1. Climate Change and Climate Finance in Lao PDR
Introduction
COORDINATED GCF/GEF NATIONAL DIALOGUE
12-14 FEBRUARY 2019 – VIENTIANE CAPITAL – LAO PDR
Syamphone SENGCHANDALA (Mr)
DDG and NDA,
Department of Climate Change,
Ministry of Natural Resources and Environment

2. Climate Change and its impacts NDA for GCF
OUTLINE
Climate Change and its impacts
NDA for GCF
Climate Change policy and partnership
Current status preparedness to access the GCF
Key challenges and next step

3. 1- Climate Change and its impacts
AVERAGE TEMPERATURES ARE RISING WORLWIDE
ອຸນຫະພູມສະເລ່ຍພ່າມກາງ ຂອງໂລກກໍາລັງເພີ່ມຂຶ້ນ
GLOBAL WARMING AND CLIMATE CHANGE ARE CAUSE BY HUMAN ACTIVITIES
ສະພາບໂລກຮ້ອນ ແລະ ການ ປ່ຽນແປງດິນຟ້າອາກາດເກີດ ຈາກການກະທໍາຂອງມະນຸດ

4. 1- Climate Change and its impacts Climate in Laos is changing
ພື້ນຖານຂອງລະບົບດິນຟ້າ ອາກາດກໍາລັງປ່ຽນແປງໃນລາວ

5. 1- Climate Change and its impacts
Climate Change affects people’s lives
ACCESS TO FOOD AND WATER : rice, freshwater
Lao Farmers Devastated by Severe Drought –
AsiaNews 20/07/2015)
HOUSEHOLDS
ACCESS TO SERVICES : Education, health,,…
ການປ່ຽນແປງດິນຟ້າອາກາດ ກະທົບຕໍ່ຊີວິດຂອງຄົນ, ສັດ ແລະ ລະບົບນິເວດ ນຖານ

6. 1- Climate Change and its impacts
Climate Change will affect the long-term development
TRADE
TRANSPORT
COMMERCE
ການປ່ຽນແປງດິນຟ້າອາກາດ ແມ່ນບັນຫາທີ່ທ້າທ້າຍຕໍ່ການ ພັດທະນາໄລຍະຍາວຂອງ ສປປ ລາວ

7. 1- Climate Change and its impacts
The ADAPTATION to climate change is crucial to Laos
CLIMATE RESILIENT CITIES
Bioengineering
Road (landslide protection)
Crop diversification
ການສ້າງຄວາມເຂັ້ມແຂງໃນການ ປັບຕົວເຂົ້າກັບສະພາບການປ່ຽນ ແປງດິນຟ້າອາກາດແມ່ນຄວາມຈໍາ ເປັນອັນຮີບດ່ວນໃນ ສປປ ລາວ

8. 1- Climate Change and its impacts
The MITIGATION of climate change need to be taken into account
ການຫຼຸດຜ່ອນການປ່ອຍທາດອາຍເຮືອນແກ້ວ ມີຄວາມມຈຳເປັນຕ້ອງໄດ້ເອົາໃຈໃສ່.

9. National Designated Authority
2. Laos DNA Establish
2015 MONRE nominated DDC National Focal for GCF
National Designated Authority
Department of Climate Change
1. Div. of General Affairs (Secretariat)
4. Div. of Mitigation
Lao PDR has submitted to the GCF a letter indicating the nomination of the NDA and the Focal point as indicated here.
The office reponsible for the communication with the GCF is the departmnet of Climate change, which is composed of 4 divisions.
I take the opportuntuty to introduce some of the staff here: Ignacio (our climate finance expert), Amphayvanh, etc
2. Div. of Education and Awareness
5. Div. of Adaptation
3. Div. of Promotion
6. Div. of DRR

