Challenges for Climate Change Mainstreaming and Tracking the Effectiveness of Mitigation Projects -Cases from JICA Projects

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1 Climate Change Expert Group Global Forum September 2013 OECD Conference Centre, Paris Challenges for Climate Change Mainstreaming and Tracking the Effectiveness of Mitigation Projects -Cases from JICA Projects Yukichi USUI (Mr.), Deputy Director, Office for Climate Change / Environmental Management Group, Global Environment Department Japan International Cooperation Agency (JICA)

2 Contents (1) JICA s Challenges for Mainstreaming Climate Change (2) Case Studies for Tracking Effectiveness of Mitigation Projects (3) Argument

3 (1) JICA s Challenges for Mainstreaming Climate Change

4 Japan s Role for Climate Change and Development JICA and Japan s ODA Since 1954, Japan has been providing financial and technical assistance to developing countries through ODA (Official Development Assistance). JICA (Japan International Cooperation Agency) is in charge of administering all ODA except contributions to international organizations. JICA, taking advantage of accumulated experiences, the results of assisting of developing countries and Japan's technology, conducts multi-benefit assistance, which contributes to sustainable developments in developing countries and simultaneously contributes to resolve various development subjects. JICA assists by mixing organically financial and technical assistance for mitigation measures, which contribute to reduce greenhouse gas (GHG) emission and for adaptation measures to the negative effects caused by climate change in various sectors. ODA Bilateral assistance JICA Multilateral Assistance *This excludes Grant Aid which the Ministry of Foreign Affairs will continue to directly implement for the necessity of diplomatic policy. Technical Cooperation ODA loans*, Overseas investment and loan Grant Aid Disaster relief Cooperation through citizen participation 4

5 Comprehensive Assistance JICA s Approach: Low-Carbon and Climate Resilient Development Cooperation Climate Change, A Global Agenda Climate Compatible Sustainable Development Technical Cooperation Financial Assistance Policy Dialogue Public-Private Partnership Research / Studies <Mitigation: Low-carbon Society> Strategic Mitigation Actions (NAMA MRV REDD+, etc.)* Low-carbon Technologies (Renewables, Energy Efficiency, etc.) Efficient Use of Resources, etc. (Mass Transit, Smart-grid, etc.) Policy & Institutional Reform, Finance Mechanism, Human Resource Development Modeling / Vulnerability Assessment (Climate Prediction, GIS**, etc.) Enhancing Adaptive Capacity (Awareness, Early Warning System, etc.) Resilient Infrastructure (Irrigation, Flood Control, etc.) <Adaptation: Climate Resilient Society> Energy, Transport, Forestry, Waste Management, etc. Reduction of GHG Emission Responding to Climate Change Enhancing Adaptive Capacity Equitable Growth Sustainable Development Human Security Disaster Risk Management, Water, Agriculture. Sanitation, etc. NAMA (Nationally Appropriate Mitigation Actions) MRV (measurable, reportable, verifiable) REDD+ (Reduction of Emission from Deforestation and Degradation) **GIS (Geographic Information System)

6 Co-Benefits Approach -Examples An approach to reduce GHG emission compatible with sustainable development Reducing methane emissions with semi-aerobic landfill systems Reducing methane emissions with wastewater technology/equipment Saving energy with high efficiency boilers/processes Reducing Air Pollution from Cars 6

7 Project Formulation Process and Climate Change Mainstreaming (Case of ODA Yen-Loan) <Project Formulation Process> Adoption of Project Concept Preparatory Survey Feasibility Study (F/S) Appraisal Intergovernmental Agreement Project Implementation <Process of Climate Change Mainstreaming> (1) Pre-Screening of Mitigation/Adaptation Potentials (2) Climate Change Mainstreaming through dialogue between Implementing Agency and JICA Utilization of JICA Climate-FIT (Finance Impact Tool) <Mitigation> Identification of Mitigation Options and Data Collection for GHG Estimation <Adaptation> Vulnerability Assessment and Identification of Adaptation Options (Mitigation/Adaptation to be Specified as Project Purpose, Expected Outcomes, Project Indicators, etc.) (3) Confirmation with Implementing Agency on Contribution to Mitigation/Adaptation in Decision-Making Documents (4) Official Agreement with Recipient Government on Contribution to Mitigation/Adaptation in Official Intergovernmental Agreement (5) Completion of Ex-ante Evaluation Sheet with Specification of Contribution to Adaptation/Mitigation, to be Open to Public in JICA Website (6) Application of Rio-Marker Application of Rio-Marker according to OECD-DAC Definitions

