The World Bank NDC Support Facility Impacts and Lessons Learned Supporting NDC Implementation

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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

The World Bank NDC Support Facility:


Impacts and Lessons Learned
Supporting NDC Implementation
© 2021 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, including from the
NDC Support Facility (NDC-SF). The NDC-SF is a multi-donor trust fund created to facilitate the
implementation of the Nationally Determined Contributions (NDC) pledged by countries under the
Paris Agreement in 2015. It is funded with contributions by the German Federal Ministry of Economic
Cooperation and Development.
The findings, interpretations, and conclusions expressed by World Bank Staff or external contributors
in this work do not 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
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Attribution—Please cite the work as follows: World Bank, 2021. The World Bank NDC Support Facility:
Impacts and Lessons Learned supporting NDC Implementation. World Bank, Washington, DC.

All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The
World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail:
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Cover Design: Stefan Wolf / World Bank


Acknowledgements
This paper was prepared by Shibani Pandey under the guidance of Marius Kaiser,
Ana Bucher and Tom Witt in the Climate Change Group’s Advisory and Operations
(SCCAO) team, in coordination and with inputs from other members of the NDC
Support Facility team, including Stefan Wolf on cover design, layout and graphics.
Marion Davis helped edit the paper. Furthermore, the NDC Support Facility team is
grateful for the comments from Genevieve Connors and Luis Tineo.
The team would like to thank the Task Team Leaders of the projects the NDC
Support Facility has funded for a wealth of information and follow-on discussions.
Special thanks to Tao Wang, Katharina Siegmann and Gillian Cerbu for providing
comments on earlier drafts.

1
Acronyms
CAPE Climate Action Peer Exchange
CoFM Coalition of Finance Ministers for Climate Action
COP Conference of the Parties
GHG Greenhouse gas
LTS Long-Term Low-carbon and Climate Resilient Strategy
MRV Monitoring, Reporting and Verification
NDC Nationally Determined Contribution
NDCP NDC Partnership
NDC-SF NDC Support Facility
UNFCCC United Nations Framework Convention on Climate Change
WBG World Bank Group

2
Table of Contents
Acknowledgements 1
Acronyms 2
Executive Summary 5
1. Introduction 7
1.1 Driving Transformational Climate Action – the NDC Support Facility 8
1.2 Working with the NDC Partnership 10
2. Impacts of the NDC-SF and Key Lessons Learned 11
2.1 Support for Policy, Strategy and Legislation 11
2.2 Support with Budgeting and Investments 14
2.3 Support for Monitoring and Evaluation 18
3. Enhancing Support: The NDC Deep Dives 21
3.1 Colombia 21
3.2 The Caribbean 21
3.3 Philippines 21
3.4 Rwanda 22
3.5 South Africa 22
3.6 Vietnam 23
4. Ways Forward 24

3
4
Executive Summary
Climate change and its impacts are accelerating, systems for NDC implementation and other climate
making it more urgent than ever to transition to activities, including greenhouse gas (GHG)
low-carbon and resilient economies, as envisioned inventories, which provide key data for
in the Paris Agreement. Achieving this will require decision-making. It also supported data collection
meeting the commitments made by countries in and management, which is crucial for the
their Nationally Determined Contributions (NDCs), development of reliable climate and sustainability
significantly increasing ambition as governments targets and to inform policy decisions (see Figure 1,
update their NDCs in 2020/2021 and beyond. page 6).
One of the many ways in which the World Bank In order to provide more intensive support with
Group (WBG) is supporting climate action in its client NDCs, taking a whole-of-economy approach, the
countries is through the NDC Support Facility NDC-SF also launched “Deep Dives” in Colombia,
(NDC-SF). Launched in 2016, the NDC-SF works with Philippines, Rwanda, South Africa, Vietnam and the
developing countries that are members of the NDC Caribbean. These support packages fund activities
Partnership, a global coalition of countries and designed to scale up and accelerate climate-
institutions working to reduce emissions and build informed development by engaging a broad range of
resilience by channeling financial and technical sectors and stakeholders. For example, the NDC-SF
resources and promoting cross-sectoral collaboration is helping Rwanda develop innovative financing
and the engagement of diverse stakeholders. mechanisms to implement its NDC, while in
This paper provides an overview of the NDC-SF’s Colombia, it is supporting efforts to green transport,
work over the past three years, identifies key impacts promote energy efficiency and demand-side
and lessons learned, and describes its way forward. management, and bolster climate finance through
issuance of a sovereign green bond.

