The aBi GREEN GROWTH STRATEGY2 The aBi Green Growth Strategy 2020/21-2025 This Document Was Prepared...

The aBi Green Growth Strategy 2020/21-20251

Fostering Sustainable and Equitable Growth of Uganda’s Agriculture and Agribusiness sector.

The aBi

GREEN GROWTH

STRATEGY 2020/21-2025

August 2020


This Document Was Prepared by Ben Busizori supervised by Peninah Kyarimpa, Francis

Chesang and Geoffrey Okidi. Invaluable review comments from various aBi staff members.

Graphics by Generation Graphix Ltd. aBi Social EnterpriseC


Uganda’s agriculture sector is highly dependent on natural capital and vulnerable

to environmental and climate changes. The sector faces deteriorating natural resources and is also experiencing increased seasonal changes that include higher temperatures, dry spells, and more erratic rainfall patterns. The changes are negatively impacting the well-being of Ugandans, especially the vast majority whose livelihoods are sourced from agriculture and agribusiness sector. Uganda is faced with persistently low resilience to disasters and economic shocks and slow economic growth due to its high dependence on rain-fed agriculture, over-reliance on biomass for household energy, and weak institutional capacity among other challenges. Future challenges relating to greater pressure on natural resources and climate change imply that a “business as usual” growth model is not a viable option.

It is against this background that aBi has developed a Green Growth (GG) strategy to ensure that all its interventions foster a pathway that supports smarter, more

sustainable, and equitable growth of Uganda’s agricultures and agribusiness sector. The aBi’s GG strategy places strong emphasis on the complementarities between the economic, social, and environmental dimensions of sustainable agriculture sector in Uganda. The GG Strategy has set out ambitions informed by a theory of change on how these will be achieved.

aBi’s GG model ensures alignment with the organisation’s current Business Plan (BP 2019-2023). The choice of GG strategic approach is supported with credible internal and external evidence. The GG strategy intends to explore new ideas/innovations and scale up piloted best practices. There is a renewed resolve to offer transformative opportunities to aBi implementing partners. The ambition is to advance green growth interventions while maximizing co-benefits for agriculture and agribusiness domain. This strategy has aimed at conveying information on GG planning, implementation, monitoring, evaluation and learning needs that are to be addressed by aBi fraternity.

Summary

DESCRIPTION

The aBi Green Growth Strategy 2020/21-20254 The aBi Green Growth Strategy 2020/21-20254

Social and Environmental Screening Category: Moderate• Complies with aBi ESG criteria • The GG strategy will ensure social equity

and equality• GG strategy is expected to have some short

term small to medium scale environmental impacts through Ecosystems based approaches, decarbonisation and building climate resilience, but will have signifi cant long-lasting environmental benefi ts.

Gender Marker: 2 (1, 2, or 3. a gender marker of 0=no noticeable contribution to gender equality, 1=contribute in some limited way, 2-signifi cant contribution, 3=Gender equality is a principle objective) - The GG strategy design has a focus

on gender sensitive planning and implementation particularly for women and for youth (younger women and men)

- Complies with social performance measurement (SPM) under aBi Finance

- Social isolation and poverty are considered; the GG strategy will work to improve the livelihoods more broadly through providing technology fi nancing and development capacity building (knowledge and skills) etc.

Bridging Period: Three (3) years (2020/21 – 2022) remaining BP yearsStart Date: September 2023

End Date: September 2025

Resources Bridging period (3 Years): US$1,217,500Estimated Total Resources for 5years:

US$3,532,000.

Targets Alignment

Contributing Outcome: Uganda Green Growth Development Strategy 2017/18 – 2030/31- An inclusive low emissions economic growth process that emphasizes effective and effi cient use of the country’s natural, human, and physical capital while ensuring that natural assets continue to provide for present and future generations.

aBi Vision: A competitive, profi table, and sustainable agriculture and agribusiness sector in support of equitable wealth creation in Uganda (BP, 2019-2023).

Objectives 1. Sustainable commodity production, productivity, and employment income for commercial

smallholder farmers.

2. Sustainable productivity, income, profi tability, and employment in value addition processes by agribusinesses. .

3. Access to fi nance for commercial smallholders and agribusinesses.

aBi GG Strategy Goal: Fostering Sustainable and Equitable Growth of Uganda’s Agriculture and Agribusiness sector.

Objectives/Result Areas:

1. Increase agriculture and agribusiness sector resilience to environmental and climate change shocks.

2. Enhance Green Technology Financing – increasing availability of long-term fi nance (Clean technology Fund) to support investments in result areas 1 and 3.

3. Support a green growth with less carbon footprint and waste– promoting effi cient and sustainable utilization of natural resources and waste management.


ABBREVIATIONSaBi Agricultural Business InitiativeALGs Agricultural Loans Guarantee Schemes.BP Business PlanCBA Community Based Organisation CCA Climate Change Adaptation CCD Climate Change DepartmentCER Certifi cate of Emissions ReductionDCED Donor Community for Enterprise DevelopmentDLOG District Local GovernmentEbA Ecosystems Based Adaptation ESG Environment, Social and Governance IssuesFAO Food and Agriculture OrganizationFG Farmer GroupFSD Financial Services DevelopmentFTE Full Time Employment EquivalentGG Green GrowthGGGI Global Green Growth InitiativeGHGs Green House GasesIP Implementing PartnerIPDM Integrated Pest and Disease ManagementISFM Integrated Soil Fertility ManagementMAAIF Ministry of Agriculture Animal Industry and FisheriesMEMD Ministry of Energy and Mineral DevelopmentMRM Monitoring Reporting and MeasurementMRV Monitoring Reporting and Verifi cationMWE Ministry of Water and EnvironmentNAMA Nationally Appropriate Mitigation ActionNAPA National Adaptation Programme ActionNDP National Development PlanNEMA National Environment Management AuthorityOECD Organization for Economic Co-operation and DevelopmentPMER Planning, Monitoring, Evaluation and ReportingPSFU Private Sector Foundation UgandaRBM Results-Based ManagementREA Rural Electrifi cation AgencySAFA Sustainability Assessment of Food and Agriculture systemsSDGs Sustainable Development GoalsSLM Sustainable Land ManagementSMART Specifi c, Measurable, Achievable, Relevant, Time-boundSRIs Socially Responsible InvestmentsSWOT Strengths, Weaknesses, Opportunities and ThreatsToC Theory of ChangeUGGDS Uganda Green Growth Development StrategyUNFCCC United Nations Framework Convention on Climate ChangeUSAID United States Agency for International DevelopmentVCA Vulnerability and Capacity AssessmentVCD Value Chain Development


Summary 3Abbreviations 51. INTRODUCTION 71.1 About aBi 71.2 Development Challenge and GG Context 81.2.1 Development Challenge: 81.2.2 The GG Context: 81.2.3 Policy Linkages 81.2.4 Linking to Private sector 101.2.5 Alignment with aBi -BP 2019-2023 112. THE STRATEGY 122.1. Technical Approach 122.1.1 Theory of Change and Results Chain 12Figure 1. ToC with Assumptions 12Figure 2: Results Chain 132.1.2 Assumptions 132.1.3 SWOT Analysis 132.2 aBi Motivation/ambition to address the Challenge: 152.3 Partnership/Stakeholder Engagement 163. RESULTS 173.1 GG Strategy Objectives 17OUTPUT 1: Increased Resilience. 17OUTPUT 2: Green Technology Financing 19OUTPUT 3: Green Growth with less Carbon footprint, Solid Waste and Wastewater 21Output 4: Monitoring, Evaluation and Learning (C4D and Adaptive Feedback) 233.2 Management 243.3 Sustainability and Scaling-up 253.4 Resources Required 264. GG STRATEGY RESULTS FRAMEWORK 27Annex 1: Glossary of Green Growth/Climate Change terms 32REFERENCES 35

