methodology for tracking climate adaptation and mitigation finance

Methodology for Adaptation and Mitigation Finance Tracking

March 29, 2013

African Development Bank

INFRASTRUCTURE, REGIONAL INTEGRATION AND PRIVATE SECTOR VICE-PRESIDENCY

DEPARTMENT OF ENERGY, ENVIRONMENT AND CLIMATE CHANGE

Methodology for Tracking Climate Adaptation and Mitigation Finance

*Questions on this document should be referred to:

Mr. Gilbert MBESHERUBUSA Ag. VP, OIVP Ext 2034

Mrs. Hela CHEIKHROUHOU ONEC Director Ext. 2410

Mr. Kurt LONSWAY ONEC.3 Manager Ext. 3313

Mr. Mafalda DUARTE Chief CC Specialist/Task Manager Ext. 2447


March 29, 2013

Contents

1 Introduction ............................................................................................................................. 3

2 Guiding Principles of the Adaptation Tracking Methodology ............................................... 4

3 Guiding Principles of the Mitigation Tracking Methodology ................................................ 7

Annex 1. Climate Vulnerability Assessment ........................................................................ 10

Annex 2: Typology of Climate Adaptation and Mitigation for Tracking Purposes ............. 13

Major Sector: Agriculture and Rural Development ............................................................ 14

Major Sector: Industry, mining and quarrying .................................................................... 17

Major Sector: Transport ........................................................................................................ 18

Major Sector: Water Supply and Sanitation ......................................................................... 21

Major Sector: Power ............................................................................................................. 24

Major Sector: Communications ............................................................................................ 29

Major Sector: Finance ........................................................................................................... 29

Major Sector: Social ............................................................................................................. 30

Major Sector: More than One Social Sub-Sector ................................................................. 32

Major Sector: Urban Development ....................................................................................... 33

Major Sector: Multisector ..................................................................................................... 33

Major Sector: Public Sector Management .......................................................................... 34


March 29, 2013

1 Introduction

The international community recognizes the need to join forces to avert dangerous climate change. This requires mobilizing financial resources from a wide range of sources, public and private, bilateral and multilateral, including alternative sources. The Copenhagen Accord calls for a collective commitment by developed countries to provide ‘new and additional resources...approaching USD 30 billion for the period 2010- 2012 with balanced allocation between adaptation and mitigation... [and] in the context of meaningful mitigation actions and transparency on implementation, developed countries commit to a goal of mobilizing jointly USD 100 billion dollars a year by 2020 to address the needs of developing countries.’

While there is a wide agreement that rapid and successful deployment of this international public finance is a critical first step in allowing developing countries to adapt to climate change and pursue actions that will allow them to move onto a low carbon development pathway, it is also widely recognized, in particular by developing countries, the need to track and report financial flows that support climate change mitigation and adaptation, to build trust and accountability with regard to climate finance commitments and monitor trends and progress in climate-related investment. A comprehensive picture of the climate finance landscape is critical to this end and, ultimately, a prerequisite for ensuring the effective and productive use of available financial resources. This is essential to inform governments and policy makers on how to spend their money wisely. Recognizing this need and the shortcomings of the existing tracking systems, the Vice Presidents of the Multilateral Development Banks (MDBs) agreed in late 2010 to undertake joint efforts leading towards a joint methodology for tracking climate change mitigation and adaptation finance. The objective was to agree on key reporting principles, eligibility for aggregation and transparency. A Joint MDB Working Group on climate finance tracking was established, with the Inter-American Development Bank leading efforts on mitigation and AfDB leading efforts on adaptation. This report sets out AfDB’s methodology for adaptation and mitigation finance tracking which is the same as the Joint MDB methodology for adaptation finance reporting and an extension of the Joint MDB methodology for mitigation finance1. AfDB’s and the Joint MDB methodology is work in progress aimed at assisting the MDBs, as well as other organizations that might want to follow a similar approach in gradually converging towards a harmonized approach for the tracking of climate change finance. The methodology for adaptation finance tracking has already attracted a lot of interest from bilateral institutions

1 The principles of AfDB’s mitigation tracking methodology are the same as for the Joint MDB methodology, the

only difference being that the Joint MDB methodology follows a restricted positive list of eligible activities while AfDB’s one follows a wider illustrative list of activities.


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like AFD, JICA and KfW who intend to apply it to their 2012 portfolio and from national institutions in Africa and other regions. OECD is also considering adjustments to the Rio Markers based on the Joint MDB methodology. It is expected that the AfDB’s and the Joint MDB methodology will support AfDB in its efforts to mainstream climate change in project design, track and report climate finance flows internally and externally (e.g. OECD and annual Joint MDB Climate Finance Reports), facilitate the assessment of results from its climate investments and mobilize additional climate finance resources for Africa.

2 Guiding Principles of the Adaptation Tracking Methodology

It is proposed that AfDB’s approach for adaptation finance follows the same principles as the

joint MDB approach, namely:

It is purpose, context and activity based: A project activity must fulfill three design

process criteria for finance to be reported as adaptation finance. It must:

o Include a statement of purpose or intent to address or improve climate resilience

in order to differentiate between adaptation to current and future climate

change and good development;

o Set out a context of climate vulnerability (climate data, exposure and sensitivity),

considering both the impacts from climate change as well as climate variability

related risks;

o Link project activities to the context of climate vulnerability (e.g., socio-economic

conditions and geographical location), reflecting only direct contributions to

climate resilience.

The three criteria need to be included in the Project Appraisal Report or equivalent

and/or its technical annexes but no specific section or explicit inclusion in the Project

Development Objective or equivalent is required. Table 1 below provides a few

examples on how to apply the 3 design criteria.


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Table 1. Examples of application of the 3 design process criteria.

