File no.: 2016 - 5831 Programme Committee Meeting 17 March 2016 1. Title: Climate Envelope 2016 2. Amount: DKK 270 million 3. Expected appropriation date: September 2016 4. Duration: Not specified 5. Previous Grants: 2012:500 million DKK; 2013:500 million DKK; 2014:500

million DKK; 2015: 400 million DKK 6. Summary: The overall objectives for the Climate Envelope is threefold: It is to 1) Assist developing countries to adapt to climate changes; 2) Assist developing countries with the transition to low carbon economies; and 3) Prepare developing countries to enter into and implement the new global climate agreement. The proposed allocation of the 2016 envelope is the following: Least Developed Countries Fund (LDCF) - 156 million DKK The LDCF addresses the special needs of the least developed countries which are especially vulnerable to the adverse impacts of climate change. Building capacity of the Government of Ethiopia within Renewable Energy - 28 million DKK The aim of the proposed allocation is to build the capacity of the Ethiopian government (ministry for water, irrigation and electricity) to asses and identify areas with potential for wind energy. IFU Climate Project Preparation Facility - 23 million DKK This aim of this activity is to establish a project preparation facility specifically targeting climate relevant activities. The facility will support project development to ensure that more projects will be eligible for investments by the Danish Climate Investment Fund. Green mini-grids Development Facility – 14 million DKK This activity will – as part of the World Banks Energy Sector Programme - support the establishment of locally based green electricity supply in remote areas in Africa. International Energy Agency (IEA) – strengthening IEAs global engagement – 14 million DKK The purpose of these funds is to support the work of IEA in the larger developing countries to implement the Paris climate agreement through the establishment of an IEA/China Centre and the establishment of a Clean Energy Ministerial secretariat hosted by the IEA. Focus is in particular on renewable energy and energy efficiency. One-year extension of Danish Energy Agency (DEA) Energy Partnership Programme (LCTU II/China-cooperation) – 13 million DKK The DEA Energy Partnership Programme provides technical advisory support and technical supervision to selected emerging economies to further enable them in reaching ambitious climate and energy goals through knowledge sharing and support within planning, regulation and implementation of energy efficiency and renewable energy policy. Fossil Fuel Subsidy Reform project – enhancing sustainable energy systems – 11 million DKK This project will address how fossil fuel subsidies can be reallocated to support energy

efficiency and renewable energy deployment. One activity will be to engage one or more developing countries/regions/cities in developing a business model for fossil fuels subsidy reform. Clean Technology Centre and Network (CTCN) - 11 million DKK The purpose of these funds is to promote the development and transfer of climate relevant technologies to developing countries and thereby help developing countries achieve a low carbon and climate resilient development path. 7. Danish National Budget account:

06.34.01.70. Climate Envelope

8. Channel of delivery: Recipient Government, multilateral organisations and others 9. Modalities: Earmarked contributions, basket funds/pooled funding

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Concept note: Climate Envelope 2016. Programme Committee, 17 March 2016 Strategic questions

Does the proposed allocation of the 2016 Climate Envelope make sense in view of the emerging global development agenda on climate (post-Paris implementation agenda and Sustainable Development goals)? What should be key attention points when formulating and designing the proposed Climate Envelope activities further?

Looking ahead and assuming that there will be a Climate Envelope after 2016: What should be key attention points when implementing the Climate Envelope and the draft guiding principles for the Climate Envelope?