Summary 3Abbreviations 51. INTRODUCTION 71.1 About aBi 71.2 Development Challenge and GG Context 81.2.1 Development Challenge: 81.2.2 The GG Context: 81.2.3 Policy Linkages 81.2.4 Linking to Private sector 101.2.5 Alignment with aBi -BP 2019-2023 112. THE STRATEGY 122.1. Technical Approach 122.1.1 Theory of Change and Results Chain 12Figure 1. ToC with Assumptions 12Figure 2: Results Chain 132.1.2 Assumptions 132.1.3 SWOT Analysis 132.2 aBi Motivation/ambition to address the Challenge: 152.3 Partnership/Stakeholder Engagement 163. RESULTS 173.1 GG Strategy Objectives 17OUTPUT 1: Increased Resilience. 17OUTPUT 2: Green Technology Financing 19OUTPUT 3: Green Growth with less Carbon footprint, Solid Waste and Wastewater 21Output 4: Monitoring, Evaluation and Learning (C4D and Adaptive Feedback) 233.2 Management 243.3 Sustainability and Scaling-up 253.4 Resources Required 264. GG STRATEGY RESULTS FRAMEWORK 27Annex 1: Glossary of Green Growth/Climate Change terms 32REFERENCES 35

TABLE OF CONTENTS


1.1 About aBi

The Agricultural Business Initiative is a social enterprise with the overall vision to contribute to ‘a competitive and

sustainable agriculture and agribusiness sector in Uganda in support of equitable wealth creation in Uganda’. aBi consists of two companies limited by guarantee – aBi Development Ltd (formerly the aBi Trust) and aBi Finance Ltd. The focus of aBi Development Ltd is to increase agricultural production and value addition by extending matching grants and Business Development Services (BDS) to agribusinesses, farmer organizations and intermediaries. The grants and BDS enhance planning and management, production and businesses infrastructure, and upstream and downstream market linkages of producers and agribusinesses. aBi Development targets six value chains (VCs): coffee, cereals, pulses, oil seeds, horticulture, and dairy. aBi Finance Ltd expands access to business fi nance for agricultural producers and agribusinesses by offering fi nancial institutions (FIs) certain fi nancial incentives and infrastructure that make lending to the agricultural sector more attractive and less risky. aBi was established by its founders in 2010 as an independent institution that would propel agribusiness development in Uganda on a sustainable basis, at scale and more reliably and effi ciently than can be realized by traditional development programmes.

Sustainability has been achieved by the fact that aBi is incorporated as two companies that are meant to exist in perpetuity. Scale has been achieved by offering diverse development partners a single competent platform to receive, manage, and deliver social impact from the agriculture and agribusiness development funds they entrust to aBi. This is creating economies of scale, management effi ciencies, and a more long-term and stable funding stream not disrupted by the project cycles of different development partners. aBi’s current Business Plan 2019/23 aims to improve the profi tability, income, and employment of Ugandan farmers and agribusinesses. aBi aims to channel appropriate funding and technical assistance to its implementing partners and smallholder farmers to increase access to fi nancial services, production and productivity, market integration, business performance, and sustainability. The business plan also looks at how aBi can improve its effi ciency and effectiveness.

1. INTRODUCTION


1.2 Development Challenge and GG Context 1.2.1 Development Challenge:

Agriculture currently accounts for 21.9 percent of Uganda’s Growth Domestic Product (GDP), and 85 percent of export earnings. Agriculture in Uganda employs 68 percent of the population, of which 80 percent are smallholder farmers relying heavily on subsistence farming (MAAIF, 2018). However, the sector is characterized by low levels of production and productivity, mainly driven by low adoption of improved agricultural production technologies and techniques, and declining soil fertility (UGGDS, 2017). The sector, however, is growing at a slow pace – way below its potential, with annual output growth at only 2% over the last five years. In comparison, East African Community members have seen annual output growth as high as 5%. Contrary, in that same period, Uganda’s population has grown at 3.3% per annum. Total factor productivity – which determines the efficiency and utilization of what is put into agriculture has been negative for the last 18 years (World Bank, 2018).

The pressures on natural resources, climate change and the recent economic crisis have highlighted the need for a greener model of growth. The agriculture sector in Uganda is experiencing climate change effects manifested through, frequent, intense, and prolonged dry spells, droughts, floods, increase in temperature and higher incidence of pests and diseases. This has resulted into shifts in farming seasons, which has led to crop and livestock losses, and ultimately contributed to the low agriculture performance. These effects are predicted to increase in magnitude and intensity, thus, further constraining agricultural production, productivity, and people’s livelihoods (GoU - Vision 2040). There are generally inconsequential investments in support towards green growth infrastructure, initiatives, and corresponding technologies due to, in part, limited capacity, limited capital investment and engagement of private sector (ibid.) In this scenario, sustainable agriculture and agribusiness sector will highly depend on green growth. There is a need to address supply side constraints. In particular, the relatively limited adoption and sustained use of GG agricultural

technologies is partly because technologies are not readily available in agricultural markets. Sourcing such inputs from distant markets can reduce the profitability and eventual duration of adoption.

1.2.2 The GG Context:

Green growth is a development paradigm shift in which green policies, innovation, and investments drive sustainable economic development. More broadly, green growth is an approach for achieving a number of simultaneous objectives to achieve true sustainable development: through avoiding and curbing greenhouse gas emissions, building resilience to climate extremes and longer term change, using resources more efficiently, and valuing the often economically invisible natural assets that have underpinned economic success over the centuries (GGGI, 2014). There is no common definition of green growth, however most organizations consider a framework for how they can achieve their business goals while they are decarbonizing, combating climate change and preventing costly environmental degradation and inefficient use of resources (OECD, 2011). The OECD that is the pioneer of GG has indicators organised around four main objectives: i) establishing a low carbon, resource efficient economy; ii) maintaining the natural asset base; iii) improving people’s quality of life; and iv) implementing appropriate policy measures and realizing the economic opportunities that green growth provides. The design of aBi GG strategy considers addressing the above OECD’s indicators wholly or partially depending on the prevailing operational environment in Uganda.

1.2.3 Policy Linkages

The aBi GGS supports actions that integrate and leverage interventions to ensure the greatest impact of agriculture and agribusiness sector strategies in Uganda. Activities will be integrated geographically through co-location, beneficiary targeting, and technical sector linkages. Policy linkages may happen at the same or different times, through joint implementation; beneficiary targeting; data sharing, common metrics,


and technical sector approaches; other strategies include social and behavioural change communication, marketing, and development communications.

Globally, agenda 2030 advances Planet, Prosperity, People, Peace and Partnership ideologies that are aligned with the three pillars (economic, social, and environmental) of sustainable development, Sustainable Development Goals (SDGs) and the National Determined Contributions (NDCs) to the Paris Agreement 2015.

At national level, Agriculture sector is a priority for the achievement of Uganda’s development targets as highlighted in the National Vision 2040. In recognition of the impact of climate change on the agricultural sector in Uganda, the GoU designed the Uganda Green Growth Development Strategy (UGGDS 2017/18 – 2030/31) to ensure that the goals and targets of the Uganda Vision 2040 and the National Development Plan II (NDPII) are achieved in a sustainable manner. Furthermore, the National Adaptation Plan for the Agriculture Sector (NAP-Ag) has been developed in tandem with the National Development Plan (NDP II) priority of strengthening ecologically sound agricultural research and climate change resilient technologies and practices. Additionally, the plan contributes to different government policies and planning frameworks, such as the National Climate Change Policy (2015) and the Agriculture Sector Strategic Plan (ASSP). Further, the Government of Uganda (GoU) has demonstrated a commitment towards the principles of green growth and sustainable development as espoused in various legal, policy and planning and institutional frameworks (NPA, 2015).


Table 1: Contribution to UGGDS objectives

UGGDS Objectives aBi GG strategy contribution to UGGDS objective

1. Accelerate economic growth and raise per capita income through targeted investments in priority sectors with the highest green growth multiplier effects.

Multifactor productivity (MFP) or total factor productivity (TFP), adjusted for the use of environmental services and natural resources.

Opportunities for new markets and jobs accruing from enhanced productivity through efficient use of natural assets and environmental services.

2. Achieve an inclusive economic growth with poverty reduction, improved human welfare and employment creation.

Availability of green technology and innovation that are important drivers of employment, growth, and productivity.

Agriculture and Agribusiness goods and services that reflect an important aspect of the economic opportunities, which arise in a greener economy.

aBi Green fund supports investment and financing that facilitate the uptake and dissemination of technology and knowledge and contribute to meeting the development and environmental objectives.

