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Climate Change and Climate Finance in Lao PDR

Climate Change and Climate Finance in Lao PDR. Introduction. COORDINATED GCF/GEF NATIONAL DIALOGUE 12-14 FEBRUARY 2019 – VIENTIANE CAPITAL – LAO PDR. Syamphone SENGCHANDALA ( Mr ) DDG and NDA, Department of Climate Change, Ministry of Natural Resources and Environment. OUTLINE.

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Climate Change and Climate Finance in Lao PDR

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  1. Climate Change and Climate Financein Lao PDR Introduction COORDINATED GCF/GEF NATIONAL DIALOGUE 12-14 FEBRUARY 2019 – VIENTIANE CAPITAL – LAO PDR Syamphone SENGCHANDALA (Mr) DDG and NDA, Department of Climate Change, Ministry of Natural Resources and Environment

  2. OUTLINE Climate Change and its impacts NDA for GCF Climate Change policy and partnership Current status preparedness to access the GCF Key challenges and next step

  3. 1- Climate Change and its impacts AVERAGE TEMPERATURES ARE RISING WORLWIDE ອຸນຫະພູມສະເລ່ຍພ່າມກາງ ຂອງໂລກກໍາລັງເພີ່ມຂຶ້ນ GLOBAL WARMING AND CLIMATE CHANGE ARE CAUSE BY HUMAN ACTIVITIES ສະພາບໂລກຮ້ອນ ແລະ ການ ປ່ຽນແປງດິນຟ້າອາກາດເກີດ ຈາກການກະທໍາຂອງມະນຸດ

  4. 1- Climate Change and its impacts Climate in Laos is changing ພື້ນຖານຂອງລະບົບດິນຟ້າ ອາກາດກໍາລັງປ່ຽນແປງໃນລາວ

  5. 1- Climate Change and its impacts Climate Change affects people’s lives ACCESS TO FOOD AND WATER : rice, freshwater Lao Farmers Devastated by Severe Drought – AsiaNews 20/07/2015) HOUSEHOLDS ACCESS TO SERVICES : Education, health,,… ການປ່ຽນແປງດິນຟ້າອາກາດ ກະທົບຕໍ່ຊີວິດຂອງຄົນ, ສັດ ແລະ ລະບົບນິເວດ ນຖານ

  6. 1- Climate Change and its impacts Climate Change will affect the long-term development TRADE TRANSPORT COMMERCE ການປ່ຽນແປງດິນຟ້າອາກາດ ແມ່ນບັນຫາທີ່ທ້າທ້າຍຕໍ່ການ ພັດທະນາໄລຍະຍາວຂອງ ສປປ ລາວ

  7. 1- Climate Change and its impacts The ADAPTATIONto climate change is crucial to Laos CLIMATE RESILIENT CITIES Bioengineering Road (landslide protection) Crop diversification ການສ້າງຄວາມເຂັ້ມແຂງໃນການ ປັບຕົວເຂົ້າກັບສະພາບການປ່ຽນ ແປງດິນຟ້າອາກາດແມ່ນຄວາມຈໍາ ເປັນອັນຮີບດ່ວນໃນ ສປປ ລາວ

  8. 1- Climate Change and its impacts The MITIGATIONof climate change need to be taken into account ການຫຼຸດຜ່ອນການປ່ອຍທາດອາຍເຮືອນແກ້ວ ມີຄວາມມຈຳເປັນຕ້ອງໄດ້ເອົາໃຈໃສ່.

  9. 2. Laos DNA Establish 2015 MONRE nominated DDC National Focal for GCF National Designated Authority Department of Climate Change 1. Div. of General Affairs (Secretariat) 4. Div. of Mitigation 2. Div. of Education and Awareness 5. Div. of Adaptation 3. Div. of Promotion 6. Div. of DRR

  10. 2. Laos DNA Establish MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT Department of CLIMATE CHANGE COORDINATION • coordination with line agencies and administrations on climate change activities OPERATIONALIZATION • development and implementation of CC action plans and programmes REPRESENTATION • national focal point for climate change conventions and agreements REPORTING • evaluation and reporting to the government the implementation of CC activities • collection & monitoring the information on implementation of climate change activities KNOWLEDGE • raising the public awareness and engaging people to contribute to climate change AWARENESS • dissemination of CC decisions/actions to the public COMMUNICATION

