the Paris Climate Agreement and Agenda 2030. The establishment of GreenInvest aimed to contribute to driving convergence between the different but related initiatives. GreenInvest works to overcome challenges including:

• High barriers for private-sector investments persist, including uncertainty and incoherence in policy and regulatory frameworks.

• Project sponsor inexperience in designing bankable green growth projects to submit to potential investors.

OVERALL OBJECTIVE• Find new innovative approaches to mobilize private capital

for inclusive green investment in developing and emerging economies by sharing knowledge and enabling the public sector to work more efficiently and effectively with the private sector and institutional investors.

OVERVIEW

Global Global implementation Colombia, Mongolia, Vanuatu

Thematic area Multi-sectoral

Project start date Q1 2016

Funding source Earmarked: Germany

2017 budget USD 367,500

% of budget disbursed 81%

HIGHLIGHTS• Under the Green Invest project, GGGI supported three

countries - Colombia, Mongolia, and Vanuatu - to identify bankable projects as part of their respective Nationally Determined Contribution (NDC) implementation plans.

• In Vanuatu, GGGI successfully delivered a business model and technical design for the implementation of solar refrigerators for selected private rural tourism operators in Vanuatu.

• In Mongolia, GGGI supported three initiatives, Mongolia green inclusive infrastructure private public partnership (PPP) program, Mongolia energy efficient residential retrofitting in Bayangol District of Ulaanbaatar City, and Mongolian Sustainable Finance Forum (MSFF) 2017.

• In Colombia, Business models for the use and commercialization of residual biomass waste-to-biogas/biomethane energy were successfully developed. Three waste streams were evaluated; palm oil waste, municipal solid waste and poultry litter waste.

RELEVANT SDGs8. Promote inclusive and sustainable economic growth, employment and decent work for all.

13. Take urgent action to combat climate change and its impacts.

17. Revitalize the global partnership for sustainable development.

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RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ACHIEVED

Projects designed under a country NDC (only countries that are part of the NDC-Partnership).

In addition to the 3 projects GGGI targeted to design, 2 additional projects were identified and delivered through BMZ GreenInvest Program. All projects were aligned to the country NDC targets.

• Project 1: Solar Refrigeration for Vanuatu Rural Tourism Operators.With the successful completion of the project in 2017, the Government of Vanuatu has indicated a strong interest to scale-up the project. This interest stems from the initial outcomes of the project, which saw a significant increase in local business activities within the 2 months after the solar freezers were introduced. This is also being fostered by strong business sentiments among rural tourism bungalow operators to grow their business and improve their income earnings. Furthermore, there is high interest among other bungalow operators to participate in similar projects, and businesses are now willing to make financial contributions having seen the demonstrated benefits. Consequently, with GGGI’s support, the Government of Vanuatu prepared a concept note to scale-up the project late 2017, to seek further funding from interested development partners.

• Project 2: Mongolia Green inclusive infrastructure private public partnership (PPP) program.Business cases for ten demonstration projects along with detailed procurement support documents were prepared and delivered to the UB city. UB city has formally endorsed this project, with a clear intent to take it forward to financing. The Investor Forum to support the matching of the 10 business cases to potential financiers was organized on December 19, 2017, in Ulaanbaatar, Mongolia. There were more than 70 participants from national and local government authorities, regulatory organizations, local private sector companies, ESCO companies from China, international organizations, and members of the Business Council of Mongolia. The partnership between UB city and potential financiers from China will be continued in 2018 via knowledge and capacity sharing events. Private sector companies (ESCOs) in China have indicated a keen interest to collaborate with UB city on PPPs in 2018.

OUTCOME 1 STATUS ACHIEVED

Contribution to implementing projects under a country’s Nationally Determined Contribution (NDC).

Specific project implemented and targets under a country NDC addressed.

OUTPUT 1.1 (continued) STATUS ACHIEVED

• Project 3: Mongolia Energy Efficient Residential Retrofitting in Bayangol District of Ulaanbaatar City.Energy Auditing for 3 residential buildings completed and submitted for Government review and validation. The energy audits provide overall energy efficiency potential in across UB (of 1077 buildings), which would show overall energy efficiency potential in UB. The Government of Mongolia set out ambitious targets and goals to improve energy efficiency, conserver energy and reduce energy losses. For instance, in Mongolia’s Green Development Policy and NDC document, it set out goal to reduce building heat loss by 20% by 2020 and 40% by 2030. Furthermore, Law on Energy Conservation (2015) has been adopted in order to implement these goals, and identified 99 high energy consumers, also known as designated entities, which are obliged to carry out energy efficiency measures every three years. Through this activity the UB Mayor’s office has received crucial support to achieve its residential energy efficiency targets, as well as to contribute towards the national goals, by carrying out investment-grade energy audit for model residential buildings to assess energy efficiency potential and its investment needs. Second phase of this cooperation is to develop a business model to explore market-based energy performance contracting for large scale residential buildings.

• Project 4: Mongolian Sustainable Finance Forum (MSFF) 2017.The Mongolian Green Credit Fund (MGCF) and introduction of MGCF-developed pipeline projects to potential domestic and international investors was successfully convened on September 14, 2017 in Ulaanbaatar, Mongolia. The focus theme of the forum was “Fostering Partnerships to Scale Up Sustainable Finance”. The forum attracted more than 500 people attended the event from government and regulatory organizations, banks and other FIs, DFIs and international organizations, clients, businesses, civil society organizations and the academia. The Forum announced the MOU between Mongolia’s Ministry of Environment and Tourism, Ministry of Finance, Mongolian Bankers Association, and GGGI. The MoU establishes an MGCF Steering Committee to accelerate the MGCF’s legal establishment and initial operation. The Forum also included a discussion of the National Sustainable Finance Roadmap with financial regulators. This Roadmap, supported by UN Environment, includes policies and regulations to support the introduction of sustainable finance in the non-banking financial sector that covers micro-finance institutions, insurance companies, and the stock exchange. There was also showcasing of MGCF pipeline projects and crucial feedback from potential investors at the forum.

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RESULTS ACHIEVED IN 2017

OUTPUT 1.1 (continued) STATUS ACHIEVED

• Project 5: Colombia, Innovative business models and financing mechanisms to catalyze private investment for waste biomass to energy biogas projects.This activity was undertaken to support MME in developing policies to attract private sector investment in the production and commercialization of biogas and biomethane. The broader objective of the activity was to promote the development of non-conventional energy sources with lower GHG emissions through support for the formation of a Nationally Appropriate Mitigation Action (NAMA) to meet Colombia’s NDC. Aside from the concrete business plans for the three waste-to-energy streams, policy recommendations were presented and discussed with the government. This activity was well received by the main government counterparts (MME and UPME), demonstrating a strong commitment to the National Climate Change Policy approved in mid-2017. Colombia is aware of the necessity to draw on external technical and finance assistance to meet its national climate ambitions.

