Key Lessons from the Pilot Program for Climate Resilience A practical resource for all involved with strategic planning processes and mainstreaming of climate resilience “The PPCR business model has proven itself to be an effective framework for resilience planning and implementation. Its value will increase as development projects incorporate resilience in response to climate change and the relevance of these top 10 PPCR lessons has application for multiple audiences—countries, MDBs and climate financing entities like the GCF. ” —James Close, Climate Group Director for Policy and Finance, World Bank Group “Having a nationally owned monitoring and reporting system for resilience has helped us to organize different processes, and more importantly, streamline monitoring of all climate change adaptation actions in Nepal to facilitate continuous learning. ” — Mahendra Man Gurung, Joint Secretary, Ministry of Science, Technology & Environment, Nepal © 2015 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Citation: Rigaud, Kanta Kumari; Hoffer, Ronald; Ahmed, Kazi Fateha; Chaturvedi, Akshat; Gaensly, Laura; Kapila, Shaanti; Shrestha, Junu. 2015. Washington DC; World Bank. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Cover photo: (Nepal/Climate Investment Funds) Key Lessons from the Pilot Program for Climate Resilience Contents Overview and Welcome Top Ten Lessons Lesson on High-Level Coordination Case Study: Zambia Lesson on Linking and Leveraging Investments Case Study: Tajikistan Frequently Asked Questions Powerpoint Page Examples Key Lessons from the Pilot Program for Climate Resilience A practical resource for all involved with strategic planning processes and mainstreaming of climate resilience Welcome to this resource for helping countries bolster the resilience of their infrastructure, natural resources and human development programs, to the effects of climate variability and change. The experiences presented here come from the first 7 years of implementing the Pilot Program for Climate Resilience (PPCR) in 18 countries and covering sectors including agriculture and landscapes, water resources, coastal zone, urban development, climate information systems, and other infrastructure. The top 10 Key Lessons from the PPCR on “how to do” and “what to avoid” highlight critical and strategic aspects for enhanced success. A couple of that need to be considered in resilience illustrative examples of this cascading planning and implementation. These approach are presented below. lessons underscore the importance of institutional arrangements; information This KP reflects input from previous on climate vulnerabilities; leveraging Climate Investment Fund (CIF) reviews finance; transforming at scale; engaging and PPCR teams. The KP built on a stakeholders; dedicated learning fora; number of formal reviews of the CIFs engaging private sector; core indicators (the overarching multi-donor trust and monitoring; responsiveness to fund), as well as documentation from country context; and where relevant individual PPCR countries. The top- regional programming. These findings most “lessons learned” were refined and observations are not theoretical, through an iterative process, and but based on real experiences of detailed sub-lessons and case studies country counterparts and multi-lateral emerged to highlight and provide further development bank (MDB) teams over insights on these top-most lessons. the planning and early implementation Feedback loops to the project teams phase of the PPCR. The Knowledge ensured consistency of messaging. Product (KP) also provides links to For optimal use of this KP, the top 10 detailed supporting materials for lessons are listed below. These lessons optimal use of the information in reflect common themes across all PPCR your work. countries and there is complementarity Discussion of these top 10 Key among lessons. However, not all lessons Lessons are structured in a cascading may be equally relevant in every context. approach. Each lesson—starting with As each lesson is substantiated through key messages targeted for higher a country case study, you can always level management that help frame start learning from the experience of the discussion with counterparts and countries that share similar climate provide strategic direction­ —drills down risks, resources, and institutional into progressively more detail relevant capacities as your clients/country. to project teams through sub-lessons, Please check out the online resources for country case studies, and guidance a full elaboration of the lessons.1 1 http://www.climateinvestmentfunds.org/cif/learning-and-events/Publications 2 Top 10 Lessons of the PPCR are clear, and not only relevant to resilience programs but reflect the essence of good development. 