with United Nations Environment Programme (UNEP) for El Salvador, Guatemala, Honduras, Nicaragua, and Dominican Republic 30 December 2020

Increasing the ambition of the Nationally Determined Contributions and climate financing in the Central América with UNEP for El Salvador, Guatemala, Honduras, Nicaragua, and Dominican Republic

November 2020 | Capacity Building and Strategic Frameworks

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Proposal title: Increasing the ambition of the NDCs and climate financing in the Central América.

El Salvador, Guatemala, Honduras, Nicaragua, and Country: Dominican Republic

Mr. Fernando Andrés López Larreynaga, Ministry of Environment and Natural Resources, El Salvador Mr. Mario Rojas, Ministry of Environment and Natural Resources, Guatemala. Mr. Elvis Yovanni Rodas Flores, Ministry of National designated authority: Energy, Natural Resources, Environment and Mining, Honduras. Mr. Uriel Pérez Acuña, Ministry of Finance and Public Credit, Nicaragua Mr. Angel Bourdierd, Ministry of Environment and Natural Resources, Dominican Republic.

Implementing Institution: UNEP

Date of first submission: 13 March 2020

Date of current submission / 26 December 2020 V.32 version number

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How to complete this document? This document should be completed by National Designated Authorities (NDA) or focal points with support from their Delivery Partners where relevant. Once completed, this document should be submitted to the GCF by the NDA or focal point via the online submission system, accessible through the Country Portal of the GCF website. Please be concise. If you need to include any additional information, please attach it to the proposal. If the Delivery Partner implementing the Readiness support is not a GCF Accredited Entity for project Funding Proposals, please complete the Financial Management Capacity Assessment (FMCA) questionnaire and submit it prior to or with this Readiness proposal. The FMCA is available for download at the Library page of the GCF website.

Where to get support? If you are not sure how to complete this document, or require support, please send an e-mail to [email protected]. You can also complete as much of this document as you can and then send it to [email protected], copying both the Readiness Delivery Partner and the relevant GCF Regional Desks. Please refer to the Country Profiles page of the GCF website to identify the relevant GCF Country Dialogue Specialist and Regional Advisor. We will get back to you within five (5) working days to acknowledge receipt of your submission and discuss the way forward.

Note: Environmental and Social Safeguards and Gender

Throughout this document, when answering questions and providing details, please make sure to pay special attention to environmental, social and gender issues, particularly to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult Annex IV of the Readiness Guidebook for more information.

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1. SUMMARY

Country name: El Salvador 1.1 Country submitting the proposal Name of institution representing NDA or Ministry of Environment and Natural Focal Point: Resources (MARN) Name of contact person: Mr. Fernando Andrés López Larreynaga

Contact person’s position: Minister Telephone number: +503 2132-9418 Email: [email protected]

Km. 5-1/2 Carretera a Santa Tecla, calle y Full office address: colonia Las Mercedes, Edificio MARN, San Salvador, El Salvador

Additional email addresses that need to be NA copied on correspondences:

Guatemala Country name:

Ministry of Environment and Natural Name of institution representing NDA or Focal Point: Resources

Mr. Mario Rojas Name of contact person:

Minister of Environment and Energy Contact person’s position:

+502 2423-0525 Telephone number:

[email protected] Email:

7 avenida 03-67 Zona 13, Guatemala Full office address: City, Guatemala

Additional email addresses that need to be copied on N/A correspondences:

Honduras Country name:

Ministry of Energy, Natural Resources, Name of institution representing NDA or Focal Point: Environment and Mining.

Mr. Elvis Yovanni Rodas Flores Name of contact person:

+504 2239 4296 Telephone number:

[email protected] Email:

Edificio Principal, 200 metros al Sur del Full office address: Estadio Nacional. Honduras

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Additional email addresses that need to be copied on N/A correspondences:

Nicaragua Country name:

Name of institution representing Ministry of Finance and Public Credit NDA or Focal Point:

Mr. Uriel Pérez Acuña Name of contact person:

Director of Public Credit Contact person’s position:

+505 22224956 Telephone number:

[email protected] Email:

Ministerio de Hacienda y Credito Publico,

Full office address: Avenida Bolivar Frente a la Asamblea Nacional. Managua, Nicaragua

Additional email addresses that need to be copied on N/A correspondences:

Dominican Republic Country name:

Ministry of Environment and Natural Name of institution representing NDA or Focal Point: Resources

Mr. Angel Bourdierd Name of contact person:

Ministry of Environment and Natural Contact person’s position: Resources

+1 809 567 4300 Telephone number:

[email protected] Email:

Ave. Cayetano Germosen, Esq. Ave.

Full office address: Gregorio Luperon, El Pedregal, Santo Domingo, Dominican Republic

Additional email addresses that need to be copied on [email protected] correspondences:

1.2 Date of initial 13 March 2020 submission

1.3 Last date of 26 December 2020 Version number V.32.0 resubmission

☐ National designated authority

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Accredited entity 1.4 Which institution ☐ will implement the ☒ Delivery partner Readiness and Preparatory Support project? Name of institution: UNEP Name of official: Kelly West Position: GCF Coordinator Telephone number: +254-20 76 23113 Email: [email protected] Full office address: UNEP, UN Avenue, Gigiri, Nairobi Kenya [email protected] Additional email addresses that [email protected] need to be copied on [email protected] correspondences: [email protected] [email protected]

1.5 Title of the “Increasing the ambition of the NDCs and climate financing in the Central Readiness support América” proposal

I. Capacity building 1.6 Type of Readiness ☒ support sought ☒ II. Strategic frameworks ☐ III. Adaptation planning ☐ IV. Pipeline development ☐ V. Knowledge sharing and learning1 This proposal will enhance the technical, institutional, and operational capacity of 1.7 Brief summary of the Governments of Nicaragua, Honduras, El Salvador, Dominican Republic, and the request Guatemala in meeting their NDCs ambitions through strengthened national and regional coordination, enabling conditions and stakeholder engagement.

The current ambition levels of national climate commitments are insufficient if global warming is to be limited at 2ºC and even more inadequate if a 1.5ºC scenario is desired1. Central America is one of the world’s most vulnerable regions to climate change. The region is already exposed to multiple climate-related hazards, such as tropical cyclones, floods, droughts, and heatwaves impacting on the local communities and ecosystems. In addition, the region’s energy needs and emissions are rising concurrently with population growth and socio-economic development. Comprehensive and ambitious actions aimed at long-term adaptation planning, disaster risk reduction and low carbon development need to be clearly defined at national and sub-national levels and aligned with Central America’s regional priorities.

There is increasing emphasis on regional collaboration on climate change, economic development and accelerating social, political, and economic interdependence amongst countries in the process. In this context, the climate ambitions of countries need to take into account the regional integration efforts and align their mechanisms and instruments (e.g., MRV systems) for implementing measurable and financeable climate goals. Furthermore, the countries also recognize the importance of NDCs to account for joint actions that align with the

1 UNEP. 2019. Emissions Gap Report 2019. Nairobi: UN Environment Programme.

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sub-region’s aspirations for the conservation of biodiversity and to achieve net zero emissions by 2050.

Among the specific needs identified by countries that this proposal aims to address include: (i) insufficient mechanisms for regional climate change coordination, (ii) inadequate institutional and legal capacities and frameworks for updating and implementing the NDCs, (iii) MRV and M&E systems that are not consistent with Enhanced Transparency Framework (ETF) requirements under the Paris Agreement, (iv) lack of financial and market-based instruments for the private sector to support the NDCs implementation, (v) lack of private sector portfolio of actions that support the NDCs, and (vi) lack of technical capacities for designing green resilient recovery plans in response to the COVID-19 crisis and coordinating actions with other priorities (NDCs, 2030 Agenda for Sustainable Development).

To address these gaps, the proposal will: (i) support the establishment of regional and national coordination mechanisms for NDC investment and participation; (ii) strengthen the institutional and legal capacity for updating and implementing NDCs, (iii) assess current MRV and M&E systems and provide recommendation to improve reporting at both national and regional levels, (iv) elaborate guidance engagement of the private sector and design market-based and financial instruments to leverage private sector investment, (v) identify private sector actions that support the NDCs, and (vi) elaborate guidance to incorporate relevant complementary SDGs, biodiversity and green recovery goals in the updated NDCs. UNEP- Regional Office for Latin America and the Caribbean is offering its regional experience and expertise specifically in the areas of climate transparency, NDC support and long-term planning.

USDUSDUSD 1.9 Implementation 1.8 Total requested 18 months amount and currency 1,249,986.00 period

1.10 Is this request a multiple-year strategic ☐ Yes Readiness implementation request? ☒ No

1.11 Complementarity and coherence of ☒ Yes existing readiness support ☐ No All five target countries (El Salvador, Guatemala, Honduras,

Nicaragua, and the Dominican Republic), have national GCF Readiness projects in progress. To ensure synergy and coordination as well as avoid any overlaps with ongoing projects, the proposed project implementation structure will ensure collaboration and coordination with existing readiness support presented in the list below as well as non–readiness under preparation.

Overall, the participating countries are seeking increased cooperation to strengthen capacities for improving information systems and institutional arrangements. This Readiness Proposal will seek to harmonize national actions and promote a regional dialogue to reinforce private sector actions for climate change across the region and ensure better sub-national participation in defining and implementing NDC actions. Thereby linking local, national, and regional actions.

The UN Environment Programme’s Office for Latin America and the Caribbean is well positioned to coordinate this

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proposal with NDAs and with other UN agencies and multilateral partners like NDC Partnership, World Bank, GIZ, UNDP, FAO among others to ensure alignment and complementarities while avoiding duplications. The UNEP is already well abreast of ongoing NDC support actions and projects by governments and development partners in the region.

With this information and the team’s continuous engagement with partners and follow-up on activities in other projects, UNEP will ensure complementarity between the activities in this proposal and those in other projects. Overall, the proposed project will enhance synergies between the different NDC support projects. In addition, the NDA in each of the countries will ensure that relevant country programming priorities align with the in-country activities of the grant. Strengthening the role of the Central American Commission for Environment and Development (CCAD) in coordinating and aligning the NDCs, and regional climate ambition/targets will enhance climate ambition and opportunities for larger investment projects.

Country Readiness funding Delivery Readiness Partner funding requested El Salvador NDA Strengthening Technical USD and Country Secretariat 300,000.00 Programming of External ($300,000) to be Financing submitted Guatemala Strengthening IUCN USD institutional 200,000.00 capacities of the Ministry of Environment and Natural Resources of Guatemala as the focal point for the GCF, and a broader group of stakeholders (US$371,300)

Preparation of NDA FAO with better information for financing proposals of the AFOLU sector in Guatemala (US$813,294) Honduras NDA Strengthening Min USD + Country Ambiente 200,000.00 Programming (US$300,000)

Direct Access Entity Support PWC (US$37,000)

Supporting strategic planning to engage UNEP with the GCF and comply with the national commitments under the Paris Agreement

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regarding the LULUCF sector (US$764,960)

Strengthening the understanding of PWC Social and Environmental Safeguards applicable to climate UNEP change programmes and proposals in Honduras (US$235,200)

Nicaragua Direct Access Entity PWC USD Support 200,000.00 (US$36,626.00)

Enhancing IDB Nicaragua’s climate governance framework to access GCF resources ($746,217)

Structured Dialogue FAO of the Indigenous Peoples of Latin America and the Caribbean ($150,764) Dominican NDA strengthening, Centro ($565,036) Republic country para el USD programming and Desarrollo 565,036 entity support for Agropecua Dominican Republic rio y through CEDAF Forestal – ($565,036). CEDAF

Adaptation Planning UNEP support for USD Dominican Republic 2´998,325 through UNEP

($2´998,325)

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2. SITUATION ANALYSIS

i. Climate vulnerability, INDC development process and status of implementation

The Central American countries are among those most adversely affected by extreme weather events and slow- onset events. Of 248 disaster events that occurred between 1930 and 2008, the ones with the most impact were hydrometeorological in nature (floods, tropical storms, landslides, and heavy rainfall), which represented about 85% of the total events. 9% corresponded to droughts, 4% to forest fires and 2% to extreme temperature (mostly lows). According to Germanwatch’s 2019 Global Climate Risk Index, Honduras has ranked second, Nicaragua 6th, the Dominican Republic was 12th, and El Salvador 16th in terms of their vulnerability to climate change. Furthermore, the region has also experienced relatively dry years associated with the El Niño Southern Oscillation (ENSO). In the last 60 years, approximately 10 cycles have been recorded, lasting between 12 and 36 months. Extreme droughts have major socio-economic impacts on the region, mainly along the Pacific Coast. Future climate projections indicate increased temperatures in the region for 2030, 2050 and 2100, oscillating between 1.0 and 1.5 °C, 1.5 and 2.1 °C, and 3.0 and 3.7 °C, respectively, with slight individual variations for each country2. These climate projections confirm with IPCC (2014) projections for the region, with a trend of gradual increases in temperature and decreases in precipitation. The likely impact includes adverse impacts to water resources (domestic, agriculture, hydroelectric power generation, hydrological cycles, etc.) resulting in water shortages.

The region’s average emissions in the energy sector in 2000 were 627 tons of CO2 -equivalent per GWH, but the range for the seven SICA countries – not including the Dominican Republic – spread from 298 to 857 tons of CO2 -equivalent. Projections indicate that GHG emissions are likely to increase by 48 metric tons of CO2 between 2005 and 2020, reaching to 120 metric tons if renewable energy and energy efficiency measures are not implemented. This represents a 67% increase3. By comparing this projection with a more favourable scenario, the application of renewable energy and energy efficiency measures can lead to a reduction of 28 metric tons of CO2 by 2020.

To respond to climate vulnerability and curve GHG emissions, the Central American countries initiated the development of their INDCs in 2014 in preparation for COP 21 in Paris. These intended contributions were prepared by national authorities in a rather short timeframe with limited guidance. For countries, migrating from the Kyoto protocol to the new approach under the Paris agreement, it was (and still is) a significant switch. The INDCs were a first attempt of establishing a national instrument for combating climate change through national commitments and they form the foundation for the current NDCs ratified in conjunction with the Paris Agreement. Central American countries are now preparing their revised NDCs and aiming to submit them to UNFCCC by the first semester of 2021.

NDCs goals in Central America focus on agriculture, forestry, and other land use (AFOLU4), and the energy and transportation sectors in view of their strong potential for reducing total net GHG emissions in the region. However, except for Costa Rica (a country not part of this proposal), where there is an official decarbonization plan for 2050 already available, no countries in the region have long-term decarbonization strategies. In view of the climate change vulnerability of Central American countries, the enhancement of adaptation goals is another important priority in the region to be considered for new NDCs.

Figure 1 provides a mapping of current priorities identified by the five countries (via the climate policies, INDCs and national communications to the UNFCCC), status of the updating of the NDCs, and how these link to the current proposal.

2 Gay, C., C. Conde, F. Estrada and B. Hernández. 2010. Climate Change Scenarios for Central America, the Economics of Climate Change in Central America. Mexico City, Mexico: Economic Commission for Latin America and the Caribbean (ECLAC). 3 CCAD. 2010. Regional Strategy on Climate Change. Antiguo Cuscatlán, El Salvador: Central American Integration System (SICA), Central American Commission on Environment and Development (CCAD) 4 For example, there is a regional initiative (“AFOLU 2040 Regional Initiative”) pledged to restore ten million hectares of degraded land and ecosystems in the SICA region by 2030, and to achieve regional carbon neutrality in the AFOLU sector by 2040 and its associated Agreement of Understanding between the Council of Ministers of Agriculture of Central America (CAC) and the Central American Commission for Environment and Development (CCAD).

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Figure 1. Mapping of national status of NDC updates, regional processes and technical needs and priorities of five countries in the Central America region.