Education, training, and skills development. - Access to environmental services as clean water,

sanitation, green space

3. Ensure that the social and economic transition is achieved through a low carbon development pathway that safeguards the integrity of the environment and natural resources.

The availability and quality of renewable natural resource stocks including forest, and fish resources.

The availability and accessibility of non-renewable natural resource stocks

Biodiversity and ecosystems, including species and habitat diversity as well as the productivity of land and soil resources.

Carbon and energy productivity/economic growth output -reduction per unit of CO2 emitted or total primary energy supplied in the priority areas of agriculture and agribusiness sector.

- Resource productivity/economic growth output- reduction per unit of natural resources or materials used.

Ben Busizori (Author)

1.2.4 Linking to Private sector

The strategy also explores working in collaboration with potential private sector investors. It will support investments in GG technologies with multiple benefi ts to SMEs. Substantial investments will equally be made in facilitating linkages and capacities to sustain interventions. With increasing climate related hazards, there is increased risk in undermining

GG gains and investments made by the target IPs/communities and households. Throughout implementation, the GG strategy shall respond to and incorporate emerging, compatible, and sustainable innovations that promote transformative capacity of IPs and Partners. aBi will also leverage on the ongoing efforts in aBi Finance to identify and support Greentech under the clean technology fund.


1.2.5 Alignment with aBi -BP 2019-2023

The goal of the GG strategy is to deliver “Fostering Sustainable and Equitable Growth of Uganda’s Agriculture and Agribusiness sector’’. The strategy will take a pathway through enhancing resilience to environment and climate shocks, Greentech financing, promotion of clean energy and waste management, lessening carbon footprint and advancing innovation and effective institutional response systems, among others. This GG goal will contribute to the achievement of the aBi BP 2019-2023 VISION which is: ‘’a competitive, profitable, and sustainable agriculture and agribusiness sector in support of equitable wealth creation in Uganda’’.

The GG strategy is to ensure that aBi key stakeholders (agribusiness, farmers, investors, and markets) explore economic opportunities that green growth offers to strengthen their businesses and investments. For example, coffee producers, tap into high value, premium paying markets for “green” product. The GG strategy will also contribute to all aBi selected Socially Responsible Investment (SRI) principles of mitigating negative social and environmental impact of aBi activities. Given the remarkable progress made on green growth-related principles, the GG strategy builds on the 3 mutually reinforcing objectives of the aBi BP with a goal of delivering sustainable, and inclusive growth in agriculture and agribusiness sector. The strategy provides a basis for the kind of GG support that will be required to be successful in aBi’s social, economic, and environmental ambitions. The GG strategy complements aBi existing interventions by advancing the following; increasing resilience through strengthening the capacity of aBi implementing partners and beneficiaries to resist or recover from environment and climate change shocks, enhancing Greentech financing through increasing availability of long-term finance- anchored on aBi Clean Technology Fund) mainly for farm renovation, land restoration and climate smart agriculture, and promotion of GG with less carbon footprint through reduction of Greenhouse Gases (GHGs) emissions, efficient and sustainable utilization of natural resources.


2. THE STRATEGY2.1. Technical Approach

The GG strategy will support the implementation of the aBi business plan framework and significantly invest in

innovations to fast-track economic benefits that are offered by green growth investment. The GG strategy will implore business unusual approaches and utilize lessons from other efforts implemented within aBi fraternity and other agencies elsewhere using an integrated approach. The GG strategy design learnt and benefited from the situation analysis report, reviews of the various draft GG strategies; aBi business plan 2019-2023; Annual report 2018 and other sustainable development frameworks to identify priority areas for support.

2.1.1 Theory of Change and Results Chain

A theory of change (ToC) and results chain are provided for, and clearly indicate the integrated approach in the implementation that will ensure that the interventions deliver the minimum package of GG. ToC is based on the findings from the aBi GG situational analysis, recent research, and stakeholder engagements connected to

the BP 2019-2023. The ToC suggested for the strategy is a transformative approach to implement intervention in the following results areas

1. Increased environmental and climate resilience.

2. Advancement of green technology financing

3. Achieve less carbon and environmental footprint.

4. Enhance monitoring, evaluations and learning tools for dissemination and diffusion of GG ideas and technologies; social marketing and to encourage the shift from knowledge to continued practice.

The previously described development challenges in Section 1.2 will be addressed by implementing the theory of change with key stakeholders. Interventions are related to the market demand, new economic growth sectors, investment focus and Greentech budding in Uganda. It is acknowledged that there is great potential, but nor without challenges. Therefore, assumptions about the roles that will be played by IPs and other key aBi stakeholders have been included.

Figure 1. ToC with Assumptions

Source: Ben Busizori (Author)


Figure 2: Results Chain

Source: Ben Busizori (Author)

2.1.2 Assumptions

Realization of the outcome is hinged on the following assumptions:

1. IPs are enabled to access premium niche markets for their certified products.

2. Macro-economic and political environment permits reasonable return on GG investments and favourable conditions continue to prevail for donor and private funds to flow into GG transition processes.

3. Low costs of integrating clean production technology

4. Access to low cost agricultural inputs of good quality (crop varieties, animal breeds and sustainable green technologies).

5. Greentech and agriculture price stability at attractive levels above breakeven prices.

6. Controlled inflation. Shilling gains against foreign currency.

7. No outbreaks of new and uncontrolled pests and disease epidemics.

8. Increased financial support from FIs to GG interventions.

2.1.3 SWOT Analysis

Table 2 below analyses aBi organization's SWOT (strengths, weaknesses, opportunities, and threats) to help minimize risks, and to take the greatest possible advantage of chances for the GG strategy success.


Table 2: SWOT Analysis for aBi Institution and implementing partners

Strengths Opportunities Strong commitment from the board and staff

of aBi development limited and aBi finance to foster inclusive green.

Network of IPs in VCD willing to support greening of their business portfolios.

Availability of competent and committed human resources at aBi development/finance to drive the greening agenda and Socially Responsible Investment principles.

Availability of customized value chain financing models including clean technology financing mechanisms by IPs of aBi Finance limited.

Most of the production in the value chains is natural resource driven with high potential for recycling and embracing the concept of circularity (completing the loop).

Supportive policy operational environment – Government of Uganda promotes green growth (UGGDS, 2017), (NDPIII), Agricultural Sector Strategic Plan.

Existence of premium niche markets for some of the commodities like specialty coffees, fruits, and vegetables.

Domestic and regional demand for agricultural products.

Opportunities for brokering public-private partnerships to drive the value chains.

GG research, innovations, and technologies exist in local research institutions and the National Agricultural Research Systems.

Weaknesses Threats Low level of knowledge and skills by SMEs to

invest in GG technologies. Inadequate GG market information in

Uganda. Low level of technology adoption by

smallholder farmers and other actors in the value chains due to low productivity and profitability.

Low productivity levels for smallholder farmers and lower efficiency in the attendant processing SMEs.

Low levels of investment in the value chains by the Implementing partners. IPs are expected to play the roles of lead firms in these value chains.

Subsistence orientation of smallholder farmers. Scale of operation and scattered nature of the farm plots limits meaningful investment.

Lack of off-farm and agro-industries to support the farm sector.

Changing climatic patterns that drastically affect rain-fed agricultural production.

Barriers of entry into some of the world lucrative markets

Competition from other agricultural exporting countries.

Weak infrastructure (roads, markets) in some areas that make markets inaccessible.

Natural calamities like floods, landslides, and other human induced conflicts in some areas of Uganda.

Low levels of financial inclusion rates, especially in the rural areas. This is due to limited bank branch networks.

Source; Ben Busizori (Author) -Modifi ed from aBi -GG strategy situational analysis 2019


2.2 aBi Motivation/ambition to address the Challenge:

The GG Strategy has set out the following ambitions informed by a theory of change on how these will be achieved. These ambitions explain how and why the strategy recommendations are the most appropriate pathway approaches to address GG challenge.

Ambition 1: Focus on aBi Business Objectives. In principle, aBi GG strategy will provide guidance with distinct focus on the organization’s business priorities. The strategy reflects how it enhances the aBi’s existing strategic objectives and

interventions. Key focus is on greening aBi’s mandate of supporting sustainable and equity growth in agriculture and agribusiness sectors in Uganda. Therefore, the strategy does not give much emphasis on addressing the GG bigger goals such as general policy measures and governance issues in Uganda.