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PARTNERS

LOCAL

• Vanuatu: Ministry of Climate Change’s Department of Energy; Ministry of Tourism, Trade, Commerce and Ni-Vanuatu’s Business’ Department of Tourism; and the Ministry of Education and Training’s TVET.

• Mongolia: UB City’s Industry Development and Innovation department, Ministry of Environment and Tourism, Energy Regulatory Commission, Ulaanbaatar City Mayor’s Office, Mongolian Bankers Association and Ulaanbaatar City Environmental Agency.

• Colombia: Ministry of Mines and Energy, Energy Planning Unit, Institute of Hydrology, Meteorology and Environmental Studies, National Strategy for Reducing Emissions from Deforestation and Forest Degradation (ENREDD+), and The Colombian Low Carbon Development Strategy.

INTERNATIONAL

• Partnership for Action on Green Economy

• International Finance Corporation

• UNDP

LESSONS LEARNED• Timelines for projects can shift based on government processes and decision-making requirements.

• The development of a pipeline of projects take a considerable amount of time. This pipeline took four out of the 12-month delivery period to originate.

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GLOBALDEVELOPMENT OF GHGs

MONITORING, REPORTING AND VERIFICATION (MRV)

CONTEXTAn accurate and precise Monitoring, Reporting and Verification (MRV) of greenhouse gas emissions system is fundamental to the post-2020 transparency. This is especially the case since all countries – both developed and developing - are expected to regularly report on their GHG inventories and NDC implementation and achievement progress under the new climate regime based on the Paris Agreement.

Strong emphasis to realize transparency in tackling climate change at a global scale presents a daunting challenge especially to most of the non-Annex 1 countries with limited experience in carbon measurement and reporting. Planning and operationalizing a full MRV scheme requires not only political commitment but also technical expertise, sufficient time and financial resources.

GGGI’s MRV program is designed to support national and/or city level MRV scheme establishment and strengthen the MRV capacities of at least eight countries during the 2017-2018 biennium. GGGI will also develop a sector-specific MRV guideline for the implementation of a transparency mechanism.

OVERALL OBJECTIVES• Support GGGI member and partner countries to accelerate

the implementation of their NDCs to realize the commitments to the Paris Agreement and ultimately achieve Sustainable Development Goals (SDGs) targets.

• Build transparency and contribute to carbon emissions reductions by bringing consistency and enhancing accuracy in emissions reporting.

OVERVIEW

Global implementationColombia, Ethiopia, Lao PDR, Mexico, Mongolia, Myanmar, Peru, Uganda

Thematic area Multi-sectoral

Project start date Q2 2017

Funding source Core

2017 budget USD 621,805

% of budget disbursed 19%

HIGHLIGHTS• Launched in May 2017 upon growing request from the

countries for MRV support.

• GGGI reviewed the identified MRV gaps in 18 countries to be addressed in the planning and implementation of MRV and transparency mechanisms.

RELEVANT SDGs13.2. Integrate climate change measures into national policies, strategies and planning.

13.3. Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

13.b. Promote mechanisms for raising capacity for effective climate change-related planning and management in least developed countries and small island developing States, including focusing on women, youth and local and marginalized communities.

17.19. By 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement gross domestic product, and support statistical capacity-building in developing countries.

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OUTCOME 1 STATUS ON TRACK

Governments are better informed on how to establish effective MRV systems and practices to plan and track NDC progress.

This outcome is on track with its intended timeline for completion by the end of 2018.

RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• GGGI is included in the network led by UNFCCC called ‘Group of Friends on Transparency and MRV’ as a recognition of its engagement with developing countries to support their MRV establishment. GGGI participated in the group discussion during COP23. Being part of the network has strengthened GGGI’s global presence and will be beneficial as GGGI can link with other prominent MRV institutes when delivering in partner countries.

OUTPUT 1.1 STATUS ON TRACK

Developed GHG emissions MRV guidelines (GGGI Guidelines).

• GGGI has completed background research on 14 countries’ MRV status for internal use as part of initial assessment which will serve as the reference base when drafting the MRV guidelines.

OUTPUT 1.2 STATUS ON TRACK

Submitted policy recommendation to establish national GHG emissions MRV system with accurate, transparent, consistent and credible data.

• GGGI has completed background research on 12 countries’ MRV status for internal use as part of initial assessment. The findings were utilized when drafting MRV workplan for Uganda and Myanmar for discussion with the government partners, and will be referred to for other countries in 2018. This set of information provides a general context for policy recommendations discussions at a country level.

OUTPUT 1.3 STATUS ON TRACK

Enhanced institutional capacity and knowledge for operating national GHG emissions MRV system.

• GGGI hosted two country MRV inception workshops in Uganda (October) and Myanmar (November). Each event has contributed to broaden the base of understanding on MRV and raise awareness on the importance of developing a unified national MRV system as a requirement in the transparency mechanism of the Paris Agreement and NDC reporting.

• GGGI has also delivered the 1st Latin America regional knowledge sharing event in Mexico titled ‘Defining an agenda for improving transparency through strengthening of MRV mechanisms’ (December) in partnership with the Mexican government, UNFCCC, UNEP-DTU, the Canadian Embassy, GIZ and GTC-K. The forum has served as a platform to identify cooperation opportunities to strengthen country MRV mechanisms where GGGI can provide technical support.

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PARTNERS

LOCAL

• Ethiopia: Ministry of Environment, Forest and Climate Change(MOEFCC)

• Uganda: Ministry of Water and Environment (MWE)

• Myanmar: Ministry of Natural Resources and Environmental Conservation (MONREC)

• Lao PDR: Ministry of Natural Resources and Environment (MONRE)

• Mongolia: Minister of Environment and Tourism (MET); Ulaanbaatar City

• Mexico: Secretariat of Environment and Natural Resources (SEMARNAT); Mexican Agency for International Development Cooperation (AMEXCID)

• Peru: Ministry of Environment (MOE)

• Colombia: Ministry of Environment and Sustainable Development (MADS)

INTERNATIONAL

• Green Technology Center – Korea (GTC-K)

• Overseas Development Institute (ODI)

• United Nations (UNEP) Collaborating Centre (UNEP-DTU Partnership)

• United Nations Framework Convention on Climate Change (UNFCCC)

LESSONS LEARNED• During the workshops, GGGI has shared its knowledge gained from its MRV work in Ethiopia and UAE with the participants

which were very well received. GGGI plans to capture lessons learned from the countries it has started MRV engagement in 2017 to be incorporated in other countries in the coming years as the MRV project develops.

