Meeting of the Board 1 – 4 July 2018 GCF/B.20/10/Add.04 Songdo, Incheon, Republic of Korea Provisional agenda item 8 June 2018 Consideration of funding proposals – Addendum IV Funding proposal package for FP085 Summary This addendum contains the following three parts: a) A funding proposal summary titled “Enhancing Climate Resilience of India’s Coastal Communities”; b) No-objection letter issued by the national designated authority(ies) or focal point(s); and c) Environmental and social report(s) disclosure; Project/Programme Title: Enhancing Climate Resilience of India’s Coastal Communities Country/Region: India Accredited Entity: United Nations Development Programme Initial submission 4 April 2017, 1st Resubmission 1 August 2017, 2nd Resubmission 16 October 2017, 3rd Resubmission 3 November 2017, 4th Resubmission 26 November 2017, Date of Submission: 5th Resubmission 29 November 2017, 6th Resubmission 14 December 2017, 7th Resubmission 10 April 2018, 8th Resubmission 26 April 2018, 9th Resubmission 24 May 2018 Contents Section A PROJECT / PROGRAMME SUMMARY Section B FINANCING / COST INFORMATION Section C DETAILED PROJECT / PROGRAMME DESCRIPTION Section D RATIONALE FOR GCF INVOLVEMENT Section E EXPECTED PERFORMANCE AGAINST INVESTMENT CRITERIA Section F APPRAISAL SUMMARY Section G RISK ASSESSMENT AND MANAGEMENT Section H RESULTS MONITORING AND REPORTING Section I ANNEXES Please submit the completed form to: [email protected] Please use the following name convention for the file name: “[FP]-[Agency Short Name]-[Date]-[Serial Number]” PROJECT / PROGRAMME SUMMARY GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 3 OF 105 A A.1. Brief Project / Programme Information A.1.1. Project / programme title Enhancing climate resilience of India’s coastal communities A.1.2. Project or programme Project A.1.3. Country (ies) / region India Ministry of Environment, Forest and Climate Change, A.1.4. National designated authority (ies) Government of India A.1.5. Accredited entity United Nations Development Programme A.1.5.a. Access modality ☐ Direct ☒ International Executing Entity: Ministry of Environment, Forest and Climate Change, Government of India Direct – Approx. 1,744,970 people (of whom 50% female) in 24 A.1.6. Executing entity / beneficiary target landscapes Indirect – 10 million people in 24 target landscapes benefitting from improved shoreline protection in 12 coastal districts of Andhra Pradesh, Maharashtra and Odisha States Micro (≤10) A.1.7. Project size category (Total investment, ☐ ☐ Small (10<x≤50) million USD) ☒ Medium (50<x≤250) ☐ Large (>250) A.1.8. Mitigation / adaptation focus ☐ Mitigation ☐ Adaptation ☒ Cross-cutting Initial submission 4 April 2017, 1st Resubmission 1 August 2017, 2nd Resubmission 16 October 2017, 3rd Resubmission 3 November 2017, 4th Resubmission 26 November 2017, 5th Resubmission 28 A.1.9. Date of submission November 2017, 6th Resubmission 14 December 2017, 7th Resubmission 10 April 2018, 8th Resubmission 26 April 2018, 9th Resubmission 24 May 2018 Srilata Kammila Contact person, position Regional Technical Specialist - Adaptation A.1.10. Organization United Nations Development Programme Project Email address [email protected] contact details Telephone number +66 2 304 9100 ext. 5264 United Nations Service Building, Mailing address Rajdamnern Nok Avenue, Bangkok 10200 Thailand A.1.11. Results areas (mark all that apply) Reduced emissions from: Energy access and power generation ☐ (E.g. on-grid, micro-grid or off-grid solar, wind, geothermal, etc.) Low emission transport ☐ (E.g. high-speed rail, rapid bus system, etc.) Buildings, cities and industries and appliances ☐ (E.g. new and retrofitted energy-efficient buildings, energy-efficient equipment for companies and supply chain management, etc.) Forestry and land use ☒ (E.g. forest conservation and management, agroforestry, agricultural irrigation, water treatment and management, etc.) Increased resilience of: ☒ Most vulnerable people and communities PROJECT / PROGRAMME SUMMARY GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 4 OF 105 A (E.g. mitigation of operational risk associated with climate change – diversification of supply sources and supply chain management, relocation of manufacturing facilities and warehouses, etc.) Health and well-being, and food and water security ☐ (E.g. climate-resilient crops, efficient irrigation systems, etc.) ☐ Infrastructure and built environment (E.g. sea walls, resilient road networks, etc.) Ecosystem and ecosystem services ☒ (E.g. ecosystem conservation and management, ecotourism, etc.) A.2. Project / Programme Executive Summary (max 300 words) 1. The proposed project supports the Government of India to enhance the resilience of vulnerable coastal communities to climate change through ecosystem-based