Impacts of the NDC-SF


Lessons from the NDC-SF’s Work
The NDC-SF has funded analytics, advisory and
training projects that provided information and to Date
enabling frameworks to help governments achieve The Facility’s first three years have provided valuable
NDCs. Through its support for NDC Implementation lessons that inform its current and prospective
Roadmaps, it has also built technical capacity in activities and could be useful to others working on
client countries, fostered the participation of a broad NDCs and their implementation.
range of stakeholders, and promoted the sharing of
In the context of supporting policy, strategy and
best practices.
legislation, key lessons include:
The NDC-SF also provided support to countries in
• Integrating and aligning NDC priorities into
assessing the costs of NDC-linked activities and
national development strategies and plans can
finding ways to fund them. This involved
strengthen buy-in from planning and sector
mainstreaming NDCs in national budgets, creating
ministries.
NDC-aligned fiscal frameworks, and developing NDC
investment plans to serve as the foundation for • Mainstreaming NDC implementation calls for a
mobilizing innovative and scalable financing strategic approach that draws on time-sensitive
solutions. opportunities inherent in countries’
development planning and budgeting processes
Finally, the NDC-SF supported the design of
and addresses stakeholder interests.
monitoring, reporting and verification (MRV)

5
Figure 1 NDC-SF Thematic Pillars and their Key Focus Areas

Policy, Strategy & Budgeting & Monitoring &


Legislation Investments Evaluation

• Mainstreaming NDCs into • Integrating NDC priorities into • Increasing the transparency and
long-term development plans and countries’ national budgeting accountability of NDC
legislation at the national, processes and fiscal policies; implementation; and
subnational and sectoral levels; and • Informing and preparing investments • Scoping out investment opportunities
• Engaging and aligning champions and pipelines for investment; and for climate informed projects.
and key stakeholders. • Identifying and addressing investment
barriers through policy reform.

• Timely laws and regulations can be important to impacts. Working with the NDC Partnership, it will
accelerate the uptake of low-carbon and also deepen support to countries, specifically
climate-resilient infrastructure in countries. focusing on:
• The use of an NDC Implementation Roadmap • Successful completion of ongoing NDC
can be instrumental for stimulating the enhancements, which is especially important as
participation of diverse stakeholders, including governments are now focused on economic
national climate champions who are in key recovery after the COVID-19 pandemic. More
institutions beyond the Ministries of work will be needed to highlight the impacts of
Environment and Climate Change. COVID-19 on NDC implementation and help
inform future NDC iterations.
In the context of budgeting and investments, key
lessons include: • Scaling up support for the development of
Long-Term Low-carbon and Climate Resilient
• NDC Investment Plans can help to identify policy
Strategies (LTS), so that countries can make
reforms that can align and unlock low-carbon
better near-term decisions, setting the direction
and climate-resilient investments from the
of the iterative short- to mid-term NDCs. This
private and public sectors.
can drive the necessary shifts to limit climate
• Transformative risk mitigation instruments and change, improve public health, promote social
finance can be crucial to overcoming investment inclusion and lift people out of poverty.
barriers for scaling up low-carbon technologies
• Scaling up dedicated economic recovery
and climate-resilient practices.
support, such as the COVID-19 Green Response
In the context of monitoring and evaluation, key and Recovery initiative, which provides
lessons include: just-in-time support to ensure pandemic
• Adapting national monitoring frameworks to recovery plans are green and climate-
incorporate NDC-related MRV tools can help to compatible. It also provides targeted Sustainable
systematically inform policy decision-making Recovery Technical Assistance, including
and boost the transparency of climate action. through advisers embedded in ministries of
finance, to support countries on specific
• Strong governance structures and clearly
technical issues related to a “green” recovery.
delineated institutional roles can be important
for scaling up NDC-aligned MRV systems. With this support, the NDC-SF aims to maximize the
value it brings to its client countries in advancing
their climate commitments to achieve net-zero
Ways Forward emissions and bolster climate resilience in the
The NDC-SF will keep supporting countries, drawing coming decades.
on lessons learned to further improve outcomes and

