GREEN CLIMATE FUND GOVERNANCE MECHANISM IN NEPAL

Similar documents
Green Climate Fund & Role of National Designated Authority (NDA)

with the Ministry of Finance and Planning for the United Republic of Tanzania 08 November 2015 NDA Strengthening & Country Programming

Additional Modalities that Further Enhance Direct Access: Terms of Reference for a Pilot Phase

Decision 3/CP.17. Launching the Green Climate Fund

Initial Modalities for the Operation of the Fund s Mitigation and Adaptation Windows and its Private Sector Facility

with UNDP for the Union of the Comoros 25 June 2015 NDA Strengthening & Country Programming

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

Ethiopia s Climate Resilient Green Economy (CRGE) Facility Terms of Reference

with the National Rural Support Programme (NRSP) for the Islamic Republic of Pakistan 13 November 2015 NDA Strengthening & Country Programming

Getting you there. GCF country programme development guide. Turning aspirations into actions preparing country programme

Organisation strategy for Sweden s cooperation with the Green Climate Fund for

with the Ministry of Finance and Economic Development for the Republic of Mauritius 14 June 2016 NDA Strengthening & Country Programming

Initial Structure and Staffing of the Secretariat

Benin 27 August 2015

AC workshop on the M&E of adaptation Nadi, Fiji, 9-11 September 2013

Relationship with UNFCCC and External Bodies

Strengthening and scaling up the GCF pipeline: establishing strategic programming priorities

Climate Finance Readiness - From Theory to Practice: Case Study from Bangladesh. Page 1

Chad 16 September 2015

Programmatic approach to funding proposals

with UNDP for the Republic of Congo 12 May 2016 NDA Strengthening & Country Programming

with GIZ for the Republic of Vanuatu 11 September 2015 NDA Strengthening & Country Programming

Bangladesh 25 October 2015

Mapping of elements related to project or programme eligibility and selection criteria

with the Food and Agriculture Organization of the United Nations (FAO) for the Former Yugoslav Republic of Macedonia

with GIZ for the Kingdom of Thailand 3 July 2015 NDA Strengthening & Country Programming

Decisions of the Board Eighth Meeting of the Board, October 2014

with the Ministry of Finance and Economic Affairs for the Federal Democratic Republic of Ethiopia 29 May 2015 NDA Strengthening & Country Programming

PARTNERSHIP FOR MARKET READINESS (PMR) Eighth Partnership Assembly Meeting Mexico City, March 3-5, Resolution No. PA8/2014-3

with Caribbean Community Climate Change Centre (5Cs) for Belize 14 December 2016 NDA Strengthening & Country Programming

Workstream II: Govenance and Institutional Arrangements Workstream III: Operational Modalities Revised background note: Direct Access

GCF Readiness Programme Fiji

with UNDP for the Republic of Guinea 16 December 2015 NDA Strengthening & Country Programming

Fourth Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change

Business Model Framework: Structure and Organization

EAST AFRICAN COMMUNITY. CHALLENGES AND OPPORTUNITIES OF CLIMATE CHANGE: Post COP19 Perspective of East African Civil Society Organizations

UN BHUTAN COUNTRY FUND

Adaptation Fund: Helping Countries Adapt to Climate Change through a Range of Flexible Finance Modalities. Washington, D.C.

Executive Summary (in one page)

TOWARDS THE FULL OPERATIONALIZATION OF THE GREEN CLIMATE FUND

TC workshop on lessons learned from relevant funds and institutions. The Adaptation Fund experience. 12 July 2011

Summary and Recommendations by the Standing Committee on Finance on the 2016 Biennial Assessment and Overview of Climate Finance Flows

Opportunities related to the Green Climate Fund

Operational Manual GUYANA REDD-Plus INVESTMENT FUND (GRIF)

GOVERNANCE FRAMEWORK FOR

22 June 2015 NDA Strengthening & Country Programming

Arrangements for the revision of the terms of reference for the Peacebuilding Fund

ANNOUNCEMENT. EXPERT MEETING DRR4NAP Integrating Disaster Risk Reduction into National Adaptation Plans November 2017 Bonn, Germany

with GIZ for the Republic of Peru 29 January 2018 NDA Strengthening & Country Programming

Synthesis report on the progress made in the implementation of the remaining elements of the least developed countries work programme

with UNDP for the Eastern Republic of Uruguay 25 May 2017 NDA Strengthening & Country Programming

READINESS INCEPTION DOCUMENT TEMPLATE. Summary. Country. Date of Submission 26/02/2016. NDA or Focal Point contact details

Agenda. GCF/B.08/01/Rev.01 * 14 October Meeting of the Board October 2014 Bridgetown, Barbados Agenda item 2

with FAO for the Federation of Saint Christopher and Nevis 29 January 2018 NDA Strengthening & Country Programming

with UNDP for the Republic of Liberia 07 December 2015 NDA Strengthening and Country Programming

