State of Palestine

Endorsed by the GCF Climate Investment Committee on 5 November 2020 Environment Quality Authority

State of Palestine’s Country Programme for the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund

State of Palestine 2019 Environment Quality Authority

State of Palestine’s Country Programme for the Green Climate Fund

Climate Resilient Transformation with the Green Climate Fund

State of Palestine 2019 Table of List of Tables Table 1: Basic socio-economic statistics for the State of Palestine from 2010 to 2017 12 contents Table 2: Future climate scenarios for the State of Palestine 20

Foreword 4 Table 3: Key emitters and related mitigation challenges 22 Section 1: Country Profile 6 Table 4: Summary of major climate policies and responses 24 1.1 Development profile 8 Table 5: Summary of Nationally Determined Contribution targets 28 1.2 Climate change profile 18 Table 6: Summary of roles and responsibilities of key institutions as proposed in the 1.3 Climate change response 23 Capacity Development - Phase 1 report 37 1.3.1 National frameworks 23 Table 7: Exemplary list of climate change stakeholders in the State of Palestine 55 1.3.2 Regional engagement 32 Table 8: Relationships with existing International Accredited Entities, potential 1.3.3 Access to finance 34 Accredited Entities and relevant public, private and civil society partners 62 1.4 Gaps and opportunities 36 Table 9: Project proposals submitted to the Green Climate Fund 65 1.4.1 Transformational success factors 42 Table 10: Green Climate Fund Investment Criteria 67 1.4.2 Demand driven and inclusive solutions by engaging with civil society sector 44 Table 11: Summary of proposals 69 1.4.3 Paradigm shift to leverage private sector resources 48 Table 12: Top proposals for submission to GCF from 2020 to 2024 70 Section 2: Country Agenda and Green Climate Fund Engagement 52 2.1 Institutional arrangements 52 List of Figures 2.2 Roles and contributions of key stakeholders 55 Figure 1: Map of the State of Palestine with a land area of 6,020 km2 and 2.3 State of Palestine Green Climate Fund Pipeline Principles 64 population of 4.9 million. 8 Figure 2: State of Palestine GDP per capita. 9 2.4 Prioritizing the State of Palestine Green Climate Fund pipeline 67 Figure 3: Proposed multi-layered institutional framework on climate change for 2.5 Country portfolio 69 the State of Palestine 52 2.6 Priority proposals for submission to the Green Climate Fund from 2020 to 2024 69 Figure 4: Institutional and financial framework to access and use bilateral and Section 3: Monitoring and Evaluation of Country Programme Implementation 74 international climate finances 54 Section 4: Annexes 75 Annex 4.1: Prioritized Pipeline A to be implemented between 2019 and 2023 76 The views expressed in this publication are those of the author(s) and do not necessarily Annex 4.2: Prioritized Pipeline B to be implemented between 2024 to 2030 102 represent those of the United Nations, including UNDP, or its Member States”. Foreword

Climate change is the most prominent threat the world is facing, and it is having a This Country Programme is focused on large-scale projects and those that fall under severe impact on all aspects of life on this planet. In an effort to respond to climate a range of Green Climate Fund support mechanisms, namely: the Simplified Approval change challenges, the international community created the Green Climate Fund Process; the National Adaptation Plans Support process; and the Green Climate Fund under the United Nations Framework Convention on Climate Change. The Fund is Readiness Support process. essentially a financial mechanism to assist developing countries to adapt to and The Israeli occupation amplifies the impact of climate change, and the State of mitigate the impacts of climate change. The objective of the Fund is to support Palestine continues to move forward in its struggle to end to the occupation and projects, programmes, policies and other activities in developing countries. The seek full independence of our state. The task of tackling climate change is ever more Green Climate Fund is recognized as core to international efforts to increase access daunting under foreign occupation. to climate finance. We strongly appreciate the support that has been given to the State of Palestine by Like all countries, the State of Palestine will be hit hard by climate change. Indeed, signs the international community. This support has come in the form of capacity building, of the impact are already evident, well defined, and clearly observed. In an attempt technology development and transfer, and finance. Climate finance is a new and to respond to the consequences of climate change, leaders in the State of Palestine additional source of funds, but it is not related to official development assistance. have been among the first in the world to sign and ratify the Paris Agreement. The Consequently, it can help the State of Palestine respond to threats of climate change. Palestinian Environment Quality Authority, in its capacity as a National Focal Point Access to climate finance will also transform climate challenges into tangible for the United Nations Framework Convention on Climate Change, has led, facilitated investment opportunities that benefit Palestinian communities. and coordinated national efforts to respond to the challenges of climate change.

The Environment Quality Authority has coordinated preparation of this Green Climate Fund National Country Programme. This has been done with guidance and support from the Fund. The main objective is to communicate and share with the Fund’s Secretariat the most pressing climate issues facing the State of Palestine. Building H.E. Adalah Atira on our Nationally Determined Contributions and our national Communication and Minister Adaptation reports, we prepared this Country Programme document with the aim of Chairman of Environment Quality Authority scaling up national adaptation and mitigation projects.

4 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 5 Total emissions Percentage of na- Section 1: Activity (Gg CO2 eq.) tional emissions (%) Energy 1997.7 62 Key emitting sectors10 Country profile Industrial processes and product use Not estimated Not estimated Agriculture, forestry and other land uses 476.9 15 Waste 751.7 23

Water: Geographical loca- Middle East • increased water shortages from lower rainfall and higher evaporation; tion United Nations Framework Convention on Climate Change: Asia Pacific • increased storm water flooding from greater rainfall variability; 2 Gaza Strip: 365 2 insufficient rain to recharge aquifers; Land area1 West Bank: 5,655 km 2 Total: 6,020 km km • reduced surface and groundwater quality; and lower supply of water from Israel, the occupying power. County area2 Total (land and water): 6,257 km2 Agriculture: • West Bank: 2.83 million people (51% men and 49% women) • more frequent droughts and increased desertification; Population3 • Gaza Strip: 1.87 million (50.7% men and 49.3% women) • changes in economic viability of crops, such as shorter growing seasons; • State of Palestine: 4.70 million (50.9% men and 49.1% women) • increased crop water requirements; • decline in grazing ranges and stocks; 2 2 West Bank: 522 people/km ; Gaza Strip: 5373 people/km ; State of Palestine: 816 • and higher food prices. Population density 2 people/km Energy: • Agriculture and fishing (3.2%) • increased energy demands to cope with temperature extremes; • Mining, manufacturing, electricity and water supply (13.3%) • and rising fuel demands to cope with water shortages. • Construction (6.3%) • Wholesale and retail trade and repair (18.2%) Public health: Key economic sec- • Transportation and storage (2.0 %) • increase in public health aliments related to a lack of water, such as diarrhoea, tors and percentage • Financial and insurance activities (3.7%) cholera, and dehydration; (%) of Gross Domestic • Information and communications (4.0%) • increased heat stress from high-temperature extreme events; Product4 • Services (20.2 %) • and spatial and temporal alteration of disease vectors, including malaria, leishman- • Public administration and defence (15.1%) iasis, and tick-borne diseases. 11 • Households with employed persons (0.1 %) Key sectors vulnera- Coastal management (the Gaza Strip): 1213 • Other5 (13.9 %) ble to climate risks • saline water intrusion into the coastal aquifer; • Total Gross Domestic Product: US$13.7 billion • land use impacts from sea-level rise and coastal erosion; The West Bank climate falls in the Mediterranean zone. Only the Lower Jordan Valley • soil degradation; has a different transitional climate, between dry steppe and the extreme desert condi- • and loss of biodiversity. Climate tions of the Dead Sea region. The Gaza Strip is located in a transitional zone, between Waste and wastewater: the arid desert climate of the Sinai Peninsula and the temperate and semi-humid Med- • waste and wastewater infrastructure vulnerable to frequent flooding; iterranean climate along the coast 6 • and high temperatures increase methane emissions through accelerated waste The country emitted 3,226.3 Gg CO2 eq. in 2011 with 0.8 tCO2e/capita.7 decomposition. 8 Regional and international comparisons (tCO2/capita) for 2011: Food: • Qatar (44) high temperatures and prolonged droughts affect yield and productivity. • United Arab Emirates (20) • United States (17) Gender: Greenhouse gas • Netherlands (10.1) women and children are very vulnerable to the impacts of climate change. emission profile • Israel (9) Industry: • China (6.7) prolonged drought can affect access to water. • Lebanon (4.7) • Jordan (3.6) Terrestrial ecosystems: • Yemen (1) high temperatures can cause fires and loss of soil carbon from prolonged droughts. • State of Palestine (0.5)9 Tourism: high temperatures and flooding damage archaeological sites and affect tourism.

1 INCR 2016 Urban infrastructure: 2 INCR 2016 increased heat stress from high temperature events and flooding. 3 Palestinian Central Bureau of Statistics, 2019. Population, housing and Establishments Census 2017: Census final Results - Detailed Report- Palestine. 4 PCBS 2018, Palestine in Figures 2017 5 Other includes custom duties and net VAT on imports, minus financial intermediation services indirectly measured. 6 ClimaSouth Technical Paper N.2016( 2). The Economics of Climate Change in the Palestine. February 2017. Prepared by: Tippmann, R. and 10 INCR 2016 (Page 17) Baroni, L. 11 EQA (2016): Co-benefits of Adaptation and Mitigation Actions Included in the Nationally Determined Contributions (NDC) Under United Nations 7 INCR 2016 (Page 55) Frame Work Convention on Climate Change. 8 INCR 2016 (page 87) 12 INCR 2016 9 Note: these are net emissions of CO2 (not CO2 equivalent) per capita. Emission of CO2 equivalent per capita in the State of Palestine is 0.8. 13 Climate Change Adaptation Strategy and Programme of Action for the Palestinian Authority (2010) – Page 14.

6 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 7 State of Palestine demographics Green Climate Fund National Designated Environment Quality Authority Authority The 2017 Census shows there are 4.7 million Palestinians living in the State of Palestine, with 1.88 million in the Gaza Strip and 2.83 million in the West Bank. • United Nations Development Programme • United Nations Environment Programme • United Nations Industrial Development Organization According to the United Nations, more than 1.5 million Palestinians live in refugee International Accred- • Food and Agriculture Organization ited Entities • Japan International Cooperation Agency, or JICA camps in neighbouring countries, and a further 4 million refugees live outside of • International Fund For Agricultural Development camps. An estimated 5.3 million Palestinians live in Israel, the Gaza Strip, and the West • World Bank • Agence Française de Développement Bank, including East Jerusalem.

Potential Direct • Palestinian Investment Fund Access Entities (to be • Bank of Palestine Past, current, and future Gross Domestic Product )nominated • Amman-Cairo Bank The economy in the State of Palestine has experienced considerable structural change since the establishment of the Palestinian National Authority in 1994. The continued Israeli occupation since 1967, political challenges, and an uncertain path

1.1 Development profile to peace, add complexity to the economic situation. Before 1967, the economy of the Occupied Golan Heights Golan Occupied Occupied Golan Heights Golan Occupied ¥

Lebanon P (Syria) (Syria) State of Palestine was dependent on agriculture, including fishing in the Gaza Strip. Al Qunaytirah

Acre P Syria Agriculture’s contribution to Gross Domestic Product, or GDP, declined from 37% P Tiberias P

Haifa LAKE

Geography of the State of Palestine TIBERIAS Nazareth P

Jordan River / Sheikh Hussein at the end of the 1970s to 3.8% in 2014. In 1994, the Palestinian National Authority

Jenin P

Tubas Tulkarm P The State of Palestine comprises the West Bank, including P divided the economy into sub sectors including: service, industry, agriculture, Nablus P Qalqiliya P

Tel Aviv-Yaffo Salﬁt P P JORDAN RIVER

East Jerusalem, and the Gaza Strip. Based on the Oslo o West Bank Amman construction, tourism, and wholesale and retail trade. The GDP was at a record low of Ramallah P Jericho P Allenby / Ashdod King Hussein P Jerusalem P Mediterranean Sea

Accords, the United Nations consider both regions to be Safe Passage P (Non-functional) Bethlehem US$5.1 billion in 1994. It has since grown, reaching an all-time high of US$14.5 billion

Hebron

P Dead S ea Gaza P occupied by Israel, although Palestinians do control some Gaza in 2017. In 1994, the highest contributor to GDP was the service sector, at US$1.5 Strip Khan Yunis P

Rafah Be'er Sheva parts of the regions. The State of Palestine is divided P Jordan billion, followed by the mining, manufacturing, electricity, and water sectors, at

Israel into four areas, each of which is under a different type of Al ‘Ojah / Nitzana US$1.1 billion combined. In 2016, the highest contributing sectors in percentage control: terms were:

Egypt • Area A: fully governed by the Palestinian National • service (20.2%); International boundary

Boundary of former Palestine Mandate

1949 Armistice (Green Line) Authority; Area A and B Area C Unilaterally annexed area (East Jerusalem) • wholesale and retail trade, including and repair of motor vehicles and motorcycles Airport

Main City

Border Crossing • Area B: under shared control; Wadi ‘Arraba Eilat o P (18.2%); Taba

0 15 30 60 DISCLAIMER: The designations employed and the presentation of material on this map do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Reproduction and/or Km use of this material is only permitted with express reference to “United Nations OCHA oPt” as the source. • Area C: under full Israeli control; and GULFAQABA OF • public administration and defence (15.1%); and Figure 1: Land area - 6,020, • Gaza Strip: under Israeli siege. Population - 4.9 million • mining, manufacturing, electricity, and water supply (13.3%). Area A, made up of Palestinian city centres, excluding Current and future growth rate Hebron, is under Palestinian civil and security control. Area B, made up of the built-up areas around Area A, is under Palestinian civil control and joint Israeli and Palestinian The pattern of economic activity in the security control. Despite the joint control, Israel has the exclusive right to enter Area State of Palestine is unusual, and economic B to conduct security operations, as desired. Area C, which makes up 61% of the West indicators show major fluctuations Bank, is under Israeli civil and security control. These area assignments were meant to in economic growth. In conventional be temporary, with land being phased into total Palestinian control by the end of a economies, economic activity and growth five-year interim period as designated under the Oslo Accords. The Accords set 1999 stimulators largely relate to internal as an end date for final status negotiations. economic variables and policies. In contrast, the Palestinian economy operates in an environment rife with internal and external Figure 2: State of Palestine GDP per capita.

8 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 9 risks, as well as challenges that significantly affect and change the levels of social and economic development under three components: longevity, economic situation. The Palestinian Monetary Authority forecasted education, and income per capita.14 The State of Palestine ranked 119 out of 189 2.2% growth in real GDP in 2018. This compares to 2.9% growth in 2017. countries on the Global Human Development Index in 2018, placing it in the medium The slowdown is in real per capita income, or real GDP per capita, which increased human development category. The State of Palestine’s HDI of 0.672, in 2010, increased by 0.3%. This compares to a 0.4% increase in 2017, which was equal to US$2,494. to 0.687 in the following years. Interestingly, the State of Palestine’s development Growth in real GDP in 2018 remained the same as in previous years, primarily ranking dropped by 12 points between 2012 and 2017. driven by growing private consumption and accumulated arrears. Consumption was largely financed by increased banking facilities. There was also a rise in total Domestic credit levels: Domestic credit to the private sector, in GDP percentage investments. Real GDP growth in the Palestinian economy reached 2% in the terms, increased from 12% in 1996 to 42% in 2016. Despite the overall increase, levels first half of 2018, masking a steep deterioration in the GDP of the Gaza Strip. reduced in 2003 and 2008. The first reduction, from 24.2% to 21.9%, was due to the political situation and reoccupation of the West Bank by Israeli forces. The second The Gaza Strip’s economy has been kept afloat in recent years by large transfers was more severe, with a drop from 24.2% to 19.2%. This followed the 2008 war on including donor aid and spending through the budget of the Palestinian government. Gaza and the political separation of the Gaza Strip. This led to political and economic Together these contributed up to 80% of Gaza’s GDP. However, these two sources deterioration. Since 2008, there has been an overall increase in credit to the private have significantly declined recently, resulting in a 6% shrinkage in economic activity sector, including growth from 26.2% in 2013 to 42% in 2016. in the first quarter of 2018. In contrast, the West Bank’s economy grew by 5% during Ease of doing business: According to a 2019 World Bank report on the ease of doing the same period, mainly driven by public consumption. On the supply side, growth business, the State of Palestine ranked 116 out of 19015 countries. The country was was concentrated in wholesale and retail trade and construction, as these activities assigned an ease of business score of 59.11 out of 100. Training for reform scored remain less affected by transfer status. at 59.11 out of 100, slightly above the 58.3 regional average for the Middle East Gross Domestic Product per capita: Between 1994 and 2000, Gross Domestic Product, and North Africa. The State of Palestine scored lower than Jordan, but higher than or GDP, per capita grew in the State of Palestine. The second Intifada in 2000 led to Egypt and Lebanon. The World Bank report also measured regulations related to 11 a decline in GDP per capita, dropping from US$1,723 in 1999 to US$1,156 in 2002. aspects that enhance or constrain business activity. For starting a business, the State of Palestine ranked 171 with a score of 69.36, far below the regional average of 82 and Signs of recovery appeared in 2003, with annual increases in 2003, 2004, and 2005 16 (Figure 2.2). The recovery ended in 2006, following elections and the start of an lower than most Arab economies. Other rankings and scores of interests include : economic siege. GDP per capita dropped to US$1,360 in 2006 compared to US$1,459 • dealing with construction permits: rank 157 and score 56.15; in the previous year. Since 2007, the GDP per capita has increased, due to a new • getting electricity: 85 and 74.16; government, greater openness, and the adoption of economic steps. The biggest • registering property: 84 and 65.04; increase in growth, of 19.1%, occurred between 2009 and 2010. GDP per capita hit a • getting credit: 22 and 80; peak in 2017, at US$3,095, with most of the variation linked to the political situation. • protecting minority investors: 161 and 38.33; Gross National Income per capita: Gross National Income, or GNI, per capita in the • paying taxes: 107 and 68.92; State of Palestine is categorised in the lower to middle-income range. According • trading across borders: 54 and 86.67; to World Bank Atlas income indicators, the Palestinian GNI was US$3,180 in 2017, enforcing contracts: 123 and 52.51; and ranking it 119 out of 189 countries. Like GDP per capita increases, the largest increase • in GNI per capita was 24.4% in 2009, followed by a 19.9% increase in 2012. The biggest • resolving insolvency: 168. reduction in GNI per capita was from 2000 to 2002, with drops of 19.4%, 12.5%, and According to the World Bank report,17 the State of Palestine has implemented 6.5% in respective years. These drops followed the second Intifada. A further reduction measures to reduce regulatory complexity and strengthen legal institutions. The aim of 4.8% in 2006 followed the parliamentary election. In 2015, GNI per capita was of the reforms is to improve transparency of information and reduce time to register US$3,440 before dropping to US$3,180 in 2017. The impact of the political situation property. Registration times should improve, thanks to the removal of the need for on GNI variation is clear. a security check when issuing a purchase permit, and through publishing of official Human Development Indicator: The Human Development Indictor, or HDI, for the statistics on property transactions. State of Palestine was 0.686. HDI is measured on a scale of 0 to 1, with 1 being the 14 UNDP, Human Development Indices and Indicators 2018 Statistical Update highest level of development. HDI is an important composite index, showing the 15 WB 2019. Doing Business report 2019 16 Wafa Palestinian Report – 2018/11/10 (http://english.wafa.ps/page.aspx?id=6fJ1rGa106395516117a6fJ1rG) 17 WB 2019. Doing Business report 2019

10 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 11 Pillar 3: Sustainable Development

Table 1: Basic socio-economic statistics for the State of Palestine from 2010 to 2017 Access to Green Climate Fund resources, through the State of Palestine’s Green Parameters 2010 2011 2012 2013 2014 2015 2016 2017 Climate Fund Country Programme, offer a timely opportunity to contribute to the

GDP growth rate (%)18 8.1 12.4 6.3 2.2 -0.2 3.4 4.7 3.1 priorities and policies in Pillars 2 and 3.