Illustrative

development

activity

Rehabilitate and

upgrade urban water

drainage systems

Introduce water-saving

measures

Enhance rural

livelihood through

community-driven

development

Vulnerability

context

Possible changes in

the

frequency/severity of

dashfloods and storm

surges brought by

CV&C

CV&C likely to

aggravate water

scarcity, putting at risk

irrigated agriculture –

an essential source of

food security,

employment and

livelihoods

Farmer communities

likely to suffer from

CV&C, through longer

dry spells and

increased variability

in monsoon patterns

Specific intent Design of project

takes into account the

anticipated impacts of

CV&C

Activity aims to

increase water

productivity in existing

irrigated areas to

increase resilience to

CV&C

Activity tackles

drought risk as CV&C

could otherwise

imperil livelihood of

rural communities

Activity linkage Project will help

better cope with

CV&C through

enhanced

infrastructure design

and improved climate-

risk management

(e.g., early warning)

Measures to be

implemented include

crop diversification

towards less water

intensive and higher

value crops,

preservation of soil

moisture and fertility

Drought adaptation

mechanisms through

community water

resources

management,

diversification of farm

and non-farm

livelihoods and

climate-risk

management tools.

CV&C: Climate variability and change

The approach is conservative to prevent the mis-labeling of development activities as

adaptation. Activities that do not explicitly meet all the above three criteria are not

included in reporting.


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Project activities should reflect one of the following adaptation categories. These are:

o Addressing current drivers of vulnerability specifically when designed to support

poor countries or communities exposed to climate risk: e.g. investments in

poverty reduction, income and livelihood diversification, health programs;

o Building resilience to current and future climate risks: e.g. reducing land

degradation and reforestation programs, introducing new varieties of crops or

farming techniques better suited for increased droughts/shorter rainfall seasons,

investment in adaptation products and services,2 supporting effective early

warning systems;

o Incorporating climate risks into investments especially for infrastructure with a

long lifespan: e.g. in energy generation and supply, airports, ports, water storage

infrastructure, major roads, bridges, railways and other transport corridors;

o Incorporating climate risk into development plans and policies: e.g. in local and

national planning, health system policies, water allocation programs/policies,

education programs/policies, support for research including in climate

information, agriculture, health etc.

Annex 1 provides more information on how AfDB’s Climate Safeguards System can be

used to inform project design as far as setting the context for climate vulnerability is

concerned. In addition, an indicative detailed list of adaptation activities is provided in

Annex 2 by AfDB’s sector and sub-sector codes as guidance for project design and

reporting purposes. This list reflects existing AfDB’s and other MDB’s experience in

delivering climate resilience projects. However, such a list can never be exhaustive, and

the primary test will be whether a project can demonstrate purpose, climate

vulnerability and activity response.

In terms of finance reporting process, the following is proposed:

Reporting is linked to AfDB commitments: The approach measures financial

commitments made by AfDB. All types of capital are eligible for reporting irrespective

of origin - including both AfDB own resources as well as AfDB managed investments

from dedicated adaptation finance facilities (e.g. PPCR, GEF, Adaptation Fund, LDCF,

2 Some projects or investments (particularly private sector) may be made in non-vulnerable sectors or geographies,

but have as their outcome a resilience benefit for other affected groups in downstream markets. Examples may include investments in resilient housing production or loans to financial intermediaries who will on-lend for resilience purposes. These linkages are sufficient for classification purposes, assuming that the vulnerability of the end user can be sufficiently established in the vulnerability assessment.


March 29, 2013

etc.). To prevent double counting (where external resources may be covered in bilateral

reporting), all external resources will be clearly separated from AfDBs own resources.

All types of instruments deployed by AfDB (debt, equity, guarantees, technical

assistance and grants) may be included.

Classification is made ex-ante project implementation: The qualification of a project

under this methodology does not imply evidence of the eventual delivery of climate

change resilience benefits. Inclusion is not a substitute for project-specific ex-post

evidence of resilience benefits, and projects seeking to demonstrate such effects must

do so through project-specific data.

An activity can be a project, a project component, or a proportion of a project: The

joint approach aims to report on adaptation activities disaggregated from non-

adaptation activities through a reasonable level of data granularity. This is done by

dissecting projects into main activity components, (e.g. as set out in project budget lines

or activity plans). For example, a project with a total cost of $100 million may have a

$10m component focusing on climate resilient agriculture – only $10 million would be

reported.3

Reporting mitigation-adaptation co-benefits: Some activities provide both mitigation

and adaptation co-benefits4. As a result, the financing for adaptation and mitigation

should not be added together to prevent double counting. Although not been possible

for all MDBs in this first trial year, it is expected that, going forward, where reported,

climate finance figures would have any overlap netted out.

3 Guiding Principles of the Mitigation Tracking Methodology

It is proposed that AfDB’s approach for mitigation finance follows the same principles as the

joint MDB approach, namely:

It is activity-based: An activity can be labeled as contributing to climate change

mitigation if it promotes “efforts to reduce or limit greenhouse gas (GHG) emissions or

enhance GHG sequestration.”5 In the absence of a formally adopted method for GHG

analysis at AfDB, mitigation activities considered in this methodological approach are

assumed to lead to emission reductions, based on past experience and/or technical

analysis. Ongoing efforts to harmonize GHG analysis among MDBs will bring more

4 E.g. Soil carbon sequestration and sustainable land management

5 OECD DAC. Definition of the Rio Marker on climate change mitigation. http://bit.ly/RioMit.

http://bit.ly/RioMit


March 29, 2013

consistency regarding the identification of mitigation activities in the long-term. This

methodological approach focuses on the type of activity to be executed, and not on its

purpose, the origin of the financial resources, or its actual results.

A type of activity can be labeled as contributing to climate change mitigation if it is one

among a set of options available to decision-makers and if it leads (according to the

available information) to a relatively significant emission reduction as compared to the

other options (even if the decision-makers make their decisions based merely on the

non-climate benefits of the activities). For example, utilities can choose between

renewable energy and fossil fuel electricity generation technologies; urban authorities

can choose between building more roads for passenger cars or promoting mass transit

systems; etc.

As further experience is accumulated (in particular by means of emission impact

assessments), activities may be included or excluded. Furthermore, an activity may be

mainstreamed to such an extent that it may become virtually the only option, in which

case it will no longer be considered as contributing to climate change mitigation. The

methodology needs to be dynamic, in order to capture these changes over time.

