Training workshop on Implementing Nationally Determined Contributions (NDC) Commitments in Agriculture

Module 1:
UNFCCC initiatives on agriculture and the
Nationally Determined Contributions (NDCs)
Organized by
With support from

Objectives
Be familiar with the basic background of the UNFCCC
Understand the UNFCCC relation to creation of national climate change
policies
Gain insight into how other policies/strategies relate to mainstreaming
climate change concerns into national planning and budgeting
Understand the NDC formulation process
Be familiar with the NDC reporting requirements

1988
Establishment of IPCC
1992
Adoption of UNFCCC
at the UNCED in Rio
1995
First Conference
of Parties (COP1)
1997
Adoption of
Kyoto Protocol
2009
No agreement reached
for after Kyoto
2015
Adoption of
Paris Agreement
2018 (upcoming)
First review of Nationally
Determined Contributions
UNFCCC background

Intergovernmental Panel on Climate Change (IPCC)
• Established in 1988 to provide a scientific
view on climate change and its potential
impacts
• Latest report is AR5 (Fifth Assessment Report)
• AR6 under preparation for release in 2021-
2022
• In October 2018, Special Report on Global
Warming of to be released 1.5°C

UN Framework Convention on Climate Change (UNFCCC)
• Established in 1992 at the United Nations Conference on Environment and
Development
• Outlines how to negotiate international treaties to “prevent dangerous
anthropogenic interference with the climate system”

Paris Agreement, 2015
• Signed by 179 countries out of 197 parties in UNFCCC
• Limit temperature increase to 1.5°C
• Developed countries provide $100 billion each year
• Countries submit Nationally Determined Contributions every five years

• Advises COP on science and technology
• Meets twice per year since 1995
• In 2011 requested to consider:
“issues relating to agriculture”
Subsidiary Body for Scientific and Technological Advice (SBSTA)

• Supports the work of the COP
• Supporting operationalization of the Paris Agreement by developing NDC
procedures
• Responsibility for maintaining political momentum and ensuring transparency
• Works with SBSTA on cross-cutting issues
Subsidiary Body on Implementation (SBI)

• GHG inventory requirements:
• by Annex I countries (most
developed countries) in annual GHG
inventory submissions
• By non-Annex I countries
(developing countries) in national
communications
National Greenhouse Gas Inventories

But where is agriculture in all of this?
Photo credit: World Bank

History of SBSTA and Agriculture
2011 2012 2013 2014 2015 2016 2017
Requested
to consider
agriculture
53 submissions
with views on
agriculture
Workshop on
agricultural
adaptation
Call for
submissions
and workshops
Workshops on
warning systems
and risk
Workshops on
adaptation and
productivity
Decision on
agriculture

• Koronivia Joint Work on Agriculture (KJWA)
• Countries called to submit views on:
• Implementation of insights from past workshops
• Methods to assess adaptation, co-benefits and resilience
• Improved soil carbon and fertility
• Improved nutrient management
• Improved livestock systems
• Socioeconomic and food security dimensions
• KJWA should report to the COP in 2020
UNFCCC Decision on Agriculture

• Established in 2010 to facilitate
developing countries to:
• identify adaptation needs
• develop and implement
programmes
• Through assistance or funds from, e.g.:
• Global Environment Facility
• Green Climate Fund
• NAP Global Support Programme
• Agriculture central in many NAPs
National Adaptation Plans (NAPs)

• Agreed at COP 18 in Doha
• NAMA registry online for plans and
available support
• Agricultural NAMAs can be a pathway
for green growth
• NAMAs can be channels for climate
financing
Nationally Appropriate Mitigation
Actions (NAMAs)
ILRI/PaulKaraimu

Nationally Determined Contributions (NDCs)
• The Paris Agreement requires all Parties to put forward their best efforts through
“nationally determined contributions” (NDCs)
• These efforts will need to be strengthened in the years ahead
• Includes requirements that all Parties report regularly on their emissions and on
their implementation efforts

• NDCs will be reviewed every 5 years during the Global Stocktake
NDCs, continued

• NDCs allow for:
• Scrutiny of actions
• Global evaluation of targets
• Part of the NDCs can be conditional on:
• Provision of financial support
• International flexibility mechanisms
• Agriculture prominent in NDCs
NDCs, continued

Key characteristics of NDCs
Ambitious
Transparent
Equitable
Reduction

NDCs submitted From www.climatewatchdata.org

NDCs submitted: Adaptation priorities in Agriculture

NDCs submitted: Mitigation targets in Agriculture

• NDCs underline countries’ priorities on agricultural adaptation and mitigation
• Vast majority of Parties recognize the significant role of agriculture in
supporting a secure sustainable development pathway
• Annex 1 Parties focus primarily on mitigation, and non-Annex 1 on adaptation
• Social equality, human rights and food security are not receiving high levels of
attention in climate change policy either at national or global levels
NDCs submitted: Highlights with regards to agriculture

Countries can decide the methods used for setting NDC targets. Some differences
between Annex I and non-Annex I countries:
Annex I
Historical data
as a baseline
Often detailed
by type of GHGs
Non- Annex I
Lack of
historical data
Projected BAU
emissions
Targets and ambitions

Targets and ambitions: Quantification of mitigation targets

Prevalence is on BAU and policy & action targets.
Targets and ambitions:
Types of targets