1. Context

The Danish Government has allocated 270 million DKK to the Climate Envelope in 2016. This note presents the proposed allocation of these funds which was approved by the Government in written procedure in November 2015. Climate change is one of the greatest challenges of our time. Dramatic changes in climate conditions and weather extremes are already affecting millions of people around the world damaging crops and coastlines and putting food, water and energy security at risk. Climate change threatens to reverse progress towards sustainable development. On this basis, it is positive that a new and ambitious political agenda for fighting climate change has been set with the historic climate agreement in Paris in December 2015. Together with the Sustainable Development Goals (set out by world leaders in September 2015) there is a clear global political ambition of tackling climate change and achieving sustainable development by focusing on the use of key natural resources like water, energy and food. At COP15 in Copenhagen in 2009 developed countries committed to provide 100 billion USD in climate finance a year by 2020 to support concrete mitigation and adaptation actions in developing countries. At COP21 in Paris in December 2015 the 100 billion USD target was confirmed by developed countries. Furthermore, it was agreed that a new climate finance target should be agreed upon in 2025. Developed countries have made clear that to reach this target significant climate funding from the private sector needs to be mobilized. Established in 2008 the Danish Climate Envelope is a mechanism for channeling dedicated climate funding to supporting mitigation and adaptation activities in developing countries. The Ministry for Energy, Utilities and Climate proposes and prepares activities for half of the Climate Envelope funds while the Ministry for Foreign Affairs proposes and prepares activities for the other half of the Climate Envelope funds. The Climate Envelope is managed as an integrated part of Danish development assistance. An external evaluation of the Climate Envelope was conducted in 2015. Overall, the evaluation concluded that Denmark has been a consistent and reliable supporter of international climate change programmes and initiatives. The investment made by Denmark have been highly

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relevant to international and national priorities and have been well-aligned with commitment from other donors. The evaluation furthermore concluded, based on a review of sampled interventions and projects that there was good progress overall towards achieving outputs, with a few exceptions. For many of the interventions, it is still too early to assess the outcomes. The major point identified is the need for existing Danish policies and strategies to be incorporated into a more formalised planning and reporting framework. This should allow for better management of the portfolio and for better results.

2. Strategic Framework for the Climate Envelope The Danish Climate Envelope operates within the the strategic framework of Danish development assistance. Further to this, a number of draft guiding principles for use of Climate Envelope funds have been developed. This work follows from a recommendation by the external evaluation team of the Climate Envelope and a request from the External Grant Committee. The draft guiding principles document for the Climate Envelope sets out an overall Theory of Change (ToC) for the Climate Envelope as well as a number of guiding principles for use of Climate Envelope funds. Furthermore the document establish an indicator framework for the Climate Envelope with three core indicators and a number of voluntary indicators based on a framework being developed by the Green Climate Fund. The overall objective for the Climate Envelope is threefold: It is to 1) Assist developing countries to adapt to climate changes; 2) Assist developing countries with the transition to low carbon economies; and 3) Prepare developing countries to enter into and implement the new global climate agreement The specific impact that is targeted by the Climate Envelope is the following:

Reduced greenhouse gas emissions

Increased climate resilience specifically for vulnerable and marginalised groups To achieve this impact Climate Envelope interventions will address the following outcomes:

Strengthened national and community-level climate change policies, planning frameworks and information systems

Scale up of climate relevant technologies, infrastructure and markets

More consolidated, effective and ambitious international climate architecture A graphic outline of the ToC for the Climate Envelope is attached in annex 1. The draft draft guiding principles for use of Climate Envelope funds deals with balance and boundaries and with project effectiveness of the Envelope. The balance and boundaries principles are for example about alignment of the projects with the ToC for the Climate Envelope, a strong focus on development of result frameworks and the balance between mitigation and adaptation. On project effectiveness three key criteria are established. There are:

1) National strengths: Where possible Climate Envelope funds will be targeted interventions where Denmark can add value in terms of strengths, competences or

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interest (commercial or regulatory) rather than being visible in a broad variety of support mechanism. Therefore Climate Envelope interventions will thematically focus on: a) Energy including renewable energy, energy planning and regulatory frameworks, energy efficiency and reform of policy frameworks; b) Water related activities including water management, water infrastructure resilience, information services, land management. These are thematic areas where Denmark holds strong know how and business competences.