Reporting is linked to AfDB commitments: The approach measures financial

commitments made by AfDB. All types of capital are eligible for reporting irrespective

of origin - including both AfDB own resources as well as AfDB managed investments

from dedicated mitigation finance facilities (e.g. GEF, CIF, etc.). To prevent double

counting (where external resources may be covered in bilateral reporting), all external

resources will be clearly separated from AfDBs own resources. All types of instruments

deployed by AfDB (debt, equity, guarantees, technical assistance and grants) may be

included.

Classification is made ex-ante project implementation: Classification is made at the

project approval stage. The qualification of a project under this methodology does not

imply evidence of the eventual delivery of climate change mitigation benefits. The

qualification of a project under this methodology does not imply evidence of its climate

change effects. Inclusion is not a substitute for project-specific theoretical and/or

quantitative evidence of GHG emissions mitigation, and projects seeking to demonstrate

such effects must do so through project-specific data.

An activity can be a project or a project component: This methodological approach

aims to report on mitigation activities disaggregated from non-mitigation activities


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through a reasonable level of data granularity by dissecting projects into main

components. For example, a project with a total cost of $100 million may have a $10

million component for energy efficiency improvements – only the $10 million would be

reported.

The methodological approach measures financial flows, rather than greenhouse gas

(GHG) emissions reduced by the investment.

A detailed list of mitigation activities is provided in Annex 2 by AfDB’s sector and sub-

sector codes as guidance for project design and reporting purposes. This list reflects

existing AfDB’s and other MDB’s experience in delivering climate resilience projects. The

Joint MDB Mitigation methodology is based on a positive list of activities that are drawn

from the larger list included in Annex 2.

.


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Annex 1. Climate Vulnerability Assessment

Vulnerability assessment identifies who and what is exposed and sensitive to change. It may be

applied to infrastructure, environmental or social systems. A vulnerability assessment starts by

considering the factors that make people or the environment susceptible to harm, i.e. access to

natural and financial resources; ability to self-protect; support networks and so on.

AfDB’s Climate Risk Screening Approach

Overview of the Climate Risk Screening Process

The risk screening approach has developed a number of scorecards across sectors relevant to

the majority of ADFB interventions and investments. A total of 6 different scorecard templates

are included in the Climate Screening process, namely:

Agriculture – Cropping & Irrigation,

Agriculture – Livestock,

Energy – excluding Hydropower,

Energy – Hydropower only,

Water supply and sanitation – including water supply and sanitation and water

resources management,

Transport – Roads.

Project and Program Screening Tool

From the Task Manager To the Task Manager

SECTOR

Project

Context and

Components

Sensititivities and Exposure

to Climate and Hydrologic

Change

Relevant Climate and

Hydrologic Variables & Data

POTENTIAL IMPACT

Possible Changes in project

outcomes (beneficial and

adverse) in reponse

changes in Climate and

Hydrologic Variables

Report Results

Download Data for analysis and

reporting

Interpretation

Possible threats and vulnerabilities

What should be done in response

What further assessment is needed

What investigation needs to be

carried out (including outline TORs)

Geo-spacial

and

Graphical

Interface

Figure 4 Schematic Diagram of the Climate Risk Screening Tool


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Each scorecard has a set of key questions about the project, up to 7. Questions vary according

to the scorecard, but they relate mainly to topics that help to identify the nature of possible

climate risks. Examples of the topics are:

Design lifetime of project components

Service continuity

Flooding

Damage by erosion or landslides

Impact of severe weather conditions on project activities

Resources requirement

Resources availability and variability

Critical infrastructure

Capacity building

Technologies and system

Competing uses.

The possible answers to these questions are presented as a number of options (typically three

to five), each one with a predetermined score. The scores range from zero (where not relevant

to the project) to a maximum score (which varies from 5 to 40) depending on the significance of

the climate risks that relate the topic. The sum of maximum scores of all the questions in one

scorecard equals 100. This is the same case for all the scorecards, regardless of sector. The final

categorization of a project is determined by the cumulative score of selected options.

Scorecards are designed to cater for a range of projects. Therefore, not all questions are

relevant to all projects. If a question is not relevant for a specific project, then Task Managers

need to select the option ‘not relevant’, which does not add to the score.

Extract from Climate Safeguard System


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Annex 2: Typology of Climate Adaptation and Mitigation for Tracking Purposes

AfDB’s MAJOR SECTORs

AGRICULTURE AND RURAL DEVELOPMENT INDUSTRY, MINING AND QUARRYING ENVIRONMENT TRANSPORT WATER SUPPLY AND SANITATION POWER COMMUNICATIONS FINANCE SOCIAL URBAN DEVELOPMENT MULTI-SECTOR


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Major Sector: Agriculture and Rural Development

AA0: Agricultural

Activities with Adaptation Co-benefits Activities with Mitigation Co-benefits

Develop, test and introduce practices or techniques more resilient to CC&CV in farming systems, plant breeding, and livestock breeding.

Develop, test and introduce management systems for commons better adapted to CC&CV.

Research increased and new threats to forestry from CC&CV. Ex situ conservation of species and germplasm adapted to

CC&CV. Support incorporation of CC&CV into extension services and

programs.

Develop, test and introduce practices or techniques that reduce GHG emissions in crop production systems, animal husbandry systems, forest management systems and aquaculture management systems.

Develop, test and introduce practices or techniques to sequester CO₂ in agriculture, fishing and forestry.

AAA: Cash Crops & AAB Food Crops


Recover degraded areas for crop production through innovative management practices.

Introduce or expand soil management practices that control soil erosion, nutrient loss and improve the water regime in the soil profile (e.g. minimum tillage).

Reduce vulnerability of crop storage facilities to CC&CV. Switch to alternative crops and cropping patterns which are more

resilient to CC&CV. Introduce new varieties of crops through Industry research. Increase input of agro-chemicals to maintain yields.