Ambition 2: Economic and Equitable Opportunities: The strategy shall incentivize aBi implementing

partners by bringing out the economic opportunities that green growth provides. In practice aBi GG strategy will invest in green infrastructure that goes beyond protection of

natural capital to attracting new investments or new businesses and inspires new business models. Well- functioning input and output markets and effective mechanisms for enforcing contracts and compensating expropriation are also critical to attract further investment in agriculture.

Ambition 3: Environmental and Climate Resilience: The strategy intends to further enable aBi and implementing partners to commit to climate change resilience building while

reducing the environmental footprint to the greatest extent possible. The GG strategy will assist aBi to take decisive actions to decarbonize, lower greenhouse gas emissions, be energy efficient across facilities and operations, transition to cleaner energy and improve waste management systems (in a manner that sustains or enhances the quality of air, water, soil, plant, animal, and energy resources), and inspire sustainable use of natural resources among others.

Ambition 4: Social Equity: aBi cannot be deemed green without being equitable. A green aBi, therefore is one that will continue adhering to ‘’Do No Harm’’ principles, have human capital element at the center while safeguarding other capitals such as social, natural, physical, and financial capitals. The strategy outlines strategies to increase shared equity in farm profits and mentoring VCD IPs/farmers to efficiently operate their own farms and working on innovative ways to provide affordable Greentech as alternative ways to increase labor equity and social justice. Human capital takes the form of training, skills, and knowledge that translate into capacity to implement GG interventions. Agroecosystems cannot be sustainable in the long run without the knowledge, technical competence, and skilled labor needed to manage them effectively. Sustaining aBi GG strategy requires a diverse and adaptive knowledge base, utilizing both formal, experimental science and farmers' own on-the-ground local knowledge. The GG strategy will promote education of both farmers and private sector agribusiness, encourage innovation, and promote farmer-researcher partnerships that can increase agricultural productivity as well as long-term sustainability.Through implementation aBi seeks to define a business pathway that is consistent with


human capital, long-run environmental protection, using natural resources within their carrying capacity, while providing acceptable living standards and poverty reduction measures. This GG strategy is also a pathway method to increase collective knowledge about how aBi interventions will continue to advance green growth ideals. It will be a way for aBi and partners to measure progress and learn from experience. Most importantly, it will be a step towards reframing growth to better manage natural assets and those environmental risks that would otherwise undermine agriculture and agribusiness sectors in Uganda. Gender integration in the strategy implementation is very vital to achieve equality, equity, and empowerment

of all the groups of people to be targeted. Smallholder farmers especially women are among the most vulnerable to environmental and climate-induced shocks. In Ugandan agriculture and agribusiness sector, climate change is likely to reinforce underlying inequalities. The country faces higher poverty levels amongst female-headed households. The target benefi ciaries for tangible agro-ecosystems management and resilience/ adaptation activities will be identifi ed during the strategy implementation process. The equitable participation of women, men and youth is necessary to maximize GG co-benefi ts while promoting gender equity and equality for maximum sustainability.

2.3 Partnership/Stakeholder Engagement

aBi will work very closely with various stakeholders and each stakeholder will play a role in achieving the objectives of the GG strategy.

Stakeholder Role in the programme aBi IPs

Will be the Implementing Partners for the GG strategy, as such will be accountable for some results. Will also be responsible for monitoring and coordination of strategy implementation

Government Departments

Ministry of Agriculture

The Ministry of Agriculture will be a collaborator/beneficiary and their Sector Wide Approach (SWAp) is one of the aspects for CSA technologies

Ministry of water and Environment

Climate Change mitigation and adaptation policy issues CDM -DNA-carbon issues Agriculture ecosystems management linkages Etc

Private sector Financial institutions, MSMEs, agriculture input trade entities. NGOs/CSOs A variety of these will be involved in the farmer education,

supporting the implementation of tangible activities, depending on the needs identified and the relative strengths.

Table 3: Stakeholder Engagement Matrix

Ben Busizori (Author)


3. RESULTS 3.1 GG Strategy Objectives

The overarching ambition of aBi’s Green Growth Strategy is to ensure all aBi interventions foster a green growth pathway that promotes sustainable livelihoods and healthy natural ecosystems in Uganda’s agriculture and agribusiness sector. The green growth strategy

focuses on 3 objectives.1. To increase environmental and climate resilience of aBi, implementing partners and

beneficiaries.2. To enhance green technology financing for agriculture and agribusiness sector in Uganda. 3. To promote green growth with less environmental and carbon footprint.

The above objectives are translated into outputs /result areas that are connected to the BP 2019-2023. The outputs level results are expected to occur because of behavioural changes from aBi secretariat, IPs and partners in adopting environmental and climate-resilient, sustainable, and low-net-carbon techniques and technologies throughout the agricultural value chains. The outputs are key pillars for achieving the GG goal that will eventually contribute to the achievement of the aBi BP 2019-2023 outcome. The outputs /result areas are as follows:

OUTPUT 1: Increased Resilience.

Increased Resilience - strengthening the capacity of aBi implementing partners and beneficiaries to resist or recover from environment and climate change shocks.As presented in the development challenge subsection 1.2, effects of environmental and climate change on crop and livestock are already having negative effects on agricultural performance, food security, and poverty in Uganda (NAP-Ag, 2018). Resilience can be boosted by strengthening three different types of capacities:

Figure 3: Resilience framework

Source: Ben Busizori (Author) - modified from OECD 2014- Guidelines for Resilience Systems Analysis


1. Absorptive capacity: The ability of a system to prepare for, mitigate or prevent negative impacts, using predetermined coping responses to preserve and restore essential basic structures and functions. This includes coping mechanisms used during periods of shock. Examples of absorptive capacity include early harvest.

2. Adaptive capacity: The ability of a system to adjust, modify or change its characteristics and actions to moderate potential future damage and to take advantage of opportunities, so that it can continue to operate without major qualitative changes in function or structural identity. Examples of adaptive capacity include diversification of livelihoods, involvement of the private sector in delivering basic services, and introducing drought resistant seed.

3. Transformative capacity: The ability to create a fundamentally new system so that the shock will no longer have any impact. This can be necessary when ecological, economic, or social structures make the existing system untenable. Examples of transformative capacity include the introduction of new technologies, and incentivizing actions to build resilience.

Pathway/Approach: There is high degradation of natural resources in Uganda that calls for prioritization of Ecosystem-based Adaptation

(EbA) pathway method. EbA is a nature-based solution that harnesses biodiversity and ecosystem services to reduce vulnerability

and build resilience to climate change. EbA interventions also provides biodiversity conservation and other human well-being co-benefits, including habitat for food species, non-timber forest products for household use, carbon sequestration for climate mitigation and pollination for agricultural productivity. EbA promotes Climate Smart Agriculture (CSA) and Sustainable Land Management (SLM) that will help increase agriculture production without further depleting soil and water resources. CSA technologies can generate both private and public benefits and thus constitute a potentially important means of GG strategy generating “win-win” solutions to addressing agriculture and agribusiness environmental issues. In terms of private benefits to the farmers, EbA can generate productivity increases, cost decreases and higher stability of production. EbA approaches place emphasis on using participatory and inclusive processes and stakeholder engagement. Involvement of private sector stakeholders is significant.

Box 1: Successes and learnings; Uganda, Peru and Nepal Case The Ecosystem-Based Adaptation in Mountain Ecosystems Project (MEbA Project) The MEbA Project was created as a response to climate change and carried out in Uganda, Peru and Nepal between 2011 and 2015, with funding from the German government. In Uganda, sites comprised the montane grasslands and shrublands of the Mount Elgon region, in the districts of Kapchorwa, Kween, Sironko and Bulambuli. Approximately 582,400 people live in these four districts, the population is entirely rural and dependant on subsistence agriculture. Key project partner institutions at this site included: United Nations Development Programme, United Nations Environment Programme, International Union for Conservation of Nature, and the Ugandan Ministry of Water and Environment.https://pubs.iied.org/pdfs/17438IIED.pdf

Activities/Strategies.