GDP (US$ million)19 8,913 10,465 11,279 12,476 12,715 12,673 13,425 14,498 Pillar 2: Government Reform GDP/capita (US$) 20 2,339 2,665 2,787 2,992 2,961 2,866 2,950 3,095 GNI/capita, Atlas 2,310 2,560 3,070 3,060 3,090 3,440 3,380 3,180 Pillar 2 of the National Policy comprises the following national priorities and policies: method (US$)21 • Citizen-Centred Government: Responsive Local Government and Improving Domestic credit to 23.2 24.5 26 26.1 30.1 35.9 41.9 -- private sector as a Services to Citizens; and percentage of GDP22 • Effective Government: Strengthening Accountability and Transparency and Ease of doing ...... 53.6 54.9 Effective and Efficient Public Financial Management. business23 DB17-19 • Climate finance offers a significant and timely opportunity for climate projects and HDI24 0.665 0.672 0.678 0.683 0.688 0.691 0.689 0.686 programmes to deliver low carbon and resilient solutions, and to contribute to an 25 Population (million) 3.811 3.927 4.047 4.170 4.295 4.422 4.552 4.685 efficient and transparent civil service. Population growth 2.9 3.0 3.0 3.0 3.0 2.9 2.9 2.9 (%) 26 Pillar 3: Sustainable Development Vulnerability score27 n.a. Poverty headcount 0.2 0.2 ...... 1.0 .. Pillar 3 of the Agenda is largely a reform agenda, delivered through 5 national priorities ratio at national poverty lines (% of and 20 national policies. population)28 • Priority 1: Economic Independence National development aspirations: The National Policy Agenda 2017-2022: Putting • Priority 2: Social Justice and Rule of Law Citizens First, is the State of Palestine’s fourth national plan since 2008. Although • Priority 3: Quality Education for All the Agenda cannot chart a path to independence, it sets out the steps required to • Priority 4: Quality Health Care for All ready public institutions to extend their authority and services to all Palestinians, as • Priority 5: Resilient Communities required. Successful implementation of the Agenda will require collective effort from central and local governments, civil society organisations, the private sector, non- The national policies include: government organizations, academic institutions, and international development • Ensuring Community and National Security, Public Safety and Rule of Law; partners. To be purposeful, Agenda goals must be translated into sustainable and tangible actions that provide hope for tomorrow while improving the lives of the • Meeting the Basic Needs of Our Communities’ Palestinian people today. A national vision and its three pillars guide the Agenda. • Ensuring a Sustainable Environment and Adapting to Climate Change; • Pillar 1: Path to Independence • Revitalizing Agriculture and Strengthening Our Rural Communities; and • Pillar 2: Government Reform • Preserving Our National Identity and Cultural Heritage. The adaptation and mitigation proposals prioritized in the State of Palestine’s Green Climate Fund Country Programme offer a timely opportunity to translate the Pillar

18 2015-2010 - World Bank (http://databank.worldbank.org/data/indicator/), 17-2016, ADB 3 priorities and policies into tangible investments in climate-resilient developments 19 https://data.worldbank.org/country/Palestine 20 https://data.worldbank.org/country/Palestine that benefit the Palestinian community. 21 https://data.worldbank.org/country/Palestine 22 World Bank Data (http://databank.worldbank.org/data/indicator/) – Credit to Private Sector only 23 World Bank Data (http://databank.worldbank.org/data/source/doing-business#) Poverty reduction strategies: In 2017, the Palestinian Central Bureau of Statistics set the 24 UNDP, 2016, ‘Human Development Report 2016: Human Development for Everyone’. Retrieved from: http://hdr.undp.org/sites/default/files/2016_ human_development_report.pdf poverty line at US$668 per month for a reference household of five people, including 25 2015 – 2010, World Bank Data (http://databank.worldbank.org/data/indicator/), 2016 – Mini Census Report, 2017 ,2016 - https://data.worldbank. 29 org/country/Palestine two adults and three children. The deep poverty line was set at US$554 per month. 26 2015 – 2010, World Bank Data (http://databank.worldbank.org/data/indicator/), 2016 – Mini Census Report, 2016 27 https://drive.google.com/open?id=17VSnkOjsf-Rh-JoKCgclOmFNXbGQ_WHL 28 World Bank Data (http://databank.worldbank.org/data/indicator/) 29 PCBS 2017. Poverty Profile in Palestine

12 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 13 The household survey shows that 29.2% of the Palestinian population lives in poverty, The education of Palestinian women is very high at more than 80%, but this has not led including 13.9% in the West Bank and 53% in the Gaza Strip.30 The population has to their active participation in the economy. Fewer than 20% of women participate in become increasingly impoverished in recent years. The Gaza Strip consistently has the the labour force. Participation is particularly low in the private sector, when compared highest rate of incidence, with around one million people living in poverty. This trend to the public sector. Social norms on appropriate jobs and education for women limit reflects the devastating impact of the Israeli occupation, the Israeli-imposed siege, job opportunities. Gender bias also plays a role, with employers reacting negatively and regular attacks on the Gaza Strip. The links between poverty, political insecurity, to hiring women. Other gender-based issues of concern include: asset poverty, high occupation and blockades are undeniable. Poverty figures are consistent with other fertility rates, and early marriage. indicators, such as the unemployment rate. In 2017, participation in the labour force by those aged 15 years and above was 46.5%. Unemployment in the West Bank was The Cross-Sectoral National Gender Strategy: Gender Equality and Women’s 19% compared to 46.6% in the Gaza Strip31. Empowerment 2017-2022, has been prepared by the Ministry of Women’s Affairs. The strategy’s vision is: “A Palestinian society in which men, women, girls, and boys The Social Development Sector Strategy 2017-2022 was developed based on enjoy equal rights and opportunities in the public and private spheres”. The strategy three strategic objectives that link closely with the National Policy Agenda and the includes five strategic objectives. Sustainable Development Goals for 2030.32 The objectives are to: reduce poverty; eliminate all forms of marginalization, violence and social exclusion in Palestinian 1. Reduce the proportion of violence directed against Palestinian women in all its society; and enhance social cohesion. The expected outcomes of reducing poverty forms by half. are that: 2. Increase the participation of women in decision-making positions in governmental • Poor and vulnerable households are able to ensure their basic needs in appropriate and non-governmental institutions that have the most impact on the lives of men quality and quantity; and women by at least 10%. • People from poor households are engaged in economic and collective 3. Institutionalize gender equality and justice issues and empower women in all empowerment projects; and official institutions. • Effective national and local social protection frameworks exist that protect the poor and vulnerable from shock, crisis, and disaster. 4. Enhance women’s participation in the economic sector. • The Ministry of Social Development is the sector-leading agency and it has set 5. Improve the quality of life of poor and marginalized households. three main goals. Infrastructure investment policies: The economy in the State of Palestine is small • Improve the standard of living of marginalized groups in urban and rural areas and and relatively open, with several large holding companies dominating the economy. refugee camps. Palestinian businesses have a reputation for professionalism and quality of product. Large • Develop social programmes for people with disabilities, the elderly, children, Palestinian enterprises are internationally-connected, with partnerships extending into juveniles and school dropouts. Asia, Europe, the Gulf, and the Americas. Due to the small size of the local market, access • Raise the level of cooperation and coordination with non-government to foreign markets through trade is essential for private sector growth.35 organizations and civil society to achieve the comprehensive development of an integrated Palestinian community. The Palestinian government has made great effort to create an enabling business and investment environment. Different institutions have been created to promote Gender equality: The United Nations says “The Israeli occupation remains the major and develop investments such as the Ministry of National Economy, the Palestinian obstacle for Palestinian women with regard to their advancement, self-reliance Investment Promotion Agency, the Palestinian Industrial Estate and Free Zone and integration in the development of their society”33. In recent years, the socio- Authority, among others. The government has also enacted laws to provide a legal economic situation has deteriorated both in the West Bank and the Gaza Strip. Gaza, framework for investors and has launched a number of investment promotion which has experienced four ‘wars’ in just one decade, is especially damaged, with activities. In addition, the Ministry of National Economy has concluded free trade more than 50% of the population living below the poverty line.34 agreements that allow for export opportunities. Still, effort is required to create an enabling business environment that attracts direct foreign direct investment. This includes developing a legal framework, building the capacity of relevant institutions, 30 PCBS2017. Palestine in Figures 31 http://www.pcbs.gov.ps/site/512/default.aspx?lang=en&ItemID=2904 and providing a competitive incentive package for investors. 32 Social Development Sector Strategy (2022-2017) 33 https://www.un.org/unispal/document/auto-insert204750-/ 34 https://www.un.org/unispal/document/auto-insert204750-/

35 USDoS 2018. (https://www.state.gov/e/eb/rls/othr/ics/204761/2013.htm)

14 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 15 The National Export Strategy for 2014-2018 proposed a focus on the following sectors In July 2017, the Palestinian Council of Ministers approved an incentive package to with potential: stone and marble; tourism; agriculture, including olive oil, fresh encourage investment in the use of alternative and renewable energy technologies. fruits, vegetables, and herbs; food and beverage, including agro-processed meat; The Palestinian Investment Promotion Agency’s Board of Directors endorsed the textiles and garments; manufacturing, including furniture and pharmaceuticals; and package. Approval of the incentive package is a clear indication of the government’s information and communication technology. vision and its commitment to maintaining a healthy investment environment. The aim is to attract foreign, diaspora, and expatriate investment in accordance with The Palestine Investment Fund was established in 2003 as an independent investment the Agency’s strategic framework. The framework integrates with both the National development-centric sovereign wealth fund. It aims to strengthen the local economy Policy Agenda 2017-2022, and local and international Sustainable Development through strategic investments, and to maximize development impact with good Goals.41 The Agency is committed to seeing the Palestinian energy challenge as an governance. The Fund is leading investments in traditional and renewable energy, opportunity and a viable investment opportunity. agribusiness, real estate, technology, tourism, entrepreneurship, and other vital sectors. With close to US$1 billion in assets currently under management,36 the fund Key economic drivers: The key economic drivers in the State of Palestine are: is uniquely-positioned to attract capital for development projects across a variety of Construction; Water 42 and Information and Communication Technology (ICT) Sector43 critical sectors. and the anticipated sectors for growth and export Agriculture; Agro-industry; Energy; Stone and Marble Sector; Food Processing Sector; Pharmaceuticals Sector; Leather and Emerging green growth strategies: The State of Palestine’s green economy strategy Shoes Sector; Textiles and Garments Sector; Handicrafts Sector and Tourism Sector. remains a challenge. Seventy-five Sustainable Development Goal targets37 have been adopted, and sustainable development principles have been incorporated into many Palestinian financial system: The financial sector, including banks and non-banks, has strategic objectives under the National Policy Agenda. However, several sectors of played a key role in the growth of the Palestinian economy. Today, 15 banks operate in the economy lack objectives that relate to a green economy, and there is no overall the State of Palestine through 285 branches and offices. Their assets totalled US$12.6 green or sustainable economic development strategy.38 Neither the National Policy billion at the end of 2015. The financial sector also runs 9 insurance companies, Agenda 2017-2022 or the National Agricultural Sector Strategy 2017-2022, mention offering services through 116 branches and offices, with assets totalling US$383 a green economy. Further, the Sectoral Strategy for the Development of the National million. There are also 6 formal, specialized lending institutions operating through a Economy 2017-2022, only mentions the green economy once, and the mention is network of 63 branches with a combined facilities portfolio of US$136.7 million. indirect in the context of linking. Section 11 of the strategy links to the Sustainable Development Goals, with the objectives: to move to a green economy; to rationalize Capacity of the private sector: The Palestinian economy faces a number of challenges. the use of energy; to promote the use of solar energy and its impact on sustainable Restrictions resulting from the political situation continue to be the most significant production and consumption; and to promote recycling.39 impediment to economic growth. Uncertainty and lack of hope in progress, together with internal constraints, have contributed to economic stagnation. Although it is true PalTrade is a Palestinian non-profit membership-based organization established in that the economy has grown during certain intervals thanks to inflows of aid from 1998. It has been implementing a project funded by the European Union: Creating the international donor community, this growth is unsustainable in the long-term. In a Business Enabling Environment for a Green Economy in Palestine. The objective is particular, growth has not translated into sustainable employment generation. The to create a national policy that fosters a green-enabling environment for economic longstanding needs to create jobs remains. At the same time, cuts in foreign aid and enterprises, and to build up green capacity to penetrate global markets.40 PalTrade has other external and internal factors have led to a deepening fiscal crisis, which has worked with stakeholders to develop the policy. Palestinian business capacity is being undermined financial stability. In addition, The Palestinian Ministry of National Economy developed across sectors, to help them keep up with green economy developments states three main explanations for the poor performance of the Palestinian economy: and global market requirements that support export development. Further, 15 border closures; withholding of tax revenues; and labour flow reductions to Israel. Palestinian businesses are being supported to develop products for global markets. It is important to note that more than 90% of the private sector consists of small and medium-sized enterprises. This sector has proven to be robust, especially when meeting local needs for construction, agriculture, trade, and services. So far, however, only a few export-oriented businesses have managed to demonstrate their 36 PIF 2017. Annual Report 2017 international competitiveness. Growth sectors are: tourism; light manufacturing; 37 State of Palestine’s Main Message to the 2018 High-Level Political Forum on Sustainable Development. https://sustainabledevelopment.un.org/ memberstates/palestine 38 Fosse J, Patrick K. et al., 2016. Towards a Green Economy in the Mediterranean Assessment of National Green Economy and Sustainable Development Strategies in Mediterranean Countries. eco-union, MIO-ECSDE, GEC. Athens. 41 PIPA 2017. (http://www.pipa.ps/page.php?id=271b81y2562945Y271b81) 39 MoNE 2017. Sectoral Strategy for the Development of the National Economy 2022-2017 42 OQR 2014. Office of the Quartet Representative - the Economic Initiative 40 PALTRADE 2016. Creating a business enabling environment for a green economy in Palestine NEAR/TS 805-381/2016- 43 PalTRADE 2016. Priority Economic Sectors (https://www.paltrade.org/en_US/page/priority-economic-sectors)

16 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 17 information and communication technology; agriculture; energy; construction; According to the agro-ecological zones of the West Bank, the eastern slopes are building materials; and water. classified as arid to hyper-arid, and the semi-coastal zone, or western part of the West Bank, is classified as semi-arid to sub-humid.46 Severe aridity (44% of the land) affects National credit rating: A sovereign credit rating is the rating of a country or sovereign the eastern and most southern parts of the West Bank. The semi-arid area, which entity. Sovereign credit ratings give investors insight into the level of risk associated is promising agricultural land, is subject to urban sprawl. Urbanization also affects with investing in a particular country, including the political risk. At the request the sub-humid and humid areas (26% of the land), which are heavily populated. The of the country, a rating agency will evaluate the country›s economic and political vast area of arid climate provoked salinization process due to high temperature and environment to determine its rating. A good rating is usually essential for developing evaporation that is the main driving force to desertification in this area. countries that want to access funding in international bond markets. The State of Palestine does not have a global credit ranking because it is not recognized as a full The Gaza Strip has a temperate climate, with mild winters and dry, hot summers UN member state. subject to drought. Average rainfall is 300mm. The terrain is flat or rolling, with dunes near the coast. The highest point is Abu ‘Awdah (Joz Abu ‘Auda), at 105 metres above 1.2 Climate change profile sea level. There are no permanent water bodies in the Gaza Strip, though large- scale sewage ponds and sewage flowing through Wadi Gaza have become de facto 47 A. Climate scenarios hydraulic features. Climate change scenarios and projections Temperature: The State of Palestine is situated in the Middle East, a region that generally experiences four months of hot and dry summer weather, with a short, The State of Palestine lies within the Mediterranean climate zone. Like many countries cool, and wet winter with rain from November to March. The central highlands have around the world, it faces the challenges and consequences of climate change. The occasional frost, snow, and hail. The Jordan Valley, in the south, is warm and very dry, State of Palestine also faces many other challenges, such as the Israeli occupation, while the coastal Gaza Strip is more temperate - even though it borders the desert. movement restrictions, and a lack of sovereignty and control over resources. The Summer temperatures average 30oC in Jericho, 25oC in Gaza, and 22oC in Hebron, inability to manage natural resources sustainably, or to enforce laws, aggravates the which is 850 meters above sea level. Mean temperatures range from 13oC in Jericho threat of climate change, especially in the face of increasing population, poverty and Gaza to 7oC in Hebron during the winter. levels, and food insecurity. Rainfall: As mentioned, the Palestinian climate varies from semi-arid in the west to Considering a wide range of natural hazards in the State of Palestine, it ranked first out extremely arid in the east and southeast. The rainy season typically starts in December of 58 countries in the INFORM Global Risk Index for 2018, with a value of 4.6 out of 10.44 and ends in March; however rainfall can occur in the months before December and A grade between 3.5 and 5 is considered to be of medium risk. Susceptibility towards after March. Rainfall in June, July, and August is rare. human and natural hazards is significant, given the unique situation in the State of Palestine. The key climate-change impacts most likely to affect Palestinians are: The mean annual rainfall in the West Bank varies from 650mm in the west to less than 100mm in the east,48 with a long-term annual average of 454mm. The Palestinian • Intensification of extreme weather phenomena, such as high wind, hot waves, territories experienced severe drought during the 2009-2010 and 2010-2011 rainfall and frost; seasons. The average annual rainfall for 2010-2011 for the entire West Bank was • Changes in precipitation quantity and patterns; 347mm. The long-term average annual rainfall for the Gaza Strip is 372mm.49. Rainfall • Drought episodes; is unevenly distributed and varies considerably by Governorate, especially when • Stormy rainfall and flooding event; comparing north to south. In 2010-2011, rainfall in the Gaza Strip was low (225mm) • Soil erosion and desertification; and compared with the long-term annual average. • Sea level rise and the intrusion of salty water into the coastal aquifer in Gaza. Climate: The climate in the West Bank can be characterized as hot and dry during the summer, and cool and wet in winter. Climate zones range from extremely arid to humid, according to the De Martonne aridity index classification for arid areas.45 46 Arij 2015. Analysis of climatic variability and its environmental impact across the Occupied Palestinian territories 47 UNEP 2009. Environmental Assessment of the Gaza Strip 48 Palestinian Hydrology Group 2018. https://www.researchgate.net/figure/Rainfall-map-of-the-Palestinian-Territories-after-Palestinian-Hydrology- 44 INFORM Global Risk Index for 2018 group-Source_fig322841745_5 45 Land Research Centre 2007 49 MoA 2013.

18 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 19 Future climate scenarios: The IPCC Fifth Assessment Report (AR5) has developed future B. Vulnerabilities climate scenarios for the State of Palestine.50 Three scenarios are representative of the full range of possible outcomes, and these are listed in Table 2. All scenarios suggest Almost all economic sectors in the State of Palestine are likely to be impacted by reduced cold periods and more warmer periods, both becoming more prominent climate change through intensification of extreme weather events. Such events with time. Rainfall is expected to decrease by up to 30% by 2090. The risk of drought include: high winds; heat waves; frost; changes in precipitation quantity and patterns; and flood, due to the rare wettest days become more frequent, will also increase with more frequent drought episodes; stormy rainfall and flooding events; soil erosion and increasing emissions. desertification; sea level rise; and the intrusion of salty water into the coastal aquifer in the Gaza Strip. Table 2: Future climate scenarios for the State of Palestine51 The most vulnerable sectors recognised in the National Adaptation Plan are: water; Scenario 1: The most optimistic scenario agriculture; energy; health; industry; waste and wastewater; terrestrial ecosystems; Temperature Increases by ~1oC by 2025, by ~1.5oC by 2055, by ~2oC by 2090. tourism; urban and infrastructure; and coastal and marine. The climate change Temperature-related Reduced cold periods and more warmer periods, both becoming more impacts on these sectors are outlined below. They will contribute to urbanization prominent in time. and internal displacement with the associated challenges of security, housing, waste Does not change or increases slightly in the period to about 2035. Rainfall management, and social protection. Rainfall-related Slight possibility of more flooding. Small possibility of increased periods of drought. Overall, limited change to rainfall characteristics. The coping mechanisms that Palestinians have already developed in the face of climate Scenario 2: The mid-range scenario variability and the physical manifestations of the Israeli occupation would be severely Temperature Increases by ~1oC by 2025, by ~2oC by 2055, by ~3oC by 2090. tested by the impact of climate change. Indeed, the Israeli occupation is constitutive Temperature-related Reduced cold periods and more warmer periods, both becoming more of Palestinian climate vulnerability, eroding the living conditions and livelihoods prominent in time; more so than under Scenario 1. already sensitive to water-related stress. Israeli military and security practices impair Rainfall Decreases by ~%10 by 2025, by ~%15 by 2055, by ~%20 by 2090. existing coping mechanisms, enforce new ones, and generally compound the overall Rainfall-related Little to no possibility of increased flooding. High likelihood of more frequent level of vulnerability to climate change. droughts. Less rainfall per day of rain, on average. 52 The most pessimistic scenario :3 Scenario Climate drivers are classified into natural and human-induced factors. . Human-

Temperature Increases by ~°1.5C by 2025, by ~°2.5C by 2055, by ~°4.5C by 2090. induced factors include the separation of the West Bank and the Gaza Strip into two

Temperature-related Reduced cold periods and more warmer periods, both becoming more geographic locations, both naturally and politically. This is one of the main constraints. prominent in time. Israeli control over land resources amplifies the inequitable distribution of resources Rainfall Decreases by ~%20 by 2055, and to ~%30 by 2090. and services. A number of other natural factors play a role. Rainfall-related A pattern of reductions in average daily rainfall and total rainfall through heavier • Temperature: warming of the eastern Mediterranean. rainfall days. Extended dry periods and reduced wet periods. An increase in drought risk. The rare wettest days become more frequent, especially in the West • Precipitation: change in the quantity and pattern. Bank, raising the risk of flood. • Extreme weather events: acute heat waves, sand storms, and heavy spring storms.53 • Evapotranspiration: the increase in evapotranspiration rates. • Sea level rise: annual storm and century surges. • Drought and floods. • Mismanagement of natural resources: land, water, biodiversity, forest, and rangeland. Climate risk: The economic risks of climate change have many dimensions and cut across sectors. The impacts are both direct and indirect. Further, risks are difficult to quantify. They can include: direct physical risks; indirect risks such as litigation, regulation, and competition; and production risks. Usually only direct risks are considered. Direct risks of climate change are likely to affect sectors that depend on natural resources, such as agriculture, fishing, forestry, health care, and tourism.