Integrated organic and inorganic nutrient management. Switch to soil management techniques that reduce GHG

emissions or increase carbon sequestration. Reduce CH4 and NOx emissions in rice cultivation (System of Rice

Intensification). Switch to less water intensive crops.


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AAC: Irrigation and drainage


Change watershed, wetland and irrigation management systems and practices to reduce vulnerability to CC&CV.

Integrated ecosystem management approaches for watersheds and wetlands to reduce vulnerability to CC&CV.

Construct dams and water storage systems to manage changes in the water cycle due to CC&CV (including adapting the design of the infrastructures).

Improve field drainage and soil absorption capacity. Reduce run-off via contoured hedgerows and buffers. Re-negotiation of water abstraction agreements. Improve groundwater management.

Introduce or expand water pumping for irrigation using renewable energy sources.

Replace existing water pumps with more energy efficient pumps. Revise irrigation water pricing policies to increase water use

efficiency. Restore natural drainage regime that sequesters carbon.

AAD: Forestry/Plantations


Restore or maintain environmental services (including watershed functions).

Maintain resilience of forest systems. Maintain productivity of forest systems. Increased use of trees, woodlots, forests, wood and non-wood

products in rural adaptation strategies.

Re-forestation and afforestation to sequester carbon. Sustainable peatland/wetland management and protection. Avoided deforestation.

AAE: Livestock


Change management practices or techniques to reduce vulnerability to CC&CV in animal health service, pasture management, fodder production and storage practices. Examples: - Move herds from waterlogged fields - Increase shelter for animals - Windbreak planting to provide shelter for animals from

extreme weather

Increase sequestration capacity in fodder production and management.

Reduce release of GHGs in fodder production and management. Manure management and methane capture in animal

husbandry. Change forage systems to reduce ruminant methane emissions. Reduce fishing fleet.


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- Increase amount of wallows for outdoor pigs - Change breeding and shearing patterns for sheep production - Build fodder storage facilities - Match stocking densities to forage production

Improve energy efficiency in fishing fleets.

AAE: Fisheries/Maritime Food


Change fish farming and aquaculture practices or techniques to reduce vulnerability to CC&CV (e.g. due to changes in water quality or variation in fishing season). Examples: - Adapt fishing techniques, gears and vessels - Enhance post-harvest conservation techniques

AAZ: Agro-industry


Marketing and trade support for changing agricultural product mix in response to CC&CV.

Support new income generating opportunities utilizing natural resource better adapted to CC&CV.

Marketing and trade support for products that reduce GHG emissions per unit of output.

Marketing and trade support to substitute agricultural products that use inputs with lower GHG emissions.

Marketing and trade support for agricultural products that use integrated organic and inorganic nutrient management. Improve energy efficiency in existing production units.


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AZ0: More than One Agriculture and Rural Development Sub-Sector


Safeguard biodiversity as a resource to cope with CC&CV. Establish protected areas for species migration responding to

CC&CV. Increase landscape connectivity in response to CC&CV. Conserve threatened and endangered species ex. Situ. Invasive species management responding to CC&CV. Use of ecosystem functions to cope with CC&CV. Integrated Coastal Zone Management responding to CC&CV. Reduce risk of agricultural pests, diseases, weeds by use of new

pest resistant varieties and/or natural predators, monitoring of pests/diseases patterns and developing sustainable integrated pesticides strategies.

Introduce decentralized community-run early warning systems. Activities that cut across more than one sub-sector of the

Agriculture and Rural Development Sector.

Intensify or expand farm production using techniques that reduce GHG emissions or increase carbon sequestration.

Manage or rehabilitate mangroves to increase carbon sequestration and/or decrease GHG emissions.

Manage or rehabilitate wetlands to increase carbon sequestration and/or decrease GHG emissions.

Activities that cut across more than one sub-sector of the Agriculture and Rural Development Sector.

Major Sector: Industry, mining and quarrying

BAA: Mining


Substitute inputs to reduce GHG emission in existing coal mining operations.

Change operational procedures or techniques, or retrofit technologies to reduce GHG emissions in existing operations.

Improve water use efficiency in existing coal mining operations. Substitute inputs to reduce GHG emission in existing operations. Change operational procedures or techniques, or retrofit

technologies to reduce GHG emissions in existing operations. Improve water use efficiency in existing mining and other


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extractive industries (excluding coal)

BG0: General industry


Support industries that are better adapted to CC&CV. Retrofit assets and capital to protect against CC&CV. Incorporate new CC&CV resilient design standards. Activities that cut across more than one sub-sector of the

Industry, Mining and Quarrying Sector.

Other GHG reducing measures. Activities that cut across more than one sub-sector of the

Industry, Mining and Quarrying Sector.

Major Sector: Transport

DA0: Air Transport/Airport


Develop design standards for airports, air traffic routes and other aviation infrastructure to take account of CC&CV.

Construct new airports and aviation infrastructure that take into account CC&CV in the design (consider incremental costs only).

Upgrade existing airports and aviation infrastructure to to standards that take CC&CV into account (consider incremental costs only).

Enhance airport and aviation infrastructure maintenance to respond to CC&CV.

Reduce airport congestion before take-off and landing. Improvements in aviation facilities that reduce GHG emissions. Introduction of lower carbon aviation technologies. Shift from high carbon to lower-carbon transport modes. Reduction of carbon-content in aviation infrastructure facilities.

DB0: Road Transport/Highways


Develop design standards that take account of CC&CV impacts. Construct new roads and highways whose standards take CC&CV

into account (consider incremental costs only and use of existing standards).

Upgrade existing roads and highways to standards that take CC&CV into account (consider incremental costs only).

Investments specifically responding to new climate resilient

Investment in roads and highways to improve traffic flow and reduce GHG emissions per unit transported (e.g. toll roads).

Traffic management to reduce GHG emissions per unit transported (e.g. speed limits, high occupancy vehicles, cars to buses).

Shift to lower-carbon modes of road and highway transport including research & development.


