Direct financing for communities and businesses to respond to Project/Programme Title: climate change in the Cook Islands

Country(ies): Cook Islands

National Designated Wayne King, Director, Climate Change Cook Islands, Office of the Authority(ies) (NDA): Prime Minister, Cook Islands

Ministry of Finance and Economic Management (MFEM), Cook Accredited Entity(ies) (AE): Islands

Date of first submission/ 2020-10-12 V.1 version number:

Date of current submission/ [YYYY-MM-DD] [V.0] version number

Please submit the completed form to [email protected], using the following name convention in the subject line and file name: “CN-[Accredited Entity or Country]-YYYYMMDD”

PROJECT / PROGRAMME CONCEPT NOTE Template V.2.2

Notes  The maximum number of pages should not exceed 12 pages, excluding annexes. Proposals exceeding the prescribed length will not be assessed within the indicative service standard time of 30 days.  As per the Information Disclosure Policy, the concept note, and additional documents provided to the Secretariat can be disclosed unless marked by the Accredited Entity(ies) (or NDAs) as confidential.  The relevant National Designated Authority(ies) will be informed by the Secretariat of the concept note upon receipt.  NDA can also submit the concept note directly with or without an identified accredited entity at this stage. In this case, they can leave blank the section related to the accredited entity. The Secretariat will inform the accredited entity(ies) nominated by the NDA, if any.  Accredited Entities and/or NDAs are encouraged to submit a Concept Note before making a request for project preparation support from the Project Preparation Facility (PPF).  Further information on GCF concept note preparation can be found on GCF website Funding Projects Fine Print.

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A. Project/Programme Summary (max. 1 page) ☒ Project A.2. Public or ☒ Public sector A.1. Project or programme ☐ Programme private sector ☐ Private sector Yes ☒ No ☐ A.3. Is the CN submitted in ☐ Confidential If yes, specify the RFP: Enhancing A.4. Confidentiality response to an RFP? ☒ Not confidential Direct Access (EDA)

Mitigation: Reduced emissions from:

☐ Energy access and power generation

☐ Low emission transport

☒ Buildings, cities and industries and appliances A.5. Indicate the result ☐ Forestry and land use areas for the Adaptation: Increased resilience of: project/programme ☒ Most vulnerable people and communities

☒ Health and well-being, and food and water security

☒ Infrastructure and built environment

☒ Ecosystem and ecosystem services A.7. Estimated 71% of the Cook A.6. Estimated mitigation adaptation impact 32,118 tCO2e (estimated for Islands population, impact (tCO2eq over (number of direct residential energy efficiency only) totalling 10,600 people lifespan) beneficiaries and % of (50% women) population) A.8. Indicative total project A.9. Indicative GCF USD 26 million USD 19.3 million cost (GCF + co-finance) funding requested

A.10. Mark the type of ☒ Grant ☐ Reimbursable grant ☐ Guarantees ☐ Equity financial instrument requested for GCF funding ☐ Subordinated loan ☐ Senior Loan ☐ Other: specify______A.12. Estimated A.11. Estimated duration 15 years (small scale 8 years1 project/ Programme of project/ programme: infrastructure) lifespan A.13. Is funding from the Yes ☐ No ☐ ☐ A or I-1 Project Preparation Other support received ☐ If so, by A.14. ESS category ☐ B or I-2 Facility requested? who: ☒ C or I-3 A.15. Is the CN aligned A.16. Has the CN been with your accreditation Yes ☒ No ☐ Yes ☒ No ☐ shared with the NDA? standard? A.18. Is the CN A.17. AMA signed (if Yes ☒ No ☐ included in the Entity Yes ☒ No ☐ submitted by AE) If no, specify the status of AMA negotiations and expected date of signing: Work Programme? The Cook Islands are expected to incur, on average, about USD 5 million per year (2% of GDP) in direct losses due to tropical cyclone activity – of which 90% are to the building sector. This project aims to strengthen vulnerable residential, small-scale commercial and community buildings, and their surrounding environments, to reduce the building sector’s risk profile and adapt to current and projected climate change. A.19. Project/Programme rationale, objectives and Responding to the GCF’s 2016 Request for Proposals to pilot enhancing direct access, approach of this project will make climate finance directly available to communities/NGOs, programme/project (max individuals (building owners), sole traders/small enterprises, and key public agencies. 100 words)

The project will be driven by the new 2019 building code standard with mainstreamed resilience measures against cyclones, storm surge, floods and drought. Mitigation co- benefit activities will reduce greenhouse gas emissions through household waste separation, increased recycling, energy efficiency retrofits, and sanitation systems.

1 On-granting will be front-loaded in the first 5 years, and the following years will be to finalize the implementation of all sub-activities, monitoring, evaluating and sharing lessons learned.

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B. Project/Programme Information (max. 8 pages) B.1. Context and baseline (max. 2 pages) The Cook Islands is a small island developing state composed of 15 islands (of which 12 are inhabited), spread across 1.8 million km2 of territorial waters, known as the Exclusive Economic Zone (EEZ). Three quarters of the Cook Islands’ 18,000 population (residents and visitors) live on Rarotonga, and 11% live on the second most inhabited island, Aitutaki (2016 census). The remaining population (approximately 3,000 people) inhabit the low-lying outer islands or Pa Enua. Local and customary laws form a system of representation known as the House of Ariki (Paramount chiefs) and the Koutu Nui (Sub Chiefs supporting the House of Ariki).

The economy of the Cook Islands is small, narrowly based, and sensitive to internal losses and external forces. Tourism drives about 65% of GDP, contributing significantly to other sectors, including retail trade, agriculture, and construction. After tourism, fishing, agriculture, and financial services are key sectors for the economy and livelihoods.2

Until 2020, the Cook Islands economy was experiencing strong tourism growth, with real growth reaching a high of 8.9% in 2018. However, the ongoing global Covid-19 pandemic has hit tourism-driven economies hard and the Cook Islands’ GDP is estimated to contract 9% in the last quarter of 2020 due to the collapse in tourism arrivals.3 The Government has launched a series of stimulus packages and incentives: welfare cash payments, wage subsidies, business continuity loans, fees-free training, and most recently a Green Economy Initiative with 50% accelerated depreciation for sustainable investments, to incentivize environmentally sustainable assets and support a greener economic recovery over the medium- to long-term.

