Summary
The Pilot Program for Climate Resilience (PPCR) is part of the Strategic Climate Fund (SCF), a multi-donor Trust Fund within the Climate Investment Funds (CIFs). The overall objective of the program is to provide incentives for scaled-up action and transformational change in integrating consideration of climate resilience in national development planning consistent with poverty reduction and sustainable development goals.
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Basic Description
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Name of Fund |
Pilot Program for Climate Resilience (PPCR). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Date created |
Date fund proposed: February 2008. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Administrating organisation |
The World Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Objectives |
Within the framework of the SCF, targeted programs with dedicated funding (known as ‘SCF Programs’) can be established to provide financing to pilot new development approaches or scaled-up activities aimed at a specific climate change challenge or sectoral response. Resources will be mobilized and pledged to specific SCF Programs to be financed within the SCF. A pilot program for climate resilience is proposed to provide incentives for scaled-up action and transformational change in integrating consideration of climate resilience in national development planning consistent with poverty reduction and sustainable development goals. This program is known as the Pilot Program for Climate Resilience (PPCR). The Pilot Program for Climate Resilience (PPCR) is designed to provide programmatic finance for national climate resilient national development plans. The PPCR aims to provide transformational and scaled-up support for both the development and implementation of such plans. Furthermore, its purpose is to provide lessons over the next few years that might be taken up by countries, the development community, and the future climate change regime, including the Adaptation Fund. This experience will be gained through scaled-up interventions covering the full range of sectors and sources of financing, and with sufficient resources to move quickly from planning to action. The PPCR builds upon National Adaptation Programs of Action (NAPAs), and is implemented in a manner consistent with the Paris Declaration of Aid Effectiveness, and complements existing adaptation funds which continue to serve essential roles in tackling climate change.
The PPCR objectives are laid out in the PPCR design document (PPCR/SC.1/CRP.1) and are summarized here:
For more information on objectives and expected outcomes, refer to the PPCR Programming and Financing Modalities report: http://siteresources.worldbank.org/INTCC/Resources/ppcrprogrammingdraftvers2april23.pdf | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Donor contributions |
Pledged: As of November 2011, the following pledges have been made to the PPCR, totalling USD 982 million. Of this total, USD 618 million of the pledges are grant resources and USD 364 million (the pledges from the UK and Spain) are to be used as concessional finance. However as of January 2012 we are lacking information on the latest donor contributions/fund disbursements.
Deposited: As of November 2011, total funds deposited (‘funds held in Trust’) for the PPCR amount to USD 700.54 million. However as of January 2012 we are lacking information on the latest donor contributions/fund disbursements.
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| Activities supported | The Pilot Program for Climate Resilience aims to demonstrate ways to integrate climate risk and resilience into core development planning, while complementing other ongoing activities. The pilot programs implemented under the PPCR should be:
Under the PPCR two types of investments are supported: 1) Funding for technical assistance to enable developing countries to build upon existing national work to integrate climate resilience into national and sectoral development plans. Phase 1 will initiate a series of tasks in each respective country, including facilitation of a cross-sectoral dialogue process to arrive at a common vision of climate resilience in the medium and long-term, and formulation of a strategic approach for climate resilience. During Phase 1, to support this strategic approach an underlying investment program, a Strategic Program for Climate Resilience (SPCR), will be developed. Endorsement by the PPCR-SC of the SPCR for further development marks the transition to Phase 2. Phase 2 will focus on implementing the Strategic Program through actions such as support to policy reform, institutional capacity building, and scaling-up other investments in key sectors. Immediate outcomes of a PPCR program should include: • an increased capacity to integrate climate resilience into country development strategies
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| Conditions and eligibility requirements |
Acknowledging the special needs in relation to funding and technology transfer described in Article 4.8 and 4.9 of the UNFCCC, country eligibility will be based on: (a) ODA-eligibility (according to OECD/DAC guidelines); and
(b) an active MDB country program. Priority will be given to highly vulnerable Least Developed Countries eligible for MDB concessional funds, including the Small Island Developing States. Access to resources under the CIFs will be contingent upon recipient countries fulfilling the criteria of the respective trust funds, that is, adopting Bank and donor conditions in exchange for financing. For the PPCR, eligible countries will have to submit ‘country investment strategies’ which will be assessed by the SCF PPCR Sub-Committee. Guidelines for accessing financing will be drawn up by the CIF secretariat and will also be based on existing World Bank and/or other MDB policies. Financing under the work program will be processed through the MDBs selected by the country. Each operation would follow the investment policies and procedures of the MDB, including its fiduciary standards and environmental and social safeguards.