6
1. Introduction
Global climate action is falling far short of what is The first NDCs were submitted in the lead-up to
needed to limit temperature increases to “well COP21 in Paris in 2015. Under the Paris Agreement,
below” 2°C, as envisioned in the Paris Agreement – NDCs are to be updated regularly, increasing
much less to 1.5°C.1 If catastrophic damage is to be ambition, and every five years there is to be a global
avoided, urgent and substantive action is required stocktake to assess whether countries are making
on several fronts: National governments must adopt sufficient progress, collectively, to meet their
a holistic approach to “mainstream” climate action in agreed-upon goal (see Figure 2).
their development strategies. The private sector Yet even as countries need to accelerate climate
must decarbonize supply chains and transform its action, the COVID-19 pandemic threatens to slow it.
business models. Financial institutions must redirect As it has spread around the world, COVID-19 has
investment streams and instruments away from precipitated a humanitarian and economic crisis
high-carbon activities and toward “green” that will result in a global economic recession,
alternatives. Citizens must use their influence as increased poverty and social discontent, and a
voters and consumers to drive climate action. mountain of debt for most countries.
The current juncture is especially critical. Under the The economic responses and recovery efforts
Paris Agreement, countries were slated to update undertaken by governments do present the chance
their Nationally Determined Contributions (NDCs) to advance climate goals. Certainly, recovery
and submit them to the UN Framework Convention packages and investments must avoid undermining
on Climate Change (UNFCCC) by the end of 2020, long-term climate goals. They can also leverage the
though the next UN climate summit (COP26) has socio-economic benefits of ambitious climate
been postponed to late 2021 due to the COVID-19 actions, such as green infrastructure investments
pandemic. Each country’s NDC reflects the efforts it with high job multipliers. In this context, NDCs can
is willing to make to reduce greenhouse gas provide a multi-sectoral framework for a green
emissions and adapt to the now-unavoidable economic recovery. Even if they fall short of the
impacts of climate change. ambition needed to achieve the goals of the Paris

Figure 2 The Paris Agreement’s Ambition-Raising Mechanism

Ambition Raising Mechanism ing Am


bition
Increas
The Paris Agreement requires all Parties to:
put forward their best efforts to reduce
NDC Implementation NDC Implementation NDC Implementation
GHG emissions and increase resilience and Revision and Revision and Revision
through a periodic review process, and 2015 2020 2023 2025 2028
strengthen these efforts in the years ahead.
report regularly on their emissions and on Every 5 years there will be a global stocktake
their implementation efforts through a to assess the collective progress and to inform further
global stocktake. individual actions by Parties.

1
IPCC. 2018. “Summary for Policymakers.” In Global Warming of 1.5°C. An IPCC Special Report on the Impacts of Global Warming of 1.5°C above
Pre-Industrial Levels and Related Global Greenhouse Gas Emission Pathways, in the Context of Strengthening the Global Response to the Threat of
Climate Change, Sustainable Development, and Efforts to Eradicate Poverty, edited by V. Masson-Delmotte, P. Zhai, H.-O. Pörtner, D. Roberts, J.
Skea, P.R. Shukla, A. Pirani, et al. Geneva: Intergovernmental Panel on Climate Change. https://www.ipcc.ch/sr15/.