10. Department of CLIMATE CHANGE
2. Laos DNA Establish
MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT
Department of CLIMATE CHANGE
COORDINATION
coordination with line agencies and administrations on climate change activities
OPERATIONALIZATION
development and implementation of CC action plans and programmes
REPRESENTATION
national focal point for climate change conventions and agreements
REPORTING
evaluation and reporting to the government the implementation of CC activities
KNOWLEDGE
This slides shows four level of information
collection & monitoring the information on implementation of climate change activities
AWARENESS
raising the public awareness and engaging people to contribute to climate change
COMMUNICATION
dissemination of CC decisions/actions to the public

11. 3. Climate Change policy and partnership
The Context - Climate Change Action Plans and Policies
NDC
2016
8th NDSEDP
What we have done so far…since 2000, with the 1st National Communication on climate change to Lao PDR NDC in 2016 we have a set of policies and guidelines.
However if we focus on NOW, we have two key documents:
The NDC and the 8th NSDEDP

12. 3. Key Climate Change policy and partnership
National Socio Economic Development Plan
8th NDSEDP
VISION 2030
Lao PDR is ranked as a developing country with upper-middle income and with innovative, green and sustainable economic growth; there is availability of industrial pillars and a strong basic infrastructure system to support industrialization and modernization; the country systematically follows a socialist market economy; there is social justice, peace and order; people’s livelihoods are improved and solidarity promoted; there are improved development disparities between urban and rural areas; there is improved human development that ensures all have access to quality social services; people’s rights are protected under the effective rule of law, the administrative system is enhanced by following the 3-builds directive; there is environmental protection through efficient utilization of the natural resources to ensure sustainability; there is political stability and strength; the country is actively moving toward regional and international integration.
Criteria for LDC Graduation:
Income criterion, based on a three-year average estimate of GNI per capita for the period , based on the World Bank Atlas method (under $1,035 for inclusion, above $ 1,242 for graduation as applied in the 2015 triennial review).
Human Assets Index (HAI) based on indicators of: (a) nutrition: percentage of population undernourished; (b) health: mortality rate for children aged five years or under; (c) education: the gross secondary school enrolment ratio; and (d) adult literacy rate.
Economic Vulnerability Index (EVI) based on indicators of: (a) population size; (b) remoteness; (c) merchandise export concentration; (d) share of agriculture, forestry and fisheries; (e) share of population in low elevated coastal zones; (f) instability of exports of goods and services; (g) victims of natural disasters; and (h) instability of agricultural production.
Pillars under the NSEDP
The NDCs: The contributions that each individual country should make in order to achieve the worldwide goal are determined by all countries individually and called "nationally determined contributions" (NDCs)

13. 3. Climate Change policy and partnership
NATIONALLY DETERMINED CONTRIBUTIONS
MITIGATION
ADAPTATION
M1-Land Use Land Change and Forest
-Increasing and maintaining National Forest Cover
A1-Agriculture
Farming Systems and Agriculture Infrastructure
Appropriate Technologies
M2-Renewable Energy-
Increasing use of renewable energy sources
A2-Forestry and Land Use Change
Forestry Production and Forest Ecosystems
M3-Rural Electrification
-Increasing the level of rural electrification
A3-Water resource
Water Resource Information Systems
Managing Watersheds and Wetlands for Climate Change Resilience
Water Resource Infrastructure Resilience to Climate Change
Climate Change Capacity in the Water Resource Sector
M4-Sustainable Transport
-Improving the road network and developing public transport services
A4-Transport and Urban Development
Urban Development and Infrastructure
M5- Institutional and policy framework
Climate change policy
A5-Public Health
Public Health Infrastructure and Water Supply Systems

14. 3. Climate Change policy and partnership
Nationally Determined Contributions – MITIGATION
Mitigation Priorities
Increasing and maintaining national forest cover
Increasing use of renewable energy sources
Increasing the level of rural electrification
Improving the road network and developing public transport services
Climate change policy and implementation plans