Accelerating Progress toward the Economic Empowerment of Rural Women (RWEE) Multi-Partner Trust Fund Terms of Reference UN WOMEN, FAO, IFAD, WFP

PMR Governance Framework*

South Sudan Common Humanitarian Fund (South Sudan CHF) Terms of Reference (TOR)

partnership charter I. Background II. Mission

November 23, International Bank for Reconstruction and Development. Charter Establishing The Forest Carbon Partnership Facility

International Policies and Cooperation to Advance an Inclusive Green Economy

with the United Nations Environment Programme (UNEP) for the Republic of South Sudan 01 June 2018 NDA Strengthening & Country Programming

Annex 1 TERMS OF REFERENCE FOR THE STEERING COMMITTEE OF THE COMMONWEALTH CLIMATE FINANCE ACCESS HUB

Background and context of DRR and GIS

with the Development Bank of Seychelles for the Republic of Seychelles 18 December 2017 NDA Strengthening & Country Programming

(Please submit completed form to Summary

III. modus operandi of Tier 2

Technical Support: Governance of Climate Change Finance to Benefit the Poor and Vulnerable, UNDP

REPORT ON THE SOUTH-SOUTH EXCHANGE OF GREEN CLIMATE FUND NATIONAL DESIGNATED AUTHORITIES OF GHANA AND NEPAL

Executive Summary(in one page)

Climate Change Finance in Nepal

South Sudan Common Humanitarian Fund Allocation Process Guidelines

Table of Contents. BioCF ISFL 2015 Annual Report

Aloysius M. Kamperewera [PhD] Ministry of Environment and Climate Change Managment Director for Environmental Affairs

GUIDELINES FOR STRATEGIES IN SWEDISH DEVELOPMENT COOPERATION AND HUMANITARIAN ASSISTANCE

AUDIT REPORT INTERNAL AUDIT DIVISION

Decisions of the Board Thirteenth meeting of the Board, June 2016

STRATEGIC ALIGNMENT OF THE LDCF PIPELINE

IDFC Position Paper Aligning with the Paris Agreement December 2018

with UNDP for the Republic of Haiti 05 June 2017 NDA Strengthening & Country Programming

Guidance from the twentysecond session of the Conference of the Parties: Co-Chairs proposal

Green Climate Fund and the Paris Agreement

with the Ministry of Finance for the Republic of Zambia 01 October 2015 NDA Strengthening & Country Programming

Integrating climate change adaptation into planning and budgeting, Rohini Kohli, UNDP, Regional Dialogue on Climate Resilient Growth and Development,

with the National Agency on Climate Change for the People's Democratic Republic of Algeria 22 December 2017 NDA Strengthening & Country Programming

Competitive process for the selection of the Permanent Trustee

WSSCC, Global Sanitation Fund (GSF)

NATIONAL CLIMATE FINANCE INSTITUTIONS. Their challenges and how the Fit for the Funds Programme can respond to them

1. Executive Summary

Indicative Guidelines for Country-Specific Resource Mobilization Strategies

11 October 2017 NDA Strengthening & Country Programming

10 October 2017 NDA Strengthening & Country Programming

Ethiopia One UN Fund Terms of Reference

SURVEY GUIDANCE CONTENTS Survey on Monitoring the Paris Declaration Fourth High Level Forum on Aid Effectiveness

Decision 3/COP.8. The 10-year strategic plan and framework to enhance the implementation of the Convention ( )

DECISION ADOPTED BY THE CONFERENCE OF THE PARTIES TO THE CONVENTION ON BIOLOGICAL DIVERSITY AT ITS ELEVENTH MEETING

Work programme of the Secretariat for 2019 and administrative budget

Agenda item 18: Policies on the formal replenishment process

with the Ministry of Finance and Economic Planning for the Cook Islands 25 August 2015 NDA Strengthening

General principles and indicative list of eligible costs covered under GCF fees and project management costs

Transcription:

GREEN CLIMATE FUND READINESS PROGRAMME GREEN CLIMATE FUND GOVERNANCE MECHANISM IN NEPAL Operational Manual January 2017 1

ACRONYMS CC CFU CFSC GCF GCF - RP GDP GoN IECCD MoAD MoF MIE MoFSC MoPE MoFALD NDA NIE NPC PMU RIE SH TC ToR UNDP UNFCCC UNEP Climate Change Climate Finance Unit Climate Finance Steering Committee Green Climate Fund Green Climate Fund Readiness Programme Gross Domestic Product Government of Nepal International Economic Cooperation Coordination Division Ministry of Agriculture Development Ministry of Finance Multilateral Implementation Entity Ministry of Forests and Soil Conservation Ministry of Population and Environment Ministry of Federal Affairs and Local Development National Designated Authority National Implementation Entity National Planning Commission Project Management Unit Regional Implementation Entity Stakeholders Technical Committee Terms of Reference United Nations Development Programme United Nations Framework Convention on Climate Change United Nations Environment Programme 2