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GLOBALGREEN GROWTH PERFORMANCE

MEASUREMENT (GGPM)

CONTEXTGGGI is developing a Green Growth Index under its Green Growth Performance Measurement (GGPM) project. The Index serves as a quantitative tool to measure and analyze the impacts of green growth policies. The Index consists of a composite index, which measures performance, a simulation tool, which shows how policy change can impact performance, and an evidence library, which provides the evidence basis for the index and the model.

The evidence-based and quantitative approach of the Green Growth Index make it a unique tool to measure green growth, compare performance across countries on a common scale, and act as a conversation starter for discussing relevant policies.

OVERALL OBJECTIVE• Develop a tool that allows stakeholder to identify green growth

opportunities that support socially inclusive and environmentally sustainable economic development.

• Deliver insight on policy decisions that affect green growth performance.

OVERVIEW

Global Global implementation Global

Thematic area Multi-sectoral

Project start date Q2 2016

Funding source Core

2017 budget USD 461,051

% of budget disbursed 82%

HIGHLIGHTS• A pilot version of the GGPM has been delivered.

• Review of methodology and pilot testing.

RELEVANT SDGs1. End poverty in all its forms everywhere.

2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

3. Ensure healthy lives and promote well-being for all at all ages.

6. Ensure availability and sustainable management of water and sanitation for all.

7. Ensure access to affordable, reliable, sustainable and modern energy for all.

11. Make cities and human settlements inclusive, safe, resilient and sustainable.

13. Take urgent action to combat climate change and its impacts.

15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

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RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS DELAYED

Raise awareness and understanding of green growth.

The planned activities for the Green Growth Performance Measurement (GGPM) project were adjusted considerably in 2017.

OUTPUT 1.1 STATUS DELAYED

Review of methodology and pilot testing.

At least one knowledge product on the Tool published and disseminated. In February 2017, GGGI hosted a two-day workshop in Seoul, at which a variety of experts from institutions such as the OECD, UN Environment, UNIDO, and the World Bank attended and reviewed the methodological framework proposed for use in the GGPM. This workshop fed into the development of the initial measurement framework used in the pilot tool.

OUTPUT 1.2 STATUS DELAYED

Methodology and results of Green Growth Performance Measurement Tool published.

At least one sectoral report or country case published and disseminated. An official “soft launch” of the tool took place at Global Green Growth Week 2017 in Addis Ababa, Ethiopia. Vivid Economics, the consultant working on the development of the GGPM, delivered a finalized pilot version of the GGPM to GGGI in September 2017. The tool was delivered later than expected – however, delays were necessary as the final version was more complex than proposed at the start of the project (EIU, a subcontractor working with Vivid Economics claim that this is the most complex tool that they have ever developed). In addition, GGGI provided extensive feedback to Vivid Economics on interim versions of the tool, and further time was necessary to ensure that Vivid Economics/EIU could incorporate the requested changes into the final version of the tool.

OUTPUT 1.3 STATUS DELAYED

Green Growth Performance Measurement Tool Website Built and Well Maintained.

The website and official launch of the index, although originally scheduled for 2017 have been postponed to allow for further stakeholder consultation, and revision to the underlying methodology. Over the course of 2018, the methodology used in the Index will be revised and finalized. The results of the revised index will feed into the development of a Flagship report which will be developed in cooperation with IPSD and other members of the Thought Leadership team. Both the report and Index are scheduled to be launched in 2019.

ADDITIONAL RESULTS

• Over the course 2017, a series of four feedback workshops were held with local stakeholders in Vietnam, Indonesia, the Philippines, and Ethiopia. During these workshops, GGGI introduced the pilot tool to local stakeholders, and invited them to provide feedback on the tool, its framework and methodology, the user interface, index, simulation tool, and evidence library. Some of this feedback was used to refine the tool before the pilot version was finalized, while other feedback has been noted and will be used to feed future revisions and versions of the tool. Many stakeholders at these workshops provided positive feedback on the tool and suggested that GGGI consider producing country-specific versions which could be adapted to local needs.

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GLOBALNATIONAL FINANCING VEHICLES

(NFVs)

CONTEXTOver the next 15 years, the global economy will require USD 89 trillion for infrastructure investments in cities, energy, and land-use systems, and USD 4.1 trillion incremental investments in low-carbon transitions to limit the global temperature rise within 2°C. Despite the needs, channeling international finances into green growth sectors is challenging, especially within the complexity of development architecture. The key challenge is to attract required capital flows for green growth projects in developing countries due to lack of capacity of domestic institutions.

OVERALL OBJECTIVE• Design and support operations for NFVs to mobilize additional

financial resources for developing countries from multiple sources to support their national green growth objectives.

OVERVIEW

Global Global implementation

Colombia, Mongolia, Rwanda and Vanuatu

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 1,096,477

% of budget disbursed 86%

HIGHLIGHTS• GGGI supported the design of National Financing Vehicles

(NFVs) in Colombia, Mongolia, Rwanda and Vanuatu.

• GGGI conducted assessment work for NFVs in Bhutan, Burkina Faso, Mozambique, Laos and Uganda.

RELEVANT SDGs9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

17. Strengthen the means of implementation and revitalize the global partnership for sustainable development

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OUTCOME 1 STATUS ON TRACK

All approvals on final design of NFV (regulatory, government) are secured.

While NFVs in Colombia and Rwanda were designed and approved by relevant government / regulatory authorities, NFVs in Vanuatu and Mongolia are now at the final stage to legally launch the funds.

RESULTS ACHIEVED IN 2017

OUTPUT 1.2 STATUS ACHIEVED

Final design of NFV, management plan and operating guidelines completed for NFV - Stage 4 of Round 1b NFV development (Building on from 2016 NFV Output B.2, NFV Round 1b Stage 1-3 work in 2016).

Completed management plan, operations manual and decree development for FENOGE in Colombia.

OUTPUT 1.1 STATUS DELAYED

Final design of NFV, management plan and operating guidelines completed for NFV - Stage 4 of Round 2 NFV development (Building on from 2016 NFV Output B.5, NFV Round 2 Stage 1-3 work in 2016). Although Stage 3 and 4 works were delayed due to budget cut, we would start working for some countries such as Laos, Mozambique and Burkina Faso by making the most of earmark funding (e.g. GCF readiness funding).