15. CC related- Lao PDR instruments and partners
3. Climate Change policy and partnership
CC related- Lao PDR instruments and partners
EU FLEGT- Facility
EU-GCCA
FCPF readiness fund
Carbon Market
FIP AF
German - IKI
LDCF
Financing instruments
UN- REDD
CDM
FCPF Carbon Fund
FFEM
CTCN
GEF
GAFSP
GCF
NDF
REDD+ Early Movers
CBIT
ASAP
NGOs/CSO
UN Agencies
Bilateral
IFIs / MDBs
Private Sector
Several actors; financial mechanisms and instruments, including the GEF, the LDCF, the GCF and several parternrs, from NGOs to Private sector, but including UN Agencies, biletaral, multilateral, IFIs, etc
UNEP
GIZ
JICA
KFW WB
ADB
New Chip Xeng Group
WCS
IFAD
NTPC
Partners
KOICA
IFC
EIB
FAO
LUXDEV
IUCN
UNDP
WWF
PROPARCO
BFL
AFD
UN-HABITAT
USAID EU
Acleda
others

16. 4. Current status of preparedness to access the GCF
Status overview
1. COORDINATION
Enhanced Coordination of on-going activities
Increased Awareness and communication : national and provincial level
Processes development : Non objection and stakeholder engagement
READINESS SUPPORT
(4 readiness approved &
3 readiness developed &
1 NAP on discussion)
2. STRATEGIC PLANNING
Country Program– Short term and long term priorities
Strategic engagement on priority areas: Forest and Sustainable cities
NAP complementary and coherence with existing projects
3. ACCREDITATION
1.6 million of readiness approved so far (4 readiness proposals
2 -3 million on NAP to be prepared in 2019
900,000 of readiness for submision in 2019
Further details on those readiness and FP will be presented in the afternoon
Support EPF to become one of the National accredited entities.
INVESTMENTS
4 FP ready
3 project ideas
4. INVESTMENTS
4 project proposal ready for consideration by GCF ( USD 125 million)
3 project ideas on development

17. GCF- Four potential areas of support
4. Current status of preparedness to access the GCF
GCF- Four potential areas of support
NDA strengthening
Strategic frameworks
Support for direct access entities
Adaptation planning processes 1 2 3
Four main areas of support under the GCF Readiness Programme:
1. NDA strengthening: Supports ability of the NDA to perform its function. Consultations, establish No-Objection procedure, outreach and awareness raising, etc.
2. Strategic Frameworks: Supports consultative mechanism to underpin solid Country Programme and pipeline development, relevant policy review to support strategic engagement and harmonization with National development plans and resources.
3. Support for direct access: Accreditation, gap assessments, building capacity of direct access entities to support Country Programmes.
4. Adaptation Processes: NAP development, adaption planning processes – template for application still be refined but you can access already under current generic Readiness template. 4

18. 4. Current status of preparedness to access the GCF
Lao’s approach
CAPACITY BUILDING
COORDINATION and M&E
INNOVATION
NDA STRENGTHNING(GCF-UNDP) – including COUNTRY PROGRAM (R1)
Processes
Capacity building
Stakeholder engagement
Strategic frameworks
PRIVATE SECTOR ENGAGEMENT – R5 1
STRATEGIC PLANNING 2
DIRECT ACCESS 4
NAPs - ADAPTATION
PLANS
(LDCF-UNEP focused on information and processes and LDCF FAO on data information and DSS) R7
CLIMATE FINANCE SECTORIAL STRATEGIES
Agriculture and Forest (ADB)
Sustainable cities (ADB)
Sustainable transport (tbd)
Others
EPF ACCREDITATION
(GCF-GIZ) - R2 3
GCF INVESTMENT PLANS : Programmatic approaches
Sustainable cities (GGGI) –R3
REDD+ (FAO) –R4
Agriculture and food security
Sustainable transport
Renewable energy and electrification –R6
Health and education
Starting with national context and policies (INDCs + NAPs) that articulate adaptation and mitigation needs
GCF funding to enable development of these needs, articulated in GCF pipelines, programming priorities, and some may need readiness, PPF, or go straight to FPs
GCF programming equals a series of steps and modalities to help channel this process further