The most important lessons learned drawn from the Central American INDCs can be summarized in the following three points:

1. A legal framework to empower states to act on climate change is required. Countries have therefore started to create the political framework enabling the governance of their NDCs.

2. Countries were focused on the compilation of information to build and understand their business-as- usual scenarios. In this regard, the involvement of other stakeholders beyond government was identified as key to analyse in greater detail potential mitigation scenarios for all economic sectors. Enhancing the participation of the private sector and civil society was identified as an urgent issue to address.

3. Most of the INDCs were focused on reducing GHG emissions and left adaptation goals aside. There is a lack of information concerning adaptation needs and, in this context, governments have started developing information on climate risks and vulnerability to identify their adaptation priorities.

Central American countries are redefining their adaptation and mitigation goals, focusing their efforts on enhancing NDCs governance, increasing participation and ambition, and addressing the current pandemic situation. Following an average of 3 years after having ratified their commitments under the Paris Agreement, the five participating countries have developed supportive instruments such as climate change policies and laws and increased their capacities to generate information on mitigation and adaptation. However, they are currently experiencing challenges in aligning the NDC implementation plans with the COVID recovery plans and have recognized the need to strengthen their legal and institutional capacities towards the accomplishment of their NDC targets as they have stated in their lasts National Communications to the UNFCCC.

ii. Regional policy integration and national commitments

Central American countries at the regional level have progressed efforts to strengthen regional policy integration, pursue regional economic development, and accelerate social, political, and economic interdependence amongst countries. The Environment Ministers of Central America have continuously reiterated the need for the Central American Integration System (SICA) to address climate change and air quality in issues as an integrated manner. In response to this call, the first Working Group of Focal Points of the Central American Commission on

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Environment and Development (CCAD) in 2019 met in Punta Cana, Dominican Republic5. The CCAD is the body of the SICA mandated by countries to respond to regional environmental agendas. Its main objective is to contribute to sustainable development in Central America, strengthening cooperation and integration arrangements for environmental management.

The ministerial meeting was organized by the Government of the Dominican Republic, CCAD, UN Environment, the Institute for Governance and Sustainable Development and the German Agency for International Cooperation and attended by CCAD focal points from SICA countries, including Belize, Costa Rica, Guatemala, Nicaragua, Panama, and the Dominican Republic. The meeting concluded the need for regional coordination and integrated actions on clean air and climate change mitigation of within the framework of the CCAD, in line with a national strategic and planning framework such as the NDCs. The meeting also called for the countries to develop relevant assessments, training, technical cooperation, management instruments and means of implementation (financing and alliances, communication)6. The regional processes under the SICA have charted a way to enhance regional level climate change ambitions and offer an opportunity to build on climate change coordination efforts led by CCAD in the region.

The work of revising NDC reflects the joint effort of the countries to adopt an integrated approach to adaptation and mitigation in the region. NDCs should be consistent, comparable, and transparent while reflecting the national circumstances. Establishing linkages, coherence, and effective cooperation from sub-national to the regional level in Central America is key to achieving impacts. The regional integration agenda offers an opportunity to strengthen systems for achieving collective climate action in the region and introducing finance and market-based instruments to support climate investments. Strengthening comparability and methodological consistency of NDCs between countries, improving data sources and enhancing management capacities will reduce uncertainty and ensure more transparency.

The involvement of public and private technical, scientific, and decision-making actors will ensure that NDCs are not just aspirational and that political leaders are aware of the risks, costs, benefits, and opportunities created by NDCs. Participation and engagement of all stakeholders (public and private sector, regional, national, and sub- national actors) across the NDC updating, implementation and reporting process, are crucial for reaching the mitigation and adaptation goals. Additionally, without a coordinated and harmonized approach for policy formulation and public participation, there is a risk that several policies compete or override each other.

While some regional cooperation efforts on climate change exist in the region, there is currently no regional effort to facilitate the engagement of the private sector and sub-national institutions in long-term climate change planning efforts. The cross-boundary nature of climate change in Central America demands collective efforts and coordination. The main official regional cooperation efforts on climate change are:

• Regional Strategy on Climate Change7, developed in 2010, reflects the commitment of the region for cooperation on adaptation and mitigation, and improving the resilience of the region. Within this strategy, joint programmes on institutional capacity building, extreme climate and risk management, dialogue among SICA, governments and other stakeholders, and the transition to environmentally sustainable economies that are low in GHG emissions and other policy commitments are prioritised.

• The Climate Smart Agriculture Strategy for the SICA Region 2018-2030 (EASAC in Spanish) was promoted by the Central American Agricultural Council. The EASAC vision is: “the actors of the agri- food sector of the SICA region manage climate variability and change appropriately, through the intensive use of information and knowledge, to minimize losses and damages and to have high levels of productivity that allow achieving regional food security and nutrition, through efficient, better climate- adapted, resilient, sustainable and inclusive agricultural production systems”.

• The Regional Initiative for Resilience Building in the SICA Region (AFOLU 2040) focuses on agriculture, forestry, and other land uses. The initiative seeks to reduce greenhouse gas emissions and combat climate change through the rehabilitation of degraded lands and a transition to low-carbon agriculture as well as forest conservation and restoration. AFOLU 2040 underlines the role of the private sector and its commitment to the review and implementation processes of the NDCs that contribute to the strengthening of the agricultural industry’s sustainable adaptation to climate change.

5 CCAC Secretariat. 2019. Central America Ministerial Discussion. Paris, France: Climate and Clean Air Coalition (CCAC) Secretariat. Available: https://ccacoalition.org/en/event/central-america-ministerial-discussion 6 CCAC Secretariat. 2019. Central American countries advance the integration of climate and air quality at the regional level. Paris, France: Climate and Clean Air Coalition (CCAC) Secretariat. Available: https://ccacoalition.org/en/news/central-american-countries-advance-integration-climate-and-air-quality-regional-level 7 Available: http://81.47.175.201/flagship/attachments/regionalstrategyelsalvador.pdf

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• Other instruments linked to EASAC include the Regional Environmental Strategy Framework (ERAM) 2015-2022 intending to facilitate and promote the required actions for environmental sustainability of the region, under the scope of the three conventions: United Nations Convention for Climate Change (UNFCCC), Convention on Biological Diversity (CBD) and United Nations Convention to Combat Desertification (UNCCD) and the Regional Strategy on Climate Change (ERCC) 2018-2022 whose objective is ”to contribute to preventing and reducing the negative impacts of climate change by increasing resilience and the capacity for adaptation in order to reduce human, social, ecological and economic vulnerabilities, build capacity to influence and reduce climatic threats and voluntarily contribute to reducing GHG emissions, as permitted by national circumstances.”

This Readiness proposal seeks to further enhance regional cooperation for climate change action for strategies like EASAC to continue and flourish for other sectors. The added value of this proposal is based on its more integrated and intersectoral approach through strengthening regional cooperation for the NDCs. It will promote a systemic exchange and synergies between nations for increasing NDC ambitions and consolidating interlinkages between the NDCs, 2030 goals, and recovery packages. To do so, the activities will be conducted in cooperation with the Central American Commission for Environment and Development (CCAD), the environmental arm of the Central American Integration System (SICA). This will facilitate coordination, exchange, and harmonization among different readiness support initiatives and other NDC support projects in the region.

The CCAD was established with the mission to develop a regional regime for environmental cooperation and integration to contribute to the improvement of the quality of life of the populations of its Member States (Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic). CCAD ensures regional integration of environmental and development policies. CCAD’s scope of work is mainstreaming sustainable development in government policies, programs and short, medium- and long-term actions at local, national, and regional levels. This proposal will facilitate the necessary peer-to-peer exchange among different economic sectors and groups of interest in the region as well as subnational governments coordination in each implementing country thereby better linking sub-national, national, and regional climate actions.

At the national level, the Dominican Republic, Honduras, Guatemala, and El Salvador had their INDCs ratified and established as NDCs in 2017, while Nicaragua presented its NDC in September 2018. In their NDCs, all five countries highlighted the critical importance of adaptation and need for reducing the vulnerability of their peoples. Below is a brief summary of the status of the NDCs in each of the participating countries:

Nicaragua

NDC perspective: Nicaragua is committed to deliver an updated version of its NDC in 2021 while working on its COVID-19 recovery package.

Ongoing NDC actions: In the context of the current pandemic crisis, the government is aiming to better integrate long-term considerations. The NDC partnership is supporting the development of urban adaptation projects and renewable energy deployment in the Country. Nicaragua also developed Future Mitigation Scenarios and Climate Scenarios and established a solid Portfolio of Projects and Programs on Forest and Climate Change.

NDC process priorities: The country has identified three key priorities i) improving ambition according to common but differentiated responsibilities; ii) strengthening Metrics, Monitoring, Reporting and Verification mechanisms, and iii) enhancing consultation and participation of strategic economic sectors. In this context, the country is seeking to increase cooperation, peer exchanges and transfers of knowledge with countries in the region. The country’s third National Communication (2018) underlines the need to strengthen institutions to face climate change challenges and strengthen dialogues and alliances with the private sector.

Among the sectorial priorities, one of the most important national priorities is to Increase Agricultural Production and create an Emission Reduction Program for its Caribbean Coast (PRE9). Even though the country has been working on a broad portfolio of initiatives for AFOLU sector8, there is still needed to strengthen climate action in this front with the involvement of different stakeholders to foster climate action and achieve NDC targets.

Key national tools and instruments to take into account: • The National Human Development Plan, which define the guidelines for resilient development. • The National Policy on Mitigation and Adaptation as well as the Climate Change Response System, which are the core instruments for climate change management in Nicaragua. Nicaragua submitted its

8 GEF Portfolio (5, 6, 7), Impact programs (AFOLU) with GEF, GCF bioclimatic project scheduled for the board meeting in October, PRE-FCPF, SAP REDD+ AND NDC Partnership. In this way, the country strategy is prepared to implement climate actions and mobilize financial resources in a very complex moment. With these priorities in mind, the country would directly and clearly benefit from the regional proposal conceptualized in this document

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fourth National Communication on Climate Change and GHG Inventories and is preparing its First Biannual Report. • The National Strategy to Reduce Deforestation and Forest Degradation. • The pandemic recovery measures which are focused on supporting credit for households, reducing the central bank interest rate, and making credit and liquidity standards more flexible. • Nicaragua is also planning the development of its National Adaptation Plan with support from GCF (NAP readiness proposal currently being formulated).

This diversity of instruments with complementary objectives need to align and support regional climate and health responses and do require strong involvement of the private sector for their implementation.

Honduras

NDC perspective: Honduras is committed to delivering an updated version of its NDC in 2021 while working on its COVID-19 recovery package. The country has developed a roadmap for the NDC review which includes actions for revising and updating projections, and for strengthening compliance measures of the NDC. The country is also aiming to initiate the development of its Long-Term Strategy (LTS) in the coming months based on the information being collected for updating its NDC.

Ongoing NDC actions: In April 2018, Honduras became the first NDC Partnership member country to develop and finalize a Partnership Plan for its NDC implementation. An NDC Investment Plan will be developed with support from the NDC Partnership for the implementation of key opportunities for low-carbon technologies and resilient infrastructure in prioritized sectors. The World Bank is supporting the country's NDC revision specifically in the LULUCF sector in the framework of the UNAMBIENTE Project. UNDP supported the update of the NDC in the framework of the Climate Promise Initiative by generating information for the mitigation component of the NDC. In 2016, the country conducted a national transparency analysis with the support from the CTCN.

NDC process priorities: As evidenced above, Honduras is receiving support for updating its NDC for the mitigation component and mainly in the LULUCF sector. There is a lack of support for the engagement of subnational governments and the private sector in other sectors, as well as for the inclusion of adaptation goals in the NDC. And now the NDC also needs to support pandemic recovery actions. In the Honduras’s Third National Communication (2019), the country underlines the need for strengthening institutional frameworks for climate change and increase capacities for the management of information systems.

Key national tools and instruments to take into account: • National Climate Change Strategy • National Mitigation Plan • National Adaptation Plan • ‘Agenda Climática de Honduras’: Structure for a monitoring system • National mitigation impact and cost-benefit study • Review analysis of Honduran NDC and the SDGs. • Timeline for the presentation of the information under the Paris agreement. • Analysis of barriers to analyse prioritized measures in strategic sectors like agriculture, energy, and LULUCF. • National Environmental Information System (SINIA) • National Observatory of Change Climate for Sustainable Development (ONCCDS) • National Forest Monitoring System

El Salvador

NDC perspective: El Salvador is committed to delivering an updated version of its NDCs in 2021 while working on its COVID-19 recovery package. El Salvador is developing a strategy for mainstreaming climate change in its public policies, plans, and programs. This strategy will define the framework for updating the country’s future NDCs.

Ongoing NDC actions: El Salvador is working on defining its long-term goals for mitigating emissions from transport and industrial processes sectors. Transport, industrial processes and AFOLU contribute about 90% of the GHG emissions in the country. El Salvador is receiving support for the AFOLU and transport sectors and requires complementary support for updating the NDC and harmonizing measures, indicators, and actions in other sectors.

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NDC process priorities: In its national REDD+ strategy, El Salvador prioritized MRV for the reduction of emissions from deforestation and degradation (REDD) and the conservation, management, and improvement of its carbon stocks. This MRV system allows the country to compile information for adaptation and mitigation as well as analysing flows for results-based financing. El Salvador is improving technical capacities for MRV, more especially related to institutional arrangements, indicators development and the governance of NDCs in the AFOLU sector. Other priorities have been identified, such as the conservation of water resources and the development of renewable energy and energy efficiency projects. The country’s third National Communication (2018) underlines the need to analyse financial needs for climate change and to strengthen climate resilience.

Key national tools and instruments to take into account: • National Climate Change Plan • “MRV System to advance in the implementation of the Nationally Determined Contribution of El Salvador”: initiative for the compilation of GHG emissions data and inventories. • National Energy Policy 2020-2050 • El Salvador’s pandemic recovery package under development and focusing on supporting access to credit for households and companies, increasing health sector investments and making credit and liquidity standards more flexible.

Dominican Republic

NDC perspective: The Dominican Republic is committed with a plan to have an updated version of the NDC by 2021 while working in its COVID-19 recovery package. The Dominican Republic will update its NDCs in line with its long-term mitigation commitments (2050).

Ongoing NDC actions: Currently, AFD and IDB through the NDC Partnership are supporting the Dominican Republic by providing technical recommendations for its long-term strategy. In addition, the NDC partnership is supporting the country for the analysis of the national context, the identification of alternative financing options and the review of national targets. Within the framework of the Initiative for Climate Action Transparency (ICAT), the country is preparing the legal framework for a National MRV System. The project focuses on the preparation of a draft Presidential Decree for the establishment of the MRV system, and a roadmap for the identification of institutions that could potentially assume the responsibilities within the proposed system.

NDC process priorities: The country has identified several priorities in their climate action strategies: (i) strengthening, in coordination with local governments, systems for prevention, reduction and control of the effects of climate change and their impacts; (ii) promoting the development and transfer of technology that contribute to the adaptation of the effects of climate change; (iii) promoting decarbonization strategies through energy efficiency and renewable production; (iv) strengthening capacities for international negotiations on climate change; and, 5) addressing health and climate change issues in coordination with national and local authorities. In addition, the need for a digital tool/platform to manage climate change information is evident. In its Third National Communication (2017), Dominican Republic underlines needs to (i) increase financing for mitigation and adaptation actions, (ii) establish a participation mechanism among all sectors for the definition and implementation of climate change mitigation and adaptation plans, and (iii) foster coherence and synergies between climate policies and development policies.

Key national tools and instruments to take into account: • National Adaptation Plan • Nationally Appropriate Mitigation Actions (NAMAs) • Economic Development Plan Compatible with Climate Change (DECCC) • The legal framework under development for reducing emissions in the cement and waste sectors

Guatemala

NDC perspective: The country has developed several environmental policies and a national climate change law to deliver an updated version of its NDCs while working on its COVID-19 recovery package.