TABLE OF CONTENTS ACRONYMS... 2 1. INTROUDUCTION... 4 2. GUIDING PRINCIPLES OF THE GCF NDA GOVERNANCE STRUCTURE... 5 3. GCF NDA GOVERNANCE STRUCTURE... 8 3.1 Climate Finance Steering Committee... 8 3.1.1 Composition of the Climate Finance Steering Committee... 9 3.1.2 The key roles and functions of the Climate Finance Steering Committee... 10 3.2 National Designated Authority... 10 3.2.1 Composition of NDA... 11 3.2.2 The key roles and functions of the NDA... 12 3.3 Climate Finance Unit... 16 3.3.1 Composition of the Climate Finance Unit... 17 3.3.2 Major roles and functions of the Climate Finance Unit... 17 3.4 Technical Committee... 19 3.4.1 Composition of the Technical Committee... 19 3.4.2 Key roles and functions of the Technical Committee... 20 REFERENCES... 21 ANNEX 1: DETAILS ROLES AND FUNCTIONS OFF NDA WITH RESPECT TO NIEs AND FUNDING PROPOSAL DEVELOPMENT... 22 3

1. INTROUDUCTION Nepal is ranked 4 th in terms of climate change hazards and vulnerability due to its fragile geo-physical structure, steep slopes, unplanned settlement, inadequate preparedness, environmental degradation and low adaptive capacity. To respond to the challenges posed by climate change, the Government of Nepal (GoN) is formulating and implementing various policies and plans. The Green Climate Fund (GCF), as an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC), is providing support to the developing countries to promote paradigm shift towards low-emission and climateresilient development pathways. GCF supports projects, programmes, policies and other activities in all the developing country parties to the United Nations Framework Convention on Climate Change (UNFCCC). Green Climate Fund is one of the biggest funding mechanisms available within UNFCCC for least developed countries like Nepal to address climate change challenges more systematically and effectively. It is expected to channel a large share of international climate finance commitment of developed countries to mobilize US $ 100 billion by 2020. With the operationalisation of the GCF and other financial pledges that have been made to it by various development partners, Nepal is already an eligible recipient of additional international climate finance. For this, Nepal has started to establish a sustainable climate finance mechanism which enables it to systematically access and efficiently manage, sequence and monitor existing and additional climate finance. In this context, Green Climate Fund Readiness Programme (GCF-RP) is implemented by GoN Ministry of Finance (MoF) in collaboration with the United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP) to strengthen Nepal s national capacities to effectively and access, manage, deploy and monitor climate finance from the Green Climate Fund. The support is aimed towards enhancing the capacity of the Government of Nepal to engage with the Green Climate Fund. Government of Nepal has nominated MoF/International Economic Coordination Cooperation Division 4

(MoF/IECCD) as the National Designated Authority (NDA) under the guidance of GCF policy framework. NDA works as the core interface between Nepal and the GCF Secretariat. In order to ensure smooth operation of GCF process and to achieve the goal of climateresilient development pathways in Nepal, an appropriate governance mechanism to be established with defining a clear roles and functions of the governance structure. For this purpose, Government of Nepal in consultation with GCF stakeholders has formulated and enforced the GCF governance mechanism for Nepal. This governance mechanism initially serves for the purpose of GCF RP but will be evolved as a credible and catalyst institutional mechanism supporting for climate finance in Nepal. 2. GUIDING PRINCIPLES OF THE GCF NDA GOVERNANCE STRUCTURE The operation of the governance structures will be guided by the following principles: Government led multi-stakeholder body The governance structure will be multi stakeholders under the leadership of Government of Nepal. All the key stakeholders related to climate finance such as government, private sector, non government, will be involved in the governance mechanism of the GCF. Ownership of all the concerned stakeholders is must for the success of the GCF process in Nepal which could be ensured through following a multi-stakeholders and consultative process with engage all relevant stakeholders in GCF process. This approach will also bring synergy and complementary in GCF work in Nepal. Country driven approach National stakeholders will lead and manage the GCF process at National level as per the national priorities and needs. National actors themselves will define national priorities and approach for the implementation of the GCF process in Nepal. Nepal s ownership on the GCF process is must for its success and this will be achieved only if country driven approach is adopted and national capacity is built. Flexible to respond to changing context e.g. federal governance system 5

