with UNDP for the Republic of India 29 December 2015 NDA Strengthening & Country Programming

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1 with UNDP for the Republic of India 29 December 2015 NDA Strengthening & Country Programming

2 PAGE 1 OF 14 Country (or region) (Please submit completed form to countries@gcfund.org) India Submission Date 21/10/2015 NDA or Focal Point Executive Summary (in one page) Ministry of Environment, Forest & Climate Change (MoEFCC) NDA Contact Person Name: Mr. Ravi Shankar Prasad Position: Joint Secretary ravis.prasad@nic.in Tel: Contact Point (both NDA/FP and delivery partner) Full Office address: Ministry of Environment, Forest & Climate Change Indira Paryavaran Bhavan Jor Bagh Road New Delhi INDIA Delivery Partner Contact Person Name: Dr. Preeti Soni Position: Head Energy and Environment preeti.soni@undp.org Tel: Full Office address: UNDP India 55, Lodi Estate P.O. Box 3059 New Delhi, India Readiness Area/s 1. Establishing and strengthening National Designated Authorities (NDAs) or Focal Points 2. Strategic frameworks for engagement with the Fund, including the preparation of country programmes 3. Selection of implementing entities or intermediaries, and support for accreditation

3 PAGE 2 OF Initial pipelines of programme and project proposals Climate change is likely to have substantial adverse impact on India, mainly on Agriculture on which large percentage of the population still depends for livelihood, water storage in the Himalayan glaciers which are the source of major rivers and groundwater recharge, sealevel rise, and threats to a long coastline and habitations and matching sustainable energy supply with the growing GDP. As a rapidly growing country with a high rate of growth, India envisages to pursue its development goals following a low-carbon and climate resilience pathway. India has been actively pursuing both international and national action on combating climate change. Request Summary (in 200 words) The government has started to place climate change at the core of its development plans, and in addition to putting in place adaptation measures. At national level, process is in place to implement plans and programmes leading directly or indirectly to tackling climate change. At the state level too, plans to address climate change have been developed. To implement the plans and programmes, however, there will be a need for significant resources. Attracting international climate financing on a sufficient scale is a challenge, mainly due to constant changing landscape of climate finance and the limited institutional capacity at different levels to leverage, utilise and monitor emerging climate finance opportunities. Anticipated Duration Estimated total cost India will need to strengthen institutional capacities to manage Green Climate Fund, including the capacity to design and implement (i) the institutional arrangements required at various levels;(ii) a clear and inclusive strategic framework for engagement which includes a pipeline of potential projects/programmes aligned with country objectives and investment criteria of the Green Climate Fund. 01/12/ /11/2016 (12 months) Up to US$ 300,000

4 PAGE 3 OF 14 SECTION A: RATIONALE FOR REQUEST A.1 Background Please provide country overview including initiatives related to climate finance e.g. NAMAs NAPs etc. With a billion plus population and large majority of it dependent on climate sensitive sectors for livelihoods, India is extremely vulnerable to the impacts of climate change. Nearly half of India s land resources are being used for agriculture. With a large agrarian population dependent on un-irrigated agriculture land, India is vulnerable to seasonal as well as interannual fluctuations in weather parameters. Furthermore, rainfall variability and melting of glaciers have an impact on water availability in many of the snow fed rivers. These among other factors make India particularly vulnerable to potential impacts of climate change having a profound impact on country s water resources, agriculture, forests, coastal regions, human health etc. India also faces a formidable challenge of meeting its energy needs while combating climate change. The country needs to follow a multi-pronged strategy to prepare for and respond to various dimensions of energy security problem, energy efficiency and mainstreaming of renewable energy sources into country s energy mix, for combating climate change. Domestically, as a response to combat the impacts of climate change, India has set up a High Level Prime Minister s Council on climate change issues facilitating inter-ministerial coordination. India launched its National Action Plan on Climate Change (NAPCC) in June The NAPCC represents a multi-pronged, long-term and integrated strategy for achieving key climate change goals. Steps have also been taken to increase capacity at the institutional level for conducting research into Climate Change science and making necessary assessments. India has set up a network, namely the Indian Network for Climate Change Assessment (INCCA) comprising of 127 research institutions tasked with undertaking research on the science of Climate Change and its impacts on different sectors of economy across various regions of India. India s institutional structure for climate finance has multiple actors at the national and subnational level, from both the government and private sector, all playing important roles for low emission and climate resilient development. India has two domestic sources of climate finance, namely the National Clean Energy Fund and the National Adaptation Fund. The Ministry of Finance has been the focal point for receiving international financial assistance from multilateral and bilateral funds. The Ministry of Environment, Forests and Climate Change (MoEF&CC) has led the selection and oversight of projects on previous occasions to access multilateral funds such as the Global Environmental Facility (GEF).. India has also committed to engage constructively and productively with the international community in the global efforts to preserve and protect the environment and collectively

