with UNEP for the Republic of Honduras 28 January 2018 Strategic Frameworks

Transcription

1 with UNEP for the Republic of Honduras 28 January 2018 Strategic Frameworks

2 PAGE 1 OF 30 Ver. 20 March 2017 Readiness and Preparatory Support Proposal How to complete this document? - A readiness guidebook is available to provide information on how to access funding under the GCF Readiness and Preparatory Support programme. It should be consulted to assist in the completion of this proposal template. - This document should be completed by National Designated Authorities (NDAs) or focal points with support from their delivery partners where relevant. - Please be concise. If you need to include any additional information, please attach it to the proposal. - Information on the indicative list of activities eligible for readiness and preparatory support and the process for the submission, review and approval of this proposal can be found on pages of the guidebook Where to get support? - If you are not sure how to complete this document, or require support, please send an to countries@gcfund.org. We will aim to get back to you within 48 hours. - You can also complete as much of this document as you can and then send it to countries@gcfund.org. We will get back to you within 5 working days to discuss your submission and the way forward. Note: Environmental and Social Safeguards and Gender Throughout this document, when answering questions and providing details, please make sure to pay special attention to environmental, social and gender issues, in particular to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult page 4 of the readiness guidebook for more information.

3 PAGE 2 OF 30 Ver. 20 March 2017 SECTION 1: SUMMARY 1. Country submitting the proposal 2. Date of initial submission 3. Last date of resubmission (if applicable) 4. Which entity will implement the Readiness and Preparatory Support project? (Provide the contact information if entity is different from NDA/focal point) 5. Title of the Readiness and Preparatory Support Proposal Country name: Republic of Honduras Name of institution (representing National Designated Authority or Focal Point): Secretariat of State for Energy, Natural Resources, Environment and Mining Name of official: Mr. José Antonio Galdames Position: Minister Telephone: joseantoniogaldames@gmail.com; despachoserna@gmail.com; cooperacionserna@gmail.com Full Office address: Despacho de Energía, Recursos Naturales y Ambiente, 200 metros al Sur del Estadio Nacional. 01/07/ /07/ /09/ /11/2017 National Designated Authority Delivery partner Accredited entity Ermira Fida, Green Climate Fund Coordinator UN Environment UN complex; Nairobi, Kenya Office land line: (254-20) Mobile: ermira.fida@unep.org Leo Heilemann Director, Regional Office for Latin America; Panama Telephone: (507) (507) leo.heileman@unep.org Supporting strategic planning to engage with the GCF and comply with the national commitments under the Paris Agreement regarding the LULUCF sector The proposed project proposal is aimed at strengthening the strategic planning to engage with the GCF and comply with the national commitments under the Paris Agreement regarding the LULUCF sector, through an overarching approach that will tackle: 6. Brief summary of the request (200 words) a) Strengthening capacities of institutions related to the design and compliance with the national climate change agenda and national commitments under the Paris Agreement, particularly on the LULUCF sector; b) Strengthening strategic planning to effectively engage with the GCF, regarding the LULUCF commitments under the Paris Agreement, through an update of the NDC, the support of a more robust programme and project portfolio, and a strategic investment priorities identification in the LULUCF sector; c) Designing and institutionalizing a periodic system to update, monitor and report the LULUCF NDC according to new information. These activities will complement the efforts of the NDA to develop and subsequently update a Country Work Programme with the GCF by bringing new technical and institutional capacities in a specific sector, and bringing new inputs such as technical studies, data analyses, plans (e.g. investment plan), and reviewed national targets under the Paris Agreement through the NDC in the LULUCF sector. All this new information will allow the NDA to better orient the proposed project and programmes under the Country Work Programme ensuring country ownership and synergies with national policies.

