Concept Note Regarding support for the UNEP DTU Partnership 2018-21 Sustainable Energy and Climate 30 January 2018 1. CONTEXT As part of a new sustainable development agenda for the next 15 years, 193 countries adopted in September 2015 17 Sustainable Development Goals (SDGs) to end poverty, protect the planet and ensure prosperity for all. Specific goals have been set on energy and climate, where goal 7 is to ensure access to affordable, reliable, sustainable and modern energy for all and goal 13 is to take urgent action to combat climate change and its impacts. Parties to the U.N. Framework Convention on Climate Change (UNFCCC) reached a landmark agreement in December 2015 in Paris. The reaffirmation of the goal to limit the global temperature increase to well below 2 degrees Celsius, establishing commitment by all parties to make Nationally Determined Contributions (NDCs), and pledges to develop new mechanisms for transparency and emission trading, set the foundation for intensified and concrete country actions. UN Environment is an active player in supporting implementation of the SDGs and the Paris Agreement, working across the fields of science, policy, technology and finance to help countries pursue low-emission development and build their capacity to adapt and become resilient to climate change. UN Environment aims at bringing science to policymakers and plays a leading role in transformative global partnerships, based to a high degree on active engagement with leading research and knowledge institutions around the world. 1.1. Background UNEP DTU Partnership (UDP) was established in 1990 by the Danish Ministry of Foreign Affairs, UN Environment and the Technical University of Denmark (DTU). The partnership comprises two Centres - the Centre on Energy, Climate and Sustainable Development (CECSD) and from 2013 also the Copenhagen Centre on Energy Efficiency (CCEE) - established with Danish funding to support the global Sustainable Energy for All Initiative (SEforALL) to mobilize action in support of SDG7. The Partnership is a UN Environment Collaborating Centre and actively engaged in implementing UN Environment s Climate Change Strategy and Energy Programme, developing and implementing a significant share of UN Environment s Climate Change activities. As part of the Technical University of Denmark, the Partnership carries out research as a foundation for its research-based capacity-building activities. The Partnership is now characterized by having established a unique scientific and operational knowledge base and a global institutional network. UDP employs in total 67 researchers and other professional staff of 26 different nationalities organized in four programmes. UDP has its offices in the UN City Copenhagen. The Technical University of Denmark is the legal entity of UDP, and staff are employed at the university on Danish state employment conditions. The Partnership's Centre on Energy, Climate and Sustainable Development has established a unique position in the technology sphere, having worked with 52 countries on the GEF funded Technology Needs Assessments (TNAs) programmes. UDP is actively engaged with the UNFCCC Technology Mechanism and has been providing technical and analytical support to more than 30 countries in the process of integrating their NDCs into national development processes. UDP has a unique research-based expertise and is one of Europe's leading knowledge institutions on transformational change and value chains for renewable energy in developing countries 1. As the SEforALL Energy Efficiency (EE) Hub, the Copenhagen Centre on Energy Efficiency has established itself as a recognised actor in the international EE implementation landscape. The Centre engages in partnerships with cities and countries examining their current activities and identifying potential high-impact EE opportunities; and providing guidance on best-practice. The Centre works in partnership with private sector entities assisting in the design of 1 UDP underwent an external international research evaluation in 2017 with very positive results, underlining UDP's unique research environment, relevance of research publications and access to valuable data. 1
implementable programmes. Activities include dissemination of success stories and knowledge to ensure impacts and outcomes can be replicated. With a strong focus on in-country implementation the Centre presents a strong complement to other institutions active in political engagement, policy development, and data analysis for global energy efficiency. The Centre works in close collaboration with SEforAll and relevant UN Agencies, development banks, the G20, various city organisations, and the International Energy Agency. 1.2. Policy framework The UNEP DTU Partnership activities address a number of combined key strategic priorities of Denmark and UN Environment. A strategic reference point in Denmark's development policy and humanitarian strategy - "The World 2030" - is to invest in inclusive sustainable growth and development in developing countries. Recognising the significant negative consequences of climate change for living conditions in developing countries, the strategy aims at supporting countries' knowledge base regarding climate change and their ability to integrate climate into planning at all levels. Denmark will support developing countries in implementing national adaptation and mitigation plans in the context of the Nationally Determined Contributions and the Paris Agreement. The strategy has a strong focus on the UN Sustainable Development Goals, where goal 7 and 13 are amongst the five Danish priority SDGs. Involvement of and contributions from the private sector are seen as a key driving force for achieving the SDG targets, along with development of market solutions and access to global value chains. Denmark has a strategic aim to bring Danish knowledge and solutions into play, including university and research institutions. The UN Environment Medium Term Strategy (MTS) 2018-2021 has the overall vision that "by 2030 countries are more resilient to the adverse impacts of climate change and greenhouse gas emissions are significantly reduced". The MTS underlines governments' need to adopt strategies to reduce their emissions and increase their investments in renewable energy and energy efficiency. Based on the UNFCCC decisions including the Paris Agreement, the UN Environment MTS will support the achievement of the SDGs 7, 13 and 15 (biodiversity). UN Environment will work in partnership to achieve these goals and will strengthen and expand public & private partnerships, continue to engage with non-state actors and promote deployment and transfer of technology. 