Ongoing NDC actions: Currently, NDC Partnership support is focused on adaptation and AFOLU. The country intends to implement carbon pricing or other international market mechanism to enhance climate action. Guatemala has an NDC roadmap which includes establishing NDCs updating processes and increasing capacities and financing for NDC’s implementation. the government is developing a National Information System National of Climate Change and a National Climate Change Action Plan according to Art. 9 of Guatemala’s Law on Climate Change,

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NDC process priorities: Guatemala is committed with the implementation of its NDC, as part of the priorities identified to achieve NDC targets emphasizes the need for international support (including technology transfer, financing, and capacity building), and also highlight AFOLU as the main priority sector. In terms of immediate priorities, the country seeks to increase the ambition of its NDC and strengthen climate governance for implementation. The country’s Second National Communication underlines the need to strengthen the capacities of the national government, local governments, and civil society to improve the country’s climate finance data and information. One of the main issues highlighted in the report is the lack of systematized databases with basic information to support planning and the need for strengthening public-private partnerships for climate change actions.

Key national tools and instruments to take into account: • Mitigation plans for Transport and LULUCF sectors • Forest Management policy • National Energy Plan - which aims to achieve 80% of renewable energy by 2030 • PROBOSQUE - a voluntary incentive compensation program for private companies to reduce their GHG emissions • Policy on Integrated Management of Coastal Zones in the Pacific and Atlantic coasts • National crop monitoring system for agricultural activities • National Strategy on Biological Diversity (2012-2022) • National Policy on Disaster Risk Management.

iii. Barriers and rationale for adopting a regional approach

To address their vulnerability to climate change, the five participating countries are enhancing and updating their NDCs to include more ambitious targets whilst having to respond to the pandemic crisis. Countries in the region are still in the process of determining concrete actions for their updated NDCs.

Ideally, new NDCs should be consistent with long-term strategies to achieve net-zero emissions, zero loss of biodiversity, and high adaptative capacity and resilience by 2050. Now, NDCs also need to be consistent with recovery packages and regional priorities. In the coming months, countries must come up with clear plans for achieving their NDCs for 2030 and are invited to present long-term strategies up to 2050 as per IPCC recommendations.

The following types of barriers have been identified:

1. Regional stakeholder integration and coordination on NDCs 2. National institutional capacities 3. Information, knowledge, and awareness of NDC processes 4. Multi stakeholder participation and engagement in the NDC 5. Finance for NDC implementation

The complementarity between the identified gaps and barriers and proposed approaches and expected results are outlined in Table 1 below.

Table 1. Gaps, barriers and proposed regional and national approaches Type Gaps and barriers How regional and national approaches and expected results will address gaps and barriers.

Regional There is an overall lack of Regional: The project will establish a regional coordination mechanism for stakeholder coordination between national climate change. This will optimize synergies among the five countries to integration and and sub-national levels, and interact on climate ambitions and actions and harmonized data coordination on even more so, at the regional management [Output 1.1.1]. NDCs level for climate change.

National Lack of institutional and legal National and sub-national: This barrier will be addressed through by institutional capacities for updating and strengthening the institutional and legal frameworks for coordinated climate capacities implementing NDCs action and by increasing the technical capacities of national actors and structures [Output 1.3.1].

Information, National MRV and M&E Regional: Integration of information level is addressed by specific knowledge, and reporting are not consistent assessment and recommendations that allow the regional coordination awareness of with the Enhance body (CCAD) to adopt actions to enhance MRV consistency and related NDC processes Transparency Framework decision-making processes. [Output 2.2.3]. requirements under the Paris Agreement. National and sub-national: This barrier will be addressed through a diagnosis and recommendations are developed and deployed to ensure the

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There is a lack of regional consistency of MRV and M&E systems reports with the ETF, and their information articulation or articulation with, biodiversity, ecosystems, social impacts, and COVID-19 integration processes. recovery goals. [Output 2.2.2]. In addition, there is a lack of knowledge on ways to Additionally, the project conduct assessments and develop guidance integrate global goals and documents (one per country) for linking climate goals, SDGs, biodiversity, targets of SDGs and and green recovery goals in the updated NDCs. National level workshops frameworks into NDCs. will deepen country-specific stakeholder knowledge about incorporating relevant complementary SDGs, biodiversity, and green recovery goals in their NDCs [Output 2.2.1]

Multi Limited in-country and Regional: The project will deploy a dedicated regional level digital platform stakeholder regional multi-stakeholder that will link investment information from the private sector with NDCs. participation engagement (with an [Output 2.4.3] and engagement emphasis on the private sector in the NDC and sub-national National and sub-national: The project will develop national and regional stakeholders) in the updating guidance documents providing a clear procedure for active participation and implementation of the and involvement of strategic subnational stakeholders and private NDCs. participation platform is developed in the region. [Output 2.4.3]

This situation is a barrier for the accomplishment of the mitigation and adaptation targets, as the stakeholders do not know and/or appropriate the compromises stablished in the NDC.

Finance for NDC There is a lack of financial and Regional: The project will deploy a dedicated regional level digital platform implementation market-based instruments that will link investment information from the private sector with NDCs. oriented to private sector to [Output 2.4.3] support the NDCs implementation. National: At the regional and national levels, the project will design market- The region needs to establish based and financial instruments to leverage private sector engagement and a method to effectively investment for NDCs. [Output 2.4.1] mobilize climate finance, including through the private This barrier will be addressed by developing country level portfolios of sector to adequately address climate action partnerships and investments, considering both public and climate action/needs. private financial flows, and potential for additional financial instruments in the region [Output 2.4.2] Additionally, there is a lack of private sector portfolio of climate change actions that contribute to the NDCs

The three first areas emphasize the need to encourage leadership models. This approach incentivizes the formulation of responsibilities to make clear and measurable commitments in different areas of society. These approaches are critical pieces to ensure the implementation of NDCs. Many examples from around the world could be considered, where countries have announced a series of regional objectives for climate, energy, and environment actions to generate momentum and to implement international agreements and protocols. Thus, integration and common principles and responsibilities could create trust and momentum in the region. Additionally, an overarching trend noted in the regions is the need to establish monitoring, reporting and verification (MRV) and monitoring and evaluation systems for mitigation and adaptation measures in the enhanced NDCs. Closely related to the updated NDC targets are how the GHG inventories data will contribute to enhance the design of a more robust and integrated MRV system, including technical support and information on emissions, mitigation actions and support9.

Once the goals, agreements and commitments are in place it is urgent to communicate them clearly and transparently, with a compelling and understandable narrative, which also notes the priorities and values of a wide range of stakeholders engaged. Likewise, it must be ensured that there are spaces for participation and diverse opinions informing the decision-making processes, as well as participation and engagement of the private sector to ensure the capacity to reach the NDC goals. These elements are related with fourth and fifth approaches listed above.

To address the barriers, the proposed grant will facilitate active participation and effective organization of governments, citizens, and investors to harmonize climate action at all levels within countries and in the region.

9 UNFCCC, UNEP, and NDC-P. 2020. Survey on NDCs Latin America 2020. Bonn, Germany: UN Climate Secretariat, UN Environment Programme and NDC Partnership. Available: https://unfccc.int/sites/default/files/resource/RCCPanamaSurveyOnNDC_13Octubre2020.pdf

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The proposal structure has been designed to focus on the consolidation of regional transformational approaches and aspirations in Central American countries towards decarbonization and reduction of biodiversity loss in 2050. iv. Description of the proposal on a common regional framework

For the five participating countries it is critical to develop mechanisms and promote active dialogues to: (i) increase the ambition of climate goals and (ii) use NDCs as an instrument to facilitate coordinated efforts from sub-national to regional level and the engagement private stakeholders in climate action. This proposal is seeking to support countries in the consolidation of key messages, inform decision making and generate concrete actions towards reaching net peak of emissions before 2030 and net-zero emissions by 2050.

New NDCs in the five countries should be made accessible for private sector players and civil society. Sub- national governments, private sector, academia, and civil society are important actors to enrich and strengthen the NDCs. NDCs should be monitored and regularly updated to allow for revisions, adjustments and improvements as a country's circumstances change, as new technologies come into play, indicators evolve, and better information is available. The review of national climate goals must take into account the regional context and related opportunities.

The improvement of national MRV and M&E systems, as well as the integration of information at the regional level, will help countries in joining forces for transforming their societies into resilient and low carbon societies by 2050. If updating and accounting processes are harmonized it will be possible to have a clearer view of the potential for sustainable and inclusive growth using realistic indicators and low uncertainty data. Ambitious regional climate action can provide a wide range of economic and development benefits, which include strong growth of value chains, new job opportunities and better health outcomes across borders.

This proposal will provide the foundations required to establish coordination and participation platforms for planning and updating of NDCs based on:

1. Regional integration [Activities 1.1.1.a, 1.1.1.b, 1.1.1.c] 2. Strengthening institutional arrangements for public institutions, private organizations, and civil society [1.3.1.a] 3. Information (MRV and M&E) improvement and integration [Activities 2.2.2a, 2.2.2.b, and 2.4.3.a] 4. Stakeholder participation and engagement (2.4.3.b, 2.4.3.c and 2.4.3.d) 5. Finance for NDC implementation. [2.4.1.a, 2.4.1.b, 2.4.1.c, and 2.4.2.c]

Deliverables described will provide common protocols and principles in governance, communication, participation, and data management that will help the region reducing uncertainty and increasing trust for public and private investment. One of the biggest challenges when tackling NDCs is the uncertainty in the planning processes. NDCs have a medium-time horizon and economic decisions will inevitably have some impact on their success. Coordination is indispensable. This proposal will also design market-based and financial instruments to leverage private sector engagement and investment for NDCs. It will develop a targeted plan that provides information on opportunities, for private sector engagement in market-based and financial mechanisms for NDC implementation.

Countries sharing ecosystems and value chains are interested in a regional vision with compatible and measurable goals to implement higher impact solutions together. The Central American region could be a climate leader demonstrating the importance of having a holistic policy approach achievable through solutions that consider all dimensions of sustainable development and cooperative approaches among countries.

In response to ministerial priorities indicated through the SICA (described above), this regional readiness grant will facilitate and strengthen regional climate coordination and integration efforts. In the process, private sector will be engaged in planning of climate actions that are being reflected in NDCs processes underway the region. The regional approach to the grant will further assist the five Central American countries to address common capacity-related challenges in the NDCs, ensure the alignment of NDCs with global policy frameworks and political agendas of the region, and develop platforms and regional coordination mechanisms needed for the implementation of NDCs. The grant will facilitate linkages climate goals, SDGs, biodiversity goals and COVID-19 recovery measures in the updated NDCs and support countries to adopt demand-driven investment portfolios for financing of their NDCs. The regional approach aims to ensure methodological consistency and comparability between the NDCs and based on science, while responding to the interests of the region in working together on integrated regional plans to address climate change.

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UNEP’s comparative advantage lies in its global mandate to support governments in addressing climate and environmental challenges. The organization brings over 25 years of experience in addressing climate change issues, and a long term, systemic, and comprehensive approach to climate change mitigation and adaptation cross-cutting to other environmental concerns of countries such as pollution, natural resource depletion and ecosystem degradation. UNEP also focuses on linking the science of climate change to policy in a manner that makes it distinctive.

UNEP’s experience in the region indicates an urgent need to enhance ambition in the NDCS through clear decisions in terms of setting measurable climate goals that are consistent with the pandemic and climate crisis and, national circumstances. NDCs implementation and updating mechanism are also identified as a priority. There is also a need for a long-term perspective that has its emphasis on three fundamental elements: peak emissions before 2030, the neutrality of emissions in 2050 and the enhancement of concrete actions in adaptation, taking advantage of the role played by ecosystems and nature. Comparable and regional climate actions, as well as their indicators, should contribute to the fulfilment and monitoring of SDG targets, in biodiversity, forests and energy regionally. Countries sharing ecosystems and value chains are interested in a regional vision of compatible and measurable goals to implement solutions of a greater range of implementation, mainly from a community and nature-based approach. The Central American region could be a climate leader demonstrating the importance of having a holistic policy approach achievable through solutions that consider all dimensions of sustainable development and cooperative approaches among countries. In this sense, UNEP Regional Office for Latin America and the Caribbean as a regional platform is enhancing peer exchanges and is collecting lessons learned and promoting best practices in these aspects in the region.

UNEP is uniquely placed to work with the participating countries and GCF to ensure the protection and sustainable use of the environment and the transition to a green economy. The mandate of the GCF resonates at the core of UNEP’s purpose, seeking to foster with the GCF a shared vision towards achieving these goals. The UNEP-GCF partnership will, therefore, catalyse and sustain green solutions to mitigating and adapting to climate change.

Under the Framework Readiness and Preparation Support Grant Agreement signed between UNEP and the GCF in October 2016 and amended December in 2017, UNEP engages with countries that have selected it as a Delivery Partner for GCF-funded climate readiness activities including classic readiness, NAPs, REDD+ readiness projects and proposals, PPFs etc. UNEP provides a wider range of services to countries seeking its support as Delivery Partner in line with the newly adopted Readiness and Preparatory Support Programme: Strategy for 2019-2021 and UNEP Program of Work for climate change. Since September 2019, UNEP has supported 30 countries through 35 readiness support proposals which translates into a readiness portfolio of USD 36 million.

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3. LOGICAL FRAMEWORK

Outcomes Baseline Targets Outputs Activities Deliverables (brief description) Outcome 1.1 There are no A regional Output 1.1.1: Activity 1.1.1.a Deliverable 1.1.1a Country NDAs or focal mechanisms for governance Regional Assess existing institutional arrangements and develop Five validated national NDC stakeholder engagement plans points and the climate change mechanism at the institutional five national NDC stakeholder engagement plans (one for stakeholder coordination and participation (one per country network/ systems that coordination to CCAD is mechanism for per country) aimed at ensuring the participation of key for a total of five plans). enable them to fulfil update and developed and NDC coordination national sectors and private sector at country level. The their roles, implement NDCs implemented to and decision documents will guide a process to improve the responsibilities and in Central increase the making as part of participation of interested parties in the development, policy requirements America. Thus far, ambition of the CCAD updating and implementation of NDCs within each are operational and five countries in Central American established. country. effective Central América countries’ NDCs. are updating their Activity 1.1.1.b Deliverable 1.1.1.b NDCs in 2020 Develop a regional institutional mechanism for regional Document with the design of the regional institutional individually, with NDC coordination aimed at ensuring the participation of mechanism, including structure, functions and workplan. limited regional key national sectors and private sector from Countries in coordination and the region and its workplan. support. Activity 1.1.1.c Deliverable 1.1.1.c Identify and prioritize national stakeholders from five One inception meeting report specifying the regional countries and conduct a regional inception meeting and a institutional structure and participating priority sectors and regional workshop of the Regional governance private sector agencies.

mechanism

Description: This activity will engage key public and private sector champions in NDC implementation. Five NDC stakeholder coordination and participation plans (one per country) will be developed. Their objective will be to identify existing roles and responsibilities for the implementation of NDCs in each country. To coordinate stakeholders at the regional level, a regional institutional coordination and engagement mechanism will be developed. Representation in the regional coordination mechanism will include stakeholders from key public and private sector champions in NDC implementation from the five countries. A regional inception meeting will be held validating the regional institutional structure. With the present COVID-19 pandemic situation, the NDAs will decide on the format of the regional workshop (1.5 days workshops for 40 people to be to be carried virtually or physically). The workshop will be inclusive of women and other gender-diverse populations. Finally, a regional workshop report will be produced, including a list of participants and information materials. The Central American Commission for environment and development (CCAD) as the lead authority on the NDC regional coordination mechanism and implementation will lead on the regional activities. The CCAD is part of the Central American Integration System (SICA) and they will support the regional discussion on NDC governance, implementation, and the linkages to national NDC processes. Considering that this mechanism would serve as coordination and decision-making for climate change management among national governments in the region, CCAD will continue operating the regional NDC coordination mechanism after the inception meeting, no further external support is expected. Outcome 1.3 Output 1.3.1: Activity 1.3.1.a Deliverable 1.3.1.a

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Outcomes Baseline Targets Outputs Activities Deliverables (brief description) Relevant country Lack of National Institutional and Review the existing institutional and legal frameworks Five validated review reports (one per country) on national stakeholders (which institutional and institutional and legal capacity for and regulations in five countries and propose a roadmap institutional and legal frameworks and regulations for updating may include executing legal capacities legal frameworks updating and (one per country) to strengthen their institutional and legal and implementing the NDCs and a roadmap (one per country) entities, civil society and frameworks are reviewed and implementing the frameworks for NDC updating and implementation. to strengthen their institutional and legal frameworks for NDC organizations and for updating and strengthened. NDC process is updating and implementation private sector) have implementing the strengthened at the established adequate NDCs national level. Description: Five reports (one per country) including the review of existing institutional arrangements and regulations for capacity, systems, updating and implementing NDCs will be prepared for each country, and a roadmap of each country to strengthen their and networks to institutional and legal frameworks. support the planning, programming, and Activity 1.3.1.b Deliverable 1.3.1.b implementation of Support and advice national governments on Report on the advances of the five countries on the roadmap GCF-funded activities. strengthening their legal and institutional frameworks for strengthening their institutional and legal framework for according to the roadmap of the deliverable 1.3.1.a updating and implementing NDCs. Description: The consultant will support and advise the stakeholders involved in updating and implementing NDCs on the implementation of activities for strengthening their institutional and legal instruments according to the roadmaps proposed as part of the deliverable 1.3.1.a.