Climate change rationale

Climate change risks, impacts, and vulnerability in the Cook Islands

The Cook Islands sits at the heart of the Pacific cyclone belt. Since the 1970s, the country has experienced 36 cyclones of at least category 1. The 2004 – 2005 cyclone season was particularly devastating, with six tropical cyclones crossing through the country, of which three were category 5 – making landfall at windspeeds over 215 km/h4, damaging infrastructure and crops. Due to its exposure to severe tropical cyclones, the Cook Islands is among the 30 countries that experience the highest average annual disaster-related losses, as a share of GDP.

Cyclone risks are primarily to the building sector. According to a World Bank simulation (2015), buildings account for nearly 90% of losses when considering the three key asset classes – buildings, cash crops and infrastructure (Figure 1). The Cook Islands are expected to incur, on average, about USD 5 million per year in losses due to tropical cyclones.

Simulated direct cyclone losses in the Cook Islands average USD 5M per year (2% GDP, 2015)5

Figure 1. Spatial distribution of buildings (left) and average annual loss due to tropical cyclones and earthquakes across buildings, cash crops and infrastructure (right)

Tourism has driven coastal construction, which has increased building exposure and removed natural protective barriers. Coastal development driven by the tourism industry seeks to offer tourists direct access to the waterfront. The build-up of assets along the coastline of the capital, Rarotonga, as illustrated Figure 1, has increased the country’s exposure to damage from tropical cyclones and storm surge. Many natural protective barriers have been removed in the process, accelerating coastal erosion and in turn further exposing buildings in a negative feedback loop.

2 ADB, 2019. Pacific Finance Sector Briefs: Cook Islands. 3 ADB, 2020. Asian Development Bank Outlook 2020. 4 Beca, 2017. Cook Islands Building Code Review - Proposed Updates. 5 World Bank, 2015. Cook Islands Country Note: Disaster Risk Financing and Insurance: https://tinyurl.com/yad2dmhj

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Responding to vulnerability and critical exposure in the building sector, the Government of the Cook Islands in 2019 published a new Building Code, per the 1991 Building Code and Standards Act. The following adaptation measures have been mainstreamed into the requirements for all buildings in the Cook Islands:  category 3 cyclone compliance for all buildings – with more stringent requirements (category 4 and 5) for certain public and essential buildings necessary for a resilient community  guidelines on tying down buildings for cyclones  internal rooftop drainage for a 100-year return interval rainfall event  adequate rainwater storage to ensure a continued supply of water during periods of low rainfall  stainless-steel fixings for buildings close to the foreshore for storm surge and sea level rise  minimum acceptable floor levels to protect buildings from the risk of flooding and coastal inundation

However, for a population already spending upwards of 30% of income on their household and utilities6, the cost of compliance with the new Code remains a challenge.

Climate change is adding additional stress to reef and lagoon ecosystems (heat stress, additional runoff, storm surge, sea level rise). Local observations have shown that sea level rise – already 10 cm above 1950 levels and projected to increase another 20 cm by 2055 – is resulting in the ocean breaching natural lagoon coastal barriers, changing circulation and coastal dynamics. This project seeks to counter the accelerating impacts of climate change with low- impact beach management and coastal protection options, specific to reef and lagoon type coasts, as well as reduced nutrients from sewage and sedimentation from agriculture and construction sites.7 Buildings in the Cook Islands are located in coastal zones, with many directly on the coast (Figure 1), underscoring the need to couple building-scale improvements with locally relevant interventions that increase the regenerative capacity of ecosystems.

Sources of GHG emissions in the Cook Islands Cook Islands: GHG emissions by sector (average 2007 – 2014) Air transport, 8% Marine Total Agriculture, transport, 1% According to the most recent national GHG inventory (inventory 8% Waste, year 2014), GHG emissions in the Cook Islands across the 6% period 2007 – 2014 are primarily from electricity (across Total IPPU, 4% residential (33%), commercial (40%) and industry (27%)) and Domestic, 1% land transportation, with agriculture a significant share (Figure Commercial 2). Emissions in the domestic sub-sector (1%) are from LPG industrial, 1% use. Land transport, 39% This EDA project will deliver mitigation co-benefits that reduce Electricity, 32% emissions in the electricity sub-sector through residential and small-scale commercial efficiency measures as well as solid waste separation at source, increasing rates of recycling and composting. Building-scale wastewater treatment and soil improvements on agricultural plots are two key ecosystem- Figure 2. National greenhouse gas (GHG) emissions profile based adaptation measures that will also reduce emissions. (average 2007 – 2014)

Alignment with national climate and development priorities

The national social and economic priorities of the Government of Cook Islands are laid out in Te Kaveinga Nui National Sustainable Development Plan (NSDP) 2016-2020, which is currently being revised as the National Sustainable Development Agenda (NSDA) 2020+. Aligned with the global Sustainable Development Goals, the 2016 – 2020 NSDP’s Goal 13 is on climate change, to strengthen resilience to combat the impacts of climate change and natural disasters.

The Government of the Cook Islands is leading a comprehensive response to natural disasters and climate change as national development priorities, including:  Establishing a Disaster Emergency Trust Fund in 2011  Capitalizing the Cook Islands Pacific Disaster Risk Financing and Insurance (DRFI) Program under the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI)  Arranging for USD 10 million in disaster contingency loan funds from the Asian Development Bank (ADB) in 2016, contingent on ongoing actions to improve disaster resilience, health and economic impacts  Mainstreaming of climate extremes into planned infrastructure and other key sectoral projects, assessing exposure to at least 6m storm surge above mean sea level, windspeeds of 42 m/sec, daily temperate extremes of 34°C, and 300mm rainfall/day. As a result, climate proofing was required for 40% of pipeline infrastructure projects (NIIP 2015, p. 45), increasing cost, complexity and delivery timelines

6 2016 census data 7 Interview, Matt Blacka, coastal engineer. June 2020.

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 Endorsing a Climate Policy in 2019 as a tool to ensure increased mainstreaming and understanding of climate impacts across primary sectors and population groups, and drafting a Climate Change Response Bill

The combination of reactive disaster risk financing and proactive climate mainstreaming in law, policy and planning represent a strengthening of the Cook Islands’ resilience to disasters.8 However, more efforts are needed to reduce exposure and build adaptive capacity among most vulnerable populations in the Cook Islands, to improve quality of life, secure livelihoods and reverse the trend of out-migration.