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criteria (e.g. upgrade bridges). Enhance road and highway maintenance to respond to CC&CV

(e.g. capacity building for more frequent maintenance; equipment for maintenance)

High-efficiency, heavy-duty or light-duty vehicles retrofit (including the use of lower-carbon fuels, electric or hydrogen technologies, etc.).

Road freight logistics projects that streamline logistics and reduce empty running

Information campaigns and training to influence driver behavior

DC0: Railways Transport


Development and application of new design criteria to take account of climate change impact on rail infrastructure (e.g. replace lines)

Investments specifically responding to new climate resilient criteria (e.g. retrofitting railway lines that take CC into account; new railway lines that take CC into account)

Protect railways against extreme weather events (especially floods and storms) becoming more frequent and violent due to CC&CV (e.g. cooling electronic equipment in control room; improve drainage systems)

Railway transport (improvement of existing lines or construction of new lines, leading to shifting freight or passenger transport from road to rail).

New railway lines for electricity based railcars. Convert diesel or coal railcars to electric. Introduce lower carbon engine/vehicle technologies. Improve and expand rail networks, locomotives and wagons to

reduce GHG intensity per unit of transported (goods and people) (e.g. introduction and expansion of high speed trains).

Rail retrofit.

DD0: Water & Fluvial Transport/Ports


Develop design standards to take account of CC&CV impacts. Construct new ports that take into account CC&CV in the design

(consider incremental costs only). Upgrade existing ports to standards that take CC&CV into account

(consider incremental costs only). Enhanced port and waterway maintenance to respond to CC&CV

(e.g. sediments removal in river ports; capacity building for more frequent maintenance; equipment for maintenance)

Waterways transport (improvement of infrastructure for inland waterway transport or short-sea shipping, or construction of new infrastructure, leading to shifting freight or passenger transport from road to waterways)

Research & development to reduce the GHG intensity in sea and lake bound transport operations.

Boat fleet retrofit.


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Setup new waterways or change existing waterways in response to CC&CV (e.g. new drainage/waterway channels)

DZ0: More than One Transport Sub-Sector

Urban Transport


Develop design standards to take account of CC&CV impacts. Construct new urban transport infrastructure that take into

account CC&CV in the design (consider incremental costs only). Upgrade existing urban transport infrastructure to standards that

take CC&CV into account (consider incremental costs only). Investments specifically responding to new climate resilient

criteria (e.g. upgrade bridges or underground drainage systems). Enhanced road and highway maintenance to respond to CC&CV

(e.g. capacity building for more frequent maintenance; equipment for maintenance).

Urban traffic management to reduce GHG emissions per unit transported (e.g., speed limits, high-occupancy vehicle lanes, congestion charging/road pricing, parking management, restriction or auctioning of license plates, car-free city areas, low-emission zones).

Shift from high carbon to lower-carbon modes of transport (expand bus, rapid transit and other mass transit systems - mass transit systems that serve peripheral areas qualify only if mechanisms exist to avoid urban sprawl).

Integration of transport and urban development planning (dense development, multiple land-use, walking communities, transit connectivity, etc.), leading to a reduction in the use of passenger cars

Urban center renewal projects focused on attracting city dwellers back to urban centers, leading to a reduction in the use of passenger cars (in cities where centers have been partially deserted).

Research and development of lower-carbon modes of urban transport.


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General Transportation


Development and application of design criteria to take account of climate change impact on transport infrastructure.

Investments specifically responding to new climate resilient criteria.

Protection of transport infrastructure against extreme weather events (especially floods and storms) becoming more frequent and violent due to CC&CV.

Establishment of emergency services designed to cope with CC&CV related emergencies in the transport sector (e.g. special emergency vehicles to carry people).

Activities that cut across more than one sub-sector of the Transport Sector.

Shift from high carbon to lower-carbon transport modes such as from airplanes to trains, from cars to busses, from busses to trains and from trains to bicycles and walking.

Improve traffic flow to reduce carbon emission per unit transported.

Substitution of high carbon by lower carbon or non-fossil fuels thereby reducing carbon intensity per kilometer travelled.

R&D in low-carbon or non-fossil fuel transport technologies Improve vehicle emission standards. Improve fuel efficiency standards.

Activities that cut across more than one sub-sector of the Transport Sector.

Major Sector: Water Supply and Sanitation

EA0: Water supply


Demand side management to respond to CC&CV by reducing water consumption or increasing water use efficiency.

Supply side management to respond to CC&CV by expanding supplies, reducing water losses, incorporating recycling or reuse, or improving cooperation on shared water resources.

Strengthen storage capacity to cope with CC&CV. Convert and/or diversify water resources to build resilience to CC

& CV.

Reduce energy intensity of existing water supply systems (e.g. replacing pumps, optimizing pressure zones).

Reduce per capita water consumption using demand-side interventions (e.g. household water, shower, toilet, and dishwasher).

Change production techniques to reduce water consumption per unit of output produced in industry or commerce.

Reduce water supply network losses. Use of renewable energy for water supply pumps.


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EAZ: More than One Water Supply Sub-Sector

Flood protection


Retain or reestablish mangrove forests and wetlands as protection against floods.

Construct or strengthen levees, dykes, and embankments and tidal barriers to protect against added risks from CC&CV.

Incorporate CC&CV in design standards for drainage systems. Construct/strengthen water retention structures (e.g. dams,

detention basins) to protect against risks of CC&CV. Construction of evacuation shelters to cope with risk of CC&CV. Catchment area management aimed to build resilience to CC&CV.

Reestablish mangroves and floodplains with carbon sequestration properties.

Catchment management with carbon sequestration properties (e.g. reforestation and agroforestry).

EAZ: More than One Water Supply Sub-Sector


Develop water monitoring and information systems. Develop and implement equitable sharing of water resources

between competing demands (agriculture, hydropower, industry and household) under CC&CV.

Incorporate CC&CV related factors (e.g. changes in precipitation, temperature, run-off, and evapotranspiration) in hydro-meteorological forecasts, total and seasonal water availability, water demand and water storage planning.

