Building Low Emission Alternatives to Develop Economic Resilience and Sustainability (B-Leaders) Project

BUILDING LOW EMISSION ALTERNATIVES TO DEVELOP ECONOMIC RESILIENCE AND SUSTAINABILITY (B-LEADERS) PROJECT

ANNUAL REPORT FISCAL YEAR 2016 COVERING OCTOBER 1, 2015 – SEPTEMBER 30, 2016

October 15, 2016

This document was produced for review by the United States Agency for International Development. It was prepared by IRG, an Engility company.

BUILDING LOW EMISSION ALTERNATIVES TO DEVELOP ECONOMIC RESILIENCE AND SUSTAINABILITY (B-LEADERS) PROJECT ANNUAL REPORT

FISCAL YEAR 2016 COVERING OCTOBER 1, 2015 – SEPTEMBER 30, 2016

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 9

SECTION 1: PROJECT OVERVIEW AND EXPECTED RESULTS ...... 14

A. General Overview ...... 14

B. Expected Results ...... 14

SECTION 2: ACTIVITY IMPLEMENTATION PROGRESS ...... 21

A. Progress Narrative ...... 21

B. Quantitative Results for FY 2016 ...... 25

C. Implementation Status ...... 27 Task 1: In-Country Capacity on Low Emission Development Strengthened ...... 27 Task 2: Investments into Clean Energy Projects Increased ...... 37 Cities Development Initiative Sites ...... 41 Crosscutting Activities and Community and Outreach Activities ...... 45 SECTION 3: INTEGRATION OF CROSSCUTTING ISSUES ...... 50

A. Gender Equality and Women Empowerment ...... 50

B. Public-Private Partnership ...... 50

C. Production of Communications and Outreach Materials ...... 51

SECTION 4: PLANNED ACTIVITIES FOR FY 2017 ...... 56

ANNUAL REPORT FOR FY 2016 1 ANNEXES

Annex A. CLEER Files and Equivalency Calculations Annex B. Enhanced Cost-Benefit Analysis Consultations Annex C. LEAP CBA Trainings for the Energy and Transport Sectors Annex D. Agriculture and Land Use 2006 Training Annex E. Water Energy Nexus in Mindanao Annex F. Fora on the NDC Roadmap Annex G. National Energy Policy Review Annex H. Review of Philippine Power Sector’s Reserve Requirements and Fuel Mix Policy Annex I. Preparation of the APEC Guidelines in Improving Energy Resiliency in Off-grid Areas Annex J. Greening the Grid Study Annex K. Public Consultation on the Renewable Portfolio Standards Annex L. Review of Power Distribution Standards Annex M. Capacity Building of Mindanao’s Electric Cooperatives on Demand Side Management Annex N. ERC TWG Training on the Competitive Selection Process (CSP) and Drafting of the CSP Guidelines Annex O. ERC TWG Training on Power Supply Agreements (PSA) Annex P. ERC Market Operations Service (MOS) Team Training on Unbundled Power Rates Annex Q. Capacity Building Series for the ERC and Office of the Solicitor General (OSG) Annex R. PLLENRO Capacity Building on Low Emission Development Strategies (LEDS) Annex S. Communities for Resilience (CORE) Convergence Fora Annex T. Participation in the Asia LEDS 2016 Forum Annex U. Implementation of the Energy Virtual One Shared System (EVOSS) Annex V. Capacity Building for MinDA’s One Stop Facilitation and Monitoring Center (OSFMC) Annex W. LGU Forum on Renewable Energy Investments Annex X. Regional Sectoral Dialogues with Key Business Leaders on Mindanao’s Power Situation

ANNUAL REPORT FOR FY 2016 2 Annex Y. Mandaue City Green Building Code and Investment Package Annex Z. Study on the Carbon Sequestration Potential of Mangroves in Iloilo City Annex AA. Mangrove Forest Tour in Iloilo City Annex AB. IMPACT Batangas City Green Business Summit Annex AC. Batangas City Climate Change Mitigation Strategies Annex AD. Isla Verde Energy Resiliency Project Annex AE. GHG Inventory for USAID CDI Sites: Zamboanga City and Tagbilaran City Annex AF. Climate Vulnerable Forum: Sherpa Meeting Annex AG. Climate Change Consciousness Week 2015 Annex AH. #NOWPH Training of Trainers Annex AI. Presentation of Project Initiatives at the Asia Clean Energy Forum 2016 Annex AJ. Climate Change Advocacy at the National Youth Parliament Annex AK. Breakout Session during the Global Leaders Conference Annex AL. LEDS Best Practices at International Urban Development Conference Annex AM. Miss Earth 2016 LEDS Seminars Annex AN. Pathways to LEDS Partnership for a Greener Iloilo City Annex AO. LEDS Camp in Batangas City Annex AP. GMA-7 Partnership Annex AQ. Public-Private Partnerships / Leveraged Funds for FY 2016 Annex AR. Communication and Outreach Materials Produced

ANNUAL REPORT FOR FY 2016 3 FIGURES

FIGURE 1. OVERVIEW OF ACTIVITIES AND EXPECTED RESULTS ...... 15

TABLES

TABLE 1. LOGICAL FRAMEWORK ...... 16 TABLE 2. SUMMARY OF PROJECT PROGRESS ...... 21 TABLE 3. FISCAL YEAR 2016 CUMULATIVE ACTUAL RESULTS ...... 25 TABLE 4. LOP TARGETS VERSUS ACCUMULATED ACTUAL RESULTS UP TO END OF FY 2016 ...... 26 TABLE 5. SUMMARY OF FUNDS LEVERAGED FOR FY 2016 (IN USD) ...... 50 TABLE 6. LIST OF COMMUNICATIONS AND OUTREACH MATERIALS ...... 52

ANNUAL REPORT FOR FY 2016 4 ACRONYMS

ACEF Asia Clean Energy Forum AFOLU Agriculture, Forestry and Land Use ALU Agriculture and Land Use AMRECO Association of Mindanao Rural Electric Cooperatives, Incorporated ANECO Agusan Del Norte Electric Cooperative APEC Asia-Pacific Economic Cooperation APHC Agus-Pulangi Hydropower Complex AVP Audio-Visual Presentation BAU Business As Usual BBEC Bicol Biomass Energy Corporation B-LEADERS Building Low Emission Alternatives to Develop Economic Resilience and Sustainability BERDE Building for Ecologically Responsive Design Excellence BLTMPC Boracay Land Transportation and Multi-Purpose Cooperative BOI Board of Investments CBA Cost-Benefit Analysis CCC Climate Change Commission CDCS Country Development Cooperation Strategy CDI Cities Development Initiative CE Clean Energy CLEER Clean Energy Emission Reduction CO2e Carbon Dioxide Equivalent COP21 2015 Paris Climate Conference (Conference of the Parties 21) CORE Communities of Resilience CSP Competitive Selection Process CVF Climate Vulnerable Forum DENR Department of Environment and Natural Resources DepEd Department of Education DFA Department of Foreign Affairs DICT Department of Information and Communications Technology DO Development Objective DOE Department of Energy DOTC Department of Transportation and Communication DOTr Department of Transportation DQAs Data Quality Assessments

ANNUAL REPORT FOR FY 2016 5 DSM Demand Side Management EC-LEDS Enhancing Capacity for Low Emission Development Strategies ECC Environmental Compliance Certificate EE Energy Efficiency EF Efficiency Factor EMB Environmental Management Bureau ENRO Environment and Natural Resources Office EO Executive Order EPIRA Electric Power Industry Reform Act ERC Energy Regulatory Commission ESITU Environmentally Sustainable Initiatives Transportation Unit EVOSS Energy Virtual One Shared System FGD Focus Group Discussion FiT Feed-in Tariff FMB Forest Management Bureau FY Fiscal Year GCC Global Climate Change GDP Gross Domestic Product GHG Greenhouse Gas GIFT Green Innovations for Tomorrow Corporation GPH Government of the Philippines GtG Greening the Grid IBEC Isabela Biomass Energy Corporation IEC Information, Education, and Communication ILP Interruptible Load Program IMPACT Initiate, Mitigate, Participate, Adapt, Clean and Transform INDC Intended Nationally Determined Contribution IPPU Industrial Processes and Product Use IRR Implementing Rules and Regulations LBP Land Bank of the Philippines LCCAP Local Climate Change Action Plan LEAP Long-range Energy Alternatives Planning LEIPO Local Economic and Investment Promotion Offices LEON League of Environment Officers of Negros LED Low Emission Development LEDS Low Emission Development Strategies LEYECO II Leyte Electric Cooperative II LGU Local Government Unit LOP Life of Project

ANNUAL REPORT FOR FY 2016 6 M&E Monitoring and Evaluation MBBC Metro Batangas Business Club MERALCO Manila Electric Company MinBC Mindanao Business Council MinDA Mindanao Development Authority MOS Market Operations Service mtCO2e Metric Tons of Carbon Dioxide Equivalent MW Megawatts MWG Modelling Working Group NAMAs Nationally Appropriate Mitigation Actions NDC Nationally Determined Contribution NEA National Electrification Administration NEPR National Energy Policy Review NA Not Applicable NGA National Government Agency NOWPH Not On Our Watch PH NPC National Power Corporation NREB National Renewable Energy Board NREL National Renewable Energy Laboratory NYC National Youth Commission NYP National Youth Parliament OSFMC One-Stop Facilitation and Monitoring Center OSG Office of the Solicitor General PFG Partnership for Growth PLLENRO Philippine League of Local Environment and Natural Resources Officers PSALM Power Sector Assets and Liabilities Management Corporation PSAs Power Supply Agreements PV Photovoltaic RE Renewable Energy RFID Radio Frequency Identification RPS Renewable Portfolio Standards SDHA Subdivision and Housing Developers Association TAC Technical Advisory Committee TBD To Be Determined TOT Training of Trainers TR WQMA GB Tumaga River Water Quality Management Area Governing Board TWG Technical Working Group UEA Urban Environmental Accord UNFCCC United Nations Framework Convention on Climate Change

ANNUAL REPORT FOR FY 2016 7 USAID United States Agency for International Development USEPA U.S. Environmental Protection Agency USD United States Dollar USG United States Government WQMA Water Quality Management Area WWF World Wide Fund for Nature YES-O Youth for the Environment in Schools Organization ZCAGB Zamboanga City Airshed Governing Board

ANNUAL REPORT FOR FY 2016 8 EXECUTIVE SUMMARY

This report covers October 1, 2015, to September 30, 2016, which is the project’s third fiscal year (FY 2016) and is the 11th reporting quarter of B-LEADERS. The report describes the work done by B-LEADERS to achieve foreign assistance goals under USAID’s current Country Development Cooperation Strategy (CDCS) Development Objective (DO) 3: Environmental Resilience Improved. The project’s objectives are specifically under the Intermediate Result: Increasing climate change resilience and mitigation, with focus on the two main tasks of strengthening capacity for low emission development and increasing investments into clean energy (CE). The report covers targets set for nine performance indicators, which were approved in the FY 2016 Annual Work Plan. All performance indicators will later cover an actual yearly accounting from February 1 to January 31 of a year as B-LEADERS was awarded on February 1, 2014. Nevertheless, all indicators with set targets already met the goals for FY 2016 while the project remains on track relative to Life of Project (LOP) targets. Details of quantitative progress are presented in Tables 2 through 4 in Section 2 of this report. For its two major deliverables, Global Climate Change (GCC) 4.8-7 and GCC 4.8.2-32, the project stands at 38.7 percent of targets for greenhouse gas (GHG) emissions reduced, avoided, and/or sequestered and 47.3 percent for clean energy capacity installed, respectively, as of September 30, 2016. Meanwhile, GCC 4.8.2-33 achieved 92.7 percent of the LOP target of mobilizing investments for climate change. The remaining targets have either already been achieved, i.e., GCC 4.8.2-29 and GCC 4.8.2-14 related to improving the capacities of individuals and institutions, or are expected to be achieved in the coming fiscal year as key activities currently being supported such as clean energy projects and policy measures come online and become active contributors to project results. Performance data for the reporting quarter are verifiable using data quality assessments, properly documented and stored both in electronic and paper format, meeting standards of validity, integrity, precision, reliability, and timeliness. Data source records are maintained in the B-LEADERS database and in the Performance Indicator Tracking Table. The indicators below identify progress achieved under DO 3 in the FY 2016 Annual Work Plan. As noted previously in the annual reporting, the Monitoring and Evaluation Plan covers indicators under the GCC Indicator Handbook (updated on June 10, 2015). For this fiscal year, the progress highlights for each indicator are as follows:

Indicator 1 – GHG emissions, estimated in metric tons of carbon dioxide equivalent, reduced, sequestered, and/or avoided as a result of U.S. Government assistance (GCC 4.8-7) For the period covering October 1, 2015, to September 30, 2016, the project was able to reduce, sequester, and/or avoid 133,472.50 metric tons of carbon dioxide equivalent (mtCO2e) GHG emissions due to the operation of Renewable Energy (RE) projects, which is 289 percent of the target set for FY 2016. This figure is the equivalent of taking about 25,577 gasoline powered cars off the road in a year, or switching 4.3 million incandescent lamps to light-emitting diode bulbs, or like

ANNUAL REPORT FOR FY 2016 9 growing more than 3.1 million tree seedlings for 10 years. Including the results from FY 2014 and FY 2015, this brings the total to 139,291.01 mtCO2e, representing 38.7 percent of the LOP target. The estimation of GHG emissions avoided or reduced were based on the capacity of operational RE projects that were achieved under Indicator 6. The most recent version of the USAID Clean Energy Emission Reduction (CLEER) Tool1 was used for this purpose whereas the translated GHG equivalencies were estimated using U.S. Environmental Protection Agency’s (USEPA) online GHG Equivalencies Calculator. B-LEADERS fully documented the tools, methods, data inputs, and data sources used. Supporting documents were collated from the Philippine Department of Energy (DOE) and from the project proponents, and detailed CLEER and equivalencies calculations are presented in Annex A of this report.

Indicator 2 – Number of laws, policies, strategies, plans, agreements, or regulations addressing climate change proposed, adopted, or implemented as a result of U.S. Government assistance (GCC 4.8.2-28) Eight distinct policies, strategies, plans, agreements, and regulations that address climate change issues were developed and validated within the fiscal year, bringing accomplishments to 100 percent of FY 2016 targets, and to a total of 15 policies, plans, and regulations or 75 percent of the LOP target. FY 2016 outputs include the 2015 Asia Pacific Economic Cooperation (APEC) Cebu Declaration; the National Day for Youth in Climate Action Declaration; Batangas City’s Green Business Summit Declaration; Mandaue City’s Green Building Ordinance and its Implementing Rules and Regulations (IRR) and codified Investment Package; Review Procedures of Power Supply Agreements (PSAs); and Zamboanga City Airshed Governing Board’s (ZCAGB) resolution on Carbon Sequestration Inventory.