B.2. Project/Programme description (max. 3 pages) Project goal To strengthen the resilience of the people in the Cook Islands to the adverse impacts of climate change and cyclones by empowering stakeholders in local government, businesses and civil society to directly access climate finance to build adaptive capacity and reduce exposure in key sectors (see Annex 1 for the project’s theory of change).

70% of project funds will be direct financing to communities and micro, small and medium enterprises Share of project

1. Community • Community building upgrades • Energy efficiency & wastewater treatment adaptation • Greening construction 35%

2. Individuals • Upgrade residential/MSME buildings • Supply chain resilience & businesses • Ecosystem adaptation; green construction 35%

3. Local • Coastal protection, riparian planting • Climate smart agriculture (composting, etc.) governments • Runoff sediment trapping 16%

• Certifications in climate risk assessments, 4. Upskilling & green construction, ecosystem adaptation learning • M&E for real-time learning 14%

Figure 3. Summary of the project’s components and key beneficiaries by activity type and share of project

Expected outcomes (preliminary estimates)  Reduced exposure of 1,300 buildings to climate change  Efficient resource use for a resilient low emission economic recovery post-COVID-19  Improved resilience of ecosystems and ecosystem services  Strengthened institutional and individual capacity of vulnerable populations (lowest 20% of earners)

The project will achieve the goal and outcomes by providing direct financing to communities, the private sector and the public sector. The project is structured around four (4) components, summarized in Figure 3 above.

Component 1. Community-led response to climate change

This component aims to support communities to increase the resilience of essential community buildings and to ensure that construction-sector activities are sustainable. Community awards will be programmed in two tiers: 1. grants up to USD 25,000 for highly local and grassroots community organizations 2. grants up to USD 150,000 for NGOs and CSOs with a good track record of managing project funds and who undergo rigorous know your customer and due diligence processes

Community groups, NGOs and CSOs will be invited to apply for grants, provided that they can provide at least 20% of in- kind co-financing (for example, labour, vehicle hire and fuel), for inter alia the following activities:  Community building upgrades to comply with the new Building Code  Energy efficiency retrofits of community buildings  Community building wastewater treatment & reuse  Protection and sustainable use of local products for the building sector (green construction)  Ecosystem protection (foreshore protection and riparian planting) and environmental monitoring

8 ADB 2019

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The project will award approximately 275 community grants over the first 5 years of the project, including providing project writing support, totalling USD 6.8 million in GCF financing with at least USD 0.9 million in co-financing.

Component 2. Direct financing for climate outcomes in private buildings

This component will upgrade existing private buildings to comply with the new 2019 Building Code, in particular private buildings belonging to self-employed, sole traders, and micro- and small- enterprises. These groups are often operating out of uninsured structures, leaving them exposed to losses and unable to quickly recover and resume business after an extreme climate event, incurring long-term losses. Coupling climate resilience with mitigation co-benefits, implementing energy efficiency measures while strengthening structures, the project will strategically use the demand for climate technologies to green the building sector construction supply chain for long-term sustainable economic recovery benefits.

The private sector under this component consists of three key groups:

3. SMALL & MEDIUM 1. INDIVIDUALS 2. MICRO ENTERPRISES ENTERPRISES

People that own or occupy buildings and Sole traders & individual contractors who Formal but small businesses operating in who need to upgrade structures to meet work in the construction sector supply supply, manufacturing, distribution and the new 2019 Building Code chain, especially informal actors retail of the building sector supply chain

The delivery approach for this component is based on a principle of simplicity for the beneficiary to access climate finance, and under this principle, the project will where appropriate work with intermediaries that have existing customer relationships and networks with target beneficiaries – for example, the commercial banks (BCI, BSP, among others).

This component will directly support individuals and MSMEs by financing with grants the incremental cost of adaptation in building-related investments and/or transforming the construction supply chain into low-emission, green business.

This component aims to support an estimated 1,300 building owners (up to USD 5,000 per grant) and 235 MSMEs (up to USD 10,000 per grant) to achieve low emission climate resilient buildings and supply chains. By providing a maximum of 60% of the financing request, the project’s USD 6.7 million in grant financing under this component will require approximately USD 5.2 million in cash to be raised. This co-financing ratio will align interests for successful outcomes while still ensuring the project can affordably support local businesses and complement – rather than replace – the role of commercial banking in the Cook Islands. However, individuals have, during stakeholder consultations, raised concerns about the ability of vulnerable individuals to meet the cash co-financing requirement (namely the elderly and unemployed). Co-financing requirements for such individuals will be further considered during full proposal development.

To reach the less accessible informal operators, the project will work closely with Island Councils across the Cook Islands and will partner with institutions that have a wide reach, namely the Business Trade & Investment Board (BTIB).

Component 3. Public sector interventions to reduce climate risk through ecosystem services

Natural foreshore areas, between the sea water level and developed land, are critical buffer zones against cyclones, storm surge and sea level rise. The foreshore areas are being squeezed from both sides – land-side due to tourism coastal development pressure for waterfront views, and ocean-side due to climate change. In response, more ad-hoc and poorly designed coastal protection works are being erected, accelerating the loss of natural buffers, and in turn further exposing buildings to cyclones and storm surge in a negative feedback loop.

This component aims to support landscape-scale interventions that reduce the risk profile of the environments in which buildings and people’s livelihoods reside through enhanced ecosystem services. Indicative activities under this component include:  foreshore (back-of-beach) stabilisation  low-impact beach management, e.g. designated vehicle parking and pedestrian paths  rebuilding, revegetating or enhancing natural storm berms that have been previously cleared or modified  beach nourishment (adding sand from an external source) and sand back-passing (redistributing sand within an ecosystem), informed by expert knowledge of local coastal dynamics  sediment trapping and control systems around agricultural plots and building construction sites, using biodegradable materials where possible  riparian planting of creek banks  climate smart agriculture including composted and organic matter, green manure, cover cropping, and identifying better suited machinery that will cause less soil erosion

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MFEM will invite Government agencies to apply for climate finance through its grant facility. Applications from local governments in the Pa Enua will be prioritized to promote a geographic spread of activities and beneficiaries. Some central government agencies, such as the National Environment Services (NES), have outer island officers and will be a valuable project partner. This component expects to award approximately 36 projects in the first 5 years of implementation; with a 20% co-financing expectation, this component totals USD 3 million in GCF financing and USD 0.4 million in co-financing.