5 PAGE 4 OF 14 deal with our global challenge of climate change. India recognizes that a strategy for addressing climate change has to be based on the strategy of sustainable development. This is reflected in many of the major programmes addressing climate variability concerns. Current Government expenditure in India on adaptation to climate variability exceeds per cent of the GDP, with agriculture, water resources, health and sanitation, forests, coastal zone infrastructure and extreme events, being specific areas of concern. India is also committed to spend large resources through its planning process on meeting the domestic mitigation goal of reducing the emissions intensity of its GDP by 20-25% by 2020 in comparison with 2005 levels. Under Nationally Appropriate Mitigation Actions (NAMAs), the MoEFCC is pursuing plans for the forestry and waste sectors in accordance with the existing NAPCC. These NAMAs have significant potential to contribute to socio-economic development, environmental conservation and the inclusion of the private sector. MoEFCC has recently announced its INDC, in which India has pledged to improve emissions intensity of its GDP by per cent by 2030 below 2005 levels. It has also pledged to increase the share of non-fossil fuels-based electricity to 40 per cent by 2030 while also agreeing to enhance its forest cover, which will absorb 2.5 to 3 billion tonnes of carbon dioxide, the main gas responsible for global warming by Historically, India has been quite active in the space of combating climate change since the Kyoto protocol came into existence. India has been one of the leading countries with respect to registered CDM projects. A.2 Justification for request Please explain how the readiness request will have an impact in your country and align with the goals of the readiness program. Please also discuss how the proposed activities are aligned with country priorities and strategies, and how link with existing climate finance initiatives in country. The Government of India has delegated the coordination of GCF to the Ministry of Environment, Forests and Climate Change (MoEFCC). The MoEFCC acts as a National Designated Agency (NDA) and is working in close cooperation with other sectoral ministries in order to integrate the climate change considerations in the country s development strategy. India has recently concluded the process for selecting national entities for accreditation to the GCF and has nominated 5 of them. India has developed several policies and programmes domestically towards climate change adaptation and mitigation, though most are in the early stages of implementation due to inadequate resources and limited capacity. However, to access funding on the scale required for India s adaptation and mitigation needs, one of the major challenges for India is the limited institutional capacity at various levels to leverage, utilise and monitor GCF-related activities in the country. 1

6 PAGE 5 OF 14 Given the importance of early action to benefit from funds like GCF, preparatory and readiness activities in India need to begin as early as possible. The readiness support will enable NDA to plan, access, mobilise, disburse, and track GCFdrelated activities in the country. Through awareness raising of the Fund s guidelines and procedures, engagement on country program, and capacity to coordinate multiple stakeholders (including accredited entities), the NDA will also be able to guide accredited entities to identify, plan and execute projects/programmes with support from the Fund. To effectively utilise emerging opportunities under GCF involving several stakeholders at national and sub-national levels, the NDA needs to a) enhance institutional capacities to manage GCF-related activities at different government levels, including the capacity to design and implement the institutional arrangements for managing and coordinating with the Accredited Entities; b) develop strategic frameworks for engagement with the Fund; c) engage with their regional, national and sub-national institutions d) strengthen systems and enhance capacities of the the NDA s human resources to support the objectives of the GCF. The MoEF&CC directors and other staff carry multiple responsibilities in addition to acting as focal points for the diverse funds and implementing partners. There is limited capacity for dedicated support to coordinate across the various national and sub-national entities in the country and engage with Green Climate Fund (GCF) effectively in line with the GCF guidelines and national/sub-national strategies and priorities such as the National Action Plan for Climate Change (NAPCC) and each state s State Action Plan for Climate Change (SAPCC). The readiness proposal will therefore support human resource development, raise the awareness level of the financial sector and provide technical assistance for the NDA to strengthen its capacity to effectively engage with the GCF, support stakeholder coordination and engagement, and provide overall monitoring and oversight of the GCF related activities at the country level. The proposal also seeks to support development of a country programme identifying strategic investment priorities for GCF funding through a consultative process. The country program will reflect the priorities identified in the national climate policy, the NAPCC, SAPCCs, the NAMAs (developed to date for the forestry and waste sectors), and the adaptation priorities supported under the NAPCC including the National Mission for Sustainable Agriculture (NMSA), the National Water Mission, the National Mission for Sustaining the Himalayan Ecosystem, and the National Mission on Strategic Knowledge for Climate Change. The diversity of the sub-continent with the multiplicity of actors at the national and subnational level including the government, NGOs, CSOs, and the private sector makes coordination and prioritization of investments under GCF challenging. For example, the state level actors through various committees are expected to contribute to the national strategy and plan; however, capacity and coordination issues have limited effective participation and contribution. Therefore, there is a need to strengthen ongoing engagement