OUTPUT 1.3 STATUS DELAYED

Assessment for identification of countries (and institutes) for NFV development completed - Stage 2 of Round 3 NFV development. Although Round 3 work was delayed due to budget cut, it may be able to work with other funding.

OUTPUT 1.4 STATUS DELAYED

Full concept and Business plan developed for NFV - Stage 3 of Round 3 NFV development. Although Round 3 work was delayed due to budget cut, it may be able to work with other funding.

OUTPUT 1.5 STATUS DELAYED

Final design of NFV, management plan and operating guidelines completed for NFV - Stage 4 of Round 3 NFV development. Although Round 3 work was delayed due to budget cut, it may be able to work with other funding.

OUTCOME 2 STATUS ON TRACK

Capitalization of NFV by investors.

While IDB and GoC committed approx. USD 25 million for FENOGE (Colombia), GoV committed USD 700,000 for NGEF (Vanuatu), GoM signed MOU on a seed funding for MGCF (Mongolia). Funding proposals to GCF are supposed to be developed for FONERWA(Rwanda), NGEF (Vanuatu) and MGCF (Mongolia) in 2018.

OUTPUT 2.1 STATUS ACHIEVED

Business Development for capital raise completed and project pipeline developed for NFV - Stage 4 of Round 1b NFV development (Building on from 2016 NFV Output B.2, NFV Round 1b Stage 1-3 work in 2016).

Capital raise and initial project pipeline development were completed for FENOGE (Colombia).

OUTPUT 2.2 STATUS DELAYED

Business Development for capital raise completed and project pipeline developed for NFV - Stage 4 of Round. 2 NFV development (Building on from 2016 NFV Output B.5, NFV Round 2 Stage 1-3 work in 2016).Although Stage 3 and 4 works were delayed due to budget cut, we would start working for some countries such as Laos, Mozambique and Burkina Faso by making the most of earmark funding (e.g. GCF readiness funding).

OUTPUT 2.3 STATUS DELAYED

Business Development for capital raise completed and project pipeline developed for NFV - Stage 4 of Round 3 NFV development. Although Round 3 work was delayed due to budget cut, it may be able to work with other funding.

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OUTPUT 2.4 STATUS ON TRACK

Pre-investment facility developed to boost investor confidence and reduce risk for investors.

EE pipeline projects were developed for MGCF (Mongolia). While pipeline projects are to be developed for NGEF(Vanuatu) and FENOGE (Colombia), financial mechanism, e.g. risk sharing facility, is also to be developed for NGEF and MGCF in 2018.

RESULTS ACHIEVED IN 2017

OUTCOME 3 STATUS ON TRACK

Operations started successfully for NFV.

While FONERWA(Rwanda) and NGEF (Vanuatu) are already in operationalization, FENOGE (Colombia) is also about to start operationalization.

ADDITIONAL RESULTS

• GGGI conducted assessment work for five non-member countries, Bhutan, Burkina Faso, Mozambique, Laos and Uganda.

OUTPUT 3.1 STATUS DELAYED

Relevant legal and regulatory procedures are completed to support operations of NFV - Stage 5 of Round 1a NFV development (Building on from 2016 NFV Output C.1, NFV Round 1a Stage 1-4 work in 2016). While legal procedure for NGEF (Vanuatu) is now underway, the same legal procedure for MGCF (Mongolia) is supposed to be taken in 2018.

OUTPUT 3.2 STATUS ACHIEVED

Deal finalization and disbursement to investees during operations of NFV - Stage 5 of Round 1a NFV development (Building on from 2016 NFV Output C.1, NFV Round 1a Stage 1-4 work in 2016).

Developed market assessment /pipeline development work in MGCF(Mongolia) and NGEF (Vanuatu).

OUTPUT 3.3 STATUS ACHIEVED

Relevant legal and regulatory procedures are completed to support operations of NFV - Stage 5 of Round 1b NFV development (Building on from 2016 NFV Output B.2, NFV Round 1b Stage 1-3 work in 2016).

While FONERWA (Rwanda) is already operationalized, the decree for FENOGE (Colombia) was published in Sep/17.

OUTPUT 3.4 STATUS ON TRACK

Deal finalization and disbursement to investees during operations of NFV - Stage 5 of Round 1b NFV development (Building on from 2016 NFV Output B.2, NFV Round 1b Stage 1-3 work in 2016).

Pipeline development in Rwanda is ongoing (FONERWA). Pipeline development for FENOEGE(Colombia) is due to begin in 2018.

OUTPUT 3.5 STATUS ACHIEVED

Developing pipeline for potential investments from NFV - Project review through Project fix webtool.

Pipeline development in EE industry for MGCF (Mongolia) and pilot project development for NGEF (Vanuatu) were completed.

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PARTNERS

LOCAL

• Mongolia: Ministry of Environment and Tourism, Ministry of Finance, Mongolian Bankers Association.

• Vanuatu: Department of Energy of Ministry of Climate Change (DoE), Department of Finance and Treasury, Member Financial Services Limited (MFSL), National Bank of Vanuatu (NBV).

• Colombia: Ministry of Mines and Energy (MME), Ministry of Environment and Sustainable Development (MADS), Ministry of Finances and Public Credit (MHCP), National Planning Department (DNP).

• Rwanda: Ministry of Infrastructure (MININFRA), Ministry of Natural Resources (MINIRENA), Ministry of Finance and Economic Planning (MINECOFIN), Rwanda Development Board, Private Sector Federation of Rwanda.

INTERNATIONAL

• Green Climate Fund

• FMO

• UN-PAGE/UNEP

• IDB

• KOICA

LESSONS LEARNED• Launching a successful NFV is a complex task that requires sufficient/realistic timelines and flexibility;

• Seek for a balance between standardized approach and tailor-made support approach;

• Select a right institution to develop NFV and seek for legal advisory services to ensure right legal agreements;

• Articulate market assessment/ pipeline project development should be done before capitalization activity;

• Cross-check with potential investors from early stage for successful capitalization;

• Work closely with government to work within their established processes and not try to work “outside” of government processes;

• The time needed for awareness raising, coordination and capacity building within Government should not be underestimated;

• Adequate revenue accounting and management systems need to be put into place.

