GCF Readiness and Preparatory

Support Project of I.R. Iran

GCP/IRA/068/GCR

1

Outline

1. Introduction of the GCF

2. Overview of the Project

3. Technical approaches to achieve project Sub-outcomes

2

1. THE GREEN CLIMATE FUND

3

What is GCF?

• Unique global initiative to respond to climate change by investing

into low-emission and climate-resilient development.

• Established by 194 governments to limit or reduce greenhouse

gas emissions in developing countries, and to help adapt

vulnerable societies to the unavoidable impacts of climate

change.

• Mandated to make an ambitious contribution to the united

global response to climate change.

4

GCF Vision

With a Mandate:

To promote low-emission

and climate resilient

development in developing

countries.

8 Strategic Results Areas

Cross-cutting

investment priorities:

1. Climate compatible cities

2. Sustainable, low emission

and resilient agriculture

3. Scaling up finance for

forest and climate change

4. Enhancing resilience in

SIDS

5. Transforming energy

generation and access

7

Co-

financing

GCF• GCF Board

• Independent TAP

Accredited Entities• International AE

• Direct Access Entity (DAE)

Programs/Projects• Grants

• Loans, Equity, Guarantees

• Readiness & Preparatory support

• Full projects

Strengthen capacity of NDA –

maximum USD 1 million/year. Two

time submission – May and August

National Adaptation Plan

Readiness – USD 3 million

Project Preparatory Assistance: to

prepare projects - priorities given

to DAE

Modes of AccessN

atio

nally

Desig

nate

d A

uth

ority

National

ownership

Private

Sector

Facility

Including Simplified Approval

Procedures (SAP): max $ 10

mil, low social environmental

risks

GCF Project size:

Micro: USD 0 – 10 mil

Small: USD 10 – 50 mil

Medium: USD 50 – 250 mil

Large: >USD 250 mil

A Complete Funding Proposal

1. No-objection from the country NDA(s)

2. Funding proposal

3. Feasibility study -> providing rationale for proposed design,

structure & costs

4. Procurement plan, budget breakdown

5. Economic and financial analysis

6. Environmental and social impact assessment

7. Gender assessment and analysis

8. Risk assessment

9. Logic framework

10.Stakeholder consultations

Stage 2 Second level due diligencePerformance against investment criteria

Consistency with GCF safeguards & policies

Stage 3 Independent TAP assessmentPerformance against investment criteria

Stage 1 Completeness checkComplete information and documentation

Adequate level of advancement

Stage 4 Submission of package to Board

Accre

dited E

ntity

ND

A

Funding Proposal Review Process

Impact potential

Paradigm shift potential

Sustainable development potential

Needs of recipient

Country ownership

Efficiency & effectiveness

Potential of the programme/project to contribute to the achievement of the Fund's objectives and result areas

Economic and, if appropriate, financial soundness of the programme/project, and for mitigation-specific programmes/projects, cost-effectiveness and co-financing

Beneficiary country ownership of and capacity to implement a funded project or programme (policies, climate strategies and institutions)

Vulnerability and financing needs of the beneficiary country and population in the targeted group, and barriers to other sources of funding

Wider benefits and priorities, including environmental, social, and economic co-benefits as well as gender-sensitive development impact

Degree to which the proposed activity can catalyze impact beyond a one-off project or programme investment

GCF Investment Criteria

A good proposal is

Transformative and innovative• Using innovative financing models, technical solutions, improving

regulatory framework, or allowing projects that could not happen otherwise.

Focused on climate results

• Clear benefits in terms of emission reductions (e.g. substitution of fossil fuels) or improving the resilience of infrastructure or livelihoods against climate change

Illustrates financial sustainability

• They have clear exit strategies for the GCF, explaining in detail who the operations and management of the project/programme’s outcomes and results will be maintained.