IV. Targets and ambitions: Types of targets

Type of target Business as usual
Costs of mitigation/
investment needs
No (partial) costs mentioned
Mitigation focus areas:
agriculture Considered Considered: climate-
smart agriculture
Considered:
sustainable
agriculture
management
Mitigation focus areas: land
use and forestry
Focus area:
afforestation,
sustainable
management of forests
Considered:
afforestation
Considered
Reducing non-CO2 gases Considered
(CH4, N2O, HFCs, PFCs, SF6)
Considered
(CH4, N2O)
Considered
(CH4, N2O, HFCs, PFCs, SF6)
Colombia Kenya Vietnam
Target
Reduction of 20% of
GHG emissions relative
to projected BAU
scenario by 2030
Reduction of 30% GHG
emissions by 2030
relative to the BAU
scenario
Reduction of 8% of
GHG emissions by
2030 relative to BAU
scenario
Targets and ambitions: Some examples

Mitigation targets every 5 years
increasing the ambition level
Low emissions development
strategies
Mandatory
Voluntary
All parties
Mitigation
• Financial technological and
capacity strengthening support
(quantitative and qualitative)
• Projected levels of public funding
• Received support
• Progress on training plans,
policies, actions and measures to
implement the agreement.
Mandatory
Voluntary
Support
Developed countries
Other countries
Voluntary Developing countries
Reporting on adaptation is optional
The enhanced transparency framework

Paris agreement provides a global framework to reduce climate change impacts,
however climate action happens at the national, subnational and local levels.
Agriculture is key for both adaptation and mitigation of climate change,
especially in developing countries. Funding is needed to achieve targets
proposed.
Research and technical support is crucial to make a robust and applicable
transparency framework in which capacity building is essential.
Key messages

The evolving role of agriculture in
climate change negotiations:
Progress and players
Webinar: Synthesis report on the
aggregate effect of INDCs
NDC Explorer
Click on the image to access the document or video
Further resources

Module 2:
Climate smart agriculture and
priority setting for investments
Organized by
With support from

Introduce the premise of climate-smart agriculture
Describe different CSA technology options
Provide case-study examples of successful CSA technology options in
Africa
Discuss technical tools for ex-ante analysis of CSA options in agriculture
Learning Objectives

CSA definition
• Most common is from FAO:
“agriculture that sustainably increases productivity, enhances
resilience (adaptation), reduces/removes GHGs (mitigation) where
possible, and enhances achievement of national food security and
development goals”

The origin of CSA (1/2)
• Until late 2000s: Mitigation dominant approach (mainly quantitative
approach), but with limited results
• … alongside increasing concerns on adaptation from developing
countries
• Over the years, the UNFCCC negotiation process has led to a major
distinction between mitigation and adaptation: two work streams
with specific concepts, approaches and methodologies

The origin of CSA (2/2)
• Important efforts from the scientific community to highlight synergies between
mitigation and adaptation (“triple win”), and bring together work streams and
scales
• Specificity of the agricultural sectors:
• Key interactions, synergies and co-benefits between mitigation, adaptation
and food security (UNFCCC work streams and mechanisms have not always
enabled such considerations)
• “Healing power” of the agriculture sectors: capacity to store carbon (soil
carbon storage = soil fertility)
• 2010: FAO develops the concept of CSA based on its 3 pillars (productivity /
adaptation / mitigation) at the Hague Conference

Why CSA? (1/2)
• CSA addresses the
relationship
between climate
change and agriculture
• CSA addresses food
security, misdistribution
and malnutrition
• Relationship between
agriculture and
climate change is a
two-way street

• CSA addresses the relationship between agriculture and poverty
• 75% of the world’s poor live in rural areas
• Agriculture is their most important income source
→ Agriculture is uniquely placed to propel people out of poverty
Why CSA? (2/2)

Source: Papusoi and Faraby 2013
What is CSA?
Key characteristics:
• Addresses climate change
• Integrates multiple goals
• Manages trade-offs

• Maintains ecosystem services: CSA adopts a landscape approach to ensure
coordinated approaches to land use, planning and management
• Multiple entry points at different levels
• Not ‘just’ a set of practices and technologies
• Also involves information technologies, insurance schemes, value chains, and
institution and political enabling environments
Additional characteristics of CSA (1/3)

• CSA is context specific
Source: Rosenstock and Lamanna 2015
Additional characteristics of CSA (2/3)

• CSA engages women and
marginalized groups
Source: Mwongera et al. 2015
Prioritization of agricultural practices in Anaka,
Northern Uganda by gender and agro-ecological zone
Additional characteristics of
CSA (3/3)

Actions to
achieve CSA
Source: FAO (2017),
Infographic on Climate-
Smart Agriculture. Food
and Agriculture
Organization of the United
Nations, Rome, Italy.

1. Weather-smart practices
2. Water-smart practices
3. Seed/breed-smart practices
4. Carbon/nutrient-smart practices
5. Institutional/market-smart activities
Types of CSA options

Climate information services:
• Help to build resilience
by enabling farmers to
better manage negative
impacts of weather-
related risks in poor
seasons while taking
greater advantage of
average and better than
average seasons
1. Weather smart practices

• Index-based insurance
• Uses a weather index, such as rainfall, to determine payouts for clearly
defined hazards
• Contribution to CSA:
• Productivity: allows farmers to take additional risks and invest in improved
practices
• Adaptation through short-term climate risk management
• Adaptation through longer-term risk management
• Mitigation
1. Weather smart practices

• Different scales: farm level, irrigation systems or catchment level, and national or
river basin level
• Under rainfed agriculture:
• Water harvesting
• Soil management practices for capture and retention
• Soil fertility and crop management innovations (Water use efficiency)
• Under irrigation:
• From the source
• Through conveyance and application systems
• Through better scheduling and availability of water in the root zone
2. Water smart practices

