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Development of a Pipeline Programme and Investment Strategy to Access the Green Climate Fund



LTS is supporting the Government of Ethiopia to develop a pipeline programme and investment strategy focused on the water sector to access funds from the GCF. Working closely with both Ethiopia's Ministry of Finance and Economic Development (MOFED) and Ministry of Environment and Forests (MEF) who manage the Climate Resilient Green Economy (CRGE) Financing Facility, LTS designed an intensive programme of support for the Ministry of Water, Irrigation and Energy (MoWIE) and to generate an updated project preparation manual for all sectors. Expert advice was also provided to the CRGE Facility on possible prioritisation and application-development processes. A deep familiarity with GCF procedures and ongoing board decisions was required.

LTS mobilised a multi-disciplinary team of 10 experts, who worked in close coordination with 7 members of MoWIE, and key members of MEF and MoFED. The proposal has been broken down into 6 components, with responsibility for each given to a component lead from within the MoWIE. This helped build knowledge and capacity within the country for proposal writing, as well as for the sector to develop and maintain a level of ownership over the outputs. Each section has been written in line with the GCF criteria and guidance, and has been supported and developed via a process of consultation and alignment with CRGE priorities.

The proposed GCF programme will begin to implement the climate resilient water strategy by acting as an innovation hub for the strategy; testing a range of new approaches, which together can transform the way water is managed in Ethiopia. A key focus will be on the testing of an integrated, ecosystem-based approach to water management as a basis for building effective adaptation and for delivering a combination of both climate resilient and low carbon benefits. With an initial investment of $40 million (against an overall target of $345 million for implementing the full strategy over the first 5 years), the proposed programme has also been designed to add value through facilitating knowledge and learning, which supports building capacity and expertise within key Ethiopian institutions for future programming.

By the end of the contract (December 2015) LTS will have produced the following: inception report, provided updates to the Ethiopian GCF Development Manual, a GCF full proposal, GCF concept note, training workshop, project prioritisation, theory of change and the relevant CDKN forms and reports. The LTS team worked alongside the Government economist to guide the financial modelling.

Clients:
Climate and Development Knowledge Network

Services:
Climate Change

Geography:
Ethiopia

Date:
2015

Keywords:
Green Climate Fund, Climate Investment