7 PAGE 6 OF 14 with states as well as other stakeholders to ensure effective and coherent engagement with GCF in alignment with national priorities. Furthermore, the NDA requires capacity to coordinate across the diverse sub-national socio-economic contexts including multiple languages to identify potential priority projects/programmes for funding support from the GCF. Through the Country Programme, the readiness support will therefore facilitate the identification of specific project/programme priorites, will eventually translate into full projects/programmes with sound business models and financing structures that will facilitate tapping into the financial resources available in the private sector. SECTION B: SCOPE OF WORK Description of activities (Please provide detailed logical framework as an B.1 annex. See Annex I for content to build from). If consultancy service is required to undertake proposed activities, please also include a brief terms of reference of the service in this section or as an annex. 1. Establishing and strengthening National Designated Authorities (NDAs) or focal points. 1.1 Strengthening institutional capacities so that the NDA can effectively fulfil its role Scope of work to include: Coordinating with state climate change cells and build stakeholders capacity at national and sub-national levels to identify priority project/programme ideas aligned with national priorities, the NAPCC and the State Action Plans on Climate Change (SAPCCs), the country program for GCF (Activity 2), and the GCF investment criteria; Establish and implement a nationally appropriate no-objection procedure according to the GCF guidelines, building on/adapting existing screening procedures for other climate finance sources, seeking to ensure consistency with the national level plan and the country programme; 1.2 Support multi stakeholder engagement at national and sub-national level Scope of work to include: Engage diverse national stakeholders, and foster better coordination among them with a special focus on mainstreaming gender in developing projects. Establish and/or strengthen coordination mechanism(s) to engage all relevant stakeholders including national and sub-national government bodies, private sector including financial institutions, civil society, and academia on GCF related roles including facilitation of the country programme;

8 PAGE 7 OF 14 Undertake national and sub-national consultations, including engagement with the private sector on potential project/programme ideas for consideration by the GCF. 1.3 Supporting the appropriate oversight of Fund activities at the country level Scope of work to include: Develop capacity to monitor and evaluate GCF activities at the country level in accordance with the GCF guidelines 1.4 Developing and disseminating informational and awareness-raising materials Scope of work to include: Develop and disseminate, in local languages (such as Hindi), key operational procedures of the Fund, including the Environmental and Social Safeguards (ESS) guidelines (as new sub-national entities get accredited), raise awareness on its activities, projects, and programmes, and engage on issues related to the Fund at appropriate national and international forums (including the UNFCCC). Establish mechanisms for effective communication and engagement with the GCF including a web platform for consolidating information on country level GCF related activities. 2. Strategic frameworks, including the preparation of country programmes While most of the SAPCC s have been approved, there are still gaps in how well the state plans link to the national plan owing to limited capacity at the state level environmental departments to adequately contribute to the overall strategy. The NDA therefore seeks to identify and map the investment areas aligned with the national and sub-national objectives and priorities in the country programme for the GCF for the next four years ( ). The country programme would facilitate coordination, stakeholder engagement, review, and monitoring of GCF activities across the various national/sub-national/international accredited entities. Multi-stakeholder consultations will be organised at national, regional and state level for their inputs into climate change and finance-related decision making. Given the needs and priorities of India across geographies and sectors entailing diverse, multiple stakeholders at national and sub-national levels and range of organizations, India seeks capacity development support to identify project/programme concepts aligned with the country programme and national strategies and to direct, monitor and report on GCFrelated activities in the country for risk management purposes. The readiness proposal will therefore support human resource development and provide technical assistance for the NDA in the following activity areas:

9 PAGE 8 OF Identifying strategic investment priorities and stocktaking of existing strategies, policies, and needs assessments Scope of work to include: Stocktake of the existing strategies, policies, and needs assessments including the NAPCC, the SAPCCs, the vulnerability assessment and adaptation network, etc.; Facilitate gender-sensitive stakeholder consultations including with NGOs. CSOs, private sector and prospective implementing entities to identify investment priorities for engagement with the Fund and map them to GCF s impact areas. 2.2 Developing a country programme that identifies strategic priorities for engagement with the fund Scope of work to include: Define and disseminate broad alignment criteria in line with the NAPCC and SAPCCs objectives and priorities and the GCF focus areas for prioritizing the potential programmes for the Fund; Support identification of programming priorities consistent with the Fund s results management and investment framework and aligned with national priorities Through the country coordination and stakeholder engagement process, develop a country programme identifying roles and responsibilities of key stakeholders. B.2 Expected results 1. Designated NDA and institutional arrangements strengthened and supported for engagement with the Fund. 2. A country work programme for engagement with the Fund developed. SECTION C: BUDGET (include total cost and share of GCF funding) Please use the separate budget template provided to detailed relevant line items. GCF Share Category Total (USD) (USD) Consultants fees 1,28,000 1,28,000 Travel & per diem of consultants 35,000 35,000 Workshops (venue, catering, travel, per diem, materials, etc.) 95,000 95,000 Other operating Cost 13,500 13,500 Contingency 13,500 13,500 Project Management Cost 15,000 15,000 Grand Total 3,00,000 3,00,000

10 PAGE 9 OF 14 Note: please refer to the Fund s guide on indicative budgets for the standardised packages for activity 1 and activity 2. SECTION D: IMPLEMENTATION PLAN D.1 Implementation arrangements The readiness proposal key focus is: To work with and build upon the institutional structures that have been identified at the national level to engage with GCF. To strengthen capacity of National Designated Authorities (NDAs) To provide Strategic direction for engagement with the Fund At the institutional level, the project will delineate the roles and responsibilities of the NDA, strengthen the coordination mechanisms, identify the manpower requirements, and build capacities through targeted training programmes. At the national, regional and state level, thrust will be on building institutional capacities so that the NDA can effectively fulfil its role and establish coordination mechanism(s) to engage all relevant stakeholders including national and sub-national government bodies, private sector including financial institutions, civil society, and academia on GCF related roles including implementation of the country programme. Consultation workshops, training programmes, seminars will be organised at national, regional and state level to sensitise stakeholders and to seek their inputs for building effective engagement with the fund. UNDP Country Office will be responsible for overall execution of the project and for timely achievement of project results, under the leadership and guidance of the NDA. UNDP has extensive experience on climate change issues/projects at national and state level which will be useful for the readiness initiative. To achieve sustainability of the project outcome, emphasis will be laid on creating systems and procedures and institutionalizing these within the NDA. Key stakeholders will include the Ministry of Environment Forests and Climate Change (MoEFCC), Central Ministries (Agriculture, forest, water, disaster, energy, urban development), State governments (29 states and 7 Union Territories) and Private Sector and Civil Society. D.2 Disbursement and implementation schedule Disbursement will be made in three tranches: The first disbursement, which amounts to US$120, will be transferred upon the submission of an inception document from the FP/NDA, in form and substance acceptable to the Fund, which includes detailed implementation plan, procurement plan and budget; The second tranche of US$130, will be transferred upon submission of an interim progress report and financial report, including an expenditure statement;

11 PAGE 10 OF 14 The final disbursement of US$50, will be made upon submission of a completion report and financial report, including an audited expenditure statement. See Annex II. D.3 Procurement plan Please provide detailed procurement plan including methods. UNDP, under the guidance of the NDA, will competitively procure services consistent with its procurement rules and regulations. Under this project there will be procurement of: a. Services for developing no-objection procedure as per GCF best-practice guidelines. b. Services for developing communication and engagement strategy with the GCF including a web platform c. Services for organising logistics for national and sub-national consultations d. Services for preparing an input paper for developing country programme that identifies strategic priorities for engagement with the fund. The contracted consultants/ technical experts and organisations will be required to provide robust methodologies in their proposals, which describe how they will deliver programme outputs and achieve value for money. Detailed Terms of Reference for the various tasks which will be subcontracted during the preparatory phase will be developed under the guidance of the NDA to include the tasks outlined in this proposal. Items such as venues and travel for stakeholder workshops to be organized will also be procured consistent with UNDP s procurement rules and regulations. Further details on the process and the results of procurement to be undertaken will be included in the Inception Document where such information can be provided in advance. The process and the results will be included in the interim progress report and completion report once such procurement has been undertaken and completed. SECTION E: MONITORING & REPORTING PLAN The monitoring of the activities aims at achieving projected results and quality control. Monitoring indicators of project activities are outlined in the Logical Framework. Activity monitoring will take place as project interventions occur. Project outputs and risks will be monitored as part of the ongoing discussion and reporting will be made to a committee established by the NDA. Reporting will be done to GCF on regular basis i.e quarterly on the activity progress. Further details on the monitoring will be provided in the Inception Document SECTION F: RISK & MITIGATION MEASURES Please describe the expected risks (external and internal) that could influence the timing and quality of the deliveries. Highlight if there might be critical risks that could compromise the overall implementation. For each risk, identify the possible early corrective measures that will be in place to avoid or mitigate any negative impact. Risks Mitigation strategy

