1. Promoting adaptation and climate resilient growth through devolved district climate finance Phase 1: June 2013 – September 2014

2. Objectives of the Pilot Phase Build capacity of district government to access and manage climate finance in support of adaptation and climate resilient development; and…. Mainstream mechanisms into government planning that allow local communities to prioritise investments in public goods that build their resilience to climate change.

3. Three major components Establish a district-level climate adaptation fund (CAF) under discretionary authority of the district council with necessary mechanisms for strong accountability & transparency Mainstream climate information & participatory resilience assessments into planning using O&OD to integrate climate change into public good investment choices Establish monitoring system to track how adaptation builds resilience and strengthens economic development Key features of the approach – for replicability Work through government systems Invest in building knowledge on issues and understanding between actors – to adapt the “model”, to reconcile interests Take systemic approach and work at appropriate scales to build resilience

4. Achievements so far… Mainstreamed climate change into district planning & budgets Strengthened community involvement through traditional leaders Built capacities of different actors to understand implications of climate change for planning – empowers local decision-making Developed resilience assessment tools that enhance multi-actor participation and consistent with O&OD Established institutional framework for improved planning at scale Established strong links with Regional Secretariat and TAMISEMI

5. Overview of next Phase - 4 years Year 1: Implement CAF in 3 Districts Establish CAF in further 6-10 Districts & cross border with Kenya Years 2 & 3: CAFs operational in 10 Districts & cross-border with Kenya; Year 4: Lessons learnt for national application

6. Phase 2 – Key Features (provisional) Approach Build capacity of TAMISEMI to establish & monitor CAF and mainstream climate adaptation in planning Training of Training programme, “on-the-job” application M&E & Knowledge integration (learning) to adapt “model” Geographical scope Three regions, 8-10 additional districts plus cross-border Kenya Different ecologies, economies & demographics Decision in collaboration with TAMISEMI

7. Communities select representatives through public vetting process (village, ward) Divisional Adaptation Planning Committee DAPC Cross Divisional planning District Adaptation Planning Committee Regional/cross- border planning Investments in public goods that build climate resilience prioritised by communities Investments in public goods that build climate resilience prioritised by communities Membership: - Ward reps - Government technical staff co-opted (ex- officio) Membership: - Ward reps - Government technical staff co-opted (ex- officio) District Climate Adaptation Fund Working Concept District CAF – drylands Membership Members from DAPC and District government Membership Members from DAPC and District government National Climate Finance Ward

8. Institutional Framework Basket Climate Adapt Fund Regional Teams TAMISEMI Donors + GOT Future National Fund District CAF IIED/HK Fund Manager Lead Donor Knowledge Integration mechanism National Policy Circa £20m over 4 Years £400k/CAF/Year Y1& Y2: 3 CAFs Y3 & 4: 10 CAFs Management & Capacity building costs 3.5 to 4.0 million CAF beneficiaries by Year 4 Global Climate Finance ? ? ?