NORDIC DEVELOPMENT FUND

PUIBLIC Dccision per capsulain (iii written procedure)

FINAL CONSIDERATION Mekong Regional (Laos, Cambodia, Vietnam) - Additional Financing for the project C26 Gender and Climate Change (Harnessing Climate Change Mitigation Initiatives to Benefit Women) EUR 4 15,000.

PROJECT SUMMARY Sector: Environmental poiicy and administrative management, CRS

code 41010, Rio Marker Mitigation:2

Partuer Country: Cambodia, Laos, Vietnam

Previous NDF Credits/Grants to Cambodia: Country: Credits: EUR 9.3 million

Grants: EUR 11.2 million

Laos: Credits: EUR 48.8 niillion + SDR 8.4 million Grants : EUR 2.3 million

Vietnam: Credits : EUR 24.9 million + SDR 4.3 miilion Grants : EUR 5.9 million

Regional, grants: EUR 17.8 million

The grant amounts above inelude the existing financing of EUR 2 million to C26 (Jender and Climate Change.

Partner Agency: Asian Development Bank (ADB)

Mode of Fmancing: Joint co-financing

Relevance for NDF Strategy 2014-2015 The projeet is well in line with NDF’s mandate, screening criteria and strategy for 2014 - 2015. The project supports gender-conscious work on climate change related policies on national and sub-national leveis, as well as supports development of tools and mechanisms to access elimate financing. Impiementation of pilot projects will resuit iii reduction of greenhouse gas emissions and, in addition, capacity-building on ali leveis to support sustainabie solutions regarding household fueis and waste management.

Cliinate Change Screening: The project has been screened and fuifiis the criteria for mitigation.

Earlier Board Consideration: The project was approved at Board meeting 11/2011 (pipeline 1/2011).

Status: Impiementation ongoing: Multi-stakehoider partnerships between government agencies in charge of climate change and gender mainstreaming mobilised. Pilot projects on-going. Regional knowledge hub active with desk studies and stakehoider consultations.

Project Period: The original project period was December 2011- December 2014, which has been extended once until December 2015. The current proposal is to extend the period by one more year, until December 2016

Cost Esthnate and Financing Pian: The total cost for the extended Project would amount to USD 3,450,000. NDF has previously granted EUR 2 milhion (approximately USD 2.7 million at the time ofapproval) and approval of additional financing would resuit in NDF frnancing in an amount of EUR 2,415,000. USD 300,000 has been provided by Water Financing Partnership Facility (WFPF).

Project Objective(s): The objective of the proposed TA is to mainstream gender into national and sub-national climate ehange related policies, facihitate participation of women in the decision-making process regarding chimate change related issues and support development of policies on carbon revenue distribution.

Project Description: The ongoing Project supports national and sub-national government agencies in incorporating gender-specific concems lii their work on climate change related policies. By cooperating with national women’s groups, awareness and knowledge of climate issues among women will be strengthened, which will enhance their position in the decision-making process. Three pilot projects, one in each participating country, will be carried out and function as a 1mk between hands-on climate change mitigation work and policy formulation on questions relating to carbon finance. The pilot projects are on-going, providing training in low-carbon technologies for women while raising climate change awareness in local communities and creating job opportunities. Iii order to collect and diffuse knowledge and

lessons leamed from these pilot projects and facilitate their replication, a regional knowledge hub has been established, producing knowledge material and diminishing results and lessons leamed.

Additional financing would enable the Project activities to take into consideration the development in the climate finance arena that has occurred since the design of the Project. This will be done by working, with the o1jective of enhancing climate finance readiness, both on capacity-building as well as practically on the development of tools and tempiates for development of gender-sensitive NAMAs. Scale-up of the pilot projects would support maximisation of benefits as well as sustainability of the pilots..

Description of NDF Components: No specific NDF component, NDF’s financing is used for the entire Project.

Gender Marker: 2

Impiementation Arrangements: ADB is the Execution Agency (EA). Jmplementing Agencies in Cambodia are the Ministry of Agriculture and the Forestry and Fisheries (MAFF) ; in Laos the Department of Disaster Management and Climate Change (DDMC) and in Vietnam URENCO (Urban Environment and Development Limited Company). An organisational chart of the TA is attached as Annex 2.

Procurement: ADB has recruited the project consultants using Quality- and Cost-Based Selection (quality - cost ratio 90:10) in accordance with ADB’s Guidelines on the Use of Consultants. The contracted consultants would perform the additional tasks and an extension of existing consultancy contracts would be handled in accordance with ADB’s guidelines.

Nordic Interest: Gender equality is a core value iii the Nordic countries and a natural part of the Nordic countries development policies.

NDF’s Added Value and Comparative NDF fmancing has enabled impiementation of the TA and Advantage: additional financing will further ensure that the results from

the TA will be sustainable and replicable.

Recoinmen dation for Board resolution:

The Board approved additional grantfinancing ofup to EUR 415,000 to the project C26 Gender and Climate Change

Helsinki, 15 June 2015

7a~ieliman

K Linda Lunqvist Managing Director

Country Program Manager

PROJECT SUMMARY

The objective of the project is to mainstream gender into national and sub-national climate change related polices, facilitate participation of women in the decision-making process regarding climate change related issues and support development of policies on carbon revenue distribution. The TA will support national and sub-national government agencies in incorporating gender specific concerns iii their work on climate change related policies. By cooperating with national women’s groups, awareness and knowledge of cliinate issues will be strengthened while simultaneously increasing women’s position in the decision-making process. Three pilot projects will be carried out and function as a 1mk between hands-on climate change mitigation work and policy formulation on questions relating to carbon finanee. The pilot projects are designed to be replicable, and in order to coilect and diffuse knowledge and lessons learned from these pilot projects and facilitate their replication, a regional knowledge hub has been established.