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GLOBALGLOBAL AND REGIONAL KNOWLEDGE SHARING

CONTEXTThe GGKP was established in January 2012 by the Global Green Growth Institute, the Organisation for Economic Co-operation and Development, the United Nations Environment Programme and the World Bank as a vehicle for promoting green growth at a global level by providing a collaborative platform for leadership in knowledge sharing and policy research. Since then, the GGKP partnership has grown to 58 partners ranging from international and nongovernmental organizations to academic institutions and think tanks. It represents the world’s largest global community of institutions and experts committed to collaboratively generating, managing, and sharing green growth knowledge and data for policymakers and practitioners. Drawing together these partners, the GGKP initiates and coordinates green growth research and analysis resulting in increased access to green growth knowledge and strengthened international cooperation.

GGKP provides a global platform for GGGI to promote thought leadership, knowledge generation, management, and sharing, and knowledge partnerships in 2017. The GGKP is on track to be accessed more than 275,000 times within 2017, reflecting 10% growth in web traffic from 2016.

OVERALL OBJECTIVE• Provide a global platform through green growth

knowledge generation, management, and sharing, and knowledge partnerships.

OVERVIEW

Global implementation Global

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 1,148,498

% of budget disbursed 70%

HIGHLIGHTS• Continued joint implementation of Green Growth Knowledge

Platform (GGKP) Secretariat.

• Expansion of the GGKP web platform, including the securing of funding to support significant improvements.

RELEVANT SDGs7. Ensure access to affordable, reliable, sustainable and modern energy for all.

9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

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RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• In 2017 the GGKP launched its online Expert Connect service. Expert Connect gives policymakers direct access to world-leading technical and policy experts for quick and tailored guidance on a range of green growth topics. Specialized experts, including from GGGI, are available to provide guidance on fiscal reform, access to finance, indicators and metrics, natural capital approaches, sustainable trade, and government procurement. The experts are available to policymaker to review draft strategies, analyze policy options, share experiences from other countries, and facilitate networking. Green Growth Expert Connect is available at no cost to government agency representatives from developing countries and supporting technical institutes.

OUTPUT 1.1 STATUS ACHIEVED

Knowledge management.

• GGGI continued to expand the GGKP web platform and funded significant improvements. At the end of 2017, the web platform included: 1,750 publications in its resource library; 300 learning products (courses, webinars, and other tools); 230 project summaries (including all Is, from 89,000 unique users).

• In the most recent 2016 survey, of the policymakers and practitioners responding to a GGKP user survey, 60% reported visiting the GGKP platform, 60% of those who visited had indicated using knowledge products from the site to inform their work, and 42% confirmed that improved access to green growth knowledge products would benefit their work.

OUTCOME 1 STATUS ACHIEVED

Expand the GGKP web platform and funded significant improvements.

The GGKP continues to establish itself as a global leader in green growth knowledge generation, management, and sharing.

OUTPUT 1.2 STATUS ACHIEVED

Knowledge sharing.

• The GGKP also made significant strides in 2017. In November 2017, the GGKP also convened the fifth GGKP annual conference, hosted by the world bank during September 2017 in Washington dc. The GGKP sustainable infrastructure expert working group launched a call for papers which formed the basis of the 2017 GGKP annual conference. In almost 20 sessions, over 80 speakers from leading universities, research and financial institutions, government, and the private sector explored some of the most critical questions on how to design, promote, and implement sustainable infrastructure. The event featured 44 policy-relevant papers, now featured on the GGKP website, on supporting sustainable infrastructure for green growth. The conference drew together more than 250 experts in discussion and debate.

• In addition, the GGKP continued to engage in a range of in-person and online knowledge sharing activities. The GGKP expanded its social media network, continued to deliver its monthly newsletter, now with more than 6,000 subscribers, and expanded coverage of its blog (which has received contributions from more than 150 global experts). The GGKP also organized a total of six webinars during 2017, drawing together an average of about 125 participants per webinar.

OUTPUT 1.3 STATUS ACHIEVED

Knowledge generation.

• The GGKP had eight operating expert working groups in 2017 to identify green growth knowledge gaps and promote green growth research. In May 2017, the trade and competitiveness research committee released a scoping study in the working paper: “analysis of existing environmental policy databases”. The paper assesses 24 databases that provide information on environmental policies implemented by national governments. The review of each database summarizes the type of information provided, the breadth of coverage, the accessibility of data, and the strengths and weaknesses of each database with respect to the overall objective of improving access to environmental policy data for assessing the impact of environmental policies on competitiveness and trade.

• In 2017 the GGKP also established a new expert working group dedicated to mainstreaming the natural capital approach into green growth policies and planning. Natural capital and ecosystem services play a critical role in maintaining biodiversity and enabling green economic growth. Mainstreaming natural capital in national development planning will be critical to achieving the sustainable development goals by 2030. The expert working group was launched at world bank headquarters in Washington, DC on November 30 - December 01, 2017.

OUTPUT 1.4 STATUS ACHIEVED

Policy dialogues and south-south cooperation.

In 2017, GGGI allocated resources for two principal knowledge sharing activities. First, GGGI supported travel for ministers to the LDC Group Ministerial, which took place October 2-6, 2017 in Addis Ababa, Ethiopia. The meeting, which brought together 20 LDC Group Ministers (up from four in 2016), resulted in the adoption of the Addis Ababa Communique. The Communique provided momentum and strong political leadership to the LDC Group as they moved toward the 23rd Conference of the Parties (COP 23) to the UN Framework Convention on Climate Change (UNFCCC). GGGI also supported the annual Asia Low Emission Development Strategies (LEDS) Forum in Ho Chi Minh City, Vietnam as a co-sponsor, organizing sessions on green city low emission development. In addition, GGGI supported its team in China team to conduct a Southeast Asia regional stakeholder workshop under the Belt and Road Initiative.

GGGI Global: Project Results Report

ADDITIONAL RESULTS

• In 2017 the GGKP launched its online Expert Connect service. Expert Connect gives policymakers direct access to world-leading technical and policy experts for quick and tailored guidance on a range of green growth topics. Specialized experts, including from GGGI, are available to provide guidance on fiscal reform, access to finance, indicators and metrics, natural capital approaches, sustainable trade, and government procurement. The experts are available to policymaker to review draft strategies, analyze policy options, share experiences from other countries, and facilitate networking. Green Growth Expert Connect is available at no cost to government agency representatives from developing countries and supporting technical institutes.

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PARTNERS

INTERNATIONAL

• United Nations Environment Programme (UN Environment)

• Organisation for Economic Co-operation and Development (OECD)

• World Bank Group

• Additional 52 organizations from around the world participating as Knowledge Partners

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GLOBALGREEN GROWTH AND WIN-WIN STRATEGIES FOR SUSTAINABLE CLIMATE ACTION (GREEN-WIN)

CONTEXTThe overarching objectives of the European Commission’s GREEN-WIN project are: (1) to identify, develop, and critically assess win-win strategies, green business models, and green growth pathways that bring short-term economic benefits, while also supporting climate change mitigation and adaptation goals; and (2) to co-develop shared narratives around win-win strategies, business opportunities, and green growth pathways among scientific, policy, business, and civil society sectors.