50 INCR 2016. (Chapter 4, Section 6 and NAP Appendix 3) 51 INCR (2016) on Page 24 or NAP (2016) on page 109. 52 Climate Change Adaptation Strategy and Programme of Action for the Palestinian Authority 53 Climate Change Adaptation Strategy and Programme of Action for the Palestinian Authority

20 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 21 Sector impacts: Almost all economic sectors in the State of Palestine are likely Climate change mitigation faces many challenges in the State of Palestine. A lack to be impacted by climate change-induced drought, flooding, extreme climate of sustainable infrastructure and technology-based strategies reduces the long- uncertainties, sea level rise, soil erosion, land degradation and salinity, and other term impact of mitigation interventions. Having university researchers conduct hazards. investigations is constrained by a lack of data and information, as well as financial and human resources. The need to build technical, institutional, and human capacity C. Greenhouse gas emissions, key emitters, and mitigation challenges is limited by a lack of financial resources to cover capacity-building interventions. Further, a lack of coordination and cooperation among stakeholders limits and The State of Palestine is a small developing country with very low levels of CO2 eq. discourages the involvement of key players and hinders public-private partnership emissions at less than 0.008%54 of world emissions. Total greenhouse gas emissions and investment. A lack of awareness limits the active participation of civil society to 2011, as reported in the Initial National Communication Report, were 3,261.7 Gg organizations and makes effective and efficient planning more difficult. Finally, the CO2 eq. excluding removals. Distribution by sector included: 1997.7 Gg CO2e from ability to develop regional mitigation and adaptation strategies is limited by conflict the energy sector; 751.7 Gg CO2e from the waste sector; and 512.3 Gg CO2e from the in the region due to the continued occupation. agriculture sector (Table 3). Taking into account CO2 sequestration by the forestry and land use sector of -35.4 Gg CO2e, the total greenhouse gas emissions were 3,226.3 Gg CO2e. This indicates that sequestration was equal to 1.1% of total greenhouse 1.3 Climate change response gas emissions. On a Global Warming Potentials weighted basis, emissions of carbon dioxide (CO2) dominated the national emission total, comprising 65%, followed by 1.3.1 National frameworks methane (CH4) at 25%, and nitrous oxide (N2O) at 16%.55 The State of Palestine has been proactive in pursuing climate governance through a Table 3: Key emitters and related mitigation challenges range of actions. Greenhouse gas emissions in the State of Palestine in the year 2011 (“-“represents, not estimated due to non- Became a state party to the United Nations Framework Convention on Climate availability of data or negligible value).56 Change in March 2016. Greenhouse Total (CO2, Greenhouse gas gas sources and CH4 and CO2 Signed and ratified the Paris Agreement in April 2016 and became a state party to the sinks N2O), CO2-e CH4 N2O NOx CO NMVOC SO2 Emissions Agreement in November of the same year. Energy 1997.7 1930.85 2.0447 0.0772 - - - - Industrial Nominated the Environment Quality Authority as the Country’s National Designated ------processes Authority to the Green Climate Fund, with acknowledgement by the Fund in November Solvent and 2016. other product ------use Submitted an Initial National Communication Report and a National Action Plan to Agriculture 512.3 - 8.7754 1.0581 the United Nations Framework Convention on Climate Change in November 2016. Land-use change and -35.3962 -35.3962 ------Submitted Nationally Determined Contributions in August 2017 (Table 5). forestry Waste 751.7 4.7375 27.4009 0.5534 - - - - In addition to the submitted documents, 19 sector strategies and 3 cross-sector Total strategies and plans have been developed. greenhouse gas emissions, 3261.7 1935.6 38.2210 1.6887 - - - - excluding removals Total greenhouse gas emissions, 3226.3 1900.2 38.2210 1.6887 - - - - including removals

54 Environmental Indicator - web site visited 2019/1/21. http://archive.stats.govt.nz/browse_for_stats/environment/environmental-reporting-series/ environmental-indicators/Home/Atmosphere-and-climate/global-greenhouse-gases/global-greenhouse-gases-archived2017-10-19-.aspx) 55 INCR (2016). 56 INCR (2016)

22 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 23 1.3.1.1 Snapshot of national initiatives under the United Nations Framework The Palestinian Council of Ministers approved the Nationally Determined Contributions, Convention on Climate Change The Nationally or NDCs, in August 2017. The first NDCs were submitted in both English and Arabic to the Determined Con- United Nations Framework Convention on Climate Change secretary in the same month. tributions58 The documents included: an implementation roadmap, and English and Arabic sum- maries for policy makers. The Contributions included all of the proposed mitigation and Table 4: Summary of major climate policies and responses adaptation actions to reduce climate change impacts and to achieve the Sustainable National initiatives Responses Development Goals across all sectors and levels of government. Mitigation measures to reduce greenhouse gas emissions are conditional on receiving National Policy The National Policy Agenda: Putting Citizens First 2017-2022 and the 19 sector strategies international support in the form of finance, technology transfer, and capacity building. Agenda and 3 cross-cutting strategies constitute the State of Palestine’s fourth national plan since The conditional mitigation contribution has been planned under the two scenarios, inde- 2017-202257 2008. The document’s title signals the commitment to serve the Palestinian people. The pendence and status quo. Under the independence scenario, the planned reduction is Agenda is built around a national vision and its three pillars: 24.4% by 2040 relative to business-as-usual, and the status quo scenario is 12.8% by 2040 1. Path to Independence; relative to business-as-usual. The State of Palestine’s emissions per person are extremely 2. Government Reform; and low. In 2011, they were estimated at 0.8 t CO2eq per capita per year, forecasted to 3. Sustainable Development. grow to 1.6 t CO2eq per capita per year by 2040 under the independence scenario or Pillar 1 has four priorities: 1.2 t CO2eq per capita per year under the status quo scenario. This is significantly less 1. Freedom and independence; than the global average of 7.58 t CO2eq per capita per year. 2. Equality and justice; The NDCs were developed through a multi-stakeholder engagement process, building 3. Prosperity and development; and on development of the Initial National Communication Report and the National Action 4. Improvement of public services, including the environment and its sustainability. Plan. The process had high-level political endorsement from the Palestinian government. Under Pillar 2, or government reform, the focus is on the efficient and effective manage- The adaptation targets in the NDCs resemble the adaptation priorities and related proj- ment of public resources and the promotion of accountability and transparency. Under ect idea Pillar 3, the focus is on reducing unemployment and poverty rates; the realization of so- outlined in the Action Plan. Implementation of the adaptation actions, targeting only the cial justice; strengthening youth; and raising the quality of education and health services. highly vulnerable sectors, would cost US$3.5 billion. The Contributions document provides further detail on the cost per adaptation action, per sector. The technology and capacity required for implementation, including knowledge and skills, and the necessary steps were also identified. Implementation of the NDCs would require effective governance to drive progress, ensure accountability, coordinate decision-making, and maintain political will at all levels. This process should include the support of relevant sectors with planning and implementation of mitigation and adaptation actions. Other requirements include:

• National and international assessment and communication of financing and support needs. • Setting measurable, reportable and verifiable actions related to the implementation. • Further mainstreaming of mitigation and adaptation within economic development. • Promoting mitigation and adaptation actions and improving cooperation among ministries. • Mobilizing support for mitigation and adaptation actions.

The State of Palestine is in the process of determining the most appropriate process for setting measurable, reportable, and verifiable actions for implementation and is intend- ing to implement a robust measurement system. The Palestinian government has chosen the Environment Quality Authority to be the single, national entity responsible for driving implementation of the NDCs and reporting on implementation. The National Committee on Climate Change, on behalf of the Pal- estinian government, is responsible for preparing climate-related policies, and following decisions by the Cabinet. It also monitors implementation of policies. The Environment Quality Authority is responsible for coordinating implementation at the national level and between sectors. The Palestinian government has committed to making a fair and ambitious contribution to global efforts to limit emissions, consistent with the objectives of the United Nations Framework Convention on Climate Change. The Palestinian government reaffirms its belief in the principles of equity, and of common but differentiated responsibilities and respective capabilities.

57 National Policy Agenda (2022-2017). 58 NDC 2017.

24 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 25 Co-benefits of A document outlining the co-benefits of the State of Palestine’s Nationally Determined National Adapta- The State of Palestine submitted its sixth National Adaptation Plan to the United Nations adaptation and Contributions was submitted to the United Nations Framework Convention on Climate tion Plan 2016 Framework Convention on Climate Change in November 2016. The Plan provides: an mitigation actions Change in August 2017. assessment of historical climate trends; identification and prioritization of vulnerabilities; Analysis of the co-benefits focussed on conditional actions included in the 2016 National future climate scenarios; and details of adaptation options and cost estimates. The plan Adaptation Plan and the 2017 National Development Plan. The Initial National Commu- also outlines future developments required for Palestinian institutions to be able to partici- nication Report informed the mitigation actions, with action-related data taken from the pate in climate-modelling research. Further, an outline of the process for future monitor- long-range Energy Alternatives Planning system. For each action, potential co-benefits ing and evaluation and next steps is included. were identified and assessed. Drivers and assumptions were described, and a relative The Plan is a living document. Sectors should review it regularly in accordance with the score for the potential impact of the co-benefits was determined. identified systematic process, to identify and prioritize vulnerabilities and adaptation op- A consultation with national stakeholders informed the co-benefit analysis. Stakeholders tions. This is particularly important for sectors where thinking is less advanced and there helped identify the 12 highly-vulnerable sectors for the State of Palestine. Co-benefit is a need to build on the scope and scale of adaptation options. This is critical if options options within each sector were described and given relative scores of: are to be commensurate with the challenges posed by the three climate scenarios. • negative, Although the adaptation options make use, wherever possible, of existing technologies • low, and techniques available in the State of Palestine, many require imports from outside • medium, or the country. There is also substantive need for technology transfer, training, and capacity • high. building. These aspects, and the scale of implementation, drive the considerable finan- Outside of the highly vulnerable sectors, co-benefits for adaptation in other sectors were cial needs which exceed US$3.5 billion over the next 10 years. The State of Palestine’s identified and their contribution to national development goals was assessed. Each ad- ability to implement its National Adaptation Plan will rely on securing substantial financial aptation option was scored based on how it would reduce greenhouse gas emissions. A support from climate change resources, international financial institutions, and interna- ‘negative’ score indicates that the adaptation could increase emissions. tional donors. The co-benefits were integral to prioritizing adaptation options in the National Adapta- tion Plan and the scores contributed to an overall ranking of options for each sector.

Initial National The Initial National Communication Report was submitted to the Secretary of the United Communication Nations Framework Convention on Climate Change in 2016. The report highlights the key Report 2016 outcomes of work by the State of Palestine on:

• greenhouse gas inventories; • analysis of mitigation and adaptation potentials; • measures taken to tackle climate change; and • technical and institutional challenges.

The two-year process to develop the Report involved all national stakeholders and experts, and included a focus on national capacity building. UNDP/PAPP and the Govern- ment of Belgium supported its development. The State of Palestine’s Initial National Communication Report included information on:

• country circumstances; • greenhouse gas mitigation; • vulnerabilities; • adaptation constraints, and gaps; and • financial, technical, and capacity needs.

The national greenhouse gas inventory for the State of Palestine found that the absolute levels of CO2 eq emissions were less than 0.008% (0.0076 %) of world emissions. Further, the total greenhouse gas emissions were 3,261.7 Gg CO2 eq. (excluding removals). A list of sector distributions follows.

• Energy sector: 1997.7 Gg CO2e • Waste sector: 751.7 Gg CO2e • Agriculture sector: 512.3 Greenhouse gas mitigation scenarios for all economic sectors were assessed, and it was found that under a status quo scenario, 2040 emissions could be projected depending on which actions were taken. • Implementing ‘realistic actions’ would lead to 7,980 Gg CO2 eq. of emissions, or a reduction of 12.5%. • Implementing ‘all actions’ would lead to 7,950 Gg CO2 eq. of emissions, or a reduction of 12.8%.

In the Initial National Communication Report’s chapter on vulnerability and adaptation, the National Adaptation Plan methodology was identified, and historic trends in climate sensitivity and adaptive capacity of the 12 sectors was described. The chapter also included: future climate scenarios; adaptation measures for each sector, including prioritization scores and estimated costs; future plans to participate in climate-change modelling research, monitoring and evaluation; and alignment of donor programmes and activities with the focal sectors.

26 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 27 Table 5: Summary of Nationally Determined Contribution targets Estimated Implement energy efficiency measures to reduce consumption and use 13.5 resources of imported energy The National Adaptation Plan identifies a wide range of highly vulnerable issues across 12 required US$ sectors. Many of these issues are interconnected across sectors, most notably in relation (million) Electricity grid upgrades 16.3 to water, agriculture, food, and energy. The energy sector is the main contributor to total Construction of fossil fuel storage facilities 21.2 greenhouse gas emissions (62%), followed by waste and agriculture (15%). The energy and agriculture sectors are the focus of the following interventions because of their increased 4. Energy sector in the Gaza Strip 176 million potential to mitigate and adapt to the impacts of climate change. Additional supply of energy from neighbouring countries 10 Adaptation: Increase efficiency of the Gaza Power Plant 10 1,024 million 1. Agricultural sector in the West Bank Use renewable energy, such as solar, to reduce the use of imported 50 Enhance sustainable community-level irrigation schemes and infrastruc- 19.4 energy ture Implement energy efficiency measures to reduce consumption and use 6 Climate-smart agriculture 146 of imported energy Improve water-use efficiency and use of alternative water resources 140 Electricity grid upgrades 100 Land-use planning and management: greening, afforestation, and 600 Mitigation: rangeland development 1. Energy sector 2,540 million Agricultural disaster risk reduction and management (DRR/M) 88 Solar photovoltaic: generation of 20% to 33% of electricity using solar 700 Increase availability of animal feed (including plant and organic resi- 16 photovoltaic sources. Energy service companies can be used to over- dues) at an affordable price come financial barriers. Improve livestock-production pens 15 Energy efficiency in buildings: create buildings standards for thermal 700 efficiency, developing on existing regulations. 2. Agricultural Sector in the Gaza Strip 198.7 million Conditional Use of waste for cement production: municipal solid waste used as a 700 Climate-smart agriculture: management of crop production systems 40.4 substitution for 20% of coal in cement production. Acquired through including soil and water resources for better environmental sustainability contract tender to private organizations. and improved economic profitability for farmers Conditional Use of waste for electricity generation: deployment of a 1 MW waste 240 Improve water-use efficiency and use of alternative water resources 14.3 incineration unit to manage 50 tonnes of waste per day. Support for farmers: subsidies, and awareness training programmes 85 Reduction of methane from landfill: the capture of 14,000 tonnes of 30 Agricultural disaster risk reduction and management (DRR/M) 44 landfill gases per annum for use in power generation. Improve livestock-production pens 15 Energy efficient lighting: annual increase as part of building standards. 170 An increase of 1% per annum using energy efficient light bulbs. 3. Energy sector in the West Bank 267 million 2. Transportation sector 192 million Generation of solar electricity for medium to large scale commercial 99.5 and industrial application Hybrid electric vehicles: promotional campaigns and increases in tax 70 credits for qualifying vehicles. Use renewable energy, such as solar, to reduce to use of imported 106 energy Compressed natural gas-powered vehicles: development of compressed 22 natural gas refuelling infrastructure and an amendment to the Traffic Act Implement energy efficiency measures to reduce consumption, mainly 10.50 regarding license fees. Assumes that 20% of trucks and buses could use for commercial and industrial application compressed natural gas by 2040. Modal shift programmes: numerous measures including standard public 100 service contracts, simplified fare systems, improved passenger information, and better vehicles and maintenance. Envisions a 25% shift from private vehicle to the public bus by 2030.

3. Agriculture Sector 285 million Afforestation: annual increase of 200 hectares of forested land per an- 135 num, building on existing forested land. Adoption of climate-smart production practices and more resource 150 efficient post-harvest processing practices in agricultural value chains (including fruit trees, vegetables, field crops and livestock) that reduce greenhouse gas emissions and increase carbon sequestration in plant biomass and soil organic matter. The objective is for at least 50% of farms in the State of Palestine to apply climate-smart agriculture by 2040

28 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 29 Mitigations N/A B. Climate-related initiatives developed at national, sub-national, and local 1. Sustainable urban demonstration projects levels • Installation of 6 net-metering photovoltaic systems on 6 public buildings in the Tubas Municipality (Municipality Building) 1. National Policy Agenda (2017-2022): The fragility of the environment has been • Public Information Centre • Cafeteria Building - Public Transportation identified as one of the key barriers to development in the State of Palestine. Under • Dynamo-meter Building Pillar 3 of the National Policy Agenda, national priority #10 seeks to promote low- • Youth Centre Building • Storage Building. carbon and resilient communities through a range of policy interventions. • Installation of a small-scale wastewater treatment plant powered by solar energy in Za›atara, and evaluation of the feasibility of upscaling • Reduce and effectively control pollution and greenhouse gas emissions. this technology in Central Asia. 2. Afforestation Project: afforestation through reclamation of approx- • Expand solid waste management and recycling. imately 1200 dunums of unused agricultural land and development • Expand wastewater management, treatment, and reuse. of approximately 1000 dunums of grazing land (increasing carbon sequestration). • Manage, protect, and promote sustainable use, and conserve natural resources 3. Greening the State of Palestine: increasing green cover to provide increased carbon sequestration – ongoing). (land, water, and energy). 4. Rangeland improvement and rehabilitation: new forage plants (shrubs • Keep Palestine green (conserve biodiversity, establish nature preserves, and and trees) will increase carbon sequestration. expand green spaces). Adaptation actions • Increase energy efficiency and reliance on renewable energy. 1. Enhancing food security (Jenin, Tubas, and Ramallah): Implemented by the Ministry of Agriculture. 2. Land, water, and human resources development in marginalized areas 2. The Palestinian National Action Plan on Sustainable Consumption and Production (Hebron, Bethlehem): increase water availability by constructing cis- (2016): Development of the Palestinian National Action Plan on Sustainable terns and improve irrigation by installing water tanks. 3. Rehabilitation of agricultural land (Salfit, Bethlehem, Hebron, Jenin) im- Consumption and Production was led by the Environment Quality Authority. plemented by the Ministry of Agriculture. This was the policy component of the SWITCH MED Project, implemented by the 4. Land development and water resources project (Jenin, Nablus, Qa- Unconditional lqilya, Tulkarem, Hebron): increase water availability by constructing United Nations Environment Programme and funded by the European Union. The a 2,000 m3 pond, improve irrigation scheduling by installing 10 water National Action plan was prepared using a participatory approach, taking into tanks, and minimize water leakages by installing new water conveyance systems. consideration all stakeholders, including: local and national government; semi- 5. Integrated rural development project (Marj Sanour): increase water and non-government organizations; grassroots organizations and initiatives; availability by: constructing 50 ponds with capacities of between 5,000 and 10,000 m3; constructing 15 to 170 cisterns, each with a capacity the private sector; universities; and research centres. More than 300 people of 70 m3; and rehabilitating 10 by 500 dunum lots of sloped terrain to participated in development of the Plan. It covers the period from 2017 to 2022, in minimize soil erosion. 6. Water harvesting project (Hebron district, Jenin): increase water avail- line with the Palestinian National Planning framework. ability in the agricultural sector by constructing 3 large-scale clay ponds with a total capacity of 300,000 m3. The Action Plan provides a roadmap for mainstreaming in three sectors: tourism; 7. Adaptation to climate change project (Tulkarem, Jenin, Jericho, Ra- mallah, Dora): improve adaptive capacity of farmers and agricultural housing and construction; and agriculture and food. By developing and implementing engineers through improved irrigation management, treated wastewa- this Plan, the State of Palestine will be one of the first countries to initiate ter reuse, introducing new fodder seeds, and minimizing soil erosion through minimum tillage implementation of Sustainable Development Goal 12: Sustainable Consumption and 8. Water harvesting and soil conservation project (Jenin, Ramallah, Dora): Production. Development of a national Sustainable Consumption and Production soil water harvesting to improve water availability, soil quality, and to build adaptation capacity in the agriculture sector plan is among its success indicators. 9. Water harvesting project (Hebron): increase water availability in the agriculture sector (animal and crops) by constructing 50 cisterns with 70 to 100 m3 capacity. C. Sector policies and regulations: 10. Water management project (Jordan Valley, Nablus): improve water management and increase available water by rehabilitating 6 wells In response to a changing climate, the State of Palestine has been proactive in and 10km of conveyance infrastructure 11. Enhancing food security (Jenin): improve food security by planting 200 developing a range of frameworks and plans. These will guide the country and dunums of alfalfa key stakeholders, on a low-emission and climate-resilient development trajectory. 12. Enhancing food security (Jenin, Nablus): increase food security by cul- tivating 100 dunums of food crops in Jenin and in Nablus and reusing The challenges posed by climate change and its impact on existing development treated wastewater challenges and natural risks are well recognised. As such, a range of acts, policies, plans, and strategies have been developed and enacted.