Incorporate water cycles changes from CC&CV into national and trans-boundary water basin planning.

Design and implement conjunctive management strategies for groundwater and surface water incorporating water cycle changes resulting from CC&CV.

Establish early warning system for flood and/or drought. Relocation of structures and resettlements based on CC&CV risk

assessment.

Activities that cut across more than one sub-sector of the Water Supply Sector.


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Develop forecasting and prediction system and capability of CC&CV in support of operational decision making.

Activities that cut across more than one sub-sector of the Water Supply Sector.

EB0: Sanitation


Incorporate changes in design and operation of wastewater collection and transport systems in response to extreme weather and hydrological events arising from CC&CV.

Reduce or capture methane emission from ventilated improved pit latrines.

Promote use of aerobic process in on-site sanitation facilities (e.g. eco-san).

Safe recycling of nutrients from on-site sanitation facilities (e.g. VIP and septic tank).

EBD: Solid waste (treatment)


Incorporate changes in design of new and existing solid waste management systems in response to extreme weather and hydrological events arising from CC&CV.

Introduce or expand compost landfill techniques. Upgrade existing landfills to capture methane for energy

generation or gas flaring for CO₂ generation. Promote separation of solid waste for recycling including on-site

composting. Reduce energy consumption by reducing transport distance and

use of energy efficient transport. Promote reduction of solid waste production at source.


March 29, 2013

EBA: Treatment for Sanitation and EBC: Drainage for Sanitation


Incorporate changes in design and operation of wastewater treatment and transport systems in response to extreme weather and hydrological events arising from CC&CV.

Treatment of wastewater conservation/re-uses purposes to respond to declines in water availability due to CC&CV.

Reduce GHG emission (methane and nitrous oxide) from wastewater.

Use of renewable energy for wastewater pumps, waste collection and transport.

Reduce energy consumption during wastewater treatment (e.g. from activated sludge to upflow anaerobic sludge).

Capture or reuse of the biogas produced at sludge digestion. Safe recycling of nutrients and water from wastewater

treatment plant (e.g. biomass production).

Major Sector: Power

FA0: Electricity

Supply-side and demand-side EE


Taking account of climate variability and change in planning and designing future energy supply mix.

Demand side management to respond to CC&CV by reducing energy consumption or increasing energy efficiency.

Reduce supply side losses to respond to CC&CV. Design and application of new design criteria and technical

standards in planning location, and construction of power generation facilities in order to respond to CC&CV.

Reinforcement or establishment of new emergency services for the energy sectors to address climate change impacts.

Rehabilitate existing power plants to decrease GHG emission intensity

Replace existing power plant with more efficient facility. - High-efficiency thermal power plant retrofits - Renewable energy power plant retrofits (including

hydropower retrofits without increase in dam height or reservoir size)

Rehabilitate transmission and distribution systems to reduce

technical losses (DO NOT INCLUDE new or expansion of capacity


March 29, 2013

Climate related advisory services, regulatory support, or institutional strengthening aimed at improving energy efficiency: such as norms, building codes, fuel efficiency standards, energy efficiency awareness or training.

in Transmission & Distribution systems). - High-efficiency retrofit of transmission lines or substations,

without capacity expansion - High-efficiency retrofit of distribution systems, without

capacity expansion - Smart grid projects aimed at increasing the share of

renewable energy and/or improving system efficiency Improve energy efficiency in end-use -- in buildings, agriculture,

industry and municipal services. - Energy-efficiency in lighting, appliances and equipment; - Substitution of existing heating/cooling systems for buildings

by cogeneration plants that generate electricity in addition to providing heating/cooling;

- Retrofit of existing buildings: Architectural or building changes that enable reducing fossil fuel-based energy consumption for heating and air conditioning, exceeding available standards and complying with high energy efficiency certification schemes;

- Energy-efficient street lighting; - Water and sanitation utility energy efficiency retrofits; - Rehabilitation of district heating systems; - Reduction in energy use in traction (e.g. efficient tillage),

irrigation, etc; - Industrial energy efficiency (Substitution of equipment or

changes in processes, implying heat or electricity consumption reduction, reduction of heat losses and/or heat recovery);

- Substitution of boilers by cogeneration plants fueled by non-coal fossil fuels;

- Use of highly efficient architectural designs or building


March 29, 2013

techniques that enable reducing fossil fuel-based energy consumption for heating and air conditioning, exceeding available standards and complying with high energy efficiency certification or rating schemes.

Existing thermal power plant fuel switch from coal, diesel oil or fuel oil to natural gas or biomass

Improve energy efficiency through norms, building codes, fuel efficiency standards, regulatory support, awareness and institutional strengthening.

Improve utility scale energy efficiency through efficient pricing (subsidy rationalization, end user tariffs, and regulations on generation, transmission, or distribution), energy use, and loss reduction.

Efficient energy market operations. Strengthening capacity of institutions to plan for low-carbon

growth and environmentally sustainable energy supply. Waste heat recovery (including co-generation).

FAA: Thermal Generation


Improve climate resilience of thermal generation plants.

Install carbon capture and storage capacity in existing coal

operated power plants.

DO NOT INCLUDE new thermal generation plants

(including high efficiency plants e.g. super-and ultra-critical

power plants)

- Solar water heating and other thermal applications of solar power in all sectors

- Thermal applications of geothermal power in all sectors - Thermal applications of sustainably-produced bioenergy in

all sectors, including efficient, improved biomass stoves


March 29, 2013

FAB: Hydro Generation


Incorporate CC&CV related factors (changes in precipitation, run-off, temperature, evapotranspiration) in hydro-meteorological forecasts related to water demand for energy generation.

Incorporate impact of CC&CV in assessments of total and seasonal water availability for hydropower generation and water storage.

Water flow management throughout the hydrological cycle for hydroelectricity generation.

Construct new hydropower plant. - Hydropower plants without new reservoir - Hydropower plants with new reservoir only if net emission

reductions can be demonstrated Strengthen regulatory and institutional framework to support

expansion of hydropower generation.