Indicator 3 – Number of person-hours of training completed in climate change as a result of U.S. Government assistance (GCC 4.8.2-29) This fiscal year, the project conducted a total of 33 trainings comprising 13,012 person-hours, which is 813 percent of the fiscal year target. Of the 995 individuals trained, 561 were women. This brings the total person-hours of capacity building to 35,456, which comprises 591 percent of LOP target. The trainings were conducted for, or in partnership with, National Government Agencies (NGAs) such as the Climate Change Commission (CCC); DOE, Energy Regulatory Commission (ERC); Office of the Solicitor General (OSG); Mindanao Development Authority (MinDA); Philippine League of Environment and Natural Resources Officers (PLLENRO); as well as Local Government Units (LGUs), particularly Cities Development Initiative (CDI) partners such as the Cities of Batangas, Tagbilaran, and Zamboanga. The key trainings include: four trainings on the Cost-Benefit Analysis (CBA) of mitigation options and application of Long-range Energy Alternatives Planning System (LEAP) for the transport and energy sectors; a training on the use of Agriculture and Land Use (ALU) 2006 GHG Inventory Software for the agriculture sector; series of GHG inventory and energy audit trainings for Batangas

1 New technology-specific calculations have been made available in the most recent release of CLEER tools.

ANNUAL REPORT FOR FY 2016 10 City’s schools and businesses; GHG inventory coaching for the cities of Tagbilaran and Zamboanga; a trainers’ training on GHG inventory for PLLENRO; two GHG Inventory trainings for LGUs in collaboration with PLLENRO and/or the CCC; Energy Virtual One Shared System (EVOSS) hands-on training for DOE personnel and RE project developers; three technical trainings for various Technical Working Groups (TWGs) of the ERC; 13 sessions on power sector overview and capacity building for ERC and OSG; two training-workshops with regional partner MinDA and its One Stop Facilitation and Monitoring Center (OSFMC); and a capacity building activity with MinDA for electric cooperatives in Mindanao.

Indicator 4 – Number of institutions with improved capacity to address climate change issues as a result of U.S. Government assistance (GCC 4.8.2-14) For Indicator 4, various tools, skills, and approaches contributing to GHG inventory; analysis of climate change mitigation options; investments promotion for renewable energy and energy efficiency; local energy planning; and others were provided to 60 private sector entities and 129 government institutions. In total, FY 2016 reported 189 capacitated institutions, which is 1,260 percent of fiscal year target, bringing the total number of institutions to 441, which is 882 percent of LOP target.

Indicator 5 – Number of climate mitigation and/or adaptation tools, technologies, and methodologies developed, tested, and/or adopted as a result of U.S. Government assistance (Custom Indicator) A total of seven tools, technologies, and methodologies were developed, tested, and adopted in FY 2016. This is 117 percent of the fiscal year target and brings the total count to 17, which is 94 percent of LOP target. The outputs achieved include the LGU GHG Guidance Manual; the CBA LEAP Mitigation Toolkit (for the energy and transport sectors); the CBA Mitigation Toolkit (for the waste and agriculture and land use sectors); the Green Building Investment Package Toolkit; and the PLEXOS modeling software, which was provided by USAID B-LEADERS and is currently being used by DOE as a tool to elaborate the Greening the Grid (GtG) Study.

Indicator 6 – CE generation capacity installed or rehabilitated as a result of U.S. Government assistance (GCC 4.8.2-32) The CE generation capacity installed during FY 2016 are the 15 megawatts (MW) Bulacan Solar Photovoltaic (PV) Plant of CleanTech Global Renewables Incorporated; three additional solar plants with a combined capacity of 22.55 MW and all operated by nv vogt Philippines; and the 5 MW rice husk-fired power plant of Bicol Biomass Energy Corporation (BBEC). In addition, the capacity of Agus VI hydroelectric power plant was increased due to the rehabilitation and uprating of its units 1 and 2, resulting in an incremental combined capacity of 19 MW. Therefore, the reporting year achieved an additional 61.55 MW capacity, which led to a 143 percent achievement against FY 2016 target, or an Accumulated Actual of 47.3 percent of the LOP target. A few more projects went through final development stages in the reporting period, and operational capacities are anticipated in the succeeding fiscal year. The remaining targets are expected to be achieved as key projects currently being supported come online and become active contributors to project results. Nevertheless, B-LEADERS constantly reviews, updates, and revises the indicative list of clean energy projects that have initially agreed to work under the project’s clean energy

ANNUAL REPORT FOR FY 2016 11 mentoring portfolio just in case RE developers encounter unexpected problems to drop projects or in anticipation of unforeseen delays in project completion.

Indicator 7 – CE generation capacity supported by U.S. Government assistance that has achieved financial closure (GCC 4.8.2-33) This indicator has no target and is not being treated as a deliverable but it is being tracked due to its inclusion in the GCC Handbook when it was updated on June 10, 2015. To date, this indicator stands at 138.55 MW. Specific achievement in FY 2016 was 74.55 MW.

Indicator 8 – Projected GHG emissions reduced or avoided through 2030 from adopted laws, policies, regulations, or technologies related to CE as supported by U.S. Government assistance (GCC 4.8.2-34) Similar to Indicator 7, this indicator has no target and is not being treated as a deliverable but it is being tracked due to its inclusion in the GCC Handbook when it was updated on June 10, 2015. Value for this indicator for FY 2016 was estimated at 1,410,691.6 mtCO2e for the period 2015-2030. If FY 2015 results were taken into account, projected GHG emissions avoidance from 2015 through 2030 would yield a sum of 3,229,123.1 mtCO2e. These values were estimated and revalidated using the latest version2 of USAID CLEER.

Indicator 9 – Amount of investment mobilized (in USD) for climate change supported by U.S. Government assistance (GCC 4.8.2-10) The amount of private investments mobilized for CE was USD 81,436,000, which were attributed to the one biomass and four solar PV power plants established during FY 2016. The investments of the Power Sector Assets and Liabilities Management Corporation (PSALM) on the rehabilitation and uprating of units 1 and 2 of Agus VI hydro power plants in Mindanao represent the public funds with total contract of USD 35,345,762. In total, the project was able to mobilize USD 116.78 million for clean energy investments. This brings the Accumulated Actual to 92.7 percent of the LOP target. This figure does not yet include leveraged public and private sector funds for climate change relevant communication and outreach activities.

2 The most recent version (v1.1) of CLEER Projection Calculator features an updated country-specific grid emission factor (EF) for the Philippines. In addition, the option for selecting “default projected EF,” initially present in v1.0, which automatically reduces EF values year after year, is not featured in v1.1. The latest version only allows for the use of a constant, yet more updated, country-specific EF.

ANNUAL REPORT FOR FY 2016 12 1,367,063.22 leveraged public and private sector funds for climate change relevant communication and outreach activities.

Gender Outcome As the project continued to build institutional and individual capacities to enhance climate change actions, it also sustained its efforts to provide a gender lens in most of its activities. Gender- disaggregated data continued to be monitored specifically to gauge equal opportunities and access to workshops and trainings provided by the project. For FY 2016, around 56.33 percent of those who participated in 33 separate trainings organized by the project were women, with 57.46 percent of total person-hours spent by women. Where appropriate, the project also continued to exert effort to mainstream gender considerations. For this reporting period, B-LEADERS sustained its assistance to DOE on the preparation of the Guidelines for Energy Resiliency in APEC Off-grid Areas wherein gender considerations were promoted to become a major theme. The initial framework of the guidelines now includes The Role of Women in Developing Energy Resiliency as one of its six major sections.

Monitoring and Evaluation (M&E) In this reporting period, the project further strengthened its M&E processes. Data Quality Assessments (DQAs) were done, ensuring that data are properly documented and stored both in electronic and paper form, meeting standards of validity, integrity, precision, reliability, and timeliness. Data source records are maintained and regularly updated in the project’s Performance Indicator Tracking Table system. The Monitoring and Evaluation Plan also continue to adhere to the indicators under the GCC Indicator Handbook (updated June 10, 2015). On September 9, 2016, USAID Philippines conducted an assessment of B-LEADERS’s M&E system for selected project performance indicators.

ANNUAL REPORT FOR FY 2016 13 SECTION 1: PROJECT OVERVIEW AND EXPECTED RESULTS

A. GENERAL OVERVIEW B-LEADERS is a four-year project (2014-2018) funded by USAID/Philippines. B-LEADERS contributes to the economic growth objective and environment program area of the U.S. Foreign Assistance Framework. The project builds upon the successes and momentum of USAID’s Climate Change and Clean Energy project in 2010-2014. The main objective of B- LEADERS is to strengthen the cooperation with the Philippine government and its key partners to plan, design, and implement Low Emission Development Strategies (LEDS) in support of the joint U.S.-Government of the Philippines (GPH) LEDS work plan. The project supports the Philippines’ climate change programs and green growth strategies toward the development of Nationally Appropriate Mitigation Actions (NAMAs).3 The project focuses on enhancing the capacities of the CCC, DOE, and selected LGUs for LEDS analysis and implementation. Where relevant and feasible, specific partnerships with the Department of Environment and Natural Resources (DENR), Department of Transportation and Communication (DOTC)4, DOE, the CCC, key academic institutions, and private sector organizations are pursued. Partnerships with clean energy project developers and private financing institutions are likewise strengthened.

B. EXPECTED RESULTS Specifically, the project is expected to achieve the following results, as illustrated in Figure 1. The first expected result—in-country capacity on low emission development is enhanced—will be attained upon the preparation of a revised national GHG inventory, improved national data on emissions, and strengthened capacity of Philippine government on LEDS, with emphasis on the formulation of NAMAs for the Philippines. The second expected result—investment into clean energy projects is increased—will be measured in terms of the total value in dollars of investments facilitated into clean energy projects and the total MW of capacity added or saved. Both high-level results are expected to contribute to the reduction of GHG emissions and, in the long run, to the improvement of the Philippines’ air quality, economic efficiency, and climate change resilience.

3. NAMAs refer to a set of policies and actions that countries undertake as part of a commitment to reduce GHG emissions. The term recognizes that different countries may take different nationally appropriate action on the basis of equity and in accordance with common but differentiated responsibilities and respective capabilities. It also emphasizes financial assistance from developed countries to developing countries to reduce emissions. 4 Until May 2016, Republic Act 10844 effectively split the Department of Transportation and Communications (DOTC) into the Department of Information and Communications Technology (DICT) and the Department of Transportation (DOTr).

ANNUAL REPORT FOR FY 2016 14

Figure 1. Overview of Activities and Expected Results Activities leading to these results have been conducted with sustained analysis and assessment of the country’s energy sector and its energy security targets and with considerable focus on determining priority mitigation actions, increasing efficiency, building capacity, and identifying priority sites for the country’s energy sector. In parallel with defining the energy sector’s status and targets, the project also continues to assess the state and outlook of clean energy investments in the country and pays specific attention to recent experiences by both government and private financing institutions on clean energy investments. Below (Table 1) is the logical framework of the project that provides expected results and the indicators. It is based on the following critical assumptions:

• USAID funding for B-LEADERS remains at current level without an option year, and with the timeframe adhering to the base year ending September 2017 and the remaining project months from October 2017 to January 2018 allotted for close-out tasks. • GPH commitment to respond to the impacts of climate change is changing, with the new administration defining new directions and priorities regarding Intended Nationally Determined Contribution (INDC) and renewable energy development. • USAID and other agencies’ complementary efforts to coordinate actions and integrate climate change into development planning and decision-making continue and are successful. • Counterparts are committed to support the collection of information on B-LEADERS performance indicators.

ANNUAL REPORT FOR FY 2016 15 TABLE 1. LOGICAL FRAMEWORK

Narrative Indicators Data Sources Assumptions Summary Goal: Climate . GHG emissions, . Application of GHG . Computations will be change resilience and estimated in metric emissions accounting based on MW realized mitigation increased tons of carbon dioxide and attribution from investments equivalent (mtCO2e), methodology promotions, and policy reduced, sequestered, implementation and/or avoided . Validation of sources . NB: Goal level change is as a result of U.S. of computation (e.g., what this project Government assumptions on MW contributes towards, assistance realized) however, it is (GCC 4.8-7) . National reports understood that achieving this goal is not within the direct control of this project. Many other actors and initiatives will contribute towards achieving this goal. Purpose: . Number of laws, . Before and after . The project is Strengthen the policies, strategies, evaluation of policies, consciously focusing on capacity of the plans, or regulations strategies, regulations, influencing change at Philippine addressing climate tools, and the level of the host government and its change (mitigation or methodologies government, which is key partners to plan, adaptation) and/or why it is mentioned design, and biodiversity conserva- explicitly in the purpose implement LEDS tion officially statement. However, the proposed, adopted, or project is also implemented as a committed to strengthen result of U.S. key partners (with links Government to global, national, and assistance local networks). The (GCC 4.8.2-28) impact of activities relating to policy and investment takes time to be reflected in concrete plans. . In order to facilitate the implementation of activities and to actualize capacity building, the project is focusing its assistance to partner local government units and other partners at the subnational level. . Climate change . Interview of GPH . Political instability strategies and action counterparts and arising from change in plans: endorsed by private sector partners administration is not

ANNUAL REPORT FOR FY 2016 16 TABLE 1. LOGICAL FRAMEWORK

Narrative Indicators Data Sources Assumptions Summary national authorities mitigated. are integrated into . Media reports . Development agencies national or retain close subnational relationships and development capacity capacity to influence the building processes host government. . Host government . Host government has national and local adequate funding to government reports include recommended interventions . National LEDS . Agencies secure funding (national strategic beyond the 4-year plans) period in order to . Local LEDS anchored further develop and on mandated Local sustain results. Climate Change and . Host government Action Plans maintain commitment to process. . Predicted natural disasters do not disrupt project activities. Output 1: . Number of person- . Pre- and post-test . Commitment by, and In-country capacity hours of training evaluation capacity of host on LED is completed in climate . Reports produced, government and strengthened change as a result of outputs agencies to implement U.S. Government national climate change assistance strategies and to (GCC 4.8.2-29) participate in regional . Number of institutions processes on an ongoing with improved basis, can be maintained. capacity to address climate change issues as a result of U.S. Government assistance (GCC 4.8.2-14) Activities 1 1.1 National . Report on the results . Quarterly and annual energy of the analysis reports forecasting . Type and number of . M&E Plan and analytical tools used optimization . Number of person- . Attendance sheets hours training . Type and number of . Annual program technical specialists or implementation

ANNUAL REPORT FOR FY 2016 17 TABLE 1. LOGICAL FRAMEWORK

Narrative Indicators Data Sources Assumptions Summary subject matter experts review with GPH provided 1.2 Power grid . Type and number of . Annual program integration technical specialists or implementation and grid subject matter experts review with GPH impact provided assessment . Number of person- . Quarterly and annual training hours training reports . Attendance sheets . M&E Plan . Pre- and post-test evaluation . Training evaluation 1.3 LEDS and . Type and number of . Annual program clean energy public outreach implementation promotion materials review with GPH . Type and duration of . Quarterly and annual media broadcast or reports publications . Number of person- . M&E Plan hours in training, conferences, or meetings . Number of media . Resource/Information, reports Education, and Communication (IEC) materials disseminated . Media and other reports . Event write-up . Activity assessment 1.4 Mitigation . Type and number of . Annual program actions in technical specialists or implementation partner local subject matter experts review with GPH government provided units are . Number of person- . Quarterly and annual identified hours training, reports through their conferences, or respective meetings Local Climate Change Action . LCCAPs prepared and . Attendance sheets Plans endorsed by LGUs . Media report (LCCAPs) . Pre- and post-test evaluation . Training evaluation . M&E Plan

ANNUAL REPORT FOR FY 2016 18 TABLE 1. LOGICAL FRAMEWORK

Narrative Indicators Data Sources Assumptions Summary Output 2: . Amount of investment . Total value of projects . Government capacity Investments into mobilized for climate indicated in the and incentivization are clean energy projects change supported by business plans or available to support are increased U.S. Government proposals approved or investment projects. assistance (GCC 4.8.2- accepted by a financing . Financial resource 10) in USD million institution or investor capacity sustained. . Clean energy genera- . Value of contributions tion capacity installed of government or rehabilitated as a counterparts and result of U.S. Govern- private sector partners ment assistance as verified through (GCC 4.8.2-32) estimates of value of in MW materials, expertise, *Clean energy generation and time provided capacity supported by U.S. Government assistance that has achieved financial closure (GCC 4.8.2-33)5 *Projected emissions reduced or avoided through 2030 from adopted laws, policies, regulations, or technologies related to clean energy as supported by U.S. Government assistance (GCC 4.8.2-34)6 Activities 2 2.1 Prototype . Type and number of . Before and after . Cooperation of EVOSS technical specialists or evaluation of the government agencies established subject matter experts business process and approval in the provided creation of a renewable energy one shared system are committed. . Number of person- . Minutes of meetings hours trainings, and feedback from conferences, or project developers and meetings financing institutions . Interview of GPH counterparts . Document review 2.2 Investment . Type and number of . Interview of project forums and technical specialists or developers and

5. New and additional indicator for FY 2015. No Target set. 6. New and additional indicator for FY 2015. No Target set.

ANNUAL REPORT FOR FY 2016 19 TABLE 1. LOGICAL FRAMEWORK

Narrative Indicators Data Sources Assumptions Summary deal-flow subject matter experts financing institutions sessions for provided project . Number of person- . Minutes of forums developers hours trainings, . Attendance sheets and financing conferences, or institutions meetings 2.3 Business . Type and number of . Copy of business plans . Project developers have planning and technical specialists or and investment a basic business plan or financing subject matter experts proposals a pre-feasibility study trainings for provided prepared clean energy . Type and number of . Documents review: project analytical tools used before-after developers . Number of person- comparisons hours training . Copy of investment agreement or power supply agreement 2.4 Clean energy . Quantity of . Interview of project . Clean energy project test case operational renewable developers and will be funded by a project electric generation financing institutions project developer, completion capacity or energy . Site visit (monitoring of financing institution, savings project, i.e., Actual kWh and/or investors production)

ANNUAL REPORT FOR FY 2016 20 SECTION 2: ACTIVITY IMPLEMENTATION PROGRESS

A. PROGRESS NARRATIVE At the end of FY 2016, the project remains on track, with LOP targets being met variably from 38 percent to more than 100 percent levels of achievement for the different indicators. Details of quantitative progress are presented in Tables 2 through 4 in Section 2 of this report. For its two major LOP deliverables, the project stands at 38.7 percent of targets for GHG emissions reduced, avoided, and/or sequestered and 47.3 percent for clean energy capacity installed, as of September 30, 2016. The remaining targets are expected to be achieved in the final fiscal year as key activities currently being supported such as clean energy projects and policy measures come online and become active contributors to key project deliverables. All performance indicators will later be evaluated from February 1 to January 31 of a year as B-LEADERS was awarded on February 1, 2014.