19. Readiness Activities –Portfolio
4. Current status of preparedness to access the GCF
Readiness Activities –Portfolio
Project TITLE DP
Benef.
Duration
R1 - Green Climate Fund readiness and preparatory support for Laos PDR
UNDP
USD
300,000
Supporting the development of the country work programme, no objection procedure and stakeholder engagement guideline
Ending February 2019;
R2 - Getting Lao PDR Environment Protection Fund accredited to the GCF
GIZ
EPF
488,000
Supporting the accreditation of EPF to the GCF
Approved;
R3 - Readiness support to enhance green finance in the areas of green cities
GGGI
DCC
474,000
Priority projects/programs related to green, climate resilient cities and opportunities and challenges to private sector engagement
R4 - Incentive mechanisms for private sector engagement under REDD+
FAO
DOF
349,000
Developing a strategy for financing the forestry and land use sector

20. Readiness Activities - Pipeline
4. Current status of preparedness to access the GCF
Readiness Activities - Pipeline
Project TITLE DP
Benef.
Duration
R5 - Enhancing NDA capacity to engage private sector and access to the GCF
GGGI
DCC
USD
610,000
Further building NDA capacity in accessing the GCF and engaging with the private sector
Submitted comments received
R6 - Market transformation of energy efficient lighting, air conditioners and refrigerators
UNEP
MEM
USD 345,500
Market study and potential activities on energy efficient lighting, air conditioners and refrigerators
Submitted—
On discussion
R7 - Urban climate change resilience in cities along the Greater Mekong Sub- region East-West Economic Corridor
UN- Habitat
MPWT
415,000
Climate change exposure and adaptation measures in an economic priority area of Lao PDR
Submitted –
re-considered
R8 - NAP financing and implementation for the water sector
TBD
/EPF
< 3 m USD
Supporting the development of projects, including their financing strategy, to implement the NAP
Under consideration
R7 proposal objectives may be adjusted for a NAP proposal- as R8

21. Project and programs - Pipeline
4. Current status of preparedness to access the GCF
Project and programs - Pipeline
Project TITLE
AE- -Gov
GCF (US$)
Instr.
Status
P1 - Building resilience of urban populations with ecosystem based solutions
UNEP
MoNRE
19,267,000
Grant
FP submitted to GCF Secretariat
P2 - Resilient Integrated Food Systems (RIFS) in rural Laos
UNDP
MAF
31,425,910
P3 - Climate-friendly agribusiness value chain sector project
ADB
30,000,000
P4 - Climate change mitigation by implementing provincial REDD+ action plans through governance, forest landscapes and livelihoods
GIZ
MAF &
MONRE
45,000,000
FP finalized – to submitted by February 2019
P5 - Climate resilient smallholder farmers and local communities supporting community-led school feeding
WFP
$9,000,000
Project idea agreed by MAF
P6 – Lao PDR REDD+ results-based payment for results period
JICA
TBD
Project idea under discussion
P7 - Lao PDR Landscapes and Livelihoods Project WB
Grant, loan
For discussion
In Lao P{DR

22. 4. Current status of preparedness to access the GCF
R1 - Green Climate Fund readiness and preparatory support for Laos PDR –UNDP: 3 main outcome:
1. Laos GCF Country Programme
2. Laos GCF No Objection Procedure
3. Laos GCF Stakeholder Engagement Guidelines