• CSA contribution:
• Productivity: improved growth (in absence of other limitations)
• Adaptation through short-term risk management: reduction in the risk of crop
water stress and yield loss
• Adaptation through longer-term risk management: increase in water
availability and greater water use efficiency
• Mitigation: opportunities in rice alternate wetting and drying; possible
reduced energy consumption for pumping
• Decrease women’s and girls’ workload in fetching water and manual irrigation
of fields
2. Water smart practices

• Forestry and agroforestry
• Productivity: improved production of
ecosystem services (food, fibre, fuel, soil
quality)
• Adaptation: healthy and diverse
ecosystems are more resilient to natural
hazards
• Mitigation: increase in tree cover
increases carbon sequestration and
biomass above and below ground
3. Nutrient/carbon-smart practices

Soil management practices
• Productivity: improvements in soil
fertility and soil water availability and
reduction of losses through erosion
will improve productivity
• Adaptation: specific interventions
can help reduce risk of run-off during
intense rainfall events
• Mitigation: improvements in carbon
storage, reduction in emissions from
excess fertilizer applications
Picture from: http://www.geologyin.com/2016/09/relationship-between-soil-color-and.html
3. Nutrient/carbon-smart practices

• Involves strategies to account for the different
socio-economic, climatic and soil conditions of an
area
• Productivity: higher yielding varieties, better
crop nutrient management, faster growing
livestock
• Short-term adaptation: breeding for drought
tolerance, shorter duration varieties;
breeding for resistance to pests and diseases
• Longer-term adaptation: heat and salinity
tolerance traits
• Mitigation: reductions in emissions from soil
and water management and more productive
livestock breeds
4. Seed/breed-smart practices

• Policy engagement: appropriate policies and an enabling environment
• Institutional arrangements: at all levels and between scales
5. Institutional/market-smart activities
• Value chains: bring together relevant
stakeholders from different parts of
the chain to make decisions in a
coordinated way
→ All activities affect productivity,
adaptation and mitigation

Scaling up climate services for agriculture in Senegal
• Seasonal and 10 day forecasts tailored for farmers
• 40 radio stations trained to understand and communicate climate information
• Interactive radio programming
• 2 million farmers in Senegal now receiving 10 day forecasts
• Farmers changing management practices in response to the information
Case studies of successful CSA

Drought-tolerant maize for Africa (DTMA)
• DTMA project released 160 drought tolerant maize varieties between 2007 and
2013 in 13 countries

• What are your examples?
• Please share successful CSA stories from your own countries

Part 2:
Priority setting for CSA options

Priority setting for CSA options
The importance of the biophysical context
Pittelkow et al. 2014
Effect on Maize Yield (%)
Conservation Agriculture: no till, global analysis

agement practices depends on location and thus it is spu-
rious to compare results of studies between locations in
−1.0
−0.5
0.0
0.5
1.0
−1.0 −0.5 0.0 0.5 1.0
Productivity
SOC
Productivity (Effect size)
Resilience(Effectsize)
11%
15% 56%
SynergiesTradeoffs
Tradeoffs
19% Rosenstock et al. 2016b
The importance of considering multiple objectives

agement practices depends on location and thus it is spu-
rious to compare results of studies between locations in
−1.0
−0.5
0.0
0.5
1.0
−1.0 −0.5 0.0 0.5 1.0
Productivity
SOC
Productivity (Effect size)
Resilience(Effectsize)
11%
15% 56%
SynergiesTradeoffs
Tradeoffs
19%
+Yield
-women’s
labor
+Yield
+soil C-Net returns
+soil C
The importance of considering multiple objectives, specifically
Rosenstock et al. 2016b

w er Mean
Rainfall
resdiw
h
if
of
iv
icafrt
ASE
to the conventional practice, (B)
of decrease in yields) vs. rew ard
der CSA practices identifie by
investment over time.
Impact on adoption show s the proportion of studies w here farm and household
characteristics have a positive (to the right) or negative (to the left)s impact on
adoption. Significance show s the number of studies w here that factor had a
signific
a
nt (fill
e
d bar ) or insi gni f ican
t
( open bar) impac t onado ption.
FARM & HOUSEHOLD
CHARACTERISTIC
SIGNIFICANCE
0 20
IMPACT ON
ADOPTION
-100 0 100
Wealth
& Assets
Crop insurance
Access to electricity
Private w ater supply
Access to Credit
Farm
management
Importance of livestock
Proportion ofha irrigated
Farm size
Distance farm-HH
Family labor
Hired labor
Household
demographics
Education
Age HHhead
HHsize
Female household head
Farmer is a community leader
Income
Importance ofcrop revenues in income
Crop price index
Off-farm income
HIGH RISK/HIGH REWARD
Returns
to land
Returns
to land
Returns
to land
(iv & w h) (irr) (af & of)
567% 967% 1234%
Total
studies
Signif.
studies
RosenstockandLamannaCSAX-ray
The importance of the social context
Adoption of
conservation
agriculture (no
till) in southern
Africa –
multiple
studies

Situation analysis
• Indicators & targets to
achieve
• Agricultural snapshot
• Future climate impacts
• Ongoing & promising CSA
practices
• Institutions & policy entry
points
• Finance mechanism
Tools: Climate Smart Profiles

CSA Country Profiles in West Africa
• Available in West
Africa for Senegal
• Under preparation for
Niger, Ghana and
Mali

• Quantitative-qualitative (National/sub-national level)
- Inclusive participatory process for identifying investment portfolios of best-bet
CSA options
- Evidence-based
- Flexible, can move forward under data/resource constraints
Tool: The CSA Prioritization Framework (CSA-PF)

• Already used in several WA countries
• Future scenarios help address uncertainty
about the future and test possible
solutions against impact projections
• Multi-stakeholder workshops
• Future-orientated planning
• Backward planning from desired
outcomes
• Output: “no-regrets” actions that may
work under any scenario with appropriate
adjustment, as well as scenario-specific
options
Tool: Stakeholder-led scenarios approach