During its June 2010 meeting, the Sub-Committee reviewed document PPCR/SC.6/9, Proposal for the Allocation of Resources to PPCR Pilots, and agreed upon the following principles to be followed in allocating grant resources under the PPCR:
Based on the current projections of approximately USD720 million in pledged PPCR grant resources, the Sub-Committee agrees that USD600 million is a reasonable programming target, providing a reserve of USD120 million that can be released once contributions are received by the Trustee.
For each of the nine PPCR pilot countries, a range of USD40-50 million may be programmed through a SPCR; and for PPCR regional pilot programs, a range of USD60-75 million may be programmed per regional pilot.
With regards to the allocation of concessional loans available under the PPCR, the Sub-Committee confirmed that concessional loans may be requested by a pilot country or region consistent with the 2009 Programming and Financing Modalities for the SCF Targeted Program, the Pilot Program for Climate Resilience (PPCR) which provides: “… in accessing concessional loans, an initial ceiling is agreed of 20% of the total available concessional finance amount per pilot program. This ceiling will be kept under review and will be reevaluated after the submission of the first three to five Strategic Programs.”
The Sub-Committee also agreed that no new pilot programs will be considered at this time.
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| Funds disbursed to date |
As of January 2012 USD 800 has been endorsed in investment plans. So far USD 148.53 million has been approved for projects and preparation grants and USD 55 million has been disbursed. Of the amount disbursed: USD 33 million has been disbursed to projects and USD 22 million on administrative fees. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Uptake and projects supported |
A full list of projects is available here: http://www.climatefundsupdate.org/projectsWhich was put together, based on the 'Pilot Projects' and 'Decisions by Mail' pages of the PPCR website. And the October 2011 Trustee Report on the Financial Status of the Strategic Climate Fund. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proposed life of fund |
The PPCR will provide financing in the short-term. Recipient countries will be identified, and the first phase of funding to prepare climate resilient development plans will occur, primarily during 2008-2009. The Sub-Committee will not approve any new PPCR financing for activities after calendar year 2012.
A Sunset clause was in place but at the South African meeting in June 2011 it has been revised so as to bring this in line with other SCF programmes – i.e. allowing donors to contribute funding and the committee to approve funding until a new financing mechanism is in place.
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| Further information |
All information on PPCR can be found here:
Results framework: At the SCF Trust Fund Committee meeting in November 2010, The Trust Fund Committee reviewed document, SCF/TFC.6/5, SCF Results Framework, and approved the report and the proposed results frameworks for the PPCR, subject to the comments made at the meeting. The results framework for PPCR can be found here. |
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Decision-making structure for fund disbursement |
A Pilot Program for Climate Resilience Sub-Committee (PPCR-SC) oversees the operations and activities of the Pilot Program. Composition of PPCR Sub-committee PPCR members can be found here: List of Members 1. Six representatives from contributor countries to the PPCR, identified through a consultation process among contributor countries. Current contributor country members: Australia/United Kingdom, Canada, Denmark/Norway, Germany, Japan, United States. 2. Six representatives from eligible recipient countries to the PPCR, identified through a consultation among such countries. Current recipient country members: Bolivia, Nepal, Niger, St. Lucia, Tajikistan, Zambia. 3. The developing country Chair or vice-Chair of the Board of the Adaptation Fund. 4. A representative of a recipient country when a program from such a country is under funding consideration by the Sub-Committee. PPCR members referred to in paragraphs 1, 2 and 3 are the decision-making members. PPCR representatives serve for one-year terms and may be reappointed. No more than one member will represent the same country at any given time. Responsibilities of PPCR Sub-Committee