8 Essential Elements for Development Effectiveness Capacity Development The process in which individuals, organizations, institutions, and societies develop abilities either individually or collectively (to respond to issues) to perform functions, solve problems, and set and achieve objectives. DAC Criteria for Evaluating Development Assistance -Relevance The extent to which the aid activity is suited to the priorities and policies of the target group, recipient and donor. -Effectiveness A measure of the extent to which an aid activity attains its objectives. -Efficiency Outputs -- qualitative and quantitative -- in relation to the inputs -Impact The positive and negative changes produced by a development intervention, directly or indirectly, intended or unintended. -Sustainability Whether the benefits of an activity are likely to continue after donor funding has been withdrawn 8

9 JICA Climate Finance Impact Tool (JICA Climate-FIT) Draft Ver. 1.0 June 2011 JICA has prepared Climate Finance Impact Tool (JICA Climate-FIT), a reference document which contains the following components in order to facilitate consideration of policies and formulation of projects for assisting climate change related measures in developing countries. 1.Methodologies for implementing measurement, reporting and verification (MRV) related to quantitative evaluation of mitigation projects that contribute to reduction or sequestration of greenhouse gases (GHG) (25 sub-sectors) 2.Concepts and guidelines for mainstreaming adaptation considerations into projects that contribute to reduction of vulnerability against climate change, and sustaining and increasing adaptive capacity and resilience (15 sub-sectors) 9

10 Framework of JICA Climate-FIT Chapter 3 Basic Concept and Guidelines for the Quantitative Evaluation of GHG Emission Reduction (Sequestration) Basic Concept 1 Quantitative Evaluation 2 Basic Concept Outline of Methodology Sheet and Calculation Sheet 1 Aim and Application 2 Outline of Methodology Sheet 3 Outline of Calculation Sheet Chapter 1 Introduction Chapter 4 Methodology Sheets and Calculation Sheets Outline of Methodology and Calculation Sheets for Each Sub-sector Methodology Sheet 1. Typical project outline 2. Applicability 3. Methodology on emission reduction (1) Baseline emission (2) Project emission 4. Data required for estimation and monitoring <Timing of calculation> <Data acquisition methods> <Priority among options> 5. Others (1) Project boundary (2) Leakage (3) Reviewed methodologies and major differences Calculation Sheet (1) Input Sheet (2) Result Sheet Identification of Mitigation Projects Chapter 2 Selection of Target Sub-sectors and Review of Existing Methodologies Selection of Target Subsectors 1 Past JICA ODA Loan Projects (Classification of yen loan projects from 1995 to 2010) 2 Trend of Other Donors Methodologies of Other Certification Organizations, etc. 1 Reviewed Methodologies 2 Existing Methodologies for Targeted Sub-sectors Target Sub-sectors Forest and natural resources conservation 1. Afforestation 2. Forest conservation Traffic and transportation 3.Freight / passenger transportation improvement 4.MRT 5.Mono-rail 6. Bus Energy conservation (Industry) 7.Energy efficiency improvement 8.Cogeneration (electricity and heat supply) 9.Fuel switching Energy 10.Energy plant with fuel switching 11.Thermal power cogeneration (electricity and heat supply) 12.Thermal power with fuel switching 13.Thermal power with higher efficiency 14.Power transmission with improved efficiency 15.Power distribution with improved efficiency 16.Rural electrification Renewable energy 17.Hydro power 18.Wind power 19.Photovoltaic power / solar heat 20.Geotherma 21.Biomass Sewerage, urban sanitation 22.Landfill disposal of waste 23.Intermediate treatment of waste 24.Drainage treatment 25.Sewerage Chapter 3 Definitions and Steps in Adaptation Planning The Basic Concept Vulnerability Assessment Adaptation Project and Business-as-Usual (BAU) Development with Adaptation Options Maladaptation Evaluation and Monitoring Required Data Chapter 1 Introduction Chapter 2 Review of Existing Resources Chapter 4 Selection of Target Sub-sectors Chapter 5 Basic Concept and Guidelines for Adaptation Measures Structure of Sub-sector Profiles 1) Basic Concept i) General concept ii) Vulnerability iii) Adaptation iv) Maladaptation 2) Adaptation Project Guideline i) General concept ii) Vulnerability assessment iii) Project evaluation of adaptation measures iv) Necessary consideration for planning of adaptation measures v) Required data 3) BAU Development with Adaptation Options Guideline i) General concept ii) Vulnerability assessment (risk and change) iii) Planning adaptation options iv) Project evaluation of adaptation options v) Necessary consideration for planning of adaptation options vi) Required data Identification of Adaptation Projects Categorization of Typical Adaptation Measures Past JICA ODA Loan Projects (Classification of yen loan projects from 1995 to 2010) Integration of Detailed Classifications into Target Sub-sectors Trends of Projects by Other Donors Selection of Target Sub-sectors Water Resources 1.Water resources Target Sub-sectors Agriculture 2.Irrigation and drainage 3.Enhancement of farm management Forestry and natural resources conservation 4.Forest preservation, afforestation 5.Ecosystem integrity Disaster Management 6.Flood control 7.Coastal protection 8.Sediment-related disaster prevention 9.Information system Urban-regional Development 10.Rural/urban development Transportation 11.Bridge, road and railway 12.Port and airport Sanitary Improvement 13.Water supply 14.Sewerage and drainage 15.Medical healthcare Understanding future climate change Framework of Mitigation Report Framework of Adaptation Report 10