2. OVERVIEW OF THE PROJECT

12

Project Result Framework

13

Sub-outcomes

Outcomes

Focus Strengthen NDA and Strategic frameworks/Country Programme

Country capacity strengthened

Effective coordination mechanism

No-objection procedure

Stakeholders engaged

Stakeholders engaged

Country programmesdeveloped

Gender consideration

Expected Deliverables

Effective coordination mechanism

Institutional and capacity gaps assessment,

baseline established

TOR for NCCFC; NDA and NCCFC aligned work plan;

Strategic framework to involve ministries

Climate finance training for NDA office, NCFFC

No-objection procedure

No-objection procedure

Guidelines for reviewing GCF

project ideas/concept

notes/proposals

Web-based information

dissemination system

Training on Guidelines and No-objection procedure

Stakeholders engaged

Stakeholder engagement framework

Training for stakeholders

Country programmes

Assessment of climate change data, impacts, policies, initiatives and regulations to prioritize

CC investments

Strategic investment report with investment

criteria and priorities for adaptation and

mitigation

Training workshop on accessing GCF finance

Gender consideration

Guidelines on gender

mainstreaiming

Training workshop

14

GCF Country Programme

• What is GCF Country Programme?

Short-term and long-term projects/programmes and investment priorities—strategic

initiatives that will help realize a paradigm shift in achieving low-emission and climate-

resilient development

• Why Country Programme?

Turning a country’s climate action aspirations into reality

Fostering country ownership

• How to develop Country Programme

Robust and inclusive engagement process (government agencies at all levels, civil

society, private sector, international partners) to develop country-owned priorities - project

ideas, concept notes

Screening and prioritizing based on national priorities and GCF results framework,

investment criterial

Programme/project development support to develop complete funding proposals

GCF Country Programme Template

Section A: National climate change targets and priorities

Brief snapshot of the country’s top-level climate change-related targets and priorities

(NDC, national CC strategy, NAP, etc.)

Section B: Near-term Programming (12 months)

Section C: Long-term Programming (12-36 months)

GCF Funding Pipeline

Project idea notes

Near-term Programming

17

Prioritizes (02)

projects/programmes or concept

notes currently identified by the

country, which the NDA would wish

to finance in the near future (e.g.

within 12 months).

Long-term Programming

18

Presents an

initial list of

investment

concepts

that can be

brought

forward to

the GCF in

the medium-

and long-

term, that is,

within 12-

36 months

No Objection Procedures

Programmes/Projects from Near-term and

Long-term priorities in the Country Programme

Screening and prioritization by a

multi-sectoral committee using pre-

defined criteria

NDA decision based on assessment:

Meeting GCF criteria? In line with national

priorities? Innovative and Transformative?

Letter from NDA to the GCF expressing

support/no objection to the

programme/project submitted

No Objection Letter for Funding Proposal – A must

No Objection Letter for Concept Notes – Optional

For Readiness and Preparatory Support – NDA Letter of submission

For Discussion

1. Technical approach to achieve the Deliverables and Sub-

outcomes

2. Implementation arrangements – How to ensure

engagement of Government agencies and stakeholders

3. Human resources plan

4. Next steps

3. TECHNICAL APPROACHES TO

ACHIEVE PROJECT SUB-OUTCOMES

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Group work 1 – All groups:Country Readiness Self- Assessment and Action Plan

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Country Readiness Self- Assessment and Action Plan (2)

Group work 2 – Technical approaches to

achieve sub-outcomes

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• 04 groups will discuss technical approaches to achieve

Project different sub-outcomes

• The groups will present to the plenary

Group 1 – Coordination mechanism and NOP

1. What would be priorities of I.R Iran’s engagement with the GCF?

2. What should be the 3-5 top priority roles of the NDA?

3. Which government agencies and stakeholders should be engaged in

GCF programme/project development and coordination?

4. Please list existing coordination mechanisms on climate change

(among government agencies, between government and non-state

actors), their objectives, membership, coordinating body and main

activities

5. What would be the objectives, activities and members of the

NCCFC?

6. How should GCF coordination link with NCCFC?

Group 2 – Strategic Investments

Country Programme

1. Please list the climate change priorities of I.R. Iran (as in national

strategy, NDC, 6th National Development Plan and other plans)

2. What are the current procedures/process for Government agencies

and other stakeholders to submit climate change project

ideas/proposals?