NDF approved financing of EUR 2 million for the project in May 2011. The multi-donor fund Water Financing Partnership has provided financing in the amount of USD 300,000 for the pilot project in Vietnam.

Subject to additional financing of EUR 415,000 (USD 450,000), the pilot projects would be scaled-up and practical tools and tempiates for gender-sensitive NAMAs would be developed. Scaling-up of the pilot projects include expansion ofproduction Iines as well as introducing micro-finance opportunities connected to the pilot activities. This would strengthen the sustainability of the activities under the pilots, but also meet market demands for the climate-fiiendly technologies supplied. The regional knowledge hub for the TA has studied the developments regarding incorporating gender concerns iii climate finance instruments. The additional financing would enable these studies to turn into tools and tempiates to be used to further prepare pollcymakers to mainstream gender into NAMAs and facilitate readiness for accessing climate change funding. The intention is that at least one proposal will be developed with the help of the tools and tempiates produced.

TABLE 0? CONTENTS 1. INTRODUCTION AND PROJECT rsACKGROUND ............................................................... 1

2. RELEVANCE AND RATIONALE.............................................................................................1

2.1. Pro jectRelevance .................................................................................................................. 1

2.2. Relevance to NDF’s Mandate and Strategy..........................................................................2

3. THE PROPOSED PROJECT.......................................................................................................2

3.1. Objective (s)..........................................................................................................................2

3.2. Project Activities /Outputs. ................................................................................................... 3

3.3. NDF Components..................................................................................................................6

3.4. Cost Estimates and Financing Pian.......................................................................................6

3.5. Nordiclnterest ................................................................ . ...................................................... 7

3.6. NDF’s Added Value and Comparative Advantage...............................................................7

4. IMPLEMENTATION ARRANGEMENTS.................................................................................8

4.1. Technicai Aspects..................................................................................................................8

4.2. Institutional Aspects and Project Organisation.....................................................................8

4.3. Procurement and Contract Structure.....................................................................................8

4.4. Risk ˜nalysis ......................................................................................................................... 8

4.5. Monitoring and Evaluation....................................................................................................9

5. ECONOMIC AND SOCIAL ASPECTS......................................................................................9

5.1. Economic Justification..........................................................................................................9

5.2. Social Aspects....................................................................................................................... 9

6. CONCLUSION.............................................................................................................................9

ABBIIEVIATIONS

ACCS - Advanced Clean Cooking Solutions ADB - Asian Development Bank CDKN - Climate and Development Knowledge Network CNCW - Cambodia Council for Women COP2 1 -21 st Meeting of the Conference of the Parties to the United Nations Pramework Convention on Climate Change DDMC - Department of Disaster Management and Climate Change (Laos) DHWU - Dong Hoi’s Women’s Union DONRE - Department ofNatural Resources and Enviromnent (Vietnam) EA - Executing Agency GCF - Green Climate Fund GCWG - Gender and Children Working Group (under MAFF, Cambodia) GHG - Greenhouse (}as IA - Implementing Agency IGES - Institute for Giobal Environmental Strategies LWU - Lao Women’s Union MAFF - Ministry ofAgriculture, Forestry and Fisheries (Cambodia) NAMA - Nationally Appropriate Mitigation Actions NDA - National Designated Authority (for the GCF)

1. INTRODUCTION AND PROJECT BACKGROUND

At the Board meeting in May 2011 (11/2011), NDF’s Board of Directors approved grant financing in the amount of EUR 2 miilion for the project Gender and Cliinate Change. The Project is a regional technical assistance (RETA) implemented by ADB as the Executing Agency (EA) under the name Harnessing Cliinate Change Initiatives to Benefit Women (hereinafter referred to as the Project or the TA). The TA was approved by ADB iii November 2011.

Since the approval there have been several delays. Having a gender-sensitive approach on climate ehange projects is a rather new field and this became rather clear in connection with the process of selecting consultants. Very few companies expressed interest for the iargest consultancy paekage, for administering and coordinating the TA. The flrst selected finn ultimately did not share the same understanding of the assignment as ADB and a termination of contract and rebidding was required. Afier this delay, Project impiementation could be resumed during the summer of 2014.

The delay did, however, have some positive side effects. Gender equality and climate change discussions have risen on the giobal climate change agenda and it is a field that is continuously evoiving. The recent approval of the Green Climate Fund’s (GCF) Gender and Action Pian is an illustration of this evolution. This shift in the ciimate finance landscape has created opportunities that did not exist when the TA was designed. In an effort to utiiise the latest discussion about the fieid and to get more concrete results out of the Project, ADB has approached NDF with a request to extend the project period by an additionai 12 months and to extend the scope further to i) include the deveiopment of learning toois and a design template outlining the key steps for developing gender-sensitive NAMAs, and ii) scale-up the pilot projects to enhance the sustainabiiity and impact of the activities and also ailow for the inclusion ofmicro-finance opportunities. It should be highlighted that the request for additionai fmancing has been driven by ali three country government partners, expressing appreciation for NDF support and seeking to further maximise gains received through the Project.

The original TA compietion date was set to 31 December 2014 but has previously been extended to 31 December 2015. With additional flnancing, the project would be extended until December 2016.

2. RELEVANCE AND RATIONALE

2.1. Project Relevance Climate change impacts are not gender-neutral and poverty and climate change concems cannot be addressed without an understanding of gender differentiated rights, roies and responsibilities. Women and giris ofien take the brunt of the negative effects ofclimate ehange, due to socioeconomic status and low access to income-generating jobs in combination with being more dependent on and responsible for services such as waste management, clean water and househoid energy. ilowever, as women are resource managers, empowering women - making them agents of change - is an effective way of addressing both local and giobal environment concems.

Despite their importance, institutionai gender blindness often results iii women’s special needs and contributions being overlooked. To address women’s vuinerability to climate change impacts gender concerns must to be weaved into national screening processes. Iii order to

ensure equal consideration being given to ali stakeholders, gender concerns shouid be incorporated into project design guidelines, impacts shouid be monitored taking gender aspects into account and ali stakehoiders shouid be represented in national climate ehange pianning forums.