2) Leverage: Leverage of private finance and innovation are seen as important objectives of the Climate Envelope. Thus, a willingness to take risks guides the prioritization of interventions financed from the envelope in order to a) mitigate risks and create incentives for private actors to make climate relevant investments; b) test and promote new instruments and practices generating valuable lessons learned; c) supporting the development and maturation of climate projects in order to boost the global pipeline of finance-ready climate projects; d) address gaps in the existing financial flows towards investment in climate activities.

3) Transformation: Priority will be given to interventions where chances of achieving transformational change through accompanying changes in policy, markets or finance structures (both public and private) are largest. Transformational change can be also be in the form of innovation and test of new approaches, changes in existing systems and structures (systemic change), changes in conception and values, changes which are irreversible and change which are based on a clear identification of entry points and opportunities and the presence of a clear vision for change

Other important principles on project effectiveness include linkages with other ODA, poverty orientation and added value post Cop21. These principles are important when selecting and designing activities to be funded by the Climate Envelope.

3. Allocation of Climate Envelope 2016 For the proposed 2016 allocation of the Climate Envelope, a strong focus on adaptation activities has been prioritised. At COP21 in Paris, the Danish Government pledged 156 million DKK in support to the Least Developed Countries Fund, LDCF (subject to parliamentary approval). The proposed Climate Envelope allocations to the LDCF as well as to the Climate and Technology Centre are examples of activities with strong adaptation focus. Also, focus on leveraging and increasing private climate investment is a focus area for the proposed allocation of the 2016 Climate Envelope. This is so via the establishment of a climate project preparation facility at the Danish Investment Fund for Developing Countries (IFU). This facility is aimed specifically at preparing climate projects to be ready for investments on commercial basis. Other proposed activities include Government-to-Government cooperation on energy (DEA Energy Partnership Programme) and support to reform of fossil fuels subsidies which focuses on achieving transformational change through policy change and financing structures. Finally the proposed support to the International Energy Agency gives priority to improving the international climate architecture post COP21 in line with the draft guiding principles by

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strengthening IEA’s close ties to the biggest energy consumers and emitters in emerging countries, where huge mitigation potentials are possible if increased energy demand is supplied by sustainable clean energy. During the further formulation of these activities focus on establishing strong result frameworks will be a key focus. Below are overall descriptions of the proposed Climate Envelope 2016 activities.

1. Least Developed Countries Fund (156 million DKK) The LDCF was established in November 2001 under the United Nations Framework Convention on Climate Change (UNFCCC) and is managed by the Global Environment Facility (GEF). Being one of the UNFCCC delivery mechanisms the LDCF remains a key mechanism for channelling adaptation funds to Least Developed Countries (LDCs). There is a solid demand from developing countries for LDCF support. This is the basis for the planned additional contribution from Denmark to the LDCF. With the proposed contribution, the cumulative Danish contribution to LDCF amounts to DKK 376 million (or approximately USD 53 million). Accumulative additional pledges to LDCF totalling 240 million USD were made during COP21. From its inception to January 8, 2016, the LDCF, has provided some USD 974 million in grant financing towards 222 projects in 51 current and former LDCs, while mobilizing USD 3.90 billion in co-financing from other sources. Vulnerability of more than one million people has been reduced as a result of LDCF interventions and several hundred countries have been able to integrate climate change adaptation into relevant policies, plans and associated processes. As of January 8, 2016 resources amounting to USD 226 million were sought for 32 full-sized projects and one medium-sized project that had been technically cleared by the GEF Secretariat; and another USD 69.2 million was sought towards 12 project proposals that had been endorsed by countries’ operational focal points and formally submitted. The 33 projects that had received technical clearance as at January 8, 2016 would address urgent adaptation needs across most of the sectors prioritized in LDCs’ National Adaptation Programs of Action (NAPAs) as well as support to the preparation and initiation of broader national adaptation planning processes (NAPs) and other elements of the LDC work programme under the Convention, including agricultural production and food systems, water resources management, coastal-zone management and disaster risk management. Moreover, each project till promote the demonstration, deployment and diffusion of appropriate adaptation technologies; and through the NAP process in particular – the projects will advance LDCs implementation of the adaptation component of their intended national determined contributions and their participation in the Paris Agreement. A new monitoring framework with quantitative and qualitative indicators has been applied since 2014.