1. Coordination across multiple sectors supported 6. The periodic dedicated learning and exchange with leadership from the highest levels of fora among PPCR pilot countries have proven government was the most effective approach for especially valuable. These help build credibility shaping a program of resilient investments, and is and professionalism of participants while sharing promising for implementation effectiveness and practical experiences and engendering shared anticipated scaling up. South-South experiences. 2. All countries were able to shape investment 7. Upfront technical assistance and targeted plans and priorities based on their experiences advisory services has been critical for and evidence with current climate variability and overcoming barriers to engaging the private impacts. The PPCR continues to be instrumental sector on climate resilience. This includes piloting in bolstering the evidence base of knowledge for new modalities of climate adaptation, validating future impacts; a critical factor for accelerating their commercial viability, and creating an resilient development. enabling environment for successful investments. 3. The expectation of linked and leveraged funds 8. The simplified set of 5 core resilience indicators at scale through formal MDB collaboration and for PPCR monitoring and reporting is seen as Phase 2 grants and concessional loans was a practical and viable framework and several pivotal for country buy-in. Planning grants countries are beginning to see the benefits of alone would have been insufficient. Both linked tracking overall national progress towards investments and leveraged investments were resilient development. instrumental in advancing and catalyzing countries resilience pathways. 9. The program’s ability to evolve and be responsive to country capacities, political structures, and 4. Many SPCRs are fostering transformational overall development regimes was pivotal for investments and policy reforms going beyond acceptance. The PPCR played a catalytic role in Phase 2 investment funds. This advanced countries whose adaptation planning was nascent. partnering with bilateral and country-based funding sources, spurred policy reforms, and 10. Regional approaches have the potential for furthered the incorporation of resilience at the bolstering country-based programming with national, regional and local levels. implementation synergies. National-level strategy linked with concrete investments ensured 5. Mandatory and documented stakeholder sustained engagement with countries. engagement built ownership and support for the planning and investment selection process. The PPCR built new pathways in some countries “Learning and sharing experiences is a central part of and enhanced existing structures in others; the CIF design, and this compendium of PPCR lessons already enhancing positive relationships during showcases a set of practical ways to achieve resilience implementation of specific investments. planning, while highlighting the achievement of the program.” – Mafalda Duarte, Program Manager, Climate Investment Funds PPCR I Key Lessons from the Pilot Program for Climate Resilience 3 You should find useful lessons n A new Country Partnership fund for the poorest, where a multi- here to help your team advance on Framework (or more generally a sector planning approach to climate climate-resilient development, under national development planning resilience is planned. any number of directions your client framework) is being developed to guide engagement with the World n The country is interested in preparing or country is heading. Since the a solid application for the Green Bank and/or other development PPCR is by nature a cross-sector Climate Fund. partners over the next 3–4 years, and approach to resilience and adaptation climate resilience is a new cross- n Your team is being asked to provide planning (Phase 1) followed by tailored sector consideration. targeted expertise or advisory investments (Phase 2), there are services (e.g., Reimbursable Advisory transferrable lessons that can offer n A Development Policy Framework Services) to a client. invaluable advice for any number of is being prepared to support critical situations your team might face, for policy reforms—both broadly and in n Given changes in country or donor example: sensitive or vulnerable sectors and policy, and/or following stakeholder regions, and provides opportunities to consultation, a particular sector address climate resilience. investment in preparation by a n Your client or country was just selected for participation in the PPCR country/development partner/ n Engagement with the country and understanding what worked or Bank needs to further consider under the 17th replenishment of the implications of climate change did not work in the first round would the International Development be invaluable. through the full life of the investment. Association (IDA), the World Bank’s “In Zambia, the leadership from the Ministry of Finance coupled