Expert Group An Expert Group was established by the PPCR Sub-Committee to make recommendations on the selection of countries that will receive financing under the PPCR. Country selection recommendations considered: · Transparent vulnerability criteria; · Country preparedness and ability to move towards climate resilient development plans; · Country distribution across regions and types of hazards. Documents: · Criteria for Selecting Expert Group Members under the Pilot Program for Climate Resilience (PPCR) The Experts: The Expert Group consisted of eight members with a wide range of scientific, economic, social, environmental, development, policy and/or governance/institutional expertise, as well as climate-related knowledge in areas such as agriculture, forestry, fisheries, and health. The full list can be found here: http://www.climateinvestmentfunds.org/cif/ppcr_expert_group |
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Consultations with non-government stakeholders |
In designing the Climate Investment Funds, consultations took place with potential donors and recipients, the United Nations family, other multilateral development banks (MDBs), civil society organizations, and the private sector. At a final design meeting, held in Potsdam, Germany, on May 21-22, 2008, representatives from some 40 developing and industrialized countries agreed to create the CIF. The Trust Fund Committee of the Strategic Climate Fund and the Sub-Committee for the PPCR (PPCR-SC) will have strong developing country participation and will work closely with the Board of the AF to ensure that the PPCR pilot programs are complementary to the work of the AF and strengthen the knowledge-base for future AF actions. The Board of the Adaptation Fund will be invited to be an active participant in the design, governance and monitoring and evaluation of the PPCR, through representation on the PPCR-SC, involvement in the expert group and through the PPCR reporting to the AF Board on programmes, achievements and lessons learned. |
| How fund disbursement is reported |
Pledges, deposits and funding decisions for SCF and its subsidiary funds (PPCR, SREP and FIP) are reported to the Sub Committee in twice-yearly trustee reports. The MDB Committee has agreed on a simple tracking system to enable early identification of potential risks to the timely development and implementation of SPCRs, projects and programs. The following “traffic light” system is proposed to flag the delivery status of investment plans, projects and programs: In addition to the delivery status, the reasons for delays will be provided, along with proposed corrective measures that have been agreed to avoid further delays in submitting the investment plans, projects and programs. |
| Issues raised by the public |
The PPCR has been criticized because its funding for developing country adaptation is largely through (concessional) loans. As Benito Müller writes, ‘Given the patterns of differentiated (historic) responsibilities, the costs for developing country adaptation are seen as debts to be borne by the still largely responsible industrialised world, and debts cannot be repaid by loans,’ (see Müller’s 2008 International Adaptation Finance: the Need for an Innovative and Strategic Approach). The SCF has been criticised by civil society groups for creating parallel structures for financing climate change adaptation and mitigation outside the ongoing multilateral framework for climate change negotiations and within a process dominated by G8 countries. Developing countries have long argued for greater commitments and increases in financial resources under the UNFCCC to enable them to fulfil their obligations under the Convention but have maintained that such resources should be placed under the guidance of the state parties to the Convention to ensure consistency with internationally agreed priorities and principles (See: Celine Tan, Third World Network, ‘World Bank’s Climate Funds Will Undermine Global Climate Action’ 10 April 2008: www.twnside.org.sg/title2/finance/docs/Climate.Funds-Commentary.Revised.doc). The CIFs are also criticised for the significant speed at which they have been designed, promoted and implemented without due consultation with wider stakeholders. (See: Celine Tan, Third World Network, ‘No additionality, new conditionality: a critique of the World Bank’s Climate Investment Funds’ Briefing Paper 2, 2008: www.foe.org/pdf/CIF_TWNanalysis.pdf). The language of the Fund has been criticised for implying recognition of the UNFCCC principles as merely guidance for the Fund’s policies rather than as binding internationally negotiated commitments of state parties which must be respected. They also demonstrate a lack of familiarity with the principles negotiated under the Convention and the legal status of commitments under the UNFCCC (see: http://www.twnside.org.sg/title2/finance/twninfofinance20080510.htm). A brief by Oxfam highlights the role of the PPCR in Tajikistan, released January 2011: http://www.oxfam.org.uk/resources/policy/climate_change/downloads/climate-resilience-tajikistan-240111-en.pdf |
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Is donor funding considered part of official development assistance? |