FAC: Thermal Transmission and FAD: Hydro Transmission


Incorporate effects of extreme weather events (wind, ice, temperature) caused by CC&CV in design standards of transmission & distribution lines.

Incorporate impact of CC&CV on power system reliability assessments.

Changes to power systems to cope with shifts in seasonal peak demand (winter/summer) resulting from CC&CV.

New or expansion of transmission & distribution capacity solely facilitating electricity flows from hydropower or and other renewable sources. (DO NOT INCLUDE systems which carry electricity from thermal or other mixed sources).

Energy storage systems, greenfield. New energy storage systems aimed exclusively at

complementing renewable energy power plants in power grids.

FC0: Petroleum and FD0: Gas


Substitute inputs to reduce GHG emission in existing drilling and refinery operations.

Change operational procedures or techniques, or retrofit technologies to reduce GHG emissions in existing operations.

Use of associate gas that would otherwise be flared. Improve water use efficiency in existing oil and gas refineries.


March 29, 2013

FE0: Aeolian Energy and FF0: Solar Energy


Improve design of turbines to withstand higher wind speeds as a result of extreme weather events.

Improve design of solar panels to withstand higher intensity storms resulting from CC&CV.

Construct power generation capacity from solar thermal, solar PV and wind.

Strengthen regulatory and institutional framework to support expansion of wind and solar power generation.

Support wind and solar energy technology manufacturers.

FZ0: Other Sources of Energy


Secure access to water for crops used as bioenergy source (i.e. biofuel).

Activities that cut across more than one sub-sector of the Power Sector.

Construct power generation capacity from other renewable sources (biomass, geothermal and other non-hydro). - Geothermal power - Solid biomass power (pellets, sawmill residues, bagasse,

forest plantations, etc.) only if biomass resources are residues, or produced in a sustainable manner

- Biogas power (only if the biomass resources used for biogas production are residues, or produced in a sustainable manner)

- Ocean power (wave, tidal, ocean currents, salt gradient)

Strengthen regulatory and institutional framework to support expansion of renewable power generation.

Support renewable energy technology manufacturers. - Rural electricity with off-grid renewable energy (in the case

of hybrid systems, only renewable energy components are counted)

- Urban off-grid applications (PV public lighting)

Activities that cut across more than one sub-sector of the Power Sector.


March 29, 2013

Major Sector: Communications

GZ0: More than One Communication Sub-sector


Development of emergency response systems for use during extreme weather events.

Development of telecommunications infrastructure for use as part of a emergency response system during extreme weather events.

Public awareness raising campaign on CC&CV (including water use).

Enhance capacity of media to communicate impacts and consequences of CC&CV.

Major Sector: Finance

HA0: Banks


Introduce regulations and programs to support climate resilient investments.

Introduce regulations and programs to support GHG reducing activities.

HAA: Development Banking


Introduce green bonds or other securities specifically targeted at adaptation to CC&CV.

Introduce green bonds or other securities specifically targeted at reducing GHG emission or sequestering GHGs.

HB0: Non-bank financial institution


Include climate related diseases under the basic benefit packages of health insurance policies.

Expand insurance eligibility to populations vulnerable to climate related diseases.


March 29, 2013

Develop and introduce weather or climate indexed insurance programs (e.g. crop insurance).

Include climate related diseases in basic benefits of insurance policies.

HZ0: More Than One Financial Sub-Sector


Incorporate vulnerability to CC&CV in housing design standards. Regulate or provide incentives in housing finance to discourage

settlements in areas vulnerable to CC&CV. Regulate or provide incentives in housing finance to encourage

upgrading of existing real estate that reduces vulnerability to CC&CV.

Ease access to finance targeting adaptation to CC&CV by microfinance institutions.

Ease access to finance targeting adaptation to CC&CV by microfinance institutions.

Analysis of impact of CC&CV on long-term growth, and poverty.

Regulate or provide incentives in housing finance to support energy saving designs and standards.

Provide lines of credit for investments in reduction of GHG emissions and/or absorption of GHGs.

Support SMEs to reduce GHG emissions and/or absorption of GHG.

Support to access carbon markets. Credit lines for investments in reduction of GHG emissions

and/or absorption of GHGs. Support to SMEs to reduce GHG emissions and/or absorption of

GHG. Support to access carbon markets.

Major Sector: Social

Major Sub-Sector: Education

IA0: Education


Capacity building to address vulnerability to CC&CV.

IAC: Secondary education


Development of Climate-adaptation focused curricula or programs.

Development of curricula or programs focused on reducing GHG emissions.


March 29, 2013

IAD: Tertiary education


Development of Climate-adaptation focused curricula or programs.


IAE: Technical/Vocational training


Train for new business opportunities created by CC&CV. Train for adapting to and coping with climate change (e.g.

ecosystem based adaptation).

Train workers in GHG reducing activities. Train managers and workers to reduce GHG emissions in

business operations.

IAF: Teacher Training Education


Awareness raising programs on CC&CV.

IAG: Adult literacy




IAH: Distance Learning





March 29, 2013

Major Sub-Sector: Health

IB0: Health


Develop and introduce health surveillance and rapid response system that reduces the health impacts of CC&CV (e.g. heat-watch).

Develop guidelines on treatment of climate related health issues in newly exposed areas due to CC&CV.

Training and education of health personnel on treatment of CC&CV related health issues.

Upgrade health systems to respond to changes in environmental health risks from CC&CV (e.g. malaria).

Major Sector: More than One Social Sub-Sector

IZ0: More than One Social Sub-Sector


Assess impact of CC&CV on livelihoods and poverty with a focus on vulnerable groups (women, indigenous people, and the elderly).

Inclusion of vulnerability to climate change as a poverty indicator. Development of pricing and taxing policies supporting

implementation of adaptation measures. Delivery of social services, including social infrastructure

specifically designed to respond to risks caused by CC&CV. Cooperation with CBOs, NGOs and local government in

developing and implementing adaptation measures. Development of social protection strategies to respond to CC&CV. Inclusion of adaptation measures in public works programs. Develop food safety/food security measures that take account of

new conditions caused by climate change. Development of

Activities that cut across more than one sub-sector of the Social Sector.