OVERALL OBJECTIVES• Support green growth planning and implementation that makes

measurable progress in all GGGI countries

• Identify and utilize relevant knowledge products, including case studies and other materials, to help promote its own country program objectives.

OVERVIEW

Global implementation Global

Thematic area Multi-sectoral

Project start date Q3 2015

Funding source EarmarkedEuropean Union

2017 budget USD 28,595

% of budget disbursed 98%

HIGHLIGHTS• GGGI continued to implement its contribution to the

GREEN‑WIN project through hosting of the website (green‑win‑project.eu) and holding a webinar.

RELEVANT SDGs13. Take urgent action to combat climate change and its impacts.

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OUTCOME 1 STATUS ON TRACK

GGGI is viewed as an active contributor of green growth knowledge and is an integral participant of major international knowledge networks.

Over 2017, GGGI has continued to deliver on its components for the Green‑Win project. This includes through maintaining the Green‑Win website (www.green‑win‑project.eu) and through delivering the first of two Webinars (the second webinar was delivered in 2018). GGGI has coordinated it knowledge sharing through participation in a conference in Vienna.

RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• In support of the Green‑Win project during 2017 and in connection with GGGI’s support for the GGKP platform, GGGI successfully maintained end expanded the project website, with all essential components (including About, Partner, Publications, Project Updates, Deliverables, and Newsletter pages). As of December 2017, the website had 7,005 total visitors, 4,628 unique visitors, and 20,272 page views, and 15 blogs published (exceeding the project target).

OUTPUT 1.1 STATUS ACHIEVED

Create, host, and manage a website for the Green-Win project, linked to the GGKP web platform.

GGGI has continued to host and manage the stand alone Green‑Win website, which is linked together with the wider Green‑Growth Knowledge Platform. In 2017 GGGI also created a stand‑alone “coalition” page for Green‑Win on the GGKP website, which will serve as the long‑term repository for Green‑Win publications.

OUTPUT 1.2 STATUS ACHIEVED

Organize and coordinate a series of blogs and webinars once the research is ready for dissemination; and support other communications activities.

In 2017 GGGI hosted the first of two Green-Win Webinars, titled “Can We Achieve Economic Development & Climate Goals Together? Applying Win‑Win Strategies”. The webinar was attended by over 150 participants. The webinar explored how to deliver access to energy, sanitation, and opportunities for socio‑economic development to poor communities facing accelerated climate change. Webinar speakers discussed solutions by drawing insights from key projects that have implemented integrated “win‑win” solutions for clean energy, smart agriculture and waste and greywater management in rural communities in India and Indonesia, and informal peri‑urban settlements in South Africa. Topics discussed included enabling policy conditions, community education and engagement, investment opportunities and green business models, and the design and implementation of transformative win‑win solutions.

OUTPUT 1.3 STATUS ON TRACK

Internal identification and sharing of relevant Green-Win knowledge products.

In 2017, GGGI continued to identify and share relevant Green‑Win knowledge products with the wider green growth and green economy community. This included through the creation of a new Green‑Win blog series from Green‑Win participant organizations, written at the submission of their final deliverables to the Green‑Win project.

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PARTNERS

INTERNATIONAL

• European Union

• 2° Investing Initiative (2°ii), France

• Deltares, Netherlands

• E3‑Modelling, Greece

• Environmental Change Institute, UK

• European Centre for Living Technology at Università Ca’ Foscari Venezia, Italy

• Global Climate Forum (GCF), Germany

• Institute for Advanced Sustainability Studies (IASS), Germany

• Institute of Environmental Sciences at Boğaziçi University, Turkey

• Jäger Jill, Austria

• The Ground_Up Association, Switzerland

• The Institute of Environmental Sciences and Technology, Autonomous University of Barcelona (UAB), Spain

• The Paris School of Economics (EEP‑PSE), France

• Udayana University, Indonesia

• University College London, UK

• University of Cape Town, South Africa

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HUNGARYHUNGARY-BALKAN REGIONAL

MULTI DONOR TRUST FUND

CONTEXTThe countries of the region have been experiencing a steady growth in terms of economic performance; their economy grew by 3.2% on average in 2017 (World Economic Outlook, October 2017). This above average economic expansion (EU’s GDP growth in 2017 was 2%; European Commission) made it possible for the region to create more jobs and reduce poverty. However, despite the positive trends, challenges and risks remain stemming from climate threats, and environmental pollution. Nevertheless, this risk also comes as an opportunity to introduce new, effective technologies and methodologies for the Western Balkan Region to ensure a greener and resilient future.

OVERALL OBJECTIVES• Design the Western Balkan Green Fund (WBGF) to mobilize

additional and complementary resources to support Nationally Determined Contributions (NDCs) and green projects of Western Balkan countries.

• Facilitate the alignment of climate strategies and cooperation among Fund stakeholders.

OVERVIEW

Country / Global implementation

Hungary High Income Country (HIC)

Thematic area Energy

Project start date Q3 2017

Funding source Earmarked: Hungary

2017 budget USD 78,006

% of budget disbursed 94%

HIGHLIGHTS• GGGI Team is in place and developed, in close collaboration with

the Ministry of National Development, the design of the financial instrument that will support the Western Balkan countries.

• An Advisory Committee was formed and will advise the team during the development of the project, to ensure alignment with national development plans and objectives.

• A consultation at international, regional and national level was completed to identify among others, the needs and priorities of the Western Balkan countries, the gaps with the current financial instruments supporting the region and development partners.

RELEVANT SDGs13.2. Integrate climate change measures into national policies, strategies and planning.

13.a. Implement the commitment undertaken by developed-country parties to the United Framework Convention on Climate Change to a goal of mobilizing jointly USD100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Fund through its capitalization as soon as possible.

17.3. Mobilize additional financial resources for developing countries from multiple sources.

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RESULTS ACHIEVED IN 2017

OUTCOME 1 STATUS ON TRACK

Hungarian government approves the Trust Fund.

GGGI main activity in Hungary consists in the design of a regional fund that will serve as a pooled mechanism for efficient allocation of green finance in the Western Balkan Region: in Republic of Albania, Bosnia and Herzegovina, Kosovo, Republic of Macedonia, Montenegro and Republic of Serbia.