• Simple adaptation measures such
as changes in crop sowing dates
and changes in varieties can
increase crop yields by an
average of 7–15% when
compared with no adaptation
• The benefits of adaptation vary
with crop and with temperature
and rainfall changes
Tool: Crop, livestock and climate models
Challinor et al., 2014

Costs and benefits of policies that contribute to climate adaptation, such as:
• Research and extension (e.g., climate forecasts)
• Input quality and availability (e.g., improved seeds and fertilizers)
• Water availability (e.g., irrigation and water-saving technologies)
• Market access and infrastructure (e.g., roads, transport)
• Improving value chains (e.g., on-farm storage, value addition)
Economic evaluation tools: economics of different policies

Cost of climate change (PV million USD)
Country Base case
Improved
seeds
Difference
Malawi 981 516 465 (47%)
Tanzania 8,567 5,622 2,945 (34%)
Bangladesh 221 125 95 (43%)
India 13,595 6,626 6,969 (51%)
Economics of CSA policies
Improved seeds result in a 30% reduction in revenue loss under the most severe
climate scenario (5% discount rate)
NB Results for Bangladesh and India are not nationally representative
Cacho et al. (2016)
Compare household incomes now and in the future (present value of the mean
cost of climate change, 2020-2050)

Key messages
Climate-smart agriculture can help countries meet several of their development goals
and NDC commitments
Many CSA practices are context-specific and need to be evaluated for each agro-
ecosystem where they will be applied.
There are many models and prioritization tools that can help evaluate CSA options to
know which will provide the best return on investment.

Module 3:
Climate Finance for Agriculture
Organized by
With support from

Broadly outline the issues around climate finance in general
Give an overview of potential sources and models of climate finance for
agriculture
Objectives

Smallholder financing: Needs vs supply
Credit provided by informal and formal financial institutions, as well as value
chain actors, currently meets an estimated
USD 50 billion
of the >USD 200 billion
needed for smallholder finance in sub-Saharan Africa, Latin America, and South
and Southeast Asia.

Source: THE INITIATIVE FOR SMALLHOLDER FINANCE:
INFLECTION POINT: Unlocking growth in the era of
farmer finance (2016)
Gaps in smallholder financing

Recent studies indicate that the global costs of adaptation per annum could
range from:
✓US$140 billion to US$300 billion by 2030; and
✓US$280 billion to US$500 billion by 2050
The financing gap for adaptation in agriculture in Africa is estimated at:
$20-30 Billion per
year by 2030*
Source: *Range: UNEP 2014 (+4C – upper bound & +2C scenarios), World Bank 2010 (wet and dry scenarios lower bound); World Bank 2016; UNEP 2016: The Adaptation Gap
Finance Report; UNEP, World Bank 2010
Why is climate finance relevant for agriculture?

Private investors could supply as much as $200-$300 billion per year to preserve
the world’s ecosystems
The food and agriculture sectors represent enormous business opportunities for
the implementation of the SDGs:
✓Estimates indicate that a yearly investment of US$ 320 billion by private
companies in sustainable business models in food and agriculture could unlock
over US$2.3 trillion annually by 2030
✓These could generate almost 80 million jobs by 2030, with over 90% in
developing countries*
Source: *UNEP 2018: Land Use Finance; Business and Sustainable Development Commission 2016: Valuing the SDG Prize in Food & Agriculture; Credit Suisse 2014
Why is climate finance relevant for agriculture?

The average annual investment in 2015/2016 was USD 410 Billion, 12% higher than in 2013/2014*
Landscape of climate finance
Source: CPI 2017: Global Landscape of Climate Finance 2017
140
270
Total Public and Private
Climate Finance (US$ bn)
Public
Private
79%
21%
Sources of Climate Finance
Domestic
International 1
22
382
5
Uses of Climate Finance (US$ bn)
REDD
Adaptation
Mitigation
Dual benef

The estimated finance for
land use mitigation and
adaptation in 2012/2013
was US$ 5,825 Million
2,322
3,126
359 19
Sources and
Intermediaries (US$ bn)
Gov. Budget
DFIs
Climate Funds
Comm. FIs
Source: Climate Focus, EU REDD Facility and CPI: Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation
Landscape of climate
finance for land use

2,922
964
902
16
1,022
Instruments (US$ bn)
Grant/Bud.Exp.
Low-Cost Debt
Mark. Rate Debt
Equity
Unknown

1,863
3,020
943
Uses (US$ bn)
Adaptation
Mitigation
Mult.
Object.

1,047
3,579
1,200
Purposes (US$ bn)
Agriculture
Unknown/Multiple
Forests

Public Sources:
• Domestic government budgets
• State owned enterprises and investment vehicles
• National development banks
• Bilateral donors
• Development finance institutions
• International financial institutions
• Climate funds (national and multilateral)
• UN organizations
Climate finance architecture (agriculture, forests and fisheries)

Private Sources:
• Smallholder farmers and agribusinesses
• Corporations
• Financial institutions (national and international)
• Philanthropic actors
• Impact investors
• Private equity
• Venture capital
• High Net Worth Individuals (HNWI)
• Institutional investors
Climate finance architecture (agriculture, forests and fisheries)

Capital Instruments:
• Grants
• Budget expenditure/subsidies
• Loans (concessional and market rate terms)
• Green bonds
• Equity
• Balance sheet
Risk Instruments:
• Credit guarantees
• Insurance
Key climate finance instruments