March 29, 2013

market-based risk financing mechanisms (insurance schemes). Development of livelihood diversification strategies to reduce

dependence of climate related income opportunities. Activities that cut across more than one sub-sector of the Social

Sector.

Major Sector: Urban Development


Incorporate new CC&CV resilient design standards in new buildings.

Install new heating and cooling systems using renewable energy. Retrofit heating and cooling systems in existing housing units

using renewable energy.

Major Sector: Multisector

Central government administration


Review institutional arrangements for incorporating CC&CV. Develop cross sectoral adaptation strategy by central

government. Reform fiscal policy to support adaptation. Upgrade meteorological service to include capacity to analyze

Global climate/circulation models. Develop cross sectoral adaptation strategy by sub-national

institutions. Land use and development planning and zoning that direct urban

growth away from areas vulnerable to CC&CV. Introduce, revise or enforce regulations implementing adaptation

measures. Activities by legislative bodies related to adaptation.

Review institutional operations and practices to reduce the carbon footprint of government institutions.

Develop cross sectoral mitigation planning by central government.

Fiscal policy reform to support GHG reduction. Develop cross sectoral mitigation planning by sub-national

government. Urban planning and zoning to reduce carbon footprint. Introduce, revise or enforce regulations implementing measures

to reduce GHG emission or sequester GHGs. Activities by legislative bodies related to mitigation.


March 29, 2013

Major Sector: Public Sector Management

KA0: Public Sector Management – Agriculture, fishing, forestry


Assess economic or social impact of CC&CV on agriculture, forestry and fishery.

Incorporate CC&CV considerations in rural policies and institutions

Establish or strengthen environmental regulatory institutions and policies as instruments for adaption to CC&CV.

Introduce rules and regulations to reduce the emissions of GHGs, or absorption of GHGs in the agricultural, fishing and/or forestry sectors

KA0: Public Sector Management – Industry


Introduce rules and regulations to reduce GHG emissions, or absorb of GHGs in industry and trade.

Marketing/trade policies that reduce energy consumption per unit of product.

KA0: Public Sector Management – Transportation


Incorporate risks from CC&CV in transportation system planning.

Sector reform to improve energy efficiency in the transport sector (e.g. introduction of congestion tolls).

Capacity building related to energy efficiency in the transport sector.

Administration, sector studies, surveys, assessments and information systems on water and energy use efficiency in the transport sector.


March 29, 2013

KA0: Public Sector Management – Water supply and sanitation


Incorporate risks from CC&CV in water, sanitation, flood and water resources management planning.

Develop IWRM plans for efficient use of resources (e.g. hydropower, navigation, multipurpose infrastructure and trans-boundary infrastructure).

Assess CC& CV risk with focus on vulnerable groups and develop risk management measures.

Incorporate CC &CV risk assessment in land use planning. Raise awareness and build capacity of institutions and

communities to cope with CC&CV. Develop emergency plans to cope with extreme events (e.g.

evacuation plans, rescue plans).

Sector reform to improve water use efficiency (e.g. water pricing).

Administration, sector studies, surveys, assessments, information systems and capacity building on energy and water use efficiency in water, sanitation and flood protection.

Development of catchment management plan and flood/drainage management plan which contribute to strengthen carbon sink.

Development of IWRM plans for efficient use of resources (e.g. hydropower, navigation, multipurpose infrastructure and trans-boundary infrastructure).

KA0: Public Sector Management – Power


Account for extreme weather events (wind, ice, temperature) caused by CC&CV when planning for power system reliability.

Improvements in hydro-meteorological forecasting and information tailored to energy generation under current and future climate trends as well as extreme events that will influence water storage calculations and water use, in energy generation and transmission, or energy demand profiles, transmission and generation efficiency, and infrastructure integrity.

Change operational management practices at power generation facilities due to CC&CV.

Reform (e.g unbundling, market structure) to reduce risk and vulnerability to CC&CV

Capacity building or strengthening capacity for energy sector

Capacity building related to energy efficiency, environmental management in the energy sector, and efficient energy pricing

Administration, sector studies, surveys, assessments and information systems on energy efficiency, and efficient energy pricing

Sector reform and capacity building (only if related to energy efficiency, environmental management in energy sector, and efficient energy pricing).g.


March 29, 2013

institutions (national utility companies, regulators, ministries) to improve climate risk management in the energy sector.

KA0: Public Sector Management – Finance


Fiscal policy and management measures in support of adaptation. Economic research, modeling and policy making for adaptation. Economic analysis of financial needs for adaptation to CC&CV

(cost of adaptation).

Fiscal policy and management measures in support of mitigation. Economic research, modeling and policy making for mitigation. Reduce fossil-fuel consumption through taxes, levies or fees on

energy or transport services.

KA0: Public Sector Management – Education


Review of curricula to take account of climate aspects in basic education, vocational training and other forms of follow-up training and education.

KA0: Public Sector Management – Health


Assess changes in risk, exposure or sensitivity to CC&CV related diseases for vulnerable groups.

Incorporate climate related health risks into clinical practice guidelines, and curricula for continuous medical education.

Take anticipatory and response measures to counteract increased exposure to climate related diseases.

Strengthen health management information systems.

KA0: Public Sector Management – More than One Social Sub-Sector


Identify groups vulnerable to CC&CV (such as floods and, droughts) and actions to counteract such exposure.

Strengthen civil society participation in the development of policies and programs to cope with CC&CV.

Reduce risk to, and align labor market with conditions resulting


March 29, 2013

from CC&CV.

KA0: General Public Sector Management


Review of Public Sector Governance at central, regional or local level aimed at incorporating CC&CV aspects.

Review of operations and practices in public sector institutions at central, regional and local level with regard to rules and regulations aiming at reducing the climate footprint of such institutions.

methodology for tracking climate adaptation and mitigation finance

Documents