2. Building Capacity of the Government of Ethiopia within Renewable Energy (28 million DKK)

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Ethiopia is the fastest growing economy in Africa. Although the Government of Ethiopia has been able to translate economic growth into poverty reduction, the country is still among the poorest and most vulnerable countries in the world experiencing the adverse effects of climate change, in particular drought. Ethiopia is a highly ambitious climate partner, and has set itself an ambitious goal of achieving middle-income status by 2025 through building a green economy with carbon neutral growth while simultaneously building the resilience of the economy to climate shocks. Currently, the major part of power generation in Ethiopia stems from hydro-power. The Government has realised – partly due to the current severe drought in the country – the need to diversify its renewable energy sources. The need for diversification is outlined in the national Growth and Transformation Plan II for 2016-20 which sets a target of constructing wind farms to generate 5,200 Megawatt. This creates significant opportunities for Danish companies.

Discussions with stakeholders, including Danish companies within renewable energy, have illustrated the lack of capacity within line ministries and agencies in a number of areas within renewable energy, in particular wind, e.g. tendering processes and energy mix.

The aim of the proposed allocation to Ethiopia is to build the capacity of the Government – the Ministry of Water, Irrigation and Electricity, in particular the directorate responsible for on-grid electricity power generation, and Ethiopian Electric Power – to assess and identify areas with potential for wind energy, the ability to conduct feasibility studies and develop concrete bankable investment proposals, implement international standard tendering procedures, conduct a grid integration study and manage the power generation and supply from diverse sources in an efficient and effective way. In addition, possible concrete demand-driven projects could also be envisaged. It is believed that the intention of the Government to allow the private sector to develop and supply power coupled with increased capacity to develop bankable investment proposals and manage tendering processes will enable it to better access funding from the private sector to further develop the renewable energy sector.

The proposed intervention will also serve as a basis to create better access for Danish companies within renewable energy as well as creating a platform for dialogue between Danish and Ethiopian energy authorities.

3. IFU Climate Project Development Facility (23 million DKK)

A major barrier to increase investments in low carbon solutions in developing countries is a shortage of projects which are ready for investments on commercial terms (so-called bankable projects). Experience show that even large international companies are hesitant to develop investment projects in developing countries because of the higher risks and relatively high development costs. Risk sharing and co-investment in such projects is often crucial for them to be established. The Danish established Climate Investment Fund (DCIF), which is being administrated by the Investment Fund for Developing Countries, has a relatively robust pipeline of projects. However, an important experience is that a large number of potentially high impact climate projects need further development and preparations before they can be

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financed on commercial terms. These projects cannot be funded by the DCIF because the risks for the Danish investors (pension funds) are too high. To deal with this barrier, it is proposed to set up a IFU Climate Project Preparation Facility which can support project development so more projects will be eligible for investments on commercial terms. The financial support from the facility would for instance be given as a loan or investment capital on market terms to a project development company established by the partner country. If the project is developed then Investment Project Development and the partner companies will receive return on their investment, and the revenue to Investment Project Development will be used for new climate projects. The objective is to develop 5-10 new climate projects during a couple of years.

4. Green Mini-grids Development Facility (14 million DKK)

Globally, over 1.2 billion people are still without access to electricity - with half of them in Sub-Saharan Africa – affecting economic development and quality of life. The Sustainable Energy for All initiative (SE4ALL) was launched in 2011 to help achieve universal energy access in addition to doubling the share of renewable energy and gains in energy efficiency by 2030. A considerable proportion of this access, up to 40%, is projected to be achieved through mini-grids (IEA, World Energy Outlook 2012), with grid extension and off-grid systems being the other options.