This Project supports national and sub-national government agencies in Cambodia, Laos and Vietnam in incorporating gender-specific concerns in their work on climate change reiated poiicies. By cooperating with nationai women’s groups, awareness and knowiedge of climate issues among women wili be strengthened, which wili enhance their position in the decision-making process. Three piiot projects, one in each participating country, wili be carried out and function as a 1mk between hands-on ciimate change mitigation work and poiicy formulation on questions relating to carbon finance. The pilot projects are on-going, providing training in low carbon technologies for women while raising climate change awareness in local communities and creating job opportunities. In order to collect and diffuse knowiedge and iessons iearned from these pilot projects and faciiitate their repiication, a regional knowiedge hub has been established, producing knowiedge material and diminishing resuits and iessons learned.

2.2. Relevance to NDF’s Mandate and Strategy The Project was screened against NDF’s Guideiines for Project Identification and Screening in connection with the financing proposal in 2011. The Project was deemed to fuifil the screening criteria because of its strong focus on climate change both at the nationai and sub-national poiicy level. In addition, pilot projects have resuited in concrete mitigation efforts. For exampie, the emission reductions under the improved cook stoves supplied in the Cambodia pilot is estimated to be 50% compared to the most common existing stove. The reductions wili be even greater when the househoids switch from wood to renewabie fueis (eg rice husk peilets). In the Vietnamese pilot project, the estimated emission reduction is estimated at 4.6 tCO2/year/digester.

Additional financing would improve the mitigation effects by increased distribution and availability of low-carbon technoiogies. In addition, support to the participating governments in accessing financing under the new climate finance structure is expected to resuit in finance for future mitigation projects, and, accordingly, further emission reductions.

NDF’ s strategy has been revised since the financing proposal of 2011. However, the Project is weli in line with NDF ’ s strategy for 2014-2015 as weli. The Project’ s main focus is capacity-buiiding, which is one of the three main areas for NDF financing under the current strategy. The Project’s gender focus clearly supports the objectives of NDF’s strategy and mandate. In addition, through its piiot projects, the Project supports the development of income-generating jobs and financial empowerment of women, which further enhances the Project’s reievance for NDF.

3. THE PROPOSED PROJECT

3.1. Objective (s) The objective of the Project is to support an improved enabling environment for gender-sensitive climate change mitigation policies and project finance in Cambodia, Laos and Vietnam by piloting a muiti-stakehoider approach. The Project will provide i) capacity development and training to national and/or sub-national entities mandated to address climate change and mainstream gender; ii) guiding principles on policies and institutional settings to improve country readiness to access new climate finance instruments; iii) improved access to iow-carbon technologies training in business and climate change project development to improve liveiihoods and access ciimate finance. These objectives will be reached by the outputs described below.

The additional financing is intended for extension in scope and scaling-up of outputs 2 and 3. The objectives for the scaling-up and extension of the TA is to , further enhanee climate finance readiness in the participating countries, taking into consideration the deveiopments on the climate finance scene, and to strengthen the on-going pilot projects to maximise benefits and support sustainability.

3.2. Project Activities /Outputs, The Projeet has three main outputs’:

Output 1 Mainstreaming gender concerns iii national and provincial climate change strategies, action- and mitigation plans.

Under this component, the TA is focusing on building capacity within national and provincial government agencies in Laos, Cambodia and Vietnam in order to mainstream gender concerns in national climate change reiated plans and policies. In addition, the TA will work on creating a more enabiing environment for wider stakehoider participation in policy dialogue and build skiils in leadership, negotiation and advocacy in women’s entrepreneur groups, as weli as knowhow related to access to climate finance.

Current status: A climate change poiicy and finance review and mapping exercise has been undertaken to determine entry points for the Project’s support activities. Gender and climate change workshops have been deiivered to government partners and stakehoiders to begin equipping them with strategies and tools to prepare climate finance projects and engage in gender-sensitive poiicy formulations.

In Cambodia, the JA is the Ministry of Agricuiture, Forestry and Fisheries (MAFF) and the Gender and Chiidren Working Group (GCWG) within MAFF has been assigned to work with the TA team. The TA will provide structured and targeted capacity-buiiding for the GCWG to ensure that there is a good understanding how climate change will affect peopie’s- and particulariy women’s- daily life, within the MAFF sectors. This knowledge wili be essential for GCWG to properly address climate change issues on gender reiated policies and action plans which GCWG is responsible for, but also to infiuence the Climate Change Prioritized Action Pian for Agricuiture, Forestry and Fisheries Sector 2014-2018, which is the high level climate change instrument guiding the work reiated to ciimate change within MAFF. The TA team has also initiated cooperation with the Ministry of Women’s Affairs (MOWA) and the Cambodia Council for Women (CNCW).

In Laos the IA is the Department of Disaster Management and Ciimate Change (DDMC), which is a department under the Ministry of Natural Resources and Environment (MONRE). There are reiativeiy few policy, strategy and planning documents that address ciimate change in Laos, but the IA and the TA team have worked on deveioping terms of reference to clarify the framework for cooperation and identified the main areas for cooperation as well as work plans. As DDMC has been approved as the National Designated Authority (NDA) for the Green Climate Fund (GCF), there has been an increased interest within the DDMC for capacity-buiiding activities, eg. to support gender-responsive NAMAs and generaiiy deiiver the obiigations of the NDA. The TA is timely, as the actions of the NDA are iikely to have a significant infiuence on the planning and impiementation of projects and consequentiy on what forms of input wiii be sought from stakehoider groups. The TA has also initiated cooperation with Lao Women’s Union (LWU) to provide support and training for LWU representatives reiating to climate change and gender mainstreaming,

In Vietnam, there are significant strategic and pianning documents on the national ievel, some addressing ciimate change and gender concerns. In Vietnam, the TA will, however, work on a

1 The progress this far under each output is described in more detail in Annex 1.

provincial level in the Quang Binh Province and the main implementing partner is URENCO (tjrban Environment and Development Limited Company), the state owned company responsible for sanitation, sewage, soiid waste and urban development. The Quang Binh Provincial Peopie’s Committee (QBPPC) will provide overail coordination and ensure the participation of Department of Natural Resourees and Environment (DONRE) and the Dong Hoi’s Women’s Union (DHWU). In Vietnam, the focus has thus far been on Output 3. The provinciai focus in combination with the operational nature of the IA does pose some challenges as regards output 1. The TA is stili trying to identify the entry point for working on output 1 and the TA team will continue to pursue opportunities for produetive poiicy and capacity building work as the Project continues.

