Challenges for Climate Change Mainstreaming and Tracking the

Effectiveness of Mitigation Projects -Cases from JICA Projects

Climate Change Expert Group Global Forum

18-19 September 2013

OECD Conference Centre, Paris

Yukichi USUI (Mr.), Deputy Director, Office for Climate Change / Environmental Management Group, Global Environment Department Japan International Cooperation Agency (JICA)

Contents

(1) JICA’s Challenges for Mainstreaming Climate Change

(2) Case Studies for Tracking Effectiveness of Mitigation Projects

(3) Argument

(1) JICA’s Challenges for Mainstreaming Climate Change

Japan’s Role for Climate Change and Development

◆JICA and Japan’s ODA • Since 1954, Japan has been providing financial and technical assistance to

developing countries through ODA (Official Development Assistance). JICA (Japan International Cooperation Agency) is in charge of administering all ODA except contributions to international organizations.

• JICA, taking advantage of accumulated experiences, the results of assisting of developing countries and Japan's technology, conducts multi-benefit assistance, which contributes to sustainable developments in developing countries and simultaneously contributes to resolve various development subjects. JICA assists by mixing organically financial and technical assistance for mitigation measures, which contribute to reduce greenhouse gas (GHG) emission and for adaptation measures to the negative effects caused by climate change in various sectors .

*This excludes Grant Aid which the Ministry of Foreign Affairs will continue to directly implement for the necessity of diplomatic policy.

Bilateral assistance ODA

Multilateral Assistance

JICA

Technical Cooperation ODA loans* , Overseas investment and loan Grant Aid Disaster relief Cooperation through citizen participation

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Fin

an

cia

l

Assis

tan

ce

＜Mitigation: Low-carbon Society＞

＜Adaptation: Climate Resilient Society＞

Te

ch

nic

al

Co

op

era

tion

Policy Dialogue

Public-Private

Partnership

Research / Studies

Strategic Mitigation Actions （NAMA、MRV、REDD+, etc.）*

Low-carbon Technologies （Renewables, Energy Efficiency, etc.)

Efficient Use of Resources, etc. （Mass Transit, Smart-grid, etc.）

Comprehensive

Assistance

Modeling / Vulnerability Assessment （Climate Prediction, GIS**, etc.）

Enhancing Adaptive Capacity （Awareness, Early Warning System, etc.)

Resilient Infrastructure （Irrigation, Flood Control, etc.）

Energy, Transport, Forestry,

Waste Management, etc.

Equitable

Growth

Human

Security

Climate Change,

A Global Agenda

Climate Compatible

Sustainable Development

• NAMA (Nationally Appropriate Mitigation Actions)

MRV (measurable, reportable, verifiable)

REDD+ (Reduction of Emission from Deforestation and Degradation)

**GIS (Geographic Information System)

JICA’s Approach: Low-Carbon and Climate Resilient

Development Cooperation

Policy & Institutional Reform,

Finance Mechanism,

Human Resource Development

Reduction of

GHG

Emission

Enhancing

Adaptive

Capacity

Responding

to Climate

Change

Sustainable

Development

Disaster Risk Management,

Water, Agriculture. Sanitation, etc.

Co-Benefits Approach -Examples An approach to reduce GHG emission compatible with sustainable development

Reducing methane emissions with

semi-aerobic landfill systems

Reducing methane emissions with

wastewater technology/equipment

Saving energy with high efficiency

boilers/processes Reducing Air Pollution from Cars

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<Project Formulation Process> <Process of Climate Change Mainstreaming>

Preparatory Survey

Feasibility Study (F/S)

Appraisal

Intergovernmental Agreement

Project Implementation

(1) Pre-Screening of Mitigation/Adaptation Potentials

(2) Climate Change Mainstreaming through dialogue between Implementing Agency and JICA Utilization of JICA Climate-FIT (Finance Impact Tool) <Mitigation> Identification of Mitigation Options and Data Collection for GHG Estimation <Adaptation> Vulnerability Assessment and Identification of Adaptation Options (Mitigation/Adaptation to be Specified as Project Purpose, Expected Outcomes, Project Indicators, etc.)