TABLE 2. SUMMARY OF PROJECT PROGRESS Performance Indicator Comments and Explanatory Notes Intermediate Result (IR) 3.2: Natural Resources and Environmental Management Improved GHG emissions, estimated in In FY 2016 a total of 133,472.50 mtCO2e was achieved for this mtCO2e, reduced, sequestered, indicator. This is the equivalent of taking about 25,577 gasoline and/or avoided as a result of powered cars off the road in a year, or switching 4.3 million U.S. Government assistance incandescent lamps to light emitting diode lighting, or like growing (GCC 4.8-7) more than 3.1 million tree seedlings for 10 years. This brings accumulated actual output as of September 30, 2016, to a total of 139,291.01 mtCO2e, which is 38.7% of the LOP Target. FY 2015 reported an outcome of 5,735.07 mtCO2e. FY 2014 reported an outcome of 83.44 mtCO2e.

Sub-IR 3.2.3: Climate Change Resilience and Mitigation Increased Number of laws, policies, A total of eight policies, strategies, plans, and regulations was achieved strategies, plans, or regulations this fiscal year. This brings accumulated output to 15, which is 75% of addressing climate change LOP target. The outputs achieved were as follows, ranked from the (mitigation or adaptation) more recent ones: and/or biodiversity 1. Executive Order (EO) No. 17 series of 2016: An order adopting conservation officially the Implementing Rules and Regulations (IRR) for the Green proposed, adopted, or Building Code of Mandaue; implemented as a result of

ANNUAL REPORT FOR FY 2016 21 TABLE 2. SUMMARY OF PROJECT PROGRESS Performance Indicator Comments and Explanatory Notes U.S. Government assistance 2. Procedures for the Review of Bilateral Power Supply (GCC 4.8.2-28) Agreements (PSAs) by the Technical Working Group (TWG) in accordance with Section 45 (b) of the Electric Power Industry Reform Act of 2001; 3. Tumaga River Water Quality Management Area Governing Board (TR WQMA GB) Resolution No. 2016-05; Resolution authorizing the TWG to lead in the Conduct of the Carbon Sequestration Inventory Thru the USAID B-LEADERS Project (Resolution on Zamboanga City GHG); 4. Batangas City’s Green Business Summit Declaration; 5. Mandaue City’s New Comprehensive Investment Code (incorporating incentive provisions for green buildings); 6. Ordinance No. 13-2015-1047 also known as The Green Building Ordinance of Mandaue City; 7. 2015 APEC Energy Ministerial Meeting Cebu Declaration; 8. Proclamation No. 1160 Declaring November 25 of every year as “National Day for Youth in Climate Action”; FY 2015 reported six outputs: 9. Executive Order 174 – Institutionalizing the Philippines GHG Inventory Management and Reporting System; 10. Review of ERC’s Rules Governing the Issuance of Licenses or Authorization to Retail Electricity Supplier and Prescribing the Requirements and Conditions Therefor; 11. Review of ERC’s Rules for Contestability; 12. Urban Environmental Accord (UEA) Youth Declaration; 13. UEA Iloilo Summit Declaration; 14. Intended Nationally Determined Contribution (INDC); and FY 2014 reported one output: 15. Amended and Restated Memorandum of Understanding on Enhancing Capacity for Low Emission Development Strategies (EC-LEDS) between the CCC and USAID.

Number of institutions with The capacity of 189 new and unique institutions was improved during improved capacity to address FY 2016. This brings accumulated total to 441, which is 882% of LOP climate change issues as a target. result of U.S. Government FY 2015 reported an outcome of 243 institutions. assistance (GCC 4.8.2-14) FY 2014 reported an outcome of 9 institutions. Clean energy generation In FY 2016, the project achieved 61.55 MW of clean energy capacity capacity installed or through its various project development support and mentoring rehabilitated as a result of U.S. programs. This brought accumulated output to 94.70 MW, which is Government assistance 47.3% of the LOP Target. (GCC 4.8.2-32) FY 2016 outputs include 1. CleanTech Global Renewables Incorporated’s 15 MW Bulacan Solar Photovoltaic (PV) Plant, 2. nv vogt Philippines’ 6.23 MW Centrala Solar Project, 3. nv vogt Philippines’ 7.48 MW Dalayap Solar Project, 4. nv vogt Philippines’ 8.84 MW Centrala Solar Project, 5. Bicol Biomass Energy Corporation’s (BBEC) 5 MW rice husk-

ANNUAL REPORT FOR FY 2016 22 TABLE 2. SUMMARY OF PROJECT PROGRESS Performance Indicator Comments and Explanatory Notes fired power plant, and 6. Power Sector Assets and Liabilities Management Corporation’s (PSALM) rehabilitation and uprating of Agus VI hydroelectric power plant units 1 and 2 (9.5 MW each), resulting in an incremental combined capacity of 19 MW. FY 2015 reported an outcome of 33.12 MW. FY 2014 reported an outcome of 0.025 MW.

Clean energy generation This is an additional and new indicator based on the GCC Indicator capacity supported by U.S. Handbook, which was updated June 10, 2015. There are no targets set Government assistance that has for this indicator and is not considered a deliverable but it is being achieved financial closure tracked by the project. To date, this indicator stands at 138.55 MW. (GCC 4.8.2-33) Specific achievement for new projects that have achieved financial closure in FY 2016 was 74.55 MW. FY 2016 outputs include 1. CleanTech Global’s 15 MW Bulacan Solar PV Plant; 2. nv vogt Philippines’ 6.23 MW Centrala Solar Project; 3. nv vogt Philippines’ 7.48 MW Dalayap Solar Project; 4. nv vogt Philippines’ 8.84 MW Centrala Solar Project; 5. PSALM’s rehabilitation and uprating of Agus VI hydroelectric power plant units, resulting in an incremental combined capacity of 19 MW; 6. Biotech Farms, Incorporated’s 5 MW rice husk-fired plant; 7. Biotech Farms, Incorporated’s 3 MW biogas power project; and 8. San Jose City Solar Corporation’s 10 MW Solar PV Plant. Projected GHG emissions This is an additional and new indicator based on the GCC Indicator reduced or avoided through Handbook, which was updated June 10, 2015. There are no targets set 2030 from adopted laws, for this indicator and is not considered a deliverable but it is being policies, regulations, or tracked by the project. FY 2016 value for this indicator is estimated at technologies related to clean 1,410,691.6 mtCO2e for the period 2015-2030 with the following energy as supported by U.S. breakdown: Government assistance in 2015 through 2020 – 421,893.5 mtCO2e mtCO2e (GCC 4.8.2-34) 2021 through 2025 – 500,594.2 mtCO2e 2026 through 2030 – 488,203.9 mtCO2e If FY 2015 results were taken into account, projected GHG emissions avoidance from 2015 through 2030 would yield a sum of 3,229,123.1 mtCO2e. These values were estimated and revalidated using the latest version of USAID CLEER.

ANNUAL REPORT FOR FY 2016 23 TABLE 2. SUMMARY OF PROJECT PROGRESS Performance Indicator Comments and Explanatory Notes Amount of investment In FY 2016, a total of USD 116,781,761.57 worth of investments for mobilized (in USD) for climate climate change mitigation related activities were mobilized with change supported by U.S. breakdown as follows: Government assistance Private investments mobilized for CE – USD 81,436,000, which were (GCC 4.8.2-10) attributed to one biomass and four solar PV power plants in FY 2016. Public investment mobilized for CE – USD 35,345,762, which was attributed to the rehabilitation and uprating of Agus VI plant. This brings accumulated output to USD 185,361,761.57, which is 92.7% of LOP target. FY 2015 reported an output of USD 68.58 million. FY 2014 reported zero output against a zero target. Sub-Activity Result Number of person-hours of A total of 13,012 person-hours of trainings was provided by the project training completed in climate this fiscal year. This brings the accumulated total to 35,456 person change as a result of hours which is 591% of LOP target. U.S. Government assistance FY 2015 reported an output of 21,404 person-hours. (GCC 4.8.2-29) FY 2014 reported an output of 1,040 person-hours. Number of climate and/or Seven tools, technologies, and methodologies were achieved in FY 2016. adaptation tools, technologies, This brings the accumulated total to 17, which is 94% of the LOP Target. and methodologies developed, The outputs were as follows: tested, and/or adopted as a 1. PLEXOS Modeling Software for Greening the Grid (GtG) Study, result of U.S. Government 2. Green Building Investment Package Toolkit, assistance 3. LGU GHG Guidance Manual,

(Custom Indicator) 4. CBA Mitigation Toolkit LEAP (Energy), 5. CBA Mitigation Toolkit LEAP (Transport), 6. CBA Mitigation Toolkit (ALU) MS Excel-based Worksheet, 7. CBA Mitigation Toolkit (Waste) MS Excel-based Worksheet, FY 2015 reported four outputs: 8. LEAP Toolkit, 9. Energy Efficiency Technical and Financial Evaluation Model, 10. EVOSS, 11. Solar Power Plant Financial Model, FY 2014 reported six outputs: 12. Agriculture, Forestry, and Other Land Use Carbon Calculator, 13. Business As Usual GHG Emissions Tool, 14. GHG Calculator Buildings, 15. GHG Calculator Energy, 16. GHG Calculator Transportation, and 17. GHG Calculator Waste.

ANNUAL REPORT FOR FY 2016 24 B. QUANTITATIVE RESULTS FOR FY 2016

The following tables present the achievements of the project as of September 30, 2016.

TABLE 3. FISCAL YEAR 2016 CUMULATIVE ACTUAL RESULTS

FY 2016 Indicators FY 2016 FY 2016 Results vs. Target7 Results Target GHG emissions, estimated in mtCO2e, reduced, sequestered, and/or avoided as a result of U.S. Government assistance 46,126.17 133,472.5 289% (GCC 4.8-7) Number of laws, policies, strategies, plans, or regulations addressing climate change (mitigation or adaptation) and/or biodiversity conservation officially proposed, adopted, or 8 8 100% implemented as a result of U.S. Government assistance (GCC 4.8.2-28) Number of person-hours of training completed in climate change as a result of U.S. Government assistance 1,600 13,012 813% (GCC 4.8.2-29) Number of institutions with improved capacity to address climate change issues as a result of U.S. Government assistance 15 189 1,260% (GCC 4.8.2-14) Number of climate and/or adaptation tools, technologies, and methodologies developed, tested, and/or adopted as a result of U.S. Government assistance 6 7 117% (Custom Indicator) Clean energy generation capacity installed or rehabilitated as 43 61.55 143% a result of U.S. Government assistance (GCC 4.8.2-32) in MW Clean energy U.S. Government assistance that has achieved Not financial closure in MW No target set 74.55 applicable (GCC 4.8.2-33) (NA) Projected GHG emissions reduced or avoided through 2030 from adopted laws, policies, regulations, or technologies related to clean energy as supported by U.S. Government No target set 1,410,691.6 NA assistance in mtCO2e (GCC 4.8.2-34) Amount of investment mobilized (in USD) for climate change supported by U.S. Government assistance (GCC 4.8.2-10) 43 116.78 272% in USD million

7 The targets for the project’s performance indicators are set on an annual basis beginning February of each year and ending January of the next year. At the end of the project, all performance indicators will later cover an actual yearly accounting from February 1 to January 31 of a year as B-LEADERS was awarded on February 1, 2014 (as per B-LEADERS Performance Monitoring Plan). For annual reporting purposes, the report covers achievements from October 1 of the preceding year until September 30 of the current year, i.e., FY.

ANNUAL REPORT FOR FY 2016 25

TABLE 4. LOP TARGETS VERSUS ACCUMULATED ACTUAL RESULTS UP TO END OF FY 2016

FY FY FY Accumulated LOP Indicators 2014 2015 2016 Result8 vs. Target Results Results Results LOP Target GHG emissions, estimated in mtCO2e, reduced, sequestered, and/or avoided as a 5,735.07 133,472.5 360,000 38.7% result of U.S. Government assistance 83.44 (GCC 4.8-7) Number of laws, policies, strategies, plans, or regulations addressing climate change (mitigation or adaptation) and/or bio- 1 6 8 20 75% diversity conservation officially proposed, adopted, or implemented as a result of U.S. Government assistance (GCC 4.8.2-28) Number of person-hours of training completed in climate change as a result of U.S. 1,040 21,404 13,012 6,000 591% Government assistance (GCC 4.8.2-29) Number of institutions with improved capacity to address climate change issues as a 9 243 189 50 882% result of U.S. Government assistance (GCC 4.8.2-14) Number of climate and/or adaptation tools, technologies, and methodologies developed, 6 4 7 18 94% tested, and/or adopted as a result of U.S. Government assistance (Custom Indicator) Clean energy generation capacity installed or rehabilitated as a result of U.S. Government 0.025 33.12 61.55 200 47.3% assistance (GCC 4.8.2-32) in MW Clean energy generation capacity supported To be by U.S. Government assistance that has deter- NA 64 74.55 NA achieved financial closure in MW mined (GCC 4.8.2-33) (TBD) Projected GHG emissions reduced or avoided through 2030 from adopted laws, policies, regulations, or technologies related to clean NA 1,818,432 1,410,692 TBD NA energy as supported by U.S. Government assistance in mtCO2e (GCC 4.8.2-34) Amount of investment mobilized (in USD) for climate change supported by U.S. 0 68.58 116.78 200 92.7% Government assistance (GCC 4.8.2-10) in USD million

8 Accumulated Result = FY 2014 Result + FY 2015 Result + FY 2016 Result.

ANNUAL REPORT FOR FY 2016 26 C. IMPLEMENTATION STATUS Activities, outcomes, and outputs continue to consistently align with and support the key tasks of strengthening capacity for low emission development (Task 1) and increasing investments into clean energy projects (Task 2). Activities to establish institutional mandate, structure, and systems and to strengthen policy and regulatory support for LEDS continue to be done in an integrated manner. This is being done to strengthen the capacity of partners in formulating and implementing LEDS. In a similar approach, work on establishing clean energy networks and support systems and increasing clean energy investments continue to be done in a complementary manner to expedite the realization of additional clean energy capacity. The following key activities for Tasks 1 and 2 illustrate how the above-stated approaches were actually implemented in FY 2016. Focused support on LEDS is provided to select LGUs contributing to the CDI of the GPH and the U.S. Government’s (USG) Partnership for Growth. Crosscutting activities are equally described in the succeeding questions to present how integrative activities strengthened the link among subcomponents and between the two major tasks.

