Asia-Pacific Climate Week

14 December 2017

SUPPORTING CAPACITY BUILDING AND FINANCING DECISIONS THROUGH THE

MITIGATION ACTION ASSESSMENT PROTCOL (MAAP)

Presentations by:

• VK Duggal, Senior Climate Change Specialist, Asian Development Bank

• Rachel Mok, Climate Change Analyst, World Bank

• Aryanie Amellina, Policy Researcher, Climate and Energy, IGES

MITIGATION ACTION ASSESSMENT PROTOCOL (MAAP)

CASE STUDY DEEP DIVE

Asia-Pacific Climate Week

14 December 2017

AGENDA

2 CASE STUDY DEEP-DIVE

3

1 OVERVIEW OF MAAP

3 CONCLUSION

INTRODUCTION VIDEO

5

International markets (and other forms of cooperation) are desirable

Governments and market participants need information

about the underlying carbon assets

Lack of comparability as a result of the bottom-up development of

mitigation actions

6

Program

Definition & Scope

Objectives & Targets

Planning

Documents, document control and records

Emissions reductions from interventions

Monitoring and reporting

Management Entity

Management Framework

Financial and Investment

Programs management

Infrastructure at theprogram level

Financial Structure

Financial coherence

Financial stakeholders

Monitoring financial flows

Development Benefits

Development objectives and targets

Planning and participation

Monitoring of development benefits

Environmental integrity

MAAP-Design and MAAP-Implementation

1 2 3 4

7

National and

Subnational

Jurisdictions

Project

Developers

Donor and

Investors

Multilateral

Development

Banks

Carbon Market

Regulators

Suppliers: Self-assessment to enhance

design/implementation

Buyers: Financing decisions Regulators: Basis for accepting

carbon assets

8

Ambassadors, Carbon

Trust and Government in

Mexico: NAMAs and

Jalisco’s State Climate Plan

Government in

Ecuador: National

Energy Efficiency Plan

Government in Peru:

NAMAs WB Pilot in Thailand:

Low carbon city programs

IGES in Mongolia and

Vietnam: JCM projects

Perspectives in

Mediterranean Region:

Low carbon city programs

UNEP DTU Partnership / Gold Standard in

Costa Rica, Ecuador, Jamaica, El Salvador,

Morocco, Indonesia, Chile, Sri Lanka,

Ghana, Kenya, Peru, Tunisia, Colombia,

Armenia Cambodia, Mexico: mitigation

actions including NAMAs, energy programs

waste management programs etc

TERI in India: Green

certificate (REC) and

white certificate (PAT)

schemes

9

Government of Jalisco &

Carbon Trust Mexico

To inform the design and track progress of the State of

Jalisco’s Climate Change Action Plan (PEAC)

MAAP Ambassadors &

Government of Mexico

Gold Standard and

UNEP-DTU Partnership

To inform the Partnership for Market Readiness’s (PMR)

capacity building activities for Mexico’s Sustainable Housing

Nationally Appropriate Mitigation Action (NAMA)

To enhance the transparency and comparability of mitigation

outcomes generated from a wide range of climate actions

10

GOLD STANDARD & UNEP-DTUPARTNERSHIP

A

11

• Design and pilot a step-by-step process for independent MAAP assessments to enhance

the transparency and comparability of mitigation outcomes

• Supports Gold Standard and UNEP-DTU Partnership’s capacity building/financing

activities

• The process aims to initially assess mitigation actions based on publicly available

information, as a basis for engaging with counterparts responsible for the actions’

design, implementation and/or financing

12

Initial Screening

• Long list of 50 climate actions

• Actions shortlisted based on selection criteria

Independent Assessment

• Design documents

• Publicly available information

Counterpart Engagement

• Sharing results with counterparts

• In-country assessments

Revised Assessment

• Incorporating new information

• Discuss and refine

13

Name Sector Country

Green Growth

Program

Electricity and heat

production

Jordan

Renewable Energy

Scaling up NAMA

Jamaica

Electricity and heat

production

Jamaica

Wind NAMA Electricity and heat

production

Vietnam

✓ Enhance transparency and

comparability of carbon assets

✓ Facilitate knowledge sharing,

inform financing decision.

✓ Basis for more detailed, in-

country assessments

14

Climate change infrastructure at the program level (Total 42.50/100.00)

Key indicator Max Score Observation

Climate change authorities and their

responsibilities affecting the MA

15 7.5 Unclearly described: MINAE is the ministry in charge of climate change and energy, although, decision

making responsibilities are not clearly defined.

