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Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Jordan Final Market Readiness Proposal

PA14 – Lima, Peru April 27, 2016

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 2

Agenda

• 1. MRP ObjecHves and Focus
• 2. Comments/SuggesHons received
• 3. Updates to the draP MRP
• 4. Summary of budget and Hmelines

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 3

MRP ObjecHve and Focus

• Long term aim: scaled-up credi4ng mechanism. The MRP presents the 1st part of

a plan, taking Jordan from a very early stage of market readiness, to this goal.

• Mindful of the PMR priori4es, the focus of the PMR ac4vi4es in the ini4al

implementa4on phase (IP): § development of a robust MRV framework and technical assistance to enhance the capacity and readiness of public and private sector actors for climate financing and market instruments.

• Key ac4vi4es:

Axis A: Develop robust MRV framework, building on exis4ng informa4on Axis B: S4mulate pipeline of GHG mi4ga4on ac4vi4es, through technical assistance and capacity building of the private sector, and project & funding match-making

• Principles:
• Engagement, alignment with similar governmental, private sector and donor

ac4vi4es.

• ‘No-regrets’.

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 4

MRP Revision Process

Timeline of revisions to the draP MRP July-Sept. 2015: DraT MRP was submiUed following 2 rounds of feedback from expert reviewers - Alyssa Gilbert (Grantham, Imperial, UK), Francois Boulanger (NODALIS Conseil, France). October 2015: Submission of the 1st DraT MRP 29th October 2015: At the 13th PA, verbal ques4ons received from these par4es:

• EBRD , Turkey, Japan, UK, Spain and EC

Jan 2016: Addi4onal wriUen ques4ons and comments from the UK. Jan – April 2016: Review and update of the draT MRP by the core PMR team, taking into considera4on the comments and ques4ons received, in order to submit the final MRP for submission at the 14th PA. April 2016: Submission of the final MRP

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 5

Comments/SuggesHons received at the 13th PA

The alignment with PMR prioriHes

• Historically, PMR supports achieving GHG mi4ga4on targets through:
• building capacity and infrastructure for robust MRVs;
• designing locally relevant MBIs;
• and suppor4ng implementa4on.
• Despite strong MBI support, significant capacity development and robust

ins4tu4onal (MRV) framework are pre-requisites for further iden4fying and designing an MBI.

• Ini4al implementa4on phase focuses on extensive Technical Assistance (TA) and

Capacity Building (CB), in public and private sector, in order to develop a mulH- Her MRV framework, and support crea4on of a pipeline of mi4ga4on ac4vi4es.

• Extensive engagement with the public and private sector stakeholders will

enable the iden4fica4on of poten4al instruments, crea4ng incen4ves for greater engagement, iden4fying domes4c sources of demand.

• Given Jordan’s socio-economic condi4ons and na4onal priori4es, this approach

is deemed to provide the appropriate pathway to achieving the PMR priority.

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 6

Comments/SuggesHons received at the 13th PA

Interplay between PMR funding and other funding available for GCF readiness; NAMAs, etc.

• CCD is focal point of CC ac4vi4es, NDA for GCF; CCD proac4vely builds

complementarity between the various funding sources

• PMR Project will improve coordina4on of donor ac4vi4es on CC:
• MRV tracking system
• Donor commiUee as part of the governance structure – provide inputs

and iden4fy synergies Changes to the DraP MRP: donor commiUee has been added to the governance structure of the MRP ac4vi4es

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 7

Comments/SuggesHons received at the 13th PA

Alignment between INDC development and the PMR acHviHes, especially regarding the top-down MRV

• MRP was developed in parallel with INDC, led by the CCD, and involving

many of same stakeholders.

• Core MRP ac4vi4es - MRV frameworks and public and private sector

engagement – will enable the tracking and development of INDC mi4ga4on ac4vi4es.

• The MRV framework will operate at na4onal, sectoral, agency/fund and

project levels, enabling top-down and boUom-up MRV. This will cover the tracking of focal NDC mi4ga4on ac4vi4es.

• The CCD as focal point for PMR and UNFCCC. As NDC tracking requirements

becomes clearer, it is intended that the PMR project be adapted accordingly.