Nepal is under the political transition with adoption of federal governance system by new constitution. The GCF governance mechanism should be flexible enough to respond the changing political and institutional context. Provision of regular review and adjustment in the governance structures based on the needs would ensure its effectiveness and relevance. Complement the functions and roles of Ministry of Finance The governance structures will complement the roles and function of Ministry of Finance as GCF NDA and support Ministry of Finance to function its role more effectively. The governance structures respect and value the existing role of Ministry of Finance and facilitate to perform additional roles as NDA. These are not the parallel structure of MoF. Promote gender and social inclusion in the climate finance sector The proposed governance structure and process to ensure an inclusive and gender sensitivity in its composition as well in its functioning. The inclusion and gender perspective to be mainstream from its composition, decision making to operation. Promote programmatic approach, use existing mechanisms and process rather creating new one as possible The proposed governance mechanisms designed to adopt and promote programmatic approach in its operation. Further, the existing mechanisms and process will be used for the climate finance/gcf purpose as much as possible to ensure its sustainability, reduce duplication of efforts and promote coherence in operation. Financial sustainability with efficient and effective mobilization of internal resources and development assistance for climate resilience development The governance mechanisms are expected to work towards financial sustainability for climate finance in Nepal with generating national resources for the implementation of the climate change related activities in Nepal rather depending only on external funding. The mechanisms will also 6

promote the effective and efficient mobilization of the external resources received for climate resilience development. No conflict of interest of the members involved in GCF NDA governance structure The governance mechanisms to ensure that there is no conflict of interest in the members of governance structures. The representation in governance structures are proposed such a way that no conflict of interest lies in the members. For example, applicants of NIEs and funding proposal for GCF will not be be the part of decision making process of NIEs and funding proposal selection. Minimum institutional layers/tiers Minimum institutional layers are proposed to avoid lengthy decision making and operational process and make the governance mechanisms efficient and effective. Clear roles and authority of each governance structure and their relationship is well defined in the governance mechanism. Build on the country s prior practices and learning Nepal has already implemented some climate change related programs with external funding support, many good practices and learning are made in the field of climate change governance so the GCF governance mechanism will take in consideration these in its operation and will build on these practices and learning rather starting from scratch. Institutionalize the process and decision related to climate finance/gcf process Maintaining institutional memory in governance mechanisms is crucial for effective operation of the mechanisms in long run. The operation of the governance mechanism will ensure these with making institutional recording of all the decision made, formal handover of the knowledge to new members and representation of the same members in governance structures at least for certain period of time. 7

3. GCF NDA GOVERNANCE STRUCTURE The GCF governance structure consists of a simple institutional arrangement. Governance structures will constitute mainly three tiers: i) Climate Finance Steering Committee (CFSC), ii) GCF NDA and iii) Climate Finance Secretariat. There would be one more committee e.g. Technical Committee horizontally in a tier, especially in the tier alongside the GCF NDA as shown in the figure below: 3.1 Climate Finance Steering Committee Climate Finance Steering Committee (CFSC) is a high level steering and decision making body of GCF/climate finance in Nepal. The Committee comprises the GoN, private sector and civil society. The main role of the CFSC is to provide policy guidance to the NDA, make strategic decision and coordination with wider stakeholders (government line ministries, 8

National Planning Commission (NPC), Non Governmental Organizations (NGOs), private sector development partners). CFSC is a multi stakeholder body to be operated under the leadership of the Ministry of Finance. Initially, the Climate Finance Steering Committee will also provide policy direction and decision on the GCF RP implementation in Nepal. The Committee will be evolved as a credible and catalyst institutional mechanism supporting for climate finance in Nepal. The committee will also play a role for increasing financial transparency and minimizing fiduciary and other risks of the programmes/projects funded by GCF and other financial mechanisms. 3.1.1 Composition of the Climate Finance Steering Committee The Climate Finance Steering Committee consists of 9 members. Proposed composition of the Climate Finance Steering Committee: I. Secretary, Ministry of Finance Chairperson II. Representative (Joint Secretary), National Planning Commission - Member III. Representative (Joint Secretary), Ministry of Forests and Soil Conservation - Member IV. Representative (Joint Secretary), Ministry of Agriculture Development - Member V. Representative, (Joint Secretary), Ministry of Federal Affairs and Local Development - Member VI. Representative, (Joint Secretary), Ministry of Population and Environment - Member VII. VIII. IX. Representative from civil society organizations (NGO Federation) involved in the climate change sector Member Representative from private sector (FNCCI) Member Joint Secretary, IECCD/MoF (NDA) - Member Secretary 9

Development partners involved in climate finance and climate change council shall be invited in the Committee meetings as invitees: Each member of the CFST should be requested Official Nomination Letter from their respective ministry/constituency. In order to maintain institutional memory, the same individual is expected to represent their constituency for at-least two years. 3.1.2 The key roles and functions of the Climate Finance Steering Committee The Climate Finance Steering Committee supports to implement climate finance related programmes including GCF by providing policy direction, making strategic decision and engaging government and non-government agencies including private sector in climate finance process.. The Climate Finance Steering Coordination Committee focuses on broader strategic aspects of climate finance GCF including prioritization of project for GCF funding. Other key functions of the Climate Finance Steering Committee are: o Provide policy guidance to NDA including Climate Finance Unit Secretariat such as coordinating with MoPE towards providing guidance based on INDCs and LDECs. o Make strategic decision related to climate finance such as endorsement of the NIES and funding proposal selection process. o Prioritise areas/projects for GCF funding in line with the national policy. o Create an enabling environment for climate finance including GCF at different levels with enhancing coordination and collaboration among government and nongovernment agencies. o Involve in strategic monitoring of the GCF programme and provide feedback. The Climate Finance Steering Committee meets twice a year generally in July and January. 3.2 National Designated Authority MoF International Economic Coordination Cooperation Division is nominated as the National Designated Authority for GCF. NDA works as the core interface between Nepal and 10