Enabling Environment
• Develop conducive domestic policy, regulatory and support frameworks
▪ Mainstream climate considerations into national policies, budgeting
and planning
▪ Fiscal reform (taxes, subsidies, incentives, carbon pricing, etc.)
▪ Policy reform for private sector engagement (technical, institutional and
financial barriers)
▪ Develop climate finance strategy at national, sub-national or sectoral
level
Scope of climate finance (1/5)

• Support implementation of NDCs, NAMAs, NAPs, NAIPs, CSA Investment
Plans,
• Leverage Capital
• Blended Finance (de-risk investments)
• Innovative Finance
• Develop innovative financial instruments to meet the needs of investors,
countries and farmers

• Climate Financing Mechanisms
• Understand climate finance sources to access them more effectively
• Develop robust pipeline of climate smart agriculture projects
• Risk management mechanisms
• Guarantees
• Insurance
• Big Data
• Evidence-based Science
• Climate Smart Advisory Services

• Delivery (reducing transaction costs)
• Increase focus on adaptation and resilience of smallholder farmers and SMEs
• Link climate finance sources to farmers, specifically through domestic financial
institutions and non-bank financial institutions (NBFIs)
• Use of Fintech and disruptive technologies (role of digital finance, etc.)
• Branchless banking

• Metrics
• Agree on metrics to accurately estimate the amount of climate finance needed
• Agree on climate smart metrics to measure performance of investments
• Technical assistance to increase investments in agriculture
• Build readiness/capacity of recipient countries to understand and attract
climate finance
• Develop capacity of financial institutions (mainstreaming climate change)
• Develop capacity of smallholder farmers and SMEs (borrowers)

Tracking financial flows
• Important to understand how and how much is being spent on national climate
change responses
• Identify climate-related spending across all relevant finance flows
• Needs an agreed definition of climate finance
• Track and report all climate-related spending
• Develop a central tracking system
• Process and analyze data on a regular basis
• Expand and improve the MRV for climate finance
• Do not need to re-invent the wheel. Look at examples from other countries or
frameworks from international organizations

Tracking financial flows
• Colombia has built climate finance tracking into its MRV system with an online
portal
• Over 15,000 climate change actions registered
• Total of approx. $6 billion from public sources (domestic and international) from 2011-2015
• Online platform shows aggregated data and project-level information, with filters to select
different variables
• Lessons for other countries:
• Create a definition of climate finance that fits country context but is
internationally relevant
• Engage with national and international institutions that will provide
information for the system and formalize their roles
• Leave room for improving the quality of the data
Source: WRI 2017

http://mrv.dnp.gov.co/Paginas/inicio.aspx

Key messages
Financial needs to meet adaptation goals in Africa are very high.
There is financing available to meet the adaptation and mitigation targets;
not all of it (or even the majority) is coming from such public institutions as
the Green Climate Fund.
Governments should think broadly about the sources of climate
finance and how best to access and make use of it.
Financial flows need to be tracked. Seek out lessons from other
countries.

Available resources
• Making Climate Finance Work in Agriculture, Discussion Paper: Link
• CSA Guide: Link
Thank you for your attention

Module 4:
Private sector engagement for NDC
implementation
Organized by
With support from

Discuss advantages of engaging the private sector in the development and
implementation of NDCs
Describe how the access of micro, small, medium and large enterprises to
climate finance can be enhanced
Objectives

• Public sector sets the NDC, private sector ultimately implements it
• Engaging the private sector in the NDC process can spur economic growth
by:
o Aligning long-term public and
private strategies
o Promoting technology transfer
o Attracting domestic and
international investments
Illustration of public consultation on climate change in Kenya
(Nansen Initiative, 2014)
Importance of Private Sector Engagement

• For every USD 1 of official development assistance (ODA) spent in Africa in
2016, there was:
USD 2 foreign direct investment
USD 10 private sector investment
USD 11 government spending
Private Sector Investment for Effective NDC Implementation

Private sector actors range from smallholder farmers to large multinational
corporations
Micro, Small & Medium-Sized Enterprises Large Enterprises
Up to 90% of businesses Can be only 10%, but steer economy
Dominate in agricultural production Dominate in appliances and energy production
High potential gain with climate-smart
measures, more difficult to be reached
Lower potential gain with climate-smart
measures, easier to be reached
Can be engaged through local government or
sector representatives
Can be engaged directly or through national
sector representatives
Limited access to affordable credit, insurance
and other financial services
Higher financial literacy and credit capacity
Tailored domestic programs required to access
funds
Capable to access international finance
institutions
“Private sector” is not a homogenous group

Good practice for engaging with the private sector
• Engage the private sector as a means, not an end
• Ensure institutions are fit for purpose
• Invest in the business-enabling environment
• Develop a flexible portfolio of private sector
engagement mechanisms
• Work with a wide range of stakeholders
• See partnership as a relationship, not a contract
• Take risks if you want others to do so

• The NDC Partnership is a coalition of countries and institutions accelerating
climate and development action
• Mali received assistance with the NDC consultation process and investment
plan
• In 2017, the Green Climate Fund granted
Mali USD 22.8 million for early warning
systems to improve food security
• Several projects with funding in the pipeline
(NDCP 2017)
For a report on the NDC Partnership in Mali see:
https://youtu.be/-zJSy1kXSkI (4.33 minutes, in French with
English subtitles)
Case Study: Mali designs NDC Investment Plan with the NDC
Partnership

• Through F3 Life, small-scale farmers become eligible for
loans if they implement climate-smart practices
• In Kenya, a micro-creditor with 32,000 clients adopted
the system (Juhudi Kilimo)
• Climate-smart practices decrease the risk of crop
failure and thereby increase the chance that farmers
can pay back the loan
Case Study: Impact investors use climate-smart credit in Kenya