Component 4. Technical assistance, M&E and learning

This technical assistance component will build capacity at local and central government levels and among key stakeholders. Six (6) technical climate experts will support EDA activities in the outer islands across all project components. This component includes a comprehensive training programme for upskilling in key climate results areas, namely through two key areas: 1. a series of expertly facilitated training workshops to sensitize decision-makers, media, partners and beneficiaries to the project’s theory of change, eligible activities and application processes. 2. certificate courses for upskilling in climate-relevant trade professions, through local trade training institutes, including the Cook Islands Tertiary Training Institute (CITTI) and the University of the South Pacific.

Under #2 above, the project will competitively award up to 5 students scholarships for an advance university diploma in a climate-relevant field. The Pacific Centre for Environment and Sustainable Development (PaCE-SD) and the University of the South Pacific (USP), which has a campus in the Cook Islands, offer for example Masters, PhD and post-graduate diplomas in climate change, in partnership with regional and global partners9. ICI has also cited the need for civil engineers (credentials not available in the Cook Islands) with a specialization on coastal and sloped habitats.

Component 4 includes evidence-based impact evaluations of the awarded grants, with a focus on real-time learning.10 The project will evaluate individual project activities and investments using random selection and representative sampling. Fifteen key performance indicators have been shortlisted for the project, of which 9 are from the NSDP (2016 – 2020) with data already being collected annually. Several indicators are straightforward (e.g. tonnes of waste recycled per year) while others relate to wellbeing outcomes (e.g. % change in real growth of the lowest 20% of incomes). Comparing outcomes across EDA beneficiaries, with those who did not receive a grant award (as a control group), will be used to evaluate the impact of different investments and inform a robust upscaling strategy.

Delivery arrangements

The Ministry of Finance and Economic Management (MFEM) was accredited to the GCF in 2018 as a national direct access entity (DAE) for small (up to USD 50 million) projects with low environmental and social risk projects (Category C). MFEM is accredited for project management and grant award.11 A Project Management Unit will manage the day-to- day delivery, staffed by a project manager, assistant, procurement and other support personnel ( Figure 4).

Oversight body

Project oversight will be provided by the National Sustainable Development Commission (NSDC), a high-level, cross- sectorial Government body that meets monthly. The NSDC has 9 members, and the NSDC secretariat is the Central Policy and Planning Office of the Office of the Prime Minister (OPM).

Decision-making body

A Steering Committee and Technical Advisory Group (TAG) will make grant-award decisions and will be responsible for 1) fiduciary and administrative due diligence, 2) technical evaluations, and 3) environmental and social safeguard compliance. The Director of the Development Coordination Division in MFEM chairs the TAG. In addition, TAG is composed of staff from the Ministry of Finance, Climate Change Cook Islands of the Office of the Prime Minister (OPM), National Environment Service, Ministry of Internal Affairs, Chamber of Commerce, Business Trade and Investment Board (BTIB), a NGO representative and the Bank of the Cook Islands (BCI). For the EDA project, the TAG will include external experts and stakeholders, such as:  Infrastructure Cook Islands (building permitting) and other engineers and experts as needed  Gender interest groups (e.g. CI Business & Professional Women)  Civil society (for grants awarded under Component 1)

9 University of the South Pacific: Education. Accessed 11 July 2020 https://pace.usp.ac.fj/education-2/ 10 GCF’s Learning-Oriented Real-Time Impact Assessment (LORTA) approach https://ieu.greenclimate.fund/evaluations/lorta 11 GCF Accredited Entities https://www.greenclimate.fund/ae/mfem

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 Private sector (for grants awarded under Component 2)  Local government (for grants awarded under Component 3)

EDA preliminary delivery arrangements

GCF Key Private sector projects Oversight body Community & NGO projects National Sustainable MFEM –DAE Public sector projects Development Council (NSDC)

Decision‐making body Project Management Steering Committee / TAG Unit Central Government Rotational Chair Support Agencies e.g. MoA, DCD, CCCI, BCI, BTIB, NES, ICI, etc. as Technical INTAFF, CoC, NGO Assistance Monthly/Quarterly meetings

Eligibility screening: Outer Outer Puna, Church Group, CoC, Rarotonga Respective Island Council & island island CSOs according to each CCCI Focal Point Island

Figure 4. Implementation arrangements for the public, community and private sector windows

Applications from stakeholders will be screened using transparent eligibility criteria at the level of their respective island of origin, by Island Councils, a representative of the DAE and dedicated experts hired by the project, before the applications are sent to the central government for approval. This serves to achieve the EDA’s devolved and locally empowered approach as well as to strengthen due diligence of applications – for example, the Steering Committee/TAG may dial-in the outer island officer(s) to directly respond to questions, share photos of project sites, among other safeguards.

B.3. Expected project results aligned with the GCF investment criteria (max. 3 pages)

Impact potential This project will build the resilience of a target beneficiary group of the GCF – a small island developing state (SIDS). With a focus on direct financing to communities and MSMEs, the project will benefit approximately 71% of the Cook Islands population – 10,600 people (50% women).

This EDA project is also designed to contribute to global impact by responding to the GCF 2016 Request for Proposals, serving as a pilot project to support the establishment of an EDA modality at the GCF. Specific features of this project include:  A significant share of small-scale activities should directly support communities or SMEs: 70% of project funds will be direct financing to communities and micro, small and medium enterprises through components 1 and 2; see Figure 3  Learning processes should be supported by a specific monitoring and evaluation plan for each pilot at the country level, with specifically designed key performance indicators: see Section C.3 and Figure 8 for the impact evaluation methodology and KPI

Paradigm shift potential The project will catalyse local climate technologies, as a strategic paradigm shift in the Cook Islands to green the construction supply chain for long-term economic, social and environmental development gains, as outlined in Figure 5, e.g. through more sustainable low carbon building aggregate materials, and by creating a local industry for biodegradable sediment control materials from coconut coir fibres. The project will upskill individuals and small-scale businesses in these key climate areas, opening new market opportunities towards the green economic recovery.

The project’s integrated approach to buildings – including small-scale auxiliary facilities (wastewater treatment and water storage) and surrounding environmental exposure, as well as a focus on using climate information in the sector’s supply chain – will catalyse impact beyond a one-off intervention.