30 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 31 The work of the National Climate Change Committee is underpinned by the National Adaptation Plan process building on other United Nations climate work National Policy Agenda and the Nationally Determined Contributions. These programmes and actions. flagship documents provide information on the State of Palestine’s climate change • Advocating and lobbying for increased international support and action at major and disaster risk management priorities and goals. Together, these should inform international and regional meetings, such as the United Nations Framework the development and entrench ownership of a Palestinian country plan. There is a Convention on Climate Change Conference of Parties, inter-sessional meetings great opportunity for Green Climate Fund resources to be mobilized to update and and bodies, and regional Nationally Determined Contributions and National translate some of these national and sector policies and strategies into tangible, Adaptation Plan platforms. climate-resilient development actions that will benefit local communities. • Engaging with and reporting to regional and sub-regional agencies on its mitigation and adaptation activities. Monitoring systems and predictive climate tools • Continuously building capacity in international and regional adaptation and Within the State of Palestine, there is no permanent, real-time climate risk or impact negotiation. monitoring system at the national level. The establishment of such a system is • Selecting the Environment Quality Authority as the Country’s National Designated critical when fully mainstreaming climate change into government structures and Authority to the Green Climate Fund. processes. This system would allow for the proper integration of climate action projects and programmes into the planning and budgeting process of the Palestinian The State of Palestine is actively engaged in a wide range of regional initiatives. government. The system could create planning and budget data, which is needed to Palestinian government institutions have started the process of accession to track, measure, report, and verify climate finance. This is critical for quality reporting organizations and conventions relevant to climate change. The government is also to the United Nations Framework Convention on Climate Change and to climate- engaged in the Global Forum, donor programmes, and a range of initiatives,59,60 finance donors. A roadmap for establishing such a system has been proposed and including those listed below. reported in the Environment Quality Authority documents. The Environment Quality Authority is the National Focal Point of the United Nations Academic institutions have made some estimates of important indices. Birzeit Framework Convention on Climate Change and is participating in, and representing University has assessed The Governance and Climate Vulnerability Index in Palestine, the State of Palestine in most international and regional meetings. The formulation in comparison to other countries including Israel, Jordan, Lebanon, and Syria. The of the National Climate Change Adaptation Strategy was led by the Environment University assessed the extent of climate change and the types of climate governance Quality Authority and implemented by UNDP/PAPP. and their effects on water resources. Delivering German Development Cooperation programmes, including: Adapting to The State Audit and Administration Control Bureau is the supreme audit institution climate change; Adapting to climate change in the water sector in the MENA region; in Palestine. Established in 1994 under presidential decree 22/1994, the Bureau’s and the Open Regional Fund. institutional and legal framework was enhanced by a subsequent decree: 17/1995. In addition, there are multilateral funds linked to the United Nations Framework Pursuant to article 96 of the Basic Law, and the State Audit and Administration Control Convention on Climate Change, including the Global Environment Facility, Green Bureau law of 2005, it became a constitutional organization. The Bureau’s actions are Climate Fund, Adaptation Fund, Special Climate Change Fund, and others. Additional regulated by law, it has a budget within the general budget of the State of Palestine, bilateral funding mechanisms are also available for the State of Palestine to access. and it has an independent legal personality and full legal capacity to assume tasks and powers prescribed under the law. The Bureau also has a legal mandate that The Green Climate Fund Structured Dialogue with Asia: Palestine attended the first authorizes control actions within all entities where financial and compliance audits Green Climate Fund Structured Dialogue with Asia in Bali, Indonesia, from 26 to 29 April are undertaken. In total, 150 staff work for the Bureau, although there are no staff in 2017. Thirty countries in the region attended.61 The Green Climate Fund Structured the Gaza Strip as the Gaza HQ was closed and deactivated in 2007. Dialogue offered the opportunity for interaction between Fund staff, members of the Board, National Designated Authorities, focal points, Accredited Entities, and other 1.3.2 Regional engagement country stakeholders. They provided partners with an opportunity to increase their

Under the National Policy Agenda 2017-2022 and the National Adaptation Plan, the 59 INCR 2016. 60 Capacity Assessment Report 2014. Assessment of National Capacities for Implementing Adaptation and Mitigation Measures and Developing State of Palestine plans to meet international climate change obligations by: Needs for Capacity Development of Palestinian Authority Institutions regarding Climate Change Adaptation and Mitigation. • Commencing the United Nations Framework Convention on Climate Change 61 https://www.greenclimate.fund/documents/2017/690124/20182_Structured_Dialogue_with_Asia_-_Information_for_participants.pdf/c9210bd-7 16f920-4082-3d021-fe2dbd51e

32 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 33 understanding of the Fund and to further develop country and entity programmes. Sources of these funds include: The World Bank Climate Investment Funds; the One main objective of the Dialogue was to determine which priorities identified in Adaptation Fund; the Special Climate Change Fund; and the Green Climate Fund. country strategies were the best match for Green Climate Fund support. An important The second category funds activities within multi-purpose programmes or vehicles outcome of the Structured Dialogue was the articulation of regional programming by donors, such as banks. These activities are not necessarily linked to climate roadmaps that identified trends and emerging priorities at the regional level. objectives. The third category funds projects that are likely to benefit climate change agendas but that do not specify a link to mitigation or adaptation. In the State of Palestinian representatives attended the Second Dialogue in Danang, Vietnam from Palestine, climate finance refers to funding channelled through national, regional, 17-20 April 2018 to enhance the level of engagement between the Green Climate and international organizations for climate change mitigation and adaptation Fund and Asian countries. Through this increased level of direct engagement, the projects and programmes. The National Designated Authority Operational Manual Fund supported low-carbon and climate resilient development in Asia through a and its Standard Operating Procedures, part of the Green Climate Fund Readiness range of measures. programme, lays out the institutional decision-making mechanisms to access climate • Increasing understanding of the Green Climate Fund and the strategic opportunities finance. To qualify, proposals must meet the Green Climate Fund’s six investment for Asian countries. criteria, as explained in the NDA Operational Manual: • Further developing the Asian Roadmap for strategic engagement with the Fund. • impact potential, • Enhancing the country ownership of Fund Projects and accelerating country • paradigm shift, programming. • country ownership, • Increasing the level of understanding with the National Designated Authorities • links Sustainable Development Goals, and Direct Access Entities of the roles of different stakeholders in the Fund process. • needs of the recipients, and • Enhancing private sector engagement in the Green Climate Fund portfolio targeting immediate opportunities presented by rapidly-growing Asian countries. • cost efficiency and effectiveness. • Increasing understanding of various funding windows, financial instruments, Public finance management roadmap: The financial sector of the State of Palestine is readiness support, and the role of independent integrity units. relatively small, fragile, and limited in terms of its offerings. The Palestinian economy • Providing a platform for sharing best practices and lessons between National experienced a slowdown in 2017, registering a growth rate of 3.1% compared to Designated Authorities, Accredited Entities and other stakeholders. 4.7% in 2016. This was mainly due to a deterioration in public and private spending in the second half of that year. Also in 2017, there was a noticeable improvement in 1.3.3 Access to finance tax revenue and a slight improvement in clearance revenue, but this was countered by drops in non-tax revenue, foreign grants, and aid. This led to a decline in public The State of Palestine is one of the world’s countries most vulnerable to climate revenue and grants of approximately 5%, compared to 2016. Revenue in 2017 change impact and natural disaster. It has a significant and immediate need for was NIS15.9 billion. Actual public spending dropped by about 1.1%, compared to investment in climate change mitigation and adaptation. The amount of climate the previous year, to NIS14.6 billion. Overall, there was a cash basis surplus in the finance approved and disbursed, to date, covers only a small portion of actual need. aggregate balance, after grants and aid, of NIS1.2 billion, which was equivalent to As an example, commitments under the Nationally Determined Contributions are 2.2% of the Gross Domestic Product. This compared to a surplus of NIS1.7 billion in conditional on receiving adequate means for implementation, including finance in 2016, an equivalent of 3.3% of Gross Domestic Product. Changes in the US dollar addition to technology development and transfer and capacity building. exchange rate increased government public debt by approximately 2.4% compared to the previous year. Debt registered at US$2.5 billion or 17.5% of nominal Gross Access to climate finance: It is important to identify climate funds in line with, and Domestic Product. derived from, commonly-used climate finance definitions. Three different categories are identified, and they are: General public revenue: Current public financial management and procurement • dedicated climate finance practices in the State of Palestine are a barrier to growth. Addressing financial management constraints has the potential to enhance private sector investment and • climate-specific finance, and job creation. Together, they can make business more open and, over time, support • climate-related finance. fiscal stability by making payments more certain. It can also improve service delivery The first category of funds is used for climate mitigation or adaptation activities. to the public, and by strengthening accountability, restore the trust of citizens and

34 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 35 development partners whose contributions are critical to the government’s budget. are presented in Annex 4.3. Also presented are projects where lessons learned could While the Palestinian government has undertaken efforts to improve public financial support Fund proposals. management since 2007, the outcomes have been uneven, as highlighted by the 2013 Public Expenditure and Financial Accountability assessment. Improvements were most significant in the areas of external scrutiny and audit. In other areas, Table 6. Gaps and opportunities for scaling up climate solutions in the State of Palestine progress was limited. Constraints at the level of the Ministry of Finance and Planning and within line ministries have hampered the implementation of new procedures in Barriers Gaps Opportunities Potential proposals Political barriers The Israeli occupation, in- International political Development of agricul- the expenditure execution area. Limitations in expenditure control have led to the cluding its control of borders, support for Palestinian ture land use, sustainable accumulation of arrears and adversely affected performance in key sectors such as the movement of goods statehood and solidarity land use, and forest man- and services, and natural with the international agement plans. health and municipal services. In the health sector alone, there were payment arrears resources, such as land and community. of US$100 million in 2016. Government oversight on resource use is also undermined water. Scaling-up of zero graz- Urgent need to scale up ing and cut and carry by challenges with the accountability of the public financial management system. Dependency on imported the development of re- systems, integrated with The audit of financial statements has been delayed for five years. Procurement reform goods and services, such as newable energy resourc- sustainable waste man- electricity and food. es, while reducing energy agement systems. is also delayed. While a new Public Procurement Law and regulation were enacted demand through Execut- in 2014, several provisions have not been implemented. The role of civil society in ing Entity efforts. Scaling up of renewable energy systems, such as monitoring the financial performance of the government also remains weak, and Urgent need to scale hybrid system, for com- there is no Legislative Council in operation to oversee and monitor budget and fiscal up the development of mercial, public, industrial, climate-resilient agricul- and domestic use. performance. ture to improve food and water security. Promotion of waste-to-en- There is a high, country-level fiduciary risk in the Palestinian system. This is mainly ergy solutions to improve energy security and due to deterioration in the financial reporting by the Palestinian Authority, and reduce greenhouse gas delays in issuing public sector financial statements. The risk of fraud and corruption emissions. is also high. Project-level and entity-level risks are considered to be substantial, and measures will be in place to reduce the risk. Policy barriers Limited resources and Use the Green Climate Water, tourism, and capacity to convert good Fund Readiness support communication policies policy into tangible and window to update poli- could be updated using pragmatic actions on the cies, according to priorities the Green Climate Fund 1.4 Gaps and opportunities ground. in the Climate Finance Readiness support window. Some existing policies need Roadmap. Based on the analysis above, it can be concluded that the State of Palestine is taking to be renewed or updated. National Adaptation Plan Monitoring and evaluation Proposals in this Green process in the State of proactive steps to address climate change. This is occurring through development of the development of Climate Fund Country Pro- Palestine. planning and budgeting at both national and sub-national levels. However, many climate policies remains a gramme offer an oppor- challenge. tunity to translate policies Disaster risk planning and barriers and gaps remain that need to be addressed. These include: policy, regulatory, Lack of alignment between into tangible actions with management project. institutional, technical, financial, business, social, and cultural barriers. These need implementation of devel- strong monitoring systems. opment programmes and addressing so that climate change adaptation plans can be transformed into tangible climate policies. solutions, pragmatic actions, investment, and inclusive business opportunities. Lack of policy that encourage the private sector to This will drive the State of Palestine to become a resilient, low-carbon economy, invest in renewable energy. community, and nation. Constrained financial resources, and limited coordination between government agencies and the private sector, creates additional challenges to mainstreaming climate change and aligning development aspirations with response strategies. The State of Palestine continues to face a multitude of barriers to scaling-up effective climate adaptation and mitigation solutions. This makes it difficult to achieve climate and development goals and to meet United Nations conventions and Paris Agreement obligations. The gaps and opportunities to scale up climate solutions in the State of Palestine are summarized in Table 6. Several key climate change projects that may be scaled up into full Green Climate Fund proposals

36 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 37 Regulatory barriers An uneven playing field for Sound monitoring and Improve the national land Technical barriers Limited understanding of Conduct training on how Strengthening the Capac- investors, which reduces evaluation strategy. use planning and policy the Theory of Change, or to design high quality con- ity of the Executing Entities investor confidence. environment. implementation of adaptive cept notes that include to effectively participate Create investor confi- management principles to strong exit strategies and in Green Climate Fund Lack of clear and transpar- dence. Develop wastewater man- bring long term, transforma- robust monitoring systems activities, such as build- ent energy standards, labels, agement standards and tional impacts and change that will last beyond the ing skills in how to design and accredited testing Create coherent and testing facilities. instead of relying on an life of the project. high-quality concept facilities. non-burdensome stan- input-based approach. notes and incorporating Lack of resources and ca- dards and labels for Upgrade the wastewater Weak understanding of how Civil society organizations the Theory of Change. pacity to enforce regulations appliances, with incentives management master plan. to design high quality and build internal capacity so and standards. for their use. competitive concept notes. that community members Civil society organizations Develop improved Lack of highly-qualified tech- can implement projects. need support from interna- Complement top-down wastewater management nical staff and staff with rele- tional experts. actions with bottom-up monitoring tools and reg- vant skills and experience. Identify new technologies An uneven playing field for business approaches. ulations. Limited understanding of the to enable work in remote business and civil society options for energy efficient areas. organizations. Develop land use plans, Develop and implement construction. Only the government is able map out customary land emission standards for Lack of training on energy to easily access technical boundaries, and develop vehicles. calculations software in sec- assistance. local strategic plans as tors where mitigation is likely There is limited local exper- part of decentralization Develop joint satellite to deliver the best option tise available. initiatives. communication prod- for a lower-carbon develop- ucts to reduce the cost ment pathway. and regulatory burdens Lack of training on monitor- of remote early warning ing of mitigation activities, systems. including the use of indicators to track progress and outcomes. Institutional bar- Significant institutional mem- Enhance the State of Limited understanding of the riers ory loss in the government Develop an online portal Palestine’s ability to seek options for energy efficient and civil society due to high system for engagement accreditation and direct construction. staff turnover and transfer, with stakeholders and the access to the Green Cli- Lack of resources to en- and promotion of staff. Green Climate Fund. mate Fund. hance infrastructure and Develop joint civil soci- technical capacity, includ- Use bottom-up project ety, private sector, and ing software and hardware design to foster meaning- government projects, such as high-performance ful engagement with civil including implementation computers. society and non-govern- agreements. Weak infrastructure and ment organizations. limited resources for agricultural research. For example, Strengthen public -private there is a shortage of labs, and civil society partner- equipment, and systems, ships to build trust. combined with a lack of Use national partners and trained researchers to cover stakeholders, such as Pal- the major fields of agricultur- Trade, as an entry point. al research.

38 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 39 Knowledge and Limited resources and Promote traditional knowl- Capturing and promote Financial barriers Insufficient access to Training for banks and Readiness support for im- information bar- capacity to collect, anal- edge. traditional knowledge for climate finance resources, Executing Entities to under- proved access to financial riers yse, manage, monitor, and Develop business and climate adaptation. with finance flows that do stand the risks and returns products and services, in- use reliable and accurate project management cur- not meet current or future when funding climate cluding: financial inclusion, baseline climate and project riculum at schools to boost Transform climate change needs. solutions. insurance, credit facilities, data to calculate and track business and manage- education, through gen- Ordinary Development and digital products. greenhouse gas emissions ment literacy. der-responsive training Assistance s being relabelled to make evidence-based Incentivize and empow- for teachers on climate as climate finance, but is investment decisions and er value chain actors to change and curriculum neither a new or additional identify solutions. protect and conserve their upscaling. source of funds. Limited use of traditional protective assets, such as Substantial off-budget cli- knowledge to promote and land, soil, forests, and bio- Digitise information on mate finance flows are not scale-up climate adaptive diversity, and to provide farm production man- being tracked by State of solutions. ecosystem services while agement to increase Palestine financial systems. Limited capacity to improve reducing pollution and long-term food security Donors often do not allow the quality of key sets of emissions. through: food production projects to include budget activity data for all sectors, Offer climate resilience and storage programmes, lines to pay the salaries including energy statistics. training at Palestinian post-disaster response proof new or additional staff Lack of a comprehensive universities. grammes; and resilience required to address new and readily-accessible programmes. climate change challenges digital data related to and issues. weather and climate ob- Use satellite communi- Lack of access to compet- servations that meet World cation to improve early itive financial products and Meteorological Organization warning systems and cli- services, such as start loans, standards. mate extension services. matching rebates, or partial A lack of quantitative and loan guarantees. spatially explicit data for use in making vulnerability assessments and identifying Business and mar- Limited business and entre- Leverage private sector adaptation options. This ket barriers preneurial skills to convert resources for investment Use Green Climate Fund limits future monitoring and development and climate in gender-responsive Readiness support to evaluation of the National challenges into inclusive adaptation and mitigation strengthen engagement Adaptation Plan. business opportunities. projects. through mapping and Stakeholders and institutions Small and scattered markets leveraging private sector with a role in implementing that limit economies of scale. Use inclusive value chain resources. or monitoring mitigation Low levels of business and and market-based ap- activities often do not un- management literacy and proaches so that value derstand what constitutes a limited climate entrepreneur- chain actors, including dis- good quality and efficient ial spirit. advantaged groups and data collection system, or Lack of incentives to protect small enterprises, can be how to adapt to new and and conserve the eco- trained, empowered, re- improved sources of data system, combined with a warded, and incentivised and apply good quality reliance on certain goods to protect and improve assurance practices. and services. their productive assets. Support the creation of ecosystem services in the local community that reduce pollution and carbon emissions.

40 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 41 Social barriers Perception of top-down Develop gender-respon- Identify traditional values model. Tenders could call for inclusive business plans to attract more viable and supply interventions that do sive and inclusive ad- related to the land, includ- cost-effective proposals with a strong business case. not meet the needs of the aptation and mitigation ing indigenous knowledge nation or communities. solutions through inclusive and cultural factors, to • Top-down supply versus the demand driven or bottom-up approach: There is Lack of inclusive partici- and participatory value inform the design of future great concern that some of the implemented projects were based on a top-down pation by civil society, the chain and market-based Green Climate Fund proj- private sector, and provin- approaches. ects that require new and approach and so the needs of the local community were not appropriately met. cial actors in the planning, innovative technologies. There is an urgent need to develop proposals that are demand driven so that the implementation, monitoring, Ensure value chain actors, and evaluation of interven- including disadvantaged needs of the local community are fully met through consultation and planning tions. groups and small enterpris- with the help of the local civil society partners. The Green Climate Fund Country Lack of local participation in es, are trained, empow- the design and innovation of ered, rewarded, and in- Programme provides a timely opportunity to ensure that future proposals allow solutions. centivized to protect and for the full participation of the local community and civil society partners. Rapid urbanization that improve their productive leads to unemployment and assets. • Leveraging private sector expertise: Although some rollout programmes succeeded, food insecurity. Generate ecosystem ser- sustainable after-sale service and maintenance to ensure long-term financial vices for the local commu- sustainability remains a key challenge. This is particularly relevant for public service nity that reduce pollution and carbon emissions. buildings like schools and hospitals. There is a need to develop viable business Ensure women, the elderly, models and normative documents, such as public private partnership policies, that and young people are not merely seen as project involve strong private sector participation, execution, and investment. Together beneficiaries, but that with civil society and end-user involvement, collateral damage can be avoided. they are fully engaged as trained and empowered This includes avoiding the danger of diverting scarce national budget funds to value chain actors who maintain facilities. The private sector has long-term implementation experience are critical to the success of a project. in remote and highly vulnerable locations, with a focus on efficiency and impact. Fit-for-purpose and demand driven solutions with no unintended, high-emission Meaningfully engage with • civil society stakeholders or maladaptive consequences: Grant-based methods could lead to perverse to ensure the voices of incentives and unforeseen outcomes such as oversized equipment and no focus the most vulnerable are included from the outset on energy efficiency. Simple measures and activities, including: the monitoring in programme design, of consumption and usage-patterns; realistic estimations of the energy demand, through to implementation and monitoring and based on number of users and equipment consumption; and energy efficiency evaluation. and saving actions, are required to minimize these risks. On the other hand, Cultural barriers Lack of understanding of Assess, record, and cat- including appropriate solutions such as solar water pumps could have significant cultural and traditional alogue traditional and practices, which hinders the cultural best practices that impact in addressing hygiene and health issues. Community interventions must uptake of interventions. could be used as climate be designed and agreed with the beneficiaries, and wholesale package solutions solutions. must be considered against local contexts. • Transparent selection of project beneficiaries: There is a need to select, in an open 1.4.1 Transformational success factors and transparent manner, the right beneficiary from Green Climate Fund projects. • There are lessons learnt and key success factors from the baseline projects that This could include a community, school, health centre, or hospital. The selection are relevant for designing future funding proposals. Key findings from stakeholder process should follow the National Advisory Board vulnerability assessment consultations are also important. The key success stories and lessons learnt are framework and go through the official Board project screening and appraisal listed below. processes. • The need to have a strong robust exit strategy: There is a danger that some solutions, • Considering the above will ensure that project designs factor in meaningful and especially technology options, are not working properly due to a lack of after-sales effective engagement with local communities to generate buy-in and project service and poor maintenance. This causes equipment to fall into disrepair. To avoid ownership. Projects should also partner with local community service and non- repeating similar mistakes, strong exit strategies must be developed. This means government organizations to improve local governance systems and demand for beneficiaries must be able to pay the cost to operate and maintain products and mutual accountability. The creation of economic opportunities for the population, services. This can be done through the Build Own, Operate and Transfer business especially for the most vulnerable, is crucial to ensure buy-in from the public and