1. Conduct Environmental/Climate risk Cost Benefit Analysis (CBA) rapid appraisal of aBi supported major value chains. Identify a wide range of ecosystem management activities (Make up to 4 green business and job cases) to increase the

1OECD (2014). Guidelines for Resilience Systems Analysis: How to Analyse Risk and Build a Roadmap to Resilience. OECD Publishing: Paris, France.2The EbA was coined at the UNFCCC COP 14 in Poznan in 2008 and since then has successfully been promoted into broader adaptation negotiations, policies, strategies and action plans.


resilience and reduce the vulnerability of people and the environment to climate change. Show resilience /EbA prospects that improve aBi, IPs and partners businesses and investments.2. Facilitate IPs to develop and implement transformative resilience action plan (business case) for green growth strategy to strengthen aBi IPs and partners businesses and investments.3. CSA interventions and matching grant funding to the private sector, small- and medium-sized enterprises (SMEs), and farmer cooperatives (include plant varieties and animal breeds technologies -adoption of drought-tolerant, disease- and persistent, and fast-maturing, animal breeds and plant varieties).4. Deliver capacity and skills building of IPs in various ecosystem-based adaptation technologies/measures such as integrated land use planning, ecosystems restoration, pasture, water and soil management practices and technologies. 5. Promote nature-based enterprises by incentivising private sector investments in production, processing, and marketing of high-quality products.6. Behavioural change communication - develop tailored messages and approaches using a variety of communication channels to develop resilience positive behaviours among SMEs farmers and private sector business.

Key Performance Indicators

Low targeting = less than 10% to, Moderate targeting =30% to 50% compliance, high targeting =above 50% to 75% compliance, full targeting =100% compliance (based on experience in GG implementation) - Over 70% of SMEs, VCD IPs have developed

and implemented adaptation action plans/strategies by end 2025.

- By end of 2025, over 300,000 smallholder farmers have increased productive capacity and income by 25%.

- By 2025, 50% of beneficiary farmers adopt and apply at least 3 CSA and environmental practices because of aBi intervention.

- Improved business performance for 30 agribusiness SMEs and 20 FOs/cooperatives (at least 25% are managed by women and/or youth) for climate-proof value chains.

- Climate resilient sustainable agriculture production practiced on 600,000 hectares

- CSA technology adoption rate has risen from 35% (AAS 2018) to at least 65% by 2023.

- By 2023, 75% of aBi VCD IPs are aware of key Greentech market information

- By 2025, 10,000 of smallholder producers apply integrated climate smart water management to improve their access to water and/or efficient water use.

- 4 of EbA measures implemented to promote the economic use of ecosystems and biodiversity by 2025.

- By end of strategy timeframe, there is reduction in agro-chemical pollution by 30% through soil testing.

- By 2025, 70% of target farmers are integrating tree planting and other environmental conservation practices.

- 30% of beneficiary farmers that receive premium prices because of meeting premium market requirements.

- 100% additional beneficiary agribusinesses that meet aBi’s environmental, social and governance standards by 2025

OUTPUT 2: Green Technology Financing

Increasing availability of long-term finance (Clean technology Fund) mainly for farm renovation, land restoration and climate smart agriculture to support investments in focal areas-Output 1 and 3.

Access to Greentech finance continues to be a major obstacle to greening agriculture and agribusiness sector in Uganda (UGGDS, 2017). The alternative financing routes such as co-development partnership, lease back and build and sell structures will need to be studied with their advantages and disadvantages. The potential of using Clean Development mechanisms (CDM)/carbon credit in financing the green interventions especially the renewable energy and the use of energy efficiency means as alternative financing route is also emphasized. Green technology development will continue to be attached to the current aBi Finance architecture. This GG strategy is anchored on BP 2019-2023 financial tools and instruments to expand financial penetration in the agricultural and agribusiness sectors.


Pathway/ Approach: Greentech fi nancing is anchored on aBi’s existing clean technology fund model focusing on the adoption of energy- and resource-effi cient technologies and practices. Greentech fi nancing will explore enormous potential for innovation to transform agriculture, bringing jobs and strengthening productivity and profi tability. Focus areas include; Energy - effi ciency can be achieved through the use effi ciently produced fuels (e.g. charcoal production that minimizes heat loss during the baking of fuelwood), energy-effi cient machinery (e.g. milling machines), and energy-effi cient practices (e.g. turning machines off when not in use). The same principle applies to the use of all other resources, including water (e.g. water-effi cient wet mills and washing stations), agro-inputs (e.g. precise planting and application of fertilizer rather than scattering), and others. Clean energy technologies: While Uganda’s grid electricity comes almost entirely from hydro-power, which is a low carbon source, many fi rms and farms – including most of aBi’s existing implementing partners - resort to petrol- or diesel-powered backup generators during frequent power outages (aBi, 2019). The strategy will explore fi nancing alternatives with locally generated power using solar panels or biogas. Solar-powered energy kiosks can effi ciently provide solar power as a service across critical

nodes in the value chain. Charcoal production can also be done in a considerably more carbon effi cient manner through more effi cient processes that convert a higher proportion of the wood used into charcoal and with less heat loss. The situational analysis (aBi, 2019) carried out for this strategy found that an estimated 50% of aBi IPs were employing low-carbon or effi cient energy solutions through the use of effi cient appliances such as inverters, solar kits, energy saving bulbs, etc. and an estimated 30% of farmers were using fuel saving stoves and solar energy for lighting and cooking. For example, Kyagalanyi and Delight Uganda were using solar and Farm Africa used power inverter.

Box 2: Successes and learnings; Uganda, Bolivia and India Uganda: YICE Uganda: Improving access to training, funding, and markets for rural farmers Bolivia: Building Transformative Institutional Adaptive Capacity. Climate Investment Funds JANUARY 2020. This report assesses the potential contribution of the Pilot Program for Climate Resilience for building a climate resilient water governance framework in the Plurinational State of BoliviaIndia: From Banks to Capital Markets Alternative Investment funds as a potential pathway for refi nancing clean energy debt in India.PNG This study looks at various avenues for renewable energy to access capital markets. https://www.greengrowthknowledge.org/case-studies/


Activities/Strategies

1. Carbon reduction and offset financing. - conduct a feasibility assessment that contains a business plan, an operating guide (operating goals, management and marketing strategies and a risk management assessment, with financial projection), for IPs’ project-based model carbon trade - especially with coffee IPs).

2. Enhancement of the LoC for clean technology - review and work with finance team to develop a portfolio intervention for supporting.

3. Promotion of Diesel/Petrol alternatives with locally generated power using solar panels or biogas.

4. Assess where the emission hotspots are in their aBi supply chain and identify energy efficiency and cost reduction opportunities.


- aBi LoC reserved for clean technology investments reviewed and increased from 7% to at least 10% by the end of the year 2025.

- Carbon trade project business with an estimated minimum total upfront investment in base year of $200,000 for long-term target VERs or CERs or that is over 600,000 tons of carbon emission reductions by 2025 and beyond.

- The LoC instrument generate over 16,000 loans used for clean technology investments, such as biogas, water harvesting system installations, solar powered domestic and irrigation systems, organic manure access and the like.

- 50% of SMEs producers applying value addition using Greentech geared to raising the profitability of their agriculture production by of 2025.

- 85 % of SMEs are eligible to obtain a Greentech business loan by 2025.

- By 2025, there is 30% increase in private sector investments in agriculture and agribusiness Greentech,

- By 2025, the ratio of women and youths in the user groups in the intervention areas for implementing CSA measures has risen to 50% and there is evidence of their active involvement in decision-making and planning.

OUTPUT 3: Green Growth with less Carbon footprint, Solid Waste and Wastewater

This output will focus on establishment of carbon reduction and offset mechanisms, solid waste and wastewater management, treatment, and reduction, as well as processing recyclable materials.