Outcome 2.2 None of the five The five updated Output 2.2.1: Activity 2.2.1. a Deliverable 2.2.1.a GCF recipient NDCs in the NDCs clearly Guidance for Assess the NDC linkages with other global environmental One guidance document per country that considers NDC countries have region explicitly explain the incorporating goals and develop guidance documents (one per country) linkages with SDGs, biodiversity, and green recovery goals in developed or draw linkages with linkages to relevant that provides recommendations for incorporating relevant the updated NDCs. enhanced strategic 2030 agenda, climate goals of complementary complementary SDGs, biodiversity, and green recovery frameworks to SDGs, biodiversity the SDGs, 2030 SDGs, biodiversity, goals in the updated NDCs. address policy gaps, and COVID-19 agenda, and green recovery improve sectoral recovery goals biodiversity goals goals in the Description: The guidance document will provide information to countries on ways to incorporate the SDGs, biodiversity expertise, and and targets. and COVID-19 updated NDCs is goals, the 2030 agenda and green recovery in response to the COVID pandemic (one per country). The protocol will review enhance enabling Furthermore, MRV recovery provided. the country-level emissions, emissions reductions potential, risk management and adaptation measures in the context of the environments for GCF and M&E systems measures. COVID-19 pandemic. This protocol will further identify linkages with the LEDS, NAPs, vulnerability analysis and other climate programming in low- in five countries change instruments. emission investment. were prioritized for MRV and M&E updating however systems are Activity 2.2.1.b Deliverable 2.2.1.b they are assessed for their Design and conduct five national workshops (one per Five national workshop reports (one per country), including inconsistent with consistency with country) focusing on the integration of SDGs, 2030 lists of participants, information materials, analysis of pre- and the ETF the ETF. agenda, biodiversity goals and COVID-19 recovery post-workshop participant surveys about stakeholder (Enhanced measures with the updated NDCs climate change. knowledge about incorporating relevant complementary Transparency SDGs, biodiversity, and green recovery goals in their updated Framework) Mechanisms are NDCs. The national NDC in place assess Description: The workshops will deepen country-specific stakeholder knowledge about incorporating relevant complementary information is not the national NDC SDGs, biodiversity, and green recovery goals in their updated NDCs (1.5 days workshop for 40 people). The workshop will integrated at a information and include inputs from a diverse range of stakeholders, women, and other gender-diverse populations in the NDC update regional level to generate process. With the present situation of the COVID-19 pandemic, the NDA will decide on the format of the consultation inform decision recommendations workshops (either virtual or physical). As part of the preparation, development and reporting of the workshops, an analysis

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Outcomes Baseline Targets Outputs Activities Deliverables (brief description) making processes for the integration of pre- and post-workshop participant surveys about stakeholder knowledge about incorporating relevant complementary at CCAD and at and analysis at SDGs, biodiversity, and green recovery goals in their updated NDCs. the regional and regional level to Output 2.2.2: Activity 2.2.2.a Deliverable 2.2.2.a national levels, support decision- Current MRV and Assess countries' MRV (mitigation) and M&E (adaptation) Assessment and recommendations report of the national there is limited making M&E systems are systems requirements in light of the new ETF status of the MRV (mitigation) and M&E (adaptation) reporting coordination and processes. assessed in line requirements, other political agendas and economic consistency in the light of the new ETF requirements, other joint initiatives with ETF of the recovery and provide recommendations to strengthen policy frameworks, regional political agendas and economic between national Paris Agreement. functional capacity of MRV (mitigation) and M&E recovery governments, (adaptation) systems. strengthen their functional capacity. private sector, and local governments Description: This activity will involve assessing current MRV and M&E systems and arrangements for the five countries, in the NDC providing recommendation about data gaps and needs to improve the consistency of MRV and M&E systems in line with the processes. revised NDCs and ETF requirements.

Output 2.2.3: Activity 2.2.3.a Deliverable 2.2.3 a Integration of Conduct a regional-level assessment and generate a Regional assessment and recommendations report on regional recommendations report to integrate regional information integration regional information and support analysis and information, support and support analysis and decision-making processes at decision-making processes at CCAD. systems with CCAD. decision-making processes at CCAD Description: This activity will conduct a regional level assessment, using activity and deliverable 2.2.2.a as input, to provide is assessed and recommendations to strengthen the regional coordination mechanism and for national governments to integrate regional enhanced. information and support analysis and decision-making processes at CCAD.

Activity 2.2.3.b Deliverable 2.2.3.b Conduct five national workshops on regional level Five validated workshop reports including a list of participants assessment and generate a recommendation report for and materials. each country to integrate regional information.

Description: A series of five workshops will be conducted to collect information about the national information systems and data management for the regional level assessment and consult countries' views and inputs about the integration of NDC information (1.5 days workshops for 40 people). The workshop will include inputs from a diverse range of stakeholders, women, and other gender-diverse populations in the NDC update process. With the present situation of the COVID-19 pandemic, the NDA will decide on the format of the consultation workshops (either virtual or physical). Outcome 2.4 The five countries The updated Output 2.4.1: Activity 2.4.1a Deliverable 2.4.1a Strategies for have committed to NDCs clearly Regional market- Develop the conceptual design(s) of market-based and At least one conceptual design(s) of market-based and transforming and pursuing voluntary identify an based and financial financial instruments to leverage private sector financial instruments with the potential to leverage private attracting private cooperation in the economically instruments to engagement and investment for NDCs and propose a sector engagement and investment for NDCs and roadmap sector investment for implementation of viable portfolio of leverage private roadmap for the complete design and development of for the complete design and development of prioritized low emissions and their NDCs under actions applicable sector engagement prioritized instruments. Prioritized instruments and their instruments. resilience developed the Paris to companies and and investment for roadmaps will be submitted for the regional institutional and being used Agreement. At the local NDCs are mechanism validation.

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Outcomes Baseline Targets Outputs Activities Deliverables (brief description)

regional and governments in conceptually Description: One regional-level assessment report about existing or available economic and financial instruments for NDC national levels, the region for design. implementation and green economic recovery capable of leveraging private sector investment through carbon trading or pay- there is limited successive NDC based mechanisms. This regional-level report will also include the blueprints of carbon market-based and financial coordination and updates and instruments, and further identify and connect with national-level NDC processes with GCF country programmes in the five joint initiatives implementation. countries (where existing) and will provide a comprehensive review of response packages and measures proposed by the between national five governments in the framework of the COVID green resilient recovery. governments, Private private sector, and companies with Activity 2.4.1b Deliverable 2.4.1b local governments national and Develop a targeted plan that provides information on One regional plan for the implementation of the market-based in the NDC regional presence opportunities for private sector engagement in market- and financial mechanisms for NDC based on good practices processes. Private and operations based and financial mechanisms for NDC and principles. sector needs and participate and implementation. investment articulate clear Description: This activity will help identify opportunities for the five countries to implement their NDCs and climate targets in opportunities to and measurable the most cost-efficient way. The plan, which would be informed of a report, would further inform countries about opportunities support the NDCs investment in market-based and financial mechanism implementation. Opportunities for private sector engagement with the public sector implementation portfolios, in the voluntary cooperation will be identified in the plan with the aim to achieve NDC objectives in a cost-efficient way, which have been cooperative can, in turn, would allow the region to increase its mitigation efforts with available/new partnerships and resources. inadequately approaches, and considered at the partnerships in Activity 2.4.1c Deliverable 2.4.1c national and the NDCs Conduct three regional and five national consultation Eight validated workshop reports (5 national, 3 regional), regional levels. processes. workshops (virtual, physical, or otherwise) with private including a list of participants and materials. sector organizations to engage them in the NDCs update National and and implementation. regional guidance documents Description: A series of three regional (0.5 days workshops for 200 people) and five national (1.5 days workshops for 40 providing a clear people) consultation workshops will be conducted in order to obtain inputs and views from relevant private stakeholders procedure for concerning market-based and financial instruments and mechanisms feasibility. With the present situation of the COVID-19 active virus, the NDAs will choose how many of these virtual consultation workshops will be carried out virtually. In these virtual participation and consultation workshops, the inclusion of women, and other gender-diverse populations will be assured, for providing involvement of innovative means for the private sector to understand business opportunities in line with the NDCs, both nationally and strategic regionally. subnational Output 2.4.2: Activity 2.4.2a Deliverable 2.4.2a stakeholders and Portfolio of private Develop five country level policies and actions portfolios Validated country level portfolio reports of climate action private sector NDC actions including possible partnerships and investments options, partnerships and investments (one per country) that identify participation and partnerships is considering both public and private financial flows in the climate actions and partnerships. platform is developed in each region. developed in the country. Description: This activity builds on targeted plans on opportunities for private sector engagement and national consultation region. workshops under activities 2.4.1b and c. Once economic viability of NDCs is determined, five targeted country level portfolios will be developed, thus identifying concrete measures for the private sector to finance NDC i.e., transitioning the NDCs from viability and investment potential to implementation support of companies present in the countries and the region. The five targeted country level portfolios will be aligned to national climate actions/ambitions and identify opportunities to facilitate these actions/ambitions vis-à-vis regional economies of scale.

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Outcomes Baseline Targets Outputs Activities Deliverables (brief description)

Activity 2.4.2b Deliverable 2.4.2b Conduct a regional level Climate Investment Forum on A regional forum report validating market-based and financial market-based and financial instruments for financing of instruments for financing of countries NDCs, including list of country NDCs. attendees and attendee feedback. Description: Building on the outputs of Activity 2.4.1b, a regional level Climate Investment Forum (3 days forum for 200 people) will be conducted to inform countries about the opportunities, challenges, and benefits of cooperative approaches (carbon markets) of the Paris Agreement. Countries will be informed about the implementation of financial and market-based mechanisms in the region, as well as result-based payments based and adaptation financing instruments. The forum will further validate the regional plan/report on NDC cooperative approaches based on good practices and principles developed under Activity 2.4.1b.

Activity 2.4.2c Deliverable 2.4.2c Design Public Private Partnership (PPP) models for PPP models are designed (one per country) that outlines conducting “NDC portfolio dialogues” with public options/steps/ methodologies for relevant stakeholder inputs representatives from the five countries and relevant and conducting NDC portfolio dialogues on financing of private sector stakeholders from relevant sectors. NDCs.

Description: A set of climate-smart PPP models will be designed for each of the five countries that outlines ways for involving both public and private sector for implementing a robust portfolio of NDC financing measures for the tourism, food, commerce, industry, and services sectors, building on the existing agreement between the EU and SICA. This activity will build on the experience and best practices of Peru on “NDC portfolio dialogues”. Output 2.4.3: Activity 2.4.3a Deliverable 2.4.3a Regional digital Design, develop and launch a dedicated regional level A regional digital platform, with its guidance and procedures platform and digital platform that will link investment information from for users (strategic stakeholders and private sectors in the participation the private sector with NDCs. region) active participation are developed. mechanisms for NDC investment Description: This digital platform will promote greater public–private dialogue on climate finance through regular exchange of and participation information, forums and consultations that resolve the inconsistencies in mitigation and adaptation metrics for specific and guidance for economic activities of private and public stakeholders. engagement of private sector and subnational Activity 2.4.3.b Develop a subnational participation Deliverable 2.4.3.b (i) stakeholders on mechanism (virtual, physical, or otherwise) each per Five subnational participation mechanism and guidance NDCs are country for sub-national public participation in the NDC documents providing a clear procedure for active participation developed. updating process. and engagement of strategic stakeholders and private sectors in the region are developed.

Deliverable 2.4.3b(ii) Participation mechanism meeting (virtual or physical) report including the advances of the five different countries.

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Outcomes Baseline Targets Outputs Activities Deliverables (brief description)

Description: Five subnational NDC participation mechanisms (virtual, physical, or otherwise) will be developed, one per country for NDC updating process. These mechanisms will be tested as instruments for permanent monitoring, engaging the civil society, sub-national governments, municipal councils, and academia as key stakeholders. Theses mechanisms will work as consultations and feedback mechanism, where inputs from the different stakeholders will be received to fully include the perspectives of a broad list of sub-national actors helping implement NDCs and identify opportunities to raise ambition.

Activity 2.4.3.c Deliverable 2.4.3.c Develop a regional-level guidance document that is A guidance document on participation and engagement of needed by countries to strengthen the participation of the private sector in updating and implementation of NDCs (one private sector in in the updating of NDCs. for the region) Description: The manual or guidance document will provide with guidance to inform parties about the processes and recommendations to ensure active participation of private sector in updating the NDC (one for the region).

Activity 2.4.3.d Deliverable 2.4.3.d Develop guidance document needed to facilitate and Five guidance documents to inform and engage with strengthen the participation of sub-national governments subnational governments (one per country). in the NDC processes. Description: Using the outcomes of assessment of existing institutional arrangements in each country (activity 1.1.1.a), this activity will develop manuals tailored to each country’s engagement priorities for NDCs and will outline steps and considerations in planning and engaging with national, subnational, community, CSOs and development partners. The manuals will identify how to use digital platform and participation mechanism (activities 2.4.3a and 2.4.3.b) in reaching more ambitious climate targets. Page 26 of 41

4. THEORY OF CHANGE

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The goal of this proposal is to enable the Governments of Nicaragua, Honduras, El Salvador, Dominican Republic, and Guatemala to formulate and implement their Nationally Determined Contributions on long-term low emission, climate resilient strategies in the Central America sub-region by deploying a regional climate change coordination mechanism, private sector engagement, financial instruments, and coordination with other policy agendas and political processes. The Central American region is highly vulnerable to climate change yet uniquely placed with their rich biodiversity and regional cooperation on climate change to boost opportunities to achieve the needed transformational changes to their economies. The countries are currently is updating their NDC and undertaking climate change activities in such as the development and implementation of national projects, plans and policies. Lack of coordination will risk the five countries in setting a course for different approaches and varying ambition levels on climate action. A common approach in the region for comparability, consistency and tracking of NDCs will ensure a consistent approach to climate finance. At the same time, a regional integration will be an opportunity for joint work on the implementation of the NDC, and consequently, joint, and large investment opportunities with higher impact. Concurrently, countries are recovering from the COVID-19 pandemic and there is a lack of understanding recovery efforts would align with the updated NDCs.