7
Agreement, NDCs are important official statements measures, discloses greenhouse gas (GHG)
of countries’ commitment to climate action. They can emissions, and applies a shadow carbon price to
thus help leaders to envision a post-COVID-19 future investments. The WBG is committed to supporting
with accelerated job creation, improved public countries with the right tools to translate their NDCs
health outcomes, less poverty, and also lower into sustainable development pathways.
carbon emissions and greater climate resilience.
Moreover, as countries work to contain the spread
and impact of COVID-19, the WBG is moving quickly
to provide fast, flexible responses. It will be
1.1 Driving Transformational Climate providing up to US$160 billion in financing tailored
Action – the NDC Support Facility to the health, economic and social shocks countries
are facing. As part of the Bank Group’s COVID-19
The World Bank Group is the largest multilateral
response, lending may shift to development policy
funder of climate investments in developing
financing. Ensuring that this includes climate actions
countries, having committed $83 billion to
as part of a broader economic recovery package of
climate-related investments over the last five years.
reforms will be critical. There may also be
In 2020, the WBG committed $21.4 billion to
opportunities for greening the economic recovery,
climate-related investments, surpassing targets for
thereby effectively also supporting NDC
the third year in a row.2 Initially guided by its
implementation in countries. These efforts will
2016–2020 Climate Action Plan and currently under
entail supporting interventions that address both
a new, ambitious set of climate targets,3 the Bank
short-term needs, such as job creation and
Group is driving systemic change in client countries
economic activity, as well as long-term goals, such as
by stepping up support for adaptation and resilience
increasing resilience, accelerating decarbonization
on par with mitigation actions, leveraging public and
and shifting to a sustainable growth trajectory.
private finance, and creating markets for climate
business. The WBG’s Action Plan on Adaptation and A key mechanism to drive transformational climate
Resilience4 further reiterates a commitment to action, including during this pandemic, is the Bank’s
supporting development approaches that are NDC Support Facility (NDC-SF), which seeks to
compatible with the long-term goals of the Paris promote rapid, material action on implementation
Agreement. and enhancement of the NDCs in client countries
through national-level actions, while advancing the
The WBG is increasingly using Systematic Country
global Sustainable Development Goals (see Figure 3,
Diagnostics (SCDs) to identify economic and policy
page 9).
constraints to climate action in countries, and to
develop climate-informed Country Partnership
Frameworks (CPFs). As part of mainstreaming
climate considerations into its operations, it screens
projects for climate risks and builds in risk mitigation

2
World Bank. 2020. “World Bank Group Exceeds 2020 Climate Finance Target for 3rd Consecutive Year - $21.4 Billion in Funding for Climate Action.”
Website feature story, August 30th.
https://www.worldbank.org/en/news/feature/2020/08/30/world-bank-group-exceeds-2020-climate-finance-target-for-3rd-consecutive-year-214-
billion-in-funding-for-climate-action.
3
World Bank, IFC, and MIGA. 2016. “World Bank Group Climate Change Action Plan 2016–2020.” Washington, DC: World Bank, International
Finance Corporation, and Multilateral Investment Guarantee Agency. http://hdl.handle.net/10986/24451.
4
World Bank. 2019. “The World Bank Group Action Plan on Climate Change Adaptation and Resilience.” Washington, DC: World Bank.
https://documents.worldbank.org/en/publication/documents-reports/documentdetail/519821547481031999/the-world-bank-groups-action-pla
n-on-climate-change-adaptation-and-resilience-managing-risks-for-a-more-resilient-future.

8
Figure 3 The NDC Support Facility

Quick Facts
The NDC Support Facility (NDC-SF) is a multi-donor As of November 2020, the NDC-SF has a portfolio of 83 projects
trust fund with a key contribution by Germany’s in 50 countries, covering a diverse range of sectors in all six
Federal Ministry of Economic Cooperation and regions. This also includes “NDC Deep Dives” in five countries
Development (BMZ). and a region which provide systemic support for fully
decarbonizing and creating resilient economies.
The NDC-SF is managed by the WBG Climate
Change Group. The NDC-SF funds the operation of the Secretariat of the
Coalition of Finance Ministers for Climate Action. It brings
Created in 2016 as a contribution to the NDC
together fiscal and economic policymakers from over 50
Partnership, the NDC-SF provides grants to WBG
countries in leading the global climate response and in securing
teams to support activities that enable countries to
a just transition towards low-carbon resilient development.
implement and enhance their NDCs.