the GCF Secretariat. NDA to lead and coordinate Nepal s coordination mechanism that allows for an overview of all the concerned sectors and actors as they relate to the country s climate change strategies and plans. As a National Designated Authority for Nepal for the Green Climate Fund, the Ministry of Finance, International Economic Cooperation Coordination Division is operating as the focal point of the Fund. In its capacity as an interface between the Fund and Nepal, the NDA will work to engage national stakeholders towards engaging the Fund and oversight on alignment of funding to national climate change priorities along with issuance of the Nomination Letters for Direct Access and No-Objection Letters for Projects/Programmes. Further, as a part of the Readiness Programme, the NDA is responsible for in-country institutional strengthening, including strengthening the capacities for country coordination and to meet fiduciary principles and standards and environmental and social safeguards, in order to enable countries to directly access the Fund. Besides, the NDA is expected to facilitate a process to develop long term vision for climate finance in Nepal and be able to oversee and streamline Nepal s engagement with all sources of internal and external climate finance. 3.2.1 Composition of NDA The IECCD is a division of MoF which is responsible for international economic cooperation and coordination. The division has strengths of more than 30 human resources led by a Joint Secretary. IECCD is a focal agency for development partnership in Nepal so it has a functional relationship with the development partners working in Nepal. The NDA has a good understanding of national and international agreement, trend and issues on development aid and its effectiveness. Further, NDA has general understanding and information of the institutions and stakeholders involved in the climate change issues. As being a division of MoF, the NDA (IECCD) has a good access and ability to mainstream climate change related issues in the national plan and budget. Further, NDA has potential and capacity to facilitate and coordinate country coordination mechanisms and multistakeholder engagements at all level. Under the strategic direction and guidance of Joint Secretary, a small team of Under Secretary and a Section Officer is given responsibilities to work as focal officials of NDA. The team of Officials is also responsible for other regular work of the division so the team isn't 11

solely mandated to work only for CF/GCF so the team seems overstretched with having not enough time for climate finance/gcf related work. Clearly defined roles and responsibilities of the designated team/unit with respect to GCF are yet to be materialized. 3.2.2 The key roles and functions of the NDA The NDA, under the strategic guidance of the Climate Finance Steering Committee and the Technical Committee, lead and coordinate Green Climate Fund/climate finance related process in Nepal. The NDA is expected to have a dedicated team responsible for overall coordination and communication with the Fund and national actors. Based on Nepal s capacities, the NDA should drive and coordinate relevant coordination mechanisms and multi-stakeholder engagement, as needed and appropriate. The NDA should also be able to disseminate and share GCF process, key requirement, challenges and operational procedures of the Fund to the national actors and stakeholders. The NDA should also be able to maintain regular communication with the GCF Fund. NDA is expected to facilitate a process to develop long term vision for climate finance in Nepal. NDA should ideally be able to oversee and streamline Nepal s engagement with all sources of internal and external climate finance. In order to ensure consistency with the national priorities, strategies, and plans of Nepal, the NDA should have the ability to interact and coordinate with the designated authorities of other climate funds as applicable and appropriate. The NDA helps ensure consistency of climate finance/gcf projects/programmes with the national plans and priorities through a transparent noobjection procedure. Other general roles and functions of the NDA are: NDA is expected to perform following general roles and responsibilities in GCF process: Provide leadership on the deployment of readiness and preparatory support funding in Nepal: - With receiving readiness support, MoF as NDA is expected to facilitate the provision of readiness support such as capacity development of NDA, development of system and procedure for GCF, establishing and leading the GCF 12

governance mechanism for Nepal, selection of NIEs and funding proposals to other stakeholders related to GCF such as line ministries, private sector, financial institutions and civil societies. For this, NDA should develop stakeholders engagement framework as well as GCF governance mechanism with defining the role and space of stakeholders in GCF process and convene stakeholders coordination at national level. NDA to communicate the GCF provisions and requirements to the concerned national stakeholders. - NDA to provide support to the National Implementation Entities (NIEs) on GCF processes. Key aspects of support include share the information related to accreditation procedure to wider stakeholders, guide and support potential NIEs on the accreditation application processes, communication to the prospective/accredited NIEs for funding proposals, orientation to the potential NIEs/NIEs on the funding proposal development process and requirement, share national priorities, provide technical support and guidance to NIEs in preparing funding proposals etc Provide broad strategic oversight aligned to national priorities: - NDA to lead the GCF process in Nepal in coordination with relevant entities Climate Finance Steering Committee, Technical Committee, Ministry of Population and Environment as UNFCCC NDA and GCF Board. - NDA to ensure that projects/programmes funded by GCF are aligned with national priorities identified by the Nepal s policies and plan related to climate change such as National Climate Change Policy, Reduced Emission from Deforestation and Forest Degradation (REDD) strategy, National Adaptation Plan of Action (LAPA), Sustainable Development Goals (SDGs), National Adaptation Plan (NAP). Please see annex 1 for some of the key focus and priorities of national policies related climate change and annex 2 for GCF Strategic Impact Areas and Investment framework. - NDA to coordinate with and take feedback from MoPE on the idea notes/concept notes/funding proposals submitted by the NIEs/potential NIEs/Entities to ensure 13