Extension: An extension of the project period would further strengthen the timeliness of the Project and aliow the capacity-building work within national agencies to keep up with the developments within the climate finance and include assistance to GCF focal points A project period extending into 2016 wouid aiso aiiow the inciusion of results from the 21 st Meeting of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 21) in Paris in the end of the year.

Output 2 Setting up effective mechanisms to support stakehoider engagement and identfy gender-equitable benefit disiribution for replication

A regional knowledge coordination hub has been established, facilitated by the Institute for Giobal Environmental Studies (IGES), to share and exchange national pilot iessons, provide a piatform for stakehoider consultations and promote continuous monitoring, evaluation and enhancement of capacity-buiiding activities.

Current status: A review of climate finance and development assistance has been carried out and identified relevant areas for leveraging elimate finance to benefit women. IGES has aiso carried out desk studies on potentially important developments in integration of stakehoider engagement in climate finance which couid have implications for the TA. IGES ’ s issue brief on Gender and Climate (Harnessing Climate Finance for Women in Cambodia, Lao PDR and Viet Nam: A Survey of the Policy Landscape, August 2013) is availabie on NDF’s website. IGES has also followed the development of GCF’ s Gender Policy and Action Pian, which is relevant to the TA partiy due to the need to strengthen the NDAs capacities and mechanisms, partly due to the possibilities for IGES’ researchers to work with stakeholders involved in the process relating to GCF’s gender-sensitive approach. IGES has also looked into the NAMA preparation process and identified a need for support for gender-sensitive NAMAs.

Under output 2, training and workshops are planned for Laos and Cambodia. The tentative plans for policy discussions in Vietnam, both in Hanoi and Dong 1-Joi, are put on hoid to determine the status of the piiot project and ToRs with other partners. IGES will look into the possibilities to hold discussions with GCF regarding, for example, how to enhance stakehoider invoivement in different stages ofproject preparations. IGES will be present at COP21 and present new materiai based on their ongoing work on the stakehoider engagement mechanism under the TA. IGES is currently looking into the possibility to present the TA at a side event, which will be coordinated with NDF.

Extension: Subject to additional financing, output 2 would be extended in scope and time in order to take into consideration GCF operationaiisation and further strengthen the country levei activities on developments of readiness and access to ciimate finance. NAMAs are likeiy to be an important vehicie to access finance from GCF. An extension would facilitate the development of learning tools and a design tempiate outlining the key steps for gender-sensitive NAMAs. These tools would provide guidance on for policymakers seeking to mainstream gender into NAMAs and would strengthen the links between the TA and the developments in

international climate policy. The work would be carried out by IGEAS and SNV in cooperation. The steps involved in developing such tools would include:

- Interviews with experts working with GCF and other international organisations working with mainstreaming gender issues in climate negotiations to determine what the core elements of a gender sensitive NAMA are.

- Reviewing experiences from the TA, focusing on how key organisations can be involved in NAMA design, impiementation and evaluation. Focus should also be on what principles should be integrated into the NAMA in order to ensure a more equitable distribution of benefits.

Reviewing existing NAMAs and the support tools available for countries in formulating NAMAs.

The outcome will be a design template and learning tools outlining the key steps in designing a gender-sensitive NAMA. The tools would become part of a training module developed under the TA, but the intention is also to use the template and tools for designing a proposal for NAMA readiness funds in at least one of the participating countries.

Output 3 Three pilot projects implemented by women ’s groups, developing local tools and mechanisms to access climatefinancing.

The pilot projects under output 3 provide input to the policy dialogues held under output 1 and 2, bringing important knowledge based on first-hand experience to the discussions. The pilots are expected to showcase and demonstrate how women can benefit from activities andlor technologies addressing climate change issues directly and indirectly, either by optimal and active use of GHG mitigation technologies or through involvement in the supply chain of such technologies. Through these pilots, women’s groups will be economically empowered while at the same time educated in climate change issues and enabled to function as agents of change. Furthermore, the improved cookstoves produced and supplied through the pilot projects in Cambodia and Laos has significant health benefits due to the reduction in household air pollution.

In Cambodia, the pilot project will focus on activities to strengthen the role of women in the supply chain for advanced biomass stoves primarily as sales agents and promoters. This is done in cooperation with SNV’s Advanced Clean Cooking Solutions (ACCS) project and private distribution companies. Sales agents have been identified and training provided. The TA team is now looking into the different options for connecting a micro-finance institution to the pilot project in order to further facilitate distribution of clean stoves.

In Laos. the focus will be on the Improved Cookstove Program funded by EU Switch and Blue Moon Fund. The TA will together with Laos Disabled Women’s Development Center develop production centres for the complete cookstoves as well as for buckets used as part of the cookstoves, providing employment in both production and sales. Location for the production centres has been identified: two full-fledged production centres in Vientiane and Champassak, and two bucket producers iii Champassak and/or Savannakhet. Training and start-up of the production is ongoing.