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Greening the construction supply chain for a low emission and climate resilient economic recovery

Raw materials Supplier & manufacturer Distribution & retail Building / business owner Installation & maintenance Ecological monitoring Sea level rise and changing Ecosystems are already Climate Cyclones and storm surge Retailers are operating out Many buildings are not Construction projects are rainfall threatens locally‐ under multi stressors (such exposure & can affect international and of climate‐vulnerable compliant with the new not always inspected or grown coconut timber and as nutrient loading) as vulnerability intra‐island supply chains buildings 2019 Building Code properly maintained pine products climate impacts accelerate As new buildings become Significant residential Without efficiency Supply chains can account Road transport is the 2nd Sources of more energy efficient, other emissions from LPG use, interventions, building Land use degradation is a for three quarter of largest GHG emissions GHG phases of the life cycle emit solid waste, wastewater operations can account for minor contribution to emissions in many industry source in Cook Islands (33% emissions relatively more e.g., choice and product use (AC, up to 90% of lifecycle national emissions sectors of total emissions) of materials refrigeration) emissions

. Incentivize sustainably . Diversify overseas . Support businesses that . Subsidize building . Include maintenance into . Monitor ecological sourced materials suppliers distribute climate owners to access financing agreements impacts . Promote recycled . Support small business technologies concessional finance for . Periodic follow‐up . Promote ecological materials, e.g. glass to produce locally viable . Small grants to green a range of eligible inspections resilience to EDA project crusher for building climate solutions and build climate climate technologies complement built interventions aggregates . Support local suppliers resilience of key local that reduce emissions environment . Protect natural assets to develop business retailer operations and/or reduce climate investments for through community‐scale continuity plans and vulnerability integrated resilience ecosystem projects stress‐test operations

Adaptation impact Mitigation impact

GCF results 90% of national Strengthening Use of climate Reduced Awareness of Decrease in Increase in the Improvement in framework population institutional information exposure to climate risk and energy intensity use of low‐ waste benefits systems in decisions climate risks risk‐reduction of buildings carbon transport management

Figure 5. Climate exposure and emissions sources in the building sector supply chain and the project’s interventions and outcome results

Sustainable development This project will contribute to the Cook Islands’ resilient low emission economic recovery and sustainable development, including in particular Sustainable Development Goals 8 (inclusive growth) and 11 (safe settlements).

SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. The project’s devolved approach to climate finance will provide over 60% of funds directly to communities and MSMEs, who will in turn procure goods and services for the estimated 2,000 micro-projects to be supported under the EDA. The structure lends itself to local job creation and employment, especially among sole traders and informal operators, who may otherwise not directly be engaged or gain experience from large, centralized climate projects.

SDG 11: Make human settlements inclusive, safe, resilient and sustainable. Upgrading buildings will improve safety and quality of life for occupants; for example, upgrading gas, kerosene, wood or charcoal used in cooking to electric stoves will improve indoor air quality and human health.

Needs of recipients The Government of the Cook Islands faces the challenge of building climate resilience in a small island developing state’s narrowly based economy, sensitive to external forces – with an already declining population and an uncertain future of tourism due to the global pandemic. Shifts in average and extreme climate signals are well documented regionally and locally, and climate projections to 2055 signal elevated risks to the people and economy (Figure 6).

Efforts are needed to reduce exposure and build adaptive capacity among the most vulnerable populations in the Cook Islands, to improve quality of life and secure livelihoods. The most vulnerable populations are defined, in the context of this project, as people without any income (12% of the population), and the lowest 20% of income earners. Vulnerable low-income earners are the key beneficiaries of this project.

Stakeholders at the Economic Development Conference (EDC) in Rarotonga (October 2019) reported that, “Most of the people are unable to afford living on the island. Cook Islanders have more economic incentives to migrate to New Zealand where the hourly wages are about $12 higher while the cost of living is lower.” Key recipient needs relate to reducing the cost of living and improving quality of life, including full and productive employment and decent work, to retain more people in-country. Enabling private sector growth is critical, including access to climate finance by different groups, and understanding technical climate data/information to make informed decisions and avoid post-disaster migration.

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Key climate hazards Today By 2050 (very high emissions scenario) Food Water insecurity Average scarcity Coral bleaching yearly temp 24.5°C 1.3°C (Rarotonga)

Heat & Inland drought Lightning/ Wet erosion + frequent thunder season 200 + intense rainfall cm/year extreme rainfall days

River flooding Floods Cyclone Mean sea 11cm 24cm level (cm) since 1993 additional Surface Sea level Extreme flooding rise & winds storm 11 cyclones 50% chance of surge Cyclones per decade, a 75M USD averaging Extreme loss event Coastal high‐water 4.9 M USD erosion Saltwater level losses/year intrusion

Figure 6. Key climate hazards in the Cook Islands and future climate projections to 2050 using RCP8.5 (high emissions scenario) Data obtained from BoM and CSIRO, 2014

Country ownership The EDA Concept Note has been developed by the Ministry of Finance and Economic Management (MFEM) as Accredited Entity in close collaboration with Climate Change Cook Islands (CCCI), in the Office of the Prime Minister, as NDA to the GCF, with consultants funded by the country’s 4th Readiness project. The EDA results framework is aligned with the Cook Island’s national climate change priorities, as documented in:  Cook Islands Country Programme  Cook Islands Climate Policy  Climate change goals in the National Sustainable Development Plan (NSDP) (2016-2020)  Nationally Determined Contribution (NDC) to the UNFCCC  Joint National Action Plan for Disaster Risk Management and Climate Chang Adaptation (2016-2020)

The project also directly responds to the Government’s updated and approved 2019 Building Code, which is a key feature of country ownership.

In addition to the Government, ownership by stakeholders and communities is key. The EDA project is aligned with the Cook Islands Country Programme – Area 10: Building Resilient Livelihoods of People and Communities, specifically responding to stakeholder requests to 1) establish funding mechanism(s) to support mitigation and adaptation actions for communities, private sector and households; and 2) explore and implement incentive programmes to increase private sector and community participation in mitigation and adaptation actions.

Community and small business interests are safeguarded in the EDA project, since 70% of the project funds will directly finance small-scale community and MSMEs activities.

Efficiency and effectiveness The project’s efficiency and effectiveness are demonstrated through firstly the application of best practices, and secondly through consideration of co-financing and cost-benefit.

Application of best practices The climate-resilient Building Code (2019) was developed through a technically robust and consultative process from 2017 to 2019, with careful consideration across climate resilience, cost and social acceptability. Under Component 3, the project will also support nature-based solutions – soft infrastructure for long-term beach stability and regeneration.