3. What should be the main criteria for prioritizing programmes/projects to

be included in the Country Programme and submitted to the GCF?

4. Which agencies as International Accredited Entities of the GCF

present in I.R. Iran?

5. Which agencies (including private sector, national organizations), could

be Director Access Entities?

Group 3 – Stakeholder engagement & Gender

considerations

1. Please list actors working and/or have a role to play in climate

change in I.R. Iran and their main activities

• Government agencies, local government (province and cities),

academia, civil society, private sector, international partners, others

2. What would be their interest in GCF?

3. How to engage these actors?

4. What are the actions to mainstream gender (especially for women,

youth and children) in climate finance?

Group 4 – Climate information and

MRV of climate finance

1. List the existing mechanisms to monitor, verify and report (MRV) on

national targets and international commitments on climate change (for

example, NDC targets

2. List the agency(ies) responsible and the information sources and

tools available

3. What is required climate data/information (i.e. climate scenarios,

impacts on sectors, etc.) for developing climate change adaptation and

mitigation programmes/projects?

4. What is available?

5. What information should be included in the on-line portal?

6. What issues in climate finance to be included in training?

4. IMPLEMENTATION ARRANGEMENTS

AND HUMAN RESOURCES PLAN

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Proposed Human Resources Plan

30

1.1. Coordination mechanism

1.2 No-objection procedure

2.1. Stakeholder engaged &

2.3 Gender consideration

2.2. Country programmes (strategic

CC investment identification)

Climate data, impact assessment models, database of existing initiatives (under 2.2) and Web-based information

dissemination system (under 1.2)

Climate finance team:

International climate finance expert

(XXX days)

National climate finance expert (XXX

days)

Climate information system team:

National climate data, information expert (XXX days)

To be confirmed: International climate data, information expert (XXX days)

Stakeholder engagement team:

International stakeholder

engagement/gender expert (XX

days)

National expert (XXX days)

Overall project coordination/management: Jr. Coordination Consultant, Project Assistant

(9 months each)

Institutional & Capacity

Development team:

International Institutional and

capacity development expert (XXX

days)

National expert (XXX days)

Group Work 3 - Forming Technical

Committee/Working Group for sub-outcome?

1. Please discuss and recommend the Technical Committee/Working

Group, for example:

• Technical Committee/Working Group on Coordination and NOP

• Technical Committee/Working Group on Strategic Investments and

Country Programme

• Technical Committee/Working Group on Stakeholder engagement

and Gender considerations

• Technical Committee/Working Group on Climate information and

MRV systems

2. Recommend for each Technical Committee/Working Group:

• Members

• Chair/Co-chairs

• Main tasks

Inception Workshop Indicative Agenda

Opening:

• Welcome remarks by Head of NDA and FAO Representative

• Introduction of participants

• Workshop objectives, expected outcomes and agenda

Session 1: Common understanding of the project

• Presentation about the project – objective, expected outcomes/ deliverables and proposed implementation plan

• Plenary discussion:

– Clarifications

– Relevance of outcomes/deliverables, indicators to measure success

– Considerations in implementation

Session 2: Technical approaches to key outcomes/deliverables

• Presentation on requirements, planned technical approach to achieve key outcomes/deliverables: (i) Coordination mechanism and No-objection procedure; (ii) Strategic investments; (iii) Stakeholder engagement framework and Gender mainstreaming strategy and (iv) Climate information system

• Group discussion: Four groups will discuss the key outcomes/deliverables. Guidance for group discussion will be provided

• Groups reporting back

Inception Workshop Indicative Agenda (2)

Session 3: Human resources plan and coordination for implementation

• Presentation on human resources plan for each of the key outcomes/deliverables groups. Proposed Coordination Group or Task force for each of the four outcomes/deliverables groups

• Group discussion 2: Participants – potential members of the Coordination Group/Task force will form 4 teams to discuss detailed plan for each of the project outcomes/deliverables groups

• Groups reporting back

Session 4: Final plenary

• Summary of discussions

• Plenary discussions – final comments

• Next steps

Closing:

• Closing remarks by NDA and FAO Representative