NDC-SF Country Engagements

NDC-SF Deep Dives


NDC Partnership Member Countries IBRD 44604 | JUNE 2020

Support Areas Thematic Pillars Sectors


Environment
Analytics & Energy &
Budgeting & Agriculture and Natural
Knowledge Extractives
Investments Resources
Sharing

Finance, Macroeconomics,
Capacity Monitoring & Competitiveness Governance Trade and
Building Evaluation and Innovation Investment

Cross-sectoral Policy, Social, Urban,


Coordination Strategy & Rural and Transport Water
Legislation Resilience

9
1.2 Working with the NDC numerous developing countries, developed
Partnership Plans to specify implementation
Partnership priorities and identified implementing partners
(including the WBG, intergovernmental
A prerequisite for NDC-SF funding is for a client
organizations, regional development banks and
country to be an active member of the NDC
multi- and bilateral development agencies) to
Partnership. Launched in 2016, the Partnership is a
provide support.
coalition of 112 countries, 42 international
institutions and 33 associate members, working With the second round of NDCs due to be submitted
together to mobilize technical and financial support for COP26, the Partnership launched a Climate
for the implementation of NDCs. Through a formal Action Enhancement Package (CAEP) in 2019 to help
country engagement process (see Figure 4), it countries boost the ambition of their NDCs and
leverages the skills and resources of its partners to accelerate their implementation. It also launched
advance the goals of the Paris Agreement. It also several initiatives responding to COVID-19, including,
maintains a knowledge exchange platform on most notably, economic advisory support on
NDC-relevant topics. recovery measures that address climate change and
sustainable development issues.
Since its launch at COP22 in 2016, the Partnership
has held intra-ministerial and donor dialogues in

Figure 4 The NDC Partnership Country Engagement Process

To support its members with the implementation of their NDCs


the NDC Partnership undertakes a country engagement process

! Country requests support through NDC Partnership

Implementing partners respond to request and indicate WBG team applies for
support NDC Support Facility
grant to respond to
Country prepares Partnership Plan* in close request in line with the
collaboration with Partners country engagement
process.

Partnership Plan takes effect to support and accelerate


NDC implementation

*Partnership Plan: A results-based work plan to support and accelerate a country’s NDC implementation by
leveraging resources and expertise from across the NDC Partnership in a coordinated way.

5
More information is available at https://ndcpartnership.org.
6
As of April 2020.

10
2. Impacts of the NDC-SF and Key Lessons Learned
The NDC Support Facility aims to drive country-level The NDC-SF’s focus in this realm can be
action in three key areas: policy, strategy and summarized as:
legislation; budgeting and investments; and • Mainstreaming NDCs into long-term
monitoring and evaluation. In this section we
development plans and legislation at the
present the impacts of the NDC-SF in each of those
national, subnational and sectoral levels; and
areas, with specific examples, and distill lessons for
future engagement with client countries. • Engaging and aligning champions and key
stakeholders.
Below we present examples from our country
2.1 Support for Policy, Strategy and
engagement.
Legislation
To ensure NDCs are implemented and targets are Mainstreaming NDCs into long-term
met, policies and laws need to be in place that development plans and legislation
enable climate action especially in priority sectors
Mainstreaming the NDC into Mozambique’s
that have high GHG emissions and/or are vulnerable
Five-Year Plan (2020–2024)
to climate change. Strategies and roadmaps need to
The NDC-SF supported the development of a
outline the required actions, the key actors who
roadmap for implementing key adaptation
need to be engaged and a timeline for
strategies and targets in Mozambique’s NDC, as well
implementation.
as a GHG inventory. The adaptation and mitigation
NDC-SF projects have funded analytics, advisory and measures were then incorporated into the
training that informed the development of sectoral government’s Five-Year Plan (2020–2024). Needs
strategies and policies. They have provided assessments at the national and provincial levels
information, enabling frameworks and helped produce quantitative targets and indicators,
capacity-building to help countries achieve their making the NDC an integral part of national
NDCs, including in the forestry, energy and transport development planning. The NDC roadmap was also
sectors. The NDC-SF has helped countries to design instrumental in engaging key national
low-carbon, resilient development pathways; decision-makers, such as the Ministry of Economy
identify NDC priority actions and resource and Finance.
constraints; assess the benefits and costs of
Developing a National Action Plan for resilient
achieving climate targets and goals and understand
coastal areas in Georgia
the relevant political economy.
Georgia’s NDC prioritizes actions to boost the
Furthermore, projects supported NDC resilience of its coastal areas, as it faces serious
Implementation Roadmaps, which are crucial in threats due to sea-level rise and extreme weather
enabling cross-sectoral coordination, a major events in its Black Sea Coastal Zone. A study of
challenge for NDC implementation. Through the climate change impacts, combined with medium-
Roadmaps, the NDC-SF builds technical capacity in and long-term economic models, informed policy
client countries, stimulating the participation of a recommendations at the national, regional and
broad range of stakeholders and the sharing of best municipal levels for climate-resilient urban planning,
practices. They promote a long-term vision for infrastructure investments, delivery of municipal
advancing rapid action on NDCs in line with a services, and tourism services. The study highlighted
country’s development goals. the importance of implementing targeted
monitoring schemes for tracking climate change