Pathway/Approach: Carbon reduction and offset: The GG strategy decarbonisation targets set out a transition to a low carbon business. This will go beyond aBi office standalone carbon neutral aims, and to ensure that all IPs supported activities are mindful of low carbon and other social, economic and environmental issues. aBi will offset Scope 1 &2 carbon footprints and get awarded Carbon Neutral Certification label by 2022. Scope 1 carbon footprint includes all direct emissions from the activities of aBi under its control including fuel use, fleet vehicles and air-conditioning leaks etc) while Scope 2 is indirect emissions for example, from electricity purchased and used by the aBi (Emissions are created during the production of the energy and eventually used by the aBi). There will also be an effort to reduce and offset. Scope 3 carbon footprint that include all Other Indirect Emissions from activities of aBi occurring from sources that aBi does not own or control. These are usually the greatest share of the carbon footprint, covering emissions associated with business travel, procurement, waste, and water. aBi will positively engage suppliers and IPs and assist them to implement sustainability initiatives. aBi will also positively engage with employees to reduce emissions from business travel and employee private commuting.

Clean energy: The adoption of low-carbon energy sources. Throughout the value chain, switching to low carbon energy sources can reduce the overall carbon footprint of the agricultural sector. Energy is used in the form of biomass (for process heating), electricity (mainly for powering machinery), and liquid fuels (for powering vehicles, heating, and generators). Alternative clean fuels and power sources include briquettes (for process heating), biogas for process heating and small-scale power generation), and hydro and solar for power generation.


Waste management: Facilitate IPs to develop, enhance and implement Agricultural Waste Management System (AWMS) plan of action that include necessary components (Production, collection, transfer, storage, treatment and utilization) to control and use by-products of agricultural production in a manner that sustains or enhances the quality of air, water, soil, plant, animal, and energy resource

Box 3: Success and learning – Uganda, Kenya and India Uganda: Improved cook stove -greenhouse gas (CO2) savings generating premium carbon credits certifi ed under the Gold Standard. http://impactcarbon.org/where-we-work/uganda-online directory -public, private, and non-profi t partners in carbon trading in Uganda https://www.cleancookingalliance.org/country-profiles/focus-countries/8-uganda.htmlUganda: Municipal Waste Compost Programme - NEMA: Low-carbon development in sub-Saharan Africa 20 cross-sector transitions James Ryan Hogarth, Caroline Haywood and Shelagh Whitley Report October 2015https://www.odi.org/sites/odi.org.uk/fi les/odi-assets/publications-opinion-fi les/9878.pdfKenya: Clean cookstoves & fuels: A Catalog of Carbon Offset Projects and Advisory Service Providers: https://www.cleancookingalliance.org/binary-data/RESOURCE/fi le/000/000/381-1.pdfAsian: Mobilizing Private Capital and Know-How to Turn Waste into Energy: Asian Development Bank (ADB) MARCH 2020. This case study explores how public-private partnerships can help make clean technologies for turning waste into energy accessible to cities. https://www.greengrowthknowledge.org/case-studies/

Activities/Strategies

1. Facilitate aBi and key IPs to deliver carbon neutrality in business operations, products and/or activities. Carbon neutrality will be achieved by calculating a carbon footprint and reducing it to zero through a combination of effi ciency measures in-house and supporting external emission reduction projects e.g. cookstove promotion.

2. Conduct a rapid feasibility assessment to identify a range of different carbon offset investments with associated costs and benefi ts.

3. Facilitate IPs to develop, enhance and implement Agricultural Waste Management System (AWMS) plan of action that includes necessary waste management components such as Production, collection, transfer, storage, treatment, and utilization.

4. Support investments to increase utilization of bio-waste5. Support increased adoption and use of clean

production technologies


6. Engage IPs to implement GG initiatives that improve energy efficiency of their products.

7. Positively engage with IPs employees to reduce emissions from business travel and employee commuting.

8. Enhance communication for behavioural change –for skills and knowledge in carbon

footprint, Solid Waste and Wastewater


- aBi offsets Scope 1 &2 carbon footprints get awarded Carbon Neutral Certification label by 2022.

- aBi works with IPs to reduce and offset scope 3 carbon footprint by 2025.

- 50% of aBi major IPs achieve carbon neutral certification by 2025

- Support investments to utilize bio-waste has increased by 5% in the year 2025

- By end of 2025, at least 60% of agriculture waste produced by VCD IP, SMEs is treated and utilised

Output 4: Monitoring, Evaluation and Learning (C4D and Adaptive Feedback) Promote monitoring, evaluations and learning tools for dissemination and diffusion of GG ideas, technologies, social marketing and to encourage the shift from knowledge to continued practice.GG strategy must be committed to operational and programmatic excellence that demands continuous improvement in aBi’s ability to document, analyze and apply learning. This output will aid sharing of reflections with GG stakeholders, GG practitioners and GG policymakers in Uganda. The strategy will invest in monitoring, evaluation, accountability and learning to improve ability to use effective feedback mechanisms and ensure greater accountability to beneficiaries. This output will also systematically measure GG results and incorporate best practices for sustainability.

Pathway/Approach: Monitoring and evaluation will be conducted in accordance with established aBi procedures and will be provided by the GG technical team. The Results Framework provides performance and impact indicators for implementation along with their

corresponding means of verification. M&E plan will be required to include inception process, GG strategy implementation reviews, quarterly and annual reviews, an independent mid-term review and an independent final evaluation. Progress made shall be monitored and reported by the aBi strategy implementing manager. The submission of these reports will have to be cleared by relevant authorities at aBi.

Strategies/activities

1. Annual Review/Implementation Reports: This key report is prepared to monitor progress made on annual basis. Report on progress made toward GG strategy objective and outcomes - each with indicators, baseline data and end-of-implementation targets (cumulative); Project outputs delivered (annual); Lesson learned/good practice; AWP and other expenditure reports; Risk and adaptive management;

2. Periodic Monitoring through IPs site visits: aBi will conduct visits to GG strategy IPs sites based on the agreed schedule in Annual Work Plans to assess first-hand progress.

3. Mid-term of project cycle: it is important for the strategy to undergo an independent Mid-Term Evaluation at the mid-point of implementation: The Mid-Term Evaluation will determine progress being made toward the achievement of outcomes and will identify course correction if needed. It will focus on the effectiveness, efficiency, and timeliness of implementation; will highlight issues requiring decisions and actions; and will present initial lessons learned about GG strategy design, implementation, and management. Findings of this review will be incorporated as recommendations for enhanced implementation during the final half.

4. End of Project: An independent Final Terminal Evaluation will need to take place three months prior to the final Project Board meeting and will be undertaken in accordance with aBi SoPs guidance. The final evaluation will focus on the delivery of the strategy’s results as initially planned (and as corrected after the mid-term evaluation, if any such correction took place). The final evaluation will look at impact and sustainability of


results, including the contribution to capacity development and the achievement of all GG benefi ts/goals. The Final Terminal Evaluation should also provide recommendations for follow-up activities and requires a management response.

5. Learning and knowledge sharing: aBi will identify, analyze, and share lessons learned that might be benefi cial in the design and implementation of similar future interventions. Finally, there will be a two-way flow of information between GG strategy and other projects of a similar focus.

6. Communications and visibility requirements: Full compliance is required with aBi’s Branding Guidelines. The guidelines should describe other aBi promotional requirements regarding press releases, press conferences, press visits, visits by offi cials, productions, and other promotional items. Where aBi has provided support to IPs through co-fi nancing, its branding policies and requirements should be similarly applied.

Key Performance Indicators - at least 4 quarterly monitoring meetings and

fi eld visits conducted per year.- 1 sharing platform organised annually - at least 1 published IEC material eg a

newsletter. - At least 3 project activities are publicized

annually. - 4 reports on project progress shared annually - 2 social media marketing short videos and

notes produced and disseminated annually.- 1 midterm review.

3.2 Management

The GG strategy builds on existing partnerships and aBi programmes. This strategy will be executed through adhering to aBi’s implementation modalities which may include direct implementation modality or support to implementing partners. It is suggested that aBi establishes a GG task team from staff to lead coordination and implementation of this strategy as follows.

At board level the GG issues should under a specifi c board subcommittee which will be overseeing the implementation. The board will provide overall guidance and direction to the GG strategy ensuring it remains within the specifi ed constraints and requirements of aBi.At management level, GG Task Team formed will have representation from: corporate services, communication, aBi fi nance, VCD and M&E. There will be a GG manager who will a secretary to the Task Team.