4 PAGE 3 OF 30 Ver. 20 March Total requested amount and currency $764, Anticipated duration 18 months Yes No The Secretariat of State for Energy, Natural Resources, Environment and Mines (MiAmbiente) of Honduras in conjunction with the Presidential Clima plus Office (Clima+), is having a national programmatic view to access and implement the readiness funds available for the country under the GCF Readiness and Preparatory Support Programme to strengthen its institutional and technical capacity, as well as strengthen its strategic planning process for the climate change agenda. Doing so, the country pursues to enhance country ownership and access to the Green Climate Fund (GCF). MiAmbiente has already access and received a first disbursement of the approved 300,000 USD grant from the 2016 country allocation under the Readiness Preparatory Support of the GCF for the following activities: Activity 1: Strengthening the NDA Activities aim to strengthen and support MiAmbiente in fulfilling its role and responsibility as Focal Point to the Green Climate Fund through: fostering coordination of different divisions within MiAmbiente and with other key Ministries on matters related to the Fund; ensuring multi stakeholder consultation (including Private Sector and Indigenous People) in all the different phases of engagement with the Fund; establishing and implementing a system for reviewing proposals for the Fund and issuing recommendations (non-objection procedure), organizing trainings and exchange of experiences, and preparing, publishing and transmitting information related to the engagement with the Fund. 9. Is the country receiving other Readiness and Preparatory Support related to the GCF? Activity 2: Strategic Engagement Framework with the Fund Activities aim at developing a country Programme that will include identification of elements such as country priorities, private sector engagement, timelines, planning on financial investments, and programme and project ideas to be further developed into full proposals. Honduras has also received the support from the GCF Readiness Preparatory Support for Direct Access Entity on the accreditation gap assessment and action plan for CABEI and for Fundación Vida, each institution receiving 37,000 USD. In the case of CABEI the gap assessment and action plan was finalized and the entity accredited. In the case of Fundación Vida the gap assessment and action plan was also finalized but it is necessary to fulfil the gaps identified. Moreover, for the next Readiness Preparatory Support deadline at the end of July 2017, Honduras is submitting another readiness proposals on adaptation planning aiming at sustainably build country capacity to effectively plan, implement, monitor and report strategic national adaptation processes (mainly the National Adaptation Plan and the Adaptation National Determined Contribution) to achieve the goals set-up under these processes, reducing country vulnerabilities and increasing resilience. This readiness proposal will be implemented in a three year period. Continuing with this programmatic view under the Readiness Preparatory Support, and considering that the forest sector is one of the priorities in the country, Honduras is submitting the present readiness proposal to complement the two previously described readiness proposals mentioned above, focusing this time on the strategic framework in the LULUCF sector. All three projects will pursue enhanced country ownership and access to the Fund, all the proposals will be implemented under the same operational structure (lead by MiAmbiente as a NDA under a National Readiness and Preparatory Support Programme in the Project Coordination Office), and they will be guided and supervised by the same Steering Committee ensuring coordination, complementarity, and efficiency in implementation. Moreover, whereas the proposal aimed at the DNA strengthening and strategic engagement framework is pursuing the design of a Country Programme based on the existing policies and climate change commitments, this proposal goes one step forward reviewing and up-dating

5 PAGE 4 OF 30 Ver. 20 March 2017 those international commitments (folowing the request of decissión 1/CP21 paragraphe 24) to ensure the projects and programmes that will be under the Country Programme respond to ambitious goals. Furthermore, this proposal will benefit from the work done under the first readiness proposal currently under implementation by using the guides and methodologies that are being designed to ensure stakeholder engagement on the GCF processes in Honduras, especially full and effective participation of women and indigenous people. Regarding the private sector, the first readiness proposal is focusing on designing a private sector strategy, and this proposal will complement these efforts through fostering a structure dialogue and performing an analysis of the barriers and risks that have limited private investment to contribute to the targets set under the LULUCF NDC and other national and international targets. This proposal will also foster that the new and reviewed measures and policies under the LULUCF NDC, and the prioritation and cost analisis of those will constitute the bases of a project and programme pipeline under a more robust and ambition Country Programme.

6 PAGE 5 OF 30 Ver. 20 March 2017 SECTION 2: COUNTRY READINESS LOGICAL FRAMEWORK Please complete the table below, which enables a country to assess its readiness for the GCF and set targets for strengthening its readiness, including proposed outputs and activities to improve the country s readiness. For further guidance on completing the table, please refer to the guidebook Accessing the GCF Readiness and Preparatory Support Programme. OUTCOMES 1 BASELINE TARGET ACTIVITIES (including key outputs or deliverables where applicable) 1. Strengthened capacities of institutions related to the design and comply of the national climate change agenda and international commitments, particularly on the LULUCF sector Analysis, design and institutionalization of roles and mandates of the institutions in charge of complying, monitoring and reporting of the NDC regarding the LULUCF sector (deliverables: A manual containing the analysis, design and institutionalization of roles and mandates of the institutions in charge of complying, monitoring and reporting of the NDC regarding the LULUCF sector / Completion: Q1Y1) Reviewed proposal of the regulatory framework to ensure the effective and efficient operation of the institutional arrangements defined under (deliverables: reviewed proposal of the regulatory framework for the institutional arrangements for LULUCF NDC complying, monitoring and reporting / Completion: Q2Y1) Development and implementation of a technical capacity building plan that includes, inter alias, south-south cooperation (e.g. countries implementing a forest investment plan, countries with a NDC monitoring system in place for the LULUCF sector), webinars and meetings attendance (e.g. NDC round tables, 2018 Facilitative Dialogue), and community of practice (deliverable: technical capacity building plan, minutes of training workshops and back to office reports of the south-south cooperation and meetings attended / Completion: Q2Y2 ) Support a formal structure lead by the government under the leadership of the NDA in conjunction with other relevant institutions (such as Secretary of General Coordination of Government, and Clima+) to gather all different donors, accredited entities and multi and bilateral organizations working on LULUCF initiatives to coordinate and orient the different actions, support a GCF programme and project pipeline and ensure alignment with the results 1 Based on decisions: B.08/10, annexes XII, XIII & XIV; B.08/11; B.11/10, annex I; B.12/20, annex I