  11. 3. Climate Change policy and partnership The Context - Climate Change Action Plans and Policies NDC 2016 8th NDSEDP

  12. 3. Key Climate Change policy and partnership National Socio Economic Development Plan 8th NDSEDP

  13. 3. Climate Change policy and partnership

  14. 3. Climate Change policy and partnership • Nationally Determined Contributions – MITIGATION

  15. 3. Climate Change policy and partnership CC related- Lao PDR instruments and partners EU FLEGT- Facility EU-GCCA FCPF readiness fund Carbon Market AF FIP German - IKI LDCF Financing instruments UN- REDD CDM FCPF Carbon Fund FFEM CTCN GEF GCF GAFSP NDF CBIT REDD+ Early Movers ASAP Private Sector Bilateral IFIs / MDBs NGOs/CSO UN Agencies New Chip Xeng Group ADB WB JICA KFW UNEP GIZ WCS Partners IFAD NTPC KOICA EIB IFC LUXDEV FAO IUCN UNDP BFL PROPARCO WWF AFD USAID UN-HABITAT Acleda EU others

  16. Status overview 4. Current status of preparedness to access the GCF 1. COORDINATION • Enhanced Coordination of on-going activities • Increased Awareness and communication : national and provincial level • Processes development : Non objection and stakeholder engagement READINESS SUPPORT (4 readiness approved & 3 readiness developed & 1 NAP on discussion) 2. STRATEGIC PLANNING • Country Program– Short term and long term priorities • Strategic engagement on priority areas: Forest and Sustainable cities • NAP complementary and coherence with existing projects 3. ACCREDITATION • Support EPF to become one of the National accredited entities. INVESTMENTS 4 FP ready 3 project ideas 4. INVESTMENTS • 4 project proposal ready for consideration by GCF ( USD 125 million) • 3 project ideas on development

  17. 4. Current status of preparedness to access the GCF GCF- Four potential areas of support 1 2 3 4

  18. Lao’s approach 4. Current status of preparedness to access the GCF CAPACITY BUILDING COORDINATION and M&E INNOVATION NDA STRENGTHNING(GCF-UNDP) – including COUNTRY PROGRAM (R1) Processes Capacity building Stakeholder engagement Strategic frameworks PRIVATE SECTOR ENGAGEMENT – R5 1 2 STRATEGIC PLANNING DIRECT ACCESS 4 CLIMATE FINANCE SECTORIAL STRATEGIES Agriculture and Forest (ADB) Sustainable cities (ADB) Sustainable transport (tbd) Others EPF ACCREDITATION (GCF-GIZ) - R2 NAPs - ADAPTATION PLANS (LDCF-UNEP focused on information and processes and LDCF FAO on data information and DSS) R7 3 GCF INVESTMENT PLANS : Programmatic approaches Sustainable cities (GGGI) –R3 REDD+ (FAO) –R4 Agriculture and food security Sustainable transport Renewable energy and electrification –R6 Health and education

  19. 4. Current status of preparedness to access the GCF Readiness Activities –Portfolio

  20. 4. Current status of preparedness to access the GCF Readiness Activities - Pipeline

  21. 4. Current status of preparedness to access the GCF Project and programs - Pipeline

  22. 4. Current status of preparedness to access the GCF R1 - Green Climate Fund readiness and preparatory support for Laos PDR –UNDP: 3 main outcome: 1. Laos GCF Country Programme 2. Laos GCF No Objection Procedure 3. Laos GCF Stakeholder Engagement Guidelines

  23. Lao PDR GCF Country Programme

  24. What is a GCF Country Programme? • Sets out national priorities for GCF • Brings together climate change and development priorities • Is not a requirement to access the GCF (voluntary) • Will be regularlyupdated to reflect changing priorities (living document) • Benefits of having a GCF Country Programme: • To support discussions with Accredited Entities • Improved project identification and selection • Increased country ownership • Increased transparency and GCF awareness with national stakeholders

  25. Outline of Country Programme • INTRODUCTION: climate change profile, socioeconomic development profile, climate change policy response, capacity development needs • COUNTRY PRIORITIES AND GCF PIPELINE: summary GCF sectoral priority climate activities, pipeline of investment and readiness projects, potential national Accredited Entities • GCF ENGAGEMENT AND COORDINATION: institutional arrangements, Accredited Entities in Lao PDR, stakeholder engagement, GCF/GEF coordination, EPF as key implementation mechanism • MONITORING AND EVALUATION: M&E framework for Programme • IMPLEMENTATION PLAN: action plan to implement Programme • Annex 1: Stakeholders consulted • Annex 2: Detailed sectoral priority climate activities • Annex 3: GCF results framework