1.3. Strategic partnerships A vital part of UDP's approach is to engage with global and regional strategic partners. UN Environment is naturally the main strategic partner including its six regional offices, and UDP is currently engaged in collaboration with all divisions and most regional offices. In the context of SDG7, SEforALL is the key strategic partner for the Copenhagen Centre on Energy Efficiency. As the SEforALL EE Hub, the Centre is working in close coordination with SEforALL. Strategic partnerships at the global level include the UNFCCC Secretariat where a MoU was signed in 2016 on collaboration on enhanced implementation of the results of Technology Needs Assessments. Additionally, UDP also has a long-term collaboration with the Secretariat on the two, yearly UN Environment Gap reports. UDP's Copenhagen Centre on Energy Efficiency is also working closely with the International Energy Agency. Over the years, UDP has developed close working relationships with United Nations Office for Project Services (UNOPS), the International Renewable Energy Agency (IRENA), the World Bank and the three regional development banks plus more recently with city organisations like the International Council for Local Environmental Initiatives (ICLEI) and C40. In the recent years, engagement has expanded further to partnerships with private organisations and foundations such as the Childrens Investments Fund Foundation(CIFF), Climate Works Foundations, the Danfoss Family Foundation and discussions are on-going with the Novo Foundation. Private companies such as Vestas and Danfoss are current project partners, as is the Danish Energy Agency. In addition to these more strategic partnerships, UDP is regularly partnering with national and regional institutions, including universities and other knowledge institutions. These partners typically act as local project execution partners, where UDP over 20 years has built a unique network of trusted partnerships, as regional support organisations, or as collaborators on knowledge generation and research at the global level, such as the World Resources Institute, Verified Carbon Standard, TERI, University of Cape Town and ECN among others. 1.4. Considerations of Danish Interests
Through the Partnership, Denmark is addressing Danish strategic development and humanitarian priorities, and ensuring that Danish knowledge and capacity contribute to the achievement of global climate and sustainable development goals. Danish industries are recognised leaders in 'green' technologies, such as wind turbines, energy efficiency, and biotechnology, as well as water, sanitation, waste management, and related engineering and planning competences. It is a vital Danish interest that the world market for such technologies and competences is expanded. The promotion of the international climate change agenda through UNFCCC and the vast activities of UN Environment/UDP in supporting developing countries on Technology Action and NDC Planning is indirectly enabling future export of green technologies and solutions from Denmark and other countries. The knowledge, networks and solutions provided by UDP are of special interest to many international companies as well as smaller and mediumsized private-sector firms, including in Denmark where many do not have the knowledge or ability to take the risks required to enter new markets in developing countries. Utilizing the knowledge that UDP is making internationally available, opens windows of opportunity for companies to consider new markets within energy and climate change or strengthen efforts in existing markets. UDP's network in Denmark includes entities such as City of Green, the Municipality of Copenhagen, Copenhagen and Aalborg University and a number of private companies within climate and energy. 1.5. Lessons learnt from the previous project period Within the last years, UNEP DTU Partnership has increasingly engaged with private sector entities, and it is evident that there is potential for additional, targeted engagement. The possibilities of drawing upon UDP's vast knowledge base and international partner network can contribute to removal of exiting barriers for private sector companies and provide opportunities for enhanced marked based solutions for technology transfer and implementation - including creation of enabling environments in which private climate investments and local engagements in value chains will thrive. The planned activities have therefore a deliberate focus on bringing UDP's knowledge base into play in further engagements and partnerships with the private sector. The recent Danida review concluded that UDP is producing valuable outputs appreciated by partners. Although UDP has a state of the art outcome monitoring system, it is often difficult to measure specific results or to assess quantitatively what share of a result can be appropriated to UDP activity. The current proposal will have an amplified focus on monitoring and reporting of results. This is elaborated further in section 3.3. Complex projects implemented by UDP and financed by a range of international donors are often targeting numerous countries based on their stated interest and the donor request. Although these projects have delivered tangible results and ensured an important basis for countries planning, participation, and commitments in international climate negotiations processes, the tangible outcomes on the ground have been affected by the limited resources available. UDP receives 80% of its resources from international, government and private donors and the choice and number of countries in project activities is often a boundary condition for UDP operations. However, the core 20% of the total funding provided by Danida 2, can be targeted to deliver more direct transformative effects for later scaling up, by focusing efforts on fewer countries where UDP can add value in collaboration with strategic partners. This concept note reflects this targeting approach. In line with the review, the concept note also includes an enhanced focus on efficient outreach and uptake of knowledge outputs. To this end, UDP is developing a communication strategy to guide expansion of this activity and has already recruited additional staff to ensure fast action. 