7 PAGE 6 OF 30 Ver. 20 March Strengthened strategic planning to effectively engage with the GCF, regarding the LULUCF commitments under the Paris Agreement 2.1 LULUCF NDC reviewed, up dated and submitted to the UNFCCC 2.2 Identified strategic investment priorities regarding the LULUCF NDC and strengthened private sector participation management framework of the GCF and the country NDC target (deliverables: constituent document of the cooperation round table and minutes of meetings / Completion: Q3Y1) Developed a road map to implement the current and reviewed LULUCF NDC, ensuring synergies with ongoing and planed initiatives, and identifying strategic priorities for engagement with the GCF under this sector, as well as identifying potential project and programmes to fulfil a Country Work Programme (deliverable: A road map to implement the current and reviewed LULUCF NDC / Completion: Q1Y2) Analysis of the initiatives, measures and policies currently under implementation, as well as those planned, that are related to the LULUCF NDC (Restauration Plan, Water Forest and Soils Master Plan, REDD+ strategy, Agroforestry Plan, Bonn Challenge, etc.), identification of voids and barriers, synergies and complementarities (deliverable: document of analysis of the initiatives, measures and policies in implementation or planning in the LULUCF sector / Completion: Q2Y1) Review and up-date of the current LULUCF NDC in the light of new information generated during 2016 and 2017 (INGEI, Forest Reference Emission Level) after the NDC submission to the UNFCCC in 2015 (deliverable: LULUCF NDC updated / Completion: Q1Y2) Participatory workshop, ensuring gender equity and participation of indigenous populations and other relevant stakeholders, to define afforestation/reforestation concepts according to the country on the framework of the LULUCF NDC (deliverable: afforestation/reforestation definition agreed in a participatory workshop / Completion: Q3Y1) Develop a gender equity plan and ensure its incorporation in the LULUCF up-dated NDC and the proposed programmes and projects to advance the LULUCF NDC (deliverable: gender equity plan / Completion: Q4Y1) Socialization and technical and political validation through workshops under the climate change platforms of the proposed up-dated LULUCF NDC to the key actors, ensuring active and effective participation of indigenous and afro Hondurans people, private sector, and women (deliverable: technical and political validation minutes and documents/ Completion: Q2Y2) Development and implementation of a road map for the political and technical validation of the LULUCF up-dated NDC (e.g. under the Congress), including the political incidence (deliverable: road map for political and technical validation of the LULUCF up-dated NDC / Completion: Q1Y2) Perform a cost analysis of the prioritised mitigation policies and measures defined under the updated LULUCF NDC (deliverable: cost analysis document of the prioritised mitigation policies and measures defined under the up-dated LULUCF NDC / Completion: Q1Y2) Design an investment forest plan (deliverable: forest investment plan / Completion: Q2Y2)

8 PAGE 7 OF 30 Ver. 20 March Designed and institutionalized a periodic and progressive system to up-date, monitor and report the LULUCF NDC according to new information Support the private sector engagement with the GCF through technical assistance with at least one draft proposal developed to be submitted to the GCF to access the Private Sector Facility (PSF) (deliverable: draft PSF proposal / Completion: Q2Y2) Perform an analysis of the financial needs, gaps, barriers, ways to leverage and risks, seeking long term financial sustainability of the investment to contribute to the targets set under the LULUCF NDC and other national and international targets such as the Bonn Challenge (deliverable: analysis document of the financial needs, gaps, barriers, ways to leverage and risks, seeking long term financial sustainability of the investment to contribute to the targets set under the LULUCF NDC and other national and international targets / Completion: Q3Y1) Structure a dialogue with the private sector, complementing the efforts performed under the first approved readiness grant, through sharing information considering the results obtained above through events, workshops and meetings to foster and catalyze investments by the private sector to contribute to the targets set under the LULUCF NDC. (deliverable: meeting minutes of the structure a dialogue with the private sector / Completion: Q2Y2) Creation of the operational structure to review, update, support access to climate finance flowsparticularly through the engagement with the GCF, guide implementation, monitor and periodically submit to the UNFCCC the future country NDC in the LULUCF sector (deliverable: legal proposal document of the creation of the operational structure to review, update, support financial access, guide implementation, monitor and periodically submit to the UNFCCC the LULUCF NDC /Completion: Q2Y2) Analysis of the information and monitoring systems of the national institutions related to the LULUCF sector, and its interlinkages with the NDC regarding the LULUCF sector (deliverable: Analysis document of the information and monitoring systems of the national institutions related to the LULUCF sector, and its interlinkages with the NDC regarding the LULUCF sector /Completion: Q3Y1) Protocol proposal to ensure information and data exchange relevant to the LULUCF NDC among institutions (deliverable: protocol proposal to ensure information and data exchange relevant to the LULUCF NDC among institutions / Completion: Q1Y2) At least one monitoring report, according to the UNFCCC requirements, showing progress towards the achievement of the targets established under the LULUCF NDC and the long term LULUCF strategy (deliverable: monitoring report showing progress towards the achievement of the targets established under the LULUCF NDC / Completion: Q2Y2)

9 PAGE 8 OF 30 Ver. 20 March 2017 TOTAL Institutionalization and sustainability of the reports under the activity (deliverable: legal proposal document of the institutionalization and sustainability of the monitoring LULUCF NDC reports / Completion: Q2Y2) Monitoring, oversight and streamline of climate finance flows in the LULUCF sector (deliverable: report of monitoring, oversight and streamline climate finance flows in the LULUCF sector/ Completion: Q2Y2).