This proposal will aim to create enabling conditions for the NDCs in the five countries as they are being updated, allowing countries to accelerate their implementation of climate action. To achieve this aim, implementation mechanisms that are economically viable, financially sound, inclusive of sub-sectors and stakeholder needs and participatory to promote cooperation between countries in the region will be supported through the proposal. The problem(s) the proposal will address include inadequate technical capacity and coordination of governments (national, sub-national) and private sector at the regional and national levels in the five countries to update and implement their NDCs resulting from: limited mechanisms for regional climate change coordination, limited institutional and legal capacities and frameworks for updating and implementing the NDCs, not consistent MRV and M&E systems with ETF requirements under the Paris Agreement, lack of financial and market-based instruments oriented to private sector to support the NDCs implementation, lack of private sector portfolio of actions that contribute to the NDCs, lack of technical capacity and emerging needs of countries relating to green resilient recovery in response to COVID-19 and coordination action with other agendas (SDG, 2030 Agenda for Sustainable Development).

The preferred solution is to strengthen private, sub-national, national, and regional engagement and approaches for climate actions in the NDCs of the five countries. Measures targeted through the proposal would include: regional and national coordination mechanisms; institutional and legal capacity building, guidance to incorporate relevant complementary SDGs, biodiversity and green recovery goals in the updated NDCs, MRV and M&E current systems assessment and recommendation to improve reporting, as well as, for the integration of information at regional level, design market-based and financial instruments to leverage private sector investment, identifying a portfolio of private sector actions that contribute to the NDCs, developing regional mechanisms for NDC investment and participation, and guidance engagement of the private sector.

This proposed work is based around four outcomes that will support the country’s GCF readiness and programming process. The outcomes therefore include:

• Outcome 1.1: Country NDAs or focal points and the network/ systems that enable them to fulfil their roles, responsibilities and policy requirements are operational and effective. • Outcome 1.3: Relevant country stakeholders (which may include executing entities, civil society organizations and private sector) have established adequate capacity, systems, and networks to support the planning, programming, and implementation of GCF-funded activities • Outcome 2.2: GCF recipient countries have developed or enhanced strategic frameworks to address policy gaps, improve sectoral expertise, and enhance enabling environments for GCF programming in low-emission investment. • Outcome 2.4: Strategies for transforming and attracting private sector investment for low emissions and resilience developed and being used.

The resulting impact of the proposal is to support countries in meeting their NDC ambition and implementation (and other national and regional climate plans, policies, and strategies) through a combination of national and regional capacity measures, private sector leverage and stakeholder engagement in the NDCs, that respond to the five country’s needs and priorities. This will bring mid- to long-term changes to the region’s low emission and climate resilient development pathways. To ensure sustainability of national and regional measures, the proposal will establish an effective national and regional coordination mechanism, facilitate the improving of the MRV and M&E reporting and will foster the engagement of private sector and sub-national stakeholders in the region through guidance documents and the design of tailored financial and market-based instruments. Finally, building on regional processes such as the Central American Commission for Environment and Development-CCAD, the environmental arm of the Central American Integration System, SICA, the regional climate change institutional will be set-up facilitating long term sustainability of activities related to this proposal. The key assumption for technical, institutional and operational capacity of the Governments of Nicaragua, Honduras, El Salvador, Dominican

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Republic, Guatemala to formulate and implement NDCs, is having high-level political support, and commitment and sustained engagement of key stakeholders (including private sector) in the NDC process, improving MRV and M&E practices will strength the 5 countries to reach their NDC’s targets and the Central American region to set a path for develop long-term low emission, climate resilient strategies. Page 29 of 41

5. BUDGET, PROCUREMENT, IMPLEMENTATION AND DISBURSEMENT PLAN

5.1 Budget plan Please see completed Budget Plan in Excel attachment to the proposal. Overall financial management and procurement of goods and services under this Readiness request will be guided by the UNEP regulations, rules, policies, and procedures as well as its programme manual. 5.2 Procurement plan Please see the completed procurement plan developed in the specified GCF format and attached.

5.3 Implementation Plan Please see the completed implementation plan developed in the specified GCF format and attached.

5.4 Disbursement schedule Please specify the proposed schedule for requesting disbursements from the GCF. For periodicity, specify whether it is quarterly, bi-annually, or annually only.

☒ Readiness Proposal that falls within a Framework Agreement with the GCF Disbursements will be made in accordance with Clause 4 “Disbursement of Grants” and Clause 5 “Use of Grant Proceeds by the Delivery Partner” of the Second Amended and Restated Framework Readiness and Preparatory Support Grant Agreement between GCF and UNEP dated 2 June 2020 (Framework Agreement)The Delivery Partner is entitled to submit 2 request(s) for disbursement each year and additionally, for proposals approved between the 2 request dates, an Interim Request for Disbursement may be submitted within 30 days of the date of the notification of the relevant approval by the Fund.

☐ Readiness Proposal that requires a bilateral Grant Agreement • Please include an indicative disbursement table showing the expected amounts to be requested and keep to multiples of USD 5,000. • The first disbursement amounting [Choose Currency][Choose Currency][Choose Currency] [Type the amount] will be transferred upon approval of the readiness request and effectiveness of the Grant Agreement; • The second disbursement amounting [Choose Currency][Choose Currency][Choose Currency] [Type the amount] will be transferred upon submission of an interim progress report [and audited financial report]10, in form and substance acceptable to the Fund, [including an audited expenditure statement]; and • The third disbursement amounting [Choose Currency][Choose Currency][Choose Currency] [Type the amount] will be made upon submission of a completion report and financial report, in form and substance acceptable to the Fund, including an audited expenditure statement.

10 For second disbursement, audited financial report and audited expenditure statement are only required for readiness and preparatory support proposals expected to last over 12 months.

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6. IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION

6.1 Implementation arrangements

The project implementation plan and decision-making process are reflected below: i) The Project Steering Committee (PSC) will be set up to provide oversight and guidance to the project implementation. The PSC will have decision-making capacity and will primarily serve to provide guidance and advisory support, including (a) provide guidance and support project implementation, and (b) reviewing annual budget and work plans (c) ensure synergy and coordination as well as avoid any overlaps with ongoing projects including GCF readiness projects. The PSC will meet at least twice per year – with ad hoc meetings held as and when necessary – to discuss the project's main performance indicators and provide strategic guidance. The PSC will be integrated by a representative designated by each NDA, an NDC technical focal point and a representative of the DP. The PSC will be co-chaired by UNEP and a representative of the NDAs. The UNEP PSC co- chair will act on a pro tempore basis for a period of 6 months, with the possibility of re-election. ii) Five NDA representatives (1 per country) delegated by GCF focal points will constitute the PSC. All decisions will be made by consensus and equal voting for NDA will be applied. iii) A Project Coordination Unit (PCU) will be established for day-to-day management of the project. UNEP’s Office for Latin America and the Caribbean will provide the PCU. Under the supervision of the Project Steering committee, the PCU will be responsible for the overall implementation of this readiness proposal. The PCU will draw detailed terms of reference, perform procurement and human resources duties, manage funds according to the terms in the grant agreement. It will also provide technical inputs, organize events, oversee that all deliverables are provided by individual consultants or consulting firms in a timely and efficient way, and report progress to the GCF. The PCU will consist of a Project Manager and an Administration and Finance Assistant (AFA). iv) Regional deliverables would be approved by the PSC.

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6.2 Implementation and execution roles and responsibilities

UNEP will manage the funds for the activities under this readiness agreement. UNEP will agree on a plan with the National Designated Authorities (NDA) from the participating countries to monitor the implementation of the activities using the grant proceeds. UNEP will be responsible for implementation of the readiness support and will carry out all fiduciary and financial management, procurement of goods and services, monitoring and reporting activities under this proposal in compliance with UNEP’s policies and procedures and the Second Amended and Restated Framework Readiness and Preparatory Support Grant Agreement dated 2 June 2020. UNEP’s operating policies and procedures will follow the UNEP programme manual. As the DP for this project, UNEP will be responsible for overseeing the implementation and evaluation of the project in coordination with the Project Steering Committee (PSC) and the Project Management Unit, including inter alia M&E reports. A UNEP Officer (PO) will be responsible for project oversight and supervision, and to ensure consistency with GCF and UNEP policies and procedures. The functions of the PO will include, but will not be limited to the following: i) participating in the Annual Project Steering Committee (PSC) meetings (2); ii) facilitating the final evaluation; iii) clearing the Progress Reports and Project Implementation Reviews; and iv) undertaking the technical review of project deliverables v) providing input to periodic readiness portfolio reporting to GCF; vi) preparing requests for disbursements etc. The PO will be in charge of direct reporting for NDAs, technical support in transparency, means of implementation and NDC updating context. UNEP will submit semi-annual progress reports to the GCF, in accordance with the terms of the Framework R&P Support Grant Agreement between GCF and UNEP. Regarding the technical staff of the project (in line with the project implementation plan), one technical coordinator will oversee all technical activities, deliverables and will coordinate five working groups. Five working groups will be in charge of the technical development of deliverables and stakeholder’s engagement and consultation. The five working groups include: in-country local group, participation and communications group, environmental regulation, and MRV-M&E group, NDC economy and finance group and carbon markets group. Only local consultant will be working for one specific country, while other consultants will work across all countries. Duties, activities/deliverables, responsibilities for delivering on, qualifications, number of days and estimated daily rate for each consultant are provided in the table 2.

Area of Position Duties/activities and Minimum qualifications, number of days and support/working deliverables estimated daily rate group

Technical (1) Project This international Full time for 15 months, 300 working days, coordination technical consultant will coordinate USD250/day. coordinator: the entire project and will international be responsible for ACADEMIC: NDC, project providing the functional • University degree (Bachelor’s) in economics, and community and operational finance, administration, political science, manger requirements for international relations, engineering, related consultant. deliverable 1.3.1B. studies. Postgraduate: a master's degree in Deliverable 1.3.1.B is engineering, economics or development is referring to a subnational required. dialogue/platform to promote NDC PROFESSIONAL: implementation, this •General Experience: At least six (6) years of platform will have a digital experience in projects of public policy, climate format. Considering change, environmental economics, fiscal policy, national circumstances, climate policy, impact evaluation, economic the project coordinator research, development or disaster and supported by each local emergency response. consultant will establish •Specific Experience: At least two (2) years of the functional and specific work experience in NDC implementation, operational characteristics climate change policies implementation. of this subnational platform for public LANGUAGE: participation. •Fluency in Spanish is required.

In-country (5) Local Each local support Full time for 12 months, 240 working days, support consultant will be USD160/day. consultants, one responsible of assist the

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for each implementation of ACADEMIC: participating activities of outcomes and • University degree (Bachelor’s) in economics, country. produce: i) one NDC finance, administration, political science, governance plan per international relations, engineering, related country (deliverable studies. Postgraduate: a master's degree in 1.1.1); ii) A stakeholder engineering, economics or development is engagement scheme desired. (deliverable 1.1.2); iii) A regulation review PROFESSIONAL: (deliverable 1.1.3.A); and •General Experience: At least five (5) years of iv) Deliver inputs to the experience in projects of public policy, climate coordinator concerning change, environmental economics, fiscal policy, sub-national participation climate policy, impact evaluation, economic in each country. research, development or disaster and (contribution for emergency response. deliverable 1.1.3B. These •Specific Experience: At least two (2) years of four deliverables are specific work experience in NDC implementation, distributed in 12 months climate change policies implementation. in order to have at least three months to prepare LANGUAGE: each deliverable. •Fluency in Spanish is required.

Participation and (1) International This consultant will be Full time for 15 months, 300 working days, communications Support Web responsible for the USD250/day. designer, implementation of programming, activities in outcome 1.3 ACADEMIC: and web This consultant will be • University degree (Bachelor’s) in publicity, development responsible for designing marketing, web design, communications, expert. and programming all the programming related studies. Postgraduate: a technological tools master's degree in marketing and/or required by the project, communications is desired. deliverables 1.3.1B, 1.3.1.D and 2.2.2.A). This PROFESSIONAL: consultant will have •General Experience: At least five (5) years of strategic tasks in experience in climate change communications, developing environmental public engagement and communication platforms awareness, websites programming and design. as well as public •Specific Experience: At least two (2) years of engagement strategies. specific work experience in NDC implementation, climate change policies implementation.

LANGUAGE: •Fluency in Spanish is required.

(1) International This consultant will be Full time for 12 months, 240 working days, NDC responsible for the USD280/day. Communications filming, communications, expert. and documentary ACADEMIC: activities. This expert will • University degree (Bachelor’s) in publicity, be in charge of the marketing, web design, communications, related involvement of the private studies. Postgraduate: a master's degree in sector and the functional marketing and/or communications is desired. requirements of the private participation PROFESSIONAL: platform. This consultant •General Experience: At least five (5) years of will be responsible for experience in climate change communications, generating the environmental public engagement, and deliverables 1.3.1A and awareness. 1.3.1C. We emphasize •Specific Experience: At least two (2) years of that 1.3.1A has a regional specific work experience in NDC implementation, scope and must have an climate change policies implementation. in-depth analysis of the private sector in the LANGUAGE: region. •Fluency in Spanish is required.

(1) International This consultant will be Full time for 12 months, 240 working days, NDC responsible for the USD280/day. Communications filming, communications, expert. and documentary ACADEMIC: activities. This expert will

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be responsible for • University degree (Bachelor’s) in publicity, contributing to the marketing, web design, communications, related development and studies. Postgraduate: a master's degree in implementation of the marketing and/or communications is desired. sub-national dialogue / platform in conjunction PROFESSIONAL: with the technical •General Experience: At least five (5) years of coordinator (outcome experience in climate change communications, 1.1.) This expert will environmental public engagement, and deliver the digitalization awareness. and programming •Specific Experience: At least two (2) years of instruments for the specific work experience in NDC implementation, functional/operational climate change policies implementation. requirements provided by the project coordinator. LANGUAGE: •Fluency in Spanish is required.

Environmental (1) This consultant will be Full time for 15 months, 300 working days, regulation and Environmental responsible of the USD250/day. MRV-M&E regulation and implementation of NDC Expert activities in outcomes 2.2. This expert will be responsible for deliverables 2.2.1.A, 2.2.2.B. This expert will be in charge of all activities related with MRV-M&E analysis, legal NDC framework. NDC economy (1) Private This consultant will be Full time for 12 months, 240 working days, and finance finance and responsible of the USD300/day. NDC expert will implementation of be hired for the activities in outcomes 2.4. ACADEMIC: This expert will be • University degree (Bachelor’s) in economics, responsible for finance, administration, political science, deliverables 2.4.1.A and international relations, engineering, related 2.4.1.C. This consultant studies. Postgraduate: a master's degree in will be responsible of all engineering, economics or development is the activities concerning required. financial instruments for private engagement, PROFESSIONAL: private sector •General Experience: At least six (6) years of participation and NDC experience in projects of public policy, climate financing instruments for change, environmental economics, private action in mitigation environmental finance, climate finance, impact and adaptation. evaluation, economic research, development or disaster and emergency response. •Specific Experience: At least three (3) years of specific work experience in private climate finance.

LANGUAGE: •Fluency in Spanish is required. (1) Fiscal and This consultant will be Full time for 12 months, 240 working days, economy expert. responsible of the USD280/day. implementation of activities in outcome 2.4. ACADEMIC: This expert will be • University degree (Bachelor’s) in economics, responsible for finance, administration, political science, deliverables 2.4.1.E, international relations, engineering, related 2.4.2.A and 2.4.2.B. This studies. Postgraduate: a master's degree in consultant will be engineering, economics or development is responsible of all the required. activities concerning fiscal instruments for public/private PROFESSIONAL: engagement, public •General Experience: At least six (6) years of sector participation and experience in projects of public policy, climate NDC economic change, environmental economics, fiscal policy, instruments for mitigation climate policy, impact evaluation, economic

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and adaptation, economy research, development or disaster and assessment studies. emergency response. •Specific Experience: At least three (3) years of specific work experience in macroeconomic analysis or impact assessment of environmental and fiscal policies.