42 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 43 sustainability in the long run. Project design should also take into consideration disabilities, local community organizations, businesses, and government institutions the absorptive and implementation capacity of local authorities and stakeholders. in the State of Palestine are facing the daily impacts of climate change. Through a • Capacity building: Training and capacity building in adaptation and mitigation rapidly changing environment, they have had to implement locally and demand- solutions and empowering value chain actors are key steps to ensure project driven actions, measures, and responses. These responses target the impacts and sustainability. Projects must dedicate enough means and embed long-term training enable communities to increase their resilience. While these groups are often capable to strengthen skills and capabilities. Lessons learned from the baseline projects of finding highly innovative and sustainable solutions to complex challenges, their could be adopted and scaled up as potential Green Climate Fund proposals. voices and experiences do not sufficiently inform national or global climate change • Community-based small and medium enterprises: Where feasible, community- decision-making. Thus, it is not surprising that climate finance decision-making and based small and medium enterprises should work on adaptation and mitigation funding often fails to acknowledge the most vulnerable groups. This means climate projects. This will encourage better use of project outputs and to create new and change programmes are not always inclusive and responsive to the actual needs and more resilient value chains. realities of those that are most likely to experience climate change impacts. Technical solutions that do not address financial and business barriers often fail to reach the • Communication and outreach activities: Successful adaptation and mitigation most vulnerable and remote communities, unless there are experienced partners solutions should be showcased through study tours, site visits, and peer-to- that can ensure a beneficial impact at the community level. peer exchanges. Communication and outreach should operate at all levels: local, national, regional, and international. Benefits of engaging civil society, non-government organizations and vulnerable • Meaningful engagement with community service and non-government groups at all stages of proposal development: The State of Palestine enjoys a vibrant organisations: Execution of Nationally Determined Contributions and National and inclusive civil society that has technical skills and experience across multiple Adaptation Plans requires a cross-sector and cross-stakeholder process. Community sectors and geographic regions. The civil society and non-government community service and non-government organizations can play an invaluable role in designing, is at the frontline of community development and service provision in some of the implementing, monitoring, and scaling up successful interventions. Projects that most remote and climate-affected parts of the country. engage with community service and non-government organizations from the In collaboration with the Green Climate Fund, local communities, relevant government outset, through meaningful and equitable engagement, are more successful than Ministries and Authorities, Departments, and the civil and non-government sector those that include them as an afterthought or insignificant partner. Community will play an increasingly pivotal role in scaling up community-based adaptation service and non-government organizations bring valuable expertise and must be approaches. Partnership between the Green Climate Fund, gender-focused a core component of any development and delivery process. There are essential organizations, private sector partners, local communities, and governments will help guiding principles which projects must demonstrate. re-imagine the ways that adaptation is undertaken at the local level. This will also • The solid integration of success factors, using evidence and supporting generate the potential for a paradigm shift and support country policy aspirations. documentation. • How the onerous and resource-heavy nature of accessing climate finance will Civil society and non-government organizations work to ensure that community needs, be managed and reduced. experiences, and capacities are considered. This is important for preparing for, reacting to, and recovering from disasters, and for adapting to long-term climate changes. • How gender and protection policies have been integrated. These organizations also ensure project sustainability by building partnerships and • Integrating Green Climate Fund and other climate finance institutions into the Mid- collaborating with women, youth, children, communities, civil society, local and Term and Annual Development Programme and recurrent budgetary system: It is national governments, and regional and international organizations. They also raise critical for projects to identify the entry points for integration into the Mid-Term community demands and turn them into proposals for development. The meaningful and Annual Development Programme under the national recurrent budgetary and inclusive engagement of civil society as project implementers will help ensure system for the systematic tracking, coding, and tagging of climate finance. Budget the availability of capable delivery partners who will provide the proper impact and tracking and alignment issues should be built into the design of each project. influence at the community level, especially in the most remote areas.

1.4.2 Demand driven and inclusive solutions by engaging with civil society sector Barriers to meaningful engagement with civil society and non-government organizations: Palestinian civil society and the non-government community consists Meaningful participation and engagement with civil society and non-government of a diverse range of partners. The community includes small groups through to organizations and vulnerable groups: Women, youth, children, men, people with large, international non-government organizations. Each agency plays a crucial role

44 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 45 in enhancing community resilience to climate change. However, no one agency can 7. Gender mainstreaming in climate change financing mechanisms. speak for the collective. Smaller agencies, based in remote areas, may have limited opportunities for meaningful engagement or to contribute to Green Climate Fund Suggestions and recommendations can be categorized into different levels of action. project design and implementation. It is essential that all project developers conduct • Institution level vigorous research on which organizations have relevant expertise or are actively • Accelerate the decision to form a skilled gender unit, including staff and a budget. working in the target locations of the proposed project. This will ensure their views Appoint practical, trained, and informed staff who understand the importance of and contributions are incorporated. Civil society and non-government organizations • gender mainstreaming in ministry tasks. are also, by definition, non-profit organizations with limited resources. Therefore, projects must ensure adequate resourcing for these organizations to effectively • Build capacity to form innovative and gender-sensitive ideas and projects. engage as implementing partners. • Conduct awareness and capacity-building campaigns on gender-sensitive planning and implementation. Mechanisms for engagement with civil society and non-government organizations: Identify the training needs of women and encourage their participation in training The State of Palestine needs to strengthen the mechanisms to engage with civil • courses to raise skills and give equal opportunity in promotions, installations, society and non-government organizations and women’s groups. Project proponents scholarships, and rewards. will need to consult widely at the country level to determine the right stakeholders for engagement. However, national-level engagement on project design, while • Annual or periodic level important, is not sufficient. Beneficiaries of programmes must also be engaged. • Conduct annual statistical surveys. Integrating gender equality and a gender-responsive approach to climate change • Conduct economic, social, diagnostic, and analytical studies to identify needs. planning and implementation will lead to better climate change outcomes. It will also improve progress in achieving sustainable development and poverty reduction • Planning level 62 goals. A focus on such integration is included in the Implementation Action plan for • Include the mainstreaming of gender in future strategic plans. This includes the agriculture and energy sectors and in the Climate Change Technology Roadmap medium-term, annual, and operating plans for Palestinian climate-related sectors. project. This will ensure the development of national capacity to integrate gender Plans should cover: objectives, policies, programmes, projects, and indicators. equality considerations into all national environmental and climate-related plans, including finance mechanisms. This will help ensure that women’s access to and • Implementation level control over natural resources such as water, energy, and land title is protected. It will • Include capacity building for staff to integrate gender into programmes, projects, also guarantee the participation of women in environmental dialogue and debate. beneficiary selection criteria, detailed work plans, and follow-up of project activities and indicators. The Gender Units embedded within each line ministry or authority will need to be fully capacitated and equipped with tools, as proposed by Aquila in 2009.63 Areas for • Evaluation level focus include: • Include final indicators of performance and achievement. 1. Gender and gender mainstreaming; • Women-oriented services promotion level 2. International law instruments as a framework for mainstreaming gender in climate • Facilitate the work of women in the climate-related sectors. This can occur through change; positive discrimination, creating opportunities, and developing mechanisms of intervention that serve the most marginalized groups and make women›s work 3. Overview of gender issues and climate change; tangible. 4. Gender mainstreaming in adaptation efforts; • Provide support for rural women in agriculture production and livestock, such 5. Gender-sensitive strategies for mitigation actions; as concessional lending. Establish agriculture extension centres in rural areas to develop women›s skills in agriculture. 6. Gender-sensitive strategies on technology development and transfer to support actions on mitigation and adaptation; and • Strengthen rural women›s access to: income; production resources; development programmes; training in new technologies; and, providing their own awareness

62 UNDP (2016). Gender Equality in National Climate Action: Planning for Gender-Responsive Nationally Determined Contributions. programmes 63 Aguilar, L (2009). Training Manual on Gender and Climate change, Global Gender and Climate Alliance.

46 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 47 1.4.3 Paradigm shift to leverage private sector resources weaning beneficiaries away from the ‘subsidy’ and ‘dependency’ mentality. Their full participation as value chain actors will be deemed as critical to the success of the Leveraging private sector expertise and resources: The National Policy Agenda and solutions. Such exit strategy will enable the climate solutions to be scaled up and the Nationally Determined Contributions both acknowledge the vital role of the replicated beyond the life of GCF project. private sector in contributing to national climate change adaptation and mitigation goals. Government policy aims to encourage participation of the private sector at all Private sector engagement: The private sector has yet to play a significant role in levels of planning, including: in governance and collaboration; integrating climate climate action in the State of Palestine. Local businesses could help communities and disaster considerations into business plans; and aligning private sector activities and organizations to: mitigate risk; increase resilience; and contribute to disaster to national targets as a means of wealth creation. response, rehabilitation, and reconstruction efforts. There is hesitation from many private sector entities to become involved in government initiatives, likely due to a Increasing involvement by local private sector entities in key climate relevant industries, lack of regular dialogue and engagement. Green Climate Fund resources could be such as banking, solar, agriculture, shipping, logistics, and telecommunications will used to develop strong public-private partnerships. be necessary to ensure robust and successful implementation of national policy goals. While there is already considerable private sector involvement in these sectors, Benefits of engaging with the private sector: there is a deficit of joint initiatives with government. Partnerships between public The private sector can contribute to climate change financing requirements. This and private sector actors, as well as between private sector companies, would result is important, as demand for climate finance outstrips the funding available from in the total sum benefits to all parties being greater than the sum of the parts. In governments. Further, failure to invest sufficiently in mitigation will see adaptation order to address these gaps, the Palestine Trade Centre, or PalTrade, is a potential costs increase. Private sector expertise and experience can improve the investments candidate as focal point for climate-private sector issues. PalTrade was established being made. With the right incentives, the private sector can contribute to the in 1998 as a non-profit, membership-based organization that aims to contribute achievement of mitigation and adaptation objectives. One example would be to the achievement of a viable Palestinian economy by developing and promoting autonomous climate proofing by private sector entities. The private sector can also Palestinian exports. develop and provide adaptation or mitigation products or services. This could include There is a need to leverage private sector expertise and resources to invest in gender climate information services and agriculture services. Agriculture examples include responsive adaptation and mitigation projects through inclusive value chain and development of: climate-resistant seed varieties; irrigation systems; insurance market-based approaches. This will allow value chain actors, including women, youth, models; water desalination or purification treatment products, wastewater reuse disadvantaged groups, and micro-, small- and medium-sized enterprises to be trained, systems; waste management and disposal services; and climate-resilient building empowered, rewarded, and incentivised to protect and improve their productive materials. assets. Such assets include land, soil, water, forests, and marine environments. The • Barriers to climate change investment faced by the private sector: Potential training would also help them generate eco services for the local community and challenges and barriers that the private sector may face include: ultimately reduce pollution and carbon emissions. • Significant up-front costs for green investments and a lack of access to competitive Fostering strong public-private partnerships: There is a need to forge strong public- finance. private partnerships. This will complement top-down, upstream policy and regulatory • Limited capacity, knowledge, and awareness about available technologies and de-risking solutions with downstream, bottom up financial and viable business market opportunities among key stakeholders and core actors in the investment approaches for scaling up climate adaptation and mitigation solutions to benefit value chain. the local community. This will help to build trust and confidence, and reduce the silo • Lack of proper local regulatory or policy frameworks, including uncertainty mentality that can exist in the public and private sectors. regarding tax regimes and the longevity of policy incentives. Access to competitive and inclusive value chain financial products and services: • Low investment returns on adaptation projects. Supporting value chain actors to access and utilise competitive financial products • Time limits on accessing funding. The private sector often requires rapid turn- and services efficiently and effectively as start-up loans, matching rebate. This around times on financing. will enable and empower value chain actors to adopt, purchase and innovate on • Investment risk is perceived as too high, with low levels of investor confidence. climate resilient and low carbon solutions. Value chain actors trained and certified Risks include: currency, operational, construction, policy, political and technology. in both technical and basic financial and business knowledge and skills will help in

48 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 49 Expectations of the private sector: To engage private sector entities, the returns must • Information provision and capacity-building: outweigh costs. Returns must be based on the investment criteria used by sector • Share case studies on success stories; 64 actors. Different private sector actors will have different expectations. • Conduct best-practice information campaigns tailored to the private sector, • Banks, institutional investors, and investment funds: commercial rates of return including the financial sector; on invested capital; the need for secure investments that reduce operational or • Promote climate technologies; financial risk; marketing opportunities; and the impact on image. • Develop study tours for potential private sector players to see climate-related • Large companies: commercial rates of return on invested capital; reduced projects in other countries. operational risk; attractive payback periods; legal compliance; marketing opportunities; and the impact on image . • Create an enabling regulatory and legislative environment. • Small to medium entrepreneurs: secure investments with guaranteed returns; financial or tax incentives; and legal compliance. • Private households: financial or tax incentives, and legal compliance. Mechanisms for private sector engagement: Various mechanisms can enhance private sector engagement. This includes creating markets with attractive risks and rewards; making available liquid assets; providing opportunities for scale; and ensuring transparency. • Financial instruments: • soft loans for upfront and ongoing project costs; • equity investments, such as public-private partnerships or seed capital, to build a capital base; • Allowing growth and access to additional finance; • the use of de-risking instruments to help manage risk, including policy risk insurance and government or donor-backed partial guarantees; and • aggregation instruments to increase the scale of investment opportunities and reduce transaction costs. • Support mechanisms through policy and overarching support: • grants and subsidies for climate-risk assessments or energy-efficiency audits; • feed-in tariffs; • tax breaks for low-carbon or climate-resilient technologies; • technical expertise; • removing fossil fuel subsidies; • correct market failures; • create a foundation for low-carbon investment; Project-level assistance can also help transition projects from conception to demonstration through to scaling up. These can include: technology accelerators, research and development grants, and accelerated or simplified permit procedures.

64 GIZ-Adelphi (2016). Private Sector Investment Criteria.

50 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 51 Section 2: A summary of the key institutions is provided in Table 6 along with their specific roles and responsibilities associated with the climate change agenda.

Table 6: Summary of roles and responsibilities of key institutions as proposed in the Capacity Development Country Agenda and Green Climate - Phase 1 report Institution Roles and responsibilities National Committee for Cli- • Identify national priorities relevant to climate change. Fund engagement mate Change • Oversee the development of national policies and strategies and advise the government on climate change action. 2.1 Institutional arrangements Environment Quality Author- • Lead the process of preparing national climate change policies, ity’s General Directorate for strategies, and plans. Climate Change • Acting National Focal Point for the Green Climate Fund while the Institutional and financial frameworks for accessing and using climate finance in Chair of the Environment Quality Authority is the National Designated Authority. the State of Palestine were presented in the 2019 National Designated Authority • National Focal Point for the United Nations Framework Convention on Operational Manual with Standard Operating Procedures. A multi-layered institutional Climate Change, IPCC and CTCN. • Coordinate climate change policy with government ministries and framework (Figure 3) was proposed in the section: Capacity Development – Phase 1. stakeholders. It shows the governance structure at the national, inter-ministerial, and unit levels. • Lead the process of preparing: National Communication Reports; greenhouse gas inventories; Biennial Update Reports; National These are also known as the policy, organizational, and operational levels respectively. Adaptation Plans; and Nationally Determined Contribution reports. • Serve as the Executive Secretariat of the National Committee for Entry points to access and use Green Climate Fund resources under the multi-layered Climate Change. governance structure are presented in Figure 3. This covers access by the National Ministry of Finance and Plan- • Ensure flow of financial resources to climate change projects. Designated Authority, International Accredited Entities, Direct Access Entities, and ning • Track donor financial support and assist with fundraising. • Fund support for certain institutions. Executive Entities. The recommended multi-layered institutional framework is an Individual ministries, authorities, • Assist with sector-based climate change policies and ensure that example of best fit. It is an excellent governance structure, under which value chain and departments climate change is mainstreamed. actors can fulfil their roles and responsibilities and access and use climate finance. • Collect data required for the development of sector-based greenhouse gas inventories. • Prepare project concept notes and implement adaptation and mitigation projects. • Monitor and report on projects. • Cooperate with other ministries on climate change action. • Provide support to representatives in the National Committee for Climate Change. • Coordinate with the Environment Quality Authority. • Serve as executing entities and work with National Designated Authority and IAE/DAE to access and use Green Climate Fund resources.

Based on consultation with key stakeholders and members of the National Committee for Climate Change, Figure 4 presents the institutional and financial framework for accessing and using climate funds to scale up climate adaptation and mitigation solutions to achieve climate goals set for the State of Palestine. In summary: • The National Designated Authority will be supported by a lean Green Climate Fund Advisory Task Force to be engaged through the GDoCC with sector experts selected from members of the National Committee for Climate Change. Its composition and mandate is finalized. • The Green Climate Fund Advisory Task Force will review and appraise concept notes and make recommendations to the National Designated Authority via the GDoCC as part of the No-Objection procedures using the Concept Note appraisal template presented in the NDA OP. • NDA will review the concept note and GCFATF’s recommendations and make final decision. Figure 3: Proposed multi-layered institutional framework on climate change for the State of Palestine

52 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 53 • NDA will appraise and approve prospective public, private and CSO entities 2.2 Roles and contributions of key stakeholders as accredited entity through the nomination procedures and fit for purpose accreditation approach in NDA OP. The key climate change stakeholders in the State of Palestine are presented in Table 7. • GCFATF members were trained on how to evaluate concept notes and funding proposals based on the CN appraisal template in NDA OP and the State of Palestine’s Table 7: Exemplary list of climate change stakeholders in the State of Palestine concept note appraisal template in the NDA OP. Group of insti- • Major areas of activity • Institutions (examples) tutions • Research and modelling • National Agricultural Research Centre – Ministry Government of Agriculture • Programme planning, • Environment Quality Authority implementation, monitoring and • Strategic Planning and Policy formulation Unit – evaluation of adaptation and Ministry of Finance and Planning mitigation strategies • GD of Planning & Policies - all Ministries • Immediate disaster response • High Council of Civil Protection Government • National Disaster Risk Management Centre / PMO • Palestinian Civil Defence • Palestinian Red Crescent Society • Climate data inventory • Palestinian Central Bureau of Statistics management and generation • Provision of basic utilities: waste • Governorates - 11 in the West Bank and 5 in the treatment, road rehabilitation Gaza Strip Local govern- • Emergency measures: re- and post- • Palestinian Civil Defence Centre - district level ment disaster relief and rehabilitation, food • Command and Coordination Centres - in security Governorates and Local Government Units • Directorates of all Ministries Civil society, • Socio-political motivation • The Palestinian Environmental NGOs Network think tanks, • Networking, promotion, and • Palestinian environmental non-government non-govern- awareness-raising organizations ment and • Advocacy, lobbying, and motivation • Education and cultural centres – 531 in the communi- • Training West Bank and 66 in the Gaza Strip65 ty-based • Accountability organizations Non-government organizations66 • Advocacy (227 organizations) • Development (291) • Animals (5) • Education (127) Figure 4: Institutional and financial framework to access and use bilateral and • Environment (24) • Faith-based (7) international climate finances • Finance (27) • Food (14) • Health (51) • People (239) • Relief (35) • Popular investigations • Newspaper (3 organizations) • Transparency and accountability • Satellite channels (31) Media • Awareness raising • Local television stations (30, all in West Bank) • Local radio stations (41 licensed) • Local news agencies (19)

65 http://info.wafa.ps/ar_page.aspx?id=8699 66 https://arab.org/ar/%D%8A%7D%84%9D%8AF%D%88%9D84%9/%D%81%9D%84%9D%8B%3D%8B%7D8%9A%D86%9/