Co-financing and cost-benefit The project and its beneficiaries will provide co-financing totalling USD 6.7 million, or 26% of total project costs. Nearly half of this co-financing will be provided by the private sector under Component 2, as matching cash or loans for the EDA grant investment. Based on preliminary estimates, a GCF investment of USD 5.2 million into private buildings under Component 2 would protect building assets with a replacement value of USD 82.5 million.

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B.4. Engagement among the NDA, AE, and/or other relevant stakeholders in the country (max ½ page) The NDA has been promoting EDA since 2018 and has been actively engaged in project design once Readiness 4 was approved, as well as through bi-weekly calls from May – October 2020 with the Development Coordination Division (DCD), the EDA project’s development team within MFEM and external consultants. One-on-one interviews were held with key stakeholders, including the Business Trade and Investment Board (BTIB), Infrastructure Cook Islands (ICI), Chamber of Commerce and Chief of Staff in the Office of the Prime Minister. Broader consultations on a draft concept note were undertaken with key stakeholders and communities from several islands in September 2020.

The project team has also incorporated feedback from extensive engagements across the Cook Islands on topics relating to the project’s activities, including in particular the Building Code revision (2019), the Government’s Economic Development Strategy (currently under preparation), and NDA-led consultations on the GCF Country Programme (2017 – 2018). Table 1 summarizes the consultations and how the insights have or plan to be addressed in the project.

Table 1. Summary of stakeholder inputs informing the project design and scope of activities

Project response or planned follow-up during Consultation Key request or recommendation Funding Proposal preparation Water shortage issue on Aitutaki, recommend a water tank Water tanks are eligible under Component 1 and 2 Economic Development subsidy Conference (EDC) Pa Enua Better waste management systems need to be put in place to – Aitutaki Island Eligible activity under Component 2 and 3 protect the lagoon Housing on Rarotonga is very expensive, especially for people Identify as potential social risk (cost to renters or from the Pa Enua with no land and who have to rent; this is non-building owners) increasing outward migration to New Zealand where rent is Prioritize activities that lower the cost of living EDC Rarotonga – Takitumu lower, and wages are higher post-implementation Community Meeting on 31 Tourist operators need to be more conscious of environmental October 2019 Coastal restoration is eligible under Component 3; impacts; consider partnering with Mana Tiaki programme which potential partnership with Tourism’s Mana Tiaki is expanding to including initiatives energy efficiency, waste, programme for commercial/tourism sector coastal protection Introduction of invasive pine tree species to some of the Outer Add introduction of invasive species to the Islands has been a problem for agriculture project’s ESS risks and action plan EDC Rarotonga – Puaikura Community Meeting on 30 Communities want more attention to cyclone shelters and Community building upgrades eligible under November 2019 natural disaster preparedness Component 1; natural disaster preparedness eligible under Component 3 using ecosystem services MFEM ESS and Gender Ensure that women and men equally benefit from activities Add equal benefit for men and women to the Workshop on 7 – 9 Nov which are funded through MFEM Gender Action Plan; disaggregate indicators by 2018 gender where appropriate Request for training sessions with the community in how to Award a small project preparation grant for Green Climate Fund develop and put together project proposals and concept notes successful concepts and couple with technical Fostering Resilience guidance notes for applicants Workshop on 27 October 2017 Continue to inform and engage with stakeholders on the Consider reviving the Government’s quarterly or Government’s progress with the GCF twice-yearly e-newsletter on portfolio updates Building resilience means not too much should be exempt from Summarize and include references to key Building the Code, but affordability is a key consideration and tradeoff; Code requirements for use of local material in special guidelines for use of locally available and cheaper Consultations by Beca EDA project material International Ltd. (2017) on materials the Building Code revision Lack of oversight from different parts of Government; building Consider feasibility of appointing the Building regulations and Act needs a Building Board, but this doesn’t Board as part of project governance/oversight exist (lack of funding)

C. Indicative Financing/Cost Information (max. 3 pages) C.1. Financing by components (max ½ page) Please provide an estimate of the total cost per component/output and disaggregate by source of financing. Component/ Indicative cost GCF financing Co-financing Output (USD) Amount Financial Amount Financial Name of (USD) Instrument (USD) Instrument Institutions

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1. Community-led 7.8 million 6.8 million Grant 1 million In-kind Community response to climate groups change 11.9 million 6.7 million Grant 5.2 million Cash (self- BCI; ANZ; financing; BSP; 2. Direct financing subsidized Business for climate and Trade & outcomes in private commercial Investment buildings loans) Board; individuals 3. Public sector 3.5 million 3 million Grant 0.5 million Cash and Government interventions to In-kind of the Cook reduce climate risk Islands (tbc) through ecosystem services 4. Technical 2 million 2 million Grant assistance, M&E and learning Project 0.8 million 0.8 million Grant management costs Indicative total 26 million 19.3 million 6.7 million cost (USD)

C.2. Justification of GCF funding request (max. 1 page) This project is designed to award grants to the most vulnerable populations – defined, in the context of this project, as people without any income (12% of the population), and the lowest 20% of income earners – people earning less than NZD 10,000 (USD 6,500) per year (Census 2016 – Figure 7). Vulnerable low-income earners are the key beneficiaries of this project.

Justification of grants to communities. Community groups are not- for-profit collectives; grants with co-financing requirements are the Cook Islands income level (NZ$) of people most appropriate financial instrument. Alternative funding options 15+ years include donor contributions, and the Governments of New Zealand, No Income 12% the European Union, Germany, Japan and India. These have a track record awarding small grants; GEF and Adaptation Fund projects less than $5,000 11% have also awarded small grants with a typical one-year duration and $5,000‐$9,999 14% amounts of less than USD 50,000. Community groups and NGOs $10,000‐$14,999 19% have cited the lack of predictability of small grant announcements as $15,999‐$19,999 14% a barrier to their strategic programming and impact. Government $20,000‐$24,999 8% grants to communities have targeted welfare (e.g. Social Investment Fund) or more commonly commercially productive sectors, such as $25,000‐$29,999 7% fisheries. These facilities have made important contributions to $30,000‐$34,999 4% community capacity building; areas for further development include $35,000‐$39,999 3% evidence-based impact evaluations targeting climate outcomes for $40,000‐$49,999 3% paradigm-shifting results. Impact evaluations will compare outcomes $50,000‐$59,999 2% of randomly selected projects and compare results with communities that did not receive grants (as a control group). There will be two $60,000‐$69,999 tiers of applications under the community window, with a simpler $70,000‐$79,999 application for grants up to USD 25,000, tailored to informal $80,000‐$89,999 grassroots organization. $90,000‐$99,999