with inclusive stakeholder engagement has shown how complementary bottom-up and top-down approaches through PPCR are making a real difference in resilience planning and action.” —David Kaluba, Principal Economist, Ministry of Finance and National Planning, and National Coordinator of the Interim Inter-Ministerial Climate Change Secretariat, Zambia 4 EXAMPLE 1: LESSON ON HIGH-LEVEL COORDINATION Key Lesson on “High-Level Coordination” Coordination across multiple sectors supported at the highest levels of government was the most effective approach for shaping a program of resilient investments, and is promising for implementation effectiveness and anticipated scaling up. Zambia Case Study: High-Level Coordination across Multiple Sectors through Ministry of Finance Sub-Lessons: • Best when leadership for developing multi- Question Results sector approaches rests with the Ministry of Finance or comparable institution given Organizational • Climate change Secretariat led by Ministry of influence at highest levels of Government, structure vis-à- Finance (MoF) as the cross-sectoral platform is authority over major sector ministries, and vis senior officials being finalized. experience dealing with MDB finance (e.g., and sector • MoF had proven experience in working and Zambia; Samoa, Cambodia, Mozambique). ministries? influencing investments across sectors. • Early recognition of transformative nature of • Leadership by Environment ministries with PPCR and influence on development planning. responsibility over natural resources or water infrastructure can be effective (e.g., Bolivia); but • Preparation of investment plan overlapped in more challenging without such responsibilities. timing with the national development planning • Climate change councils, climate adaptation Why did it work cycle. project implementation units, and similar for planning? • Cross-sector coordination mechanism led by structures can accelerate planning process MoF quickly recognized positive influence of if strongly supported by senior government investment funds in Phase 2. officials (e.g., Niger; Yemen; St. Lucia). • While coordination and integration is key at Will it work for Promising since PPCR structure is being utilized the National level for programmatic delivery, implementation? to access funds from GCF. implementation of investments follow the normal route through relevant line Ministries. What was Bank/ • Advisory and facilitation on establishing MDB role? and strengthening the new institutional arrangements and coordinating mechanism. • Technical assistance and capacity building to strengthen decentralized (national, provincial and district levels) implementation and coordination across sectors. How-to-Do: Other points? • Strong political buy-in leveraged three- fold additional national budget allocation in • Find and empower the champion at the highest FY15 compared to FY14 for PPCR specific level of government; one who can see across investments. sectors and directly influence development planning and has convening power. Other countries • Samoa and Cambodia; where PPCR supported with comparable mainstreaming in national/sub-national • Maintain interest of agencies past planning and structures? development plans. into implementation. • Try to avoid “program capture” by Ministries who lack direct engagement with investments, What-to-Avoid: which needs strengthened resilience (e.g., water, agriculture, energy, transport, and development). • Impatience—integrating climate and disaster risk into development is a process that takes time, from the initiation of new pilots and • Build trust and buy-in by engaging existing coordination structures, to scaling up from lessons-learned. climate and sustainable development coordinating • Reliance on an intra/inter-ministerial coordination mechanism groups, capacity-building efforts, etc. without a track record for fostering cross-sector dialogue, • Seek opportunistic timing of resilience plans and influencing investments, and fostering substantive change. national and sub-national investment plans. • Barring a mandate through a multi-donor process, an expectation that all development partners will fully coordinate their efforts, especially without a “champion” from the country. PPCR I Key Lessons from the Pilot Program for Climate Resilience 5 EXAMPLE 2: LESSON ON Linking and Leveraging Investments Key Lesson on “Linking and Leveraging Investments” “The expectation of linked and leveraged funds at scale through formal MDB collaboration and Phase 2 grants and concessional loans was pivotal for country buy-in. Planning grants alone would have been insufficient. Both linked investments and leveraged investments were instrumental in advancing and catalyzing countries’ resilience pathways. Tajikistan Case Study: Building on Sub-Lessons: Relative MDB Strengths • Required formal linkage of MDBs through Established focal SPCR