12 PAGE 11 OF 14 Coordination with multiple ministries, state government and other stakeholders may cause delay. Delay in identifying priority project/programmes for consideration of the GCF Formation of Committees with the participation of all the stakeholders will ensure coordination and timely delivery of outputs. MoEFCC has requested states to submit project concepts in line with GCF. The climate change division of MoEFCC will enhance the awareness on GCF modalities and support states in identifying quality projects/programmes.

13 PAGE 12 OF 14 Annex I. Logical Framework OUTCOMES PROJECT SUMMARY INDICATORS BASELINES 1. NDA capacity to undertake Fund-related responsibilities and engage national stakeholders strengthened 1.1 Capacity to coordinate across stakeholders and facilitate effective consultation and communication 1.2 Knowledge on climate and finance priorities strengthened 1.3 System for reviewing proposals and issuing recommendations (or noobjections) established 1.4 Capacity and systems to monitor, evaluate and report on the activities of the Fund and other relevant finance mechanisms and institutions established 1.5 Information, including in local languages, on procedures of the Fund to disseminated to country stakeholders The existing capacity is limited with regards to Fund-related responsibilities and channelizing Green Climate Fund. 2. Strategic framework for engagement with the Fund developed 2.1 Engagement of private sector, civil society, government and local government stakeholders on priorities for engagement with the fund 2.2 Priorities for project and concepts to be developed for accessing the fund 2.3 Country programming document developed and published in adherence with the initial guidance from the Fund No comprehensive climate investment plan in place.

14 PAGE 13 OF 14 OUTPUTS 1.1 A process for supporting coordination across stakeholders and facilitating engagement (including periodic meetings / workshops) 1.2 Annual report on activities of the Fund and other relevant funding mechanisms and institutions in the country 1.3 Information materials on the operational procedures of the Fund in local languages (where relevant) and distribution lists of recipients Write up of the coordination process, and convening schedule Meeting minutes and participant lists documenting engagement of at least xx groups Electronic copy of the annual report, and details of public dissemination channels Links to electronic copies of presentations, information materials, climate and development information disseminated to distribution lists where relevant At least xx information materials on the fund developed and disseminated to at least xx people Coordination process in place but not specific to climate finance. NDA lacks information materials on the operational procedures of the Fund in local languages. 2.1 Country programme, including elements provided in the Fund s Initial Guidelines for Country Programmes 2.2 Summaries of meetings of multistakeholder engagement, including list of participants Copy of country programme, completed using the initial guidance on country programmes prepared by the GCF secretariat Background documentation on the programme, and links to public dissemination channels Agendas and summaries from workshops convened as part of the country programme process Short note on lessons learned from country programming, and good practices in stakeholder engagement Comprehensive country programme on GCF not developed yet.

15 PAGE 14 OF 14 Annex II. Implementation and Disbursement Schedule Implementation Year 1 Year Output 1 Activity 1 (Strengthening institutional capacities so that the NDA can effectively fulfil its role) Activity 2 (Support ongoing engagement of stakeholders at national and sub-national level) Activity 3 (Supporting the appropriate oversight of Fund activities at the country level) Activity 4 (Developing and disseminating informational and awareness-raising materials) Output 2 Activity 1 (Identifying strategic investment priorities and stocktaking of existing strategies, policies, and needs assessments) Activity 2 (Developing a country work programme (CWP) that identifies strategic priorities for engagement with the fund) Disbursement (specify amount & schedule) USD 120, (and acc. to Section D.2) USD 130,000 (and acc. to Section D.2) USD 50, (and acc. to Section D.2)

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