National MA Registry and authorities

towards UNFCCC MA Registry (If

applicable)

30 15 Pre visit: There is no national registry available.

Post visit: A registry is envisioned (Plan de Acción Estrategia Nacional de Cambio Climático)

Registry and double counting 25 5 No national registry available - SINAMECC in design process though.

Transparency on climate financial support

received

30 15 Pre visit: No provisions on climate financing tracking.

Post Visit: Financial supervision – internally, there are very basic project registries and registries of

financial flows, also from international projects controlled by SEPSA but the ongoing project EC-LEDS

shall improve this as an effort to clearly monitor the impact of all associated financing for the NAMA.

Livestock NAMA in Costa Rica

Policy-based NAMA seeking

support for implementation. Aims to

modernize the meat and milk

production through adoption of

new, low-carbon technologies and

processes

1

2

3

15

GOV OF JALISCO & CARBON TRUST

B

16

• Analyze the mitigation impact of the State of Jalisco’s previous Climate Change Action

Plan (PEAC), a cross-sector, state-level plan

• Carbon Trust, at the request of the Government of Jalisco, applied all four modules of

the MAAP to identify areas for improvement and areas of strength to inform the design

of the current PEAC

• Re-apply the MAAP to the draft PEAC design to track progress, finalize the plan

design, and mobilize climate finance for more targeted capacity building

17

60.5

66.5

32.6

62.364.25

72.13

44.00

72.20

0

10

20

30

40

50

60

70

80

Program Design Mitigation action management entity Financial estructure Development benefits

PEAC asessment comparative results

1st 2nd

Δ 6.2% Δ 8.5% Δ 35% Δ 15.9%

18

Module 1: Plan design (64/100)

• Strengths: Objectives and targets (A2), Planning (A3)

• Areas for improvement: Emission reductions from intervention (A5), Monitoring and reporting (A6).

• Special attention to: Methodologies to evaluate uncertainty (A5.6), strengthen the monitoring and

reporting enforcement mechanisms (A6.2)

Module 3: Financial structure (44/100)

• Areas for improvement: Financial coherence (C1), financial stakeholders (C2), monitoring of

financial flows (C3).

• Special attention to: Map the full financial value chain (C1.1), financial risk assessment (C1.2),

diversify financial mechanism/source (C1.4-5)

19

MAAP AMBASSADORS & THE GOV OF MEXICO

C

20

• There are currently 259 NAMAs in 69 countries unevenly spread across regions and

sectors. Only 8.5% of the NAMAs are under implementation

Source: MitigationMomentum Annual Status on NAMAs 2017

Regional overview of NAMAs under development and implementation in 2017

21

• The Partnership for Market Readiness (PMR) is currently supporting the National

Housing Commission’s (CONAVI) implementation of the Sustainable Housing NAMA,

which seeks to improve residential buildings’ overall energy performance

• Apply the MAAP to identify capacity building priorities under PMR

22

• As part of the MAAP Ambassador Program in Latin America, CONAVI invited Ambassadors to

assess Mexico’s Sustainable Housing NAMA

• 11 Ambassadors applied the MAAP Online tool to assess the NAMA using the documents

provided by CONAVI

• Evaluate Program Design (Module 1) and Management Entity (Module 2)

• Use the average scores to inform PMR’s capacity building support

Program Design

Definition & Scope

Objectives & Targets

Planning

Documents, document control and records

Emissions reductions

Monitoring and reporting

Management Entity

Management Framework

Financial and Investment

Programs management

Infrastructure at the program level

23

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

MAX_Score

M. Moras

A. Suárez

F. Fuentes

M. Mejía

M. Zaballa

KI Average

Module Score

Par

tici

pan

ts

Module 1: Program Design (58/100)

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

MAX Score

M. Moras

A. Suárez

F. Fuentes

M. Mejía

M. Zaballa

KI Average

Module Score

Par

tici

pan

ts

Module 2: Management Entity (61/100)

Module 1: Program Design (Avg. Score 57.76 ± 8.7)

Strengths: Definition & Scope (A1), Objectives &

Targets (A2)

Areas for improvement: Document control & records

(A4), and MR (A6)

Special attention to:

• Risk analysis (A3.5)

• Documented procedure for management (A4.1);