that these are fully aligned with the national priorities as identified by climate change related policies and plans. Convene national stakeholders including public, private and civil society stakeholders: - NDA to develop SHs engagement framework and facilitate to engage relevant stakeholders such as government, private sector, civil societies, and academic institutions in GCF process in order to gather their inputs, bring synergy and create ownership on GCF work as per the SHs engagement framework. - Follow a multi stakeholder approach in GCF process and organize multi stakeholder dialogues/workshops on climate finance/gcf to sensitize SHs on GCF process, to create common understanding on the issues and way forward and to create enabling environment for GCF programme in Nepal with developing and adopting SHs engagement framework and GCF governance mechanism. - Disseminate and share the information related to GCF including accreditation and proposal development procedure to wider stakeholders through website and public calls. - NDA to convene learning and sharing events to national stakeholders on climate finance including GCF on annual basic. Facilitate accreditation process for National Implementation Entities (NIEs) and provide nomination letters to be eligible for direct access Accredited Entities: - NDA to facilitate accreditation process for National Implementation Entities on half yearly basic two application call in a year. Following process shall be followed for this: o Call for expression of interest for NIEs in Nepal on rolling basic - half yearly basic, tentatively in January and July. o Disseminate and share the information related to accreditation procedure to wider stakeholders through public calls and web sites. o Make available the application information packet to the interested organizations through website and hard copy. o Guide and support potential NIEs on the accreditation application processes. 14

o Conduct eligibility check of the applications received for NIEs against the GCF criteria and process. o Review the applications on half yearly basic and forward to GCF board for further review and decision making process on half yearly basic. NDA shall take inputs from Technical Committee and experts in reviewing the applications. - Likewise, NDA to provide the Letters of Nomination1 to the potential accredited entities upon request in order to be eligible to begin the GCF accreditation process on half yearly basic. Facilitate GCF funding proposals development process and the implementation of GCF funded projects/programmes in Nepal - NDA to facilitate GCF funding proposals development process on half yearly basic two application call in a year. Following process shall be followed for this: o Call for expression of interest for concept note/funding proposal on rolling basic - half yearly basic tentatively in January and July. o Disseminate and share the information related to funding proposal procedure to wider stakeholders through public calls and web sites. o Make available the application information packet to the interested organizations through website and hard copy. o Conduct eligibility check of the applications received for funding proposal against the GCF criteria and process. o Guide and support potential NIEs on the funding proposal development processes. o Review the applications on half yearly basic and forward to GCF board for further review and decision making process on half yearly basic. NDA shall take inputs from Technical Committee and experts in reviewing the applications. 1 http://www.greenclimate.fund/documents/20182/319135/1.4_- _NDA_FP_Nomination_Letter_for_Application.docx/ffe4baa5-af3f-4fca-a68b-d8f7fe7948ba 15

- Process to approve projects/programmes and grant Letter of No Objection for GCF funding proposals/projects/programmes - Review the idea/concept note prior to issuance of the No Objection letters in casa of call for idea note for funding proposal development - Oversight the programme development process as per the GCF requirements - Development of bankable idea note and funding proposal for GCF and other funding purpose. NDA to call for idea note/concept note for this purpose and maintain a roaster of bankable concept note/proposals to be prepared for international climate finance on six monthly basis. GCF programmes/projects management in Nepal - NDA to facilitate to provide strategic guidance and technical support to the implementation entities to implement the GCF project in Nepal. - Facilitate to address policy and operational issues related to GCF project in Nepal. - Maintain database of the projects funded by GCF and potential bankable proposals for funding. - Lead in coordination with the line ministries, private sector, civil societies, donors in the process o GCF projects implementation - Facilitate monitoring of the implementation of the GCF projects by implementation entities in coordination with National Planning Commission. - Prepare annual progress reports on the implementation of activities under the GCF in Nepal. - Provide strategic oversight of the GCF funded activities in Nepal to ensure accountability and transparency - Ensure that the accredited entities/gcf funded projects are complied with the GCF and national priorities and legal requirement. Please see annex 1 for detail roles and function of NDA. 3.3 Climate Finance Unit In order to manage day to day function of Green Climate Fund/climate finance related activities smoothly, a dedicated team/unit within NDA is required. For this purpose, Climate Finance Unit (CFU) will be established within NDA with a small team of dedicated staffs of 16