$100,000 or more Justification of grants to the private sector. The private sector in the context of this EDA project refers to sole traders, micro and small Figure 7. Income distribution in the Cook Islands (2016) businesses and individuals that own or occupy buildings that need to be upgraded to the new Building Code – many of whom are in the bottom 20% of income earners, aren’t formally registered, often without email, internet access, and no official record keeping. There’s been a recent drive to register and provide stimulus to this demographic, through the Government’s Covid-19 Economic Recovery Programme. For example, the Chamber of Commerce registered about 300 such individuals between March – July 2020 and is providing business literacy training (Interview, 2020). The EDA project will make small grants available to vulnerable private sector

PROJECT / PROGRAMME CONCEPT NOTE GREEN CLIMATE FUND | PAGE 12 OF 4 actors, generally considered unbankable, for climate outcomes that reduce exposure and promote efficient resource use for resilient low emission economic recovery. Cash co-financing of at least 40% is expected from each private sector grant awarded for align incentives and optimize the use of GCF grant resources. Stakeholder consultations raised concerns about co-financing requirements for vulnerable individuals (elderly, unemployed, among others), which will be investigated during full proposal development. C.3. Sustainability and replicability of the project (exit strategy) (max. 1 page) The project is structured to programme all grants within the first 5 years of implementation; in the final 3 years, the project will close-out the grants, evaluate the impact of awards, communicate results and develop an evidence-based scale-up strategy for the most impactful and cost-effective outcomes.

Project indicator framework to inform an evidence-based scale-up strategy

Efficient resource use Reduced exposure of Strengthened Overall project for resilient low Environmental benefits the building sector to institutional and emission economic outcome climate risks for ecological resilience individual capacity recovery

# buildings with at Coastal and riparian # beneficiaries, % change in real least Cat. 3 Tonnes of waste areas strengthened in disaggregated by growth of the lowest protection as a result recycled per year response to climate gender 20% of incomes of the project variability and change

Change in water # beneficiaries quality at Rarotonga, relative to total % properties with % median income Aitutaki and Manihiki # people trained population water storage tanks spent on electricity lagoons

% properties in flood % change in real % properties Performance of the zones with growth of the lowest practicing waste project's awarded adequately elevated 20% of incomes separation public sector projects floors Key NSDP indicators % properties using sanitation systems Project‐specific indicators that meet approved standards

Figure 8. Initial KPI for the EDA project

For a robust and compelling scale-up strategy, 15 key performance indicators (KPI) have been compiled, which include 9 KPI from the National Sustainable Development Plan (2016 – 2020) for which data is already collected annually. The impact evaluation will compare outcomes across beneficiaries and non-beneficiaries (as a control group), to quantify the impact of different EDA investments on climate change outcomes, where possible. The scale-up strategy will be led by MFEM and the Office of the Prime Minister developed using the evidence basis and shaped through input and feedback from stakeholders.

D. Supporting documents submitted (OPTIONAL) ☒ Map indicating the location of the project/programme – Annex 1 ☒ Diagram of the theory of change – Annex 2 ☒ Economic and financial model with key assumptions and potential stressed scenarios – Annex 5 ☒ Pre-feasibility study – Annex 4 ☒ Evaluation report of previous project(s) – Annex 3 ☒ Results of environmental and social risk screening – Annex 6

Self-awareness check boxes Are you aware that the full Funding Proposal and Annexes will require these documents? Yes ☒ No ☐ • Feasibility Study • Environmental and social impact assessment or environmental and social management framework

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• Stakeholder consultations at national and project level implementation including with indigenous people if relevant • Gender assessment and action plan • Operations and maintenance plan if relevant • Loan or grant operation manual as appropriate • Co-financing commitment letters Are you aware that a funding proposal from an accredited entity without a signed AMA will be reviewed but not sent to the Board for consideration? Yes ☒ No ☐

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Annex 1. Map of the project location

Cook Islands

Map of the Cook Islands Key

Aitutaki Atiu Mangaia Northern group Manihiki Manuae Mauke Mitiaro Nassau Palmerston Penrhyn Southern group Pukapuka Rakahanga Rarotona Suwarrow Takutea Source: Beca, 2017. Cook Islands Building Code Review.

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Annex 2. Project theory of change and climate rationale This section presents two diagrams: 1) the theory of change, and 2) the project’s climate adaptation rationale and mitigation co-benefits.

Theory of change diagram A theory of change indicates how the funded activities will produce outputs, which will in turn deliver results and achieve the intended output. Importantly, the assumptions that bridge the ability of the activities to achieve the impact are made explicit.

Theory of Change Direct financing for communities and businesses to respond to climate change in the Cook Islands

Activities Outputs Results Impact

C1. Empower communities to Reduced exposure of the  Buildings structurally adapt and respond to climate built environment (building upgraded for climate change change sector) to climate risks  Energy efficiency realized in buildings C2. Direct financing for climate Reduce emissions from Increased climate  Rainwater harvesting and outcomes in private buildings buildings and appliances resilience of the most storage installations through low emission vulnerable people,  Building‐scale sewage C3. Public sector interventions economic recovery island communities and treatment installed to reduce climate risk through institutions  Replanted coastal and riparian ecosystem‐based adaptation Increase resilience through areas ecosystems and ecosystem  Upskilling of workers in the C4. Technical assistance, M&E services, generating building sector and learning environmental benefits

Communities, in particular the Pa Enua outer islands, People maintain their buildings post‐intervention support and apply for grants under the project Ecological interventions have adequate time to get established (e.g. Competent and experienced workers are interested in before a major cyclone arrives), and development control systems

Assumptions building skills relevant for climate change solutions (e.g. EIAs) enforce building setbacks of future developments

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Climate rationale diagram The project’s climate rationale is that climate-induced loss of protective coastal habitat is increasing exposure of the building sector – the majority of which (77%) are residential. Cyclone damages to buildings, especially the residential sector, increase living costs and undermine national sustainable development gains. The project will provide grant financing for climate interventions that reduce exposure (blue patterned boxes) and build adaptive capacity (green patterned boxes) to protect the buildings that house people, their livelihoods and key community services from projected climate change. HAZARDS Key Shift in wet/dry season +1.5°C avg. temperature predictability rise by 2055 Patterned fill EDA climate results aligned with the NSDP