(4) Official Agreement with Recipient Government on Contribution to Mitigation/Adaptation in Official Intergovernmental Agreement

(6) Application of Rio-Marker Application of Rio-Marker according to OECD-DAC Definitions

Adoption of Project Concept

(3) Confirmation with Implementing Agency on

Contribution to Mitigation/Adaptation in Decision-Making Documents

(5) Completion of Ex-ante Evaluation Sheet with

Specification of Contribution to Adaptation/Mitigation, to be Open to Public in JICA Website

Project Formulation Process and Climate Change Mainstreaming (Case of ODA Yen-Loan)

Essential Elements for ‘Development Effectiveness’

Capacity Development “The process in which individuals, organizations, institutions, and societies develop “abilities” either individually or collectively (to respond to issues) to perform functions, solve problems, and set and achieve objectives.”

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DAC Criteria for Evaluating Development Assistance -Relevance The extent to which the aid activity is suited to the priorities and policies of the target group, recipient and donor. -Effectiveness A measure of the extent to which an aid activity attains its objectives. -Efficiency Outputs -- qualitative and quantitative -- in relation to the inputs -Impact The positive and negative changes produced by a development intervention, directly or indirectly, intended or unintended. -Sustainability Whether the benefits of an activity are likely to continue after donor funding has been withdrawn

JICA Climate Finance Impact Tool (JICA Climate-FIT)

Draft Ver. 1.0 【June 2011】

JICA has prepared Climate Finance Impact Tool (JICA Climate-FIT) , a reference document which

contains the following components in order to

facilitate consideration of policies and formulation

of projects for assisting climate change related

measures in developing countries.

1.Methodologies for implementing measurement,

reporting and verification (MRV) related to

quantitative evaluation of mitigation projects that

contribute to reduction or sequestration of

greenhouse gases (GHG) (25 sub-sectors)

2.Concepts and guidelines for mainstreaming

adaptation considerations into projects that

contribute to reduction of vulnerability against

climate change, and sustaining and increasing

adaptive capacity and resilience (15 sub-sectors)

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Framework of Mitigation Report Framework of Adaptation Report

Chapter 1 Introduction

Chapter 3 Basic Concept and Guidelines for

the Quantitative Evaluation of

GHG Emission Reduction (Sequestration)

Chapter 2 Selection of Target Sub-sectors

and Review of Existing Methodologies

Chapter 4 Methodology Sheets and Calculation Sheets

■ Selection of Target Subsectors

① Past JICA ODA Loan Projects

(Classification of yen loan projects from 1995 to 2010)

② Trend of Other Donors

■ Methodologies of Other Certification

Organizations, etc.

① Reviewed Methodologies

② Existing Methodologies for

Targeted Sub-sectors

■ Basic Concept

① Quantitative Evaluation

② Basic Concept

■ Outline of Methodology Sheet and

Calculation Sheet

① Aim and Application

② Outline of Methodology Sheet

③ Outline of Calculation Sheet

Identification of Mitigation Projects

Outline of Methodology and Calculation

Sheets for Each Sub-sector Target Sub-sectors

Methodology Sheet

1. Typical project outline

2. Applicability

3. Methodology on emission reduction

(1) Baseline emission

(2) Project emission

4. Data required for estimation

and monitoring

<Timing of calculation>

<Data acquisition methods>

<Priority among options>

5. Others

(1) Project boundary

(2) Leakage

(3) Reviewed methodologies and

major differences

Calculation Sheet

(1) Input Sheet

(2) Result Sheet

Forest and natural resources conservation

1. Afforestation 2. Forest conservation

Traffic and transportation

3.Freight / passenger transportation

improvement 4.MRT 5.Mono-rail 6. Bus

Energy conservation (Industry)

7.Energy efficiency improvement

8.Cogeneration (electricity and heat supply)

9.Fuel switching

Energy

10.Energy plant with fuel switching

11.Thermal power cogeneration

(electricity and heat supply)

12.Thermal power with fuel switching

13.Thermal power with higher efficiency

14.Power transmission with improved efficiency

15.Power distribution with improved efficiency

16.Rural electrification

Renewable energy

17.Hydro power 18.Wind power

19.Photovoltaic power / solar heat 20.Geotherma

21.Biomass

Sewerage, urban sanitation

22.Landfill disposal of waste

23.Intermediate treatment of waste

24.Drainage treatment 25.Sewerage

Chapter 1 Introduction

Chapter 2 Review of Existing Resources

Chapter 3 Definitions and Steps

in Adaptation Planning

Chapter 4 Selection of

Target Sub-sectors

■ The Basic Concept

■ Vulnerability Assessment

■ Adaptation Project and Business-as-Usual

(BAU) Development with Adaptation Options

■ Maladaptation

■ Evaluation and Monitoring

■ Required Data

■ Categorization of Typical Adaptation Measures

■ Past JICA ODA Loan Projects (Classification of yen loan projects from 1995 to 2010)