Task 1: In-Country Capacity on Low Emission Development Strengthened

In FY 2016, B-LEADERS initiated and sustained a number of capacity building activities in various sectors that included national government agencies, local government units, regional government bodies, private companies, academic institutions, electric cooperatives, and non-government organizations. This multi-sectoral approach was sustained in due recognition of a “whole of economy approach” necessary for low emission development strategies to work. The following key activities describe the critical building blocks that the project has been shaping and putting in place as it pursued USAID’s higher level goals in the past fiscal year.

Enhanced Cost-Benefit Analysis for Climate Change Mitigation B-LEADERS in partnership with the CCC conducted a series of consultations with sectoral stakeholders to improve the country’s quantitative information base on climate change mitigation through an Enhanced Mitigation Cost-Benefit Analysis (CBA) study. These consultations were organized from April 18 to 28, 2016, in response to the government’s and other stakeholders’ request for support in revisiting the parameters and assumptions of the relevant sectors as part of the country’s roadmap in the transition from its INDC to a Nationally Determined Contribution (NDC). These activities were built on an earlier B-LEADERS support to customize and develop sectoral CBA models, which served as inputs to the Philippines’ INDC, which was submitted on October 1, 2015, to the United Nations Framework Convention on Climate Change (UNFCCC). Guidance was provided to, and sought from, the energy; transport; agriculture; forestry and land use (AFOLU); solid waste; wastewater; and the industrial processes and product use (IPPU) sectors in improving the datasets used for projecting business-as-usual (BAU) scenarios from 2000 to 2050 and in further identifying additional mitigating measures to reduce GHG emissions and enhance sinks. The interim enhanced CBA results were likewise consulted with the private sector, the ERC, and the CCC.

ANNUAL REPORT FOR FY 2016 27 The consultations resulted in refining the parameters and assumptions used in establishing sectoral BAU scenarios. The current list of sectoral mitigation actions were also reviewed with new additional measures identified. The new calculations presented during the consultations reflected the impact of higher gross domestic product (GDP) and population growth rate projections assumed in the INDC submission. Through the process, the common issues raised were the population and GDP growth rates that should be used in the CBA models and a needed oversight and interagency decision regarding the start year of BAU projections. Details of these consultations can be found in Annex B of this report.

Long-range Energy Alternatives Planning System Software Training for the Transport and Energy Sectors While the CBA study is being updated, B-LEADERS started capacitating sectoral lead agencies on the use of sectoral CBA tools, which were previously developed and customized by the project. The tools were based on Long-range Energy Alternatives Planning System (LEAP), which is a flexible and widely used software tool for optimizing energy demand and supply and for modeling mitigation technologies and policies across the energy and transport sectors, as well as other sectors. Last December 2015, a webinar and a capacity building workshop were conducted for the Environmentally Sustainable Initiatives Transportation Unit (ESITU) of the Department of Transportation (DOTr). These served as precursor to the hands-on training for the transport sector held on April 22 and 25, 2016, wherein a comprehensive set of exercises was administered to familiarize the transport experts in navigating through the customized LEAP CBA Model. B-LEADERS also provided the experts from the energy (power) sector with skills on how to navigate through the LEAP Software used in the CBA model. Through the hands-on LEAP training held last September 26 to 29, participants from the different bureaus of DOE were able to validate options for LEDS. Details of these LEAP trainings are summarized in Annex C of this report.

Agriculture and Land Use 2006 Software Training for the Agriculture Sector For the agriculture sector, the CCC and USAID conducted a training on GHG inventory using the ALU 2006 Software last August 22 to 24. The training was attended by 39 representatives from 11 different government agencies, including the Bureau of Soil and Water Management, Bureau of Plant Industry, National Dairy Authority, Fertilizer and Pesticide Authority, and Bureau of Animal Industry. Through the hands-on training, participants gained a better understanding of the importance of filling in critical data gaps and of using country specific data to achieve a more robust analysis of the country’s GHG emissions. Details of this activity are in Annex D of this report.

Analysis of the Implementation Requirements of Mitigation Actions in the Forestry Sector The CCC had been encouraging the lead agencies to analyze the implementation requirements of climate change mitigation options in their respective sectors as part of the NDC roadmap. Last July 12, B-LEADERS provided backstopping support to the focus group discussion, which examined the latest list of actions that could be implemented by the forestry sector to reduce and sequester GHGs. The CCC and the Forest Management Bureau (FMB) of the DENR identified related policy, technical, financial, and capacity building prerequisites.

ANNUAL REPORT FOR FY 2016 28 Water Energy Nexus Study To provide a basis for considering hydropower as a mitigation action in the energy sector, MinDA with support of B-LEADERS conducted a consultation for the Water-Energy Nexus Study on May 3, 2016. In attendance were 72 stakeholders from the four major river basins of Mindanao, namely Davao, Mindanao, Agus-Ranao, and Agusan. The consultation introduced the proposed study and nexus concepts to stakeholders while gathering inputs on data sources, model assumptions, and scenario characteristics. A plenary discussion was held in order to identify key uncertainties in the energy and water systems in Mindanao, possible resource management, technology deployment, infrastructure development pathways in the energy and water sectors, and quantifying trade-offs between scenarios and highest priority scenarios for stakeholders. A guided group exercise was done to gather important stakeholder input on project scenarios and metrics for modelling. Documentation of the activity is available in Annex E.

Fora on Nationally Determined Contribution Roadmap B-LEADERS supported the CCC in conducting two local consultative fora as the Philippines prepares the roadmap for its NDC on climate change mitigation. The first forum was held last March 11 in Davao City while the second event was held last June 10 in Cagayan de Oro City. These fora aimed at fostering participatory governance to trigger bottom-up low carbon development and specifically to orient local and regional stakeholders on the Paris Agreement, revisit the submitted INDC, and present the draft NDC roadmap. Workshops were later conducted to gather insights on the proposed sectoral climate change mitigation actions and draw up strategies to integrate the NDC into local development plans. B-LEADERS had been supporting the CCC and other lead government agencies in the conduct of enhanced CBA study—a key quantitative information base for the country’s NDC. The information derived from the CBA study served as reference for the workshop sessions. Details of this activity are in Annex F of this report.

National Energy Policy Review and Framework Development The CCC in partnership with B-LEADERS launched the National Energy Policy Review (NEPR) and framework development through a facilitative process pursuant to CCC Resolution No. 2016-01 otherwise known as “Resolution on the Development of a Clear Policy on Coal-Fired Power Plants in Pursuit of a Low Carbon Development Pathway for the Philippines.” Held at Kalayaan Hall, Malacañang Palace in Manila on June 16, 2016, the high-level event was attended by national legislators, government agencies, the private sector, development organizations, civil society, religious groups, the academe, and selected members of the diplomatic corps, including U.S. Embassy Economic Officer Mr. Richard Bakewell. The CCC Vice Chair and Secretary Emmanuel M. De Guzman laid down CCC’s plan for the next six months to adopt a whole-of-nation approach towards a vision of long-term decarbonization of the energy sector in line with the Philippines’ NDC on climate change mitigation. Senator Loren Legarda emphasized the urgent need to implement existing environmental laws, called for an increased transparency in the issuance of Environmental Compliance Certificates (ECC) to coal- fired power plants, and pushed for a grid parity between coal and solar fuel technologies. Father Edwin Gariguez of the Catholic Bishops’ Conference of the Philippines and Mr. Richard Tantoco of the Energy Development Corporation both expressed full support to “the ecological conversion of energy policies” and “the country’s decarbonization,” respectively. B-LEADERS consultant Atty. Antonio La Viña presented an initial list of thematic policy issue statements compiled by the project,

ANNUAL REPORT FOR FY 2016 29 which would later be elaborated through a consultative process. Complementary to the planned multi-stakeholder consultations, focus group discussions (FGDs), and business summits, the CCC also introduced the NEPR website to provide a platform for a wider exchange of ideas among the general public using the official hashtag #REnewenergyPH. On September 2016, B-LEADERS completed the first draft of the study entitled: “National Energy Policy Review: Moving Towards A Low Carbon Pathway.” The preliminary report identified policy provisions that are inconsistent with INDC, outdated, and has to be amended, as well as important areas that are still not subject to specific and clear policy or regulation. The study aimed to provide lawmakers a foundation upon which current energy and environment laws may be amended or repealed or for new laws to be passed. Details of this activity and the draft report can be found in Annex G.

Review of the Philippine Power Sector’s Reserve Requirements and Fuel Mix Policy Under DOE’s new leadership, USAID led by Deputy Mission Director Clay Epperson paid a courtesy call to the newly appointed DOE Secretary Alfonso Cusi. The meeting reaffirmed the continuing partnership between USAID and DOE with specific focus on technical assistance needs of the government agency in the near term. An article in the Asian Journal dated August 11, 2016, quoted Secretary Cusi stating that “Our main concern now is to increase the availability of quality, reliable, secure, and affordable supply,” stressing the need amidst the fluctuating power supply situation of the county. Secretary Cusi requested USAID through B-LEADERS to review the current fuel mix policy, the state of the local power sector’s reserve requirements, and the future energy demand in light of the current administration’s thrust to encourage the increased growth of the manufacturing sector. The study would focus on the energy requirements for economic growth trends, load consumption profiles for energy consumers, emerging energy technologies and local industry readiness, transmission configurations and network development, and the availability of indigenous energy for ensuring stable pricing to lessen dependence on energy that is affected by international market prices. The Secretary also requested a revalidation of the assumptions and the calculations underlying the updated Philippine Energy Plan. B-LEADERS developed a fuel mix calculator designed to determine the “ideal” fuel mix that supports the economic thrust and development goals of the GPH. The B-LEADERS team presented its initial output to DOE Assistant Secretary Richie Pilares and the incoming Chairman of the National Renewable Energy Board (NREB), Atty. Jose M. Layug, Jr. The fuel mix policy will be anchored on a set of criteria that includes a) affordability and price; b) grid stability; c) energy security; d) environmental protection; and e) prospects for future development. B-LEADERS also developed a set of parameters that will form the basis for the scoring of each criterion in an attempt to objectively quantify the value of these criteria in the quest for the optimal and “ideal” fuel mix for the country. B-LEADERS likewise provides technical advisory support to Senator William Gatchalian, who currently sits as the Chair for the Senate Committee on Energy. The team has made presentations to the Senator and his technical team covering areas on the INDC, system losses, and regulatory pricing. Documentation of the activity is available in Annex H.

ANNUAL REPORT FOR FY 2016 30 Preparation of the Asia-Pacific Economic Cooperation Guidelines on Improving Energy Resiliency in Off-grid Areas Taking off from the 2015 APEC Cebu Declaration, the draft Guidelines to Improve Climate Change Resiliency of Energy Facilities in Off-Grid Areas was another product of B-LEADERS’ work with DOE in putting together a practical guide for government officials, private institutions, communities, and other stakeholders in the Asia-Pacific region on how to increase climate resilience of energy systems in off-grid areas. The project provided technical and organizational support to DOE in the preparation and conduct of the Workshop on Improving Energy Resiliency in Off-Grid Areas in APEC Member Economies held on June 15-17, 2016, in Boracay, Aklan. B-LEADERS worked closely with DOE months leading up to the workshop, from designing the program, organizing planning sessions, as well as drafting the “Framework to Develop Energy Resiliency in Off-grid Areas.” The workshop was hosted by the Philippines and attended by representatives from member economies of the APEC community, namely Thailand, Indonesia, Malaysia, Australia, and China. The workshop aimed to facilitate the sharing of experiences on various success stories and best practices covering issues such as policies, regulations, and laws; institutional arrangements and coordination; and funding opportunities as well as the role of women in promoting energy resiliency. The participants also had the chance to visit the 14-kW off-grid solar charging station in Boracay Island that was implemented in 2013 by USAID. The main output of the workshop is the publication of the Guidelines to Improve Climate Change Resiliency of Energy Facilities in Off-Grid Areas, which member economies can adopt or contextualize according to their respective and individual circumstances. The draft was circulated to member economies and other institutions within the reporting quarter. Among those that already provided comments were the governments of Australia, Canada, and the Philippines, as well as experts from the Asia Pacific Energy Research Center and the International Energy Agency. Comments are currently being consolidated by B-LEADERS for DOE’s final review by October 2016 and eventual transmittal to APEC Secretariat. Details of this activity including the draft guidelines are available in Annex I of this report.

Greening the Grid Study On June 3, 2016, B-LEADERS Project and the National Renewable Energy Laboratory (NREL) worked with DOE to sustain momentum in the conduct of a grid integration study. USAID’s “Greening the Grid” project provides resource and guidance to support countries in addressing the constraints for integrating more variable RE into the electricity grid. USAID’s Office of Environment former Deputy Chief Rebecca Carter and NREL’s Jessica Katz and Clayton Barrows met with DOE during the Second GtG Technical Advisory Committee (TAC) meeting to present and vet the initial GtG models developed since January 2016. DOE Undersecretary Mylene Capongcol emphasized the importance of the study as one of the key planning tools that could help evaluate the performance of the Philippines’ power system in relation to the requirements of RE integration. The initial models were generated with guidance from NREL with the application of a cutting-edge software that could generate RE grid integration scenarios and options. B-LEADERS procured on behalf of the DOE the first annual license for PLEXOS® for Power Systems Version 7 software. DOE currently uses this modeling software as a tool to generate RE grid integration

ANNUAL REPORT FOR FY 2016 31 scenarios and options and help evaluate the performance of the Philippines’ power system in relation to the requirements of RE integration. Members of the GtG’s Modelling Working Group (MWG) continued coordination through a series of online meetings throughout the months of June, July, and September to improve and validate the 2014 and 2030 scenarios of the study. On June 29, 2016, the MWG was able to present and validate the 2014 reference case to Undersecretary Mylene Capongcol, Director Jesus Tamang, and Director Irma Exconde of DOE, who provided comments and suggestions on the summary slide decks before it was circulated to members of the core and ad hoc TAC members. The validated summary slide decks for the 2014 scenario had adjustments on the capacity factor of various power plants, system dispatch data, load flows, outage rates, and feedback notes from the discussion and agreements during the Second TAC meeting. The MWG is currently working on the development of the 2030 model before this is finalized and presented in October during the Third TAC meeting. Details of this report are available in Annex J of this report.