process greatly leveraged institutional Development Benefits from SPCR and area/pipeline strengths, reduced country burden of donor Partner Phase 2 funds investment coordination, and enhanced high-level visibility (e.g., Tajikistan, Zambia; Yemen). World Bank Rural agriculture • Demonstrate and • Maintaining donor coordination during the (IDA) and poverty disseminate more resilient investment phase is still challenging in some reduction agricultural methods and countries. technical norms. Regional • Major upgrading of • Formal linkages with MDBs and engagement knowledge on HydroMet equipment, with other development partners ensured weather and services and delivery a more strategic approach to pipeline climate mechanisms through a investments (e.g., Yemen, Niger). region wide program. • Expectation of significant resources for • Target interventions to rural dedicated investments in Phase 2 ensured populations at risk. and sustained a high level commitment from countries. Phase 1 planning grants alone may ADB River basin • Major improvements in not have sufficed. management weather forecasts and • Both linked investments—through blended climate modeling. financing with dedicated PPCR funds; and • Demonstrate improved leveraged investments—through collective flood resilience (Pyanj financing and action have been instrumental in Basin). advancing and catalyzing countries' resilience pathways (e.g., Mozambique). EBRD Hydropower • Assessment of sector-wide improvement climate risks (semi-private sector) • Implement practical resilience measures at major dam subject to EBRD How-to-Do: co-financed upgrades. • Begin shaping multi-sector resilience investment plans in close cooperation with MDBs and Accelerate • Provided financing for development partners. UK DFiD attention to PPCR Secretariat and climate resilience international experts at • Identify as early as possible opportunities for by Government crucial stages linking and leveraging of financing, looking and donors for opportunities of comparative advantage, efficiencies, and scale-up for resilience programming. What-to-Avoid: • Consider a formal program of partnership; it’s • Impatience—integrating climate and disaster risk into development extra work but can be extremely effective in is a process that takes time, from the initiation of new pilots and leveraging institutional strengths and funding. coordination structures, to scaling up from lessons-learned. • Seek to streamline efficiencies in MDB processing • Reliance on an intra/inter-ministerial coordination mechanism and decision-making to reduce transaction costs without a track record for fostering cross-sector dialogue, and help meet overall program objectives in a influencing investments, and fostering substantive change. timely fashion. • Barring a mandate through a multi-donor process, an expectation that all development partners will fully coordinate their efforts, especially without a “champion” from the country. 6 Key Lessons from the Pilot Program for Climate Resilience “In Mozambique, our road sector has effectively leveraged and linked PPCR resources with policy reforms, allowing the country to apply better designs and standards to road resilience.” —Rogerio Wamusse, Executive Secretary, Council on Sustainable Development (CONDES), Mozambique Frequently Asked Questions Shaping Climate Resilience for Transformational Change 1. What is the PPCR? 3. What is so special about the PPCR and why is it The $1.2 billion Pilot Program for Climate Resilience (PPCR) so important to learn lessons from it? is a funding window of the Climate Investment Funds that The PPCR is currently the largest dedicated source of assists developing countries to integrate climate resilience finance for adaptation initiatives in developing countries. into development planning and investment. The PPCR delivers Moreover, the PPCR is the only funding mechanism that both support to 18 highly vulnerable countries and two regional encourages and provides the significant resources needed programs through a two-phase process: a preparation phase to help countries develop and implement a programmatic to undertake diagnostics and develop a strategic investment approach through both planning and investment in its first framework to strengthen climate resilience, followed by an phase. Because project-based activities alone have limited investment phase to address climate-related risks. As of May potential to effect national or sector-wide transformations, 2015, an additional 10 countries will receive PPCR support to a programmatic approach entails a long-term and strategic develop strategic plans for climate resilience. arrangement of linked investment projects and activities aimed at achieving large-scale impacts, taking advantage of synergies and co-financing opportunities. 