2. PRESENTATION OF THE PROJECT The overall objective of the project is the achievement of the combined Danish and UN Environment priorities related to SDG 7 - access to affordable, reliable, sustainable and modern energy for all - and SDG 13 - urgent action 2 In 2017 the Danida core funding for CECSD and CCEE represented 18,7 million DKK of a total UDP turnover of 103,6 million DKK, i.e. 18 Pct. The core funding was thus geared with a factor five and is instrumental in obtaining the remaining 82% funding, creating the basis for new project activities, methodology development and project proposal preparation in collaboration with UN Environment. 3
to combat climate change and its impacts. As mentioned, focus is on interventions in few priority countries for added value, concrete outcomes, and later scaling up. Reflecting the SDG 7 and 13 objectives the focus areas for the Centre on Energy, Climate and Sustainable Development are country support to NDC implementation including private-sector engagement, transparency and local access to value chains. Further, the activities will also include support to project preparation, emerging challenges for UN Environment and outreach. It can be noted that the Danish funding is normally geared with a factor three to five over the project period. The Copenhagen Centre on Energy Efficiency will continue supporting UNEP and SEforAll in their SDG 7 efforts addressing existing information and capacity gaps through a range of interventions aimed at increasing energy efficiency capacity and creating enabling environments. 2.2. Objectives and outcomes Main outcomes and description of activities are presented below. Overall Theory of Change for both centres can be found in Annex 1. 3 2.2.1. Outcomes for Centre on Energy, Climate and Sustainable Development Outcome 1: Increased private sector investments in climate technologies in developing countries based on NDCs and TNAs Technology Needs Assessments (TNAs) are key elements in implementing NDCs 4, that can facilitate transformational change to more climate-resilient and low-carbon development. Fully developed NDCs and TNAs are catalogues of opportunity for potential private-sector investments. In close collaboration with 2-3 selected international companies, partners in Uganda, Kenya, Ghana and Tanzania, the Danish Trade Council, and the Investment Fund for Developing Countries; UDP will analyse TNAs and NDCs to facilitate private-sector investment planning, and examine needs for enabling frameworks, barrier removal, etc.; 2-3 projects with local partners in each country will be developed, reflecting requirements for attracting private-sector investment. Based on the initial analysis, UDP will develop a virtual technology engagement platform to match countries, technology needs, best practices, projects and private technology providers. The platform will build on existing technology websites 5 and target private investors needs, with a global overview of developing countries climate technology needs, a global technology project bazar, overview of technology providers/international companies, sharing of technology-transfer information, and replication experience through country technology briefs and best practice case studies. UDP will initiate matchmaking and mentoring of selected country projects and international companies. UDP has already contacted national and international entities, who have shown interest in involvement. 6 Outcome 2: Increased local access to and private local production in clean energy value chains in Africa Starting with countries NDCs and TNAs, this activity aims at reformed enabling frameworks for specific technologies, increasing the share of the market value chain in the local economy. Partner countries will be Kenya and Uganda, where UDP has deep knowledge, experience and ongoing activities, increasing the likelihood of success. Experience from these two countries will inform scaling up to other countries and technologies. For each country, the activity will carry out an in-depth and action-oriented assessment of value chains and business environment for 1-2 selected technologies, identifying specific opportunities for local market actors (including investors) to participate in global value chains, to secure a greater national share of the value chain, to attract new investment, and to create local jobs. Relevant local actors will identify technology and market opportunities to strengthen existing value chains and to better equip service institutions supporting local industrial development, e.g. finance and consultancy companies. The capacity of future market actors will be strengthened by working with universities, business and technical schools to build local technical capacity. Based on this, UDP will develop a 'tool box' for comprehensive analysis of value-chain integration. The activity is aligned with ongoing projects in the region, 3 On request, developed foundations for the planned activities, including more detailed descriptions and a thorough theory of change reasoning, can be obtained. 4 Decision 15/CP.22 5 UDP TNA website www.tech-action.org and the UNFCCC technology website http://unfccc.int/ttclear/ 6 UNFCCC Secretariat, International Institute for Development Studies, Climate Technology Centre and Network, the German CTCN Nationally Designated Entity, Korea Science and Technology Policy Research Institute, the NDC Partnership, the Danish Trade Council, Kamstrup A/S, the Confederation of Danish Industry, and the Investment Fund for Developing Countries.