• Systematic evaluation of uncertainty levels in GHG

estimations (A5.6)

• Public access to data source and processes,

strengthen mechanism for periodic MR (A6.4)

24

Module 2: Management Entity (Avg Score 60.62 ±

9.1)

Strengths: Management Framework (B1) & Program

Management (B3)

Areas for improvement: Infrastructure at Program

Level (B4)

Special attention to:

• Improve management framework for program

implementation (B1.5)

• Methodologies for monitoring/reporting financial

flows (B2.1)

• Registry to avoid double counting of emission

reductions (B4.3)

25

• Objective: MAAP seeks to provide a standardized yet flexible framework to assess and compare

the performance and risk of a wide range of climate actions from different sectors and countries

• Approach: Self-assessment, independent/in-country assessments

• Users: Governments, consultants, project developers, financiers, MDBs, carbon market regulators

• Online functionalities: Store/share/publish results and underlying data/documents, facilitate

visualization

• Guidance and support:

• How-to video and webinars

• Help text and guidance document

• FAQ

• Regional MAAP Ambassador Program

26

Rachel Mok, Analyst, Carbon Markets & Innovate Practicee: rmok@worldbank.org

To access the MAAP online interface, go to: https://maap.worldbank.org/#/homepage

27

ANNEX

28

CONNECTIVITY AND GLOBAL TRANSFER

Enabling cooperation

of all types of climate

actions, including

carbon pricing

mechanisms, through

internationally

connected climate and

carbon markets

PROMOTING THE CASE AND EVIDENCE BASE FOR CARBON PRICING AND MARKETS

e.g., Carbon Pricing Leadership Coalition; State and Trends of Carbon Pricing reports

IMPLEMENTATION AND SCALE-UP

Enabling scale-up

of climate actions such

as carbon pricing

mechanisms

Innovating and

building readiness for

climate action,

including carbon

pricing instruments

PLANNING, DESIGN AND PILOTS

29

CERs from

CDM

VERs from

voluntary

schemes

Mitigation

actions

SCALED APPROACH

• Allow a range of possible outcomes

• Risk profile

• Enhanced comparability of carbon assets

• Benchmarking

• Assess development benefits in addition to

environmental benefits

• Users can emphasize modules based on their

priorities

YES/NO OUTCOME on whether the

project will potentially achieve its

envisaged emissions reduction targets

or the actual reported emissions

reductionsTradable units

from ETSs

VALIDATION AND VERIFICATION

MAAP ASSESSMENT

30

User-friendly platform to manage

results and store related documents Access to datasets generated

by partners worldwide

Visualization tools for

comparison and benchmarking

How-to video, interactive guidelines

and helpdesk

Centralize and secure platform to

quickly and reliably run search queries

Moving forward:

Opportunities for MAAP in Asia

Aryanie Amellina

Analyst, Climate and Energy Area, IGES

IGES activities on the MAAP

MAAP application by Mongolian

and Vietnamese governments

Outreach to Japanese companies

(consultants and project

developers)

Assessed JCM projects:

✓ Project strength

✓ Areas for improvement

✓ Contribution to sustainable

development

✓ Interest from carbon market

consultants to use and

promote the MAAP tools

32

Moving forward: Opportunities for MAAP in Asia - Aryanie Amellina, Analyst, Climate and Energy Area, IGES

Contribution to SDGs Financial flow andmanagement

Capacity and management systems to implement actions

MAAP can enhance planning and transparency

of climate actions and climate finance

Mitigation Action

Program

Management Entity

Development Benefits

Financial Structure

Individual modulecan be complementary for project

self-evaluation, development, and

verification under carbon market

programs

Whole module can be a tool for benchmarking,

prioritization, standard for new carbon

markets, finance, certification and

endorsement programs, support non-

Parties under Global Climate Actions.33

Program and project design

Moving forward: Opportunities for MAAP in Asia - Aryanie Amellina, Analyst, Climate and Energy Area, IGES

Way Forward

• Use as assessment standard/criteria for

disbursing climate finance

Project financer/banks

• Can promote the tool through their work

• MAAP Ambassador Program

Carbon market consultants

• Fill in the gaps in capacity development needs

for city/province, complement MRV systems, link

with SDGs

• Complement framework of existing schemes

Governments

34

Moving forward: Opportunities for MAAP in Asia - Aryanie Amellina, Analyst, Climate and Energy Area, IGES