2. What is the SPCR? The strategic program for climate resilience (SPCR) is a country-owned and led framework identifying vulnerabilities Lessons from the first round of PPCR countries can and priorities for mainstreaming climate resilience into inform larger processes, including multi-sectoral resilience development planning and investment. The SPCR is developed plans, country partnership frameworks, and even national through a participatory process that includes: identifying development plans. As 10 new countries were extended priorities and strategies, defining key agencies, allocating funding to prepare SPCRs in May 2015, it is important that tasks among agencies, MDBs and other partners, and these countries benefit from the experiences and learning of developing a results framework to track progress. The SPCR the 18 countries that have preceded them. builds on policy and analytical work already underway in a country and is designed to attract other multi-lateral or bilateral development funding, including climate finance from the Green Climate Fund (GCF). PPCR I Key Lessons from the Pilot Program for Climate Resilience 7 The lessons reflect common themes across all PPCR countries and there is complementarity among lessons which include both public and private sector experiences. For a full display of all the lessons, sub-lessons and case studies visit: http://www.climateinvestmentfunds.org/cif/learning-and-events/Publications Sample pages of lessons 8 Frequently Asked Questions: Shaping Climate Resilience for Transformational Change 4. How have these lessons been derived from the emphasizing the “how” and “why” to inform practical action. As PPCR? the PPCR embraces a multi-sectoral, programmatic approach, these lessons are highly relevant to the development of multi- These lessons are derived from both the preparation of the sectoral plans (MSP) under IDA 17. More broadly, any program SPCR and the implementation of PPCR investments. The that aspires to address climate risks through a strategic top 10 lessons were distilled through an iterative process of approach linking planning and investment can learn from consultation and validation with Bank task teams and country cross-cutting lessons on coordination across multiple sectors, teams. They build on evaluations undertaken by the Climate risk assessments to determine investment priorities, and how Investment Funds and project and program documentation. to develop a national monitoring and reporting framework that tracks progress and informs decision making. 5. How have these lessons been structured? The lessons are structured in a cascading approach—starting 8. How different are these lessons from good with key messages targeted for higher level management development practice? that help frame the discussion with counterparts and provide Many PPCR pilot countries have adopted innovative strategic direction, then drilling down into progressively more approaches to good development practice such as stakeholder detail relevant to task teams through sub-lessons, country consultation and inter-agency coordination. The country case case studies, and guidance on “how to do” and “what to avoid” studies on innovative use of ICT in Zambia, consultations with for enhanced success. the vulnerable groups in Yemen, and stakeholder coordination in Tajikistan demonstrate benefits beyond the PPCR process. 6. Do I have to apply each lesson? The lessons reflect common themes across all PPCR countries 9. Are these lessons relevant to the private sector? and there is complementarity among lessons. However, not The key lessons include both public and private sector all lessons may be relevant in every context. As each lesson is experiences. Lesson seven on Private Sector Engagement substantiated through a country case study, you can always specifically focuses on the barriers, opportunities, and start learning from the experience of countries that share approaches to effectively engage private sector. similar climate risks, resources, and institutional capacities as your clients. 10. Where can I access these PPCR lessons learned? 7. How applicable are these lessons to MSP The set of 10 top lessons is available on the CIF website. development for IDA 17 and/or to any other resilience building investment programs. This KP seeks to capture and share strategic, technical and operational lessons derived from the PPCR experience, The note was prepared by the World Bank Group PPCR Team. Please visit http://www.climateinvestmentfunds.org/cif/learning-and-events/Publications to see the full elaboration for each lesson. Citation: Rigaud, Kanta Kumari; Hoffer, Ronald; Ahmed, Kazi Fateha; Chaturvedi, Akshat; Gaensly, Laura; Kapila, Shaanti; Shrestha, Junu. 2015. Washington DC; World Bank. Photo credits: Cover photo (Nepal/Climate Investment Funds), page 2 (World Bank Group), page 3 (Zambia/World Bank Group), page 4 (Zambia/World Bank Group), page 7 (Mozambique/World Bank Group), page 8 (Zambia/World Bank Group).