Green Climate Fund & Role of National Designated Authority (NDA)
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1 Government of Nepal Ministry of Finance International Economic Cooperation and Coordination Division Green Climate Fund & Role of National Designated Authority (NDA) 29 March 2017 Lal Bahadur Khatri Under Secretary, National Project Director, GCF Readiness Programme Ministry of Finance
2 Presentation Outline Country Brief Green Climate Fund Understanding National Designated Authority (NDA) Readiness Programme
3 Country Brief Nepal is one of the most vulnerable countries in the world to climate change (ranked 10 th in the 2015 Climate Change and Environmental Risk Atlas 1 ) MoF Implementing climate budget code since 2012/13 and approximately % of the national budget for the fiscal year 2016/17 is climate related. GoN made policy provision of channeling at least 80 % of the available climate finance to the climate vulnerable communities. Nepal is operationalizing GCF to meet the growing financial needs for national adaptation and mitigation priorities. 1 Maplecroft identifies 32 extreme risk countries based on its Climate Change Vulnerability Risk Index which evaluates the sensitivity of populations, the physical exposure of countries, and governmental capacity to adapt to climate change over the next 30 years.
4 Green Climate Fund in Brief The Green Climate Fund first proposed at COP 15 in Copenhagen, Denmark, 2009 to encourage parties to limit or reduce greenhouse gas (GHG) emissions guided by the principle of "common but differentiated responsibilities GCF established by the United Nations at COP 16 in Cancun, Mexico 2010 by 194 Sovereign governments Launched with Governing Structure during COP 17 in 2011 (Durban) as an operating entity of the financial mechanism of UNFCCC; Fully operationalizing since 2015 Signed after Paris Agreement Promotes low-emission and climate-resilient development pathways to developing countries to limit or reduce their GHG emissions and to adapt to the impacts of CC Largest Fund dedicated to Climate Change 10.3 Billion Pledged and 10.1 Billion signed and 1.5 Billion committed for 35 Projects as of now. Unique in diversity of Accredited Entities i.e. National entities, UN agencies, CSOs, Banks etc.)
5 Green Climate Fund : Portfolio & Priorities Strategic Areas: - 8 strategic impacts of adaptation & mitigation - Public and/or private sector projects/prorgammes Allocation Framework - 50:50 Allocation for mitigation & adaptation - Priorities on vulnerable countries
6 GCF Architecture GCF identified National Designated Authority in the Countries Strong country ownership based on countries priorities
7 GCF Accreditation Process ACCREDITATION: NATIONAL, INTERNATIONAL, REGIONAL GCF promotes Direct Access of funding through National Implementing Entities (NIEs) NIEs are accredited through a decision of the GCF Board Fit-for-Purpose Approach to Accreditation are: Fiduciary Functions Project management, Grant Award, On-lending / blending Project Sizes Micro: under 10 MUSD, Small: under 50 MUSD, Medium: under 250 MUSD, Large: over 250 MUSD Environment & Social Risk categories Low, Medium and High
8 GCF Mandate on NDA Nominated by governments to act as the core interface between a developing country and the Fund Communicates country s strategic priorities for financing lowemission and climateresilient development
9 Role of MoF as the NDA i. Serve as the point of communication (interface) with the Fund. ii. Provide leadership on the deployment of readiness and preparatory support funding in the country, iii. Provide broad strategic oversight aligned to national CC priorities, iv. Convene national stakeholders including public, private and civil society stakeholders, v. Facilitate accreditation process for National Implementation Entities (NIEs) vi. Provide Nomination Letters to be eligible for direct access Accredited Entities, vii. Facilitate GCF funding proposals development process, viii. Facilitate to implement GCF funded projects/ programmes in the country, ix. Provide No Objection letter to programmes /projects
10 Proposed Governance Mechanism of NDA Climate Finance Steering Committee (9 Members, Chair Secretary, MoF) GCF National Designated Authority/IECCD, MoF (Chair Joint Secretary, Chief of IECCD, MoF) Climate Finance Unit (3 member team lead by Under Secretary of IECCD) Technical Committee (7 Members, Chair Chief of CFU)
11 GCF Readiness Programme Strengthening national capacities to effectively and efficiently plan for, access, manage, deploy and monitor climate finance through Green Climate Fund. Implemented by: Ministry of Finance / International Economic Cooperation Coordination Division, Government of Nepal Technical Assistance: UNDP Nepal and UN Environment (Paris) Duration: 18 March 2016 to 31 Dec 2017 Funded by: German Government (BMUB ICI)
12 THANK YOU!!
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