In Vietnam, the pilot will focus on facilitating construction of new household bio-digesters. Tailor-made training has been given to female entrepreneurs in order for them to be able to start up and run their own biogas mason enterprises and provide eligible households with bio-digesters. A revolving fund, financed by a contribution from WFPF to be administrated by the Dong Hoi Women’s Union with URENCO as fund trustee, has been set up to provide micro-loans to eligible households for the construction of digesters. The revolving fund will ensure

sustainability of the pilot, and faciiitate access to low-carbon technoiogies also after the life of the TA.

Extension: Ali three piiots include naturai opportunities for scale-ups and extension of the pilot period. There is a high demand for the iow carbon-technologies provided under the piiots and a scale-up and extension would enhance the sustainabiiity and impact of the activities.

In Cambodia, scaiing-up would aliow the current activities relating to suppiy of advanced biomass stoves to be complemented by the start-up of a production-iine. A micro-finance mechanism wili be developed in cooperation with a micro-finance institution to make fmancing accessible for potential buyers of the cookstoves. This would increase avaiiabiiity, maximise effect and support sustainability of the activities.

In Laos, additionai finance would facilitate an additional production centre. There is a high demand for the improved cook stoves in the country and the scaling-up wouid accordingly respond to market demand.

In Vietnam, the pian is that the revoiving fund should be active for at least ten years, and after the end of the projeet period transferred to QBPPC, but stili managed by the DHWU. An extension of the project period wouid aiiow the operational mechanisms of the revolving fund to be fully established and valuable experiences to be drawn and put into use.

The piiot projects will increase househoid access to clean low-carbon-technologies. The extension and scaiing-up of the pilots would ensure not only greater impact and supported sustainability of the activities, but aiso ensure that experiences and lessons learned from the pilot activities can be used and inciuded into the capacity-building activities and policy-discussions under output 1 and 2.

3.3 NDF Components No specific NDF component, NDF’ s financing is used for ali activities under the TA, apart from one component under output 3.

3.4. Cost Estimates and Financing Pian NDF is financing the TA, apart from funding of USD 300,000 from the Water Financing Partnership Facility (WFPF) to finance the establishment of a revolving fund to support investments in biogas digester technoiogies in Vietnam under output 3. The WFPF is a multi-donor fund trust fund funded by the Governments of Australia, Austria, Norway, Spain and Switzerland and administered by ADB. ADB staff and travei costs are covered by ADB. The standard administrative fee of 5% for joint co-financing by ADB wiii be applied.

RETA 7914 REVISEB COST ESTIMATE

Additional Funds from

Nordic Development Fund

Technical Assistance Item Amount ($)

1. Consultants

a. Remuneration and Per Diem

i. International Consultants (68) person-months 192,070

ii. National Consultants (95) person-months 73,530

b. International and Local Travel 42,280

c. Reports and Communications 16,200

2. Equipment

3. Training, Seminars and Conferences 105,500

4. Surveys, Studies, and Impact Monitoring

5. Miscellaneous Administration and Support Costs

6. Contingencies 20,420

TOTAL 450,000

3.5. Nordic Interest The main objective of the Projeet is to enhance gender-sensitivity in climate change policies and project design as well as to give women a seat at the table in climate change related discussions. Gender equality is a core value in the Nordic countries and a natural part of the Nordic countries development policies.

3.6. NDF’s Added Value and Comparative Advantage NDF financing has enabled impiementation of the TA and additional financing will further ensure that the results from the TA will be sustainable and replicable. Results and lessons learned from the Project will be valuable in NDF’s work on gender mainstreaming.

At ADB, the TA team is discussing with other relevant units within ADB how to best implement lessons learned from the TA in ADB’s climate ehange projeets, especially pipeline GCF-projects as ADB is the first multilateral development bank accredited to receive project financing from the GCF.

In an effort to ensure that knowledge within the field of gender equality and climate change is shared and put into use, NDF has initiated a dialogue with the Climate and Development Knowledge Network (CDKN) who has a gender flagship project under impiementation. NDF intends to actively share lessons learnt with CDKN and others to ensure that the knowledge gained from this project is disseminated widely.

7

4. IMPLEMENTATION ARRANGEMENTS

4.1. Technical Aspects ADB is the Executing Agency and responsible for the overali administration and impiementation of the TA. As it is joint co-financing, ADB also administers the NDF funds in accordance with standard procedures for joint co-financing. The TA is carried out by a team of consultants, under two main consultancy contracts, representing intemationally recognised expertise in both gender and cliniate change issues. Among these is a regional co-ordinator, based iii the Mekong region, acting as team leader and has overail management and coordination responsibilities for the effective and timely impiementation of the TA. There are also three national co-ordinators, responsible for project impiementation at country level, reporting to and assisting the regional coordinator. The team is complemented by sector specialists and researchers at the knowledge hub. lii the partner countries, the respective govemments will be involved by MAFF iii Cambodia, DDMC (under MONRE) iii Laos and URENCO (on a provincial level), in addition to local women’s groups in each country.

An organisational chart is attached as Annex 2.

4.2. Institutional Aspects and Project Organisation The TA brings on board and facilitates exchange of ideas between stakeholders from several different camps and leveis. The policy development under the TA will affect governmental efforts as well as the design of future climate change investment projects by ADB but also with other climate financiers.

The institute hosting the knowledge coordination hub (IGES) has experience from convening stakehoider consultations and thereby fadiitating cominunication on elimate change issues. The host institute also has capacity for and experience from sharing information from environtnent and development projects as well as established channels to share information, not only in Asia but also internationally.

The Netherlands Development Organization (SNV) is managing overali TA coordination and overseeing the impiementation of outputs 1 and 3.

4.3 Procurement and Contract Structure ADB has recruited the project consultants using Quallty- and Cost-Based Selection (quality - cost ratio 90:10) in accordance with ADB’s Guidelines on the Use of Consultants. The initial contract with WOCAN for TA coordination and overview ofoutputs 1 and 3 was terminated and the existing contract with SNV was signed iii June 2014. An extension of scope and project period would resuit in an extension of the existing consultancy contracts, handled iii accordance with ADB’s guidelines.