IECCD and Technical Assistance team as required. The Climate Finance Unit works under the strategic guidance and supervision of Joint Secretary of NDA. 3.3.1 Composition of the Climate Finance Unit As a dedicated team for Green Climate Fund/climate finance in Nepal, under the leadership of Under Secretary, the Climate Finance Unit consists of at-least 3 members deputed from IECCD/MoF. The Unit will be supported with Technical Assistance team from development partners (UNDP in case of GCF). The unit shall be enriched with two more experts on climate change and knowledge management selected through an open and competitive selection process. The Unit will be established within IECCD in MoF. The Climate Finance Unit maintains rosters of experts and required expertise will be outsourced as required from the rosters. The operations of the Climate Finance Unit will be guided by GoN procedure and norms. 3.3.2 Major roles and functions of the Climate Finance Unit The Climate Finance Unit will be primarily responsible for day to day function of Green Climate Fund/climate finance and provide support necessary for the effective functioning of MoF as the NDA. The Unit should perform all the preparatory work to be carried out by NDA and to ensure smooth operation of NDA with respect to GCF/climate finance. The Unit to facilitate and coordinate to prepare annual plans, programme, guidelines and procedures related to GCF/climate finance and submit to NDA for further process and decision. The Unit works as a first point of contract for GCF related activities in Nepal including for NIEs and funding proposal development. Other general roles and functions of the Climate Finance Unit are: o Prepare annual plans and budgets related to GCF/climate finance and submit to NDA Head for review and further process; o Implement the decisions made by NDA; o Coordinate with Technical Committee in order to facilitate NIEs accreditation and proposal development process; o Engage actively with the GCF and participate in the key events of GCF including board meetings; 17

o Disseminate and share climate finance/gcf process, requirements, challenges and operational procedures of the Fund to the national actors and stakeholders including NIEs/potential NIE; o Represent NDA in international and national forums related to GCF/climate finance; o Prioritize institutional strengthening and capacity development efforts of the Climate Finance Unit and the NDA; o Organize Climate Finance Steering Committee and Technical Committee Meetings; o Provide necessary support MoF to function effectively as NDA and to organize activities related to GCF/climate finance; o Facilitate national call for Expression of Interest to apply as an Accredited Entity Status under the GCF in coordination with NDA; o Provide support service to the NDA towards issuance of the Nomination letters to the selected/potential national institutions applying for Accreditation and No Objection Letters for submission to the GCF; o Manage human resource and finance under the delegated authorities; o Coordinate with donors partners and NDA to develop capacity of NDA and Climate Finance Unit; o Provide secretarial support to Climate Finance Steering Committee, NDA and Technical Committee as required; and o Planning, monitoring and reporting including mmaintaining database and MIS for GCF/climate finance and a Roster of Experts. Institutional strengthening and operation of the Climate Finance Unit: Following aspects need to be placed for the effective functioning of the Climate Finance Unit: Clear vision, action Plan and defined roles of the team members; Provision of capacity development training and exposure visit to the staff of the Secretariat on relevant themes including climate change, GCF process and national policies and priorities; and Effective communication and coordination mechanism. 18

3.4 Technical Committee A Technical Committee (TC) will be set up with objective to provide technical and advisory support to the NDA on the different aspects of climate finance/gcf including NIEs accreditation process and funding proposals development. 3.4.1 Composition of the Technical Committee The Technical Committee will consist of 7 members headed by Joint Secretary of IECCD of MoF. Proposed composition of the Technical Committee: 1. Joint Secretary, IECCD/Ministry of Finance Chairperson 2. Representative, Budget and Programme Division/MoF - Member 3. Representative, Under Secretary, National Planning Commission (Monitoring and Planning Portfolio) - Member 4. Representative, Under Secretary, Ministry of Population and Environment (Climate change sector portfolio) - Member 5. Representative, Climate Change Expert from Climate Change Council Member 6. Rrepresentative from private sector (FNCCI) Member 7. Under Secretary, IECCD/MoF (NPD of GCF Readiness Programme) - Member Secretary Others could be invited in the Technical Committee Meetings as invitees as required. The Technical Committee will also have provision for inclusion of additional technical expertise as per need while the National Programme Coordinator will serve as a representative of the technical partners of the Readiness Programme while the Project Management Unit will provide necessary support to facilitate the process. Member of the Technical Committee will need a nomination letter from their respective ministry/constituency. In order to maintain institutional memory, the same individual should represent their constituency for at-least two years. 19