LANGUAGE: •Fluency in Spanish is required. (1) Public This consultant will be Full time for 15 months, 300 working days, finance expert responsible of the USD250/day. will be hired for implementation of the activities in outcome 2.4. ACADEMIC: implementation This expert will be • University degree (Bachelor’s) in economics, of responsible for finance, administration, political science, deliverables 2.4.1.B and international relations, engineering, related 2.4.1.D. This consultant studies. Postgraduate: a master's degree in will be responsible of all engineering, economics or development is the activities concerning required. public financial instruments for PROFESSIONAL: public/private •General Experience: At least six (6) years of engagement, public experience in projects of public policy, climate sector participation and change, environmental economics, fiscal policy, NDC public and fiscal climate policy, impact evaluation, economic instruments for mitigation research, development or disaster and and adaptation. emergency response. •Specific Experience: At least three (3) years of specific work experience in macroeconomic analysis or impact assessment of environmental and fiscal policies.

LANGUAGE: •Fluency in Spanish is required. Carbon markets (1) Carbon This consultant will be Full time for 12 months, 240 working days, Markets and responsible of the USD280/day. Offsets Expert implementation of will be hired for activities in outcome 5.2. ACADEMIC: the This expert will be • University degree (Bachelor’s) in economics, implementation responsible for finance, administration, political science, of activities in deliverable 5.2.1B and to international relations, engineering, related outcomes coordinate 5.2.1.A Forum studies. Postgraduate: a master's degree in in cooperative engineering, economics or development is approaches. required.

PROFESSIONAL: •General Experience: At least six (6) years of experience in projects of public policy, climate change, environmental economics, fiscal policy, climate policy, impact evaluation, economic research, development or disaster and emergency response. •Specific Experience: At least two (2) years of specific work experience in NDC implementation, carbon markets negotiations.

LANGUAGE: •Fluency in Spanish is required. The Regional Project Support Consultants will support to all outcomes and working groups. In addition, he/she will have the task to oversee implementation, guide and assist the Local Consultants and the International Technical Implementing Partner. The Regional Project Support Consultant will work closely with the PCU and will be based in UNEP’s Office for Latin America and the Caribbean. The (5) Local support consultants, one for each participating country, will be hired to assist the implementation of activities of outcome 1.1. The DP will select local consultants with approval from the corresponding NDA. The NDA will previously define the location of the local consultants. The NDA of the participating country will also supervise each Local Consultant. The integration System for Central America could be considered as a potential technical partner due to its responsibilities in the region and technical capacities. Page 35 of 41

6.3 Risks and mitigation measures Please include a set of identified risks and mitigation actions for each. Please utilize the risk table below that identifies the probability of a given risk occurring and the entity that will manage the risk. Please refer to Part III Section 6.3 of the Readiness Guidebook for further information on how to complete this section.

Probability of Specific Impact level Entity(ies) occurrence risk(s) / (low, Mitigation responsible Risk category (low, Risk(s) medium, action(s) to manage medium, description high) the risk(s) high) Covid-19 risk Activities Medium Medium UNEP will provide Covid-19 risk delayed or tools for remote repeated for collaboration and inadequate data engagement. due to limited face-to-face interaction and travel restrictions Technical Limited High High Capacity-building Delivery partner knowledge about actions on NDC long term updating and long- Project planning and term planning; Steering NDC updating, raising awareness Committee particularly of about the importance (PSC) protocols and of understanding the methods, could global trends. potentially represent a UNEP is leading the conflict with implementation of users that might NAP, CBIT, CAEP not understand projects in the region the need for this expertise will transitioning to a reduce the risk of not comparable and achieving sufficient consistent coordination among approach. different NDC initiative. Political Country Medium Medium Strengthening a Delivery partner institutions with bottom-up approach NDCs so that local Project responsibilities governments and Steering do not prioritize organizations push Committee the project towards project (PSC) activities implementation Political Political Low Low The Project relies on NDAs upheaval in the the capacity of the region could NDAs for building Project undermine the consensus among Coordination policy and the the member Unit (PCU) knowledge countries and management maintaining and learning permanent outcomes of the communication about Project. In the results obtained particular, the by the project in the health short term. emergency and the lack of consistent and comparable information can make governments prioritize policies

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Probability of Specific Impact level Entity(ies) occurrence risk(s) / (low, Mitigation responsible Risk category (low, Risk(s) medium, action(s) to manage medium, description high) the risk(s) high) that are not compatible with climate ambition over comprehensive action policies that, in addition to contributing to recovery, are also consistent with the Paris Agreement. Administrative Changing Medium Medium NDAs intervention NDAs administrations both at the political during the and technical level Project implementation supporting project Steering of the project implementation, Committee could undermine ensuring continuity (PSC) project and country implementation ownership across the and lack of project cycle human and financial resources Implementation Delays in Low High UNEP will utilize its Delivery partner implementation existing networks due to the and partnerships as procurement of well as its consultants consultants’ roster to procure the relevant consultants. UNEP has a track record working with GCF. Lessons learned from past, or ongoing GCF projects will be taken into consideration to improve project implementation. Implementation Implementation Medium Medium The proposal and Delivery partner delays due to particularly its lack of implementation NDAs engagement arrangements have from the been designed in NDAs/delays in close coordination communication with the relevant and coordination national counterparts with the NDAs/ to ensure there is delays due to strong support and lack of participation at a government national level. support or participation UNEP officer will be in charge of the day- to-day NDA participation. Regional coordinator of climate change will be constantly in

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Probability of Specific Impact level Entity(ies) occurrence risk(s) / (low, Mitigation responsible Risk category (low, Risk(s) medium, action(s) to manage medium, description high) the risk(s) high) touch with NDAs representatives reporting project results. Implementation Delays in High High The national and Delivery partner implementation global situation need due to the actual to be followed and Project COVID-19 global incorporated in Steering emergency. project decisions. Committee Virtual meetings and (PSC) electronic platforms will be used to avoid travels and personal meetings. Fiduciary Prohibited Medium Medium According to World Delivery partner Practices money Bank Governance laundering or Indicators, Control of NDAs terrorist Corruption in El financing Salvador ranks below average at 32.48%; Guatemala ranks 18.75%; Honduras 23%; Nicaragua 12.5%; Dominican Republic 25%. The Project will be implemented in accordance with UN regulations, rules and policies including the Anti-Fraud and Anti-Corruption Framework of the United Nations Secretariat. The financial management and procurement in project will be guided by UN Financial Regulations, Rules, and practices, as well as UN Environment’s operations manual. The risk of GCF proceeds being utilized towards Prohibited Practices, money laundering or terrorist financing is low, and will be mitigated through appropriate legal instruments which will include warranties and caveats by the Executing Entities to

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Probability of Specific Impact level Entity(ies) occurrence risk(s) / (low, Mitigation responsible Risk category (low, Risk(s) medium, action(s) to manage medium, description high) the risk(s) high) inter alia ensure compliance with the Anti-Fraud and Anti- Corruption Framework of the United Nations Secretariat, as well as the Green Climate Fund Policy on Prohibited Practice.

UN due diligence will be applied for contracts, UN registry of providers and rosters of experts will be used looking at previous experiences of consultants/suppliers of work in similar projects. Direct validation from UNEP Officers with referees and previous employers will be applied for all candidates. National public certification of fiscal authorities, attorney, comptroller, and prosecutor will be required if applicable according to each national context.

6.4 Monitoring UNEP as the Delivery Partner will agree on a plan with the NDAs to monitor the implementation of the activities using the grant proceeds. The activities included in the proposal pay significant attention to monitoring, reporting, and evaluation of the process. The project will create an M&E framework and build capacity to conduct M&E activities. In this sense, the project will establish mechanisms to learn from the process of preparing, developing, and implementing the Country Programme. Indeed, the project will undertake a midterm evaluation before this support concludes. M&E framework will include an indicator system to track the outcome of the project. The indicators would reflect the results for: i) NDC ambition measured in number of policies, actions, emissions reduction and/or people and ecosystems covered by adaptation actions. ii) Voluntary regional agreement between governments and private sectors. iii) Participation platform in place including a piloting for actions report and tracking. iv) The final outcome of the project will be the pipeline of projects, the concept notes and the NDC implementation portfolio. Monitoring and progress indicators will be applied for each deliverable. The technical coordinator of the project, in coordination with the project manager and the UNEP official, will follow up on the progress of each deliverable and the percentage of progress will be reported monthly based on the work plan approved by the Project Steering Committee. The PSC will play a key role in the monitoring of project progress providing

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project oversight and advisory support, including a) overseeing project implementation, and b) reviewing the annual budget and work plan. The PSC will meet every six months with ad hoc meetings held as and when necessary to deal with emerging issues – to discuss the projects main performance indicators and provide strategic guidance

6.5 Other Relevant Information

UNEP’s comparative advantage on climate change lies in its broad role regarding environmental issues within the UN system. The organization brings over 25 years of experience in climate change issues, and a long term, systemic, and comprehensive approach to climate change mitigation and adaptation that differs materially from that of other actors in that it is linked, where possible, to other environmental concerns of countries such as pollution, natural resource depletion and ecosystem degradation. UNEP also focuses on linking the science of climate change to policy in a manner that makes it distinctive. UNEP is uniquely placed to work with the GCF to ensure the protection and sustainable use of the environment and the transition to a green economy. The mandate of the GCF resonates at the core of UNEP’s purpose, seeking to foster with the GCF a shared vision towards achieving these goals. The UNEP-GCF partnership will, therefore, catalyse and sustain green solutions to mitigating and adapting to climate change. Under the Second Amended and Restated Framework Readiness and Preparation Support Grant Agreement signed between UNEP and the GCF dated 2 June 2020, UNEP engages with countries that have selected it as a Delivery Partner for GCF-funded climate readiness activities including classic readiness, NAPs, REDD+ readiness projects and proposals, PPFs etc. UNEP provides a wider range of services to countries seeking its support as Delivery Partner in line with the newly adopted Readiness and Preparatory Support Programme: Strategy for 2019-2021 and UNEP Program of Work for climate change. Since September 2019, UNEP has supported 30 countries through 35 readiness support proposals which translates into a readiness portfolio of USD 36 million. No Conflict of Interest: To avoid any possible conflict of interest deriving from the Delivery Partner’s role as an accredited entity, the prioritization of investments and projects in the context of this readiness grant will be made through a broad consultation process with relevant stakeholders, under the leadership of the NDA. The final validation of these priorities will be carried out by the country’s mechanism of coordination and related institutional arrangements, with the participation of other government agencies, as well as representatives from civil society and private sector, to ensure that chosen priorities are fully aligned with national plans and strategies and adequately include inputs from consulted stakeholders.

Prohibited Practices: The proposed project will be implemented in accordance with UN regulations, rules, and policies, including the Anti-Fraud and Anti-Corruption Framework of the United Nations Secretariat. The financial management and procurement for the project will be guided by UN Financial Regulations, Rules and Practices, as well as UNEP’s operations manual.

The risk of GCF proceeds being utilised for prohibited practices, money laundering or terrorist financing will be mitigated through appropriate legal instruments which will include warranties and caveats by the Executing Entities to inter alia ensure compliance with the Anti-Fraud and Anti-Corruption Framework of the United Nations Secretariat, as well as the Green Climate Fund Policy on Prohibited Practices. Further information on UNEPs Misconduct and Anti-fraud Policies is available at: https://www.unenvironment.org/about-un-environment- programme/policies-and-strategies/misconduct-and-anti-fraud-policies

Money Laundering/Financing of Terrorism: Consistent with numerous United Nations Security Council resolutions, including S/RES/1269 (1999/S/RES/1368 (2001), and S/RES/1373 (2001), UNEP is firmly committed to the international fight against terrorism, and in particular, against the financing of terrorism. In accordance with UN Regulations, Rules and Policies, UNEP undertakes to use reasonable efforts to ensure that none of the GCF funds provided under the award are used to provide support to individuals or entities associated with terrorism.

Sanctions: UNEP confirms there are no United Nations Security Council (UNSC) restrictive measures in force within the beneficiary countries, namely within El Salvador, Guatemala, Honduras, Nicaragua, and Dominican Republic.

Environmental and Social Sustainability: UNEP screens all its projects for environmental, social, and economic risks and impacts as established under the UNEP’s Environmental and Social Sustainability (ESS) Framework. The Compliance Review and Grievance Redress processes provide a Stakeholder Response

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Mechanism that informs and guides staff, implementing and executing partners and people affected by UNEP projects in bringing and responding safeguard-related stakeholder responses concerning compliance review and dispute resolution in the context of the. Further information on UNEP ESS Framework and Stakeholder Response Mechanism is available at: https://www.unenvironment.org/resources/report/uneps-environmental- social-and-economic-sustainability-stakeholder-response

Intellectual Property and title: In accordance with UN regulations and practices, title to any equipment and supplies that may be purchased during the implementation of the project shall rest with UNEP after consultation and/or agreement of NDA. Upon completion of the project, the disposal of the equipment and supplies will be effected in accordance with UN Regulations and practices and in the best interest of the sustainability of the activities. UNEP shall hold the intellectual property rights to any publications and materials developed during project implementation and will provide worldwide royalty free license to the NDA. Any reports and publications prepared as a deliverable from this project will be posted on both UNEP and NDA websites and will be freely accessible to all relevant stakeholders.

Grievance mechanisms: UNEP’s Environmental and Social Sustainability Framework (ESSF) and Environmental and social sustainability Framework: Stakeholder Response Mechanism.Stakeholder Response Mechanism provide an avenue for stakeholders to provide feedback or report concerns, complaints or grievance issues on UNEP’s proposed or on-going projects. UNEP is committed to avoiding or minimizing unintended harm to stakeholders that may directly or indirectly result from its work. Stakeholders are strongly advised to make an effort to raise any concerns, complaints or grievances to the relevant UNEP Project Manager, UNEP’s local project partners, consultants, or the related UNEP Regional Office. Any project-related concerns and complaints can be raised through the UNEP website (at https://www.unenvironment.org/about-un- environment/why-does-un-environment-matter/un-environment-project-concern) or mailed to unenvironment- [email protected]. Step by step guidance on the compliance or grievance matters, such as eligibility, process and contact information, are available in the Environmental and social sustainability Framework: Stakeholder Response Mechanism.

