Jordan Final Market Readiness Proposal PA14 Lima, Peru April 27, - PowerPoint PPT Presentation

Jordan Final Market Readiness Proposal PA14 – Lima, Peru April 27, 2016 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Agenda 1. MRP ObjecHves and Focus 2. Comments/SuggesHons received 3. Updates to the draP MRP 4. Summary of budget and Hmelines 2 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

MRP ObjecHve and Focus • Long term aim: scaled-up credi4ng mechanism. The MRP presents the 1 st 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’. 3 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

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

Comments/SuggesHons received at the 13 th 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. 5 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Comments/SuggesHons received at the 13 th 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: o MRV tracking system o 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 6 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Comments/SuggesHons received at the 13 th 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. 7 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Comments/SuggesHons received at the 13 th 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 • o B2. Climate Finance Capacity building programme o B3. Partnership for Climate Ac4on New ac4vity: B7. Study of domes4c market opportuni4es in Jordan • 8 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Comments/SuggesHons received at the 13 th 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. • 9 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Comments/SuggesHons received at the 13 th 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 10 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Comments/SuggesHons received at the 13 th 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 11 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016

Updates to the draP MRP Axis A Supplementary Ac4vi4es LegislaHve support to MRV Readiness in Non-Target framework Sectors for MRV integraHon DescripHon of Need Assessment and Study on the readiness of non- acHviHes Recommenda4on for target sectors (Transport, legisla4ve amendment to Agriculture, Waste) for MRV support MRV framework integra4on (in exis4ng or new Info Systems) Outputs • Assessment and • Understanding of readiness During PMR recommenda4on of and MRV in non-target implementaHon possible legisla4ve sectors phase amendments Outputs • Support to CCD • Developing a road map for subsequent implemen4ng legisla4ve inclusion of non-target phases amendments sectors 12 Jordan’s Final Market Readiness Proposal (MRP) PA 14 – Lima – April 27, 2016