11
impacts, and of adopting a sustainable approach to experiencing erratic weather due to increased
boosting adaptation and resilience using green climate variability, accompanied by lower crop
technologies and natural solutions. yields and food insecurity. Data produced by this
project will also help Guatemala to update its NDC,
Integrating Bangladesh’s renewable energy NDC
with strong stakeholder involvement.
target into its power system master plan
An NDC-SF project provided trainings and toolkits to Facilitating inclusive dialogue for NDC
national power planners in Bangladesh, supporting implementation in Brazil
them to update the power system master plan to The NDC-SF helped facilitate dialogues in Brazil in
achieve the country’s NDC target of generating 10% line with the UNFCCC’s Global Talanoa Dialogue
of its electricity from renewable resources by 2020. process, in which leaders from the public and
This has reinforced national efforts to achieve the private sectors and civil society share stories and
Sustainable Development Goal (SDG) of universal perspectives on climate action. The project’s
electricity access by 2030. Bangladesh’s power sector assessment of the macroeconomic benefits of
is among the fastest-growing in South Asia; it offers implementing Brazil’s NDC helped inform broader
immense opportunities for lowering the country’s dialogue on revising the Brazilian National Plan of
carbon footprint. The technical expertise gained Climate Change and the NDC Implementation
through the project will be instrumental for planning Strategy, as well as including budgeting and financial
investments in grid stability and storage, both of targets for the NDC in the Brazilian Pluriannual Plan
which are crucial for scaling up renewable energy cycle. Moreover, the project has built
and building a greener economy. multi-stakeholder support for developing policy
tools to regenerate forest ecosystems and
sustainably manage forests at scale.

Lessons learned
Integrating and aligning NDC priorities into
national development strategies and plans can
strengthen buy-in from planning and sector
ministries. Such an approach emphasizes the
co-benefits of climate action to achieve broader
Photo: Dominic Chavez / World Bank development goals, so that a country’s medium- to
long-term vision translates into a low-carbon and
climate-resilient development trajectory. It can
strengthen political buy-in and promote
Engaging and aligning champions and key resource-efficient modes of collaboration, and
stakeholders shared decision-making among sector and planning
Supporting participatory NDC implementation in ministries, by identifying opportunities to work
Guatemala towards shared goals. This is important for
The NDC-SF has helped Guatemala adopt a roadmap systematically translating NDCs into concrete
to achieve its NDC by bringing together stakeholders opportunities to deliver economic and development
and promoting dialogue across institutions to benefits, including job and business opportunities,
identify and cost out adaptation measures in priority improved health, market competitiveness, and
sectors. This is aimed at strengthening climate sustained and inclusive growth.
budgeting and financial management to achieve
NDC targets. Widely recognized as highly vulnerable
to climate change impacts, Guatemala has been

