Exercise: Project prioritisation

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What you can expect to learn from this exercise

Understanding of :- the Multi-Criteria Analysis (MCA) tool for prioritising climate

investments- the relevant criteria established by the Green Climate Fund (GCF) for

the decision on climate investments

How to:- facilitate a consensus on climate investments while considering

different opinions and perspectives

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Introduction to the concept of the Multi-Criteria Analysis (MCA)

Project prioritisation exercise

Reflection and next steps

Agenda

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Multi-Criteria Analysis (MCA) – a definition

“MCA describes any structured approach used to determine overall preferences among alternative options, where the options accomplish several objectives. In MCA, desirable objectives are specified and corresponding attributes or indicators are identified.”

(Source: UNFCCC)

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• is a decision-making aid

• takes into account quantitative and qualitative variables, and thus represents the complex nature of climate policy instruments

• is a hands-on and easily understandable tool and therefore allows for participatory decision making

Multi-Criteria Analysis (MCA) – purpose and function

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Multi-Criteria Analysis (MCA) – steps and procedures

1• Identification of criteria• Standardisation of values for criteria

2• Weighing of criteria• Scoring options based on criteria

3• Analysis of results• Drawing of conclusions

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Project prioritisation exercise

Setting

You are a member of the National Climate Change Technical Committee working on CLIFland‘s National Climate Change Strategy and Action Plan (NCCSAP). The development of the NCCSAP followed a multi-stakeholder process, involving actors from the public and private sector as well as civil society.

Of the many project ideas developed to implement the National Climate Change Strategy, only a selection will be submitted for funding to the Green Climate Fund (GCF). In order to select a priority project, the National Climate Change Steering Committee of CLIFland already decided on a weighting of the initial GCF investment criteria.

Your task is to select one priority adaptation/ mitigation project from the existing project pipeline, making use of the Multi-Criteria Analysis and a selection of the GCF investment criteria. The most suitable project will be proposed to the Implementing Entity for submission to the GCF.

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Project prioritisation exercise

Now it is your turn to do the exercise!

Break up into groups of 4-5 people Follow the instructions of the step-by-step guide which you will find in the hand-

out

• Step 1: Evaluate the list of projects provided in the hand-out according to the selected GCF investment criteria on a scale of 1 to 5 (5 being the highest rating)

• Step 2: Multiply the scores for each project by the respective weights given.

• Step 3: Discuss the results within your group and take a final decision on the project to be submitted to the GCF.

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Initial investment criteria of Green Climate Fund

GCF investment

criteria

Impact potential

Paradigm shift

potential

Sustainable development

potential

Country ownership

Efficiency and

effectiveness

Needs of the

recipient

Criterion 2

Criterion 1

Criterion 3

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Project prioritisation exercise

Criterion 1Paradigm shift potential

Criterion 2 Efficiency and effectiveness

Criterion 3Country ownership

• Potential for scaling-up and replication and overall contribution to global low-carbon and climate resilient development pathways

• Potential for knowledge and learning

• Contribution to the creation of an enabling environment

• Contribution to the regulatory framework and policies

• Cost-effectiveness and efficiency regarding financial and non-financial aspects

• Amount of co-financing• Programme/ project

financial viability and other financial indicators

• Industry best practices

• Existence of a national climate strategy

• Coherence with existing policies

• Capacity of implementing entities, intermediaries or executing entities to deliver

• Engagement with civil society organizations and other relevant stakeholders

Selected GCF investment criteria for Multi Criteria Analysis (reduced version)

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Multi-Criteria Analysis (MCA) – Example for adaptation

Adaptation projects

Criterion 1:Paradigm shift potential

Criterion 2 Efficiency and effectiveness

Criterion 3 Country ownership

Overall evaluation

Construct wind shelter belts against erosion

3Flagship project with

high spill-over potential for other affected regions,

change in national policy framework

unlikely

4Pilot plantations in other districts show

that erosion has been significantly

reduced at low cost

4Project forms part of

government‘s climate change

strategy, experienced implementing

partner identified

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Raise water prices and inform farmers about water-saving irrigation techniques.

5High potential to achieve change in

policy framework and to initiate technology

innovation

3Needs to be

accompanied by other measures to

increase overall water volume.

2Water conservation not among priority areas of national climate change

action plan

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Scoring Scale 1 – 5 (5 being the highest rating)

Step 1: Evaluate projects according to selected criteria

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Multi-Criteria Analysis (MCA) – Example for adaptation

Adaptation projects Criterion 1:Paradigm shift potential

Criterion 2 Efficiency and effectiveness

Criterion 3: Country ownership

Overall evaluation

Weights: 1.0 1.0 0.8Construct wind shelter belts against erosion

3 x 1.0 = 3.0 4 x 1.0 = 4.0 4 x 0.8 = 3.2 10.2

Raise water prices and inform farmers about water-saving irrigation techniques.