An example of a Climate Smart Credit Product (http://www.f3-life.com/climate-smart-credit.html)
Case Study: Impact Investors use Climate-Smart Credit in Kenya

• An ongoing coordination process should drive progress and decision-
making, and ensure accountability
• To formulate optimal policies, you must publicly consult the private
sector (incl. representatives of smallholder farmers) on common interests
and strategies
• Private entities might accept policies if they understand them, but they
will only endorse them when the policies benefit them
Coordinating with the private sector

Case Study: Improving local processing of cashew nut in
West Africa
• Efforts to create public-private partnerships (PPPs) had
mixed success
• Introduction of temporary export bans on raw nuts in
Ghana to help boost availability of raw cashews for local
processing did not succeed
• Challenges dues to complexities and high transactions
costs of multi-stakeholder involvement
Sources: www.value-chains.org/dyn/bds/docs/824/DCED_ACiGhana_July2012.pdf
https://read.oecd-ilibrary.org/development/private-sector-engagement-for-sustainable-development_9789264266889-en#page50

Policy options can be ‘hard’ or ‘soft’
‘Soft’ policy instruments:
• Voluntary agreements can be negotiated
by public and private sector actors
• Subsidies in the form of direct payments,
tax reductions or price supports
• Research, development, and
deployment policies can support and
spur technological advancement
• Public procurement can be used to
encourage and mainstream
environmental policies and services
• Providing information through
workshops or campaigns can increase
access to technology and funds
Adapted from IPCC (2007)
‘Hard’ policy instruments:
• Regulations and standards that specify
abatement technologies or energy efficiency
requirements, with penalties for
noncompliance
• Taxes can be charged on each unit of activity
by a polluting source, such as a fuel tax,
carbon tax or import tax
• Requirements for disclosure of information,
e.g. labelling programs, emissions reporting
programs or certification systems
• Emissions trading programs establish an
emission limit and allow for the trading of
permits

• Result of an extensive consultation process
with government, industry, civil society,
academia and private sector
• To be voted upon in parliament later in 2018
Aims to:
• be revenue-neutral for government
• allow for smooth transition
• introduce clean technologies cost-effectively
South African Parliament (Daily Maverick, 2013)
‘Hard’ Case Study: South Africa’s Carbon Tax Bill

• Agreement signed between Ministry of Agriculture and
Livestock (MAG) and Ministry of Environment and Energy
(MINAE) to reduce emissions
• Define emission contribution of agriculture and livestock sector
(AFOLU)
• A step further than an emission goal: what conditions does the
sector need to transform towards a resilient low carbon sector?
• Particular interest in involving private sector: High emission
agriculture corporations (coffee, livestock, sugarcane, banana,
rice)
• Future scenarios approach was used to address these needs
‘Soft’ Case Study: Costa Rica’s commitment to comply with NDC

1. Secure direct access of domestic institutions to climate funds by making
sure they fulfil the requirements
2. Build capacity of domestic institutions. International financial
institutions and climate funds depend on these to assess local market
conditions, lend local currencies and finance small projects.
3. Design and implement a climate finance measurement, reporting and
verification (MRV) system to track and report the impact of climate-
related spending.
4. Work to de-risk agricultural lending and build capacities of local lenders
to understand agricultural credit needs.
Helping the private sector access climate finance

Set up to access and combine domestic and
international, public and private sources of
finance.
Four key initiatives selected to promote growth,
abate CO2 and attract climate finance:
1. Advanced rural cooking technologies
2. Livestock value chain
3. REDD+
4. Hydropower
Case Study: Ethiopia’s Climate Resilient Green Economy (CRGE)
Facility
CRGE plan, p. 21, Fed. Dem. Rep. of Ethiopia, 2011

1. Engaging the private sector in the NDC process can stimulate
implementation and spur economic growth
2. Integrate climate action with long-term government policies and priorities
3. Implement policies that guide and drive economic activity (instead of
burdening the economy)
4. Secure direct access to climate funds for national institutions
5. Build capacity of national institutions to tender the needs of micro, small
and medium-sized enterprises
5 key messages

Questions or remarks?

Module 5:
Consideration of social aspects for
inclusive development
Organized by
With support from

Explore the social equity considerations when developing NDC implementation
plans for the agricultural sector
Special attention to examining the political economy, analyzing gender
concerns, and involving the youth in implementation
Objectives

Thinking beyond technical concerns
• NDCs are intended to be pursued in context of other development goals
• National priorities
• Sustainable Development Goals (SDGs)
• Government 5 year plans
• How will pursuit of NDCs affect social and economic development goals?
• Synergies
• Tradeoffs
• Predictable knock-on effects

Thinking beyond technical concerns: Cross-scale political economy
Equity implications in pursuit of NDCs
• When climate finance flows into a country, who will benefit…
• Within sectors?
• Within value chains?
• Within communities?
• Within households?
• How will the promotion and adoption of CSA practices reshape relationships…
• Within sectors?
• Within value chains?
• Within communities?
• Within households?

Thinking beyond technical concerns
• Issues of power and control
• Who makes decisions?
• On what information and authority are they based?
• How might CSA interventions shift power?
• Usefulness and challenges of participatory processes
• Who frames and facilitates the process?
• Who gets a voice?
• Whose voice is not being heard?

Bottom-up approaches
• What are the local adaptation practices and dynamics in which farmers and
herders are already engaging?
• Consider introducing adaptation options that:
• Are well-evaluated
• Have been prioritized by local farmers
• Address prominent climate risks in the location
• Evidence on farmer prioritization can help support informed decisions that are in
line with government policies.
• Identification and prioritization of CSA technologies helps in designing an
investment portfolio across various agro-ecological zones.