4.4 Risk Analysis A risk foreseen in connection with the original approval was that a TA of this model could be a stand-alone project, with limited long-term mainstreaxning effects. However, as the TA impiementation is now on-going, it is clear that the TA will have lasting implications, both on a policy level and among the participants in the pilot projects. ADB and NDF can use the lessons leamed from the TA when designing future projects.

As the Project consists of several different outputs and components in three different countries, insufficient coordination could impair the Project results. However, there is good coordination within the TA team and SNV and IGES, together with ADB, are working effectively together to develop an integrated approach towards the implementing agencies and are building a coherent picture of the three outputs.

The delayed impiementation of output 1 in Vietnam may lead to limited results under output 1. The TA team will, however, continue pursuing opportunities for continued work under output 1 in Vietnam.

Potential integrity risks iii connection with the supply chains and fmancing meehanisms in output 3 could be looked into.

4.5 Monitoring and Evahiation The TA is managed by ADB and is subject to ADB’s interna.1 controls and monitoring procedures. ADB monitors the progress of the TA, its input and output results and reviews work progress and conducts review missions. NDF will receive regular reports on the progress of the impiementation as well as financial reports. A monitoring and evaluation specialist is supporting capacity-building within the field of monitoring. An indicator framework has just been developed for the pilot project in Cambodia, and similar indicators have been developed for the piots in Laos and Vietnam for the teaxns to incorporate. In addition, NDF will benefit from the work of the knowledge coordination hub, which will collect and distribute knowledge and lessons learned.

The Design and Monitoring Framework, updated with progress under the TA this far, is attached as Annex 1. If additional financing is granted, an updated framework will be developed to cover the extension and scaling-up ofaetivities.

5. ECONOMIC AND SOCIAL ASPECTS

5.1. Economic Justifieation The focus on developing policies relating to carbon financing will promote mitigation projeet initiatives by facilitating access to funding. This aspect would be further strengthened by an extension in scope and time, as it would also cover climate fmance mechanisms not existing when the Projeet was designed. The pilot projects will inerease livelihood opportunities in the low carbon technology sector for women entrepreneurs. Scaling-up and extension of the pilots will help meet market demand for low-carbon technology as well as support the sustainability of the piot activities by developing micro-finance opportunities and ensuring that operational mechanisms are in place.

5,2. Social Aspects The TA focuses on gender considerations, which in this case translates to a particular focus on women. As women are the iraditional caretakers of children and household, climate change projects benefitting women will inunediately benefit also children and entire communities. As stakehoider participation in the decision-maldng process is facilitated, the TA will also enhance the democratic process.

6. CONCLUSION

GCF’s newly adopted Gender Policy and Action Pian states that "It ts important to underline that by inciuding gender sensitivity iii its mandate and by taking steps to adopt a gender poiicy and action pian from the onset ofits activities, the Fund ts viewed as adding considerable value ro irs climate change activities. 2 " This statement underlines the importance of gender considerations iii the current climate financing discussions.

The purpose of mainstreaming gender into climate change related projects is to ensure a fair and equal distribution of the benefits from such projects and from climate finance. As GCF is becoming operational, climate fmancing is entering into a new phase. NDAs and other national authorities mandated to work on accessing climate financing will be required to comply with the requirements set out by the climate financiers. This TA is timely, working on different leveis and fronts to enable women to have a voice iii the climate change discussions and knowledge and skills to aecess climate funding. The initial delay in the TA impiementation may actually prove beneficial, as it has created opportunities that did not exist when the Project was designed. By financing the TA, NDF has an excellent opportunity to learn first-hand from the results and lessons from the TA and

2 Green Climate Fund, Gender Poiicy and Action Pian, GCF/B.09/10, 4 March 2015, Introduction, item 6.

integrate that knowledge and experience into future projects. By providing additional tinancing, NDF will further strengthen the process of making women agents of change as well as support activities directly aiming at climate finance readiness by providing both capacity building and practical tools to facilitate access to, for example, GCF funding.

10

ANNEX 1-DESIGN AID MONITORING FRAMEWORK

Performance Targots and Data Sources and Assumptions Design Summary lndlcatorc with Baselines Reportlng Mechanlsms and Risks

Impact Assumptlon Improved aocess to low- The number of women-led DNA annual reports in DMC growth carbon technology, and enterpnses using Iow- Cambodia, the Lao strategies and carbon revenue financing carbon technologies in the PDR, and Vietnam urban population improves Iivelihoods of project areas increased by pressure on women in urban and 50% by 2020 (from 2011 IGES and UN RISOE nonrenewable peri-urban areas in DMC baseline). databases resources makes pilot sites Iow-carbon

GHG emissions reduced by Low-carbon project technologies xx tons of CO 2 equivalent reports attractive. per DMC pilot site, with women receiving xx% of lmpact evaluation report the benefits from the resultant revenuea

Outcomo Assumption Improved enabling Gender is mainstreamed in DMC Climate Change DMC govemment environment for gender- national, provincial; or Policy and action plans is supportive of sensitive climate change subsector policy gender-focused mitigation policies and frameworks and action 20% of projects climate finance finance in target DMCs plans, by 2015. approved by DNA with Initiative

gender co-benefits

Impact evaluation report Risk Cultural constraints

ADB monitonng reports, to women’s project completion Ieadership

Outputs Assumptlons 1. Gender concems Capacity development Capacity development Sustainable mainstreamed in impiementation plans plans for Cambodia, the development is a national, provinclal; or prepared for Cambodia, the Leo PDR, and Vietnam priority for GMS subsector dimate Lao PDR, and Viet Nam countries. change strategies, action pIans and mitigation Gender-specific goals and National, provincial; or plansD targets incorporated In the subsector dimate

climate change action change action plans Carbon finance plans of participating methodology exists countries to receive carbon

credits from National, provincial; or National, provincial, or voluntary or subsector screening cntena subsector dimate compliance market for carbon flnance projects change financlng for proposed in partiapating countries documents projects. include gender-responsive benefit distiibution goaIs Low-carbon project and targets reports Risk