e.g. the Kenya/World Bank Off-Grid Solar Access Project (KOSAP) on the development of solar mini-grids, and collaboration with the Ministry of Energy and Mineral Development (MEMD) in Uganda. Outcome 3: Sustainable adaptation and mitigation business models for small enterprises Building on experience from the ADMIRE project, this activity identifies, pilots and provides strategic plans to scale up financially sustainable low-carbon and climate-resilient private business models in: (i) sustainable and climate compatible practice of smallholder coffee farmers in the Trifinio region in Central America; and (ii) business continuity of SMEs for selected industries in urban areas of Sri Lanka and Bangladesh. For the coffee farmer activity, international partners include Hanns R. Neumann Stiftung and International Coffee Partners (ICP). Both have strong networks and partnerships with farmer organizations, roasting companies, business councils, and regional coffee organizations. Strategic partners for the SME urban industry sub-activity include the Asian Disaster Preparedness Centre (ADPC) and the International Centre for Climate Change and Development (ICCCAD), both with extensive networks and experience in the region. Building on these partnerships, both activities will first identify and engage local stakeholders including farmer and industry associations, local and national governments, and financial institutions. Further developments - including strategic plans for taking the business models to scale - will be co-designed by all key stakeholders to ensure relevance and stakeholder commitment. Decision-support tools will be developed based on in-depth analysis of the business case for the adaptation and mitigation investments. Training in the use of these tools will be provided. Specialized financial products for smallholder coffee farmers and SME industries will be developed, (e.g. access to finance/bank accounts/formalization of the small enterprise sector, debt, and insurance instruments, and bundling of extension services with financial products to ensure their commercialization). Local and national governments will be engaged to ensure awareness and to build public-private partnerships to ensure impact and facilitate scaling up. The activity has immediate potential for replication and scaling up through UDP s strong networks and partnerships. Outcome 4: Increased transparency and documentation of private sector contributions to NDCs The Paris Agreement includes an enhanced transparency framework for action and support. Support for building transparency in developing countries focusses on the public sector. Private sector and non-state actions are less well integrated and aligned in emerging government transparency systems, though a few early movers have developed platforms and methodologies for transparency, in parallel with those developed in the public sector. This activity supports developing countries to increase their efforts and level of NDC ambition through enhanced transparency, catalysing private sector and non-state policies and actions, providing evidence of the private sector s role in NDCs, and showing their contributions to climate action and climate related SDGs. The activity will be established in partnership with private sector actors and initiatives in the focus countries using their platforms for engagement, registering actions, visibility, and dialogue for scale up. It will analyse and document case studies of success and transformative actions by emerging/selected (non-traditional) private sector segments. Activities will include documenting current experience by private sector entities, working with them to analyse and identify GHG emission reduction potentials and actions. A final output will be a Reporting and Registry Framework for the private sector, integrated in UDP's ongoing NDC transparency work, and in collaboration with current partners such as WRI and the NDC Partnership. Initial focus countries will be Peru and Columbia with the ambition to expand in Southern Africa, where market-based economies and innovative private sectors exist. Outcome 5: Countries take actions based on the UNEP adaptation and mitigation gap reports. Since 2010, UN Environment has undertaken annual scientific assessments of the emissions gap the gap between countries pledges on GHG emission reductions and the reductions required to keep global average temperature increase well below 2 C or 1.5 C above pre-industrial levels. Since 2014, UN Environment has also undertaken science-based assessments of the adaptation gap the gap between actual levels of adaptation action and the levels required to achieve a given societal goal. Both report series are produced in direct response to requests for independent assessments to provide scientifically credible and policy relevant information to parties to inform discussions under the annual Conferences of the Parties to the UNFCCC. Important near-term milestones include supporting the Talanoa dialogue in 2018 to take stock of initial progress toward the global goals in the Paris Agreement and informing the new or updated NDCs expected by 2020. 5
UDP organises, manages and coordinates report production, framing and developing report content, contributing as lead and contributing authors, acting as science editors, and drafting executive summaries, and plays a central role in outreach and communication of report findings. Outcome 6: Support to emerging challenges for UNEP and countries - including project proposals leveraging external funding of a magnitude of 250 million DKK. Recognizing the importance of rapid response and flexibility to support emerging priorities both of individual countries and of UN Environmet, for example in the face of new challenges evolving from the climate change agenda over the next four years, part of the UDP core funding will be allocated to this task. Previous years experience has shown both need and positive effect on UDP s overall mission of this rapid and flexible response capability.the use of these resources will be demand-driven within the broader framework of the Climate Change pillar of UN Environment s Programme of Work. Since the focus is on emerging and to date unknown challenges, there will be no attempt to predict the detailed actions, but they will be planned and prioritized in close consultation with UN Environment and in line with the governance structure of the Centre. A couple of immediate examples are projects under development, expanding the engagement in providing support to countries on national transparency priorities and further expansion of the broader engagement in supporting selected countries on the implementation of their NDCs. A significant part of the resources is used in collaboration with national counterparts and UN Environment to identify and develop new activities based on dialogues in the countries. This effort has traditionally leveraged additional international funding in the order of 250 million DKK over the project period to support UN Environment s Programme of Work, which is also the target for 2018-21. Outcome 7: Enhanced government and private sector uptake of UDP knowledge products In line with the recommendations from the recent Danida review, UDP has planned a number of strategic initiatives to brand and position the Partnership and ensure enhanced uptake of UDP knowledge products. Initiatives are focused on three selected target groups - governments/cities, private sector and academia. Needs assessments and analyses of current uptake for each target group are carried out. Based on this, a new UDP web-platform will be launched including tailor made functions for each target group. UDP outreach products will be targeted accordingly to meet identified needs. The target groups will further be approached via UDP's SoMe platforms and through quarterly newsletters. Strategic and technical knowledge-management events with current and potential partners and key stakeholders will be arranged. 2.2.4 Outcomes for Copenhagen Centre on Energy Efficiency Outcome 1: Activating the Knowledge base leading to improved enabling environments for energy efficiency Energy efficiency opportunities and actions exist in all economic sectors, often involving different actors and using many different technologies. Knowledge and information on energy efficiency solutions and actions is often scattered across different domains and different disciplines. Misinformation and lack of actionable information is a key barrier to energy efficiency actions. As the SEforALL Hub for global energy efficiency, the Centre will collect and disseminate the latest knowledge and best information to support decision and policy making. The Centre will assess knowledge and information in academic and technical publications and process it into operable energy efficiency solutions. Through its Knowledge Management System 7, the Centre will continually collect and disseminate energy efficiency knowledge and information to practitioners, stakeholders and decision makers in infographics and nonacademic language. The Copenhagen Centre is well placed to both draw upon and contribute to the data and information created by partner organisations and other stakeholders. Some countries and local governments have implemented very successful policies and programmes that can inspire other countries and local governments, and by replication, help improve the effectiveness of energy efficiency interventions and actions. Study and dissemination of best practices and replicable business models provide a direct link to partner- and private-sector engagement, reinforce efforts to support the development of bankable projects, and provide evidence to anchor communications campaigns. The series of publications, established in 2017, will be continued, with focus either on selected cities or countries. 7 The System was established in 2016. In the past two years, 31 webinars with 4,600 attendees from the international energy efficiency community have been run by the Centre.