More intense cyclone +30 cm rise in sea levels by Red outline Mitigation co-benefits activity with extreme winds 2055

Seasonal and extreme high-water levels EXPOSURE VULNERABILITY

Limited landmass, with a population spread GDP is dominated by Dependency on port imports SENSITIVITY – across 11 islands; several very low-lying IMPACT tourism sector (vulnerable)

Buildings located in coastal zones Loss of coastline and protective coastal habitats Low understanding of Ecosystems are exposed to (riparian zones), exposing physical assets climate data nutrients and sedimentation High exposure to Pacific cyclones Biological hazards including vector-borne High cost of living, low per Limited natural resources to Atoll geomorphology of several outer islands diseases and pest/fruit fly infestation capita income sustain local industry

Building sector accounts for 90% of damages due to cyclones (out of 3 asset classes)

Declining population (- 0.5% per year), peaked Total waste recycled + ADAPTIVE Increase people’s access to protection from CAPACITY in 1970s, as people migrate overseas Cat 3 or higher cyclones Real growth in the lowest (e.g. glass for construction) 20% of incomes Households and businesses Increase natural wetland area; restore coasts Awareness of climate threats separate waste at source and risk-reduction processes Properties use approved wastewater sanitation systems CLIMATE RISK Household access to sufficient and safe water Energy efficient appliances Loss of protective coastal habitat is increasing exposure of the building sector – the majority of which (77%) are residential. Cyclone damages to residential buildings increase living costs and undermine national sustainable development gains

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Annex 3. Evaluation report of previous small grant-award projects in the Cook Islands

# Citation Insights and lessons learned for the GCF EDA project Link to resource Adaptation Fund, 2019. Report of  People were given the possibility to write small grant applications in Maori (p. 8) the portfolio monitoring mission in 1 Initially the small grant amount was set; however, tailoring the award according to the https://tinyurl.com/y8wtyar5 Cook Islands. Adaptation Fund  specific nature of the initiative proved to be more effective (p. 8) Secretariat. The SRIC awarded 51 small grants totaling USD 420,000 (an average of USD 8,230 per grant) for climate and disaster risk assessment. Activities included: (p. 13)  Water o installation and upgrade of water tanks for further 6,249,000 M liters in the Pa Enua Tuiravakai, M., 2018. Final Project  Agriculture small grants Report: Strengthening the establish nursery to produce tree saplings for plantation along the coast lines 2 Resilience of our Islands and our o https://tinyurl.com/ycurgxrw native plants for traditional crafts, oils and medicines Communities to Climate Change o vegetable seedlings for farmers (SRIC - CC). Prepared for UNDP. o  Health small grants o awareness of health issues from water borne diseases and mosquito eradication, leading to no waterborne or vector borne disease reported since 2016 o distributed wheelchairs to disabled people in all 12 islands The SRIC project’s mid-term evaluation including of the small grants programme offers several insights for future small grant programmes:  Small grants programme at mid-term was progressing satisfactorily  Review and strengthen the programme M&E procedures (i.e. increase in M&E frequency, data systematization, evaluation) as well as the subsequent communication channels to beneficiaries regarding the progress of programme activities based on each M&E results (p. 12) Corno, G., 2017. Midterm o Conduct field assessment to determine the impact of the proposed climate change Evaluation Report: Strengthening adaptation activities (i.e. quantity of water available/ household during drought the period, predicted changes in vegetable production, changes in fishing catchment) on 3 https://tinyurl.com/ybaumkvk Resilience of our Islands and our community resilience and livelihoods (p. 12) Communities to Climate Change o Increase visibility of project demonstration sites (sign, brief explanation kits, boards (SRIC - CC). Prepared for UNDP at implementation sites) (p. 12) o Strengthening stakeholder involvement in current activities (for example, the farming project in Mangaia which are at a risk of suffering from poor stakeholder involvement during the initial critical phase, the water project in Atiu to ensure good maintenance of equipment) (p. 12)  KPI: Number of successfully completed capacity building projects funded (p. 36) o SMART Amendment: specify what ‘successfully’ entails. For example, a minimum of 80% financial delivery rate, a minimum scoring of 80% vs. the projects indicators,

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interviews and questionnaire to determine the level of capacity acquired (built) towards CCA and DRR planning.  In partnership with the Chamber of Commerce of the Cook Islands, FAO established a FAO Global Accelerated programme to provide grants that match recipients’ financial contribution, along with Agribusiness and Agro-industry technical assistance, coaching and mentoring. 4 Investment Technical Assistance  FAO facilitated the creation of eleven agribusinesses through a small matching grants Initiative facility and the strengthening of 24 agribusiness through mentoring and training in the Cook Islands  Energy Efficient Fridge Freezer and the Air conditioner replacement program Final report:  Recommended future interventions: (i) exploring policy instruments to address market https://tinyurl.com/yalbegrd ADB Promoting Energy Efficiency 5 failures and create an enabling environment for promoting EE implementation; and (ii) in the Pacific (PEEP) programme experimenting innovative financing mechanisms for catalyzing commercial investments in Completion report: EE (Technical completion, p. 4) https://tinyurl.com/yaxvq733  The Bank of the Cook Islands (BCI) provided financing for decentralized solar farms on homes and buildings from 2014 to 2016 (the electricity company has since placed a moratorium on the initiative until the electricity grid is stabilized). During the two-year 6 Solar farm subsidy Bank of the Cook Islands (BCI) period, BCI financed: o 10 customers for a 21kW gross meter connection (total value NZD 600,000) o 2 customers for a 42kW gross meter connection (total value NZD 287,000)  In April 2013, the Cook Islands Government approved the implementation of a 3-year Water Tank Subsidy Programme targeted at 2,000 eligible Rarotonga private dwelling. Through Parliament, a National Budget Appropriation from FY2011/12 to FY2015/16 has a total funding of $3 million from the Asian Development Bank loan to the Government Two water tank suppliers were accredited to supply 6,000 litre water tanks MFEM: 7 Water subsidy o o DCD processed applications, ICI conducted inspections, INTAFF assessed hardship https://tinyurl.com/y67lkmpb subsidy applications  A formal evaluation of the programme was not conducted; however, according to informal interviews, the programme was well received by the private sector because it was easily understood as a prescriptive approach

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Annex 4. Pre-feasibility study

(separate file)

Annex 5. Economic model with key assumptions

(separate file)

Annex 6. Results of environmental and social risk screening

(separate file)