10 PAGE 9 OF 30 Ver. 20 March 2017 SECTION 3: ADDITIONAL INFORMATION Please explain how this grant will help deliver on the country s readiness needs as identified above and build on institutions, processes or existing work already underway in the country (maximum 500 words) Due to its irregular topography, Honduras is a country suited for forestland. Recent new data from the Forest National Evaluation (2017) states that Honduras has a forest area of 5,4 million ha, equivalent to 47,72% of its national territory. However, comparing the 2005 and 2015 measurements shows that the average annual net loss of forest is 24,051 ha. Evidencing the problem that the country faces regarding deforestation. Moreover, according to the Forest Emissions Reference Level (FERL) for the period , the average annual CO 2 forest emissions were 5,034, tons; for the period were 7,707, tons; and for the period were 7,098, tones. Also pointing out a climate change mitigation challenge when it comes to reducing Green House Gases (GHG) emissions from the Land Use, Land-Use Change and Forestry (LULUCF) sector. The Republic of Honduras, understanding the great challenges faced by climate change, but also visualizing the opportunities and benefits that can come from the climate action, has ratified the Paris Agreement and committed nationally and internationally to climate change contributions. The Honduras NDC, in terms of mitigation, marks a reduction of 15% of the emissions compared to the BAU scenario by 2030 for the set of sectors where data was available: industry, energy, agriculture and solid waste. In the case of the LULUCF sector, since there were not enough robust data available for this sector, it was not possible to establish an emission reduction target. However, aware of the relevance of this sector for the national priorities, two goals were set under the LULUCF sector for the NDC. Thus, Honduras assumed as a sectoral objective the afforestation / reforestation of 1 million hectares by 2030; and to reduce 39% of wood consumption in households through the NAMA of efficient stoves, helping also to reduce deforestation. In the case of the afforestation/reforestation goal under the NDC, no policies or measures to achieve this goal were identified or prioritized. Since the operation start of the GCF, in Honduras many donors, multilateral and bilateral agencies (such as FAO, UICN, UNDP, BID, Rainforest Alliance) have shown interest on support national climate action by submitting proposals to the GCF, and many of them being in the LULUCF sector. However, lack of adequate institutional capacity to coordinate, guide actions, and ensure the actions contribute to national needs and commitments under the appropriate strategic frameworks, have prevented Honduras of ensuring full country ownership. Some of the barriers that the country is encountering when it comes to strategic frameworks in the LULUCF sector are: i) NDA focal point and its team in charge of the GCF portfolio not having sufficient capacity and capability to adequately channel the proposed climate action into the national strategic planning, due to lack of human resources and in some cases limited information of the GCF guides, requirements and functions, since they are constantly evolving; ii) difficulties ensuring effective engagement and ownership by relevant national and sub-national stakeholders such as the local governments, private sector, local communities, academia and civil society organizations, including indigenous and Afro Honduran peoples and women s organizations, throughout the project cycle; iii) lack of synergies among the various strategic plans on the forest sector such as Restauration Plan, Agroforestry Plan, NDC in the LULUCF sector, Bonn Challenge, Water Forest and Soil Master Plan, and National Plan; iv) the NDC in the LULUCF sector lacks a definition of policies and measures, and a cost analysis to carry on these policies and measures. Furthermore, historical emissions and projections of the LULUCF sector could not be estimated given the high uncertainty in the sector; v) identifying national priorities for investment in climate change related activities in the LULUCF NDC sector; vi) limited capacity to respond to the donors, accreditaed entities, multilateral and bilateral organization proposed actions and coordinate them ensuring that they contribute to national needs. vii) limited capacity to link the initiatives of programs and projects that are emerging in the LULUCF sector to be financed by the FVC, and the goals the country would like to target in the medium and long term under the Paris Agreement, making it difficult to build a robust and ambitious GCF portfolio of programs and projects that match the climate national and global needs. Even tough, some of these barriers such as i) and ii) are being tackled through the first readiness proposal mentioned in section 9 above through strengthening the NDA activities, more efforts need to be done regarding the specific LULUCF sector, which is attracting much of the climate finance efforts in the country and requires special attention. For that reason, this readiness proposal aims at strengthening the strategic planning to engage with the GCF and comply with the national commitments under the Paris Agreement regarding the LULUCF sector, through an overarching approach that will tackle:

11 PAGE 10 OF 30 Ver. 20 March 2017 a) Strengthening capacities of institutions related to the design and compliance with the national climate change agenda and international commitments, particularly on the LULUCF sector; b) Strengthening strategic planning to effectively engage with the GCF, regarding the LULUCF commitments under the Paris Agreement, through an update of the NDC, the support of a more robust programme and project portfolio, and a strategic investment priorities identification in the LULUCF sector; c) Designing and institutionalizing a periodic system to update, monitor and report the LULUCF NDC according to new information. The construction of a portfolio of projects and programs to be financed by the GCF must necessarily respond to the country's short-, medium- and long-term climate goals. These goals are defined in the NDC and therefore are established national and international commitments. However, in the case of Honduras, as in many other countries, NDC was a relatively rapid exercise that failed to reach the necessary detail of the measures and policies to be carried out and that it was not able to establish robust mitigation targets and adaptation. Therefore, it is necessary to be able to redefine the information (policies, measures, projections and targets) contained in the NDC, especially in the LULUCF sector where several initiatives to be financed by the FVC are already emerging, and to link the initiatives that are being developed, and those that would need to be promoted with this new NDC under a portfolio of programs and robust project. The activities mentioned above will complement the efforts of the NDA to develop and subsequently update a Country Work Programme with the GCF by bringing new technical and institutional capacities in a specific sector, and bringing new inputs such as technical studies, data analyses, plans (e.g. investment plan), and reviewed national targets under the Paris Agreement through the NDC in the LULUCF sector. All this new information will allow the NDA to better orient the proposed project and programmes under the Country Work Programme ensuring country ownership and synergies with national policies. Under a pragmatic vision of all readiness proposals, the aim is to achieve a better and more efficient complementarity and coordination of actions from a consolidated and trained team that will be able to respond to the constant changes, needs and requirements that are periodically agreed under the UNFCCC and under the GCF. It is also necessary to emphasize that it is not possible to see the stackeholder engagment as a very specific issue in time to be realized only from one project in one year, but must be seen as a continuous process in time that is increasingly reinforced through reaching to more relevant actors, to have better manuals and guides of participation, and to train more diversity of sectors facilitating information that is continuously updated (GCF information, NDC commitments, UNFCCC decisions, etc). In the case of Honduras, it is important to mention that by the end of 2017, general elections will be held, with the usual consequent change of technical and political staff in their institutions, which makes it more imperative to continue working on capacity building for all relevant actors and stakeholders for the next few years. Therefore, this project will collect the inputs and results of the first readiness proposal (training and preparation of guides of indigenous peoples and gender) and will continue the capacity building on these bases.

12 PAGE 11 OF 30 Ver. 20 March 2017 SECTION 4: BUDGET, PROCUREMENT, IMPLEMENTATION AND DISBURSEMENT 4.1. Budget Plan COST CATEGORIES EXPENDITURE AND IMPLEMENTA- TION SCHEDULE OUTCOMES ACTIVITIES TOTAL COST 1. Strengthened capacities of institutions related to the design and comply of the national climate change agenda and international commitments, particularly on the LULUCF sector Analysis, design and institutionalization of roles and mandates of the institutions in charge of complying, monitoring and reporting of the NDC regarding the LULUCF sector Reviewed proposal of the regulatory framework to ensure the effective and efficient operation of the institutional arrangements defined under Development and implementation of a technical capacity building plan Support a formal structure lead by the government under the Clima+ office to gather all different donors, accredited entities and multi and bilateral organizations working on LULUCF initiatives Consultants or service contract Travel Workshops/ Trainings $ $5.000 $ $1.000 $ $ $ $ Others 6m 12m 18m $ $ $ $5.000 $ $ $ $ $ $7.500 $ $ $ Developed a road map to implement the current and reviewed LULUCF NDC, ensuring synergies with ongoing and planed initiatives, and identifying strategic priorities for engagement with the GCF under this sector. $ $ $5.000 $ $5.000

13 PAGE 12 OF 30 Ver. 20 March Strengthened strategic planning to effectively engage with the GCF, regarding the LU- LUCF commitments under the Paris Agreement 2.1 LULUCF NDC reviewed, up dated and submitted to the UN- FCCC 2.2 Identified strategic investment priorities regarding the LULUCF NDC and strengthened private sector participation Analysis of the initiatives, measures and policies currently under implementation, as well as those planned, that are related to the LULUCF NDC Review and up-date of the current LULUCF NDC in the light of new information generated during 2016 and Participatory workshop to define afforestation/reforestation concepts Develop a gender equity plan and ensure its incorporation in the LULUCF up-dated NDC and the proposed programmes and projects to advance the LULUCF NDC Socialization and technical and political validation through workshops under the climate change platforms of the proposed up-dated LULUCF NDC to the key actors Development and implementation of a road map for the political and technical validation of the LULUCF up-dated NDC, including the political incidence Perform a cost analysis of prioritised mitigation policies and measures defined under the updated LULUCF NDC $ $ $ $ $ $ $ $5.000 $ $ $ $ $ $ $ $ $ $ $ $ $8.100 $ $ $ $ $ Design an investment forest plan $ $ $ Support the private sector engagement with the GCF through technical assistance with at least one draft proposal developed to be submitted to the GCF to access the Private Sector Facility $ $ $15.000

14 PAGE 13 OF 30 Ver. 20 March Perform an analysis of the financial needs, gaps, barriers, ways to leverage and risks, seeking long term financial sustainability of the investment to contribute to the targets set under the LULUCF NDC and other national and international targets such as the Bonn Challenge Structure a dialogue with the private sector, complementing the efforts performed under the first approved readiness grant $ $ $ $ $ $ $2.500 $ $ $ Designed and institutionalized a periodic and progressive system to up-date, monitor and report the LULUCF NDC according to new information Project Management 2 (6% of total activities and contingency) Creation of the operational structure $ $ $8.000 $8.500 $ Analysis of the information and monitoring systems of the national institutions related to the LULUCF sector, and its interlinkages with the NDC regarding the LULUCF sector Protocol proposal to ensure information and data exchange relevant to the LULUCF NDC among institutions At least one monitoring report, according to the UNFCCC requirements, showing progress towards the achievement of the targets established under the LULUCF NDC and the long term LULUCF strategy Institutionalization of the reports under the activity Monitoring, oversight and streamline of climate finance flows in the LULUCF sector. $ $ $ $5.000 $5.000 $5.000 $ $ $5.000 $7.500 $ $ $ $5.000 $5.000 $5.000 $ $ $ Coordinator (part time) $ $ $6.000 $6.000 $6.000 Finance and administration office $ $ $6.000 $6.000 $6.000 Steering Committee meetings $1.000 $500 $500 $400 $300 $300 2 Being a project executed by MiAmbiente, with UNEP as delivery partner, part of the funds are allocated for a project coordinator (part-time within the programmatic view) and a administration staff. Funds are also allocated for periodic (annual) meetings of the Project Board (two meetings).

