Mainstreaming Biodiversity Conservation into Russia’s Energy Sector Policies and Operations Russian Federation GEF Agency: United Nations Development Programme Executing Partner: Federal Ministry of Natural Resources and Environment GEF Biodiversity Focal Area GEF Project ID: 3909 UNDP PIMS: 4241; UNDP Atlas Project ID: 00077026 Mid‐term Evaluation Report September 1, 2015 Mainstreaming Biodiversity Conservation into Russia’s Energy Sector Policies and Operations UNDP Mid‐term Evaluation Josh Brann, International Consultant, [email protected] Table of Contents I. Executive Summary .................................................................................................................................................... 5 II. Russia BD‐Energy Mainstreaming Project Mid‐term Evaluation Approach ............................................................. 13 A. Evaluation Purpose, Objective, and Key Elements ......................................................................................... 13 B. Evaluation Approach and Data Collection Methods ....................................................................................... 15 C. Limitations to the Evaluation .......................................................................................................................... 15 III. Project Overview .................................................................................................................................................... 16 A. Russia BD‐Energy Mainstreaming Project Development Context .................................................................. 16 i. Biodiversity Context .................................................................................................................................... 16 ii. Energy Sector Context ................................................................................................................................ 16 B. Problems the Project Seeks to Address .......................................................................................................... 18 C. Project Description and Strategy .................................................................................................................... 18 D. Implementation Approach and Key Stakeholders .......................................................................................... 20 i. Implementation Arrangements ................................................................................................................... 20 ii. Key Stakeholders ........................................................................................................................................ 23 E. Key Milestone Dates ....................................................................................................................................... 23 IV. Relevance ............................................................................................................................................................... 26 A. Relevance of the Project Objective ................................................................................................................. 26 i. Relevance to National and Local Policies and Strategic Priorities ............................................................... 26 ii. Relevance to UNDP Country Priorities ....................................................................................................... 27 iii. Relevance to GEF Strategic Objectives ...................................................................................................... 27 iv. Relevance to Multilateral Environmental Agreements ............................................................................. 28 B. Relevance of the Project Approach: Project Strategy and Design .................................................................. 29 V. Project Management and Cost‐effectiveness (Efficiency) ....................................................................................... 29 A. Implementing Agency (UNDP) Oversight ........................................................................................................ 30 B. Execution, Including Country Ownership ........................................................................................................ 30 i. Project Management ................................................................................................................................... 30 ii. Country Ownership..................................................................................................................................... 31 C. Partnership Approach and Stakeholder Participation .................................................................................... 31 D. Risk Assessment and Monitoring .................................................................................................................... 32 E. Flexibility and Adaptive Management ............................................................................................................ 32 F. Financial Planning by Component and Delivery .............................................................................................. 34 G. Planned and Actual Co‐financing and Leveraged Financing ........................................................................... 36 H. Monitoring and Evaluation ............................................................................................................................. 37 i. M&E Design ................................................................................................................................................. 37 ii. M&E Implementation ................................................................................................................................. 39 VI. Effectiveness and Results: Progress Toward the Objective and Outcomes ........................................................... 39 A. Outcome 1: Enabling policy, legislative and institutional environment is in place for mainstreaming biodiversity conservation considerations in the oil, hydropower and coal sectors ............................................... 42 B. Outcome 2: “Avoid‐reduce‐remedy‐offset” principle is demonstrated for the oil sector .............................. 45 C. Outcome 3: “Avoid‐reduce‐remedy‐offset” principle is demonstrated for the hydropower sector .............. 48 D. Outcome 4: “Avoid‐reduce‐remedy‐offset” principle is demonstrated for the coal sector ........................... 50 E. Assessing Achievement of the Results Chain .................................................................................................. 52 i. Outputs to Outcomes .................................................................................................................................. 52 ii. Impacts and Global Environmental Benefits .............................................................................................. 53 iii. Remaining Long‐term Barriers ................................................................................................................... 54 VII. Key GEF Performance Parameters: Sustainability and Catalytic Role ................................................................... 54 A. Sustainability ................................................................................................................................................... 54 i. Financial Risks .............................................................................................................................................. 55 ii. Socio‐political Risks .................................................................................................................................... 55 iii. Institutional and Governance Risks ........................................................................................................... 56 iv. Environmental Risks .................................................................................................................................. 57 B. Catalytic Role: Replication and Up‐scaling ...................................................................................................... 57 II Mainstreaming Biodiversity Conservation into Russia’s Energy Sector Policies and Operations UNDP Mid‐term Evaluation VIII. Main Lessons Learned and Recommendations .................................................................................................... 58 A. Lessons from the Experience of the Russia BD‐Mainstreaming Project ......................................................... 58 B. Mid‐term Recommendations for the Russia BD‐Mainstreaming Project ....................................................... 59 IX. Annexes .................................................................................................................................................................. 62 A. Annex 1: Mid‐term Review Terms of Reference ............................................................................................. 63 B. Annex 2: GEF Operational Principles .............................................................................................................. 74 C. Annex 3: Russia BD‐Mainstreaming Project Mid‐term Evaluation Matrix ...................................................... 75 D. Annex 4: Interview Guide ..............................................................................................................................