23. Lao PDR GCF Country Programme

24. What is a GCF Country Programme?
Sets out national priorities for GCF
Brings together climate change and development priorities
Is not a requirement to access the GCF (voluntary)
Will be regularly updated to reflect changing priorities (living document)
Benefits of having a GCF Country Programme:
To support discussions with Accredited Entities
Improved project identification and selection
Increased country ownership
Increased transparency and GCF awareness with national stakeholders

25. Outline of Country Programme
INTRODUCTION: climate change profile, socioeconomic development profile, climate change policy response, capacity development needs
COUNTRY PRIORITIES AND GCF PIPELINE: summary GCF sectoral priority climate activities, pipeline of investment and readiness projects, potential national Accredited Entities
GCF ENGAGEMENT AND COORDINATION: institutional arrangements, Accredited Entities in Lao PDR, stakeholder engagement, GCF/GEF coordination, EPF as key implementation mechanism
MONITORING AND EVALUATION: M&E framework for Programme
IMPLEMENTATION PLAN: action plan to implement Programme
Annex 1: Stakeholders consulted
Annex 2: Detailed sectoral priority climate activities
Annex 3: GCF results framework

26. Process for identifying GCF priorities

27. SHORT TERM PRIORITIES (2019-2021)
CP priorities
Mitigation
Adaptation
SHORT TERM PRIORITIES ( )
LAND USE LAND CHANGE AND FOREST
Increase and maintain National Forest Cover (R4)
Potential projects key areas:
REDD+ Provincial plan implementation (P4)
REDD+ Results Based Payments (P6)
Regional collaboration and law enforcement
Landscape and forest restoration approach (P7)
National Protected Areas protection (P5)
Private sector engagement (credit lines, guarantees, (R4)
Regulatory and legal framework (taxes, FLEGT, etc.)
WATER RELATED
Increase the resilience of urban areas to water impact, in particular to floods (R8)
Small scale infrastructures,i.e.water retention, dykes P1
Ecosystem based adaptation (P1)
Climate proofing infrastructures
Knowledge and data information production and sharing
Increase the resilience of rural areas to climate induced droughts and floods (R8)
Small scale infrastructures
Ground water development
Ecosystem based adaptation
Watershed approaches
AGRICULTURE
Climate friendly agribusiness value chain (P3)
Enhancing crop productivity
Climate proofing production and post-harvest infrastructures
Climate sensitive agri-business (i.e. climate smart agriculture)
Promote climate-related insurance
Enhance resilience of smallholder farming communities in vulnerable areas (P2)
Food and nutrition security (P5)
Micro watershed management
Climate information system
P1 – Project number 1 : Building resilience of urban populations with ecosystem based solutions
R4 – Readiness number 4 : Incentive mechanisms for private sector engagement under REDD+

28. MEDIUM to LONG TERM PRIORITIES (2022- 2030)
CP priorities
Mitigation
Adaptation
MEDIUM to LONG TERM PRIORITIES ( )
ENERGY EFFICIENCY AND RENEWABLE ENERGY
Promoting energy efficiency measures
Energy efficient appliances (R6)
Energy efficiency of public buildings
Engagement of Private sector and market development (R6)
Increasing use of renewable energy sources
Waste to energy in sustainable cities (R3)
Renewable energy sources financing
Biofuels development
Engagement of Private sector and public-private partnership
PUBLIC HEALTH
Increasing the resilience of the health system (infrastructure and population)
Resilient Water Supply Systems expansion and development
Climate change health strategy Development
Climate-health sensitive urban planning (R3 and P1)
TRANSPORT
Sustainable Transport
Implementing a low carbon transport development
Develop public transport nationally and regionally
Support implementation of the Clean Renewable Vehicle Development Strategy (draft)
Transport and urban development
Enhance the resilience of urban infrastructures
Climate proof infrastructure
Land use planning