Public Consultation on the Renewable Portfolio Standards In FY 2016, the project supported DOE on its last public consultation on the revised Renewable Portfolio Standards (RPS), which was held on June 16, 2016, in Taguig City. Since 2010, USAID supported the drafting as well as the conduct of nationwide public consultations on the RPS. This is a policy mechanism which obliges electric power industry participants such as generators, distribution utilities, or suppliers to source or produce a specified fraction of their electricity from eligible RE resources. This market creation policy mechanism is designed to increase the utilization of RE by enhancing national and local capabilities on using RE systems and promoting their efficient and cost-effective applications through fiscal and non-fiscal incentives. The RPS can also support the Philippine government’s goal to achieve energy balance mix and contribute to the achievement of the GHG emission reduction target as espoused in the country’s INDC. As USAID committed to sustain its support for the RPS, B-LEADERS provided technical and logistical support to the last and final public consultation held last June 16. The team also assisted DOE in drafting the message that was delivered by DOE Secretary Zenaida Monsada that day. More than 200 participants from the government, civil society, RE developers, and financing institutions attended the consultation. The consultation is intended to lead to the eventual enactment of the RPS via a department order and facilitate the attainment of at least 35 percent of RE share in the national energy mix by 2030. DOE assured the stakeholders that their concerns especially on price and consumer impact would be seriously taken into consideration in its planned series of studies prior to implementation. Documentation for this activity is available in Annex K.

Review of Power Distribution Standards In support of the National Electrification Administration’s (NEA) initiative to design more climate resilient power systems starting with the review of the country’s distribution design and construction standards, B-LEADERS conducted a series of meetings with key stakeholders from NEA and the Leyte Electric Cooperative II (LEYECO II) to gather relevant information on Philippine power systems in relation to building climate resilient systems. The extent of damage to power systems in Tacloban City caused by the high wind speeds and storm surges brought about by Typhoon Yolanda were discussed during a meeting of B-LEADERS with LEYECO II General Manager Engr. Fernan Tan in Tacloban City last April. Engr. Tan shared the

ANNUAL REPORT FOR FY 2016 32 utility’s efforts to re-establish operation of the 1,800 circuit kilometers power system of LEYECO II and their initiatives to provide a more climate resilient power system for their franchise area. Issues such as the scarcity of materials and the urgency of re-establishing power systems right after the typhoon resulted in the procurement and installation of substandard materials. The team visited substations within the LEYECO II franchise that were not destroyed by Typhoon Yolanda as well as areas within Tacloban City and the neighboring rural towns wherein the distribution poles were most vulnerable to the effects of the typhoon. The technical inputs from NEA and LEYECO II will be valuable as B-LEADERS drafts an added chapter in the existing distribution network building code to address climate resilience specifically for distribution utilities highly impacted by extreme weather patterns. Details are available in Annex L of this report.

Capacity Building of Mindanao’s Electric Cooperatives on Demand Side Management In partnership with MinDA, the project conducted an Energy Demand Side Management (DSM) Training last March 18 in Cagayan de Oro City. Association of Mindanao Rural Electric Cooperatives Inc. (AMRECO) President Mr. Sergio Dagooc underscored the urgent need to build the capacity of electric cooperatives and distribution utilities on DSM in view of the continuing power supply shortages in the region. The participating electric cooperatives and distribution utilities learned about load profile analysis and demand reduction strategies during periods of constrained power supply. The participants intended to plan and implement DSM strategies in their respective electric cooperatives. Details of this activity are in Annex M of this report.

Energy Regulatory Commission Technical Working Group Training on the Competitive Selection Process (CSP) and Drafting of the CSP Guidelines Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (EPIRA), created the ERC as an independent, quasi-judicial regulatory body tasked to promote competition, encourage market development, ensure customer choice, and penalize abuse of market power in the electricity industry. Based on a request from the ERC to strengthen the technical competence of its staff, B-LEADERS supported the conduct of a series of training workshops for its key personnel. On July 14, 2016, the project held a training for members of ERC’s CSP TWG in Pasig City. The technical training for the key staff of the ERC was prioritized to move the discussion on the CSP guidelines by reviewing concepts and gather policy directions from the Commission. The training was attended by Executive Director Neil Simon Silva and Atty. Nathan Marasigan of the Office of the Chairman, with staff from the Legal Service and the PSA TWG. The training provided an overview of the CSP framework, a discussion of critical issues in designing competitive procurements for incremental power supply, and a review of international experiences in CSP. Issues such as regarding the definition of what is least cost in the procurement of energy and the implications of the NDC were also discussed. Moving forward, the project provided additional support in identifying policy options to be reflected in the initial draft of the CSP Implementation Guidelines prepared by the TWG and to be approved by the Commission for public consultation and hearings. Details of this activity and the outline of the CSP Implementation Guidelines are in Annex N of this report.

ERC Technical Working Group Training on Power Supply Agreements Due to the near complete privatization of the National Power Corporation’s generation assets, the ERC has been inundated with applications for the approval of Bilateral PSAs. To cope with the

ANNUAL REPORT FOR FY 2016 33 overwhelming workload, the Commission formed two TWGs to review the applications. Many of the members of the new TWGs are new to the ERC or have not worked on PSA applications in the past. Therefore, capacity building was essential for the TWGs to process the large number of applications in a timely and efficient manner. B-LEADERS developed a two-day workshop held on April 14-15, 2016, designed to provide the TWGs with the background and technical skills to review the PSAs. In addition to background presentations on PSAs, the Renewable Energy Act, the INDC, and Generation Rate Determination, the workshop included a discussion of current issues based on a case study of a recently reviewed and approved PSA. The workshop culminated with a hands-on exercise on the generation rate determination model to calculate wholesale generation rates for a hypothetical power plant. The model demonstrated the allocation of costs between the four rate elements as set out in prior ERC decisions, which are the capital recovery fee, fixed operation and maintenance fee, variable operation and maintenance fee, and the energy fee. Details of this activity are in Annex O of this report.

ERC Market Operations Service (MOS) Team Training on Unbundled Power Rates On August 11, 2016, the project provided a technical training for ERC’s MOS team. Attended by MOS Director Atty. Debora Anastacia Layugan and seven technical staff from the ERC-MOS, the training provided an overview on the concept of unbundling of power rates. As mandated by EPIRA, the unbundling of electricity rates refers to the disaggregation of the charges into the different components of the power networks that are reflected in the electricity bill. The technical training started the discussion on the basic components of power networks such as generation, transmission, and distribution, as these usually take up the majority of the total electricity charges. The training also tackled other charges, particularly system losses, lifeline rates, and universal charges. Other topics discussed include provisions of the Renewable Energy Act of 2008, particularly the Feed-in Tariff (FiT) System and RPS, which provided the participants with a deeper understanding on policies involving the energy sector. Details of this activity are in Annex P of this report.

Capacity Building Series for Enhanced Energy Regulation: ERC and OSG Aside from ERC, B-LEADERS also supported building the capacity of the OSG in addressing regulatory issuances. OSG used to not have a strong power sector focus so they had been going through a series of trainings organized by the project to strengthen ERC to evaluate, manage, and help resolve pending cases on energy projects and PSAs. The project conducted the first and second capacity building sessions on November 23 and December 3, 2015, which provided an overview of ERC’s and OSG’s roles in the review and resolution of pending cases. In attendance were ERC Chair Jose Vicente Salazar, Commissioner Gloria Victoria Yap-Taruc, Director Floresinda Digal, and OSG’s senior and junior state auditors. On February 29, 2016, the project supported the Office of the Chairman of ERC by conducting the third training session wherein the basic concepts of electricity and the power sector and the regulation of the wholesale generation sector were the topics of the training. The March 9 training focused on the regulations covering the generation and supply sectors of the Philippine energy industry. Last March 16, the fifth training for ERC and OSG provided a more detailed presentation of PSAs, which covered key inputs on energy demand forecasting, contract rate design, indexation, and retail competition. The project conducted the sixth power sector learning session last March 30 and covered the fundamentals of power production and different power plant technologies and an

ANNUAL REPORT FOR FY 2016 34 overview of regulatory economics and finance concepts, which are relevant in reviewing PSAs and the pending cases in the ERC. The seventh learning session last April 6 featured the first review of an actual energy supply agreement entered into by a generating company with distribution utilities in Mindanao. On April 13, the project conducted its eighth capacity building session and sustained a review of a PSA case with focus on the decision of the ERC and the salient points of EPIRA for a better understanding of their roles, the rationale for reform, and the hurdles to achieving retail competition. The ninth training session was held last April 27 and elaborated on the Renewable Energy Act, FiT, and the RPS. The 10th session last May 4 focused on RE Technologies and Policies, specifically elaborating on the rationale for RE, basic concepts of RE technologies, and various policy instruments that promote RE. Meanwhile, the 11th session last June 22 covered the latest version of the RPS, which just recently underwent final public consultation. The 12th training session provided an appreciation of the mandated incentives provided for under the Renewable Energy Act, which include the Net-Metering system, Green Energy Option, the RPS, and FiT. As regulators, the concepts are crucial as various agencies align with national strategies aimed at climate change mitigation and clean energy development. On September 21, 2016, B-LEADERS conducted the 13th power sector workshop for the new lawyers of ERC and state auditors of OSG. The session covered theories and principles of power regulation to orient the new batch of ERC and OSG participants. The concept behind the policy on the CSP was also elaborated. Documentation of this series of activities is available in Annex Q.

Trainers Training and Partnership with PLLENRO on GHG Inventory and Accounting USAID has been a constant partner of PLLENRO in its advocacy on addressing environmental challenges and promoting awareness on environmental protection, conservation, climate change, and sustainability. Over the years, PLLENRO and B-LEADERS provided various learning opportunities for local Environment and Natural Resources Office (ENRO) advocates to develop a community of practice among peers through several capacity building programs such as peer-to-peer networking, annual convention, and regional trainings, among others. Additionally, the League serves as a platform of information exchange in recommending local and national responsive environment policies and an avenue for strengthening partnerships with local and international agencies in promoting and developing environment and green growth programs. B-LEADERS helped the organization in the conceptualization of the 7th PLLENRO National Convention held last March 2-4 in Naga City. The event recorded PLLENRO’s highest attendance in seven years with 352 registered representatives from LGUs nationwide. The convention was led by PLLENRO President and Makati City ENRO Mr. Danilo Villas. Naga City Mayor John Bongat delivered the welcome remarks while environmental messages were delivered by DENR Regional Director Engr. Roberto Sheen, the CCC Legal Division Chief Atty. Railla Puno, and B-LEADERS Chief of Party Ms. Divina Chingcuanco. During its First National Executive Meeting last July 28 and 29, PLLENRO planned to mentor LGUs on GHG inventory, energy audit, local climate change action plans (LCCAPs), and GHG management ordinances. USAID supported the group’s plan and organized a Trainers’ Training on Entity and Community Level GHG Inventory and Accounting last August 9. Sixteen future trainers were capacitated on the topic based on the Guidance Manual developed by B-LEADERS and duly

ANNUAL REPORT FOR FY 2016 35 adopted by the CCC. The trainers’ training covered climate change issues, relevance of GHG inventory to the LGUs’ low carbon development pathway, and the role of PLLENRO trainers’ pool in mentoring their fellow LGU environment officers. B-LEADERS also supported PLLENRO in building the capacity of one of its regional chapters. The Training-Workshop on GHG Inventory and Accounting for the League of Environment Officers of Negros (LEON) Occidental was held on August 24-25 in Bacolod City wherein representatives from 11 cities and municipalities, one province, and one academic institution participated. The participants also visited the 132.5 MW Helios Project, which is the biggest solar power plant in Southeast Asia. On August 10, 2016, the PLLENRO team met with the CCC Secretary Emmanuel M. De Guzman wherein PLLENRO was recognized as a partner of the CCC to develop the capacity of LGUs in the preparation of GHG Inventory and LCCAP. This partnership clearly illustrates the success of capacity building activities supported by USAID with the officers and members of PLLENRO. This is also a concrete model of “communities of practice” that can be replicated across sectors within the country. The first venue for the CCC-PLLENRO collaboration was CCC’s Training- Workshop on the People’s Survival Fund and GHG Inventory for LGUs in Mindanao held last September 14 to 16 in Davao City. Trainees consisted of 5 academic institutions and 37 LGUs represented by their environment, planning, general services, and disaster risk reduction and management offices. An introduction to GHG Accounting and Inventory was shared by PLLENRO officers who provided an experiential learning talk in the conduct of local GHG inventory, particularly on data collection and calculation. The session also did a walk-through on the GHG Inventory Toolkit User’s Manual, which was developed by the project and adopted by the CCC as reference for LGUs. Details of these activities are in Annex R of this report.

Community Level GHG Inventory Orientation During CCC Communities for Resilience (CORE) Convergence Fora The Communities for Resilience (CORE) Multi-stakeholder Convergence Forum is an initiative of the CCC to enhance knowledge and upgrade disaster risk resilience of vulnerable communities, optimize mitigation and adaptation opportunities for sustainable development, and strengthen the institutional and technical capacities of LGUs for effective integration into local development plans. Following the ceremonial launch and turnover of the Community-Level GHG Inventory for LGUs in the Philippines: User’s Manual during the First CORE Forum for the Tagum-Libuganon River Basin on March 10, 2016, in Davao City, B-LEADERS continued to conduct mitigation-related sessions as integral part of the fora. During the Second CORE Forum, national agencies, LGUs, and other stakeholders from within the Davao, Cagayan de Oro, Buayan, and Tagoloan River Basins learned about the importance of understanding and accounting for the sources of GHG emissions as basis for developing reliable local climate change mitigation action plans. B-LEADERS shared the basic concepts of GHG accounting at the local level and guided the participants in an actual spreadsheet- based exercise using the tool. The CORE Forum for the Wahig-Inabanga River Basin was held on July 28-29, 2016, in Panglao, Bohol, and participated in by about 100 LGU representatives. During the Third CORE Forum, B- LEADERS provided not only an introduction to GHG inventory, but also a case study of Green Island in Palawan as a model for RE installation in off-grid areas. The project continued to support the Fourth and Fifth CORE Convergence Fora within the reporting year by conducting GHG inventory orientation sessions for the Iloilo and Abra River Basins last August 31 to September 1 in Iloilo City, and last September 26-27 in Baguio City, respectively.

ANNUAL REPORT FOR FY 2016 36 Documentation of these fora is available in Annex S.

Participation in the Asia LEDS 2016 Forum The Asia LEDS Forum is the premier annual gathering of policymakers, donors, practitioners, and other experts involved in enabling low-emission, climate-resilient development in Asia. The annual event aims to facilitate regional coordination; share tools, models, approaches, and best practices; and increase capacity and readiness of practitioners to lead and implement LEDS and green growth initiatives. Participants also work together to identify new regional priorities for action and collaboration, based on common needs expressed by countries represented. Top priorities form the focus areas for activities of the Asia LEDS Partnership in the coming year to ensure that the Partnership’s activities provide value to governments and other stakeholders in the region. Held in Hanoi, Vietnam, the Asia LEDS Forum 2016 focused on the support for countries in mobilizing finance (including capacity building towards development of investment plans and associated investment measures) to implement priority actions included in the countries’ respective INDCs. B-LEADERS organized a well-received deep-dive session during the second day of the Asia LEDS Forum 2016 held last June 27 to 29. The team has been tapped to conceptualize and design the details of this session entitled, “Developing and Using Policy Instruments to Mitigate Risk and Mobilize Investments.” This served as a venue for the GPH delegation to share the Philippines’ experiences in LEDS implementation and practice through theories, policies, use of toolkits, and analysis of case studies. Supported by the project, the delegation served as resource persons to the session, which include representatives from several government and private partners such as the CCC, DOE, ERC, MinDA and the Metro Batangas Business Club (MBBC). B-LEADERS likewise put together an exhibit for the Forum’s Open Space Session, which featured the EVOSS designed to streamline business processes in the energy sector. Over 170 delegates from 23 different countries attended the Asia LEDS Forum 2016. The main forum featured Ms. Lisa Go, Division Chief of DOE’s Investment Promotion Office, as one of the key presenters in the session on “Mobilizing Finance for Implementing Priority Mitigation Actions” during the first day plenary, while Assistant Secretary Cuenca of the CCC gave a keynote message on the second day with focus on financing LEDS. Director Layugan of ERC represented the delegation during the Country Roundtable Discussions on Policy and Regulatory Instruments to Mobilize Finance for NDCs. The three-day forum was concluded with a panel discussion that highlighted the implementation of Sustainable Development Goals in conjunction with INDCs/NDCs. Selected delegates also participated in a dove-tailed workshop on “Mechanisms for Catalyzing Finance for Grid-Connected Clean Energy in Asia,” which was organized from June 30 to July 1, 2016. Documentation of this activity is available in Annex T.