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 8

Comments/SuggesHons received at the 13th PA

Strengthening the emphasis on private sector A strong private sector, capable of developing, financing, and implemen4ng mi4ga4on projects is fundamental to achievement of mi4ga4on objec4ves in Jordan. The PMR ac4vi4es seek to address key challenges facing private sector (financiers and project developers), through:

• 1. Climate Finance Capacity Building Programme and Partnership
• 2. Technical assistance on MRV
• 3. Analy4cal studies – MBIs to incen4vise RE and EE

Close collabora4on with IFC and other development partners (USAID, AFD etc.) to carry these out Changes to the DraP MRP:

• Re-draTing and clarifica4on sec4on 4.1 and introduc4on - Private Sector Challenges
• Ac4vity B1 (Forum for Low carbon investment), replaced with
• B2. Climate Finance Capacity building programme
• B3. Partnership for Climate Ac4on
• New ac4vity: B7. Study of domes4c market opportuni4es in Jordan

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 9

Comments/SuggesHons received at the 13th PA

Funding for subsequent implementaHon phases

Jordan’s MRP envisages ac4vi4es beyond the PMR implementa4on phase. The first priority is the successful implementa4on of ac4vi4es of the MRP. CC will remain high priority areas for Jordan, as per Vision 2025 and Green Economy strategy In addi4on, the following ac4ons have been taken, to ensure sustainability:

• A new ac4vity has been added to support the PMU in fundraising for future implementa4on phases
• Focus on capacity building and las4ng frameworks – in MRV and private sector engagement
• Regula4ng MRV frameworks
• Innova4ve business models for private sector engagement ac4vi4es

Changes to the DraP MRP:

• Introductory sec4on added: “Ensuring the sustainability of PMR ac4vi4es going forwards”
• Ac4vity B4 reviewed and renamed to “Upstream policy analysis for coherence”, including a broader

review of coherence/contradic4ons of key policy and regula4on.

• Ac4vity added, Axis A: “Need Assessment and Recommenda4on for legisla4ve amendment to support

MRV framework”.

• Development of business models added to new ac4vi4es B2. Climate Finance Capacity building

programme and B3. Partnership for Climate Ac4on

• Ac4vity added for the PMU: Support for financings future implementa4on phases.

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 10

Comments/SuggesHons received at the 13th PA

Level of commitment for the MRP The MRP has high-level commitment.

• Endorsed and approved by Minister of the Environment, H.E. Dr. Taher R.

Shakhashir, who sits on the Jordanian Council of Ministers.

• Facilitated by the Secretary General of the MoEnv, coordinator of the NCCC
• MRP developed by a mul4-agency Technical Working group, including

MoEnv, MEMR, MoWI, MoPIC, MOF, GAM

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 11

Comments/SuggesHons received at the 13th PA

Context for domesHc demand for a crediHng mechanism

• At the interna4onal level, prospects for demand from carbon markets and

RBF mechanism have improved, but are not concrete

• Large number of donors in Jordan are a poten4al source of demand
• Na4onally, the market is quite restricted due to low level of emissions.

New ac4vity in MRP: analy4cal work to iden4fy poten4al sources of domes4c demand and its characteris4cs, in close consulta4on with the private sector stakeholders. Changes to the DraP MRP: Ac4vity added, B7. Study of domes4c market opportuni4es in Jordan

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 12

Updates to the draP MRP

Axis A Supplementary Ac4vi4es

LegislaHve support to MRV framework Readiness in Non-Target Sectors for MRV integraHon DescripHon of acHviHes Need Assessment and Recommenda4on for legisla4ve amendment to support MRV framework Study on the readiness of non- target sectors (Transport, Agriculture, Waste) for MRV integra4on (in exis4ng or new Info Systems) Outputs During PMR implementaHon phase

• Assessment and

recommenda4on of possible legisla4ve amendments

• Understanding of readiness

and MRV in non-target sectors Outputs subsequent phases

• Support to CCD

implemen4ng legisla4ve amendments

• Developing a road map for

inclusion of non-target sectors

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 13

Updates to the draP MRP

AcHvity B2 Low Carbon Investment Forum, further elaborated and split. IdenHficaHon of InnovaHve business models to ensure sustainability

• B2. Climate Finance Capacity Building

Programme

• B3. Partnership for Climate AcHon

DescripHon

• f acHviHes
• Led by private sector; coordinated by

CCD

• Engagement of project developers and

financiers

• Iden4fica4on of CB requirements for

accessing and delivering CF

• Development and implementa4on of

CB programme (workshops, guidelines, training courses) Working group of experienced private sector (project developers and financiers) leaders, to discuss and generate proposals for financial instruments and policy ini4a4ves to mobilise and enhance access to climate finance in Jordan. Outputs PMR IP

• Establish the programme / partnership with key stakeholders / par4cipants
• Focus on capacity building and idea genera4on, support in accessing results based

finance.

