Exercise: Project prioritisation

2 Imprint Published by: Contact adelphi Caspar-Theyss-Strasse 14a Berlin / Germany T F E I Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH CF Ready Program Godesberger Allee Bonn/Germany T F E I Dennis Tänzler E T Dorit Lehr E T tise/html/3041.html Any content written by named authors do not necessarily reflect the views of adelphi nor GIZ nor of the German Federal Ministry for Economic Cooperation and Development. Although the authors take all possible care to ensure the correctness of published information, no warranty can be accepted regarding the correctness, accuracy, reliability and completeness of the content of this information. August 2014

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4 What you can expect to learn from this exercise  Understanding of :  the Multi-Criteria Analysis (MCA) tool for prioritising climate investments  the relevant criteria established by the Green Climate Fund (GCF) for the decision on climate investments  How to:  facilitate a consensus on climate investments while considering different opinions and perspectives

5  Introduction to the concept of the Multi-Criteria Analysis (MCA)  Project prioritisation exercise  Reflection and next steps Agenda

6 Multi-Criteria Analysis (MCA) – a definition “MCA describes any structured approach used to determine overall preferences among alternative options, where the options accomplish several objectives. In MCA, desirable objectives are specified and corresponding attributes or indicators are identified.” (Source: UNFCCC)

7 is a decision-making aid takes into account quantitative and qualitative variables, and thus represents the complex nature of climate policy instruments is a hands-on and easily understandable tool and therefore allows for participatory decision making Multi-Criteria Analysis (MCA) – purpose and function

8 Multi-Criteria Analysis (MCA) – steps and procedures 1 Identification of criteria Standardisation of values for criteria 2 Weighing of criteria Scoring options based on criteria 3 Analysis of results Drawing of conclusions

9 Project prioritisation exercise Setting You are a member of the National Climate Change Technical Committee working on CLIFland‘s National Climate Change Strategy and Action Plan (NCCSAP). The development of the NCCSAP followed a multi-stakeholder process, involving actors from the public and private sector as well as civil society. Of the many project ideas developed to implement the National Climate Change Strategy, only a selection will be submitted for funding to the Green Climate Fund (GCF). In order to select a priority project, the National Climate Change Steering Committee of CLIFland already decided on a weighting of the initial GCF investment criteria. Your task is to select one priority adaptation/ mitigation project from the existing project pipeline, making use of the Multi-Criteria Analysis and a selection of the GCF investment criteria. The most suitable project will be proposed to the Implementing Entity for submission to the GCF.

10 Project prioritisation exercise Now it is your turn to do the exercise!  Break up into groups of 4-5 people  Follow the instructions of the step-by-step guide which you will find in the hand- out Step 1: Evaluate the list of projects provided in the hand-out according to the selected GCF investment criteria on a scale of 1 to 5 (5 being the highest rating) Step 2: Multiply the scores for each project by the respective weights given. Step 3: Discuss the results within your group and take a final decision on the project to be submitted to the GCF.

11 Initial investment criteria of Green Climate Fund GCF investment criteria Impact potential Paradigm shift potential Sustainable development potential Country ownership Efficiency and effectiveness Needs of the recipient Criterion 2 Criterion 1 Criterion 3

12 Project prioritisation exercise Criterion 1 Paradigm shift potential Criterion 2 Efficiency and effectiveness Criterion 3 Country ownership Potential for scaling-up and replication and overall contribution to global low- carbon and climate resilient development pathways Potential for knowledge and learning Contribution to the creation of an enabling environment Contribution to the regulatory framework and policies Cost-effectiveness and efficiency regarding financial and non-financial aspects Amount of co-financing Programme/ project financial viability and other financial indicators Industry best practices Existence of a national climate strategy Coherence with existing policies Capacity of implementing entities, intermediaries or executing entities to deliver Engagement with civil society organizations and other relevant stakeholders Selected GCF investment criteria for Multi Criteria Analysis (reduced version)

13 Multi-Criteria Analysis (MCA) – Example for adaptation Adaptation projects Criterion 1: Paradigm shift potential Criterion 2 Efficiency and effectiveness Criterion 3 Country ownership Overall evaluation Construct wind shelter belts against erosion 3 Flagship project with high spill-over potential for other affected regions, change in national policy framework unlikely 4 Pilot plantations in other districts show that erosion has been significantly reduced at low cost 4 Project forms part of government‘s climate change strategy, experienced implementing partner identified 11 Raise water prices and inform farmers about water-saving irrigation techniques. 5 High potential to achieve change in policy framework and to initiate technology innovation 3 Needs to be accompanied by other measures to increase overall water volume. 2 Water conservation not among priority areas of national climate change action plan 10 Scoring Scale 1 – 5 (5 being the highest rating) Step 1: Evaluate projects according to selected criteria

14 Multi-Criteria Analysis (MCA) – Example for adaptation Adaptation projectsCriterion 1: Paradigm shift potential Criterion 2 Efficiency and effectiveness Criterion 3: Country ownership Overall evaluation Weights: Construct wind shelter belts against erosion 3 x 1.0 = 3.04 x 1.0 = 4.04 x 0.8 = Raise water prices and inform farmers about water-saving irrigation techniques. 5 x 1.0 = 5.03 x 1.0 = 3.02 x 0.8 = Weights: 0.1 – 1.0 (1.0 indicating the highest importance) Step 2: Calculate the final scores by multiplying the scores with the given weighting