UNEP adheres to the UN Regulations, Rules and Policies related to whistle-blower protection, as documented in Administrative issuance on Addressing discrimination, harassment, including sexual harassment and abuse of authority ST/SGB/2019/8. For more information, please see https://www.unenvironment.org/about-un- environment-programme/policies-and-strategies/misconduct-and-anti-fraud-policies Sustainability of Initiatives and Exit Strategy: The sustainability of the proposed activities focuses on the development of regulation for the MRV of NDCs. The coordination and participation mechanisms will be cornerstones of the NDC implementation processes in the region and are built upon existing regional mechanism that give confidence and sustainability to the proposals. Also, MRV assessments, recommendations and participation platforms and guidance will be included as part of the countries' transparency systems and will be part of the monitoring and updating mechanisms of the NDCs. This proposal is built from the current circumstances that are experiencing in five countries. It is part of the process of updating the NDCs in light of the first period of implementation of the Paris Agreement and reflects the main institutional, technical, and financial needs that the NDAs have identified. Furthermore, the outputs, activities and deliverables of the proposal will be implemented by the CCAD at the regional level, seeking to define sub-national and sectoral guidelines of work to establish the base of a standardized NDC update process, applicable overtime. The update of NDCs and participation processes will consider the results generated within the framework of this proposal as the basis for continuing the work on support to the NDCs. Finally, it is highlighted that this proposal will provide the technical, financial, institutional and governance elements required to consolidate a rigorous process of updating and monitoring the NDCs in Central América. Central American Commission for Environment and Development is supporting the countries in the proposal in the NDC update process and implementation, the activities of this proposal can be kept in alignment with the NDC updating activities and other initiatives by CCAD engagement in positioning economic recovery and climate action in the centre of NDC related targets. In this sense NDA will increase their engagement with the UNFCCC Focal points in country to ensure revised NDCs reflecting national and sub-national efforts generated in the proposal. The digital and physical regional and national platforms developed under the proposal will provide an avenue for the governments to share experiences and lessons learned relating to the NDC review process. Finally, we highlight the mandate of UNEP in the framework of the Forum of Ministers of Environment and its strategic role in the technical support of the NDCS in the region. Both UNEP's mandate and technical support through other NDC initiatives ensure alignment and consistency with other NDCS support initiatives. Stakeholder consultation: To avoid any possible conflicts of interest deriving from the role of Accredited Entity, the prioritisation of investments and projects in the context of this readiness grant will be made through a broad consultation process with relevant stakeholders, including other potential implementing entities. The final validation of these priorities will be carried out through the country’s own relevant coordination mechanism and institutional arrangements with the participation of other government agencies, as well as with representatives

Page 41 of 41

from civil society and private sector as the NDAs deem relevant, to ensure chosen priorities are fully aligned with national plans and strategies and adequately include inputs from consulted stakeholders.

Readiness Grant Budget Preparation Guidelines

This file contains three specific planning tools to complete the supplementary information required when submitting a proposa (including for NAP/adaptation planning):

- Budget plan and accompany Budget notes - Procurement plan - Implementation plan

The following considerations are important when completing the budget:

1. Before preparing the Readiness and budget, procurement, and implementation plans, please read the full guidance contained in the Readiness Programme Guidebook, specifically Part III Section 5

2. You can select the appropriate budget categories from the dropdown list in the budget plan: 3. To insert additional rows, right click on the row number below where you wish to insert the new row and choose INSERT.

4. Additional budget categories may be added by manually typing them on the Budget Category sheet. : 5. The Budget Notes sheet should be used to record explanations, further details or cost breakdowns for individual lines

Project Management Cost: Project management costs (PMC) are the direct administrative costs incurred to execute a project. They should cover only incremental costs incurred due to the GCF contribution. In most cases, these costs are directly related to the support of a dedicated project management unit which manages the day to day execution related activities of the project. General Principles for PMC costs: 1. The percentage of PMC financed by GCF should not be more than the percentage share of the overall budget financ 2. PMC budget thresholds: Up to 7.5 per cent of total activity budget. > PMC exceeding 7.5 per cent for the readiness (including NAPs) proposals, and PPF proposals, up to $ 3 million and justification supporting the entire PMC budget. > The PMC should be shown as a separate component in the project budget. A detailed breakdown of PMC should > Indicative list of eligible project management costs: > Project staffing and consultants: Project manager, Project Assistant, Procurement personnel, Finance pe > Other direct costs: Office equipment, Mission related travel cost of the PMU, Project management system Office supplies, Audit cost

Contingency : 1. Select the appropriate % of Contingency Budget from the dropdown list : 2. Contingency budget for unforeseen costs arising during the project implementation should not be included in the outcome budget separately. 3. Contingency budget must be used for any unforeseen programme (output level) cost that is unrelated to implementation/service fee. 4. Any use of contingency must be reported to and agreed by the GCF Secretariat in writing in advance provided with justifications that are acceptable to the GCF 5. If by the end of the grant implementation period, you have not spent Contingency, you may not increase the scope of the project or make any other expenditures using the Contingency.

If you are unsure about how to complete the budget template, please send your query to: co al for Readiness Programme support

ced by GCF

n will require detailed documentation

d be provided by budget category. ersonnel & Support/admin. Personnel ms and information technology,

[email protected] Budget Categories Audio Visual & Printing Audit Fee Consultant - Individual - International Consultant - Individual - Local Professional Services – Companies/Firm IT Equipment Office Supplies Travel - International Travel – Local Workshop/Training

Indicate additional budget categories Budget Detailed Description Note (1) Technical project coordinator. Full time for 15 months. This international consultant is responsible for deliverables 1.1.1b and 1.1.1.d . Deliverable 1.1.1.B is referring to ToR for regional coordination and participation institutional A mechanism. This mechanism will considering national circumstances and key stakeholders. (1 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed B in 12 months. (2 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed C in 12 months. (3 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed D in 12 months. (4 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed E in 12 months. (5 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed F in 12 months. G (5) international travel (one per country) are included as part of the implementation activities of outcome 1.1. H (5) virtual consultation workshops (one per country) are included as part of the implementation activities of outcome 1.1. (1.5 days workshops for 40 people) (1) International Consultant in legal affairs. This expert will be hired for the implementation of activities in outcome 1.3 full time for 15 months. This consultant will be responsible for the preparation and validation of a review report (one per country) on national level legal frameworks and regulations for updating and implementing the NDCs, deliverable 1.3.1.a. I (1) International consultant NDC expert. This expert will be hired for the implementation of activities in outcome 2.2 full time for 15 months. This consultant will be responsible for the preparation of one guidance document per country that considers NDC linkages with SDGs, biodiversity goals, the 2030 agenda and COVID recovery measures, deliverable 2.2.1.a, and five national workshop reports (one per country) to clearly explain SDGs, biodiversity goals and COVID-19 J recovery measures linkages with the NDCs update process, including lists of participants and information materials. (1) International consultant MRV expert. This expert will be hired for the implementation of activities in outcome 2.2 full time for 12 months. This consultant will be responsible for the preparation of a diagnosis and recommendations report of the national status of the MRV-M&E reporting consistency in the light of the new ETF requirements, other political agendas and economic recovery to strengthen functional capacity of MRV (mitigation) and M&E (adaptation) K systems, deliverable 2.2.2.a, and, the regional assessment and recommendations report to integrate regional information and support analysis and decision-making processes at CCAD, deliverable 2.2.3.a. L (5) International travels are included as part of the implementation activities of outcomes 2.2. Three regional (0.5 days workshops for 200 people) consultation workshops M (5) virtual consultation workshops are included as part of the implementation activities of outcomes 2.2.. 1.5 days workshops for 40 people. (1) International consultant Private finance expert will be hired for the implementation of activities in outcomes 2.4 full-time for 12 months. This expert will be responsible for deliverables: 2.4.1a Market-based and financial instruments to leverage private sector engagement and investment for NDCs, 2.4.1b One regional plan on market-based and financial mechanisms for NDC based on good practices and principles, and, 2.4.1c Eight validated workshop reports (5 N national, 3 regional), including a list of participants and materials. O (5) international travels are included as part of the implementation activities of output 2.4.1. (8) virtual consultation workshops are included as part of the implementation activities of outcomes 2.4. (5 national, 3 regional), including a list of participants and materials. Five national (1.5 days workshops for 40 people) and three P regional (0.5 days workshops for 200 people) (1) International consultant Mitigation Outcomes and Offsets Expert will be hired for the implementation of activities in outcome 2.4 full-time for one year. This expert will be respponsible for deliverables 2.4.2.a ( Validated country level portfolio reports of climate action partnerships and investments (one per country) that identify climate actions and partnerships) and 2.4.4.c (PPP models are designed (one per country) that outlines options/steps/ methodologies for Q relevant stakeholder inputs and conducting NDC portfolio dialogues on financing of NDCs) and to coordinate 2.4.2.b regional forum. R (3) International travels are included as part of the implementation activities of outcomes 2.4.2. S (5) international travels are included as part of the implementation activities of output 2.4.2 T (1) Regional Forum: A regional forum report validating market-based and financial instruments for financing of countries NDCs, including list of attendees and attendee feedback. (3 days forum for 200 people) (1) International consultant Fiscal and subnational expert will be hired for the implementation of activities in outcome 2.4.3 full-time for 15 months. This expert will be responsible for deliverables 2.4.3.b (Five subnational participation U mechanisms (virtual, technological, or otherwise) one/ per country) and 2.4.3.d (Five guidance documents to inform and engage with subnational governments (one per country)) (1) International consultant for private sector engagement expert will be hired for the implementation of activities in outcome 2.4.3 full-time for 15 months. This expert will be responsible for deliverable 2.4.3.c A guidance document on V participation and engagement of private sector in updating and implementation of NDCs (one for the region) and suport the web designer and communications expert. (1) International consultant in communications and web desing will be hired for the implementation of activities in outcome 2.4.3 full-time for 15 months. This expert will be responsible for deliverables Deliverable 2.4.3a (A regional digital platform that links information from the private sector with NDCs). This consulnt will be in charge of the audiovisual and web activities. This expert will be in charge of designing and programming the technological tool required by the project (deliverable 2.4.3.b) . W X (5) audiovisual and printing support budgets for each country is required for the implementation of activities in outcome 2.4. Publishing and communication of activities in this outcome are required.

Z (1) administration and finacne assistant will be hired part time during 18 months. This position will support the Project Management functions. 5.1 Budget Plan Please add rows for Outcomes, Outputs and Cost Categories as required. Additional budget categories may be added by manually typing them on the Budget Category sheet.

Detailed Budget (in US$) Expenditure Plan Total Budget Outcomes / Outputs Budget Categories Total Budget Total Budget Budget notes Unit # of Unit Unit Cost (per outcome) 6m 12m 18m 24m 30m 36m choose from the drop-down list (per budget category) (per sub-outcome)

(1) Technical project coordinator. Full time for 15 months. This international consultant is responsible for deliverables 1.1.1b and 1.1.1.d . Deliverable 1.1.1.B is Consultant - Individual - International W/Day 300 250 $ 75,000.00 $ 75,000.00 referring to ToR for regional coordination and participation institutional mechanism. This mechanism will considering national circumstances and key stakeholders.

A

(1 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local Consultant - Individual - Local W/Day 240 160 $ 38,400.00 $ 38,400.00 support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed in 12 months. B

(2 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local Consultant - Individual - Local W/Day 240 160 $ 38,400.00 $ 38,400.00 support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the Outcome 1.1 regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed in 12 months. Country NDAs or focal points and the C network/ systems that enable them to fulfil Output 1.1.1: Regional institutional mechanism for their roles, responsibilities and policy NDC coordination and decision making as part of $ 291,500.00 $ 291,500.00 (3 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local requirements are operational and effective the CCAD established. Consultant - Individual - Local W/Day 240 160 $ 38,400.00 $ 19,200.00 $ 11,520.00 $ 7,680.00 support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed in 12 months. D

(4 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local Consultant - Individual - Local W/Day 240 160 $ 38,400.00 $ 19,200.00 $ 11,520.00 $ 7,680.00 support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed in 12 months. E

(5 of 5) Local support consultant, one for each participating country. This local consultat will be hired to assist the implementation of activities of outcome 1.1. Local Consultant - Individual - Local W/Day 240 160 $ 38,400.00 $ 19,200.00 $ 19,200.00 support consultant must prepare: i) NDC stakeholder coordination and participation plans deliverable 1.1.1.a ; ii) One inception meeting report specifying the regional institutional structure and participating priority sectors and private sector agencies Deliverable 1.1.1.c. These two deliverables are distributed in 12 months. F Travel - International Trip 5 1,400 $ 7,000.00 $ 3,500.00 $ 3,500.00 (5) international travel (one per country) are included as part of the implementation activities of outcome 1.1. G

Lumpsum 5 3,500 $ 17,500.00 $ 8,750.00 $ 8,750.00 Workshop/Training (5) virtual consultation workshops (one per country) are included as part of the implementation activities of outcome 1.1. (1.5 days workshops for 40 people) H

Outcome 1.3 Output 1.3.1: Relevant country stakeholders (which may Institutional and legal capacity for updating and include executing entities, civil society implementing the NDC process is strengthened at (1) International Consultant in legal affairs. This expert will be hired for the implementation of activities in outcome 1.3 full time for 15 months. This consultant will organizations and private sector) have the national level. be responsible for the preparation and validation of a review report (one per country) on national level legal frameworks and regulations for updating and Consultant - Individual - International W/Day 300 250 $ 75,000.00 $ 75,000.00 $ 75,000.00 $ 37,500.00 $ 37,500.00 established adequate capacity, systems implementing the NDCs, deliverable 1.3.1.a. and networks to support the planning, programming and implementation of GCF- funded activities. I

(1) International consultant NDC expert. This expert will be hired for the implementation of activities in outcome 2.2 full time for 15 months. This consultant will Output 2.2.1: Guidance for incorporating relevant be responsible for the preparation of one guidance document per country that considers NDC linkages with SDGs, biodiversity goals, the 2030 agenda and COVID complementary SDGs, biodiversity and green Consultant - Individual - International W/Day 300 250 $ 75,000.00 $ 37,500.00 $ 37,500.00 recovery measures, deliverable 2.2.1.a, and five national workshop reports (one per country) to clearly explain SDGs, biodiversity goals and COVID-19 recovery recovery goals in the updated NDCs is provided. measures linkages with the NDCs update process, including lists of participants and information materials. J

Outcome 2.2 (1) International consultant MRV expert. This expert will be hired for the implementation of activities in outcome 2.2 full time for 12 months. This consultant will GCF recipient countries have be responsible for the preparation of a diagnosis and recommendations report of the national status of the MRV-M&E reporting consistency in the light of the new developed or enhanced strategic Output 2.2.2: Current MRV and M&E systems are Consultant - Individual - International W/Day 240 280 $ 67,200.00 $ 33,600.00 $ 20,160.00 $ 13,440.00 ETF requirements, other political agendas and economic recovery to strengthen functional capacity of MRV (mitigation) and M&E (adaptation) systems, deliverable frameworks to address policy gaps, assessed in line with ETF of the Paris Agreement. 2.2.2.a, and, the regional assessment and recommendations report to integrate regional information and support analysis and decision-making processes at CCAD, improve sectoral expertise, and $ 164,900.00 $ 164,900.00 deliverable 2.2.3.a. enhance enabling environments for K GCF programming in low-emission investment. Travel - International Trip 3 1,400 $ 4,200.00 $ 2,100.00 $ 1,260.00 $ 840.00 (5) International travels are included as part of the implementation activities of outcomes 2.2. L

Output 2.2.3: Integration of regional information, support systems with decision-making processes Workshop/Training Event 5 3,700 $ 18,500.00 $ 9,250.00 $ 9,250.00 (5) virtual consultation workshops are included as part of the implementation activities of outcomes 2.2.. 1.5 days workshops for 40 people. at CCAD is assessed and enhanced. M

(1) International consultant Private finance expert will be hired for the implementation of activities in outcomes 2.4 full-time for 12 months. This expert will be responsible for deliverables: 2.4.1a Market-based and financial instruments to leverage private sector engagement and investment for NDCs, 2.4.1b One regional Consultant - Individual - International W/Day 240 300 72,000 $ 36,000.00 $ 21,600.00 $ 14,400.00 plan on market-based and financial mechanisms for NDC based on good practices and principles, and, 2.4.1c Eight validated workshop reports (5 national, 3 Output 2.4.1: Regional market-based and financial instruments to leverage private sector engagement regional), including a list of participants and materials. and investment for NDCs are conceptually design. N Travel - International Trip 5 1,400 7,000 $ 3,500.00 $ 2,100.00 $ 1,400.00 (5) international travels are included as part of the implementation activities of output 2.4.1. O (8) virtual consultation workshops are included as part of the implementation activities of outcomes 2.4. (5 national, 3 regional), including a list of participants and Workshop/Training Lumpsum 8 3,700 29,600 $ 14,800.00 $ 14,800.00 materials. Five national (1.5 days workshops for 40 people) and three regional (0.5 days workshops for 200 people) P