The Centre is also responsible for coordinating and engaging the SEforALL Energy Efficiency Accelerator Platform 8 pursuing identified energy efficiency projects and building a coalition of leading service and technology providers around projects, assisting them to scale-up, and managing and improving synergies between the network partners. The Centre will carry out research based on the needs and experience of the Accelerators' activities, providing rationale for further enhancing the support and interventions from the Accelerators. Outcome 2: Public-Private EE Implementation Projects are developed In close coordination with SEforALL, assistance is provided to countries, cities, and districts to identify opportunities for investment-grade project concepts tailored to the local context, aimed at replication in other jurisdictions with similar conditions 9. In consultation with the local authority (country, city, or district), the Centre will facilitate a process of assessing energy efficiency opportunities and identifying the priority energy efficiency actions to be conducted. This builds on thorough stakeholder consultations, collection and analysis of the available data, and crystallising the results of the assessment in a brief publication, taking into account the relevant climate and/or energy efficiency commitments in the jurisdiction. The value added of this activity comprises 1) involving local authorities and experts to ensure applicability to local realities; 2) ensuring the activity has potential to be financed and implemented in the local context; 3) providing opportunities for replication and scaling up. Based on the identified energy-efficiency opportunities, the Centre will assist jurisdictions to develop project concepts for investment and implementation. With relevant local experts, the Centre will elaborate suggestions for potential technical solutions and financial models to implement selected activities. A framework for development of projects will be designed across selected thematic areas linked to the Centre s and its partners technical expertise. For each of these areas the Centre will establish processes to collect and analyse data, identify technical solutions and potential financial models, establish project structure, and present the findings to potential investors. Further, implementation is facilitated through advisory and communication activities while a replication and scaling up strategy is established. Outcome 3: EE success examples are replicated and communicated It is essential for achieving the SEforALL goals that good EE examples are promoted. The Centre will continue to be a provider of best practice information and a point of contact for SEforALL and the international community on what is working well, and the challenges in achieving higher energy productivity. The Centre will continue to strengthen energy-efficiency messages through a range of channels to specific audiences, in particular public-sector decision makers and private-sector energy-efficiency practitioners. Core activities include collating and disseminating information on the benefits of energy efficiency, examples of enabling solutions, and creating links with broader development goals. The Centre is developing a model to structure lessons from individual engagements, to speed up replication between like-minded jurisdictions. This will involve building a common structure for the most widely applicable energyefficiency projects, e.g. efficient street lighting, efficient multi-family buildings and efficient city transport systems. These direct engagement projects will form templates for replication and allow the Centre to maintain contact with practical implementation considerations on the ground. By communicating the criteria for these projects, allowing governments to pre-qualify as interested in such project deployment, the Centre can bundle and aggregate project work that will see similar project assistance rendered to many jurisdictions simultaneously. Work is progressing rapidly in countries currently engaged by the Centre. Cities and municipalities gather significant opportunities for energy efficiency deployment from private and public perspectives; from multi-family buildings to local public infrastructures, there is a huge potential for energy 8 The Accelerator Platform of SEforALL is a key support network on energy efficiency support to countries and cities. Accelerators may focus on new business models, specific policy questions, market segment, population or new issues where the attention has been lacking. SEforALL has a number of thematic accelerators alongside its five energy-efficiency focused Accelerators, that cover Buildings; District Energy; Lighting, Appliances and Equipment; Industry; and Vehicle Fuel Efficiency. 9 The Centre will give priority to government jurisdictions in a limited number of identified targeted countries The selection of the countries takes into account: (1) current engagements and/or on-going work of the Centre; (2) Danish development priorities; (3) high-impact and fast-moving countries as identified by SEforALL and geographical diversity across the four major developing world regions. Likely countries of direct engagement and/or replication activities by the Centre include: Georgia, Ukraine, Belarus, Armenia, Uzbekistan, Thailand, Vietnam, China, India, Indonesia, Philippines, Argentina, Chile, Brazil, Mexico, Colombia, Dominican Republic, Kenya, Tanzania, South Africa, Malawi, Ethiopia. 7