Mini-grids (also referred to as micro-grids in case of smaller sized systems) are village or district level energy distribution networks that can serve remote and dispersed communities, which are away from the grid. Mini-grids can also lend themselves well to supply energy to small communities such as in Small Island Development States (SIDS). Even in areas where the grid is expected to reach in the medium term, mini-grids could be effective pre- grid electrification options. Green Mini-grids (GMGs) are those built with fully renewable and/or hybrid power sources, which in addition to helping expand energy access, provide global and local environmental benefits.

However, in spite of their obvious advantages, the scaling up of installation of GMGs is impeded by a number of critical barriers: Policy uncertainty and inadequate regulation; fragmented early stage markets with little cross-fertilization of knowledge among different stakeholders; capacity issues including in project preparation; lack of proven business models; and, lack of access to affordable and long term finance. The overall global experience is diverse in scale and scope, and there is a need to consolidate the learnings and determine how they can be put to use in specific country contexts.

The purpose of the Green Mini-Grids Development Facility under the World Bank’s Energy Sector Management Assistance Program (ESMAP) is to support the acceleration and scale-up of GMGs by addressing policy barriers, and by identifying and assisting new GMG projects. The overall budget estimated for 5 years is USD 20 million.

The main focus areas and activities are categorized into two broad components: 1) Action Learning and Evidence Generation (USD 10 million) and 2) Technical Assistance at Country Level (USD 10million).

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The Facility will have its secretariat in ESMAP, and will work closely with World Bank’s regional teams as well as International Finance Corporation (IFC), and will build upon the ongoing ESMAP activities. There will therefore not be any additional administrative workload for the Danish MFA associated with this grant. Where feasible, partnerships will be developed with other international/regional agencies for mutual leverage.

5. International Energy Agency (IEA) – strengthening IEA’s global engagement (DKK 14 millions) IEA is undergoing a transformation process with the aim to become an even stronger global player with increased ties to the biggest energy consumers and emitters. Mexico is applying for full membership of IEA and a number of emerging economies, such as China, Indonesia and Thailand have recently become associated IEA members – and more are expected to join (Brazil, South Africa and India). The global strengthening of IEA is seen as a positive development from a Danish point of view. IEA’s global role will open up new fields of influence in terms of energy efficiency and sustainable energy, especially in emerging economies where there are huge mitigation potentials if the rapidly growing energy demand will be supplied by clean energy. Two initiatives should be supported:

a) As a result of China’s associated membership of IEA, it has been decided to create an IEA-China Centre in Beijing with the view to strengthen ties between the IEA as the world’s leading multilateral energy institution and China as the world’s largest energy consumer. The centre will be established up during 2016. The centre’s main task is to encourage China’s energy transition in the years to come. The IEA’s expertise can contribute to improve effective regulations, including renewable energy and energy efficiency, and accelerate the energy transition underway in China.

b) The American lead initiative Clean Energy Ministerial (CEM), which comprises the G20-

countries and a number of green frontrunners, including Denmark, is currently undergoing a transition from being supported by a secretariat based at the US DoE to establishing a multilateral secretariat hosted within the IEA, following this year’s seventh meeting of Ministers in the US in June 2016. Integrating CEM in IEA’s administrative and professional structure will enhance synergies with respect to the engagement of the two organizations outreach and energy programmes in emerging economies and other clean energy initiatives. Danish support will specifically focus on CEM activities that are directly or indirectly contributing to developing a sustainable growth pathway for the large emerging economies.

6. One-year extension of DEA Energy Partnership Programme (LCTU II/China-cooperation) (13 million DKK)

The DEA Energy Partnership Progamme (formerly called Low Carbon Transition Unit/China-cooperation) was established in 2012 by the Ministry of Energy, Utilities and Climate (anchored at the Danish Energy Agency (DEA)) and financed by Climate Envelope 2012.

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The DEA Energy Partnership Programme was prolonged in context of Climate Envelope 2014 for a two-year period (2014-2016) covering technical advisory support and technical supervision of the bilateral cooperation with Mexico, South Africa, Vietnam and China. The development objective of the DEA Energy Partnership Programme is to assist developing countries to adapt to climate change and with transition to low carbon economies based on Danish expertise and preparing to enter into a new global climate agreement.