(1) International consultant Mitigation Outcomes and Offsets Expert will be hired for the implementation of activities in outcome 2.4 full-time for one year. This expert will be respponsible for deliverables 2.4.2.a ( Validated country level portfolio reports of climate action partnerships and investments (one per country) that Consultant - Individual - International W/Day 240 300 72,000 $ 36,000.00 $ 36,000.00 identify climate actions and partnerships) and 2.4.4.c (PPP models are designed (one per country) that outlines options/steps/ methodologies for relevant stakeholder inputs and conducting NDC portfolio dialogues on financing of NDCs) and to coordinate 2.4.2.b regional forum. Q Output 2.4.2: Portfolio of private sector NDC Outcome 2.4 actions and partnerships is developed in each country. Travel - International Trip 3 1,400 4,200 $ 2,100.00 $ 1,260.00 $ 840.00 (3) International travels are included as part of the implementation activities of outcomes 2.4.2. Strategies for transforming and attracting R $ 522,500.00 $ 522,500.00 private sector investment for low Workshop/Training Lumpsum 5 3,700 18,500 $ 18,500.00 (5) international travels are included as part of the implementation activities of output 2.4.2 emissions and resilience developed and S being used. (1) Regional Forum: A regional forum report validating market-based and financial instruments for financing of countries NDCs, including list of attendees and Workshop/Training Lumpsum 1 14,700 14,700 $ 7,350.00 $ 4,410.00 $ 2,940.00 attendee feedback. (3 days forum for 200 people) T (1) International consultant Fiscal and subnational expert will be hired for the implementation of activities in outcome 2.4.3 full-time for 15 months. This expert will Consultant - Individual - International W/Day 300 250 75,000 $ 37,500.00 $ 22,500.00 $ 15,000.00 be responsible for deliverables 2.4.3.b (Five subnational participation mechanisms (virtual, technological, or otherwise) one/ per country) and 2.4.3.d (Five guidance documents to inform and engage with subnational governments (one per country)) U

(1) International consultant for private sector engagement expert will be hired for the implementation of activities in outcome 2.4.3 full-time for 15 months. This Output 2.4.3: Regional digital platform and Consultant - Individual - international W/Day 240 300 72,000 $ 36,000.00 $ 36,000.00 expert will be responsible for deliverable 2.4.3.c A guidance document on participation and engagement of private sector in updating and implementation of NDCs (one for the region) and suport the web designer and communications expert. participation mechanisms for NDC investment and V participation and guidance for engagement of private sector and subnational stakeholders on (1) International consultant in communications and web desing will be hired for the implementation of activities in outcome 2.4.3 full-time for 15 months. This NDCs are developed. expert will be responsible for deliverables Deliverable 2.4.3a (A regional digital platform that links information from the private sector with NDCs). This consulnt will Consultant - Individual - International W/Day 300 280 84,000 $ 42,000.00 $ 25,200.00 $ 16,800.00 be in charge of the audiovisual and web activities. This expert will be in charge of designing and programming the technological tool required by the project (deliverable 2.4.3.b) . W (5) audiovisual and printing support budgets for each country is required for the implementation of activities in outcome 2.4. Publishing and communication of IT, Audio Visual & Printing Lumpsum 5 14,700 73,500 $ 36,750.00 $ 22,050.00 $ 14,700.00 activities in this outcome are required. X Total Outcome Budget $ 1,053,900.00 $ 612,100.00 $ 346,080.00 $ 95,720.00 - - Project Management Cost (PMC) Project Manager - Individual Month 18 2,566.67 46,200.00 Y (1) one project manger will be hired part time during 18 months.

Administration & Finance Assistant - Up to 7.5% of Total Activity Budget Month 18 1,465.70 26,382.60 Individual Actual amount and % of PMC Maximum PMC that can Z requested: be requested: (1) administration and finacne assistant will be hired part time during 18 months. This position will support the Project Management functions. do not change the formula do not change the IT Equipment Lump sum 3 1,500.00 4,500.00 formula 77,082.60 79,042.50

- 7.31% 7.50%

FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY

Breakdown (per budget category) Total (per budget category)

Audio Visual & Printing 73,500.00 FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY

Consultant - Individual - International 667,200.00 Consultant - Individual - Local 192,000.00 Total Outcome Budget 1,053,900.00 Professional Services – Companies/Firm - Project Management Cost (PMC) 7.3% requested 77,082.60 IT Equipment 4,500.00 Contingency 2% requested 21,078.00 Office Supplies Travel - International 22,400.00

(Total Outcome Travel – Local - Sub-Total 1,152,060.60 Budget + Contingency + PMC)

Workshop/Training 98,800.00

Terminal Evaluation 0.00 Delivery Partner Fee (DP) - 97,925.15 Up to 8.5% of the Sub-Total

Project Manager - Individual 46,200.00 Administration & Finance Assistant - Individual 26,382.60

Total Project Budget (Total Audit Cost 0.00 Activity Budget + Contingency + $ 1,249,986.00 PMC + DP)

Total Outcome Budget + PMC 1,130,982.60 5.2 Procurement Plan

For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in Section 3, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below and provide a full procurement plan for the entire duration of the implementation period if available at this stage.

Thresholds (Min-Max monetary value for Item Item Description Estimated Cost (US$) Procurement Method Estimated Start Date Projected Contracting Date which indicated procurement method must be used) Goods and Non-Consulting Services Request for quotations > US$ 10,000 Workshop/Training Workshops and trainings for various activities Q1Y1 Q1Y1 $ 98,800.00 Low value procurement < US$ 10,000 Request for quotations > US$ 10,000 Travel - International Travels for various activities Q1Y1 Q1Y1 $ 22,400.00 Low value procurement < US$ 10,001 IT Equipment 3 laptop computers for project staff $ 4,500.00 Low value procurement < US$ 10,000 Q1Y1 Q1Y1 Sub-Total (US$) $ 125,700.00

Consultancy Services Consultant - Individual - Local Consultant - Individual - Local $ 38,400.00 Recruitment N/A Q1Y1 Q1Y1 Consultant - Individual - Local Consultant - Individual - Local $ 38,400.00 Recruitment N/A Q1Y1 Q1Y1 Consultant - Individual - Local Consultant - Individual - Local $ 38,400.00 Recruitment N/A Q1Y1 Q1Y1 Consultant - Individual - Local Consultant - Individual - Local $ 38,400.00 Recruitment N/A Q1Y1 Q1Y1 Consultant - Individual - Local Consultant - Individual - Local $ 38,400.00 Recruitment N/A Q1Y1 Q1Y1 Consultant - Individual - Regional (1) Technical project coordinator. Full time for 15 months. This international consultant is responsible fo $ 75,000.00 Recruitment N/A Q1Y1 Q1Y1 Consultant - Individual - Regional (1) International Consultant in legal affairs. This expert will be hired for the implementation of activities in $ 75,000.00 Recruitment N/A Q2Y1 Q2Y1 Consultant - Individual - International (1) International consultant NDC expert. This expert will be hired for the implementation of activities in ou$ 75,000.00 Recruitment N/A Q1Y1 Q1Y1 Consultant - Individual - International (1) International consultant MRV expert. This expert will be hired for the implementation of activities in ou$ 67,200.00 Recruitment N/A Q2Y1 Q2Y1 Consultant - Individual - Regional (1) International consultant Private finance expert will be hired for the implementation of activities in out$ 72,000.00 Recruitment N/A Q2Y1 Q2Y1 Consultant - Individual - Regional (1) International consultant Mitigation Outcomes and Offsets Expert will be hired for the implementation $ 72,000.00 Recruitment N/A Q2Y1 Q2Y1 Consultant - Individual - Regional (1) International consultant Fiscal and subnational expert will be hired for the implementation of activities $ 75,000.00 Recruitment N/A Q2Y1 Q2Y1 Consultant - Individual - Regional (1) International consultant for private sector engagement expert will be hired for the implementation of $ 72,000.00 Recruitment N/A Q3Y1 Q3Y1 Consultant - Individual - Regional (1) International consultant in communications and web desing will be hired for the implementation of ac$ 84,000.00 Recruitment N/A Q3Y1 Q3Y1 Project Manager - Individual Half time of Regional Project Manager based in UN Environment's Office for Latin America and the Caribb $ 46,200.00 Recruitment N/A Q1Y1 Q1Y1 Administration & Finance Assistant - Individual One half-time of Administration and Finance Assistant (AFA) based in UN Environment's Office for Latin A$ 26,382.60 Recruitment N/A Q1Y1 Q1Y1 Audio Visual & Printing Website design and launch for Sub-Outcome 1.2 $ 73,500.00 Low value procurement < US$ 10,000 Q2Y1 Q1Y1 Sub-Total (US$) $ 1,005,282.60 5.3 Implementation Plan Please list all the deliverables (e.g. D.1.1.1a) per activity (e.g. A1.1.1) with the identifierand mark the planned duration as show in the example. Please also indicate milestones for any deliverables to be completed during the implementation period of the activity in question. Make sure the identifier number of each activity and deliverable matches with the proposal as this table does not require its name or description. Please refrain from adding descriptions. For more guidance on how to fill out this tables, please see Part III Section 5 of the Readiness Guidebook

Planned duration Milestone (deliverable) Target completion date

Estimated Timeline Activities & Deliverables M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18

Reporting Activity 1.1.1.a Assess existing institutional arrangements and develop five national NDC Deliverable 1.1.1a stakeholder engagement plans (one per country) aimed at ensuring the Five validated national NDC stakeholder engagement plans for stakeholder coordination and participation of key national sectors and private sector at country level. participation (one per country for a total of five plans). The documents will guide a process to improve the participation of interested parties in the development, updating and implementation of NDCs within each country.

Activity 1.1.1.b Deliverable 1.1.1.b Develop a regional institutional mechanism for regional NDC coordination Document with the design of the regional institutional mechanism, including structure, functions and aimed at ensuring the participation of key national sectors and private workplan. sector from Countries in the region and its workplan.

Activity 1.1.1.c Identify and prioritize national stakeholders from five countries and Deliverable 1.1.1.c conduct a regional inception meeting and a regional workshop of the One inception meeting report specifying the regional institutional structure and participating priority Regional governance mechanism, as well as provide. logistics and sectors and private sector agencies. facilitation support, as well as technical support in case this would be asked for the national governments.

Activity 1.3.1.a Deliverable 1.3.1.a Review the existing institutional and legal frameworks and regulations in Five validated review reports (one per country) on national institutional and legal frameworks and five countries and propose a roadmap (one per country) to strengthen regulations for updating and implementing the NDCs and a roadmap (one per country) to strengthen their institutional and legal frameworks for NDC updating and their institutional and legal frameworks for NDC updating and implementation implementation.

Activity 1.3.1.b Deliverable 1.3.1.b Support and advice national governments on strengthening their legal and Report on the advances of the five countries on the roadmap for strengthening their institutional and institutional frameworks according to the roadmap of the deliverable legal framework for updating and implementing NDCs. 1.3.1.a

Activity 2.2.1. a Deliverable 2.2.1.a Assess the NDC linkages with other global environmental goals and One guidance document per country that considers NDC linkages with SDGs, biodiversity and green develop guidance document (one per country) that provides recovery goals in the updated NDCs.. recommendations for incorporating relevant complementary SDGs, biodiversity and green recovery goals in the updated NDCs. Deliverable 2.2.1.b Activity 2.2.1.b Five national workshop reports (one per country), including lists of participants, information Design and conduct five national workshops (one per country) focusing on materials, analysis of pre and post workshop participant surveys about stakeholder knowledge the integration of SDGs, 2030 agenda, biodiversity goals and COVID-19 about incorporating relevant complementary SDGs, biodiversity, and green recovery goals in their recovery measures with the updated NDCs climate change. updated NDCs. Activity 2.2.2.a Assess countries' MRV (mitigation) and M&E (adaptation) systems Deliverable 2.2.2.a requirements in light of the new ETF requirements, other political agendas Assessment and recommendations report of the national status of the MRV (mitigation) and M&E and economic recovery and provide recommendations to strengthen (adaptation) reporting consistency in the light of the new ETF requirements, other policy functional capacity of MRV (mitigation) and M&E (adaptation) systems. frameworks, regional political agendas and economic recovery strengthen their functional capacity.

Activity 2.2.3.a Deliverable 2.2.3 a Conduct a regional-level assessment and generate a recommendations Regional assessment and recommendations report on integration regional information and support report to integrate regional information and support analysis and decision- analysis and decision-making processes at CCAD. making processes at CCAD.

Activity 2.2.3.b Conduct five national workshops on regional level assessment and Deliverable 2.2.3.b generate recommendation report for each country to integrate regional Five validated workshop reports including a list of participants and materials. information.

Activity 2.4.1a Develop the conceptual design(s) of market-based and financial Deliverable 2.4.1a instruments to leverage private sector engagement and investment for At least one conceptual design(s) of market-based and financial instruments with the potential to NDCs and propose a roadmap for the complete design and development of leverage private sector engagement and investment for NDCs and roadmap for the complete design prioritized instruments. Prioritized instruments and their roadmaps will be and development of prioritized instruments. submitted for the regional institutional mechanism validation.

Activity 2.4.1b Deliverable 2.4.1b Develop a targeted plan that provides information on opportunities for One regional plan for the implementation of the market-based and financial mechanisms for NDC private sector engagement in market-based and financial mechanisms for based on good practices and principles. NDC implementation.

Activity 2.4.1c Deliverable 2.4.1c Conduct three regional and five national consultation workshops (virtual, Eight validated workshop reports (5 national, 3 regional), including a list of participants and physical, or otherwise) with private sector organizations to engage them in materials. the NDCs update and implementation.

Activity 2.4.2a Deliverable 2.4.2a Develop five country level policies and actions portfolios including Validated country level portfolio reports of climate action partnerships and investments (one per possible partnerships and investments options, considering both public country) that identify climate actions and partnerships. and private financial flows in the region.

Activity 2.4.2b Deliverable 2.4.2b Conduct a regional level Climate Investment Forum on market-based and A regional forum report validating market-based and financial instruments for financing of countries financial instruments for financing of country NDCs. NDCs, including list of attendees and attendee feedback.

Activity 2.4.2c Deliverable 2.4.2c Design Public Private Partnership (PPP) models for conducting “NDC PPP models are designed (one per country) that outlines options/steps/ methodologies for relevant portfolio dialogues” with public representatives from the five countries stakeholder inputs and conducting NDC portfolio dialogues on financing of NDCs. and relevant private sector stakeholders from relevant sectors. Activity 2.4.3a Deliverable 2.4.3a Design, develop and launch a dedicated regional level digital platform that A regional digital platform, with its guidance and procedures for users (strategic stakeholders and will link investment information from the private sector with NDCs. private sectors in the region) active participation are developed.

Deliverable 2.4.3.b (i) Five subnational participation mechanism and guidance documents providing a clear procedure for active participation and engagement of strategic stakeholders and private sectors in the region are Activity 2.4.3.b Develop a subnational participation mechanism (virtual, developed. physical, or otherwise) each per country for sub-national public participation in the NDC updating process.

Deliverable 2.4.3b(ii) Participation mechanism meeting (virtual or physical) report . including the advances of the five different countries.

Deliverable 2.4.3.c Activity 2.4.3.c A guidance document on participation and engagement of private sector in updating and Develop a regional-level guidance document that is needed by countries to implementation of NDCs (one for the region) strengthen the participation of the private sector in in the updating of NDCs.

Activity 2.4.3.d Deliverable 2.4.3.d Develop guidance document needed to facilitate and strengthen the Five guidance documents to inform and engage with subnational governments (one per country). participation of sub-national governments in the NDC processes.