efficiency improvement. Therefore, gathering similar projects according to the same data collection principles and methodological analysis may bring forward prospects for tapping energy-efficiency potential at sub-national level. While other international organisations focus their activity on identifying and supporting the design and implementation of energy-efficiency policies, the Centre focuses on bottom-up activities, in jurisdictions of all sizes. 2.3. Theory of change A theory of change for both the Centre on Energy, Climate and Sustainable Development the Copenhagen Centre on Energy Efficiency can be found in annex 1. 2.4. Monitoring and reporting The project will be monitored through UDP's Outcome Monitoring System (OMS). Based on an Outcome Mapping 10 analysis and the detailed Theory of Change for each intervention, the system will regularly follow progress on expected outcomes. Compared with more aggregated approaches, where the classical contribution-attribution problem many times makes outcome documentation a bureaucratic drill for the involved staff, Outcome Mapping provides a more meaningful, realistic, and credible measure of the actual change caused by an intervention by focusing on identified agents of change (boundary partners) and their tangible change in association with the intervention. A preliminary results framework has already been developed for expected outputs. A detailed Outcome Mapping analyses will be carried out including Specific, Measurable, Assignable, Realistic, and Time-related outcomes assigned to each intervention. Progress will be followed in the UDP OMS and reported to the Management and Policy Committee on a yearly basis, cf. the management setup below. 3. MANAGEMENT SETUP A Management and Policy Committee (MPC), consisting of the three funding partners, has the overall responsibility for policy and programme matters, work plans, status reports, results and performance. The MPC will follow progress and results of this project closely through detailed status reports including Outcome Mapping indicators which will be presented to the Committee yearly. Moreover, the MPC will receive status reports for the collective activities of UDP on a half-yearly basis. Fixed MPC meetings are held biannually and supported by ad hoc meetings called when adequate. The MPC meets separately for the Centre on Energy, Climate and Sustainable and Development and the Copenhagen Centre on Energy Efficiency. The Danish Ministry of Energy, Utilities and Climate is represented in Copenhagen Centre meetings. The core funding for UDP is provided to UN Environment. UDP is reporting on a quarterly basis to UN Environment on financial matters and is supplying UN Environment with half yearly progress reports in accordance with UN rules and procedures. DTU is responsible for the daily management of UDP with a management team consisting of a director, a deputy Director and four heads of programme. The director refers to the director of DTU Management Engineering. UDP is integrated in DTU's administrative and financial systems in accordance with rules and procedures of the Danish state and under audit of the Danish Auditor General. 4. BUDGET For the four year the period 2018 21, a total amount of DKK 38 million funded via the budget line for Water and Energy will be allocated for UDP's Centre on Energy, Climate and Sustainable Development and a total amount of DKK 40 million funded via the Climate Envelope will be allocated for UDP's Copenhagen Centre on Energy Efficiency. Budget details are presented in annex 2. 10 Developed by the International Development Research Centre (IDRC), Canada
Annexes 9
ANNEX 0 Process Action Plan (PAP) for UNEP-DTU Partnership UDP, EE Hub and SEforALL 300118 Time line Programme Documentation Responsible 30 November 2017 Draft concept note Concept note MKL, EFKM, KFU 14 December 2017 TOR for appraisal (desk TOR MKL and field combined) for KFU Draft forwarded to KFU 08.12.17 12 December 2017 Request the programme to MKL be part of the agenda of the programme committee Done 12.12.17 14 December 2017 UDP Management and Policy Committee meeting 4 January 2018 Confirming agenda item for meeting of the programme committee 23 January 2018 Final draft concept note Tentatively MPC VC or face to face in Paris 31 January 2018 Final concept note presented to the Programme Committee Final draft concept note from UDP and EE Hub for MKL. Done UDP to check out meeting options for January MPC video or face-to-face in Paris MKL UDP, EE Hub and SEforALL 3 weeks of public consultations 22 February 2018 Programme Committee Meeting 22 February - 7 March DED programme UDP, EE Hub and document SEforALL 15 March 2018 Appraisal begins KFU 17 April 2018 Request the programme MKL for the agenda of UPR 20 April 2018 Draft appraisal report KFU MKL 23 April 2013 Debriefing by appraisal team 26 April 2018 Final comments to the appraisal report KFU MKL, SEfor ALL, EE Hub and UDP and UNEP 2 May 2018 Final Appraisal report Final Appraisal report KFU 3 May 2018 Summary of Appraisal for MJ 15 May 2018 Final DED programme documents 24 May 2018 Programme Document with appropriation cover sheet forwarded to KFU for UPR Appraisal Report, recommendations summary DEDs for UDP and EE-Hub and SEforALL Programme Document, annexes and Development Engagement Documents MKL and KFU UDP and EE-Hub and SEforALL UDP, EE Hub and MKL