• Crea4on of guidance materials
• Iden4fica4on of business models

Outputs subsequent phases

• Further capacity building on climate finance skills, to enable access to RBF.
• ShiTing emphasis from capacity building to knowledge sharing among key

prac44oners, updates on trends and barriers in the market.

• Publica4on and upda4ng of guidance materials
• Implementa4on of business models

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 14

Updates to the draP MRP

AcHvity B4 – assessment of key laws(REEE and PPP laws) - broadened New acHvity: B7. Study of domesHc market

• B4. Upstream policy analysis for

alignment and coherence across Ministries

• B7. DomesHc Market OpportuniHes in

Jordan DescripHon

• f acHviHes

Assessment of the legal and poli4cal condi4ons for developing and implemen4ng RE and EE projects in Jordan. Focus on areas for aligning and coordina4ng inter-ministerial ac4vi4es. Study of domes4c market opportuni4es, focusing on demand for credi4ng based mechanisms. Developed in partnership and engaging the private sector. Outputs PMR IP

• Assessment and recommenda4on of

PPP and REE laws, at minimum

• Assessment of wider policy /

regulatory coherence, iden4fica4on

• f possible contradic4ons
• Delivery of the study
• Engagement with private sector to

understand current demand, and devise plan for s4mula4ng future demand Outputs subsequent phases

• In the event of contradic4ons,

roadmaps and stakeholder engagement to resolve these.

• Inves4ga4on of op4ons/ mechanisms

for s4mula4ng private sector demand

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 15

Updates to the governance structure

Core team:

u

All ac4vi4es overseen and managed by the CCD, will be supported by external PM consultants

u

New responsibility: fundraising for future IPs

u

Ac4vi4es will involve significant stakeholder engagement – public, private, donors NCCC informed and consulted of ac4vi4es. Provides cross-ministerial link, and support. Donor commieee informed and consulted of ac4vi4es, allowing coordina4on Project Management Unit NaHonal Climate Change Commieee PMR Core managerial team Climate Change Directorate External Project Management Consultants Stakeholder engagement Key ministries and public bodies , donors, private Sector Partners Axis A AcHviHes Axis B AcHviHes Consultants/ trainees Donor Commieee e.g. USAID, GIZ, GGGI, AFD, EBRD, UNDP, UNEP Consultants/ trainees

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 16

Summary of Budget and Hmelines

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

• 1. Design of the multi- tier MRV framework,

project registry, match making platform 493 A

• 2. Implementation of the MRV framework and

pilots; and the project registry and match-making platform 1231 A

• 3. Private Sector Engagement

408 B

• 4. Analytical and Technical Studies

450 A&B Project Management Unit (see section 7.5.3) 374 A&B Total budget requested from PMR 2,956 Contribution in kind (see section 7.4) 700 A&B Total Budget of the PMR programme 3,656

Year 1 Year 2 Year 3

Budget $,000 Activity Axis

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 17

Details of Budget and Hmelines

ACTIVITIES (Supporting Axis A and B) Axis and activity number Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

• 1. Design of the MRV frameworks, project registry, match making platform

1.1.1 Institutional framework: Mapping existing information frameworks of sector agencies; high-level assesment of IT and technical capabilities; preliminary design of the MRV framework A1/A2 53 1.1.2 Definition of harmonized GHG Monitoring, Reporting and Verification requirements for three levels: project, program/agency/Fund and sector; and for each sector-specific information framework; A1/A2 117 1.1.3 Define specific modifications to existing sector-specific (MEMR, MOWI) information frameworks to integrate GHG MRV; develop data sharing agreements for inclusion in the MOUs A1/A2 50 1.1.4 Assessment of JEIS and design for integration of GHG MRV framework (project and sector) and match making platform (registry of planned projs and support) in JEIS (home site); define IT solutions for integration with target sector- specific Info frameworks; develop storage solution A1/A2 and B6 77 1.1.5 Assessment and design of IT solutions and project management tools for GAM, JREEEF and JEF that meets MRV requirements and storage (in line with the sector-specific info frameworks) B1 114 1.1.6 Identification and design of Project management tools and technical capacity building required for MRV framework management and quality assurance (CCD, JEIS, Monitoring and assessment unit) A1/A2 83 Subtotal Activity 1 493 Year 1 Year 2 Year 3 Subtotal costs ($000s) Subtotal costs (000s)