12
Mainstreaming NDCs requires seizing time- The use of an NDC Implementation Roadmap
sensitive opportunities in countries’ development can stimulate stakeholder participation and
planning and budgeting processes and addressing mobilize national champions in climate action.
stakeholder interests. Implementing an NDC An Implementation Roadmap is a tool to prioritize
entails not only identifying the right entry points, and sequence actions, assign roles and
such as development plans, budget circulars and responsibilities, and understand budget needs for
strategies, but also aligning actions with the implementing a country’s NDC. Such a structured
timelines of national planning and budgeting approach can help identify gaps in market
processes. These processes can be leveraged to information, financing, policies and technical
elevate the profile of NDC-relevant initiatives and capacity that typically stall national climate action
projects, by raising awareness of climate issues (see Box 1). A stakeholder mapping exercise can be
among policymakers, the private sector and the used, for example, to identify champions who are
public. It is also crucial to strategically address the high-ranking, in key institutions, beyond the
incentives, motivations and influence of different Ministries of Environment and Climate Change, and
stakeholders. The current discussions about able to shape the development of policies and
COVID-19 economic recovery and how to incorporate programs to prioritize climate action in national
climate and sustainability considerations are a case development. This entails integrating the interests
in point. of diverse stakeholders and identifying shared
challenges and solutions that support NDC goals.

Box 1 An NDC Implementation Roadmap for Achieving Côte D’Ivoire’s 42% Renewable Energy Target

Côte d’Ivoire has enormous potential for renewable champion and stimulated the creation of a new
energy generation, but it faces significant market, renewable energy association, APERCI, with 22
policy and finance-related hurdles to decarbonizing member companies across the solar, hydropower
its energy sector. This project, the first of its kind in and biomass sectors. In addition, the Bank has
the country, brought together project developers, partnered with the government to launch a new
regulators, policymakers, investors, donors and Scaling Solar Program comprising 60 MW of
other stakeholders to develop a for achieving the grid-connected solar power infrastructure.
country’s NDC target of 42% renewable energy
generation by 2030. These interactions were crucial
for identifying challenges in deploying specific
technologies and unlocking investment
opportunities, by enabling the private sector to
clearly articulate its needs to policymakers.
The Roadmap helped the Ministry of Energy draft a
new renewable energy policy and strategy for
off-grid electrification, and issue a new ordinance
that has accelerated the deployment of
renewables. Project developers and energy
companies are now committed to helping the
government achieve an electricity access rate of
60% by 2020. A new World Bank Development
Policy Operation has reinforced the project’s Photo: IFC
impacts. The project also identified a private-sector

13
Timely laws and regulations can be important to 2.2 Support with Budgeting and
accelerate the uptake of low-carbon and
climate-resilient infrastructure in countries. Investments
Several NDC-SF projects have highlighted that the Ministries of finance, which play a key role in taking
absence of necessary laws and regulations can stall action on climate change, need to have an
coordination, for example, between national and understanding of the fiscal implications of climate
sub-national governments as well as between line change and of the implementation of climate action
agencies. Supportive policy and regulatory as presented in the NDC (see Box 2). Understanding
frameworks are also important for incentivizing to what extent national budgets are already funding
private sector participation in climate-smart (or under-funding) climate action yields key insights
infrastructure development. The private sector is to inform spending. Mainstreaming NDCs into fiscal
typically averse to investments that bear policy or policy considerations and public financial
regulatory uncertainties and risks. Equally important management systems can ensure that the economic
is the need for laws and regulations to be consistent and fiscal implications of the climate agenda are
and streamlined across sectors and agencies. factored into growth and development strategies.

Box 2 From Climate Action Peer Exchange to a Coalition of Finance Ministers for Climate Action

So far the engagement of ministries of finance in economic policymakers from 52 countries in