54 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 55 • Corporate Social Responsibility • The Palestine Investment Fund Universities, research institutions, and • Al-Aqsa University activities • Palestine Trade Centre, PalTrade colleges – Gaza Strip • Al-Azhar University - Gaza Private sector • Capacity building • PADICO Holding • Al-Quds Open University and commer- • Awareness raising • Gaza University cial • Connection through trade • Islamic University of Gaza enterprises associations, such as Vegetable • Israa University Growers or Construction/Builders • Palestine Technical College associations • University College of Applied Sciences • University of Palestine Large commercial enterprises and • Al-Wataniah Towers - ABRAJ services (listed companies) • Palestine Telecommunications Company - Non-government research and gradu- • Applied Research Institute of Jerusalem PALTEL ate study institutions • Health, Development, Information and Policy • The Palestinian Distribution & Logistics Services Institute Company - WASSEL • Palestinian Academic Network • Palestine Electric Company - PEC • Palestinian Academic Society for the Study of • GlobalCom Telecommunications - GCOM International Affairs • Nablus Surgical Center Company - NSC • Palestinian Ministry of Education and Higher • Oooredoo Palestine - WATANIYA Education Companies registered with the Pales- • Banking (7 companies) tinian Exchange67 • Industry (13) Government: The government of the State of Palestine is responsible for the • Insurance (7) administration of climate change and disaster risk reduction activities throughout • Investments (9) • Services (12) the country. It established the National Climate Change Committee and legislated • Construction (1) it as the key decision-making and advisory body. The Committee was established in Competitive financial products and • Palestinian Monetary Authority April 2010 and is chaired by the Environment Quality Authority as the lead agency on services • Banks – 14 companies with 351 branches and Micro credit and bank loans offices68 climate change. The Council of Ministers has issued all bylaws and regulations. Through • Local commercial banks (4) Financial the Council of Ministers, the national government endorses policies and plans that • Local Islamic banks (3) institutions • Foreign commercial banks (7) implement national priorities. The government also engages at global and regional • Lending institutions – 5 companies with 81 levels, negotiating the implementation of multilateral agreements. It also enters into branches69 • Money changers agreements with international governments and donor partners on the provision of Activities related to DRR and CCA, • Local Authorities (416) assistance to Palestine’s climate change and disaster risk reduction efforts. before, during, and after disaster • Municipalities (141 in total: 116 in the West Bank Community situations and 25 in the Gaza Strip) Environment Quality Authority: The Environment Quality Authority is the government households • Village councils (275) • Command and Coordination Centres in Local body responsible for environmental protection in the State of Palestine. Its mission Government Units statement, which reflects Article 2 of the Palestinian Environmental Law No. 7/99, calls • National coordination Higher Council for Innovation and Excellence70 for the Authority to “safeguard and protect the environment, control and limit the Agencies • Capacity development degradation of natural resources, prevent further pollution, enhance environmental • Innovation awareness and ensure environmentally sustainable development”. The Authority is the Universities, research institutions, and • An-Najah National University colleges - West Bank • Arab American University leading body on climate change in the State of Palestine and it drives implementation • Bethlehem University of all programmes and projects. It currently hosts the Green Climate Fund National • Birzeit University • Dar Al-Kalima University College of Arts & Designated Authority and the GDoCC as the Secretariat. The Environment Quality Culture Authority›s corporate and business plans include strategies to drive implementation of • Edward Said National Conservatory of Music Academia • Hebron University the Green Climate Fund Country Programme. Only core climate change functions have • Ibrahimieh College been specified within identified roles and responsibilities of the designated Director • Khadori Polytechnique University • Palestine Ahliya University Generals and their departments. Moderate capacity exists to minimize likely duplication • Palestine Polytechnic University of work with other partners and stakeholders while implementing programmes and • Al-Quds University • International Academy of Art projects. Environment Quality Authority departments and agencies are working with a range of partners to implement climate change activities. These include: • GD of planning and policies, 67 https://english.mubasher.info/countries/ps/companies 68 http://www.pma.ps/Portals/1/Users/2/02/002/About20%PMA/Fact20%Sheet/Fact20%Sheet20%202019%en.pdf • GD of projects and international relations, 69 http://www.pma.ps/Portals/1/Users/2/02/002/About20%PMA/Fact20%Sheet/Fact20%Sheet20%202019%en.pdf 70 http://www.hcie.ps/#/media-room/news • GD of Environmental Protections,

56 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 57 • GD of awareness and Environmental Education, Through Water law, No 14 of 2014, the Authority›s powers were clarified to reduce • Other line Ministries, intersections with other national bodies. The current role of the Palestinian Water • Government agencies, Authority is to: • Provincial governments, • manage and develop water resources in the State of Palestine; • Local stakeholders, • increase the capacity and improve the quality of water resources; • Civil society organizations, and the • better conserve and protect water sources from pollution; • Private sector. • improve and upgrade water services through integrated and sustainable resource management; Ministry of Agriculture: The Ministry of Agriculture was established in 1994 by a decree • achieve justice in the distribution of water and sanitation services; from the President of the Palestinian Authority. It is the sector lead on climate change. • ensure good governance in the water sector; and A Climate Change Department was established within the Ministry in 2011. Through human resource management practices, the Ministry has the capacity to attract and • invest in institutional construction to achieve operational excellence. retain experts for climate change programming. Anecdotal evidence also suggests The Palestinian Water Authority leads climate change action in the water sector. ability within the Ministry to contribute to the preparation of a Technical Needs While there is a legal and regulatory framework for water policy and strategy Assessment and access the United Nations Framework Convention on Climate Change in the National Development Plan, it is not very specific with regard to climate technology mechanism. The Ministry of Agriculture has included mainstreaming change mainstreaming. However, there are initiatives within the Authority to better climate change in its sector strategy for 2017 to 2022, and is coordinating and advocate for climate change to be included in planning, budgets, and programming. implementing measures to enhance adaptation and mitigation in the sector. Systematic procedures for involving stakeholders, including communities, in forming Palestinian Energy and Natural Resources Authority: The Palestinian Energy and the organization’s strategy are also in place. The Water Authority also has the capacity Natural Resources Authority was established by Presidential Decree No. 8184 in to prepare technical funding proposals on climate change action, and to comply with December 1993. It is the lead authority on climate change in the energy sector. The the monitoring and evaluation requirements of bilateral and multilateral donors. Authority - as a leader of the energy sector - is now recognized as the focal body Further, Authority staff are involved in training and knowledge transfer on climate for renewable and efficient energy use in the State of Palestine. The Authority hosts change. The Palestinian Water Authority is also capable of tracking climate change- the Palestinian Energy and Environment Research Centre. It also develops policies related projects at the sector, regional, and national levels. The Authority can monitor and rules on energy sector development for the Council of Ministers to approve. The implementation and progress and analyse lessons learned, and then this back into Authority conducts studies and develops legislation on exploitation of renewable future planning and action. energy sources, and works with neighbouring countries to exchange electrical Ministry of Transport, including the Department of Meteorology: The Ministry of energy. It also issues safety instructions for power plants and electrical wiring works, Transport is sector lead on climate change in the transport sector. It is mandated to in coordination with other relevant authorities. According to the organizational organize the sector, ensure its safety, and that it is modern, environmentally friendly, structure of the Palestinian Energy and Natural Resources Authority, the Directorate and meets international standards. of Energy Sustainability and Climate Change handles climate change through its dedicated unit for Emissions Monitoring and Mitigation. This unit is responsible for A clear vision on how to address climate change risks at the national, local, and the evaluation and monitoring of both gas emissions and the environmental impacts district levels is evident in the work of the Palestinian Meteorological Department. of energy use. It also develops tools and guidance to reduce pollution and the impacts The Meteorological Department is part of the Ministry of Transport but plays a special of climate change. role in the context of climate change and related weather forecasting services. Palestinian Water Authority: The Palestinian Water Authority was established The Department is responsible for a network of meteorological stations that issue under Presidential Decree No 90 in 1995. The Authority was established to have: bulletins and weather forecasts. Department staff work 24 hours a day, 7 days a week, an independent legal personality; its own budget; to follow the President of the to measure meteorological elements and provide forecasts. These forecasts are used: Palestinian government; and to have a head appointed by the President of the State for safe air and marine navigation; to alert farmers; to issue warnings in special cases of Palestine. and emergencies; and to add to a climate data information bank. The information is also used in structural and economic planning, especially in agricultural development. The Meteorological Department also issues climate studies to limit the effects of natural disasters through warning bulletins.

58 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 59 Strengths of the Palestinian Meteorological Department include: Accredited Entity and then brought to an organization to execute insignificant • ordinary annual action plans are articulated with clear achievable goals, activities, components. Projects must be developed from the ground up, starting with project budgets, timelines, and responsibility for execution; beneficiaries and local communities, including civil society and national agencies. In this way, civil society organizations can use local knowledge and experience to • staff are well-trained and knowledgeable in their field of work; positively influence project design and bring the needs of the most vulnerable into • employees coordinate and share knowledge on climate change matters with Green Climate Fund programmes. Overall, civil society groups support the standard stakeholders and colleagues in other ministries; operating procedures in the new National Designated Authority Operational Manual. • climate change core functions are somewhat articulated within the identified roles This means all Green Climate Fund projects require intensive design discussions and responsibilities of staff, and for the focal point at the National Climate Change and consultation before being endorsed by the National Designated Authority and Committee. approval of a no-objection letter. Other national government agencies: They play a key role in developing and implementing Donors and development partners: Donors and development agencies are climate change policies, plans, and initiatives, leading activities within their portfolios, essential partners for government and other climate change stakeholders in the including: agriculture, energy, water, transportation, infrastructure, tourism, health, State of Palestine. This includes representatives of international governments and education, forestry, fisheries, and information technology, among others. the donor community, and global and regional organizations - including various UN agencies. Such organizations provide substantial resources to support and Local government: Governorates and municipal and village councils play a key role in supplement Palestinian resources. This funding should be aligned with Palestinian implementing climate change actions. They also engage with other players on climate priorities and policy directions, and be appropriate to the context. Programmes and change and disaster risk reduction activities. Governorates are increasingly integrating activities should be endorsed through national government processes. International climate change and disaster risk reduction into their work. Climate actions need to be governments should provide assistance to the Palestinian government for proactive implemented with the Governorates and local communities taking the lead. climate change and disaster risk reduction initiatives, as well as for urgent response Local communities: Palestinian communities are important stakeholders in climate and recovery efforts when needed. change and disaster risk reduction efforts. They have much to contribute through: Private sector: The private sector plays a vital role in the development of the State of existing capacity; governance; knowledge of the local context; traditional and Palestine. Opportunities exist for the private sector to partner with the Palestinian indigenous knowledge; and coping mechanisms. Local communities need to play a government, donors, and international development agencies to invest in projects key role in drawing on and strengthening their resilience. This will enable inclusive that address climate change. These opportunities include investment in renewable participation in decision-making and action, and will connect communities to other energy, energy efficiency, agriculture, water, forestry, fisheries, infrastructure, stakeholders to support realisation of their needs and aspirations. transportation, health, education, and tourism. The private sector should ensure its Civil society organizations: Civil society plays a key role in climate change efforts development applications and practices are in line with environmental standards, in the State of Palestine. Civil society organizations also collaborate through the climate-proofing principles, building codes, and other government regulations Palestinian Association of Non-governmental Organisations network. This includes for sustainability. Private sector products and services can assist the government various political parties, and women and youth-focused organizations. Civil to communicate with people across the country, including in remote areas, about society organizations partner with government and other players to develop and disaster preparedness and response and recovery efforts. implement climate change and disaster risk reduction programmes and activities. The International Accredited Entities operating in Palestine are summarized in Table Such organizations are members of the National Climate Change Committee, with 8. The Executing Entity could partner with these groups to access Green Climate Fund a role in advocating and influencing decision-making. These organizations also plan resources. and implement programmes and projects in cooperation with leading ministries. Civil society organizations need to: better align their activities with government policies and plans; ensure that information is shared; and obtain endorsements from appropriate government agencies before initiatives are undertaken. The Green Climate Fund Country Programme must foster a new approach for meaningful partnership between the government, the private sector, and civil society organizations. Projects under the Fund must not be designed by an external

60 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 61 Table 8: Relationships with existing International Accredited Entities, potential Accredited Entities and rele- United Nations Develop- building resilience of the most vulnerable Yes Yes vant public, private and civil society partners )ment Programme (UNDP livelihood resilience and adaptation ecosystem-based adaptation Entity/ Partner name Areas of focus Engagement in Efforts to forestry country strengthen en- adaptive watershed management gagement with renewable energies and climate smart Green Climate cities Fund low emission transport Agence Française de urban development - water and sanita- Yes Yes capacity building for adaptation and Développement tion, and public transport mitigation in development planning, energy efficiency budgeting, and implementation renewable energy climate finance readiness sustainability in the ready–made gar- United Nations Environment climate technology mapping Yes Yes - ments sector Programme environmental assessment . World Food Programme disaster risk reduction Yes Yes Food and Agriculture Or- food security Yes Yes resilience innovation ganization agriculture food security and nutrition fisheries social safety net forestry emergency response natural resources assessment and monitoring Bank of Palestine green loans Yes Potential to - land rehabilitation and land conserva- be a national tion accredited climate resilient communities entity bio-energy climate change adaptation Cairo Amman Bank green loans Yes Potential to - .climate change mitigation be a national accredited Deutsche Gesellschaft- energy efficiency and renewable ener- Yes Potential entity fürInt-ernationale Zusam- gies )menarbeit (GIZ rule of law, good governance, and Palestinian Investment Fund Renewable Energy Yes Potential to - human rights Executing Entity be a national climate change adaptation in urban industry accredited areas entity International Fund for Agri- food security Yes Yes - cultural Development small-holder farmers income generation agricultural capacity resilience of local farmers International Finance private Sector engagement Yes Potential Corporation and the World Bank International Union for Con- human and economic development Yes, limited Potential servation of Nature nature conservation protected area management ecosystem-based adaptation vulnerability assessments and research capacity development Japanese International Co- support to the waste management Yes Potential )operation Agency (JICA sector through technical assistance and investment Kreditanstaltfür Wiederauf- climate change adaptation in urban Yes Potential )bau (KfW areas energy efficiency and renewable energies

62 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 63 2.3 State of Palestine Green Climate Fund Pipeline Principles • Proposals were prioritised. High priority proposals, with a score of more than 60 were identified for implementation between 2019 and 2023. Medium priority The development of a country programme has followed an open, fair, transparent, projects will begin in 2024 and low priority projects in 2027. and inclusive approach. It has allowed all key stakeholder groups, outlined above, to • The National Designated Authority endorsed the final Green Climate Fund State of actively engage with the National Designated Authority in developing project ideas Palestine Country Programme. and concept notes, before submitting them for inclusion into the proposal pipeline (see Section 2.4). The selected pipelines were based on the steps and consultations Table 9: Project proposals submitted to the Green Climate Fund International Accredited Entity listed below, as illustrated in Figure 5. Submission Project title Description (IAE), Executing Entity (EE), and timeframe • The National Designated Authority launched the plan to approach the Green Partner agencies The main strategic focus of the IAE: Agence Française de Climate Fund in April 2017. 1. Water Palestinian National Adaptation Plan Développement (AFD) Banking and • From May 2017, the Authority received and screened concept notes and project is about reducing water and food Adaptation Concept Note insecurity, which is well aligned with EE: Palestinian Water Authority ideas from national and international implementing partners. of Agriculture submitted on the Palestinian Nationally Determined to Climate 25 November Contributions. According to the Partners: Palestinian Water • The State of Palestine submitted two funding proposals to the Green Climate Change in 2017. Adaptation Plan, many sectors in Authority, Palestinian Hydrology Northern Fund, but neither has been approved. Agence Française de Développement and the Gaza Strip are considered to be Group, private sector Gaza71 the International Fund for Agricultural Development submitted the proposals (see particularly vulnerable to the negative consequences of climate change Fund level Table 10 for details). and its effects on decreasing water Status strategic resources. Already under significant Total financing US$44.5 million • Giving priority to adaptation and mitigation measures began with the development impacts pressure from rapid demographic of the Initial National Communication Report, followed by the National Adaptation growth, economic development, and restrictions on water mobilization Plan and the Nationally Determined Contributions. investments, freshwater resources in • Two on-going projects that prioritize adaptation and mitigation measures are: the State of Palestine are predicted to become even scarcer. Climate change causes decreases in annual • CTCN’s Technology Roadmap, under the readiness support programme of the Latest precipitation and one of the impacts Other: response Green Climate Fund; and of rising temperatures is the increase in Green Climate $13 million to Green water demand from crops. The project Fund: (AFD) • The Nationally Determined Contributions Implementation Action Plan for the Cross cutting – Climate will develop an integrated and low- $8 million 1,4,5,6,8 Fund queries agriculture and energy sectors. emission water management scheme $23.5 million (Ireland, as a submitted on capable of reducing the impact grant) • In October 2018, the first consultation and prioritization workshops were held. of increasing aridity due to climate 16 April 2019. This led to identification of 79 potential pipeline actions extracted from the change, while depolluting a strategic aquifer for the population of Gaza. The Nationally Determined Contributions, Initial National Communication Report, and project will be implemented by the the National Adaptation Plan. Participants were trained on the use of multi-criteria Palestinian Water Authority. Duration: analysis to prioritize concept notes. 2019 to 2023 Action Lead Timeline • The National Designated Authority Operational Manual was developed in Concept Note Agence Française de Développement Submitted: November 2017 November 2018, including standard operating procedures for appraising concept development notes, and guides for developing high quality concept notes and proposals. Full proposal Agence Française de Développement Submitted: July 2018 • In February and March of 2019, the National Designated Authority launched the development Green Climate Fund Country Programme. • Bilateral and group consultation meetings were held in February and March of 2019 with about 50 public, private sector, and civil society partners, including International Accredited Entities. • A second prioritisation workshop was held in Feb 2019 with about 50 public stakeholders. This led to creation of a pipeline of adaptation and mitigation proposals. Five Green Climate Fund Readiness proposals were added, and these are presented in Annex 4.1. 71 https://www.greenclimate.fund/documents/18030/893456/20182_-_Water_Banking_and_Adaptation_of_Agriculture_to_Climate_Change_in_ Northern_Gaza.pdf/d6e45a49-7928-59e829-4d-b42e26bbcac6

64 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 65 International Accredited Entity 2.4 Prioritizing the State of Palestine Green Climate Fund pipeline Submission Project title Description (IAE), Executing Entity (EE), timeframe and Partner agencies Throughout the National Designated Authority-led Country Programme development Rationale: Increase in temperatures IAE: International Fund for process, a range of ideas were elicited by various means from October 2017. Many and more erratic rainfalls observed over Agricultural Development the last decades in the West Bank are (IFAD) ideas derived from sector submissions to the Authority, while others were developed impacting rural livelihoods and these Concept by Accredited Entities or presented through GDoCC’s ongoing policy and planning trends are projected to be aggravated EE: Ministry of Agriculture Note 2. Resilient Land and in future climate change scenarios. This and Food and Agriculture submitted process. Each of the ideas was appraised in detail in February 2019 using a multi- Resources Man- is adding to the vulnerability of rural vil- Organization as the on 27 agement Project criteria analysis approach, based on project screening criteria aligned with the Green lages and the agricultural sector, under implementing partner October (RELAP)72 pressure from restricted access to water 2017 Climate Fund’s six investment criteria, detailed in Table 10. and agricultural land. Only around 20% Partners: Palestinian Water of groundwater resources are available Authority, Applied Research to the Palestinian population in the West Institute of Jerusalem, AUWAC, Table 10: Green Climate Fund Investment Criteria Bank, making them among the most private sector Outcome Criteria water stressed in the world. Land devel- Fund level strategic opment for smallholder farmers shifting Total financing $47.7 million Status 1. Impact potential 1. Size of beneficiary group(s) and mitigation potential (greenhouse gas saving/ impacts to resilient land uses and incorporating avoidance) rainwater harvesting, use-efficiency, and 2. Paradigm shift 2. Sustainability (policy, institutional, technical, financial, business, social) increasing soil water storage capacity, is therefore crucial to increase the 3. Institutional absorptive capacity adaptation capacities and resilience of smallholders in the West Bank. 4. Scalability and replicability Under Objective: To increase climate resil- Other: appraisal 5. Innovation ience, land productivity, agricultural Green $22.7 million 5,6 by the production and marketing opportunities Climate Fund: (IFAD and 6. Monitoring and evaluation Green for smallholders and landless rural poor. $25 million State of Climate 3. Country own- 7. National and sectoral policy alignment Implementation approach: The project Palestine Fund ership will be executed by the Ministry of Agri- 8. National and sectoral regulatory compliance culture, with national NGOs and FAO as implementing partners and with Environ- 9. Synergies with other initiatives ment Quality Authority as members of the steering committee. 10. Political risks Action Lead Timeline 11. Potential environmental risks Concept Note de- International Fund for Agricultural Devel- 4. Sustainable De- 12. Sustainable Development Goal (environmental, economic, social, co-benefits) Submitted: October 2017 velopment opment velopment Goal Full proposal devel- International Fund for Agricultural Devel- 5.Needs of the 13. Social and cultural acceptability Submitted: February .2018 recipients opment opment 14. Types of beneficiary (vulnerable, youth, big agribusiness vs. smallholders) 15. Gender responsiveness 6. Cost efficiency 16. Upfront investment cost of the technologies and effectiveness 17. Implementing, operational and maintenance cost 18. Ease of implementation

For each of the criteria, a concept note could receive a score of between one and five; one being the lowest and five the highest. A weighting of between 0.1 and 1.0 was also allocated to each criteria, depending on its importance. A weighting of 0.1 was given to less important criteria, and a weighting of 1.0 to the most important. The combined results of these scoring and weighting processes provided a shortlist of the most important concept notes. Those with a score above 60 were then considered in a final review and prioritisation process.