NDA to ensure that there is no conflict of interest of the members of Technical Committee in the decision making process related to climate finance/gcf. For example, applicant of NIEs and funding proposal for GCF should not involve in review and decision making process of NIEs and funding proposals. 3.4.2 Key roles and functions of the Technical Committee The primary role of the Technical Committee is to provide technical inputs and support in the decision making process for the Climate Finance Steering Committee with regards to the climate finance/green Climate Fund and accessing climate finance in general. The committee will contribute to the following roles: Support the technical review of applicants applying for the Accreditation Entity (AE) status under the Green Climate Fund; Provide oversight on the countries readiness programme and also strategic engagement framework to enhance direct access of funds from GCF; Facilitate consultative processes with key stakeholders at the national level to develop strategies for national climate change priorities; Provide technical review of concept notes in-line with national priorities along with decision making process is justification of No Objection to be issued by NDA for project proposal application; and Provide technical expertise to the Secretariat as required. The Technical Committee meets generally on quarterly basic but can meet as and when required. 20

REFERENCES GCF Readiness Programme in Nepal, Project Document, 2015. GoN,UNEP and UNDP, Kathmandu. GCF initial best-practice options for country coordination and multi-stakeholder engagement, 2014. UNDP, UNEP and WRI. GCF initial best-practice guidelines for the selection and establishment of national designated authorities and focal points, 2014. UNDP, UNEP and WRI. GCF-RP PMU, 2016. ToR for the individual consultant to support policy work to support institutional capacity of National Designated Authority, UNDP, Kathmandu. Government of Nepal, 2011. Climate Change Policy 2011. Ministry of Environment. Kathmandu. MoPE, 2016. Enhancing county capacity to benefit from Green Climate Fund, Kathmandu, Nepal. National Designated Authority of the Green Climate Fund, Operational Manual, 2016. Ghana. Regmi, B and Subedi, R, 2010: Mainstreaming Climate Change Adaptation through Community Based Planning, Livelihoods and Forestry Programme (LFP), Kathmandu, Nepal. Regmi, B and Subedi, R, 2012: Addressing the Mismatch in Adaptation Planning in Nepal, Kathamandu, Nepal. 21

ANNEX 1: DETAILS ROLES AND FUNCTIONS OFF NDA WITH RESPECT TO NIEs AND FUNDING PROPOSAL DEVELOPMENT NDA is expected to perform following roles in the NIE Accreditation, GCF funding proposal development and GCF projects management process: Stage NIE Accreditation Pre- Accreditation Roles - Call for expression of interest for NIEs in Nepal on rolling basic- half yearly basic tentatively in January and July. - Disseminate and share the information related to accreditation procedure to wider stakeholders through public calls and web sites. - Make available the application information packet to the interested organizations through website and hard copy. - Guide and support potential NIEs on the accreditation application processes. - Receive applications for consideration for accreditation from potentials NIEs in Nepal. - Conduct eligibility check of the applications received for NIEs against the GCF criteria and process. - Review the applications on half yearly basic and forward to GCF board for further review and decision making process on half yearly basic. NDA shall take inputs from Technical Committee and experts in reviewing the application. Review - Facilitate the communication of nominations of potential NIEs to the GCF Secretariat for further process of accreditation. (The GCF accreditation panel conducts the review of the accreditation process based on the already defined fit for purpose criteria and recommend to the GCF Board for final decision) Validation and final decision - Facilitate the communication to the NIEs once accredited by the GCF Board. (The GCF Board make final decision on accreditation based on the recommendation of the accreditation panel) Funding Proposal Development - NDA to facilitate GCF funding proposals development process on half yearly basic two application call in a year. Following process shall be followed for this: 22

o Call for expression of interest for concept note/funding proposal on rolling basic - half yearly basic tentatively in January and July. o Disseminate and share the information related to funding proposal procedure to wider stakeholders through public calls and web sites. o Make available the application information packet to the interested organizations through website and hard copy o Receive the idea note/funding proposals. o Conduct eligibility check of the applications received for funding proposal against the GCF criteria and process o Guide and support potential NIEs on the funding proposal development processes. o Facilitate the initial assessment of the idea note/funding proposal submitted by the NIEs/potential NIEs/Entities. o Review and select the fair number of idea note for development of funding proposal in case of call for idea note. o Review the applications on half yearly basic and forward to GCF board for further review and decision making process on half yearly basic. NDA shall take inputs from Technical Committee and experts in reviewing the applications. o Process to approve projects/programmes and grant Letter of No Objection 2 for GCF funding proposals/projects/programmes. - NDA to facilitate to provide strategic guidance and technical support to the implementation entities to implement the GCF project in Nepal. - Facilitate the communication to the prospective/accredited NIEs for funding proposals. - Provide feedback to the prospective/accredited entities on the design, and, upon approval, grant letters of noobjections. - Ensure that the funding proposals are inline with the national priority. - Facilitate communication between prospective/accredited entities and the Fund. 2 http://www.greenclimate.fund/documents/20182/466886/no-objection_letter_template.docx/09728ebd-3848-48ab-b515-cff59f9ea87b 23

24