Since CIF is a pooled multi-donor trust fund managed by the World Bank, an international development institution recognized as such by the DAC for the purpose of ODA eligibility, these contributions can be scored as multilateral ODA. The outgoing use of all CIF resources as concessional loans, grants, and guarantees through the MDBs can be reported by each MDB as ODA if: (a) it meets the criterion of promoting economic development and welfare; b) the grant element is at least 25 percent; and c) funds are to be used in a country included in DAC list of ODA eligible countries. |
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Financial instrument/ delivery mechanism used (e.g. grant, loan) |
Finance is provided to cover the following activities: (a) Grant finance to prepare the Strategic Program for Climate Resilience (Phase 1): (b) Preparation grants for detailed preparation of activities in the Strategic Program (Phase 2): (c) Grant financing, to the extent it is available, may also be used to cover the additional costs associated with mainstreaming climate resilience into investments: The World Bank has emphasized that loans are optional; a country can simply take the grant component and not the loan component. Currently, the money is split 50-50 between loans and grants. Recognizing slight differences in detailed MDB modalities, financial instruments may include budget support/development policy lending, coordinated investment programs across key sectors, and blending with national financing and/or existing international support mechanism targeted at the public and/or private sector, which may, for example, include credit lines and partnerships with financial intermediaries, guarantees, and equity based operations. As the PPCR is designed to integrate climate resilience into development plans, PPCR funded actions should, as an overall practice, not be free-standing and should be blended with MDB resources and/or other parallel and co-financing, including government and/or private sector resources. The Sub-Committee agreed to keep the programming guidelines under review in order to allow for flexibility to respond to challenges that may arise during implementation of the PPCR. The CIF Administrative Unit and the MDBs were requested to report on experience in carrying out the program so that the Sub-Committee can review the programming procedures and financing modalities. The PPCR Sub-Committee document PPCR/SC.6/8, Pilot Program for Climate Resilience (PPCR): Financing Modalities, takes into account experience to date in applying the PPCR programming guidelines. The document was reviewed during the June 2010 Sub-Committee meeting, and includes the following:
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| Nature of recipient country involvement |
The Pilot Program for Climate Resilience Sub-Committee (PPCR-SC) will include representatives from recipient countries identified through a consultation process. At least one representative should be a member of the Trust Fund Committee. Prior to the approval of the first recipient countries to receive funding from the PPCR, eligible recipient countries identified as having priority for country eligibility and recipient country members of the SCF Trust Fund Committee will nominate a matching number of countries to serve on the Sub-Committee. Once a country agrees to participate in the PPCR a joint mission will be set up. The joint mission will be led by the government along with the WB and the relevant regional banks. The mission would take stock of the county situation, work with government sectors and development partners and stakeholders; assess readiness to accelerate with PPCR support; define needs to formulate the investment program; assist with development of proposal, estimate effort and time needed to carry out identified initial tasks and submit to PPCR-SC. |
| Overall consistency with the aid effectiveness agenda (i.e. the Paris Declaration) | The PPCR will provide financial assistance ‘in a manner consistent with Paris Declaration on Aid Effectiveness.’The PPCR will work closely with other organizations funding adaptation to ensure synergy between the strategic work programs of the programs. The PPCR is designed to be complementary to existing sources of adaptation funding and supportive of the evolving operation of the Adaptation Fund. Its core feature is that it is designed to deliver a package of funding at scale to help transform national development planning to make it more climate-resilient. Resources from the PPCR will be blended with other resources from the MDBs, the UNFCCC and other international support mechanisms and with national resources to promote institutional change, capacity building and learning through implementation of climate resilient national development priorities. These goals can best be achieved through a partnership between the recipient country, donors, the MDBs and UN agencies (see language in Annex A of the the Strategic Climate Fund document: http://siteresources.worldbank.org/INTCC/Resources/Strategic_Climate_Fund_final.pdf). |