National 2. Effective mechanism Potential mechanism being procedures on supporting stakehoider discussed through carbon credit engagement process and consultations ADB monitoring reports, llnancing are gender equitable benefit project completion unclear. diatribution Identlfled for Regional knowledge reports repllcation coordination hub

estabiished MOU with international organisation with reputable expenence in

Gulding principles and climate change issues frameworks for beneflt and mechanlsms sharing formulated and shared Country-speciflc

reoommendations Lessons from stakehoider produced in consultation engagement process wlth govemment and shared at national and 1 clvii society stakeholders 1

11

Design Summary Performance Targots and lndicators wlth Basellnes

Data Sources and Reporting Mechanlsms

Assumptlons and Rieke

regional leveis Knowledge products, lessons, and best practices publications prepared for shanng through UNFCCC

3. Three pilot projects processes and successfully xx households in GMS pilot processes related to the implemented by national sites benefiting froni lower- Sustainable women’s groups to carbon technologiese (by Development Goals develop Iocal tools and end of 2012) (SDGs), and established mechanisms in order to sector and dimate access climate flnancing xx women’s groups trained knowledge sharing

to develop and access groups and/or hubs ° climate change finance project development and Project idea note financing (by end 0f 2012)d Project design

documents Pipeline of projects ted by women for dimate finance developed (by end of 2013) Successftil approval of

climate change financing

Activities wlth Mliestones Status of Impiementatlon lnputs Progress

Outputl Conduct scoping study to identify relevant govemment and NGO , women’s groups 1.1 - 1.3 have been Nordlc

and low-carbontechnology experts to form the national or provincial project flnalised Development Fund: teams and project advisors by the end of 2012. $2.7 million (�2

Conduct institutional analysis of relevant irnplementing agencies and women’s Activity 1.41.6 million) groups in the three GMS countiies, by month 2 from start of project. The main focus for Output 1

Conduct consultative workshops in each country to identify gaps in capacity and dunng the first quarter of Consultant prepare capaclty development Impiernentation plans, by the end of 2012. 2015 has been on servlces

Enhance skilts and knowledge of national project advisors (e.g., MRV assessments, establishing the basis for (international women’s leadership, group forrnation and organising, MM) to provide the working relatlonships consultlng training, as part of the regional team, to national ministries and women’s and planned activities services, 68 organisations, by the end of 2012. between the RETA and the person-months;

Develop and conduct tailored courses on climate change and urban development, implementing agencies national gender and climate change responses, women’s leadership, negotiation skills, (lAs) particularly in consulting advocacy skills, climate change financing mechanisms, and monitoring and Cambodia and Lao PDR - słtvices evaluation, by the end of 2012. as in Vietnam these efforts 95 person-

Mobilise a regional team (comprising three national project advisors, carbon project are focused on the months): development or TSF experts, and low-carbon technology experts) to provide agreements and the $1,920,000 training inputs and technical assistance to national ministries and women’s impiementation of the organisations, by the end of 2012. revolving ftind. The SNV Training,

and IGES teams have workshops and worked effectively together seminars: to develop an integrated $265.000 approach in their dealings with the lAs and to begin to Surveys, pilot build a coherent picture of projects, studies the three outputs. and monitoring:

$200,000 The IA in Leo PDR has been appointed as the NDA Equipment for the GCF and can $25.000 therefore play a cmclal role in fi.iture developments in Miscellaneous, the field of Climate Change adminlstration and Gender inclusiveness. and support An in-depth pian is costs: $155.000 developed on how to prepare the lA to be able to 1 Contingency:

12

Design Summaxy Performance Targets and Indlcators wlth Baselines

Data Sources and Reportlng Mechanisrns

Assumptlons and Risks

ensure gender indusion in $135,000 future NAMMNDC or other approvals. Govemments of

Cambodia, the Lao In Cambodia focus of the PDR, and Vietnam: Ouput 1 work is more on $300,000 (in kind) translation of existing policies into actions in the field as the capacity assessment has shown that this translation to the field ja difticuh for parties invoived. Also, it has been identifled that the gender-focused group in MAFF is not always invoived in the development of new programmes and the team will try to improve their interaction and networks within the ministry and beyond.

The RETA team has aiready been abie to provide inputs into some plans and proposais at the request of the lAs, and it ja expected that this integrated approach will continue as strategic and planning documents are further reviewed, opportunities for gender mainstreaming are identified, and training needs are assessed and addressed.

For Q2 and Q3 trainings and mentoring sessions are planned with the IA to address the above issues.

In Vietnam some difficulties are faced as the current focus is Ofl starting the pilot and the revolving fiind.

2. Output 2 Whiie at the aarne time, the 2.1 Map appropriate modalities and potential bamers to securing carbon flnance IA and VWU are not policy

for communities and women’s groups, by the end of 2012 influencers, but are on the 2.2 Map experiences with carbon revenue shanng to formulate guiding pnnciples impiementation side. In Q2

and allocation rules for equitable benefit shanng from climate change projects and Q3 more assessment is in Cambodia, the Lao POR, and VietNam, by the end of 2012. needed to identify the

2,3 Convene country consuitations to mainstream gender into climate change optimal approach for Output poiicy frameworks (in particular NAMAs), from by the end of 2014 1.

2.4 Share and exchange lessons through the UNFCCC processes, Rio+20 processes, and other forums where project resuits can he disseminated to a wider audience, from December 2013.