72 https://www.greenclimate.fund/documents/17890/893456/20182_-_Resilient_Land_and_Resources_Management_Project__RELAP_.pdf/f7879d1a- d7d4-6c7a-9010-cf63df849fd4

66 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 67 The draft concept notes were then developed into a project pipeline action plan, as 2.5 Country portfolio presented in Annexes 4.1 and 4.2. It was important that selected projects: • Did not duplicate on-going or planned projects; Prioritized proposals are shown in Annexes 4.1 and 4.2. They were ranked and • Were well-aligned with national development and climate priorities; prioritized during a February 2019 workshop with 50 public, private and civil society stakeholders. The National Designated Authority endorsed the proposal list, which • Reflected national priorities, with a balance between adaptation and mitigation was then approved by the National Climate Change Committee. A summary of the solutions; required support and the volume of available grants is detailed below (Table 11). • Represented of a wide range of financial instruments and Green Climate Fund supports; Table 11: Summary of proposals based on Annex 4.2 • Were transparent, inclusive, and covered a wide range of key sectors and partners; Type of support needed Total Green Climate Fund grants available (US$) • Were of high quality, competitive, fundable, transformative, and included a strong Funding proposals (excluding SAP) $1.35 billion exit strategy; and SAP Funding Proposals (2 proposals) $20 million • Demand-driven and a reflection of real needs. Project Preparation Facility (2) $3 million The prioritised projects and programmes are presented in Section 2.5. Readiness (4) - excluding adaptation planning $1.2 million Readiness (1) - adaptation planning $1.5 million Total $1.37 billion

2.6 Priority proposals for submission to the Green Climate Fund from 2020 to 2024

Table 12, below, shows the proposals that have been prioritized for submission to the Green Climate Fund for 2020 to 2024. Stakeholders prioritized projects through an MCA exercise, and the Nationally Determined Contributions Action Plan and CTCN’s Technology Roadmap were used to set the final list of priorities. The State of Palestine will work closely with partners to mobilize funds to develop concept notes and full funding proposals for the Green Climate Fund. These will be developed based on the timeline proposed in Table 12. There are seven priority proposals, which include three adaptation and four mitigation components. The proposals cut across the energy, agriculture, water, wastewater and land-use sectors. The total value of the Green Climate Fund projects is US$1.4 billion. Co-funding amounts will be determined at the project design stage. Mitigation proposals: The mitigation proposals comprise a total Green Climate Fund request of US$1.3 million, with co-funding to be determined at the project design stage. The four mitigation proposals seek to reduce local and national greenhouse gas emissions and pollution. The aim is to meet the Nationally Determined Contribution goals and the Paris Agreements, by transferring the Palestinian economy to a low- carbon development path. This will occur through: upgrading grid systems; scaling Figure 5: Prioritization process up the use of clean and low-carbon renewable energy; improved waste treatment; and reducing energy consumption through application of energy efficient solutions in the commercial, industrial and domestic sectors. The anticipated reductions in greenhouse gas emissions from each proposal will be determined at the project design stage. As will project viability. As presented in Table 12, these proposals will be

68 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 69 implemented in phases and some of the requests for budget funds may fall outside 2. MEPg1 Scaling up energy The objectives of the preogramme IAE: UNDP FP sumission the 2020 to 2024 timeline. efficiency programme for the will be achieved through the 4 IE: PENRA in 2021 commercial, industrial, public outputs: Adaptation proposals: The gender-responsive adaptation proposals are valued at and domestic sectors and the i) Enforcement and implementa- enforcement of green building tion of the building codes; US$164 million. They seek to enhance the resilience and adaptive capacity of the codes to reduce GHG emis- ii) Development of Standard and most vulnerable communities. This includes supporting farmers to scale up climate- sions and energy consumption Label with testing labs for lighting, cooling, heating, pumps with resilient agribusiness. The aim is to support them to produce safe foods for domestic Fund level strategic impacts matching rebate incentives; Total financing Status (US$ m) and export markets, through improved access to reliable water supply and better iii) Develop financial and business 3 models; and GCF Other (US$): land-use planning. The exact number of beneficiaries will be determined at the iv) Capacity development pro- (US$): project design stage. gramme 100 M (Grant)

Table 12: Top proposals for submission to GCF from 2020 to 2024 Action Lead Timeline Project Title Description AE, IE, Partner Submission CN development UNDP 2020 timeframe FP development UNDP 2021 1. AAPg1. Scaling up of climate The objectives of this programme IAE:FAO FP submis- Project Title Description AE, IE, Partner Submission smart agriculture best practic- will be achieved through the IE:MOA sion in 2020 timeframe es, innovation and businesses following 5 outputs: Partners: Agriculture to enhance food security, AAPj1. Promote crop diversification Workers Cooperative, 3. MEPg2: Scaling up RE pro- The programme objectives will be IAE: AFD Submit FP in nutrition and the resilience of and alternative systems (traditional Farmers Association, gramme for the commercial, achieved through: IE: PENRA 2022 vulnerable farmers. adaptive knowledge, crop land Women groups. industrial and domestic sectors ii) Solar PV 100 MW - to co-finance races, agro-biodiversity) to improve to enhance energy security existing proposal (US$ 100 M); agriculture value chain and and to reduce GHG emissions iii) Concentrated solar power and marketing wind (US$ 250 M); AAPj2. Promote conservation iv) Solar water heater programme agriculture best practices (zero (US$ 50 M); and and minimum tillage system) and MEPg3: Enhancing energy security businesses by assessing and upgrading the AAPj3. Scaling up sustainable grid system and upgrading of pow- community-managed irrigation er generation technology schemes, resilient infrastructure and This programme seeks to enhance businesses to improve food and Fund level strategic impacts energy security by assessing and Total financing Status water security and resilience of upgrading the outdated grid (US$ m) vulnerable communities 3 system and enhance the efficien- GCF Other (US$): AAPj4. Enhance the availability cy of the old power generation (US$): and marketing of nutritious and technology. 400 M affordable animal feed (including (Grant) plant and organic residues, Action Lead Timeline Fund level strategic impacts drought/heat and salinity varieties) Total financing Status to enhance the resilience of (US$ M) CN AFD 2021 vulnerable livestock farmers AAPj5. Scaling up climate resilient FP AFD 2022 5, 6 aquaponic system to improve GCF Other (US$): resilience and food security (US$): Project Title Description AE, IE, Partner Submission 40 M timeframe (Grant) Action Lead Timeline CN FAO 2019 FP FAO 2020 Project Title Description AE, IE, Partner Submission timeframe

70 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 71 4. MSWPg1. Promotion of Sus- Baseline data: Treatment cost of IAE: JICA Submit FP in 6.AAPg2. Development of Enhance access to productive IAE: UNDP Submit FP in tainable Waste Management 1,000 t municipal solid waste is US$ IE: MOLG 2023 agriculture land use planning, agricultural land and water IE: MOA 2025 programme to reduce GHG 150 M. Palestine has 4,000 t MSW/yr sustainable land and forest through a range of investments emissions and local pollution (2,700t in WB + 1,300t Gaza) x 150 management system (e.g. in land development, rangeland M = US$ 600 M. The programme landscape and soil restoration, development, soil improvements objectives will be achieved afforestation and rangeland and rain water harvesting facilities, through the 3 outputs: management which will be undertaken in close - MSWPj1. Promotion of sustainable partnership with beneficiaries, mu- waste management system for municipalities and villages. It will also nicipalities (4Rs – collection, sorting, aim to strengthen small farmers’ reduce, reuse, recycling, recovery, and livestock keeper’s resilience to composting) current and anticipated impacts of - MSWPj2. Promotion of small scale climate variability and change, by Fund level strategic impacts biodigester system for methane Total financing Status financing capacity development, utilization (US$ m) and by testing and monitoring ad- - MSWPj3. Promotion of sustainable aptation benefits and cost-effec- leacheate management system at GCF Other (US$): tiveness of land development ap- sanitary landfills (US$): proaches and practices applicable 600 M for the conditions of Palestine. (Grant) Fund level strategic impacts Total financing Status Action Lead Timeline (US$) CN JICA 2022 4, 8 GCF (US$): 24 M as Other: (US$) Grant FP JICA 2023 Action Lead Timeline Project Title Description AE, IE, Partner Submission timeframe CN UNDP 2024 5.AWPg1. Addressing cli- IAE: UNDP Submit FP in FP UNDP 2025 mate-related water scarcity by The programme seeks to balance IE: PWA 2024 enhancing the supply (recy- the supply of water with efficient Project Title Description AE, IE, Partner Submission cled wastewater, desalination, demand through through 4 out- timeframe rain and stormwater harvest- puts: 7. MEPg3: Enhancing ener- This programme seeks to enhance IAE:AFD Submit FP in ing, solar hydromass) and - AWPj1. Improving water supply gy security by assessing and energy security by assessing and IE: PENRA 2025 efficient demand (metering, and wastewater system (e.g. col- upgrading the grid system and upgrading the outdated grid sys- leakage prevention, aware- lection and treatment) upgrading of power genera- tems and enhance the efficiency ness) of conventional and - AWPj2. Enhancing water security tion technology of the old power generation with non-conventional water. through the promotion of desalina- modern and low carbon technol- tion plant (e.g. solar) ogy. - AWPj3. Promote solar water and wastewater pumping and distribution Fund level strategic impacts Total financing - AWPj4. Enhancing water use efficiency (e.g. prevent leakages, 1 GCF (US$): Other: (US$) metering, awareness raising) 150 M as grant Fund level strategic impacts Total financing Status Action Lead Timeline (US$ 80m) CN AFD 2024 5, 6 GCF (US$): Other (US$): FP AFD 2025 100M (Grant) Action Lead Timeline CN UNDP 2023 FP UNDP 2024 Project Title Description AE, IE, Partner Submission timeframe

72 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 73 Section 3: to actively engage in climate change actions and to gain direct access to the GCF resources. Thus, this process can be considered as being a valuable exercise to mainstream climate change, increase awareness and, ultimately, support a Monitoring and evaluation of Country paradigm shift towards considering potential climate change impacts or arising Programme implementation opportunities in the operation and planning process of the involved entities. The State of Palestine’s Country Programme is a living document that establishes clear and country-owned priorities for the Green Climate Fund. It includes a pipeline of Section 4: projects that the State of Palestine would like to develop. It also identifies practical steps and guidance for accredited entities to design and implement priorities, including an action plan on how projects and programmes are to be developed, the type of entity Annexes to partner with, and the readiness and project preparation support needed. Two readiness projects have been implemented in the State of Palestine: the National Designated Authority Readiness and Preparatory Support activity, and the Climate The National Designated Authority will continue to source for funding, through the Change Technology Road Map. The table below outlines the range of activities Green Climate Fund and bilateral supports, and to develop baselines and updates for implemented. the Country Programme in 2022. Thus, this first version of the Country Programme is supposed to provide strategic guidance for upcoming project proposals to the Green Green Climate Fund Readiness Activities Climate Fund in future years, with an update in 2026 to coincide with the national development planning and budgetary cycle. This will allow adjustment of the Country • Strategic frameworks, country programmes, and pipeline development

Programme in response to: • Prioritization process started in October 2017 with 79 measures on adaptation and 10 measures on mitigation. These were extracted from the Initial National Communication Report and the National Adaptation • changes in economic circumstances; Plan. They were used to develop the Palestinian priorities for the Green Climate Fund Country Programme. • new information on adaptation and mitigation needs, priorities, and targets; and • On-going stakeholder engagement in pipeline project development. • new information on changing viability or the cost of various adaptation and mitigation measures and options. 1. National stakeholder engagement processes a) Workshops and consultations • The long-term revision cycle of the Country Programme will be determined in 2020, with the nature of the document to remain flexible. • Green Climate Fund Public Forum, October 2017.

The State of Palestine’s Country Programme will be monitored and evaluated using • Green Climate Fund Readiness Programme Workshops, August and November 2018. a results logical framework with SMART performance indicators. Baseline data and • Green Climate Fund Readiness Workshop on Standard Operating Procedures for the Project Appraisal the results framework will be compiled at a later stage by the National Designated Process, November 2018. Authority, and will include the overall goal, outcomes, and outputs. A review on • Green Climate Fund Readiness workshops on how to design high quality concept notes and financial plans, effectiveness, performance, and accuracy will be conducted in 2026 to provide the August and November 2018. Authority and stakeholders with relevant information on insights into its functionality as a guiding document and if it reflects the country’s needs. The Palestinian National • Inception workshops to launch Green Climate Fund Country Programme development programme, Febru- ary and March 2019. Designated Authority will be responsible for updating the Country Programme, using external support if required. • Bilateral meeting with the public, private, and non-government sector partners, March 2019.

Revision of the Country Programme in 2026, following an evaluation of its b). Engagement channels and awareness materials effectiveness, will build on the positive and inclusive preparation process used to • National Designated Authority Operational Manual with Standard Operating Procedures, June 2019. develop this first version. The process attracted a range of actors through the survey to submit simplified concept notes (based on the GCF concept note template) to • Green Climate Fund Handbook, 2018. https://www.greenclimate.fund/documents/20182/296788/GCF_Handbook__Decisions__Policies_and_Frame- the NDA for consideration to be prioritized and included into the project proposal works__updated_December_2018_.pdf/25fd22ec-4f81-44ee-b5d1-20bceb2c9264 development pipeline. This high level of resonance and sensitization of the involved parties reflected the high level of interest and ability of local stakeholders

74 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 75 Annex4.1: Prioritized Pipeline A73 to be implemented between 2019 and 2023

4. Funding 10. Window 6. Current Name Please status 8. Public of Ac- 1. Funding Re- 9. Co-Fi- choose Please or credited quest – Title. For 3. 5. Additional project/programme infor- nancing 11. Expected proposal submission date 2. Result Areas [1] [2] one choose 7. Requested GCF Funding private Entity or Description refer Theme mation (US$ M) [4] option option from sector? Read- to Table XY below [5] from drop-down [1] iness drop- menu. [1] Delivery down Partner menu Liveli- Pro- Eco- Infra- Has it Build- hoods ject›s sys- struc- gone Energy ings, Health, of comple- Forests tems ture Does it through Has it gener- cities, food peo- mentar- Trans- and and and support a na- been in- ation indus- and ple ity and Total port land eco- built an tional cluded and tries water and coher- Financial Funding GCF [Mit- use system envi- existing stake- in the access and securi- com- ence Instru- Amount Funding 2019 2020 2021 2022 2023 iga- [Mit- ser- ron- national holder national [Mit- appli- ty [Ad- mu- to other ment (US$ M) Amount tion] iga- vices ment strategy consul- budget iga- ances apta- nities climate (US$ M) (%) tion] [Ad- [Ad- (Yes/ tation (Yes/ tion] [Miti- tion] [Ad- funds (%) apta- apta- No)? [1] process No)? [1] (%) gation] (%) apta- (GEF, AF tion] tion] (Yes/ (%) tion] or CIF). (%) (%) No)? [1] (%) [3] Funding Proposals and Project Preparation Facility (PPF)

AAPg1. Scaling Grant: up of climate smart agriculture Project best practices, Prepa- Cross innovation and ration Concept Cutting FAO, businesses to 20% 50% 10% 10% 10% Facility YES YES NO IFAD note to be $40.0 $40.0 PUBLIC X - Agri- GIZ enhance food (PPF for developed culture security, nutrition USD 1.5 and the resilience M) of vulnerable farmers. Loan:

Guaran- tee:

Equity:

73 Score more than 60 points.

76 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 77 Grant:

AAPg2. Develop- ment of agriculture land use Loan: planning, sustainable land and Cross forest manage- Concept FAO, Cutting ment system (e.g. 20% 30% 20% 30% YES YES NO None note to be $24 $24.0 PUBLIC UNDP, X - Agri- landscape and developed GIZ culture soil restoration, afforestation and Guaran- rangeland man- tee: agement)

Equity:

78 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 79 Grant:

AAPg3. Devel- opment of low emission (RE, EE Loan: and Sustainable Waste Manage- NAMA ment) and green Low agricultural value Adap- carbon FAO, chain to enhance tation olive 30% 40% 30% YES YES NO $30 $30.0 PUBLIC UNDP, X food security and - Agri- value Guaran- GIZ nutrition (e.g. ag- culture chain tee: gregation centres, (USD 15 agro-processing, M) cold storage and marketing centres)

Equity:

Grant:

AAPg4. Develop- ment of agricultural disaster risk Loan: reduction and management Adap- SAP CN to FAO, (DRR/M) and early tation 40% 30% 30% SAP YES YES NO None be devel- $10 $10.0 PUBLIC UNDP, X warning system - Agri- oped GIZ to enhance the culture resilience of vulnerable farmers, communities and Guaran- infrastructure tee:

Equity:

Sub-total $104

80 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 81 AWPg1. Address- Grant: ing climate-related water scarcity Loan: by enhancing the Guaran- supply (recycled tee: wastewater, desalination, rain Adap- and stormwater tation harvesting, solar Concept KfW, - Water hydromass) and 10% 40% 30% 20% YES YES NO None note to be $100 $100.0 PUBLIC UNDP, X supply efficient demand developed AFD and de- (metering, leak- mand age prevention, Equity: awareness) of conventional and non-conventional water.

Sub-total $100 MEPg1. Scaling up Grant: energy efficiency programme for Loan: the commercial, Guaran- industrial, public Miti- tee: and domestic UNDP, gation Concept sectors and the JICA, 100% - Energy … YES YES NO UNDP note to be $100 $100.0 PUBLIC X X enforcement of AFD, Efficien- developed green building WB, EIB cy codes to reduce Equity: GHG emissions and energy consumption

MEPg2: Scaling up Grant: RE programme for the commercial, Loan: Project industrial and Miti- UNDP, Prepa- Guaran- domestic sectors gation JICA, 100% ration YES YES NO AFD tee: $400 $400.0 PUBLIC X X to enhance en- - Energy AFD, Facility ergy security and Supply WB, EIB (PPF) to reduce GHG Equity: emissions

82 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 83 Grant:

MEPg3: Enhancing energy security Loan: by assessing and Project Miti- UNDP, upgrading the Prepa- gation JICA, grid system and 100% ration YES YES NO AFD $150 $150.0 PUBLIC X X - Energy AFD, upgrading of Facility Supply WB, EIB power generation (PPF) Guaran- technology tee:

Equity:

Sub-total $650

Grant:

MTPg1. Promote Loan: Miti- sustainable trans- Concept UNDP, gation port programme 100% YES YES NO None note to be $100 $100.0 PUBLIC AFD, X X - Trans- to reduce GHG developed WB port emissions Guaran- tee:

Equity:

Sub-total $100

Grant: MSWPg1. Promo- tion of Sustainable Waste Manage- Miti- ment programme gation Loan: Concept UNDP, to reduce GHG - Waste 100% YES YES NO None note to be $150 $150.0 PUBLIC AFD, X X emissions and and developed WB local pollution waste- Guaran- water tee:

Equity:

Sub-total $150

84 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 85 Grant:

MIPj1. Greening up the stone and marble value Loan: chain through Mitiga- integrated energy tion - SAP CN to UNDP, (RE) and sustain- 100% Industry YES YES NO None be devel- $10 $10.0 PUBLIC UNIDO, X X able waste man- and oped UNCTAD agement system Trade to reduce GHG emissions and Guaran- local pollution tee:

Equity:

Sub-total $10

APWPg1: Scaling up of climate Grant: resilient public infrastructure Project programme (e.g. Adap- Prepa- roads, bridges, tation Loan: JICA, ration Concept sewers, green - Public WB, 50% 10% 10% 10% Facility YES YES NO note to be $100.0 $100.0 PUBLIC X X building/hous- infra- UNDP, (PPF for developed es and road struc- Guaran- UNOPS USD 1.5 retaining walls) ture tee: M) to reduce the impact of climate change Equity:

Sub-total $100.0

Grant: AHPg1: Scaling up of the sustainable clinical waste Project management Loan: Adap- Prepa- programme to FAO, 20% 50% 10% 10% 10% tation - ration YES YES NO IFAD $40 $40.0 PUBLIC X X reduce GHG GIZ Health Facility emission and local Guaran- (PPF) pollution tee:

Equity:

Sub-total $40

86 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 87 Grant:

ATHSPj1. Identify, design and implement climate resilient archaeologi- Loan: Adap- cal programme to tation - Concept protect vulnerable UNDP, 100% Cultural … YES YES NO None note to be $50 $50.0 PUBLIC X X cultural heritage UNEP Heri- developed and archaeolog- tage ical sites to the Guaran- impact of climate tee: change

Equity:

Sub-total $50

Grant:

ACMPj1. Develop- ment of climate resilient coastal Loan: infrastructure Adap- and defences to tation - SAP CN to improve fisheries UNDP, 100% Coastal … YES YES NO None be devel- $50 $50.0 PUBLIC X habitats and the IUCN and oped resilience and marine livelihoods of Guaran- vulnerable coastal tee: communities

Equity:

Sub-total $50

88 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 89 Grant:

ATEPj1. Develop- ment of national network of Loan: protected areas in West Bank and Adap- Gaza Strip, includ- tation - Concept UNDP, ing 50 protected 100% Cultural … YES YES NO None note to be $15 $15.0 PUBLIC X IUCN areas and 54 bio- Heri- developed diversity hotspots tage (e.g. Wadi Gaza Guaran- and Wadi Al-Quff, tee: etc)

Equity:

Sub-total $15 Grand Grand total: $1,369.0 Total Readiness Pro- posals

Grant:

ARPj1. GCF Readi- Read- ness Upgrading of iness sustainable land- Loan: (exclud- use and geo-spa- ing for UNDP, tial planning for (choose) $0.30 $0.30 $0 X adap- FAO sustainable and tation climate resilient Guaran- plan- development and tee: ning) investment

Equity:

90 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 91 Grant:

Readi- Loan: ARPj2 NAP ness (for SUPPORT GCF adap- Support for Imple- (choose) $1.5 $1.50 $0 FAO X tation mentation of the plan- NAP - Agriculture ning) Guaran- tee:

Equity:

Grant:

Read- iness CCRPj1. GCF Loan: (exclud- UNIDO, Readiness propos- ing for UNC- al for Enhancing (choose) $0.30 $0.30 $300,000 X adap- TAD, the engagement tation UNDP of private sector Guaran- plan- tee: ning)

Equity:

Grant:

Read- iness Loan: CCRPj2. En- (exclud- hancing gender ing for UN- (choose) $0.30 $0.30 $300,000 X mainstreaming for adap- WOMEN climate action tation Guaran- plan- tee: ning)

Equity:

92 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 93 Grant:

Read- Loan: iness CCRPj3. Readiness (exclud- proposal Digital ing for UNDP, (choose) $0.30 $0.30 $0 X institutionalization adap- GIZ of the NDA tation plan- Guaran- ning) tee:

Equity:

Summa-

5. GCF 6. Co-fi- Type of Financ- nancing Support ing Need ($US) Need ($US M) [5] Funding Proposal $1,349.00 $0 (excluding SAP) 2 x SAP Funding $20.00 $0 Proposals 2 x Project Preparation $3.00 $0 Facility (PPF) 4 x Read- iness (excluding for $1.20 $0 adaptation planning) 1 x Read- iness (for $1.50 $0 adaptation planning)