29. LIVING DOCUMENT : Update of the Country Program
Country Program – UNDP-GCF
A framework with a preliminary list of priorities - Y0
Country Program 3
Priority projects : private sector and Direct Access Entities (i.e. EPF)
Country Program 2 –
A further detailed of priority projects and coordination arrangements Y1
EPF Accreditation - GIZ
GCF REDD+
Investment plan
FAO
Sust Cities
Investment plan
GGGI
Energy Efficiency Markets - UNEP
GCF readiness
Private Sector Enhanced Engagement-GGI
Climate Finance
Investment Plans
Forest & Agriculture
GCF readiness
9th NSEDP
Climate Finance
Investment Plans
Sustainable Cities
Climate Change Strategy
Climate Finance
Investment Plans
(Health ?)
ADB TA

30. Lao PDR GCF No Objection Procedure

31. What is a GCF No Objection Procedure?
Process to ensure consistency of GCF funding proposals with national strategies and priorities
Process that result in a no-objection letter
to be signed by the NDA (DCC).
is a GCF condition for approval of investments and accreditation applications from national entities
Countries decide the appropriate national process for providing the no-objection letter.

32. Lao PDR No Objection Procedure for GCF
Type of activity
Who submits to GCF
Clearance from NDA
NOP letter required by GCF
Concept notes
NDA or Accredited Entity
Yes No
2. Project preparation facility
Accredited Entity
3. Investment project funding proposals
4. Accreditation applications from national entities
National entity

33. No Objection Procedure for
GCF funding proposals
Line Ministry
Accredited Entity
NDA (DCC)
GEF and GCF Committee/
MONRE Minister
Line Ministry with the support of the Accredited Entity initiates Project Development (Idea/Concept/Proposal)
IP1: Accredited Entity submits funding proposal to line Ministry
IP2: Line Ministry provides clearance letter
IP3: Line Ministry or Accredited Entity submits funding proposal and clearance letter to NDA
IP4: NDA gives feedback on funding proposal
IP5: If in conformity with criteria ; Funding proposal is presented for approval to Committee / Minister
IP6: GEF and GCF Committee /Minister approves no objection letter
IP7: NDA provides no objection letter to Accredited Entity
NO OBJECTION LETTER

34. Main Criteria for Non Objection of Funding proposal
aligned to Lao PDR’s national priorities, strategies and plans and GCF country program
in conformity with relevant national and international laws and regulations
complement to existing activities or funding proposals
adequately consulted stakeholders, beneficiaries and affected communities
cleared by relevant line ministries
If the proposal is a public loan, clearance by relevant Ministry (MoF/MPI) is needed.

35. Lao PDR GCF Stakeholder Engagement Guidelines

36. What are Stakeholder Engagement Guidelines?
Provides clarity on national expectations and GCF requirements in relation to stakeholder engagement when identifying, developing and implementing projects
Enhanced national ownership, as an opportunity for stakeholders to provide feedback and get involved in GCF activities

37. Outline of the Stakeholder Engagement Guidelines
Introduction: Background, objective, importance of robust and inclusive stakeholder engagement, links to Country Programme and No Objection Procedure
GCF guidance on stakeholder engagement: summary of key GCF policies which set GCF requirements on stakeholder engagement
Stakeholder engagement for GCF project development: groups of stakeholders to be consulted, consultative mechanisms to be utilised, case study of UNDP project proposal submitted to GCF

38. 5. Key challenges and next step
Coordination : enhanced coordination, in particular in Country Program priority areas;
Capacity and dissemination:
Continue capacity and support EPF to be National Entity for direct access to GCF
Continue Line Ministry/NDA capacity building
Enhanced stakeholders engagement and dissemination
Alignment : Consider the updated NDCs and 9th NSEDP when updating the Country Program
Engagement with Private sector : Build a platform for engagement with private sector
Enhanced Coordinated engagement with GEF and others (CTCN, AF, etc)

39. THANKS FOR YOUR ATTENTION
Countries determine the appropriate domestic process for providing the no- objection letter.
Ministry of Natural Resources and Environment (MONRE)
Department of Climate Change