15 PAGE 14 OF 30 Ver. 20 March 2017 Audit $3.000 $3.000 $- $1.500 $1.500 CONTINGENCY (UP TO 5% OF TOTAL ACTIVI- TIES) DELIVERY PARTNER FEE (UP TO 10% OF TOTAL ACTIVITIES) $ $ $ $ $ $ $ $ TOTAL $ $ $ $ $ $ $ $ Procurement Plan For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in section 2, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below. Also, please feel free to replicate this table on Excel spreadsheet if needed. ITEM ITEM DESCRIPTION ESTIMATED COST (US $) PROCUREMENT METHOD THRESHOLDS (Min-Max monetary value for which indicated procurement method must be used) ESTIMATED START DATE PROJECTED CONTRACTING DATE Goods and Non-Consulting Services Stationary and office supplies Purchase of IT items Service contract For activities 1.1.1/1.1.4 (stationary office supplies to equip the project team) For activities 1.1.4/3.1.1 (three computers for the service contract project team, internet and telephone service) Technical expert with a service contract under activity (18m) to support a formal structure to gather all different donors and multi and bilateral organizations working on LULUCF under the coordinator supervision 3,500 Low value procurement < US$ 10,000 Y1Q1 Y1Q2 18,000 Request for quotations > US$ 10,000 Y1Q1 Y1Q3 57,600 Request for quotations > US$ 10,000 Y1Q1 Y1Q2

16 Service contract Service contract Service contract Printing and publications Workshops and trainings Technical expert with a service contract under activity (15m) to foster activities related to the review and up-date of the LULUCF NDC under the coordinator supervision Service contract under activity 3.1.4/Part time Coordination Project Management (18m) Service contract administration project management (18m) For activity 1.1.5/2.2.5 to disseminate project information At least five (7) workshops and trainings for various activities: 1) Analysis, design and institutionalization of roles and mandates of the institutions in charge of complying, monitoring and reporting of the NDC regarding the LULUCF sector 2) Development and implementation of a technical capacity building plan 3) Support a formal structure for coordination of donors 4) Participatory workshop to define afforestation/reforestation concepts 5) Socialization and technical and political validation through workshops under the climate change platforms of the proposed up-dated LULUCF NDC to the key actors 6) Structure a dialogue with the private sector 7) Elaboration and institutionalization of the monitoring report READINESS AND PREPARATORY SUPPORT PAGE 15 OF 30 Ver. 20 March ,500 Request for quotations > US$ 10,000 Y1Q1 Y2Q2 46,800 Request for quotations > US$ 10,000 Y1Q1 Y1Q2 18,000 Request for quotations > US$ 10,000 Y1Q4 Y2Q1 7,500 Low value procurement < US$ 10,000 Y2Q1 Y2Q2 88,000 Travels Travels for various activities 90,500 Request for quotations Low value procurement Request for quotations Low value procurement > US$ 10,000 < US$ 10,000 > US$ 10,000 < US$ 10,000 Audits Annual audits 3,000 Low value procurement < US$ 10,000 Y1Q4 Y2Q1 Rental office For activity 1.4.2, rental workspace at the OCP 12,000 Request for quotations >US$ 10,000 Y1Q1 Y1Q1 Y1Q1 Y1Q1 Y2Q2 Y2Q2

17 Consultancy Services Consultant Consultant Consultant Consultant Consultant Consultant SUB-TOTAL (US $) 385,400 National or int. consultant under activity to design a proposal of the regulatory framework National or int. consultant firm for activities 1.1.5/2.1.1/2.1.2/2.1.4/2.2.1 /3.1.2/3.1.3 to undertake all activities related to review and update of the current LULUCF NDC in the light of new information generated during 2016 and 2017 National or int. consultants for activity to design an investment forest plan National or int. consultants for activity to support the private sector engagement with the GCF National or int. consultant for activity to perform an analysis of the financial needs, gaps, barriers, ways to leverage and risks, seeking long term financial sustainability of the investment to contribute to the targets set under the LULUCF NDC and other national and international targets such as the Bonn Challenge National or int. consultant for activity to monitoring, oversight and streamline of climate finance flows in the LULUCF sector SUB-TOTAL (US $) 285,000 TOTAL COST (US $) $670,400 READINESS AND PREPARATORY SUPPORT PAGE 16 OF 30 Ver. 20 March ,000 Recruitment N/A Y1Q1 Y1Q2 145,000 Recruitment N/A Y1Q2 Y1Q4 85,000 Recruitment N/A Y1Q4 Y2Q1 15,000 Recruitment N/A Y1Q4 Y1Q4 15,000 Recruitment N/A Y1Q3 Y1Q4 10,000 Recruitment N/A Y1Q4 Y1Q4