■ Integration of Detailed Classifications into

Target Sub-sectors

■ Trends of Projects by Other Donors

■ Selection of Target Sub-sectors

Chapter 5 Basic Concept and Guidelines for Adaptation Measures

Identification of Adaptation Projects

Structure of Sub-sector Profiles Target Sub-sectors

1) Basic Concept

i) General concept ii) Vulnerability

iii) Adaptation iv) Maladaptation

2) “Adaptation Project” Guideline

i) General concept

ii) Vulnerability assessment

iii) Project evaluation of adaptation measures

iv) Necessary consideration for planning of

adaptation measures

v) Required data

3) “BAU Development with Adaptation Options”

Guideline

i) General concept

ii) Vulnerability assessment (risk and change)

iii) Planning adaptation options

iv) Project evaluation of adaptation options

v) Necessary consideration for planning of

adaptation options

vi) Required data

Understanding future climate change

Water Resources

1.Water resources

Agriculture

2.Irrigation and drainage

3.Enhancement of farm management

Forestry and natural resources conservation

4.Forest preservation, afforestation

5.Ecosystem integrity

Disaster Management

6.Flood control 7.Coastal protection

8.Sediment-related disaster prevention

9.Information system

Urban-regional Development

10.Rural/urban development

Transportation

11.Bridge, road and railway

12.Port and airport

Sanitary Improvement

13.Water supply

14.Sewerage and drainage

15.Medical healthcare

Framework of JICA Climate-FIT

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(2) Case Studies for Tracking Effectiveness of Mitigation Projects

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Case 1 “Renewable Energy Development Project” in Bangladesh (ODA Yen Loan)

Loan Agreement: March 10, 2013

Loan Amount: 11,335 million Yen

Executing Agency: Infrastructure Development Company Limited (IDCOL)

Operation and Maintenance System: Sponsor agencies

#Financial Intermediary Loan (Two-Step Loan) implemented through the financial institutions of the recipient country based on the policy-oriented financial system

Project Background

• Insufficient electricity supply with increasing electricity demand, per capita electricity consumption remaining at the lowest level in the world (252 kWh)

• Challenge to facilitate increase of power supply capacity through development of new power sources through diversification of energy resources including renewable energy, especially in rural areas

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Project Objective

To promote the increase of power supply and the diversification of energy source, by financing the installation of solar PV power generation and biomass power generation mainly in the rural area, thereby contributing to sustainable economic development, improvement of the people’s living conditions and mitigation of climate change

Project Components

1) Provision of funds to sponsor agencies in charge of sales and maintenance and management of equipment in order to implement sub-projects for renewable energy

2) Consulting services: monitoring, sub-project screening support, technical assistance, etc.

Schedule

To be implemented from March 2013 to December 2016 (46 months in total)

Targeted Outcomes

(1) Quantitative Effects

<Performance Indicators>

<Economic Internal Rate of Return (EIRR) >

sub-projects with their EIRR over 12% are to issue loans with regard to the project components other than the SHS (Solar Home System)

(2) Qualitative Effects

Sustainable economic development, livelihood improvement, and climate change mitigation.

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Indicator (Unit) Target (2018)

Yearly Power Generation Volume (MWh/year) 63,162

Installed Generation Capacity (MW) 43.632

Effect of the Reduction of CO2 (CO2 conversion tons/year)

40,422

Case 2 “Delhi Mass Rapid Transport System Project Phase 3” (ODA Yen Loan)

Loan Agreement: March 29, 2012

Loan Amount: 127,917 million yen

Executing Agency: Delhi Metro Rail Cooperation Limited (DMRC)

Project Background

Rapid urbanization and surging number of automobiles and motorcycles (with annual average growth of 11% since 1997), resulting in heavy traffic congestion and air pollution

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Project Objective

Extending the mass rapid transport system totaling approximately 103 km (total 245km throughout phase 1-3) in length, thereby contributing to regional economic development and improvement of the urban environment

Project Components

1) Civil works (underground section of 17.3 km on Line 8 (including 12 underground stations), tracks for all the lines, etc.)