Time line Programme Documentation Responsible 12 th June 2018 Presentation to the UPR MKL After UPR presentation The minister approves the Summary from UPR MKL programme Ultimo July 2018 (25/7) Deadline for appropriation Appropriation note for MKL tentative note (AP) for UPF 1 August 2018 tentative AP for Ministry of Finance ditto MKL 21 August 2018 tentative Deadline for AP for ditto MKL printing to Schultz 23 August 2018 tentative Deadline for AP to the ditto UPF/MKL Finance Committee 31 August 2018 tentative Meeting of the Finance Committee After Minister s approval Signing of legally binding agreements (commitments) with partner(s) Government-to-government agreement(s) and/or other legally binding agreements MKL and UNEP and SEforALL After agreement(s) are signed UNEP process Register commitment in MFA s financial systems within budgeted quarter. 11
Annex 1: Theory of Change Specified ToCs are available for each outcome stream in the above Annex 2: Budget UNEP DTU Partnership 2018-21
UDP - Centre on Energy, Climate and Sustainable Development 2018-21 Component 2018 2019 DKK 2020 2021 Total Outcome 1: Increased private sector investments in climate technologies in developing countries based on NDCs and TNAs 1,426,611 1,426,611 1,426,611 1,426,611 5,706,443 Outcome 2: Increased local access to and private local production in clean energy value chains in Africa 1,372,959 1,372,959 1,372,959 1,372,959 5,491,836 Outcome 3: Replication of successful business models for small adaptation/mitigation enterprises 1,369,650 1,369,650 1,369,650 1,369,650 5,478,598 Outcome 4: Increased transparency and documentation of private sector contributions to NDC's 1,370,169 1,370,169 1,370,169 1,370,169 5,480,676 Outcome 5: Countries takes actions based on the UNEP adaptation and mitigation gap reports. 782,735 782,735 782,735 782,735 3,130,938 Outcome 6: Support to emerging challenges for UNEP and countries - including project proposals leveraging external funding of a magnitude of 250 million DKK 1,885,723 1,885,723 1,885,723 1,885,723 7,542,893 Outcome 7: Enhanced government and private sector uptake of UDP knowledge products 1,000,000 436,205 436,205 436,205 2,308,616 Review CECSD 200,000 200,000 UN Environment programme support cost 7% 665,000 665,000 665,000 665,000 2,660,000 Subtotal UDP - Centre on Energy, Climate and Sustainable Development 2018-21 9,872,846 9,309,051 9,309,051 9,509,051 38,000,000 UDP - Copenhagen Centre on Energy Efficiency 2018-21 Component 2018 2019 2020 2021 Total Outcome 1: Activating the Knowledge base leading to improved enabling environments for energy efficiency 3,512,610 3,268,950 2,841,150 2,597,490 12,220,200 Outcome 2: Public-Private EE Implementation Projects are developed 4,839,720 4,503,060 3,914,370 3,377,710 16,634,860 Outcome 3: EE success examples are replicated and communicated 2,341,740 2,178,990 1,893,480 1,730,730 8,144,940 Review CCEE 200,000 200,000 UN Environment programme support cost 7% 700,000 700,000 700,000 700,000 2,800,000 Subtotal UDP - Copenhagen Centre on Energy Efficiency 2018-21 11,394,070 10,651,000 9,349,000 8,605,930 40,000,000 Grandtotal UNEP-DTU Partnership 2018-21 21,266,916 19,960,051 18,658,051 18,114,981 78,000,000 Detailed budgets are available for each outcome stream 13
Annex 3: Risk matrix RISK MATRIX: SUMMARY Risk Description 1 Private-sector entities do not engage in the projects at the expected level 2 Government entities do not engage in the platform as expected 3 Limited capacity of local partners hinders implementation 4 Financial institutions do not show interest in participating in the initiatives Category Impact Severity Likelihood Risk Management Strategy & Safeguards By When/ Whom? Programmatic Major Unlikely The projects have been designed on the background of many years of UDP experience Ad-hoc involving the private sector, for example the CDM Bazar, ADMIRE. We are therefore confident monitoring/ that a significant number of companies will join the programme. Project Manager Institutional Major Unlikely UDP has engaged with many regional organisations and national government entities on a wide range of projects through its work with CDM, TNAs, NDC support, ICAT, etc. as well as a CTCN consortium partner. The target countries in the projects have been specifically chosen on the basis of previous experience and it is judged that they will be committed to engaging. In the unlikely event of low commitment from a target country, several courses of action will be available: (i) identification of the reasons for non-engagement and taking appropriate measures (ii) targeted consultation with high-ranking authority, (iii) utilising previous contacts at high level in the relevant line ministries and government agencies (iv) selection of alternative country. Ad-hoc monitoring/ Project manager Contextual Minor Unlikely This is a well-known challenge that UDP has dealt with in many projects, such as TNA. The countries have in general been chosen from among the best performers in the various projects that UDP has been engaged in. Nevertheless, capacity gaps can occur and these will be addressed by various means: identifying capacity gaps, providing targeted support and mentoring, guidance material, e-learning, and constant monitoring and follow up to ensure the necessary capacity is achieved and maintained. Contextual Major Likely FIs in developing countries tend to be either conservative in their lending practices, the capital may be scarce and/or the FIs can be small and fragmented. High volume/high impact sectors will therefore be preferred in selecting initiatives for the support, so they are significant at a national scale and warrant interest of FIs. Various financial instruments (e.g. risk sharing) might still be needed initially to stimulate appetite of FIs. Ad-hoc monitoring/ Project manager Ad-hoc monitoring/ Project Manager Countries with stable and mature financial markets will be prioritized during selection process.