11 (2) Case Studies for Tracking Effectiveness of Mitigation Projects 11

12 Case 1 Renewable Energy Development Project in Bangladesh (ODA Yen Loan) Loan Agreement: March 10, 2013 Loan Amount: 11,335 million Yen Executing Agency: Infrastructure Development Company Limited (IDCOL) Operation and Maintenance System: Sponsor agencies #Financial Intermediary Loan (Two-Step Loan) implemented through the financial institutions of the recipient country based on the policy-oriented financial system Project Background Insufficient electricity supply with increasing electricity demand, per capita electricity consumption remaining at the lowest level in the world (252 kwh) Challenge to facilitate increase of power supply capacity through development of new power sources through diversification of energy resources including renewable energy, especially in rural areas Project Objective To promote the increase of power supply and the diversification of energy source, by financing the installation of solar PV power generation and biomass power generation mainly in the rural area, thereby contributing to sustainable economic development, improvement of the people s living conditions and mitigation of climate change Project Components 1) Provision of funds to sponsor agencies in charge of sales and maintenance and management of equipment in order to implement sub-projects for renewable energy 2) Consulting services: monitoring, sub-project screening support, technical assistance, etc. Schedule To be implemented from March 2013 to December 2016 (46 months in total) 12

13 Targeted Outcomes (1) Quantitative Effects <Performance Indicators> Indicator (Unit) Target (2018) Yearly Power Generation Volume (MWh/year) 63,162 Installed Generation Capacity (MW) Effect of the Reduction of CO2 (CO2 conversion tons/year) 40,422 <Economic Internal Rate of Return (EIRR) > sub-projects with their EIRR over 12% are to issue loans with regard to the project components other than the SHS (Solar Home System) (2) Qualitative Effects Sustainable economic development, livelihood improvement, and climate change mitigation. 13

14 Case 2 Delhi Mass Rapid Transport System Project Phase 3 (ODA Yen Loan) Loan Agreement: March 29, 2012 Loan Amount: 127,917 million yen Executing Agency: Delhi Metro Rail Cooperation Limited (DMRC) Project Background Rapid urbanization and surging number of automobiles and motorcycles (with annual average growth of 11% since 1997), resulting in heavy traffic congestion and air pollution Project Objective Extending the mass rapid transport system totaling approximately 103 km (total 245km throughout phase 1-3) in length, thereby contributing to regional economic development and improvement of the urban environment Project Components 1) Civil works (underground section of 17.3 km on Line 8 (including 12 underground stations), tracks for all the lines, etc.) 2) Electrical and Signaling & Telecommunication System 3) Procurement of Rolling Stocks (enhancement of the transportation capacity of the above-mentioned four sections and some existing lines) 4) Consulting services (design review, construction monitoring and supervision etc.) Schedule March 2012 October 2020 (104 months in total) 14

