Due Diligence on a REDD+ Project in Kenya for IFCs Finance for Forestry (F4F) Bond

LTS provided technical support to International Finance Corporation (IFC) Climate and Carbon Finance Unit (GCCCU) in undertaking an evaluation of an existing Voluntary Carbon Standard (VCS) and Climate, Community Biodiversity (CCB) Standard verified REDD+ project in Kenya. The evaluation determined the likely future viability of the project based on a systematic review of its components, including the management system, business, legal, and financial assumptions.

The evaluation included the basis of the project’s financial forecasting; the regulatory environment; existing project conditions; adherence to the Project Design Document (PDD); application of social and environmental management systems; and stakeholder engagement and benefit sharing mechanisms. It also included an assessment (as appropriate) of the effectiveness and impact of sub-projects on both project owners and stakeholders. Additionally, an evaluation of the project’s compliance against IFC Performance Standards (PS) was undertaken, with resulting actions developed to guide the closure of identified gaps.

LTS prioritised two main activities in the evaluation; a desk review and site visits. We undertook an extensive desk review to gain an understanding of the project and determine its compliance with VCS and CCB standards. We also used the desk review to develop a due diligence matrix and checklists of components that have been verified in the field such as application of project administrative, management and governance systems. We then conducted site visits to verify the checklists and evaluate the implementation of the management systems for the REDD+ project through interviews with responsible personnel, reviews of staff trainings, documentation at site level, audit schedules and systems checks.

Contract Award: Due Diligence on a REDD+ Project in Kenya

LTS has been contracted to provide technical support to International Finance Corporation (IFC) Climate and Carbon Finance Unit (GCCCU) in undertaking an evaluation of an existing Voluntary Carbon Standard (VCS) and Climate, Community Biodiversity (CCB) Standard verified REDD+ project in Kenya. The evaluation will determine the likely future viability of the project based on a systematic review of its components, including the management system, business, legal, and financial assumptions.

Development of the National Adaptation Plan

LTS provided technical support to develop Kenya’s National Adaptation Plan (NAP) which highlights Kenya’s adaptation priorities in a format that is easily accessible for reference by county governments, sectoral ministries, private sector and civil society actors and development partners.

Through a participatory process, LTS assisted the Government to formulate the NAP and generate metrics of priority actions, their costs and indicative milestones.

LTS also aligned the NAP with relevant policies, strategies and initiatives at the national and county levels including the National Climate Change Framework, Climate Change Bill 2014, Ending Drought Emergencies Strategy and County Integrated Development Plans.

More information on the project is available in the following publication:
Joto Africa November 2015

Kenya’s National Adaptation Plan 2015-2030 (NAP), finalised by LTS Africa in December 2015, aims “to consolidate the country’s vision on adaptation supported by macro-level adaptation actions that relate with the economic sectors and county level vulnerabilities in order to enhance long term resilience and adaptive capacity.” This is Kenya’s first plan on adaptation, and will help the government move toward Vision 2030 goals by mainstreaming climate change adaptation into planning and action. The NAP will assist national and county governments to implement the National Climate Change Action Plan (NCCAP) by providing guidance on priority actions. The NAP articulates a mainstreaming approach under which adaptation and development goals are complementary.

It is expected that NAP will be used by:

  • National and county government to inform planning and budgeting;
  • Non-state actors, including the private sector, to inform risk planning and business decisions; and
  • Development partners to align funding with Kenya’s adaptation priorities.
  • Civil society to assist in the implementation of prioritised adaptation actions

The NAP describes the national circumstances in Kenya, including current and project climate scenarios that impact decision making. A climate hazard and vulnerability assessment provides information on droughts, flooding and sea level rise. The NAP explores governance structures, including the policy and regulatory framework, institutional arrangements, and a monitoring and reporting framework.

A briefing note on the NAP was presented by the National Climate Change Secretariat during the 21st meeting of Conference of Parties (COP) in Paris in December 2015.