Task 2: Investments into Clean Energy Projects Increased

In FY 2016, B-LEADERS facilitated the realization of several RE projects with a total capacity of 61.55 MW with equivalent total investments of around USD 116.78 million. This led to a total accumulated capacity of 94.70 MW or USD 185.36 million mobilized since the start of the project.

Within the reporting period, mentoring support was provided to more projects, resulting in pipeline projects that will prospectively result in more GHG emissions avoided, additional generation capacity, and RE investments that will be realized in the final year of the project. The following

ANNUAL REPORT FOR FY 2016 37 sections describe how various related activities are being done to contribute to the objective of increasing investments into clean energy projects and realizing additional renewable energy capacity.

Mentoring Support for Renewable Energy Developers For FY 2016, mentoring support enabled six additional RE projects to come online, namely CleanTech’s 15 MW Bulacan Solar Photovoltaic PV Plant; nv vogt Philippines’s solar power projects in Centrala, Dalayap, and Armenia with a combined capacity of 22.55 MW; BBEC’s 5 MW rice husk-fired power plant; and Agus VI hydroelectric power plant’s rehabilitation and uprating by 19 MW. These were in addition to the two biomass power projects reported in FY 2015, namely Green Innovations for Tomorrow Corporation (GIFT) and Isabela Biomass Energy Corporation (IBEC). GIFT’s 12 MW biomass power plant has just recently been inaugurated on July 22, 2016. Mentoring support activities include assistance from the development phase such as pre-feasibility and feasibility studies, acquiring permits from and securing agreements with various government agencies, up to monitoring of construction and commissioning. In many cases, the most valued assistance provided by the project to project developers comes in the form of facilitating and securing financing, e.g., linking up Clean Tech and nv vogt projects with equity investors. B- LEADERS continues to monitor the progress of ongoing selected projects as well as projects in the pipeline until these achieve financial closure and the RE facility begins to operate. The confidential documents of the projects are available for USAID viewing in the data files of B-LEADERS. Some of these documents were checked and verified by USAID on September 9, 2016, during the annual Data Quality Assessment.

Development of the Energy Virtual One Shared System Since the soft launching of the EVOSS by USAID and DOE in July 2015, the project continued its support to build the Web-based system of tracking and monitoring the approval process of energy project applications based on the existing procedures and Citizen’s Charters of each agency prescribing timelines in the issuance of particular permits. EVOSS will have a centralized database of project related information and issued permits so that regulators and stakeholders can work together to promote ease of doing business in the energy sector. Evolving from MinDA’s OSFMC Web Portal, which monitors the status of the applications of RE projects in Mindanao, EVOSS will initially cover RE power projects but will eventually progress to monitor all energy projects nationwide. EVOSS is comprised of (a) systems design, development, operations and maintenance; (b) network infrastructure (computer servers, interconnectivity, etc.); (c) data collection, processing, and analysis; (d) streamlining of procedures and harmonization of process and forms; (e) capacity building; and (f) organization of project team. In FY 2016, several key activities were completed leading to targeted full utilization of EVOSS by the end of the year. Major activities included (a) producing and uploading at EVOSS website eight modules of “how-to” videos; (b) completed the procurement of EVOSS Servers, Software, and Radio Frequency Identification (RFID) equipment for DOE Internal Document Tracking System; (c) completed the systems development, testing, training, documentation, and acceptance of DOE Internal Document Tracking System; (d) completed the scanning, encoding, and validation of 643 project datasets; (e) completed EVOSS User Manual; (f) conducted hands-on training/walk-through on EVOSS each for RE Developers and Participating Government Agencies; and (g) presented EVOSS at various forums like the LGU Forum on RE Investments, 2016 Asia LEDS Forum, and Pathways to LEDS: Partnership for a Greener Iloilo.

ANNUAL REPORT FOR FY 2016 38 The focus moving forward on EVOSS is the institutionalization of the process within each participating government agency and the full acceptance of the system by proponents/developers. Major accomplishment achieved this year is vital to its targeted full operationalization by the end of December 2016. Annex U provides further details to these EVOSS-related activities.

Capacity Building for MinDA’s One Stop Facilitation and Monitoring Center EVOSS actually evolved from a previous USAID assistance to MinDA in establishing the OSFMC Web Portal, which monitors and mentors the application of RE projects in Mindanao. The OSFMC builds the capacities of, and provides technical support to, RE developers in the permitting and licensing processes with the aim of expediting RE project implementation. Last August 2-3, B- LEADERS organized a capacity building workshop for 14 key technical personnel of OSFMC. The training provided OSFMC with an overview of INDC, issues in RE permitting and licensing processes, and the Renewable Energy Act’s provisions on RPS, FiT, and Renewable Energy Market. The workshop was undertaken to deepen the understanding of OSFMC on the technical and legal aspects of CE development and the significance of facilitating the implementation of such projects. B-LEADERS engaged the services of a subcontractor composed of academic members to sustain the close monitoring of RE projects under the project’s mentoring program. Details of this support as well as the updates on these projects are provided in Annex V.

LGU Renewable Energy Investment Forum On March 8, 2016, MinDA and DOE in partnership with B-LEADERS led a forum on RE investments for LGUs in Mindanao. Various LGUs were represented by their respective Local Economic and Investment Promotion Offices (LEIPOs). Regional offices of Bureau of Investments (BOI), DOE, and Land Bank of the Philippines (LBP) and associations like Mindanao Business Council (MinBC) and Tourism Congress of the Philippines also sent their representatives. In view of the perennial power shortages in Mindanao, LGUs have been exploring other viable energy supply options. DOE presented the status of renewable energy investments in the country and highlighted the critical role that LGUs play in facilitating renewable energy investments. Other LGUs like the Municipality of Sta. Cruz (Davao del Sur) and Iloilo City shared their experiences on facilitating renewable energy investments through more efficient business permitting, providing incentives as mandated by a local investment code, and catalyzing the implementation of actual projects such as rooftop solar and retrofits for efficient lighting. To make the investments discussions complete, financing options were presented by a representative from LBP. MinDA recognizes that more LEIPOs need to be equipped with basic knowledge and skills on renewable energy development and investments promotion. MinDA will continue to organize RE investments sessions for LGUs in the months to come, in partnership with B-LEADERS and DOE. Details of the forum are available in Annex W of this report.

Regional Sectoral Dialogues with Key Business Leaders on Mindanao’s Power Situation B-LEADERS likewise supported MinDA and DOE in holding a series of consultations and regional business sector dialogues on the Mindanao power situation. The half-day dialogues focused on the issue of power shortage in Mindanao, its negative impact to the business sector, and how these are being addressed. Representatives from government agencies, business sector, energy generators and distributors, and local academe were in attendance. The series of dialogues were held in the Cities of General Santos, Zamboanga, Butuan, and Davao during the months of March and April.

ANNUAL REPORT FOR FY 2016 39 In the four batches of regional dialogues, DOE presented the Mindanao Power Outlook 2016, the capacity of the Agus-Pulangui Hydropower Complex (APHC) to generate 400 MW and the impact of El Nino in reducing APHC’s capacity to 150MW. Specific discussions include the basic power structure of Mindanao with emphasis on demand and supply vis-à-vis the rotating blackouts and insufficient power supply and how existing coal-fired power plants partially bridge the power deficit. Other disruptions such as transmission tower bombings were also identified as threats. Throughout the regional dialogues, the participants learned that the government alongside generators and distributors have initiatives to ensure a sustainable, sufficient, and resilient energy system in Mindanao. These include Interruptible Load Program (ILP), Modular Generator Set Program, optimal utilization of APHC during low water levels in Lake Lanao, and the introduction of the electricity market in Mindanao. With MinDA facilitating the discussions, stakeholders were given the chance to express views, propose suggestions, and directly raise concerns to concerned agencies present in the fora. Annex X provides further details related to this.

Green Building Code and Investment Package of Mandaue City Faced with the challenge of balancing economic growth and environmental sustainability, cities play a vital role in promoting GHG emissions reduction in consonance with the INDC targets. As LGUs usually look for models to use as benchmarks, B-LEADERS supported the City Government of Mandaue in elaborating local policies that espouse Green Building practices and investments. Mandaue City hosted multiple stakeholder consultations and discussions, a total of 16, since 2013. With assistance from B-LEADERS, the city conducted green building site visits and green building briefings. After a series of groundwork and consensus-building, the Mandaue Green Building Code was approved in October 2015 and duly enacted in November 2015 in the form of Ordinance No. 13- 2015-1047. The ordinance became the city’s anchor policy on green buildings and sustainable development. The ordinance focuses on the implementation of green building standards for all buildings in Mandaue, establishes a public-private green building advisory body, provides a mechanism for incentives for green buildings, and adopts the Building for Ecologically Responsive Design Excellence (BERDE) Rating System to verify the performance of green buildings. Subsequently, the city revised its Comprehensive Investment Code and in January 2016 released the new code that incorporates incentive provisions for green buildings under Section 13. The need to increase the capability of the internal and external stakeholders of the city is essential to support the effective implementation of the ordinance, including assistance in operationalizing the ordinance, establishing trainings, and supporting investment opportunities. As part of the capacity building for Mandaue, B-LEADERS supported the Green Building and BERDE Rating System Training, which includes basic green building information and in-depth understanding of the BERDE system, including the rating schemes, assessment and certification, and principles and processes for assessment. The activity also included a write-shop for internal stakeholders to complete the Green Building Code’s IRR, Investment Package, and Toolkit to aid the process of implementation as well as help the materially affected stakeholders comply with the local ordinance. The IRR was later issued last May by the city in the form of Executive Order (EO) 2016-17 while the Investments Package was also released during the same month. Details are provided in Annex Y of this report.

ANNUAL REPORT FOR FY 2016 40 Cities Development Initiative Sites

In November 2011, the Governments of the Philippines and the United States agreed to a new Partnership for Growth (PFG) to address the binding constraints to economic growth and development in the Philippines. Under the PFG, USAID is working to strengthen the economic competitiveness and resilience of secondary and tertiary cities outside of Metro Manila through the CDI. This program seeks to advance the development of these cities as engines of growth that is inclusive, environmentally sustainable, and resilient. B-LEADERS has been providing support to some of these cities. Within the reporting fiscal year, the project supported the Cities of Batangas, Iloilo, Zamboanga, and Tagbilaran.

Following the recently concluded national and local elections, USAID reaffirmed commitments to existing CDI partners through courtesy calls. The Metro Batangas Business Club led by its Chairperson Ms. Fely Ramos and USAID represented by Ms. Lily Gutierrez and Ms. Marian Cruz Navata met the newly elected Batangas City Mayor Beverley Dimacuha and Congressman Marvey Marino last July 19 to present accomplished and future projects on LEDS. USAID through its B- LEADERS Project also met with Tagbilaran City Mayor John Geesnell L. Yap II on August 15, 2016, wherein the project’s LEDS-related activities were introduced. The local chief executive acknowledged USAID’s efforts to help the LGU identify mitigation and adaptation options in addressing climate change. In addition, USAID’s Ms. Marian Cruz Navata paid a courtesy call with Zamboanga City Mayor Maria Isabelle “Beng” Climaco last August 17 to discuss the LGU’s ongoing and upcoming activities under CDI. The meeting highlighted the activities, which would complement the city government’s initiatives to reduce its carbon footprint through LEDS, support RE development, and integrate plans and programs into the city’s Comprehensive Land Use Plan.

ILOILO CITY Study on the Carbon Sequestration Potential of Mangroves in Iloilo City

For growth to be inclusive and sustainable, national and local governments, the private sector, and other stakeholders must improve the conservation and management of natural resources. This includes mangrove forests, which provide ecosystem services, biodiversity habitat, and livelihood opportunities. Mangrove ecosystems also help mitigate the negative effects of climate change by serving as a reservoir for carbon emissions. While many LGUs recognize the value of these resources, local decision makers and stakeholders have yet to design effective resource management plans to conserve their remaining mangroves.

In line with CDI, B-LEADERS conducted a baseline study to assess the carbon sequestration potential of Iloilo City’s existing mangroves forests. The mangroves baseline study has three components: a) mapping of mangroves forests, including assessment of species composition and community structure, to determine land coverage; b) calculation of the total amount of carbon stored in mangrove biomass; and c) collection of soil sediment and measurement of the stored organic carbon across the soil profile where the mangrove forest is located. Based on internationally-accepted protocols, the baseline study was undertaken by selecting patches of mangrove forests. This methodology will estimate the: a) total tons of mangrove biomass; b) total carbon stored; and c) equivalent total carbon dioxide sequestration potential. With knowledge of the potential of the city’s mangroves to absorb carbon emissions, the results would guide LGUs to

ANNUAL REPORT FOR FY 2016 41 develop policy instruments, laws, and other strategies to conserve and track the progress of its mangrove forest protection and reforestation activities.

In Iloilo City, the study of 88 hectares of the total 104 hectares of mangroves revealed that these mangrove forests have a potential to sequester roughly around 55,000 mtCO2e9 primarily due to its biomass and soil carbon, if left undisturbed. This number is the equivalent of taking more than 11,600 gasoline powered passenger cars off the road in a year. With these values, the protected mangroves in Iloilo City have demonstrated the potential to serve as a carbon sink by sequestering and storing considerable amounts of atmospheric carbon to mitigate the impacts of climate change at the local setting and our contribution to global initiatives in climate change mitigation. Details of the study can be found in Annex Z.

Mangrove Forest Tour in Iloilo City

USAID Mission Director Dr. Susan Brems participated in a Mangrove Forest Tour along Iloilo River, which was organized by the City Government of Iloilo on June 30, 2016. B-LEADERS provided technical assistance to the city government in pursuit of low-carbon development pathways specifically in the conduct of greenhouse gas inventory, promotion of energy efficiency in the commercial sector, and the establishment of baseline data on the carbon sequestration potential of the city’s mangrove forest. During the tour, the city government highlighted how the study on the carbon sequestration potential of mangrove forest would enable the city government to better assess and plan for the management of its mangrove cover. The study would also be an input to the upcoming Iloilo Province-wide mangrove accounting. Documentation for this activity is available in Annex AA.

BATANGAS CITY Ongoing Study on the Carbon Sequestration Potential of Mangroves in Batangas

Similar to the one conducted in Iloilo City, a study on the carbon sequestration potential of mangrove forests is currently being undertaken by B-LEADERS in partnership with the Batangas City ENRO. Covering a mangrove area of about 26.4 hectares, sample plots were established to gather the necessary information on biomass, carbon stocks, and forest structure. All field sampling activities have been completed and a report is currently being prepared.

Batangas City Green Business Summit

On March 17, 2016, the project, in partnership with the city government of Batangas and MBBC, held the first local-level private-public led summit that promotes sustainable business practices and products. Local government planners, business leaders, civic organization leaders, and academicians converged to learn from renowned urban planner Karmi Palafox of Palafox Associates and Architect Emelito Punsalan who discussed Liveable Cities and the Philippine Green Building Code, respectively. The CCC’s Senior Science Research Specialist Sandee Recabar also shared the importance of private sector investments on climate change adaptation and mitigation. USAID/Philippines’ Environment Office Deputy Director Rebecca Carter acknowledged that Batangas City has become one of the LGU leaders on advocating LEDS and environmental

9 For conservative estimates, this number represents 90 percent of the actual results estimated by the study, i.e., 61,000 mtCO2e.