Example tool: CSA Rapid Appraisal
Mixed method approach, draws on participatory
bottom-up, qualitative, and quantitative tools to
assess the heterogeneity of local contexts, and
prioritize context-specific CSA options.
Employs gender-disaggregated methods
Assesses within and between district variations in
farming systems, management practices, challenges
and climate vulnerability to inform CSA targeting.
Method: key-informant and farmers interviews,
participatory workshops, pairwise ranking matrix,
information on farmers constraints
• Completed in 2 months
• Drove a US$15m investment in Uganda
Resource: The CSA-RA manual
(Mwongera et al 2017)

Why be concerned about gender in NDCs?
• Men and women are affected by and
respond to climatic changes in
different ways
• Technological change (e.g. CSA) can
also distribute effects unevenly across
social groups
• Information should be made available
and accessible to men and women,
boys and girls, and any potential
increase in workload should be
minimized.
Photo:M.Acosta

Criteria for evaluating whether a gender-responsive approach is used in
CSA-sensitive practices
1. The development and application of the practice have been informed by
gender analysis
2. All work related to the practice has involved the participation and
engagement of men and women, in particular those who implement the
practice
3. Efforts are made to reduce the constraints to uptake of the practice
4. The practice results in immediate benefits for men and women
5. The practice results in long-term benefits for men and women
Gender concerns

Potential gender considerations of various CSA-sensitive practices
Adapted from World Bank, FAO and IFAD, 2015; modified by Nelson & Huyer 2016
Requirements for adoption of practice Relative
amount of
time until
benefits
are
realized
Potential for
women to
benefit from
increased
productivity
Female and
youth
labour
availability
Female
access to
and control
of land
Female
access to
water for
agriculture
Female
access to
cash and
ability to
spend it
Gender
impact:
women’s
control of
income
from
practice
Conservation
agriculture
High Low-medium High Low Low High Low
Improved
home gardens
High High High High High Low High

Youth in agriculture
• Seems to be a buzzword, or the latest trending topic
• BUT, the youth bulge will be around for a while….
Photo: Tamara Kaunda

Youth bulge, history and forecast, per Africa’s regions versus East Asia (Source: IOM and AU, 2018)

Youth in agriculture
• Strategies used to engage with the
private sector can also help bring in
young people to agribusiness
• Access to credit a constraint to be
overcome
• Think beyond agriculture to the whole
food system (ag research, equipment
manufacturing and sales, ag input supply,
processing and value addition, nutrition
education, food vendors, a whole range
of agri-entrepreneur opportunities)

Key messages
Different groups are affected by climate change in different ways. They
can also respond and help meet NDC targets through different means.
Careful examination of who benefits from climate finance flows is
needed to ensure equitable development.
Gender analyses should be carried out for all CSA practices to help
increase adoption rates.
Don’t forget to take the youth into consideration when making NDC
implementation plans and providing access to climate finance.

Gender and political economy resources
• Gender in climate-smart agriculture: module 18 for gender in agriculture
sourcebook (English).
• Climate Change & Food Security Vulnerability Assessment Toolkit:
https://cgspace.cgiar.org/rest/bitstreams/55087/retrieve
• A Gender-responsive Approach to Climate-Smart Agriculture: Evidence and
guidance for practitioners
• “How-To” Note: Political economy analysis

Module 6:
Measurement, reporting and verification
(MRV) for mitigation and adaptation
Organized by
With support from

• Explore how NDCs fit into existing climate change policies and actions (i.e.,
NAMAs)
• Review current UNFCCC requirements and guidance for MRV of GHG emissions,
mitigation actions and adaptation efforts
• Discuss the Enhanced Transparency Framework to replace the current MRV
framework and establish requirements for MRV of NDCs
• Examine case studies and examples
Objectives

• Many NDCs build upon previous NAMA experiences
• NAMAs can support countries in meeting their NDC commitments by:
• More concrete measures to achieve targets
• Serving as the implementation vehicle for NDCs
• NAMAs require MRV systems
• NAMAs promote shifts in investment behavior
• Private sector a target but often public sector leadership
• Should be in-line with national long term development plans
Nationally Appropriate Mitigation Actions (NAMAs)

MRV stands for:
• Measurement (or estimation)
• Reporting
• Verification
Text in this section is taken from:
Wilkes A, Reisinger A, Wollenberg E, van Dijk S. 2017. Measurement, reporting and verification of livestock GHG emissions
by developing countries in the UNFCCC: current practices and opportunities for improvement. CCAFS Report No. 17.
Wageningen, the Netherlands: CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS) and
Global Research Alliance for Agricultural Greenhouse Gases (GRA).
What is MRV?

Measurement applies both to efforts to address climate change and to the impacts
of these efforts.
• National level: GHG emissions, mitigation actions and their effects, and the
support needed and received
• Can also track non-GHG social, economic and environmental indicators
(adaptation)
This module will focus on the measurement aspect of MRV
UNFCCC guidance on MRV

• Reporting: through the National Communications and Biennial Update Reports
(BURs)
• Verification: at the international level, through International Consultation and
Analysis (ICA) of BURs
Reporting and Verification are not the focus of this module
UNFCCC guidance on MRV

from FCCC/SBSTA/2006/9
Transparency
• Assumptions and methodologies clearly explained
Accuracy
• Estimates should be neither under- nor over-estimates of true emissions and removals;
uncertainties should be reduced as far as practicable
Consistency
• Same methodologies are used for base and subsequent years; consistent data sets used
Comparability
• Estimates of emissions and removals should be comparable among countries
Completeness
• Covers all sources, sinks, and gases; full geographic coverage
Principles for credible MRV under the UNFCCC