The design phase will be immediately followed by an operational phase. This outcome is on track with its intended timeline for completion in 2019.

OUTCOME 2 STATUS ON TRACK

The Trust fund supports NDCs implementation and green growth projects in the Balkan region.

This outcome is on track with its intended timeline for completion in 2019.

OUTPUT 1.1 STATUS ON TRACK

Trust Fund design is completed and submitted for approval by the Hungarian government.

The project office was set up and staff recruited. A complete work plan was developed by GGGI team in collaboration with the Hungarian Ministry of National Development. The WBGF will be submitted for government approval at the last quarter of 2018. The design approach is built around Results-Based Management (RBM) framework. The objective of this approach is to deliver a simple, consultative, step-by-step process of fund establishment in close partnership with the Hungarian government and key stakeholders.

PARTNERS

LOCAL

• Ministry of National Development, Hungary

LESSONS LEARNED• In order to develop a fund that will serve the Western Balkan countries, it is crucial to work very closely with the relevant

ministers, partners and beneficiaries in the countries, which means that budget and local presence needs to be fully integrated in the next planning.

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GLOBALNDC COLLABORATIVE

CONTEXTMarket and non-market mechanisms in Article 6 of the Paris Agreement are expected to play a significant role in the achievement of NDCs and realizing “higher ambition” (as stated in Article 6.1). There has been limited progress in operationalizing the high-level concepts in Article 6. The SBSTA meetings held in May 2017 only yielded a tentative list of issues to be addressed – far short of fleshing out Article 6 into a practical and implementable process/mechanism.

OVERALL OBJECTIVE• Design a pilot Article 6 transaction.

OVERVIEW

Global Global implementation Global

Thematic area Multi-sectoral

Project start date Q2 2017

Funding source Core

2017 Actual Budget USD 101,973

% of budget disbursed 53%

HIGHLIGHTS• Transaction model for countries under Article 6.2 developed and

presented to prospective “buyers” of internationally transferred mitigation outcomes (ITMOs) within GGGI membership.

RELEVANT SDGs13. Take urgent action to combat climate change and its impacts.

17. Strengthen the means of implementation and revitalize the global partnership for sustainable development.

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RESULTS ACHIEVED IN 2017

ADDITIONAL RESULTS

• Over the course 2017, a series of four feedback workshops were held with local stakeholders in Vietnam, Indonesia, the Philippines, and Ethiopia. During these workshops, GGGI introduced the pilot tool to local stakeholders, and invited them to provide feedback on the tool, its framework and methodology, the user interface, index, simulation tool, and evidence library. Some of this feedback was used to refine the tool before the pilot version was finalized, while other feedback has been noted and will be used to feed future revisions and versions of the tool. Many stakeholders at these workshops provided positive feedback on the tool and suggested that GGGI consider producing country-specific versions which could be adapted to local needs.

OUTCOME 1 STATUS ACHIEVED

Technical contribution to the operationalization of Article 6 of the Paris Agreement.

• In January 2017, GGGI launched a scoping project titled “NDC Collaborative” as a first step toward addressing this intellectual gap and operationalizing Article 6. GGGI developed a conceptual approach outlining how GGGI could design and facilitate a pilot transaction, utilizing its existing assets of partner countries and bankable projects.

• The concept was tested to a closed audience composed of experts in carbon markets/climate finance/international climate policy, WB staff who designed the CDM and Prototype Carbon Fund that pioneered “first-of-its-kind” transactions, and senior government officials (e.g. economic adviser in the Prime Minister’s Office of Ethiopia, executive director of Senegal’s pension fund, etc.)

• The invitees expressed much interest in the concept and affirmed its contribution to UNFCCC negotiations. They requested that GGGI follow up with detailed models of pilot transactions for discussion in the second meeting.

OUTPUT 1.1 STATUS ACHIEVED

Pilot Article 6 transaction.

A model 6.2 transaction between countries has been drafted and presented to prospective “buyers” of ITMOs within GGGI membership (Republic of Korea MOFA and Australia’s Carbon Market Institute).

PARTNERS

• MOFA (Republic of Korea)

• DFAT (Australia)

• Carbon Market Institute (Australia)

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GLOBALRESEARCH AND ANALYSIS

CONTEXTThe Office of Thought Leadership (TL) is responsible for developing and coordinating a compelling and rigorous evidence base that showcases impact to key audiences – internal and external – through policy research, analysis, and data-driven tools and methodologies – resources that should have strategic planning and practical application value. It will promote knowledge sharing, leverage international partnerships to expand our impact. Activities under TL are intended to directly contribute to or complement operational projects and outputs, while simultaneously expanding and demonstrating GGGI’s leadership in shaping the green growth discourse and dialogue internationally.

Policy research and analysis activities are aimed at helping GGGI develop strategic evidence base, frameworks, guidelines, and analytical models for shaping and influencing the green growth discourse internationally, and supporting evidence-based green growth programs for impact on the ground. GGGI’s policy research and analysis directly supports development and alignment of GGGI’s operational strategy for NDC and SDG implementation in partner countries. The activities encompass (multi-country) cross-cutting as well as sectoral projects in the energy, transport and green cities sectors.

Knowledge sharing activities encompass strengthening and expanding GGGI’s work in climate diplomacy, data-driven green growth tools and methodologies, and international green growth knowledge platforms and databases. In addition to these activities, TL continues to support in-country delivery through knowledge products and services that are based on the analysis and extraction of internal as well as external experiences, contextualization of best practices, and packaging of new knowledge, insights, innovations, data, tools, and methodologies.

OVERALL OBJECTIVE• The overall objective of this project is to provide strategic

research, analysis, and foresights that support countries to advance green growth policies and investments and that demonstrate GGGI’s leadership in shaping the international green growth dialogue.

OVERVIEW

Global implementation Global

Thematic area Multi-sectoral

Project start date Q1 2017

Funding source Core

2017 budget USD 647,198

% of budget disbursed 44%

HIGHLIGHTS• Technical support provided to 7 country programs in the

energy, transport, and cross-cutting areas.

• 9 technical reports, monographs, strategic documents, or policy briefs developed.

• 9 peer-reviewed articles on meat industry, energy, and transport published or submitted for publication in journals, or presented at conferences.

• 4 academic or research institutions engaged in formal, substantive partnerships with GGGI.

• Climate diplomacy program launched to support LDC Group and successfully organized 2017 LDC Group Ministerial.

RELEVANT SDGs7. Ensure access to affordable, reliable, sustainable and modern energy for all.