Through the DEA Energy Partnership Programme emerging economies are further enabled to reaching ambitious climate and energy goals through knowledge sharing and support within planning, regulation and implementation of energy efficiency and renewable energy policy in an Agency-to-Agency cooperation. The point of departure is four decades of Danish experience within renewable energy solutions and regulation. Technical support is delivered by the DEA Energy Partnership Programme on the basis of expressed demand. The demand driven principle provides high incentives for and ownership by institutions to implement advice and technical assistance recommendations. Currently energy sector programmes are running in South Africa (40 million DKK Climate Envelope 2012), Vietnam (65 million DKK Climate Envelope 2012) and Mexico (45 million DKK Climate Envelope 2013). These programmes contribute to enable recipient countries in reducing their greenhouse gas emissions and thereby reducing their global carbon footprint. The purpose is also to reduce or avoid lock-in of fossil fuel based energy production systems that will otherwise contribute to greenhouse gas emissions

The DEA Energy Partnership Programme provides technical supervision and technical advisory support to the three bilateral sector programmes, as well as to the cooperation with the China National Renewable Center (CNREC) and National Energy Conservation Center (NECC). As the three bilateral programmes expire by Mid-2017, there is a need for sustaining the DEA Energy Partnership Programme support to the bilateral programmes up to Mid-2017, to allow DEA experts to engage during the programs’ entire duration as well as in China till Mid-2017. The DEA Energy Partnership Programme has a pivotal role in relation to supervision and administration as well as it is coordinating and providing Technical Assistance.

The one-year extension of the DEA Energy Partnership Programme will ensure continued technical assistance and support to the three bilateral energy sector programmes as well as to the cooperation with the CNREC and NECC. In addition, the external evaluation of the Climate Envelope completed in 2015 stressed the relevance of the DEA Energy Partnership Programme and the bilateral energy sector programmes.

7. Fossil Fuel Subsidy Reform project – enhancing sustainable energy systems (11 million DKK) Reform of fossil fuel subsidies and promotion of RE and EE technologies are important parts of broader efforts to promote the development of an energy system that is able to deliver reliable energy services; cover costs; invest for the future; and meet climate change and energy security aspirations. The link between fossil fuel subsides, RE and EE can be enhanced through direct measures, whereby the savings from fossil fuel subsidies reform are reallocated to RE and EE technology deployment. Recent analysis by the IIDS-GSI (Global subsidy Initiative) has shown that removing fossil fuel subsidies and reallocating a portion of the

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revenues to support renewable energy and energy efficiency is a very effective way to reduce greenhouse gas (GHG) emissions. The IIDS-GSI estimates that a phase out of consumer subsidies coupled with a reallocation of 20% of the savings to EE and a further 10% to RE would lead to an overall global emissions reductions of around 17%. There is need for new initiatives addressing how fossil fuel subsidies can be reallocated to support EE measures and RE deployment. The historic low oil prices, combined with the cost-effectiveness of energy efficiency and renewable energy interventions, provide a unique opportunity for focusing reforms in the context of increasing mitigation and promoting sustainable energy system and preventing the need to reintroduce subsidies when oil prices rise again. The Fossil Fuel Subsidy Reform (FFSR) project will identify and engage one or more developing countries/regions/cities in a) analyzing reform’s potential contribution to EE and RE, b) develop a business case for undertaking reforms and direct these “subsidy savings” towards concrete measures leading to increased energy efficiency and/or increased deployment of renewable energy solutions (in a pilot-case implementation), and c) ) develop a “generic” business model and step-wise guidebook of undertaking fossil fuel subsidy reforms linked to increasing energy efficiency and renewable energy deployment – based on the pilot-case implementation and with a view to replication and upscaling. With the overall objective of identifying feasible and “high impact opportunities” the project will in scope seek to cover both the power, including distributed generation, and transport sectors in larger emerging economies and draw on lessons learned from leading international institutions in-country work on FFSR (WB, IEA, OECD, IISD-GSI). A decision is yet to be taken on which entity will be responsible for implementing the activity.