Current reporting requirements to UNFCCC
Annex 1 Parties Non-Annex 1 Parties
National Communication every 4 years
National Communication every 4 years,
with flexibility
Biennial Report every 2 years
Biennial Update Report, every 2 years,
with flexibility
National GHG Inventory annually
. . . but this will likely change as the MRV framework
of the Paris Agreement is further developed

Key messages:
• UNFCCC guidance for MRV of emissions is well established
• MRV of mitigation actions (such as NAMAs) is a flexible, country-driven
process, with currently limited methodological guidance
• Guidance and requirements for MRV of NDCs are still under
development
• The Enhanced Transparency Framework will supersede the current
international MRV framework and provide for MRV of NDCs
Guidance on MRV

Domestically
supported
NAMAs
Internationally
supported
NAMAs
Private
sector
actions
Development
projects with
mitigation co-
benefits
Adaptation
actions with
mitigation
co-benefits
NDC targets
Measurement system
for National
Communications and
BURs (GHG inventory)
Provides a basis for:

• IPCC established methods for estimating GHG inventories
• Tier 1 is the “default” method
• E.g. for the livestock sector, this only requires population data by animal
category and climate region, combined with IPCC default emission factors.
Tier 1 versus Tier 2 emissions calculations

• Tier 2 requires data specific to national circumstances
• E.g. for the livestock sector need information on animal characteristics,
feed baskets and manure management to develop country specific
emissions factors.
• Need to use Tier 2 to track the impact of sectoral interventions (capture
changes in emissions over time)
Tier 1 versus Tier 2 emissions calculations
Livestock herding in
Niger (photo credit:
ILRI/Stevie Mann)

• Usually countries establish an emissions trajectory in relation to business as usual
(BAU) or the “baseline”
• Limited guidance and more work is needed to set comparability of values
• For NAMAs baselines include other benefits beyond only GHG emissions
• NDCs only focus on GHG emissions
• Main challenge for baselines is availability of data
• Best if choose priority sectors and improve data over time
• Should align with national GHG inventory
• Emissions must be estimated with transparent assumptions
Source: Guidance for NAMA Design, UNEP DTU Partnership
Calculating base year or baseline emissions

Example for livestock in Ethiopia
• Calculate 2015 emissions (enteric fermentation
and manure management)
• For Tier 2 used animal characteristics and
feed basket plus management system
• Estimate 2030 emissions under BAU
• Estimate 2030 emissions with key
interventions
• E.g. greater offtake of ruminants, increase
in poultry, change in feed quality for key
systems
• Can estimate changes in total emissions and
emissions intensities
YONAD Business Promotion and Consultancy, Livestock Investment Implementation Plan

Kenya Dairy NAMA
• GCF proposal developed
• Accredited entity is IFAD
• Required several rounds of stakeholder
engagement
• Line ministries
• Private sector
• Detailed analysis of
• GHG emissions reductions
• Economic/ livelihood benefits
• Financial and other feasibility

Discussion on MRV progress for mitigation
Share examples of:
• Alignment of Agriculture Development Goals and Low Emissions (GHG)
targets
• Coordination between units: Climate Change Directorate, GHG inventory, Line
ministries
• Data collection and management for MRV
• Line ministry staff awareness of NAMAs and NDCs
• Capacity to report on NAMA progress, NDC contributions

Why is adaptation MRV important?
Investors require tracking of progress
• Investors/ donors including climate smart “lens” to agricultural
development projects
• All require detailed theories of change and results management
frameworks, with indicators of impact, e.g. on resilience or adaptive
capacity

Adaptation in the NDCs
• Like for mitigation, National Adaptation Plans (NAPs) can facilitate
implementation of NDC goals
• Streamline efforts
• Establish coherent governance structures
• Access to finance
• Identify adaptation- mitigation co-benefits
• NDCs are linked to the Enhanced Transparency Framework which
requires enhanced reporting on support received for climate action
• Global stock take (GST) covers adaptation and mitigation

Country examples: what systems are currently in place for tracking agricultural
adaptation?
• Nature of climate adaptation (e.g. long timescales for impacts and outcomes)
• Multi-dimensional (economic, financial, social) nature of resilience
• Multi-scale: need for aggregating information horizontally across climate-
sensitive sectors, and vertically across different levels of government
• Lack of an “off the shelf” methodology and single metric to assess related
outcomes
• Difficult to identify, combine and interpret the types and relevant indicators
Challenges of adaptation MRV

• Proliferation of initiatives
and frameworks
• Multiples tools, indicators
and reporting requirement
that need to be aligned!
How to track progress towards adaptation?

Indicator types
Implementation
Outcomes evaluation
(short, medium term)
PROCESS -
OUTPUT
Indicators
READINESS
- Indicators
OUTCOME-
IMPACT
Indicators
Enabling
environment

Resilience/adaptation indicators
• Strong connection between adaptation and
development actions and goals
• Post Paris Agreement: Framework and
methodology for Tracking Adaptation in
Agricultural Sectors & list of Indicators (FAO
2017)
• Takes account of ongoing national efforts for
reporting to major international mechanisms
(including the UN’s SDGs and Sendai Framework
for Disaster Risk Reduction)

Key messages
MRV for NDCs must encompass a wide range of actions from across
sectors; therefore it must be well-coordinated within a country.
Shifting from Tier 1 to Tier 2 measurement systems for agriculture
and livestock emissions can help give a more accurate quantification.
Adaptation MRV is increasingly recognized by the UNFCCC as an
important step of the process of adapting to climate change
Parties lack a common indicator framework to track progress towards the
Paris Agreement Adaptation Goal

Questions?

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