15 (1) Quantitative Effects <Performance Indicators> Targeted Outcomes Indicator Target (2022) Operation rate (%/year) 92 Running distance (1000km/day) Number of running trains (number of trains/day, one direction) 782 Volume of transportation (million persons-km/day) 38.0 Income from Passengers (million rupees/day) 71.1 Economic Internal Rate of Return (EIRR) : 16.33% (2) Qualitative Effects Improvement of traffic conditions, mitigation of traffic pollution, mitigation of climate change, improvement of convenience through punctuality with regard to travel times, and economic growth in the Delhi metropolitan area Estimated GHG emission reduction as Project Impact -About 22 million tons (in terms of CO2 equivalent: total amount of the reduction between 2008 and 2032 achieved by Phases 1 to 3), due to both of below: Introduction of regenerative braking systems for electricity powered vehicles, and Development of a modal shift (cf. JICA Climate-FIT) Introduction of regenerative braking systems has been registered as a CDM project. 15

16 <Case 3> Bangkok Master Plan on Climate Change (Technical Cooperation) Project Period: Bangkok Metropolitan Administration (BMA) Steering Committee chaired by Deputy- Governor of BMA Participants: Representatives from the participating departments of BMA, TGO, OTP, PCD, NESDB, ONEP, DEDE, etc. Inter- Secretariat(Department of Organizational Environment, BMA) Coordination 5 Working Groups Environmentally Sustainable Transport Energy Efficiency and Alternative Energy Efficient Solid Waste Management and Wastewater Treatment Green Urban Planning Adaptation Initiatives Yokohama-City ( Future City Initiative ) Experiences of Low- Carbon Policy-Planning and Implementation in JAPAN Japanese Expert Team Local Consultants <Background> Total GHG emission of Thailand is ranked 23th in the world(iea, 2009) GHG emission of Bangkok accounts for 24% of total emission in Thailand, and per capita emission is as high as that of NY High potential of GHG reduction, especially in Energy and Transport Sector Project Purpose:The Bangkok Master Plan on Climate Change is prepared with strengthened capacity for implementation. Output 1: Preparation of Bangkok Master Plan on Climate Change Assessment of the Bangkok Action Plan on Global Warming Mitigation Improvement of Data Collection, Methodologies for Estimation and Monitoring of GHG Emission Development of Sectoral Strategies Public consultation, Workshops and Seminars Dissemination of the Master Plan Output 2:Strengthened Capacity of BMA officials Training Programs for BMA officials Seminars/Workshops for Related Stakeholders Development of Educational Materials 16

17 Overall Goal, Project Purpose and Objectively Verifiable Indicators Narrative Summary <Project Purpose> The Bangkok Master Plan on Climate Change (including its action plan(s) is fully prepared with strengthened capacity for implementation. <Overall Goal> 1. Bangkok Master Plan on Climate Change is well implemented by BMA in a sustainable manner. 2. The responsible departments of the BMA are able to manage, monitor and evaluate the progress of the Master Plan. Objectively Verifiable Indicators 1 The Bangkok Master Plan on Climate Change is officially approved by BMA by the end of the project duration. 2 The resources made available for implementation of the Master Plan. 3 Intra/inter-organizational cooperation and implementation structure is established to implement the Master Plan. 1 Sufficient budget and staff are allocated by each responsible department in BMA to implement the Master Plan. 2 Positive effects on adaptation and mitigation are recognized by mid-term review of the Master Plan. 17

18 (3) Argument Climate Change Mitigation could be Mainstreamed in Development Projects/Programs, with a View to Pursuing Various Mitigation/Development Co-benefits. Effectiveness of Mitigation Projects would Suitably be Verified not only by the Amount of GHG Emission Reduction, but also by Various Indicators of Capacity Development, with a View to Enabling Sustainable Mitigation Policies/Actions. 18

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