2.5 Review DMC provindal sector climate change mitigation programs of action, project screening cnteria, monitoring and evaluation, and benetlt dlstribution: identify Issues and provide recommendations (i) to improve support structure for gender co-beneflts (end year 1), and (ii) carbon revenue sharing (by the For 2.1, 2.2 and 2.4, IGES end of 2015) as outputs of national and regional consultation exercises. conducted desk study,

2.6 Prepare and disseminate publications/ andlor case studies (ongoing). interviews, and partiapated in capacity buUding activities wlth the former JA. This resulted in two

13

Design Summary Perforniance Targets and indicators wlth Baselines

Data Sources and Reporting Mechanlems

Assumptfons and Rlska

knowledge products and a training manual (based on the training) that will support disseminating the results from thatwork at COP 19 and 20; a new set of knowledge products based on recent consultations will aiso be shared at COP 21.

For 2.3 and 2.5 IGES has worked in collaboration with SNV to determine an agreeabie division of iabor. IGES will focus more broadly on institutional guidelines and how they interact with trends at the international level. The small group consultations and interviews with policyrnakers in Cambodia and Laos PDR to understand how RETA focal polnts engage with gender-

3. Output 3 related agencies. The 3.1 Evatuate avaliability of sex-disaggregated national data, review ongoing and resuits of the consuitations

past baseline data for entrepreneunal support projects, and lmprove TA aro leading to the planning baseline, by the end of 2012 of a small group mentoring

3.2 Review,identify and consoiidate best practices from prevlous Iow-carbon workshop to recommend technology projects that were community-driven or Ied by women to guide institutionai arrangements development of GMS-appropriate pipeline projects, by the and of 2012. that wili enable relevant

3.3 Conduct country-ievel resource assessments to determine priority Iow-carbon agencles to engage on a interventions to be led by women, and priojity pilot projects, by the end of reguiar basis in clirnate and 2012 gender planning. This Is

3.4 Develop selection critena and review existing fomial or infomaI women’s particularly relevant given groups In terms of their institutional setup, prögramrning and pianning recent development with the activities to determine suitability för pilot project support, by the end of 2012. recommendations to take a

3.5 Study the feasibiilty of lmplementing selected pilot projects, by the end of gender-sensitive approach 2012. to the Green Climate Fund

3.6 Based on scoping study and pilot selection process, xx women’s groups per and potential for gender- country wili be provided with technical training (e.g. climate resihence, urban sensitising NAMAs. waste management, clean energy and other Iow-carbon technologies, carbon markets, business development, Ieadership, and negotiation), by end of 2012.

3.7 Provide support to women’s micro -enterpnses in accesslng and using modem 3.1 � 3.4 Completed by the energy services and compiementaiy business inputs such as financing, first consulting firrn as climate change llnancing, and linkages with relevant instltutlons. pianned.

3.8 Develop a pipeiine of projects ied by women eligible for dirnate change Completed by the first Iinancsng, seiected from host investment projects (from each GMS country, consuWng flrm as pianned. covering a vanety of iow-carbon technoiogies: irnproved cook stoves, waste Ongoing activity during the management, recycling/composting), by the end af 2012. whoie impiernentation of the

3.9 Prepare a dimate finance development pian for selected priority interventions project. Also executed and and pilot projects by the end of 2012) presented as part of the

3.10 Prepare technical project design documents and other related reports to transition report register the selected pilot project by and of 2013. 3.5 Ali work plans have

3.11 Document pilot lesson ieaming and best practices and disseminate these been submitted by SNV and through various sector knowledge hubs and national, regional, and are updated every 6 International forums, from Juna 2013. months.

Pilot projects aro being implemented. Details aro in the attached quarteily progress report. 3.6-3.7 in Vietnam, thls started in Q1 2015, Leo PDR is in the preparatory phase and 18 starting end of Q2 beginning of Q4, and Cambodia had a pilot

14

Design Summan, Performance Targets and Indlicators wlth Baselines

Data Sources and Reportlng Mechanisms

Assumptions and Riske

training and is prepanng to scale up the training and support. 3.8 Will start mid-201 5 and is continuous until the end of the project. 3.9 Initlal steps have been taken, a draft outhne has been prepared. Final Draft wiilbepresentedintheQ2 report 2015. 3.10 A multi-country gender-sensitive P0A for improved cookstoves will be developed (a conclusion from 3.9) for Cambodia, Lao PDR and Vietnam. Due to the time pressure it is not expected to be registered within the timeline of this pr*ct 3.11 Wili start mid-2015, a flrst dissemination moment will take place at ACEF20I 5 in Manila.

ADB = Asian Devetopment Bank; W = carbon dioxide; DMC = developing member country; DNA = designated national authority; GHG = greenhouse gas; GMS = Greater Mekong Subreglon; IGES = Institute for Giobal Environmental Strategies; ME = monitonng and evaluation; MOU = memorandum of understanding; MRV = monitoring, reporting, and veriflcatlon; NAMA = natlonally appropnate mitigation action; NGO = nongovemment organisation; TSF = technical support läctiity; UNFCCC = United Nations Framework Convention on Climate Change; UN RISOE = United Natlons Environment Program Risoe Centre on Energy, Climate and Sustainable Development.

a) Amount of GHG emission reductions and percent of benellts to be determined after completion of the baseline study.

b) The technical assistance will engage at different leveis, responding to the opportunities and requirements in each country.

c) Number of households to be determined after confirmation of iow-carbon technology to maximize co-benefits, determination of minimum requirements justifying carbon development, and selection of appropriate methodologies under pilot development activities.

d) Final number of women’s groups to be detemiined after confirmation of low-carbon technofogy to maximize co-beneflts, detemiination of minimum requirements justifying carbon development, and selection of appropriate methodologies under pilot development activities.

e) Established sector and climate knowledge sharing groups indude GMS Working Group on Agriculture, GMS Working Group on Environment, CDIA piatlbrm, Asia Pacific Water Forum Water Knowledge hubs, Environment Operations Center, IGES and UNFCC platforms.

Source: Asian Development Bank.

15

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