ANNUAL REPORT FOR FY 2016 42 management. Meanwhile, MBBC Chair Ms. Fely Ramos stressed that the summit will lead to a series of meetings of various industries from Batangas such as agriculture, manufacturing, and tourism to create a roadmap for green development. The Commitment Signing between the city government of Batangas and the MBBC to support the Manila Declaration 2015, the Philippine private sector’s commitment to contribute to addressing climate change, served as the highlight of the summit. Documentation for this activity is available in Annex AB.

Orientation and Training on GHG Inventory and Energy Audit

In pursuit of the goals of the Green Business Summit to facilitate the implementation of LEDS, B- LEADERS and the City Government of Batangas moved forward with the introduction of entity- level GHG inventory and energy audit to 150 representatives of business establishments and private organizations in Batangas City. The orientation on GHG inventory and energy audit was organized by the MBBC and the Batangas City Government on April 22, 2016.

B-LEADERS provided the technical experts who presented an overview of GHG inventory and introduced energy efficient technologies and a practical energy audit tool. As part of a long-term work plan anchored on the Green Business Summit, the team conducted modular learning sessions on GHG Inventory and Energy Audit last May 26 and 27. The City ENRO of Batangas, in partnership with the Department of Education (DepEd) and B-LEADERS, organized a GHG Inventory workshop for representatives from 82 public elementary schools and 18 public high schools. Mr. Oliver Gonzales, Chief of the City ENRO and concurrent PLLENRO President, emphasized the city government’s efforts to educate the teachers and engage the academic sector in crafting Batangas City’s environmental policies and LEDS. At least 10 business sector representatives joined the training on Energy Audit that hopefully culminates in the adoption of innovative and new technologies that will be energy efficient to these business firms. Batangas City ENRO will monitor the completion of the GHG Inventory report and will conduct stakeholder consultations to steer the implementation of energy efficiency initiatives in schools and business establishments.

Following the basic training, an Energy Audit walk-through was organized with MBBC, engineers, and staff of Pontefino Hotel and Residences. As a demonstration site, Pontefino committed to switch to energy efficient appliances not only to save electricity cost but also to lower their carbon emissions. No less than USAID Asia's Technical Services Director Mr. Jerry Bisson joined the trainees during the walk-through last June 15. During his visit to Batangas City, Mr. Bisson commended the dynamic partnership of the City Government of Batangas, MBBC, and B- LEADERS in engaging DepEd’s Batangas Division and the business sector to conduct and submit their GHG Inventory and Energy Audit in support to the city’s LEDS campaign.

Documentation for these activities is available in Annex AC.

Isla Verde Renewable Energy Micro-grid Project Isla Verde or Verde Island is a 1,700-hectare island situated along the bodies of Verde Island Passage. It is composed of six barangays (villages) comprised of Liponpon, San Agapito, San Agustin East, San Agustin West, San Andres, and San Antonio and is home to approximately 6,000 people. As of 2014, the six barangays of Isla Verde are still not connected to the main distribution network of Manila Electric Company (MERALCO). This is still the situation in the island despite repeated

ANNUAL REPORT FOR FY 2016 43 plans and efforts to energize the island for the last 20 years. In this regard, the LGU has identified the provision of electric power service to Isla Verde as urgent and top priority.

In FY 2016, B-LEADERS continued to support the City Government of Batangas in pursuing the Isla Verde project. From the review of the feasibility study done in 2015 through the series of consultations and field visits, the project convened key partners necessary for the implementation of the project. These partners include Batangas City, Meralco, Sunpower, and the barangay local government units. The partners are now in the final stages of designing and budgeting their respective commitments on the different components of the micro grid. In summary, Batangas City will provide the land and the house wiring requirements; Sunpower will provide part of the solar PV array; Meralco will construct the distribution system and handle the eventual operation and maintenance while the barangay LGUs will help in community trainings and load management. Other partners are still being mobilized for the power storage system and the balance of system of the planned micro-grid. The micro-grid project is expected to be launched in the third quarter of FY 2017. Details of this activity are discussed in Annex AD of this report.

TAGBILARAN CITY

Deep-dive Training on GHG Inventory in Tagbilaran City

On August 15-16, 2016, B-LEADERS conducted a GHG Inventory and Accounting Workshop for 15 key personnel of Tagbilaran City. The participants learned about the basics of climate change as well as the concepts, tools, and benefits of conducting a GHG inventory. Best practices from other partner LGUs that have completed both entity- and community-level GHG Inventory were also shared. During the workshop, an EO creating a Climate Change/GHG Team and a Memorandum of Understanding between Tagbilaran LGU and a local academic institution were discussed. The academe would be tapped by the LGU for technical support in data collection and report writing. Documentation for this activity is available in Annex AE.

ZAMBOANGA CITY

Orientation on the Sequestration Potential of Mangroves and Greenhouse Gas Inventory

B-LEADERS, in partnership with MinDA and the Regional Office IX of DENR’s Environmental Management Bureau (EMB), conducted a two-day orientation on Carbon Sequestration Potential and GHG Inventory in Zamboanga City from April 19-20, 2016. Documentation of this activity is available in Annex AE. The orientation provided the participants an overview of the concepts and processes in conducting a carbon sequestration estimation in the forestry sector as well as greenhouse gas inventory and management in other sectors, particularly, energy, waste, industry, and transport. As part of MinDA’s thrust for sustainable development, the workshop reinforced approaches on ecosystem-based development. This enabled the participants to have greater appreciation on mitigation efforts in their forestry sector, particularly in the Tumaga River Watershed. Key governing bodies from Zamboanga City were represented in the workshop, including the city government, the Tumaga River Water Quality Management Area Governing Board (TR WQMA GB), and the Zamboanga City Airshed Governing Board (ZCAGB). Representatives from the private sector and the academe also participated in the workshop.

ANNUAL REPORT FOR FY 2016 44 As a result of the orientation sessions, TR WQMA GB issued Resolution No. 2016-05 last May 27, which authorizes its TWG to lead in the conduct of the carbon sequestration inventory. In addition, during its board meeting last June 22, ZCAGB issued Resolution No. 2016-001 otherwise known as the Zamboanga City Airshed GHG Emission Inventory, which authorizes the board to lead in the conduct of GHG Inventory, identify members of the inventory team, and ensure broad-based participation of stakeholders in the project.

Deep-dive Training on GHG Inventory in Zamboanga City

In partnership with MinDA, B-LEADERS subsequently conducted a GHG Inventory and Accounting Workshop for 33 key technical members of ZCAGB last September 26-27. ZCAGB is composed of representatives from the LGU of Zamboanga City, regional offices of NGAs, and several private and academic institutions. The deep dive workshop was a follow-through to an orientation session conducted last April 2016. During the workshop, ZCAGB identified teams that would conduct the entity and community level GHG inventory and reporting. The project would continue to support the establishment of baseline information to strengthen LEDS in Zamboanga. Documentation for this activity is also featured in Annex AE.

Crosscutting Activities and Community and Outreach Activities

Integrative and coordinative activities are necessary to facilitate and leverage the results of Tasks 1 and 2. In FY 2016, the project implemented crosscutting activities that complemented and enhanced the impacts of strengthening in-country capacity on low emission development and increasing investments into clean energy projects. The following distinct activities illustrate this point.

Climate Vulnerable Forum: Sherpa Meeting

The Philippines through the CCC and Department of Foreign Affairs (DFA) hosted the third full meeting of the Climate Vulnerable Forum (CVF) Senior Officials on November 9-11, 2015, at the Diamond Hotel, Manila. The 20-member countries, together with 23 incoming members from different regions, gathered to strengthen synergies and agreements on climate change policies and agreements in preparation for the negotiations at the major UNFCC Conference 2015 (COP21) in Paris. The CVF senior officials harmonized the concerns and agreed actions of the country members that are highly vulnerable to the effects of climate change. The meeting culminated by the articulation of The Manila Communique as the meeting’s output, stating the members’ call for supporting a climate-secure framework to keep warming below 1.5°C. The details of this activity can be found in Annex AF.

Climate Change Consciousness Week 2015 In FY 2016, B-LEADERS continued its support to the CCC’s annual celebration of National Climate Change Consciousness Week. Alongside its public and private partners, the CCC celebrated the event for three days: Day 1: LGU Summit; Day 2: Business Summit; and Day 3: Greeneration Summit. In 2015, the CCC highlighted the proclamation of November 25 as National Day for Youth in Climate Action and the #NOWPh Day as response for the Paris Conference of Parties (COP21). B-LEADERS supported this advocacy through the conceptualization of an infographic book dubbed as “Good Practices on GHG Inventory: Philippine Local Government First Step on Low Emission Development Strategies (LEDS),” production of “15 Ways to LEDS” video, and the

ANNUAL REPORT FOR FY 2016 45 conceptualization and implementation of an interactive LEDS games called Green Arcade. The details of this activity are in Annex AG.

#NOWPH

The CCC and the National Youth Commission (NYC) with support from B-LEADERS Project launched the #NOWPH: A One Million Filipino Voices for Climate Action Campaign last June 26, 2015. #NOWPH or Not on Our Watch Philippines is an advocacy campaign aimed to unify the Filipino Youth voices for the 2015 Paris Climate Conference in the call to prevent global warming from reaching two degrees Celsius. This also sought to raise public consciousness on the science of climate change and on ways to lead a climate-resilient and climate-smart lifestyle. #NOWPh goal was to collect one million pledges from youth advocates aged 18-30 years old in a form of hard copy signature sheets, online and offline tablet, or computer program through the www.nowph.org webpage. To accomplish this goal, a series of campaign activities and Training of Trainers (TOT) were organized to strengthen awareness and participation of the youth. The initiative culminated in Philippine President Benigno Aquino III joining NYC Commissioner Dingdong Dantes in the symbolic presentation of 3 million #NowPH climate action pledges last December 2 to France, host of the historic COP21, through Annick Girardin, France’s Secretary of State for Development. The details of this activity are in Annex AH.

Presentation of Project Initiatives at the Asia Clean Energy Forum

B-LEADERS supported the participation of its partner LGUs, namely Iloilo City, Boracay Island, and Mandaue City, during the Asia Clean Energy Forum (ACEF) 2016. The 11th ACEF, held on June 6-10, 2016, at the Asian Development Bank., is Asia’s premier networking and knowledge-sharing platform for clean and renewable energy. At the Forum, representatives from the three LGUs served as presenters during the breakout sessions, which focused on energy efficiency and innovations in renewable energy. During the presentations, each LGU demonstrated the technical support they each received from the project as well as the best practices they can offer to the audience to demonstrate how LEDS can be implemented at the local level.

Iloilo City presented its Energy Efficiency Initiatives on June 9, 2016. On behalf of Mayor Jed Patrick Mabilog, City ENRO Department Head Engineer Noel Hechanova presented the city’s initiatives as part of a session that featured cities as key decision makers in implementing energy efficiency and shared the different initiatives of Iloilo City in mobilizing its stakeholders and resources towards a low carbon development path. He highlighted the city’s strong partnership with USAID and together developed the city’s GHG Inventory and Management Plan, which resulted in the identification of mitigation measures and set targets for emission reduction. Iloilo City’s leadership and direct experience in implementing energy efficiency initiatives encouraged the private sector, which soon followed suit and implemented their energy efficiency programs.

Atty. James Abadia, City Administrator of Mandaue, discussed the USAID support in the development and eventual implementation of the city’s Green Building Code. Atty. Abadia highlighted Mandaue City’s status as the winner of APEC’s low carbon town model last year. He also focused on the strategy the city employed to gain the support of the stakeholders in designing and implementing the Green Building Code. Mandaue City ensured that the private sector cooperates through the city’s Green Investment Package, which sets out incentives for those who

ANNUAL REPORT FOR FY 2016 46 comply with the Green Building Code. Also presented were the series of stakeholders’ consultations designed to generate support to the Green Building Code across the city.

Mr. Eliseo Casidsid, currently a consultant and former Chairman of the Boracay Land Transportation and Multi-Purpose Cooperative (BLTMPC), shared the story of the Boracay Solar Charging Station, which was originally conceptualized as simply a charging station for the island’s electric tricycles. Mr. Casidsid relayed how the solar charging station became a pillar of hope for the islanders during Typhoon Yolanda since the island was cut off from fuel deliveries, converting the solar charging station as the sole source of energy that allowed for communication between the island and the local or even national government. Documentation for these activities is available in Annex AI.

Climate Change Advocacy at the National Youth Parliament

Within the reporting quarter, B-LEADERS participated in the 11th National Youth Parliament (NYP) led by NYC on June 1-4, 2016, in Iloilo City. The NYP gathered over 200 Filipino youth leaders to discuss and propose resolutions on different national issues and concerns, particularly on health, education, employment, youth participation, and environment. This is the mandate of NYP as stated in the Youth in Nation-Building Act of 1995. During the opening program, NYC Commissioners Jo Jan Paul Peñol, Perci Cedaña, Jose Rafael Cruz, and Earl Saavedra presented the Commission’s recent accomplishments for youth development. In his keynote speech, former Commissioner-at- Large Jose Sixto Dantes III highlighted the youth’s key role during the 2015 #NOWPH campaign on climate change, in partnership with USAID. He emphasized that the success of this national climate change advocacy in view of the COP21 in Paris was driven by the youth’s active engagement in environmental initiatives. The opening ceremony of the youth parliament last June 1 highlighted B-LEADERS’s #NOWPH exhibit. Documentation for this activity is available in Annex AJ.

Breakout Session During the Global Leaders Conference On March 16, 2016, B-LEADERS partnered with the Climate Reality Project and the NYC to organize a session titled “Youth Beyond Paris.” The session was done during the Global Leaders Conference at the Sofitel Hotel in Pasay City. Along with NYC Commissioner Dingdong Dantes, B- LEADERS presented strategies to continue engaging the Filipino youth on climate change issues even beyond COP21. The session focused on commitments made during the climate negotiations and how the youth can be influencers in realizing the COP21 commitments. Documentation of this activity is available in Annex AK.

LEDS Best Practices at International Urban Development Conference Within the reporting year, B-LEADERS spearheaded a panel discussion on LEDS best practices during the 2016 International Conference on Urban Development held last July 12 to 13 in Pasay City. Panelists from PLLENRO, The Davey Institute, UN Habitat, and ICLEI Southeast Asia highlighted initiatives that support NGAs and LGUs in the conduct of GHG inventory, energy audit, and mangrove accounting. The discussions shed light on the need of cities to build consensus and foster cooperation to implement LEDS, taking into account the multi-sectoral and multi-faceted nature of LEDS work. Parallel to the session, B-LEADERS prepared and managed an exhibit that featured the urban development best practices of Batangas and Iloilo Cities. The booth also featured LEDS research materials and tools, which were distributed to delegates. Documentation of this activity is available in Annex AL.

ANNUAL REPORT FOR FY 2016 47 Green Building Concepts at Subdivision and Housing Developers Convention B-LEADERS’s experiences in developing an enabling environment for RE and Energy Efficiency (EE) were featured during the Subdivision and Housing Developers Association (SHDA) Convention held last September 22 in Iloilo City. The project’s presentation entitled “Sustainable Development through Green Initiatives” showcased Mandaue City’s green building and investment ordinances and Iloilo City’s partnership with the private sector in implementing RE and EE projects.

Sustained Environmental Advocacy with Miss Earth Foundation Philippines On May 12 and 20, 2016, B-LEADERS conducted an environmental seminar for the 46 delegates of the Miss Philippines – Earth 2016. USAID and Miss Earth Foundation Philippines have been partners in strengthening advocacies on environmental protection. Winners of the Miss Philippines – Earth pageant serve as environmental ambassadors for the country.