RISK MATRIX: SUMMARY (continued) Risk Description 5 Gap reports fail to inform climate change negotiations under the UNFCCC 6 Lack of awareness of and access to the most cost-efficient and up to date technologies due to distance from commercial channels or price restrictions; Category Impact Severity Likelihood Risk Management Strategy & Safeguards Institutional Minor/major Unlikely Together with UN Environment and the UNFCCC, UDP has developed a detailed approach to consultation and engagement of key players in the field that ensure the relevance of the reports' content. The assessment approach and reliance on recognised researchers and experts for report drafting and review furthermore support maintaining the relevance and broad recognition of the reports as authoritative sources of information within their respective topic areas. Following the release and outreach of each report, UDP conducts an assessment of results and outcomes, which can inform any risk mitigation measures, should they become necessary. By When/ Whom? Following report launch and outreach/ Project Manager Programmatic Low Unlikely To ensure sufficient and engaged participation from key actors and stakeholders in the programme), careful attention will be paid to identification and selection of potential change agents, who can play a catalysing role in achieving the main objectives of the project. This will include timely and dedicated preparatory work and efforts aimed at enhancing efficiency during facilitation of stakeholder consultation. Ad-hoc monitoring/ Project manager 7 Reduced size of energy efficiency projects and consequent low level of interest from financial institutions for various reasons. 8 Lack of overall political will, knowledge, proper regulations, secondary legislation or fiscal policies, training structures and curricula, engagement in international best practice networks, and knowledge sharing access on best practices, related to energy efficiency. Contextual Medium-high Unlikely With a basis in previous projects carried out the targeted countries and the acquired knowledge from research activities, Centre staff will ensure that the demand of countries and local project conditions are fully considered in the design and implementation of the project. This will contribute to ensuring the required support, interest and active involvement of decision makers within the countries in the project, which will be achieved by utilising previous contacts at high level in the relevant line ministries and government agencies. Ad-hoc monitoring/ Project manager Institutional Minor Unlikely Local partners will be carefully selected including consideration of demonstrated ability, track record, experience, human resources and availability to carry out the projects in close cooperation with the Centre. The involvement of local partners in the project will include resources dedicated to build capacity in the respective partner organisation in carrying the specific project activities. Engaging with other international organisations and donors will also help to enhance knowledge and motivate political will. Ad-hoc monitoring/ Project manager 15
Annex 4: Preliminary Results Framework UDP - Centre on Energy, Climate and Sustainable Development 2018-21 For tracking of progress, the following quantitative indicators will be considered. Outcomes will be integrated in UDP's outcome tracking system based on an outcome mapping analysis. Outcomes Output indicators Outcome 1: Increased private sector investments in climate technologies in developing countries based on NDCs and TNAs Partners engaged in the four target countries Number of project concepts in the four target countries Functional platform established Numbers of private sector companies using the platform Number technology providers matched with country projects Outcome 2: Increased local access to and private local production in clean energy value chains in Africa Number of value chain actors actively participating Number of policy actors actively participating Number of innovation system actors actively participating Documented network activities by value chain actors Documented initiatives for changes in enabling frameworks Outcome 3: Replication of successful business models for small adaptation/mitigation enterprises Number of industry players engaged Number of business concepts formulated Investment frameworks developed and tested + implementation roadmaps developed M&E frameworks developed Number of projects financed Outcome 4: Increased transparency and documentation of private sector contributions to NDC's Case studies of private sector champions finalised Dissemination activities with partners Establishment of impact assessment Development of capacity building tools Reporting and register framework for Private Sector contributions to NDCs developed Outcome 5: Countries takes actions based on the UNEP adaptation and mitigation gap reports. One Adaptation Gap Report produced yearly One Emissions Gap Report produced yearly Internationals press attention based on UN Environment metrics Outcome 6: Support to emerging challenges for UNEP and countries - including project proposals leveraging external funding of a magnitude of 250 million DKK Support hours delivered to UN Environment No of events at COP Number of of responses to country requests and support hours delivered Amount of USD financing for new UDP/UN Environment projects Outcome 7: Enhanced government and private sector uptake of UDP knowledge products Statistics from UDPs Web and SoMe platforms Annex 5: Preliminary Results Framework UDP - Copenhagen Centre on Energy Efficiency 2018-21 For tracking of progress, the following quantitative indicators will be considered. Outcomes will be integrated in UDP's outcome tracking system based on an outcome mapping analysis.