adaptation (EbA). The project combines GCF grant finance with significant leveraged co-finance to shift the paradigm towards a new approach integrating ecosystem-centred and community-based approaches to adaptation into coastal management and planning by the public sector, the private sector and civil society. This will be achieved through investing in ecological infrastructure to buffer against climate- induced hazards, especially storm surges, supporting climate-resilient coastal livelihoods, and enhancing climate-risk informed cross-sectoral planning and governance of the coastal zone. 2. The project objective is to enhance the resilience of the lives and livelihoods of the most vulnerable populations, particularly women, in the coastal areas of India to climate change and extreme events, using an ecosystem-centred and community-based approach. This will contribute to the GCF’s Fund Level Impacts of increased resilience and enhanced livelihoods of the most vulnerable people, communities and regions, and improved resilience of ecosystems and ecosystem services, as well as reduced emissions from sustainable land use and forest / ecosystem management. In addition, the proposed project will contribute towards the achievement of climate priorities outlined in India’s National Action Plan on Climate Change (2008), the State Action Plans, as well as commitments outlined in India’s Nationally Determined Contribution (2015). The project will be aligned with India’s emerging strategic investment priorities for GCF funding, which are currently being identified through a consultative process, reflecting the priorities in the aforementioned policies; and will also be aligned with the work program of UNDP as an Accredited Entity of the GCF. 3. GCF and other leveraged resources will be used at national, state, and community levels to enhance capacities for ecosystem- and community-based approaches to climate change adaptation and enable climate policy and finance shifts to catalyse climate action in all of India’s coastal States and Union Territories. Specific ecosystem-based adaptation and climate-adaptive livelihood interventions will be undertaken in the target states of Andhra Pradesh, Maharashtra and Odisha, with pathways to replication and scale across all coastal states, and learning shared across the South Asian region. The project yields sustainable development benefits across coastal districts of the three target states, with more than 1,700,000 direct beneficiaries in the target landscapes whose households’ current livelihoods are affected by climate change and will benefit from livelihoods activities through the project, and 10 million indirect beneficiaries living in these landscapes, who will benefit from the mitigation of economic damages and losses associated with extreme weather events, especially storm surges that can cause coastal flooding and erosion. The proposed investment demonstrates a high degree of economic efficiency, with an economic rate of return in excess of 20% for livelihood activities, of approximately 26% for paddy rice activities, and well above 30% in most coastal protection activities. The project was designed through extensive stakeholder consultations, including engagements with civil society role-players, that influenced the development of the proposal. A formal review of the funding proposal was undertaken by a Technical Working Group, including representatives of the MoEFCC and the three State Governments. Following revisions, a Project Appraisal Meeting was held in March 2017, including these implementing partners, technical experts and representatives of civil society, at which the final submission package, including all annexes, was approved, and arrangements were discussed for project implementation and operations and maintenance post-project. Following the appraisal meeting, the NDA issued a letter of no objection. A.3. Project/Programme Milestone Expected approval from accredited entity’s 4 April 2017 Board (if applicable) Expected financial close (if applicable) TBD [Date of agreement on the FAA between UNDP and GCF] PROJECT / PROGRAMME SUMMARY GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 5 OF 105 A Start: 01/01/2019 Estimated implementation start and end date End: 31/12/2024 Project/programme lifespan 30 years1 1 This is the period over which the carbon sequestration benefits of ecosystem restoration have been calculated. FINANCING / COST INFORMATION GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 6 OF 105 B B.1. Description of Financial Elements of the Project / Programme 4. The cost of implementing the project to enhance climate resilience of vulnerable target coastal communities is estimated at $130.27 million over the period 2019 to 2024. The GCF input of $43.42 million will