For the Makati City leg, the Climate Reality Project through its country manager, Mr. Rodne Galicha, discussed possible initiatives Miss Philippines-Earth delegates could pursue to address climate change in their own way. The delegates discussed the 15 Ways to LEDS. This activity relaunches the partnership between the B-LEADERS and Miss Philippines Earth on environmental initiatives and activities for the year 2016.

In the Batangas City leg, the city ENRO and MBBC organized the seminar with support from B- LEADERS and ECOFISH Projects. The said activity is part of the workshop series under the LGU-MBBC partnership for IMPACT (Initiate, Mitigate, Participate, Act, Clean, and Transform), which is a public-private endeavor supporting not only the LGU’s green initiatives but also their commitment to contribute climate actions in line with the Manila Declaration, which also promotes reduction of carbon emissions and low emission development strategies. Mr. Andy Hollande, Chief of USAID’s Regional Office of Acquisition and Assistance, graced the event and presented 15 Ways to LEDS and how as ambassadors of the environment can Miss Earth winners contribute in the information, education, and communication campaign of USAID and its partner organizations. The documentation of these activities are available in Annex AM.

Earth Hour Challenge with Makati City The project supported the local government of Makati City in the production of Social Media Infographics for Earth Hour City Challenge: We Love Makati PH. Makati City has been chosen as one of the 3 cities in the Philippines and out of 47 sustainable cities all over the world to compete in the World Wide Fund for Nature (WWF) Earth Hour City Challenge 2016. B-LEADERS team helped the city ENRO conceptualize infographics depicting the different environmental practices and policies implemented in the city. This helped the LGU inform the public how they can be a role model to other cities in promoting green and sustainable practices.

LEDS Partnerships in Iloilo City In Iloilo City, Mayor Jed Patrick Mabilog graced the launching of “Pathways to LEDS: Partnerships for a Greener Iloilo” held last August 4. Mayor Mabilog commended USAID for providing technical assistance on projects, specifically those promoting Iloilo as a green and sustainable city. The one- day event featured presentations by Iloilo City ENRO chief Mr. Noel Hechanova about the city’s

ANNUAL REPORT FOR FY 2016 48 initiatives on RE and EE as well as DOE’s lecture on EVOSS. Both initiatives were conceptualized and being implemented with support from B-LEADERS. Event partners city ENRO, USAID, and Energy Development Corporation also organized breakout sessions on GHG inventory, energy audit, and renewable energy. PLLENRO President Mr. Oliver Gonzales presented the technical assistance provided by USAID since the organization started in 2010 and how PLLENRO mentors LGUs on GHG inventory and in the preparation of the GHG Management Plan and LCCAP. The gathering was attended by more than 200 representatives from government agencies, private sector, and the academe. The documentation of this activity is available in Annex AN.

LEDS Camp in Batangas City On July 9, 2016, B-LEADERS supported the City Government of Batangas in holding its first LEDS Camp. The camping activity was in line with the LGU’s campaign to promote LEDS in public and private schools. The event gathered more than 80 high school students, who were all officers of the Youth for the Environment in Schools Organization (YES-O). The B-LEADERS team presented the success of the #NOWPH campaign and how students could participate in LEDS advocacies. The city ENRO provided interactive activities, which built the capacity of participants in the areas of leadership and public speaking for the environment and outdoor engagements. Along with the GHG inventory and energy audit trainings held last May, the LEDS Camp is part of the IMPACT campaign to lower carbon emissions and promote LEDS across all sectors in Batangas City, including the academe. The documentation of this activity is available in Annex AO.

RE Troopers Storybook at GMA-7 TV Network’s Anniversary Celebration GMA-7 TV Network, a partner of B-LEADERS in the #NOWPH campaign, celebrated its 67th Anniversary with a storytelling session about climate change and RE. USAID’s “RE Troopers” was chosen as one of the featured children’s storybooks and was narrated to more than 80 children by TV personality and puppeteer Carlo Magno. The activity also shared B-LEADERS’ “15 Ways to LEDS,” which is also being promoted by the TV network’s homegrown celebrities. Documentation for this activity is available in Annex AP.

ANNUAL REPORT FOR FY 2016 49 SECTION 3: INTEGRATION OF CROSSCUTTING ISSUES

A. GENDER EQUALITY AND WOMEN EMPOWERMENT As the project continued to build institutional and individual capacities to enhance climate change actions, it also sustained its efforts to provide a gender lens in most of its activities. Gender- disaggregated data continued to be monitored specifically to gauge equal opportunities and access to workshops and trainings provided by the project. For FY 2016, around 56.3 percent of those who participated in 33 separate trainings organized by the project were women, with 57.5 percent of total person-hours spent by women. Where appropriate, the project also continued to exert effort to mainstream gender considerations. For this reporting period, B-LEADERS sustained its assistance to DOE on the preparation of the Guidelines for Energy Resiliency in APEC Off-grid Areas wherein gender considerations were promoted to become a major theme. The initial framework of the guidelines now includes The Role of Women in Developing Energy Resiliency as one of the six major sections.

B. PUBLIC-PRIVATE PARTNERSHIP

Public-Private Partnership In all activities, the project continuously sought the support of both the public and private partners to leverage project funds and maximize project impact. Cash contributions as well as in-kind resources were consistently documented and verified. For the reporting fiscal year, the total contribution from public and private partners was valued at USD 118,148,824.79. This represents both the USD 116,781,761.57 mobilized public and private investments for clean energy installation and rehabilitation as reported in Indicator 9 and the USD 1,367,063.22 leveraged public and private sector funds for climate change relevant communication and outreach activities. Table 5 summarizes the in-kind contributions and other leveraged funds; related certificates and documentation are shown in Annex AQ.

TABLE 5. SUMMARY OF FUNDS LEVERAGED FOR FY 2016 (IN USD) PRIVATE AND B-LEADERS TOTAL PUBLIC FUNDS Private Investments from Mentoring 306,287.68 116,781,761.57 117,088,049.25 Portfolio Leveraged Funds from Events, 241,504.26 1,367,063.22 1,608,567.48 Communications, and

ANNUAL REPORT FOR FY 2016 50 TABLE 5. SUMMARY OF FUNDS LEVERAGED FOR FY 2016 (IN USD) PRIVATE AND B-LEADERS TOTAL PUBLIC FUNDS Outreach Grand Total 547,791.94 118,148,824.79 118,696,616.73

C. PRODUCTION OF COMMUNICATIONS AND OUTREACH MATERIALS

The project produced communications and outreach materials that demonstrated innovative communication strategies and approaches in print, video, and social media (see Table 6). Such communications and outreach materials targeted to inform and communicate to different audiences, specifically partners from the national and local government, private sector, youth, including development practitioners and policy makers from other countries.

ANNUAL REPORT FOR FY 2016 51 TABLE 6. LIST OF COMMUNICATIONS AND OUTREACH MATERIALS Intended Item Content Format Language Distribution Audience The graphics used for The Energy Virtual One Shared System (EVOSS), a Web- Completed: based one-stop shop for EVOSS Presented during the RE investors that the NGAs and RE Website English EVOSS Consultation Project and Department of Investors Design Workshop on RE Energy (DOE) are Project Process March banking on to facilitate 18, 2016 and accelerate approval of RE project applications. Completed: Infographic LGU This material showcases a Launched during the Book on Good Representatives collection of the six LGU Climate Change Practices on English and community-level GHG Consciousness Week on GHG emissions reports. COP21 November 23-25, 2015, Inventory Delegates and presented in COP21 in Paris, France This manual presents a Community- step-by-step guide to Completed: Level GHG LGUs in gathering, Launched on March 10, Inventory for managing, and quantifying 2016, during the LGUs in the data and information English LGU Communities for Philippines: about the level of GHG Resilience Convergence User’s Manual emissions and removals Forum for the Tagum- within their respective Libuganon River Basin jurisdictions. Promotional This Audio-Visual Video for Presentation (AVP) Society for Development compiles the different English Completed International Practitioners youth activities of B- Development LEADERS. Washington Promotional materials for Completed: Presented the #NOWPH campaign during #NOWPH include: Grand Media Launch . Tarpaulins on October 6, 2015, #NOWPH School #NOWPH . Infographics Youth and the English Activities on October IEC Materials . Sand Art Video General Public 22, 2015, Climate . Award Change Consciousness . Video Compilation Week on November . Symbolic Turnover 23-25, 2015, and Material COP21 in Paris, France

ANNUAL REPORT FOR FY 2016 52 Exhibit Booth for the The exhibit showcases Completed: Business Leaders Batangas City information materials on English and LGU Exhibited during the Green Batangas City’s green Representatives Green Business Summit Business initiatives. on March 17, 2016 Summit

Completed: This is the second update Presented during the of the EVOSS AVP, 2nd EVOSS LGU Forum on which contains English RE Investors Video Update Renewable Energy introduction and progress Investments on March of the implementation. 8, 2016

Turnover Completed: Material for The launching and Community- turnover of the User’s Presented on March 10, LGU Level GHG Manual aim to introduce 2016, during the English Representatives Inventory for the tools, which LGUs Communities for and Students LGUs in the may use to develop their Resilience Convergence Philippines: GHG inventories. Forum for the Tagum- User’s Manual Libuganon River Basin Completed: Video on NGAs, private Presented during the Energy This newscast-format sector, and civil Workshop on Resilience in video discusses the society Improving Energy Off-Grid impacts of climate change English organizations in Resiliency in Off-Grid Areas in and the need for energy the Asia Pacific Areas in APEC APEC resiliency. Region Member Economies Economies held on June 15-17, 2016 The series of social media Social media infographic materials Completed: infographic feature the different LGU materials for environmental initiatives English Representatives Materials were featured Earth Hour of Makati City in energy, and Students in We Love Makati PH City Challenge transport, waste, and food Facebook account sectors.

The Prezi Presentations highlight the following: Presentations . Energy Efficiency Completed: of the Projects Initiatives of Iloilo City Policy makers, Presented during the in Mandaue, . Mandaue City’s Green English private sector, Asia Clean Energy Iloilo, and Building Policies financiers Forum on June 9-10, Boracay . Boracay Solar Charging 2016 Station

ANNUAL REPORT FOR FY 2016 53 Completed: Presented the EVOSS Consultation Workshop The video presents the on RE Project Process third version of the on March 18, 2016, Third EVOSS Renewable EVOSS AVP, which English EVOSS Hands on Video Update Energy Investors contains updates on its Training for Developers implementation. on April 12, 2016, Asia LEDS Forum 2016 on June 27-29, 2016, and Pathways to LEDS on August 4, 2016 The booth showcases Exhibited during the Policy makers, Interactive interactive exhibit Asia LEDS Forum private sector, Exhibit Booth materials containing English 2016 on June 27-29, development on EVOSS general information on 2016, in Hanoi, organizations EVOSS. Vietnam The exhibit booth highlights the GHG Management Plan, GHG Inventory, Energy Audit Presented during and Mangrove Accounting Pathways to LEDS: Exhibit Booth LGUs, Private of Iloilo and Batangas. English Partnerships for a on LEDS Sector This exhibit booth Greener Iloilo on includes a short four- August 4, 2016 minute video that presents different photos relevant to these topics. This first of the video series aims to guide the Presented during Video on EVOSS website users, NGAs, LGUs, EVOSS Hands on EVOSS: How particularly on how to English Renewable Training for Agencies to Register register for EVOSS for Energy Investors on August 15, 2016 streamlining renewable energy applications. This user manual is the printed version of the EVOSS website walk- Presented during NGAs, LGUs, EVOSS User through, which explains EVOSS Hands on English Renewable Manual: the main pages of the Training for Agencies Energy Investors EVOSS website to guide on August 15, 2016 users on its content and how to use it.

Some IEC materials produced intended to further enhance awareness, understanding, and knowledge of the audience towards several activities the project conducted. For this reporting FY, the project provided various communications and outreach materials for EVOSS, which consisted of AVPs, manuals, Web design, and interactive exhibits for several events, including the Asia LEDS

ANNUAL REPORT FOR FY 2016 54 Forum 2016. Moreover, cutting-edge presentation software was also utilized to assist local government partners in presenting their respective initiatives and best practices for ACEF 2016. Several multimedia materials produced in partnership with different government agencies, LGUs, and private sector also contributed to the promotion of LEDS activities and #NOWPH Campaign. Photos and screenshots of all communications and outreach materials produced are compiled in Annex AR, Sub Annex A.

Production of Newscast Video on Climate Change Impacts and Energy Resiliency As part of USAID’s sustained support to the initiatives of DOE in developing energy resiliency, B- LEADERS produced a newscast video that highlights the impacts of climate change across the Asia Pacific Region. The regional context was taken into account as the USG and the Philippine Government co-chair the Energy Resiliency Task Force of the Energy Working Group of the APEC community. The newscast video is intended to be used for various climate change and energy resiliency advocacy events and activities, starting with the Workshop on Improving Energy Resiliency in APEC Off-grid Communities hosted by the DOE in June 2016.

Social Media Infographics for Earth Hour City Challenge: We Love Makati PH Makati City has been chosen as one of the 3 cities in the Philippines and out of 47 sustainable cities all over the world to compete in the WWF Earth Hour City Challenge 2016. In support to the local government unit of Makati City, B-LEADERS helped the city ENRO conceptualize infographics depicting the different environmental practices and policies implemented in the city. This helped the LGU inform the public how they could be a role model to other cities in promoting green and sustainable practices.

Production of ACEF Prezi Presentations: Boracay, Iloilo, and Mandaue USAID through the B-LEADERS Project joined ACEF 2016 to share and to promote green building policies, sustainable and clean energy, innovations in energy efficiency and technology; and the forum also showcases best practices and case studies of public and private institutions in Asia.

EVOSS Audio-Visual presentation An audio-visual presentation about the process and milestones under the EVOSS, a project in collaboration with DOE-IPO, was produced and presented to public and private partners, including renewable energy developers and later turned over to DOE as an information, education, and communication material. EVOSS was established to help renewable energy developers shorten the process of renewable energy application by providing guidance, transparency, and accountability in the whole application process.

Asia LEDS Forum Open Space Exhibit and Presentations The Asia LEDS Partnership is a voluntary regional network comprised of individuals and organizations from the public, private, and non-governmental sectors active in designing, promoting, and/or implementing LEDS in Asia. The Asia LEDS Forum will have different video and Prezi presentations currently being produced, which will discuss different topics for low emission development strategies. An open space exhibit is also being developed as a complement to the videos produced

ANNUAL REPORT FOR FY 2016 55 SECTION 4: PLANNED ACTIVITIES FOR FY 2017

B-LEADERS has identified high-level and high-value activities for the next FY subject to the approval of FY 2017 work plan and most importantly contingent on full incremental funding that will allow full support and completion of these activities. Summarized below are the highlights for the project in FY 2017 1. Continued support to the monitoring and full operationalization of EVOSS; 2. Sustained efforts to enhance the CBA as a valuable input in transforming the INDC to NDC; 3. Finalization of the fuel mix study including the design of the fuel mix calculator that will allow for iterative processes and will lend flexibility to DOE with respect to the fuel mix; 4. Enhancement of the mentoring program particularly in light of the possibility that DOE will no longer pursue Feed-in Tariffs as a policy mechanism to increase RE share in the energy sector; 5. Continued support to CDI cities in the completion of both entity and community level GHG inventories; 6. Establishment of a carbon registry that will encourage increased private sector participation in the country’s forest protection and conservation activities; 7. Completion of baseline carbon sequestration potential of selected mangrove sites for both Batangas and Zamboanga Cities; 8. Completion and finalization of the Guidelines on the CSP as it impacts how PSAs will be defined in the attainment of the aspirational GHG emission reduction targets under the NDC; 9. Possible support to DOE as the Philippines plays host to the ASEAN summit in 2017; and 10. Strengthen partnership with relevant NGAs in pursuing LEDS objectives given the challenges under the new administration.

ANNUAL REPORT FOR FY 2016 56