18 PAGE 17 OF 30 Ver. 20 March 2017 Overall financial management and procurement of goods and services under this readiness and preparatory support proposal will be guided by UN Environment s regulations, rules, policies and procedures, as well as its programme manual. Further, procurement of goods and services will follow the general principles stated under clause 7 of Framework Readiness and Preparatory Support Grant Agreement (Framework Agreement) between Green Climate Fund (GCF) and UN Environment 3. For this readiness and preparatory support proposal, services of a technical nature will be recruited, or acquired, and directly managed by UN Environment, in consultation with Secretariat of State for Energy, Natural Resources, Environment and Mining and GCF s National Designated Authority (NDA) of Honduras. Recruitment and management of consultants will be in accordance with UN Environment rules, policies and procedures. UN Environment will coordinate with Secretariat of State for Energy, Natural Resources, Environment and Mining to procure goods and services in delivering activities at national level (for example meetings, workshops, etc) in accordance with the agreed procurement management plan. 3 UN Environment will comply with its obligation under clause 7(a) of the Framework Agreement, which states The procurement of Goods and Services for Approved Readiness Support Proposals, whether by the Delivery Partner or by a third party, shall be done in accordance with the rules, policies and procedures of the Delivery Partner

19 PAGE 18 OF 30 Ver. 20 March Disbursement schedule Specify the proposed schedule for requesting disbursements from the GCF, including amounts and periodicity. For amounts requested, keep to multiples of USD 5,000, and for periodicity, specify whether it s quarterly, bi-annually or annually only. UN Environment as the Delivery Partner for this Readiness and Preparatory Support Proposal will submit requests to the GCF for the disbursement of grants as per the Framework Readiness and Preparatory Support Grant Agreement between the GCF and UN Environment for approved proposals. Disbursement requests will be signed by the authorised representative of the UN Environment and will include details of the bank account into which the grant will be deposited. UN Environment, the Delivery Partner for this R&P Support Proposal for Honduras, will administer the grant disbursed by the GCF in accordance with UN Environment s regulations, rules, and procedures including maintenance of records of grant, disbursements and expenditure. UN Environment will follow the disbursement schedule as per the Framework Readiness and Preparatory Support Grant Agreement between the GCF and UN Environment. UN Environment will allocate the grant proceeds as appropriate, in accordance with its obligations under clause 5 (Use of Grant Proceeds by the Delivery Partner) of Framework Readiness and Preparatory Support Grant Agreement between Green Climate Fund (GCF) and UN Environment. Disbursement schedule will follow the indicative yearly budget provided in the table above and in accordance with the budget and procurement plan: YEAR AMOUNT Year 1 $486,730 Year 2 $278, Additional information This box provides an opportunity to include further explanations related to the budget, procurement plan and disbursement schedule, including any details on the assumptions to justify costs presented in the budget. Under the travel cost budget are included national travels to ensure participation of actors from different parts of the country, as well as international travels to attend international workshops, seminars and/or meetings. Under the others cost budget are incuded stationary and office supplies, IT purchases, printing and publications, and audits.

20 PAGE 19 OF 30 ver. 20 March 2017 SECTION 5: IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION 3.2. Please attach an implementation map or describe how funds will be managed by the NDA/FP or delivery partner As a Delivery Partner, UN Environment will maintain oversight of management of the readiness funds. UN Environment will manage the funds for the activities under this readiness agreement. As the Delivery Partner for this project, UN Environment will be responsible for overseeing the implementation and evaluation of the project in coordination with the Project Steering Committee (PSC) and the Project Management Unit (PMU). A UN Environment Programme Officer (PO) will be responsible for project supervision to ensure consistency with GCF and UN Environment policies and procedures. The PO functions will include the following: i) participation in the Annual Project Steering Committee (PSC) meetings; ii) clearance of periodic Progress Reports and Project Implementation Reviews; and iii) technical review of project deliverables. MiAmbiente will execute the project. UN Environment will engage The Secretariat of State for Energy, Natural Resources, Environment and Mining as the main national level partner (third party), under a National Readiness and Preparatory Support Programme (Henceforth, National Readiness Programme) that will comprise the various project proposals financed by the GCF Readiness and Preparatory Support. This programmatic view will allow to maximize the human resources (e.g. one administration officer for all the project proposals) and ensure coordination and complementarity among the readiness country initiatives maximizing the impacts. UN Environment will execute an agreement with MiAmbiente+ to clarify its roles and responsibilities on the same. As the national EE, MiAmbiente+ will be accountable to UN Environment (as Delivery Partner) for project execution and for the effective and efficient use of resources. The Project Steering Committee (PSC) will be formed by: The Secretary of State in the Offices of Energy, Natural Resources, Environment and Mines; The Secretary of General Coordination of Government; UN Environment The PSC could invite other institutions related to the project subject to be part of the committee. A representative of UN Environment will also sit in the PSC. The PSC will have a decision-making capacity and will primarily serve to provide project oversight and advisory support, including: a) overseeing project implementation; and b) reviewing annual budget and workplans. The PSC will meet at least once a year to discuss the project's main performance indicators and provide strategic guidance. The National Readiness Programme will use the administration structure of the Project Coordination Office (OCP) led by the Secretary of State of MiAmbiente, and will have an Administration Officer liaison overseeing the projects under this programmatic approach. The OCP will bring support and procure consultancy services necessary to deliver the activities of this project. The OCP has 20 permanent staff and approximately 25 employees assigned to different projects, located in 8 offices through the country; the main office is in Tegucigalpa. Since the OCP started, have been managing 8 projects from different donors: Global Environmental Facility (GEF) Adaptation Fund Forest Carbon Partnership Facility (FCPF) UNREDD+ The following are the projects implemented by the OCP: PROJECT DONOR AMOUNT OF MONEY Addressing climate change risks in water resources in Honduras Adaptation Fund $5,180,000 Support for REDD+ readiness in Honduras FCPF $3,800,000 Third National Communication and First Biannual Update Report GEF $852,000 Marine and coastal project GEF $3,086,000 Productive landscapes GEF $3, 045,455 Mercury project GEF $1,300,000 UNREDD+ National Programme UNREDD+ $3,609,645 Ecosystem-Based Adaptation at the Central Forest Corridor communities Adaptation Fund $4,398,932 Readiness and preparatory support proposal: Strengthening the ND, and Strategic Engagement Framework GCF $300,000