The GG Task Team will be responsible for making consensus management decisions when direction is needed including recommendations for change in implementation direction. The team may perform the following tasks. - Address programme issues as raised by

aBi board, IPs, benefi ciaries, and other stakeholders.

- Provide guidance on the GG programme risks and agree on possible countermeasures and management actions to address the specifi c risks


- Monitor and control progress - Review GG strategy implementation progress and provide direction and recommendations to ensure that the agreed deliverables are produced satisfactorily according to plans.

- Lead development of annual work plans together with implementing partners

Major Risk Type Description Expected impact

and Probability (Scale from 1 (low) to 5 (high)

Mitigation Actions

Inadequate GG skilled or experienced human resources at aBi/IPs.

Organisational and operational

GG is a new area that requires relevant competencies and skills

Probability: 3 Impact: 5

-Identify ways of filling capacity gaps -eg staff orientation through trainings -Recruit GG specialized staff.

Stakeholders may not be willing or lack capacity to take part.

Organisational and operational

- Nonparticipation of some stakeholders might be due lack of technical and financial capacities that can jeopardize GG strategy implementation. - Few donors for GG interventions.


- Stakeholder engagement plan matrix has been drafted to define roles and responsibilities. - GG strategy advances capacity building and financial assistance tools. - scale up resource mobilization. - outreach campaign for behavioral change.

Low Greentech adoption in Uganda.

Technical &Technological

There is low adoption of Greentech in agriculture and agribusiness sector due to market demand & supply issues, knowledge& skills, and financial challenges


- Greentech market surveys. - Capacity building for IPs to adopt Greentech. - enhance market access information. - strengthen the aBi clean technology fund

Climate shocks and hazards

Environmental - Seasonal changes & Bad weather can affect, pest and disease can affect implementation of some activities that are seasonal in nature


- Sensitize beneficiaries to complement their work in anticipating and mitigating environmental risks. - share climate risk information especially with SMEs and Smallholder family farmers

External driving forces

Political and socio-economic

such as pandemics (eg CIVID19), inflation, currency exchange, National and International politics, and conflicts.


-do price forecasts -conflict and pandemics predictions

3.3 GG Strategy Risk Management

Designing of the GG strategy was aware that implementation failure can be caused by risks to which no or too little attention has been paid. A risk is anything that could potentially impact the GG strategy’s timeline, performance, or resources. Risks are potentialities, and in this GG strategy context, if they become realities, they need to be classifi ed as “issues” that must be addressed. The risks, assumptions and mitigation actions have been described in the following table 4.


Risk Management includes the following Steps:

- Risk Management Planning: The GG management team working with aBi board will further define how risk management will be done, who will be involved (roles and responsibilities), processes, and activities to be conducted.

- Risk Identification: The GG management team working with aBi board will identify more risks and opportunities that affect the GG strategy or individual work packages/activities. A list of all potential risks will be development to complement what has been created in table 4.

- Risk Analysis (qualitative/quantitative): the management will analyze risks and determine which risks are further tracked. For these risks, determine impact (positive/negative) and probability qualitatively.

- Risk Response Planning: management will define actions for each risk to reduce the probability and/or impact of risks or to increase probability and/or impact of opportunities. The actions are then implemented.

- Monitoring and Control: management will implement risk response plans. Monitor and assess initiated actions and risks periodically. If necessary, adjust actions or define new actions. Perform risk reviews.

Communication: GG management team and aBi board will communicate periodically, internally, and externally, existing, and new risks and other risk management activities.

3.4 Sustainability and Scaling-up

Sustainability of results will be assured by dedicating resources to building and strengthening capacities of aBi internal-capacities, IPs institutions in the target to integrate GG into existing interventions and use of established monitoring systems for tracking impact. The GG strategy is to ensure that all IPs have set appropriate mechanisms to maintain innovations and investments made in GG. Market-based opportunities for long-term support of sustainable GG actions will also be pursued. There will be an effort for farmers to access niche markets eg facilitating certification.

The formed GG institutional architecture will facilitate partnerships with other stakeholders or sectors. There is existing clean technology financing that the GG strategy is anchored on. Capacity development and empowerment of the target beneficiaries and their communities in developing their GG plans and providing training and support for the implementation of those plans will build up sustainable model capitals - natural, human, financial, physical, and social. By end of 2025, the IPs will have implemented carbon trading.

3.5 Resources Required

To successfully implement and achieve strategy interventions and the outcome, the bridging period (remaining period in the implementation of PB 2020/2023) needs an estimated amount of USD 1,217,500 but projected total budget for the 5 years is USD 3,532,000. The implementation and delivery of the programme will require services from consultants and aBi in the form of technical expertise, procurement, and human resources. Details are provided in the programme budget.


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Annex 1: Glossary of Green Growth/Climate Change terms Annex 1: Glossary of Green Growth/Climate Change terms Annex 1: Glossary of Green Growth/Climate Change terms1

Absorptive capacity: The ability of a system to prepare for, mitigate or prevent negative impacts, using predetermined coping responses to preserve and restore essential basic structures and functions. This includes coping mechanisms used during periods of shock. Examples of absorptive capacity include early harvest.

Adaptation Benefits: The avoided damage costs or the accrued benefits following the adoption and implementation of adaptation measures. (IPCC TAR, 2001 a)

Adaptation Costs Costs of planning, preparing for, facilitating, and implementing adaptation measures, including transition costs. (IPCC TAR, 2001 a)

Adaptation Deficit Difference between the beneficiaries’ status and the status appropriate to a changing climate is due to broader unmet development needs.

Adaptation Gap Characterized as the difference between the actual level of adaptation and the level required to achieve a societal goal

Adaptation: “…a process by which strategies to moderate, cope with and take advantage of the consequences of climatic events are enhanced, developed, and implemented” (UNDP, 2005 “Adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. Various types of adaptation can be distinguished, including anticipatory, autonomous and planned adaptation” (IPCC 4AR, 2007)

Adaptative Capacity The ability of a system to adjust to climate change (including climate variability and extremes), to moderate potential damages, to take advantage of opportunities, or to cope with the consequences. (IPCC TAR, 2001 a)

Carbon Credit: A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e). Carbon credits and carbon markets are a component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs). One carbon credit is equal to one tonne of carbon dioxide, or in some markets, carbon dioxide equivalent gases. Carbon trading is an application of an emissions trading approach. Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources.

Carbon Dioxide Equivalent (CO2 eq): A metric measure used to compare the emissions from various greenhouse gases based upon their global warming potential (GWP). Carbon dioxide equivalents are commonly expressed as mega tons (millions of tons) of carbon dioxide equivalents.

Carbon neutral: Carbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon dioxide emissions by balancing carbon emissions with carbon removal (often through carbon offsetting) or simply eliminating carbon emissions altogether. Carbon Neutral is a term used to describe the state of an entity (such as a company or an organization), where the carbon emissions caused by them have been balanced out by funding an equivalent amount of carbon savings elsewhere in the world.

Carbon Sequestration: Terrestrial, or biologic, carbon sequestration is the process by which trees and plants absorb carbon dioxide, release the oxygen, and store the carbon. Geologic sequestration is one step in the process of carbon capture and sequestration (CCS) and involves injecting carbon dioxide deep underground where it stays permanently.

Carbon Sink: An ocean, forest, or other area of vegetation (plants and trees) that helps to protect the environment by taking in large amounts of carbon dioxide from the atmosphere.

CDM (Clean Development Mechanism): The CDM allows Greenhouse gas emission reduction projects to take place in countries that have no emission targets under the United Nations Framework Convention on Climate Change (UNFCCC) Kyoto Protocol, yet are signatories.


Climate Change Impacts IPCC identified a range of impacts associated with climate Change and variability, including decreases in grain yields; changes in runoff and water availability in the Mediterranean and southern countries of Africa; increased stresses resulting from increased droughts and floods; and significant plant and animal species extinctions and associated livelihood impacts. Such factors were shown to be aggravated by low adaptive capacity (IPCC, 2001).

Climate Change: Article 1 of UNFCCC defines climate change as: ‘a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods (UNFCCC, 1992).

Climate Mitigation- A human intervention to reduce the human impact on the climate system; it includes strategies to reduce greenhouse gas sources and emissions and enhancing greenhouse gas sinks. It involves reductions in human (anthropogenic) emissions of greenhouse gases.