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 18

Details of Budget and Hmelines

ACTIVITIES (Supporting Axis A and B) Axis and activity number Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

• 2. Implementation of the MRV framework and project registry (incl. two pilots)

2.1 Implementation of the MRV framework 2.1.1 Procurement and deployment of necessary IT solutions for integration of JEIS and the target sector-specific info frameworks and storage A1/A2 100 2.1.2 Procurement and deployment of necessary IT solutions for strengthening and streamlining of MRV frameworks and storage at GAM, JREEF and JEF B1 74 2.1.3 Design for the integration of GHG MRV in target sector-specific information frameworks (MEMR, MOWI): development of templates and protocols for reporting and quality control A1/A2 108 2.1.4 Technical support for CCD A1/A2 50 2.1.5 Technical support for JEIS 122 2.1.6 Technical support for MoEnv's Monitoring Assessment Unit 41 2.1.7 Technical support for target sector-specific Info frameworks (MEMR, MOWI) for management of GHG MRV component A1/A2 72 2.1.8 Technical Support and Capacity building program on MRV framework and project management for JEF B1 55 2.1.9 Technical Support and Capacity building program on MRV framework and project management for JREEF B1 150 2.1.10 Technical Support and Capacity building program on MRV framework and project management for GAM B1 50 2.1.11 Development of guidance and training materials, including GHG MRV frameworks guide, project level MRV, emission baselines, quality control; develop guidance for integration with other sector-specific information frameworks A1/A2 50 Year 1 Year 2 Year 3 Subtotal costs ($000s) Subtotal costs (000s)

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Details of Budget and Hmelines

2.2. Piloting MRV framework 2.2.1 Delivery of broader training (2.1.7) for all participants (MoEnv, target sectors, JEIS, GAM, JREEEF and JEF), including workshops A1/A2 59 2.2.2. Pilot MRV frameworks with 2 target sector-specific Info frameworks and for 2 pilot projects including developing specific project emission baselines and estimating GHG savings potential A1/A2 125 2.3 Implementation of the Registry and match-making platform 2.3.1 Procurement of IT solutions for project registry B6 50 2.3.2 IT Development for web-based registry (incl. database programming, web interface design) A1/A2 and B6 75 2.3.3 Technical assistance to web-based registry related data provider and compilation units (e.g. JEIS, JAIMS); Develop maintenance guide/protocol and provide technical support to the registry host B6 50 Subtotal Activity 2 1231

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 20

Details of Budget and Hmelines

ACTIVITIES (Supporting Axis A and B) Axis and activity number Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

• 3. Private sector engagement

3.1 Establishing the Climate Finance Capacity Building Programme & Partnership for Climate Action to support companies and financial institutions working on EE & RE; develop business/work plan B2 and B3 18 3.2 Scoping of capacity needs of banking sector to scale-up financing support for medium/small-scale RE & EE projects B2 50 3.3 Scoping of training programme for energy sector companies and energy service consultants to develop bankable projects B2 and B5 60 3.4 Development and Delivery of training programmes for project developers, and financiers B2 100 3.4 Development and Delivery of training programmes for energy service companies companies B5 60 3.5 Oversight and administration of delivery of capacity building programme and partnership activities B2 120 Subtotal Activity 3 408 Subtotal costs ($000s) Subtotal costs (000s) Year 1 Year 2 Year 3

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 21

Details of Budget and Hmelines

ACTIVITIES (Supporting Axis A and B) Axis and activity number Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

• 4. Analytical and Technical Studies

4.1 Assessment of mitigation potential in key sectors and progress made till date in realizing that potential A1/A2 56 4.2 Study of emissions in key sectors: baselines, projections, explore options for target setting A1/A2 56 4.2.1 Review of Jordan specific Emission Factors A1/A2 55 4.2.2 Study of mitigation policy options: combining progress reports and targets A1/A2 56 4.3 Need Assessment and Recommendation for legislative amendment to support MRV framework A1/A2 49 4.4 Upstream policy analysis for alignment and cohesion across Ministries B4 49 4.5 Study of readiness of non-target sectors (Transport, Agriculture, Waste) for MRV integration (in existing or new Info frameworks) A1/A2 54 4.6 Study of domestic market opportunities (e.g., tradable energy certifications) in Jordan B7 76 Subtotal Activity 4 450 Year 1 Year 2 Year 3 Subtotal costs ($000s) Subtotal costs (000s)

Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016 22

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