2) Electrical and Signaling & Telecommunication System

3) Procurement of Rolling Stocks (enhancement of the transportation capacity of the above-mentioned four sections and some existing lines)

4) Consulting services (design review, construction monitoring and supervision etc.)

Schedule

March 2012 – October 2020 (104 months in total)

Targeted Outcomes (1) Quantitative Effects

<Performance Indicators>

Economic Internal Rate of Return (EIRR) : 16.33%

(2) Qualitative Effects

Improvement of traffic conditions, mitigation of traffic pollution, mitigation of climate change, improvement of convenience through punctuality with regard to travel times, and economic growth in the Delhi metropolitan area

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Indicator Target (2022)

Operation rate (%/year) 92

Running distance (1000km/day) 227.8

Number of running trains (number of trains/day, one direction) 782

Volume of transportation (million persons-km/day) 38.0

Income from Passengers (million rupees/day) 71.1

Estimated GHG emission reduction as “Project Impact”

-About 22 million tons (in terms of CO2 equivalent: total amount of the reduction between 2008 and 2032 achieved by Phases 1 to 3) , due to both of below:

・Introduction of regenerative braking systems for electricity powered vehicles, and

・Development of a modal shift (cf. JICA Climate-FIT)

Introduction of regenerative braking systems has been registered as a CDM project.

<Case 3> Bangkok Master Plan on Climate Change 2013 – 2023 (Technical Cooperation) Project Period: 2013-2015

Output 1： Preparation of Bangkok Master Plan on Climate Change 2013-2023 • Assessment of the Bangkok Action Plan on

Global Warming Mitigation 2007 – 2012 • Improvement of Data Collection,

Methodologies for Estimation and Monitoring of GHG Emission

• Development of Sectoral Strategies • Public consultation, Workshops and Seminars • Dissemination of the Master Plan

Project Purpose：The Bangkok Master Plan on Climate Change 2013-2023 is prepared with strengthened capacity for implementation.

Output 2：Strengthened Capacity of BMA officials • Training Programs for BMA officials • Seminars/Workshops for Related Stakeholders • Development of Educational Materials

Japanese Expert Team

Yokohama-City （’Future City

Initiative’）

Local Consultants

Experiences of Low-Carbon Policy-Planning and Implementation in

JAPAN

＜Background＞ Total GHG emission of Thailand is ranked 23th in the world（IEA, 2009） GHG emission of Bangkok accounts for 24% of total emission in Thailand,

and per capita emission is as high as that of NY High potential of GHG reduction, especially in Energy and Transport Sector

Steering Committee chaired by Deputy-Governor of BMA Participants: Representatives from the participating departments of BMA, TGO, OTP, PCD, NESDB, ONEP, DEDE, etc.

5 Working Groups Environmentally Sustainable Transport Energy Efficiency and Alternative Energy Efficient Solid Waste Management and Wastewater

Treatment Green Urban Planning Adaptation Initiatives

Secretariat（Department of Environment, BMA）

Inter-Organizational Coordination

Bangkok Metropolitan Administration (BMA)

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Overall Goal, Project Purpose and Objectively Verifiable Indicators

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Narrative Summary Objectively Verifiable Indicators

<Project Purpose> The Bangkok Master Plan on Climate Change (including its action plan(s) is fully prepared with strengthened capacity for implementation.

1 The Bangkok Master Plan on Climate Change is officially approved by BMA by the end of the project duration. 2 The resources made available for implementation of the Master Plan. 3 Intra/inter-organizational cooperation and implementation structure is established to implement the Master Plan.

<Overall Goal> 1. Bangkok Master Plan on Climate Change is well implemented by BMA in a sustainable manner. 2. The responsible departments of the BMA are able to manage, monitor and evaluate the progress of the Master Plan.

1 Sufficient budget and staff are allocated by each responsible department in BMA to implement the Master Plan. 2 Positive effects on adaptation and mitigation are recognized by mid-term review of the Master Plan.

(3) Argument

Climate Change Mitigation could be Mainstreamed in Development Projects/Programs, with a View to Pursuing Various Mitigation/Development Co-benefits.

Effectiveness of Mitigation Projects would Suitably be Verified not only by the Amount of GHG Emission Reduction, but also by Various Indicators of Capacity Development, with a View to Enabling Sustainable Mitigation Policies/Actions.

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