Climate Smart Agriculture: Climate-smart agriculture (CSA) is an integrated approach to managing landscapes—cropland, livestock, forests and fisheries--that address the interlinked challenges of food security and climate change. CSA aims to simultaneously achieve three outcomes: Increased productivity: Produce more food to improve food and nutrition. Enhanced resilience: Reduce vulnerability to drought, pests, disease, and other shocks; and improve capacity to adapt and grow in the face of longer-term stresses like shortened seasons and erratic weather patterns. Reduced emissions: Pursue lower emissions for each calorie or kilo of food produced, avoid deforestation from agriculture and identify ways to suck carbon out of the atmosphere. climatic stimuli: an adaptation that fails in reducing vulnerability but increases it instead.

Co-Benefit: The benefits of policies that are implemented for various reasons at the same time including climate change mitigation acknowledging that most policies designed to address greenhouse gas mitigation also have other, often at least equally important, rationales (e.g., related to objectives of development, sustainability, and equity).

Efficient sources of energy-These include renewable forms of energy (hydrothermal, tidal, wind and solar). Emissions reduction-Practices and technologies adopted with an aim of reducing emissions of particularly Green

House Gases (GHG) into the environment. Companies and organizations that have under certification obtain a tradable instrument Certificate of Emission Reduction (CER).

Energy conservation-This is the effort made to reduce consumption of energy by using less of an energy service. Environmental damage-This is the deterioration of the environment through depletion of resources such as air,

water, and soil. Financing models/funds-This is the task of building an abstract representation (a model) of a real-world financial

situation. gases include, carbon dioxide, methane, nitrous oxide, ozone, chlorofluorocarbons, hydrochlorofluorocarbons, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride

Green growth-This refers to a path of economic growth that uses natural resources in a sustainable manner. It is also “an inclusive low emissions economic growth pathway that emphasizes effective and efficient use of the country’s natural, human, and physical capital while ensuring that natural assets continue to provide for present and future generations.” (GGDS)

Green inputs include soil amendments such as lime, mineral calcium, or compost. Green products- Are those that have less of environmental impact or less detrimental to human health. In addition

they are energy efficient, durable and often have low maintenance requirements, free of ozone depleting chemicals, toxic compounds and don’t produce toxic bi-products, often made of recycled materials or content from renewable and sustainable sources, obtained from local manufacturers or resources and biodegradable or easily reused either in part or as a whole.

Green sustainable energy-Refers to energy collected from renewable resources, which are naturally replenished on a human timescale, such as sunlight, wind, rain, tides, waves, and geothermal heat.

Greenhouse Gas (GHG): Any gas that absorbs infrared radiation in the atmosphere; Greenhouse gases include, carbon dioxide, methane, nitrous oxide, ozone, chlorofluorocarbons, hydrochlorofluorocarbons, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride.

Impacts IPCC identified a range of impacts associated with climate Change and variability, including decreases in grain yields; changes in runoff and water availability in the Mediterranean and southern countries of


Africa; increased stresses resulting from increased droughts and floods; and significant plant and animal species extinctions and associated livelihood impacts. Such factors were shown to be aggravated by low adaptive capacity (IPCC, 2001).

Inputs-These are defined as substances used by a producer for pest control or soil fertility management. Maladaptation Any changes in natural or human systems that inadvertently increase vulnerability to climatic

stimuli; an adaptation that fails in reducing vulnerability but increases it instead. (IPCC TAR, 2001) Pollution-The presence in or introduction into the environment of a substance which has harmful or poisonous

effects. REDD+ Instruments: Reducing Emissions from Deforestation and Forest Degradation (REDD+), is a potentially

significant financial mechanism for shifting the incentives from deforestation and land use change to forest conservation and sustainability. It is a global initiative to help create a financial value for the carbon stored in forests and it offers developing countries incentives to reduce emissions from forest land, while developed countries pay for the carbon that is not released into the atmosphere as a result of forest conservation.

Remediation-The action of remedying something, in particular of reversing or stopping environmental damage. Resilience Amount of change a system can undergo without changing state. (IPCC, TAR, 2001) Transformative Capacity: Transformative capacity: The ability to create a fundamentally new system so that the shock will no longer have

any impact. This can be necessary when ecological, economic, or social structures make the existing system untenable. Examples of transformative capacity include the introduction of new technologies, and incentivizing actions to build resilience.

Vulnerability Extent to which a natural or social system is susceptible to sustaining damage from climate change. Vulnerability is a function of the sensitivity of a system to changes in climate and the ability to adapt to system to changes in climate. Under this framework, a highly vulnerable system would be one that is highly sensitive to modest changes in climate (IPCC, 1997)


Waste –These are materials, substances or bi-products eliminated or discarded as no longer useful or required after the completion of a process.

Africa; increased stresses resulting from increased droughts and floods; and significant plant and animal species extinctions and associated livelihood impacts. Such factors were shown to be aggravated by low adaptive capacity (IPCC, 2001).

Inputs-These are defined as substances used by a producer for pest control or soil fertility management. Maladaptation Any changes in natural or human systems that inadvertently increase vulnerability to climatic

stimuli; an adaptation that fails in reducing vulnerability but increases it instead. (IPCC TAR, 2001) Pollution-The presence in or introduction into the environment of a substance which has harmful or poisonous

effects. REDD+ Instruments: Reducing Emissions from Deforestation and Forest Degradation (REDD+), is a potentially

significant financial mechanism for shifting the incentives from deforestation and land use change to forest conservation and sustainability. It is a global initiative to help create a financial value for the carbon stored in forests and it offers developing countries incentives to reduce emissions from forest land, while developed countries pay for the carbon that is not released into the atmosphere as a result of forest conservation.

Remediation-The action of remedying something, in particular of reversing or stopping environmental damage. Resilience Amount of change a system can undergo without changing state. (IPCC, TAR, 2001) Transformative Capacity: Transformative capacity: The ability to create a fundamentally new system so that the shock will no longer have

any impact. This can be necessary when ecological, economic, or social structures make the existing system untenable. Examples of transformative capacity include the introduction of new technologies, and incentivizing actions to build resilience.



Waste –These are materials, substances or bi-products eliminated or discarded as no longer useful or required after the completion of a process.


REFERENCES2

[aBi] Agriculture Business Initiative. 2019. Final Green Growth Situational Analysis Report Uganda: The Agriculture Business Initiative social Enterprise Ltd, Kampala, Uganda.

[FAO] Food and Agriculture Organisation of the United Nations. 2019. FAOSTAT, Uganda Emissions (CO2 equivalent) Agriculture Total and Emissions by sector (CO2 equivalent).

[GFP] Green Finance Platform. 2020. Explore Green Finance. Green Finance in Agriculture. Available from: https://greenfinanceplatform.org/sectors/agriculture

[GoU] Government of Uganda 2017. Uganda Green Growth Development Strategy (UGGDS). The Republic of Uganda.

[GoU] Government of Uganda. 2018. Ministry of Agriculture, Animal Industry and Fisheries. (2018). National Adaptation for the Agricultural Sector. Ministry of Agriculture, Animal Industry and Fisheries, The Republic of Uganda.

[GoU] Government of Uganda. 2019. Uganda’s First Biennial Update Report to the United Nations Framework Convention on Climate Change. Ministry of Water and Environment, Kampala, Uganda.

[OECD] Organization for Economic Co-operation and Development. 2014. The OECD green growth measurement framework and indicators. OECD Green Growth Studies, OECD Publishing. http://dx.doi.org/10.1787/9789264202030-en

[USAID] United States Agency for International Development. 2015. Greenhouse Gas Emissions in Uganda. Washington, DC: United States Agency for International Development

Pelling M. 2010. Adaptation to Climate Change: From Resilience to Transformation. Routledge; Abingdon (UK) and New York (NY), USA, 224 pp.

[WB] World Bank. 2018. Closing the Potential-Performance Divide in Ugandan Agriculture. Agriculture is the ‘green gold’ that could transform the economy and the lives of Ugandan farmers. https://blogs.worldbank.org/nasikiliza/agriculture-is-the-green-gold-that-could-transform-the-economy-and-the-lives-of-ugandan-farmers


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