Grand $1,374.70 $0 Total

94 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 95 Proposal description: Support Palestinian farmers in taking well informed, timely and effective action to protect their crops and animals from pests, diseases, extreme weather and climatic AAPg1. Scaling up of climate smart agriculture best practices, innovation and conditions. To strengthen the capacities in transforming development and climate businesses to enhance food security, nutrition and the resilience of vulnerable risk into tangible actions through its anticipation, adoption of new practices through farmers. access to knowledge, and transformation of livelihood strategies supported by facilitating public services and private sector. The objectives of the programme will be achieved through the following five outputs: • AAPj1. Promote crop diversification and alternative systems (traditional adaptive AWPg1. Addressing climate-related water scarcity by enhancing the supply (recycled knowledge, crop land races, agro-biodiversity) to improve agriculture value chain wastewater, desalination, rain and stormwater harvesting, solar hydromass) and and marketing efficient demand (metering, leakage prevention, awareness) of conventional and non-conventional water. • AAPj2. Promote conservation agriculture best practices (zero and minimum tillage system) and businesses The programme seeks to balance the supply of water with efficient demand through: • AAPj3. Scaling up sustainable community-managed irrigation schemes, resilient • AWPj1. Improving water supply and wastewater system (e.g. collection and infrastructure and businesses to improve food and water security and resilience of treatment) vulnerable communities • AWPj2. Enhancing water security through the promotion of desalination plant • AAPj4. Enhance the availability and marketing of nutritious and affordable animal (e.g. solar) feed (including plant and organic residues, drought/heat and salinity varieties) to • AWPj3. Promote solar water and wastewater pumping and distribution enhance the resilience of vulnerable livestock farmers • AWPj4. Enhancing water use efficiency (e.g. prevent leakages, metering, awareness • AAPj5. Scaling up climate resilient aquaponic system to improve resilience and raising) food security • MEPg1. Scaling up energy efficiency programme for the commercial, industrial, • AAPg2. Development of agriculture land use planning, sustainable land and public and domestic sectors and the enforcement of green building codes to forest management system (e.g. landscape and soil restoration, afforestation and reduce GHG emissions and energy consumption rangeland management) The objectives of the programme will be achieved through the 4 outputs: Enhance access to productive agricultural land and water through a range of investments in land development, rangeland development, soil improvements i) Enforcement and implementation of the building codes; and rain water harvesting facilities, which will be undertaken in close partnership ii) Standard and Label with testing labs for lighting, cooling, heating, pumps; with beneficiaries, municipalities and villages. It will also aim to strengthen small iii) Develop financial and business models; and farmers’ and livestock keeper’s resilience to current and anticipated impacts of climate variability and change, by financing capacity development, and by testing iv) Capacity development programme and monitoring adaptation benefits and cost-effectiveness of land development MEPg2: Scaling up RE programme for the commercial, industrial and domestic sectors approaches and practices applicable for the conditions of Palestine to enhance energy security and to reduce GHG emission • AAPg3. Development of low emission (RE, EE and Sustainable Waste Management) and green agricultural value chain to enhance food security and nutrition (e.g. The programme objectives will be achieved through: aggregation centres, agro-processing, cold storage and marketing centres) ii) Solar PV 100 MW - to co-finance existing proposal (US$ 100 M); This programme seeks to reduce post-harvest losses (reduce methane emissions) iii) Concentrated solar power and wind (US$ 250 M); by developing aggregation hubs and spokes supported with climate smart agro- iv) Solar water heater programme (US$ 50 M); and processing and cold storage facilities (RE, EE and sustainable waste management) to MEPg3: Enhancing energy security by assessing and upgrading the grid system and produce certified and safe foods. upgrading of power generation technology • APg4. Development of agricultural disaster risk reduction and management (DRR/M) and early warning system to enhance the resilience of vulnerable farmers, This programme seeks to enhance energy security by assessing and upgrading communities and infrastructure the outdated grid system and enhance the efficiency of the old power generation technology.

96 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 97 MTPg1. Promote sustainable transport programme to reduce GHG emissions prevent major diseases related to climate, water, sanitation, and food hygiene The objectives of the programme will be achieved through the 3 outputs: ATHSPj1. Identify, design and implement climate resilient archaeological programme to protect vulnerable cultural heritage and archaeological sites to the impact of MTPj1. Scale up sustainable public transport system (e.g. modal shift and park and climate change ride scheme) This programme seeks to identify, design and develop a climate resilient archaeological MTPj2. Enforcement of the vehicle emission standard and upgrade of the existing programme to protect vulnerable cultural heritage and archaeological sites to the vehicle fleet (e.g. low emission vehicles, electric vehicles, incl. fuel efficiency) impact of climate change e.g. flood prevention, avoidance of high temperature and MTPj3. Promote climate resilient roads with efficient and interactive lighting and humidity. vehicle priority lanes • ACMPj1. Development of climate resilient coastal infrastructure and defences to improve fisheries habitats and the resilience and livelihoods of vulnerable coastal MSWPg1. Promotion of Sustainable Waste Management programme to reduce communities GHG emissions and local pollution This project seeks to develop climate resilient coastal infrastructure and defences to Baseline data: Treatment cost of 1,000 t municipal solid waste is US$ 150 M. Palestine protect the 40 km vulnerable coastline in the Gaza Strip to improve fisheries habitats has 4,000 t MSW/yr (2,700t in WB + 1,300t Gaza) x 150 M = US$ 600 M. The programme and the resilience and livelihoods of vulnerable coastal communities. objectives will be achieved through the 3 outputs: • ATEPj1. Development of national network of protected areas in West Bank and MSWPj1. Promotion of sustainable waste management system for municipalities (4Rs Gaza Strip, including 50 protected areas and 54 biodiversity hotspots (e.g. Wadi – collection, sorting, reduce, reuse, recycling, recovery, composting) Gaza and Wadi Al-Quff, etc) MSWPj2. Promotion of small scale biodigester system for methane utilization This project seeks to develop a national network of protected areas in West Bank and Gaza Strip, including 50 protected areas and 54 biodiversity hotspots (e.g. Wadi Gaza MSWPj3. Promotion of sustainable leachate management system at sanitary landfills and Wadi Al-Quff, etc). MIPj1. Greening up the stone and marble value chain through integrated energy (RE) and sustainable waste management system to reduce GHG emissions and local pollution Traditional stone processing relies on inefficient and polluting technology with no propose waste treatment. The SAP project seeks to green up the value chain through their use of RE and EE technology supported with sustainable waste management. APWPg1: Scaling up of climate resilient public infrastructure programme (e.g. roads, bridges, sewers, green building/houses and road retaining walls) to reduce the impact of climate change This programme seeks to climate proof the basic infrastructure that are vulnerable to the impact of climate change. AHPg1: Scaling up of the sustainable clinical waste management programme to reduce GHG emission and local pollution SCW best practices and businesses will be scaled up through: i) enforcing clinical waste bye-laws; ii) new waste treatment e.g. autoclaving, microwaving, incineration of medical wastes; and iii) Enhancing the capacity of health professionals and vulnerable community especially women, in climate related water-scarce areas on measures to monitor and

98 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 99 Annex 4.2: Prioritized Pipeline B74 to be implemented between 2024 to 2030

Adaptation Mitigation Pipeline B for Po- Proposal Indicative tential adaptation Prepara- Private ID no Sector GCF Grant Public CSO and mitigation tion Facility sector (US$) 1. Livelihoods 7. Building cit- proposals (US$) 2. Health, food 3. Infrastruc- 4. Ecosystems 5. Energy gen- of people ies, industries 8. Forest and and water ture and built and ecosys- eration and 6. Transport and commu- and appli- Land use security environment tem services access nities ances

Scaling up zero grazing and cut and carry system integrated AAPj6. Agriculture 5,000,000 1 1 1 1 1 with sustainable waste management system (biodigester)

Enhancing energy Energy Sup- MEPg1. supply and security to 100,000,000 1 1 1 1 ply reduce GHG emissions

Enhancing power generation and the Energy Sup- MEPj4. 50,000,000 1 1 1 1 1 efficiency of power sta- ply tions (e.g. gas turbine)

Development of sus- MTPj1. tainable transportation Transport 50,000,000 1 1 1 1 1 planning in cities

Enhancing the capacity of health professionals and vulnerable community especially women, in AHPj1. water-scarce areas on Health 5,000,000 1 1 1 1 measures to monitor and prevent major diseases related to climate, water, sanitation, and food hygiene

Utilization of recycled and local materials Urban devel- MIUDPj1. 10,000,000 1 1 1 1 1 (e.g. quarry stones and opment marbles waste)

Total 220,000,000

74 Scores less than 40 points

100 Climate Resilient Transformation with the Green Climate Fund Climate Resilient Transformation with the Green Climate Fund 101

Environment Quality Authority

The Role of Technology Road Map in Leveraging Access to the Green Climate Fund

Foreword

Table of contents

Contents 1. Introduction to the GCF ...... 6 1.1. Overview of the GCF ...... 6 1.2. Impact areas ...... 7 1.3. Financial instruments ...... 8 1.4. Accessing the GCF ...... 9 1.5. Proposal development and approval process ...... 10 2. Leveraging the technology roadmap to access GCF financing ...... 11 2.1. Understanding country needs in the context of the climate rationale and paradigm shift ...... 12 2.2. Leveraging the roadmap to identify country needs and potential solutions ...... 13 2.3. Investment criteria ...... 16 2.4. Financial instruments and structures ...... 17 3. Identifying the relevant partners in the Palestinian context ...... 20 3.1. Accredited entities ...... 21 3.2. Pointers to identifying the right Accredited Entities ...... 23 3.3. Other stakeholders (NDA, executing entity and co-financing sources) ...... 24

Acronyms

ADB Asian Development Bank AE Accredited Entity AFAWA Affirmative Finance Action for Women in Africa AFD Agence Francaise de Development CN Concept Note DAE Direct Access Entity EE Energy Efficiency EEs Executing Entities EQA Environment Quality Authority FAO Food and Agriculture Organization F/S Feasibility Study GCF Green Climate Fund GHG Greenhouse Gas GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit IFAD International Fund for Agricultural Development KfW Kreditanstalt für Wiederaufbau LDC Least Developed Countries MMDE Ministry of Mahaweli Development and Environment of Sri Lanka MUFG Mitsubishi UFJ Financial Group NDA National Designated Authority PSF Private Sector Facility SDG Sustainable Development Goals SIDS Small Island Developing States SME Small and Medium Enterprises UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFCCC United Nations Framework Convention on Climate Change WBG World Bank Group WFP World Food Programme

1. Introduction to the GCF

1.1. Overview of the GCF The Green Climate Fund (GCF), serving as an operating entity of the United Nations Framework Convention on Climate Change (UNFCCC) Financial Mechanism, is a new global fund created to support the efforts of developing countries to respond to the challenge of climate change. GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change impacts. It seeks to promote a paradigm shift to low-emission and climate- resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts. It was set up by the 194 countries who are parties to the UNFCCC in 2010, as part of the Convention’s financial mechanism (as of 2019, the UNFCCC has 197 parties, including Palestine). It aims to deliver equal amounts of funding to mitigation and adaptation, while being guided by the Convention’s principles and provisions. When the Paris Agreement was reached in 2015, the Green Climate Fund was given an important role in serving the agreement and supporting the goal of keeping global temperature change below 2 degrees Celsius. As of November 2019, GCF approved 124 projects with a total value of USD 20.6 billion, which sizes vary between less than USD 10 million and more than USD 250 million. Details of the current portfolio by project size is provided below.

The Fund pays particular attention to the needs of societies that are highly vulnerable to the effects of climate change, in particular Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States. GCF aims to catalyze a flow of climate finance to invest in low-emission and climate-resilient development, driving a paradigm shift in the global response to climate change. 1.2. Impact areas GCF’s investments are aimed at achieving maximum impact in the developing world, supporting paradigm shifts in both mitigation and adaptation. The Fund aims for a 50:50 balance between mitigation and adaptation investments over time.

Source: Adapted from https://www.greenclimate.fund/how-we-work/tools/infographics

1.3. Financial instruments GCF aims to use public investment to stimulate private finance. To achieve maximum impact, GCF seeks to catalyze funds, multiplying the effect of its initial financing by opening markets to new investments. GCF is unique in its ability to engage directly with both the public and private sectors in transformational climate-sensitive investments. GCF engages directly with the private sector through its Private Sector Facility (PSF, see box below). As part of its financing framework, it has the capacity to bear significant climate-related risk, allowing it to leverage and crowd in additional financing.

It offers a wide range of financial products including grants, concessional loans, equity, and guarantees. This enables it to match

project needs and adapt to specific investment contexts, including using its funding to overcome market barriers for private finance.

Private Sector Facility (PSF) and the role of the private sector in climate finance Private sector participation and investments is crucial in order to combat climate change. The role of the private sector is fundamental in the mobilization of climate finance, as well as in the transformation of global investment habits.

In order to scale up GCF’s activities and support this challenge, GCF has set up the Private Sector Facility (PSF) to fund and mobilize private sector actors, including institutional investors, and leverage GCF’s funds to encourage corporates to co-invest with the Fund. The PSF can be accessed through Accredited Entities (more information on accessing the GCF through AEs in section 1.4).

For more information on PSF, visit: https://www.greenclimate.fund/what-we-do/private-sector-facility 1.4. Accessing the GCF The Green Climate Fund works through a wide range of Accredited Entities to channel its resources to projects and programmes. Such entities have different characteristics. They can be private or public, non-governmental, sub-national, national, regional or international, as long as they meet the standards of the Fund. Accredited Entities carry out a range of activities that usually include the development of funding proposals and the management and monitoring of projects and programmes. Countries may access GCF resources through multiple entities simultaneously.

GCF recognizes the need to ensure that developing country partners exercise ownership of climate change funding and integrate it within their own national action plans. Developing countries appoint a National Designated Authority (NDA) that acts as the interface between their government and GCF, and must approve all GCF project activities within the country. This country-driven approach ensures GCF’s activities operate in harmony with national priorities.

The National Designated Authority in Palestine In Palestine, the National Designated Authority is the Environment Quality Authority (EQA). For further information, contact: [email protected]

1.5. Proposal development and approval process GCF does not implement project directly, but though Accredited Entities, which are at the center of the proposal development cycle and of the discussions with the Fund. Private sector organizations may get involved during proposal development. Most often, the private sector may bring project ideas and initiate the project development process to the NDA and Accredited Entities. Project developers and technology providers may therefore be directly involved in the design of the project and provide inputs on what would be needed to further encourage low-carbon technologies to take-off. Financial institutions may also be involved at an early stage and at initiation, by identifying new markets or needs for their customers which require the development of innovative financial instruments.

2. Leveraging the technology roadmap to access GCF financing

This chapter will focus on how the private sector can access GCF financing and how to leverage the technology roadmap developed as part of the GCF readiness support programme for Palestine to develop concepts for GCF financing.

The Technology Roadmap “The Technology Roadmap for the Implementation of Climate Action Plans in Palestine offers solutions to remove barriers and risks for the implementation of prioritized technologies in Palestine across sectors.”

For further information, contact: [email protected]

This chapter will therefore emphasize on the important points to consider when initiating a GCF project, while also providing more information on how to leverage the technology roadmap. The main points developed in the chapter are summarized in the figure below.

2.1. Understanding country needs in the context of the climate rationale and paradigm shift The first step in initiating a project with GCF is to understand climate challenges and to make sure that GCF financing is crucial to the project implementation and success. It is also important to emphasize that the solutions and technologies proposed as part of the concept / project are sustainable and will provide transformational change to the country.

An example of how GCF approved projects / programs address these is provided below. Enhancing climate resilience of the water sector in Bahrain

2.2. Leveraging the roadmap to identify country needs and potential solutions Most of the elements required to populate a concept note are available within the technology roadmap. Additionally, the technology roadmap has a number of additional reports which content can be leveraged to develop projects, project concepts and project proposals.

The technology roadmap can also be leveraged to develop concept notes, such as detailed in the following pages.

Concept note template The concept note template is available on the GCF homepage: https://www.greenclimate.fund/gcf101/funding-projects/project-funding 2.3. Investment criteria Concept notes and funding proposals need to be developed based on a set of investment criteria, detailed below.

The evaluation of a concept against each criterion is done while taking into account specifics related to the country and region, as well as the challenges experienced by the country and sector targeted by the project.

2.4. Financial instruments and structures The GCF provides financing depending on the objectives of the projects as well as its contents. GCF will seek the right level of concessionality, so as not to displace investments that would otherwise have occurred, including for private sector investment, and will avoid crowding out commercial financing. It is therefore important to use the relevant instruments during the design of the project. The GCF provides grants, loans, equity, guarantees and result-based payments.

3. Identifying the relevant partners in the Palestinian context

Identifying partners is a crucial step for the development of a project under GCF financing. The first step is to identify the Accredited Entity which may be interested in the project. Other relevant stakeholders including Executing Entities (EEs) and Co-financing institutions.

3.1. Accredited Entities The Green Climate Fund works through a wide range of Accredited Entities to channel its resources to projects and programmes. Such entities have different characteristics. They can be private or public, non-governmental, sub-national, national, regional or international, as long as they meet the standards of the Fund. Accredited Entities carry out a range of activities that usually include the development of funding proposals and the management and monitoring of projects and programmes. There are three types of Accredited Entities under the accreditation framework of the GCF: 1. International access: United Nations agencies, multilateral development banks, international financial institutions and regional institutions, which have global reach 2. Direct access entities (National): subnational and national implementing entities, nominated by countries. They can implement projects in the country of nomination only. 3. Direct access entities (Regional): regional implementing entities, nominated by countries. They can implement projects in the country of nomination only. The table below details the Accredited Entities to the GCF as of October 2019.

There are currently no direct access entities in Palestine. This means that for projects to be implemented in Palestine, stakeholders have currently to rely on International Access Entities. Some of the Accredited Entities with which Palestine can partner and which are currently active in the country include the following:

Accredited Entity Area of focus Engagement in Palestine Agence Francaise de Development ▪ Urban development Yes (AFD) ▪ Water sanitation ▪ Public transport ▪ Energy efficiency ▪ Renewable energy ▪ Blue Economy Food and Agriculture Organization ▪ Resilient agriculture Yes (FAO) ▪ Climate smart agriculture ▪ Food Security Deutsche Gesellschaft für ▪ Energy efficiency Yes Internationale Zusammenarbeit ▪ Renewable energy (GIZ) ▪ Climate change adaptation International Fund for Agricultural ▪ Food security Yes Development (IFAD) ▪ Resilient agriculture World Bank Group (WBG) ▪ Private sector development Yes ▪ Urban development ▪ Energy Kreditanstalt für Wiederaufbau ▪ Energy efficiency Yes (KfW) ▪ Renewable energy ▪ Climate change adaptation United Nations Development ▪ Resilient livelihoods Yes Programme (UNDP) ▪ Climate change adaptation ▪ Energy efficiency ▪ Water management United Nations Environment ▪ Climate change adaptation Yes Programme (UNEP) World Food Programme (WFP) ▪ Resilient agriculture Yes ▪ Food Security

The above list remains illustrative and further guidance, available below, is required in order to identify the most relevant Accredited Entity, especially in the context of a project aiming at engaging the private sector.

3.2. Pointers to identifying the right Accredited Entities As developed in the previous section, the selection of a relevant AE for project development and implementation is crucial for project design. Stakeholders may consider a number of criteria in order to identify the most relevant AE, such as the country of focus, the sectors of focus and the accreditation details (risk category, allowed project size and fiduciary standards). A detailed analysis of the relationship between the project contents and the selection of an AE is available in the figure below.

The information required is available publicly on the GCF website.1

1 https://www.greenclimate.fund/how-we-work/tools/entity-directory 3.3. Other stakeholders (NDA, executing entity and co-financing sources) Other stakeholders may also be relevant for the project proponents. For example, it is important to approach the NDA, and to identify the executing entity for the activities of the project.

The National Designated Authority in Palestine In Palestine, the NDA is the Environment Quality Authority. It is the focal point for the GCF and makes sure that projects submitted to the GCF are consistent with the country’s objectives and country programme submitted to the GCF.

For further information, contact: [email protected]

Approach to identifying Executing Entities (EEs)

▪ Selecting an EE requires close coordination with the Accredited Entity (AEs), as some AEs may prefer become the EE for their own projects. ▪ When this is not the case, public agencies may also become EE for a specific project. This is more often the case for public sector projects.

▪ In other cases, private sector organizations, NGOs and CSOs may also become EEs. Concrete examples are provided below. o Atcama Solar S.A., a private sector EE for FP017: Climate Action and Solar Energy

Development Programme in the Tarapacá Region in Chile o Tata Cleantech Capital Limited, a private sector EE for FP081: Line of Credit for Solar rooftop segment for Commercial, Industrial and Residential Housing sectors

Approach co-financing ▪ One of the guiding principles of the Fund is leveraging of other financing, including public and private financing, seeking to maximize leverage in the case of private financing. This means that co-financing is an important criteria for the review of projects under the GCF. ▪ In a number of projects, AEs provide co-financing themselves, often in the form of loans or equity, and grants when they have the capacity. ▪ In projects targeting the private sector, co-financing may be leveraged from private

developers, funds, sponsors and local financial institutions.

For more details, kindly refer to: “The Operational Manual for the National Designated Authority of State of Palestine to Green Climate Fund”.