NABARD Experience in attaining accredition

and its role as NIE

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APPANNA C P General Manager, NABARD,

MUMBAI, INDIA

ABOUT NABARD

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Owned by Government of India and Reserve Bank of India

A Development Financial Institution

Our development initiatives lead to financial intermediation

We incentivise formal banking channels for extending

financial support to agriculture and rural development

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MOTIVATION-NIE ACCREDITATION

> The major environmental challenge India faces-the nexus of natural resource and environmental degradation with poverty. > Our economic growth coupled with population growth and industrialisation -increased pressure on natural resources, led to environmental degradation through increased pollution, green house gas emissions and accelerated resource degradation - imminent risk to human health and sustainable development. > The emerging challenge of Climate Change could irreversibly alter the resource regimes and put pressure on environmental resources, thereby posing challenges to sustainable development and national food security. > The climate change has a profound adverse impact -rainfed agriculture directly & affect livelihood of Indian farming community. > Better to-integrate & mainstream natural resource and environment management concerns in all dev activities. > The response to the climate change - adaptation-measures on a large scale/extensive regions/ +ve impact in a time bound manner. > Need to play the role of NIE –To facilitate access to various agencies for fund support (from AFB etc.,)

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Process of Application & review for NIE Accreditation

– It has substantial experience and expertise in NRM sector including climatic change adaptation projects. - Most of the NRM project/programmes funded by NABARD are contributing directly or indirectly, towards climate change adaptation and reduction of green house gases. -It is implementing NRM projects under various programmes like watershed, tree based farming and Umbrella Programme on Natural Resource Management(UPNRM), Rural Infrastructure Development Fund(RIDF) etc., across the country and created replicable models. -There is an emerging need to upscale these projects through large scale funding support. - It has been implementing various programmes in the field partnering with community based organisations, NGOs, farmer organisations, village level institutions,Technology institutions etc.,

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Road to Accreditation -NABARD Experience

Ministry of Environment & Forests (MoEF), Govt of India (GoI) had invited applications from eligible institutions and bodies for selection as National Implementing Entity (NIE) of the Adaptation Fund set up under the Kyoto Protocol of UNFCCC ( paper advertisement dated 15th Aug 2010. NABARD submitted the application to MoEF on 30th August 2010. The Ministry invited NABARD for a presentation in May 2011 and after due deliberations and subsequent scrutiny by the Ministry, NABARD was nominated by GOI as NIE. Subsequently, in response to queries from AFB, we have forwarded very detailed information/documents which covered details of projects implemented by us, evaluation study reports, minutes of meetings of our Audit Committee to Board, (Inspection Reports of our Regional Officers, etc. We also explained these aspects through teleconference with AFB and meetings with AFB representatives at New Delhi (March – April 2012).

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Road to Accreditation -NABARD Experience…Contd

It demonstrated thro presentations and discussions and thro support of documents that it meets the International Standards as a development financial body to take up the role of a NIE During this exercise NABARD presented some of its original documents as a proof to justify its stand as a capable organisation (Audit certificates were not fulfilling the requirements) NABARD has been finally accredited as National Implementation Entity during the 18th Adaptation Fund Board meeting held during 26-29th June 2012 at Bonn, Germany. NABARD is the only agency from India and only 12th in the world to have been accredited as NIE.

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NABARD as National Implementation Entity (NIE)

NABARD's role as NIE Identification, formulation and implementation of activities for

adaptation. Ensure to meet the criteria adopted by AFB for project sanction. Ensure quality in operations and accountability for implementing

projects according to the principles and modalities of AFB Management, operation, and use of funds for activities based on

fiduciary standards established by AFB Ensure appropriate monitoring, independent evaluation, and

financial audits of all activities funded by the AFB. Submission of periodic reports as prescribed by AFB

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Adaptation Fund

2% of the sale proceeds of the CERs are appropriated towards this fund (124 million USD as on 31 March 2013)

AF shall assist developing countries particularly vulnerable to the adverse effects of climate change in meeting costs of adaptation

Adaptation Fund shall finance concrete adaptation projects and programmes that reduce the adverse effects of climate change facing communities, countries and sectors

Project proponent to provide justification of the extent to which the project contributes to adaptation and climate resilience.

Every proposal for funding must be endorsed by the requesting Government Projects/Programmes to take in to account national sustainable development

strategies, national communications and national adaptation programmes Funding for projects/programmes at national, regional and community levels

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Project submission to AFB

Stage I: Submission of Project / Program by PIAs to NIE (NABARD)

Stage II: Screening for Technical review by NIE Programme Support Unit

Stage III : Presentation by PIAs to NIE Program Review Committee Stage IV: Decision making by NIE for onward transmission to

Designated Authority Stage V : Submission to AFB by NIE with letter of endorsement of

DA Stage VI : Approval of the project / program by AFB Stage VII : Monitoring of the program by NIE

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WAY FORWARD

As NIE, NABARD will supplement and complement NRM programmes in the country. NABARD will dovetail programmes, appropriately position and use funds for various alternate activities. NABARD to become a leader in the adaptation programmes of the country and to contribute to the framing of national policy. Platform for its global visibility and leading to become an important stake holder at international level. Benefit various stake holders in capacity building and other support extended by international agencies like UNDP. The opportunity to partner several agencies at national and international level which will add to capabilities in taking forward adaptation activities.

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THANK YOU