15 Multi-Criteria Analysis (MCA) – Example for mitigation Step 1: Evaluate projects according to selected criteria Mitigation projects Criterion 4: Paradigm shift potential Criterion 2 Efficiency and effectiveness Criterion 1 Country ownership Overall evaluation Introduce energy performance certificates for public and commercial buildings 5 Creation of an enabling environment for spread of energy-saving technologies in the country and potentially the region 4 Efficient lamps save 25% of electricity consumption for lighting 4 In line with national climate chnage mitigation strategy; experienced implementing partner identified 18 Catalysing industrial and commercial organic waste management 3 Project outcomes will be fed into an update of national waste management regulations to achieve system change 3 Facilities reduce the use of dumps; technologies yet to be tested to leverage private sector funding 2 Waste management not among priority areas of national climate change action plan 11 Scoring Scale 1 – 5 (5 being the highest rating)

16 Multi-Criteria Analysis (MCA) – Example for mitigation Weights: 0.1 – 1.0 (1.0 indicating the highest importance) Step 2: Calculate the final scores by multiplying the scores with the given weighting Mitigation projects Criterion 4: Paradigm shift potential Criterion 2 Efficiency and effectiveness Criterion 1 Country ownership Overall evaluation Weights: Improve lighting efficiency in buildings 5 x 1.0 = 54 x 0.9 = 3.64 x 0.7 = Catalysing industrial and commercial organic waste management 3 x 1 = 33 x 0.9 = 2.72 x 0.7 =

17 Hints for project proposal writing

18 Preparation of a detailed funding proposal Planning steps and consideration 1.Identifying goal, objectives and expected results 2.Identifying target group 3.Content of the project 4.Projects locations and time schedule of activities 5.Resources 6.Cost/Income sources 7.Description of the implementing organisation and partners 8.Project team and management 9.Monitoring, evaluation and follow-up

19 Preparation of a detailed funding proposal Conducting preparatory work Desk research Consideration of studies/ publications with relevant background information Review past project proposals and evaluation reports Consider “lessons learnt” Check statistical data Field studies/ participatory process Interview past and prospective beneficiaries Consult experts Conduct surveys and interviews Hold community meetings or forums Conduct thematic discussion with involved stakeholders

20 Preparation of a detailed funding proposal Key design elements (1) Proof project objectives’ compliance with: overalll framework conditions national climate adaptation/mitigation strategies and regulations objectives of funding institution financial volume of tendered project Hierarchy of goals/ logical framework Goal/ impactGlobal objectives of the Fund to which the project/ programme contributes Objectives/ outcomesPurpose of the project/ programme and its components OutputsIntended results of activities per component ActivitiesActivities to achieve outputs

21 Examples of successful proposals Project compliance with national strategies and plans Source: Proposal to Global Environment Facility (GEF)„Promoting Energy Efficiency for Non-HCFC Refrigeration and Air Conditioning, Indonesia”Promoting Energy Efficiency for Non-HCFC Refrigeration and Air Conditioning, Indonesia

22 Examples of successful proposals Logical framework example: Source: Adaptation Fund proposal „Ecosystem Based Adaptation to Climate Change in Seychelles”Ecosystem Based Adaptation to Climate Change in Seychelles

23 Preparation of a detailed funding proposal Key design elements (2) Activity/ work plan Detailing activities, implementation time and responsible party Monitoring framework and schedule Defining baseline and indicators at outcome and output level Detailing source of verification of indicators, schedule for data collection and budget breakdown for M&E measures Work breakdown structure – Gantt Chart Visualising time frames for each work package/ component and inter-linkages of activities Resource Plan for Activities Defining types, quantities and costs for resources required per work package component and period of implementation

24 Examples of successful proposals Results Framework and Monitoring Source: World Bank proposal: „Forest conservation and sustainability in the heart of the Colombian Amazon Project“

25 Preparation of a detailed funding proposal Key design elements (3) Project Justification How do activities contribute to climate resilience respectively climate change mitigation? How does the project/programme provide economic, social and environmental co-benefits, with a focus on most vulnerable groups How cost-effective are the proposed activities? How is learning and knowledge management considered to capture and disseminate lessons learned? To what extent has the sustainability of the project/programme outcomes been taken into account?

26 Examples of successful proposals Source: Adaptation Fund proposal „Building Resilience in the Greater uMngeni Catchment, South Africa”Building Resilience in the Greater uMngeni Catchment, South Africa

27 Ensuring long-term sustainability of projects Integrating climate change concerns into existing strategies, policies and budgetary processes Mainstreaming Providing public co-funding to sustain project activities Incentivise private sector engagement Co-Financing Knowledge generation and dissemination Improvement of management and other capacities of involved parties Capacity Development

28 Project prioritisation exercise Getting CLIF Ready What did you learn from this exercise? How would you evaluate the benefits of the Multi-Criteria Analysis (MCA) for the selection of priority adaptation and/or mitigation measures? How familiar are you with the preparation of detailed funding proposals and the respective requirements?

29 Project prioritisation exercise Checklist to get CLIF Ready According to what you learned from this exercise you could … Check with your institution about which criteria would be most relevant to prioritise projects in your country. Consider a multi-stakeholder process in order to prioritise climate projects for implementation. Check about an existing project pipeline and its potential for developing full proposals for international funding.