  26. Process for identifying GCF priorities

  27. CP priorities P1 – Project number 1 : Building resilience of urban populations with ecosystem based solutions R4 – Readiness number 4 : Incentive mechanisms for private sector engagement under REDD+

  28. CP priorities

  29. LIVING DOCUMENT : Update of the Country Program Country Program – UNDP-GCF A framework with a preliminary list of priorities - Y0 Country Program 3 Priority projects : private sector and Direct Access Entities (i.e. EPF) Country Program 2 – A further detailed of priority projects and coordination arrangements Y1 EPF Accreditation - GIZ GCF REDD+ Investment plan FAO Sust Cities Investment plan GGGI Energy Efficiency Markets - UNEP GCF readiness Private Sector Enhanced Engagement-GGI Climate Finance Investment Plans Forest & Agriculture GCF readiness 9th NSEDP Climate Finance Investment Plans Sustainable Cities Climate Finance Investment Plans (Health ?) Climate Change Strategy ADB TA

  30. Lao PDR GCF No Objection Procedure

  31. What is a GCF No Objection Procedure? • Process to ensure consistency of GCF funding proposals with national strategies and priorities • Process that result in a no-objection letter • to be signed by the NDA (DCC). • is a GCF condition for approval of investments and accreditation applications from national entities • Countries decide the appropriate national process for providing the no-objection letter.

  32. Lao PDR No Objection Procedure for GCF

  33. No Objection Procedure for GCF funding proposals GEF and GCF Committee/ MONRE Minister NDA (DCC) Line Ministry Accredited Entity Line Ministry with the support of the Accredited Entity initiates Project Development (Idea/Concept/Proposal) IP1: Accredited Entity submits funding proposal to line Ministry IP2: Line Ministry provides clearance letter IP3: Line Ministry or Accredited Entity submits funding proposal and clearance letter to NDA IP4: NDA gives feedback on funding proposal IP5: If in conformity with criteria ; Funding proposal is presented for approval to Committee / Minister IP6: GEF and GCF Committee /Minister approves no objection letter IP7: NDA provides no objection letter to Accredited Entity NO OBJECTION LETTER

  34. Main Criteria for Non Objection of Funding proposal • aligned to Lao PDR’s national priorities, strategies and plans and GCF country program • in conformity with relevant national and international laws and regulations • complementto existing activities or funding proposals • adequately consulted stakeholders, beneficiaries and affected communities • cleared by relevant line ministries • If the proposal is a public loan, clearance by relevant Ministry (MoF/MPI) is needed.

  35. Lao PDR GCF Stakeholder Engagement Guidelines

  36. What are Stakeholder Engagement Guidelines? • Provides clarity on national expectations and GCF requirements in relation to stakeholder engagement when identifying, developing and implementing projects • Enhanced national ownership, as an opportunity for stakeholders to provide feedback and get involved in GCF activities

  37. Outline of the Stakeholder Engagement Guidelines Introduction: Background, objective, importance of robust and inclusive stakeholder engagement, links to Country Programme and No Objection Procedure GCF guidance on stakeholder engagement: summary of key GCF policies which set GCF requirements on stakeholder engagement Stakeholder engagement for GCF project development: groups of stakeholders to be consulted, consultative mechanisms to be utilised, case study of UNDP project proposal submitted to GCF

  38. 5. Key challenges and next step • Coordination : enhanced coordination, in particular in Country Program priority areas; • Capacity and dissemination: • Continue capacity and support EPF to be National Entity for direct access to GCF • Continue Line Ministry/NDA capacity building • Enhanced stakeholders engagement and dissemination • Alignment : Consider the updated NDCs and 9th NSEDP when updating the Country Program • Engagement with Private sector : Build a platform for engagement with private sector • Enhanced Coordinated engagement with GEF and others (CTCN, AF, etc)

  39. THANKS FOR YOUR ATTENTION • Countries determine the appropriate domestic process for providing the no-objection letter. Department of Climate Change Ministry of Natural Resources and Environment (MONRE)

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