21 PAGE 20 OF 30 ver. 20 March 2017 The National Readiness Programme will have a Readiness Program Coordinator who will supervise and ensure proper execution of all readiness projects. The External Cooperation and Resource Mobilization Office (Ext.coop) of MiAmbiente and the Climate Change Office (DNCC) will both have a technical financial liaison for the Programme. The Programmatic Advisor will also ensure coordination among the readiness initiatives. Each of the project proposals will have a Project Management Unit (PMU) established for day to day management of the project, which will be composed by a Project Technical Coordinator, national technical experts related to the topic, and national and international thematic consultants. For this specific project, the PMU will be linked to the LULUCF NDC Working Group, to provide technical guidance and ensure ownership, communication and reporting on the NDC regarding the LULUCF sector. The LULUCF NDC Working Group will be composed by representatives of the following institutions: relevant governmental institutions, academia, civil society, indigenous and afro Honduran people, and private sector. The following figure illustrates the institutional arrangements of the OCP:

22 The following figure illustrates the institutional arrangements described above: READINESS AND PREPARATORY SUPPORT PAGE 21 OF 30 ver. 20 March 2017 NATIONAL READINESS AND PREPARATORY SUPPORT PROGRAMME Clima Plus Office (senior financial liaison) MiAmbiente (CoopExt; DNCC) Project Coordinator Office (OCP) Steering Project Committee (PSC) Programatic Readiness Advisor Other Readiness Project Units (e.g. Adaptation, NDA support, etc.) Readiness Programme Coordinator and Administartion officer PMU LULUCF NDC Project Technical Coordinator LULUCF NDC Technical working group NationalTechnical specialists Thematic consultants (national and international) Core common programmatic structure Proposed Project Management Unit Other Project Management Units As a Delivery Partner, UN Environment will maintain oversight of management of the readiness funds. UN Environment will, in collaboration with the Honduras NDA manage the funds for the activities under this readiness agreement. UN Environment will agree on a plan with the Honduras NDA to monitor the implementation of the activities using the grant proceeds. UN Environment, through its Regional Office for Latin America and the Caribbean will be responsible for overall coordination, oversight of the implementation of activities and evaluation of the project, which will be done in coordination with the PSC and the national PC. UN Environment will be also responsible for preparing progress reports, monitoring and evaluation reports as appropriate. A UN Environment Programme Officer (PO) will be responsible for project supervision to ensure consistency with GCF and UN Environment policies and procedures. The Programme Officer functions will include the following: a) participation in the Annual PSC meetings; b) the clearance of Progress Reports; and c) the technical review of project deliverables.

23 PAGE 22 OF 30 ver. 20 March 2017 UN Environment will enter into an implementation agreement with the Secretariat of State for Energy, Natural Resources, Environment and Mining, and Presidential Clima+ Office, to clarify its roles and responsibilities related to the above. UN Environment will submit interim and final progress reports to the GCF within one month of completion of the reporting period in accordance with the terms of the of Framework Readiness and Preparatory Support Grant Agreement between GCF and UN Environment Other relevant information This box provides an opportunity to include any important information you wish to bring to the attention of the GCF Secretariat, but did not have an opportunity to provide in the sections above. To avoid any possible conflicts of interest deriving from the delivery partner s role as an accredited entity, the prioritization of investments and projects in the context of this readiness grant, will be made through a broad consultation process with relevant stakeholders, including other potential implementing entities for Honduras. The final validation of these priorities will be carried out by the country s coordination mechanism and institutional arrangements, with the participation of other government agencies, as well as representatives from civil society and private sector, to ensure chosen priorities are fully aligned with national plans and strategies and adequately includes inputs from consulted stakeholders.