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

11. Make cities and human settlements inclusive, safe, resilient and sustainable.

13. Take urgent action to combat climate change and its impacts.

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RESULTS ACHIEVED IN 2017

OUTPUT 1.1 STATUS ACHIEVED

GGGI technical reports, monographs, or policy briefs prepared on priority topics.

• Two technical reports on energy, Africa’s Green Energy Challenges and Off-Grid Renewable Energy Solutions, and Market Assessment of Fuel Pellets and Green Charcoal for Energy Uses in Senegal, produced.

• GGGI’s Green Energy Development Technical Guidelines developed.

• GGGI’s definition and theory of change on green growth developed, and key documents such as Strategic Plan 2015-2020, CPF guideline etc. refreshed to reflect the same.

• GGGI’s Strategic Outcomes and indicators, aligned to major SDGs, developed and endorsed; first appraisal of Strategic Outcome targets for GGGI operating countries completed.

• Report on barriers to private sector participation in the off-grid solar power sector in Mozambique prepared.

• Report on urban resilience planning in secondary cities prepared.

• Technical report on green transport assessment prepared.

• A comprehensive NDC review of GGGI partner countries conducted, and a (living) database created to support activities under the GGGI’s NDC alliance.

OUTCOME 1 STATUS ACHIEVED

Research & analysis on climate action planning and SDG implementation for green growth.

This project contributed to climate action planning of select countries through technical support in the energy and transport sectors and a climate diplomacy program. Knowledge products generated by this project in the form of technical reports, peer-reviewed articles, or insight briefs are also expected to inform in-country or global climate change mitigation/adaptation action and SDG implementation.

OUTPUT 1.2 STATUS ACHIEVED

Papers published, or submitted for publication, in peer-reviewed journals or publications, with at least one GGGI staff member as (co-)author.

Six articles published or submitted for publication in peer-reviewed journals:

• The key role of the meat industry in transformation to a low-carbon, climate resilient, sustainable economy, Meat Science, 2017. (published)

• Meeting Conditional Targets in NDCs of Developing Countries: Renewable Energy Targets and Required Investment Of GGGI Member And Partner Countries, Energy Policy, 2018. (published, submitted in 2017)

• Vanuatu’s Vision 2030: The Path Towards Ambitious Energy Efficiency Policies and targets, Energy Policy. (submitted)

• Pathway Towards 100% Renewable Electricity Generation on Ovalau and Taveuni Islands in Fiji by 2035 – A Pre-Feasibility Case Study, Energy Policy. (submitted)

• Economic Appraisal of Implementing Electric Vehicle Taxis in Seoul, Research in Transportation Economics. (submitted)

• Managing future risk and interdependency for low carbon infrastructure: energy, transport and water system interactions, Nature Sustainability. (submitted)

Three abstracts/full papers accepted and presented at international conferences:

• Sustainable Transport through Provision of Electric Vehicle Taxis: A Case Study in Seoul, Presented at the Green Growth Knowledge Platform (GGKP) Annual Conference 2017, USA.

• Vanuatu’s Vision 2030: The Path Towards Ambitious Energy Efficiency Policies and Targets, Presented at the 7th Asia-Pacific Forum on Renewable Energy (AFORE 2017), South Korea.

• Modelling future scenarios of infrastructure demand for the UK’s National Infrastructure Assessment, Presented at the 2017 International Symposia of Next Generation Infrastructure, UK.

OUTPUT 1.3 STATUS ACHIEVED

Formal, substantive partnerships developed with Korean and international institutions.

• Formal partnerships formed with 3 academic institutions: University of Delaware, Korea University, and Graduate School of Green Growth of the Korea Advanced Institute of Science and Technology (KAIST).

• Collaborative Research Conducted with KAIST and Korea Research Institute for Human Settlements (KHRIS).

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GGGI Global: Project Results Report

RESULTS ACHIEVED IN 2017

OUTPUT 1.4 STATUS ACHIEVED

Capacity building/ Knowledge sharing.

• ‘Africa’s Off-grid Energy Challenges and Solutions’ session organized during the Global Green Growth Week 2017

• ‘Resilience planning and practices in secondary cities’ session co-organized with UNDP at the Resilient Cities Asia Pacific Congress 2017 conference held in Ho Chi Minh, Vietnam.

• Contributions made in more than 15 national and international forums as presenters or panelists on key green growth topics, and disseminated GGGI’s activities and green growth concepts.

• GGGI’s work on estimating health benefits of avoided transport air pollutant emissions shared at the International Transport Forum (ITF) 2017 Summit.

OUTPUT 1.5 STATUS ACHIEVED

Climate Diplomacy.

• The concept note for the new Climate Diplomacy Program developed in June 2017 following consultations with the LDC Group and aligned to the draft LDC Group 2017-2018 Work Plan.

• A number of activities took place aimed both at supporting the LDC Group in the climate change negotiations and strengthening the relationship between the LDC Group and GGGI.

ADDITIONAL RESULTS

• Provided climate action planning related support to country programs, including scoping and review of Ulaanbaatar NDC planning project, scoping of Indonesia energy NDC review project, and review of knowledge product on Fiji Solar PV growth assessment, review of Ethiopia’s GHG Reduction Roadmap, review of UAE’s MRV proposal, and GCF readiness proposal development for Mozambique.

• Conducted an analysis for parking reforms in Phnom Penh.

• Developed a tool that estimates health benefits of the avoided air pollutant emissions from green transport interventions in collaboration with the Mexico country team.

• Contributed to the concept development of China, Japan and South Korea Green Growth Initiative, and garnering support for the Initiative from Seoul Metropolitan Government and Japan Ministry of the Environment that resulted in the launch of the Initiative in Japan Pavilion during COP23.

• Developed a rural electrification database.

• Drafted Energy Planning for NDC Implementation (A Handbook for Green Energy Planning and Mitigation Assessment).

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PARTNERS

• African Development Bank Group (AfDB)

• Graduate School of Green Growth (GSGG), Korea Advanced Institute of Science and Technology (KAIST)

• International Institute of Environment and Development (IIED)

• Korea Research Institute for Human Settlements (KHRIS)

• Korea University

• LDC REEEI Group (Least Developed Countries Renewable Energy and Energy Efficiency Initiative)

• LDC Group of Countries

• United National Development Programme (UNDP) Regional Hub

• University of Delaware

• University of Oxford

LESSONS LEARNED• Collaboration with academic and research institutions is valuable and effective because their knowledge and resources can be

leveraged. Partnerships with in-country institutions need to be pursued to help GGGI’s work and sustain the knowledge and lessons from the work.