8. Clean Technology Centre and Network (11 million DKK)

The aim of the Clean Technology Centre & Network (CTCN) is to stimulate technology cooperation and enhance the development and transfer of climate related technology as a mean to support action on mitigation and adaptation, and enhance a low carbon and climate resilient development path in developing countries. The CTCN was agreed by Parties at the COP16 in Cancun in 2010 and COP18 in Doha approved UNEPs offer to host the CTCN. The CTCN is located at the UN city in Copenhagen. The CTCN started its operations in 2013 and is now well functioning. A broad donor base has been established and demand from developing countries is high. In 2016, the centre is expected to provide technical assistance to 70 - 100 specific activities which is a doubling from 2015. For 2016 the CTCN is operating with a total budget of 19 million USD. There is currently a finance gab of 12 million USD. A Danish contribution of 11 million DKK will enable the CTCN to provide assistance to 13 – 15 requests from developing countries for assistance in terms of climate change mitigation and adaptation activities. Denmark provided a contribution of 30 million DKK to the CTCN in 2013.

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4. Monitoring

Separate result frameworks will be developed for all of the above mentioned activities. To enable monitoring of the Climate Envelope at portfolio level, the draft guiding principles for the Climate Envelope sets out three core indicators which all projects to be funded by the Climate Envelope should report on unless it can be justified that these indicators are not appropriate for the specific action (this will typically apply to projects focusing on policy reforms, institutional frameworks and capacity building, e.g. government-to-government cooperation). These indicators (which are taken from the performance and monitoring framework for the Green Climate Fund) are the following:

Tons of carbon dioxide equivalent (tCO2 eq) reduced as a result of Climate Envelope mitigation projects/programmes

Total number of people supported to cope with the effects of climate change by Climate Envelope resilience programmes (direct and indirect, gender disaggregated)

Volume of finance leveraged by Climate Envelope funding (disaggregated by public and private sources, annual)

An annual effort will be undertaken to track these indicators and aggregate them at the level of the Climate Envelope

5. Annexes 1. Theory of Change for the Climate Envelope 2. Proces Action Plan

Annex 1: Theory of Change for the Climate Envelope

Annex 2: Climate Envelope 2016: Proces Action Plan

Presentation of the proposed allocation of the 2016 Climate Envelope to Programme Committee on 17 March 2016.

Activity Amount (million DKK)

Preparation and quality ensurance Approval Commitment and first payment

(2016)

Responsible

Least Developed Countries Fund (LDCF)

156 LDCF-secretariat prepares programme material. MFA responsible for appraisal

External Grant Committee, September 2016

Fourth quarter MFA

Clean Technology Centre and Network

11 CTCN-secretariat develops programme material. MFA responsible for quality assurance

Under-secretary (MFA)

Fourth quarter MFA

Fossil Fuel Subsidy Reform

11 MEUC develops project material. MFA responsible for quality assurance

Under-secretary (MFA)

Third quarter MEUC

International Energy Agency

14 MEUC develops project material. MFA responsible for quality assurance

Under-secretary (MFA)

Fourth quarter MEUC

Green Mini-grids Development Facility

14 ESMAP-secretariat develops programme material. MFA responsible for quality assurance

Under-secretary (MFA)

Third quarter MFA

DEA Energy Partnership Programme

13 DEA develops project document. MFA conducts appraisal of the proposed allocation (deadline 6 April 2016)

Under-secretary (MFA)

Second quarter MEUC

Ethiopia – Renewable energy

28 Embassy in Addis MFA/Addis

IFU Climate Project Development Facility

23 Follows approval process for facility under the business programme.

External grant committee (part of business programme appropriation)

Second quarter MFA