5 x 1.0 = 5.0 3 x 1.0 = 3.0 2 x 0.8 = 1.6 9.6

Weights: 0.1 – 1.0 (1.0 indicating the highest importance)

Step 2: Calculate the final scores by multiplying the scores with the given weighting

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Multi-Criteria Analysis (MCA) – Example for mitigation

Step 1: Evaluate projects according to selected criteria

Mitigation projects

Criterion 4:Paradigm shift potential

Criterion 2 Efficiency and effectiveness

Criterion 1 Country ownership

Overall evaluation

Introduce energy performance certificates for public and commercial buildings

5Creation of an enabling environment for spread

of energy-saving technologies in the

country and potentially the region

4Efficient lamps save

25% of electricity consumption for

lighting

4In line with national

climate chnage mitigation strategy;

experienced implementing

partner identified

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Catalysing industrial and commercial organic waste management

3Project outcomes will be

fed into an update of national waste management

regulations to achieve system change

3Facilities reduce the

use of dumps; technologies yet to be

tested to leverage private sector funding

2Waste management not among priority areas of national climate change

action plan

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Scoring Scale 1 – 5 (5 being the highest rating)

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Multi-Criteria Analysis (MCA) – Example for mitigation

Weights: 0.1 – 1.0 (1.0 indicating the highest importance)

Step 2: Calculate the final scores by multiplying the scores with the given weighting

Mitigation projects

Criterion 4:Paradigm shift potential

Criterion 2 Efficiency and effectiveness

Criterion 1 Country ownership

Overall evaluation

Weights: 1.0 0.9 0.7

Improve lighting efficiency in buildings

5 x 1.0 = 5 4 x 0.9 = 3.6 4 x 0.7 = 2.8 11.4

Catalysing industrial and commercial organic waste management

3 x 1 = 3 3 x 0.9 = 2.7 2 x 0.7 = 1.4 7.1

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Hints for project proposal writing

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Preparation of a detailed funding proposal

Planning steps and consideration

1. Identifying goal, objectives and expected results2. Identifying target group3. Content of the project4. Projects locations and time schedule of activities5. Resources6. Cost/Income sources7. Description of the implementing organisation and

partners8. Project team and management9. Monitoring, evaluation and follow-up

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Preparation of a detailed funding proposal

Conducting preparatory work

• Desk research• Consideration of studies/ publications with relevant

background information• Review past project proposals and evaluation reports• Consider “lessons learnt”• Check statistical data

• Field studies/ participatory process• Interview past and prospective beneficiaries• Consult experts• Conduct surveys and interviews• Hold community meetings or forums• Conduct thematic discussion with involved stakeholders

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Preparation of a detailed funding proposal

Key design elements (1)

• Proof project objectives’ compliance with: overalll framework conditionsnational climate adaptation/mitigation strategies and

regulationsobjectives of funding institutionfinancial volume of tendered project

• Hierarchy of goals/ logical frameworkGoal/ impact Global objectives of the Fund to which the project/ programme contributes

Objectives/ outcomes Purpose of the project/ programme and its componentsOutputs Intended results of activities per componentActivities Activities to achieve outputs

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Examples of successful proposals

Project compliance with national strategies and plans

Source: Proposal to Global Environment Facility (GEF)„Promoting Energy Efficiency for Non-HCFC Refrigeration and Air Conditioning, Indonesia”

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Examples of successful proposals

Logical framework example:

Source: Adaptation Fund proposal „Ecosystem Based Adaptation to Climate Change in Seychelles”

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Preparation of a detailed funding proposal

Key design elements (2)

• Activity/ work plan• Detailing activities, implementation time and

responsible party

• Monitoring framework and schedule• Defining baseline and indicators at outcome and output

level• Detailing source of verification of indicators, schedule

for data collection and budget breakdown for M&E measures

• Work breakdown structure – Gantt Chart• Visualising time frames for each work package/

component and inter-linkages of activities

• Resource Plan for Activities• Defining types, quantities and costs for resources

required per work package component and period of implementation

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Examples of successful proposals

Results Framework and Monitoring

Source: World Bank proposal: „Forest conservation and sustainability in the heart of the Colombian Amazon Project“

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Preparation of a detailed funding proposal

Key design elements (3)

• Project Justification

• How do activities contribute to climate resilience respectively climate change mitigation?

• How does the project/programme provide economic, social and environmental co-benefits, with a focus on most vulnerable groups

• How cost-effective are the proposed activities?

• How is learning and knowledge management considered to capture and disseminate lessons learned?

• To what extent has the sustainability of the project/programme outcomes been taken into account?

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Examples of successful proposals

Source: Adaptation Fund proposal „Building Resilience in the Greater uMngeni Catchment, South Africa”

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Ensuring long-term sustainability of projects

• Integrating climate change concerns into existing strategies, policies and budgetary processes

Mainstreaming

• Providing public co-funding to sustain project activities

• Incentivise private sector engagementCo-Financing

• Knowledge generation and dissemination• Improvement of management and other

capacities of involved parties

Capacity Development

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Project prioritisation exercise

Getting CLIF Ready

• What did you learn from this exercise?

• How would you evaluate the benefits of the Multi-Criteria Analysis (MCA) for the selection of priority adaptation and/or mitigation measures?

• How familiar are you with the preparation of detailed funding proposals and the respective requirements?

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Project prioritisation exercise

Checklist to get CLIF Ready

According to what you learned from this exercise you could …

Check with your institution about which criteria would be most relevant to prioritise projects in your country.

Consider a multi-stakeholder process in order to prioritise climate projects for implementation.

Check about an existing project pipeline and its potential for developing full proposals for international funding.