climate issues – including the development and leading the global climate response and in securing
implementation of the NDCs – has been limited. a just transition towards low-carbon resilient
However, this lack of engagement has shown to be development. Its Santiago Plan of Action provides a
unfavorable for the planning and financing of roadmap to strengthening competencies for
national climate action. By funding the Climate integrating climate into economic policymaking in
Action Peer Exchange (CAPE), the NDC-SF supported Ministries of Finance. Members have signed on to
the strengthening of the engagement of finance the ambitious Helsinki Principles, a positive signal
ministries on climate change and national climate that ministers are becoming increasingly engaged
change commitments. The objective of the in coordinating national responses to climate
WBG-hosted knowledge exchange forum was to change across government agencies.
help countries efforts to protect their development Important progress has been made under Helsinki
and poverty reduction efforts in the face of climate Principle 6, where countries commit to “engage
change, by ensuring that fiscal policy and public actively in the domestic preparation and
financial management were also geared toward implementation of Nationally Determined
addressing climate risks and impacts, besides sector Contributions (NDCs) submitted under the Paris
policies. CAPE conducted a series of international Agreement.” Led by Uganda and Jamaica, a note has
training workshops for finance ministries building been prepared on the role of ministries of finance in
capacities of staff on topics including Fiscal Policy the preparation and implementation of NDCs, which
and Reform for Climate Action, NDCs and Green aims to inform the ministries’ actions in the coming
Investment, Environmental Fiscal Reforms for Low months as countries are preparing their NDCs.i
Carbon Growth, Carbon Taxation and Climate
Change Budget Tagging.
Based on the initial work by the CAPE, the Coalition
of Finance Ministers for Climate Action (CoFM) was
established in 2019, bringing together fiscal and

i
Coalition of Finance Ministers. 2020. Ministries of Finance and Nationally Determined Contributions Stepping Up for Climate Action. World Bank, Washington,
DC. https://www.financeministersforclimate.org/sites/cape/files/inline-files/Helsinki%20Principle%206%20-%20July%2015%202020%20update.pdf.

14
Despite having defined their climate priorities, many proposed fiscal reforms and initiatives have helped
countries have yet to cost out their NDCs accurately the government prepare legislation to introduce
and secure the finance required for their fiscal instruments to reduce emissions and
implementation. In many instances, fiscal frameworks encourage public and private investment in climate
and policies in countries favor fossil fuel-intensive mitigation and adaptation projects. The budget
activities and create barriers for scaling up low tagging exercise helped the government issue the
carbon and resilient investments. world’s first sovereign Green Sukuk (Shariah-
The NDC-SF has supported studies on the costs of compliant finance products), amounting to US$1.25
NDC-linked activities, on mainstreaming NDCs in billion in 2018, opening a new channel for Indonesia
national budgets and created NDC-aligned fiscal to tap into international climate finance.7
frameworks. It has also developed NDC investment The project also informed a Development Policy
plans and pipelines of bankable projects in key Operation in the country focused on mainstreaming
sectors such as agriculture, transport and energy. climate in budget tagging and on supporting fiscal
Investment plans aligned with national, subnational reforms to help the government achieve its
and/or sector development plans, a lack of which is a medium-term economic development and poverty
frequently cited challenge, are crucial for developing reduction goals. As Southeast Asia’s largest
transformative projects and mobilizing innovative economy, Indonesia aims to become a champion of
and scalable financing solutions. green growth in the region and is incorporating
low-carbon development policies in its
The NDC-SF’s focus in this realm can be summarized
medium-term development plan for the 2020–2024
as:
period.
• Integrating NDC priorities into countries’ national
Aligning fiscal policies with Morocco’s NDC
budgeting processes and fiscal policies;
With NDC-SF support, Morocco worked towards
• Informing and preparing investments and aligning its policies and expenditure frameworks
pipelines for investment; and with NDC priorities in the water, energy and
• Identifying and addressing investment barriers agriculture sectors, addressing some of the barriers
through policy reform. to using public funds efficiently and to attracting
private investment in low-carbon infrastructure. The
Below we present examples from our country project found that adjustments to energy taxes and
engagement. subsidies, combined with pollution taxes, would be
effective at setting long-term price signals in the
economy to catalyze investments in clean energy.
Integrating NDC priorities into a country’s
national budgeting processes and fiscal Supporting a budget tagging and expenditure
policies tracking tool in Uganda
A project in Uganda has underscored the critical role
Enabling environmental fiscal reforms in that budget tagging plays for mainstreaming climate
Indonesia considerations into government functions and key
An NDC-SF project developed tools and methods to sector ministries. It is building the capacity of the
help Indonesia’s Ministry of Finance and line Ministry of Finance, Planning and Economic
ministries analyze the budgetary impacts of Development and line ministries to institutionalize a
different NDC implementation pathways. The

7
World Bank. 2018. Case Study: First Corporate Green Bond in Indonesia Supporting Indonesia’s Efforts to Fight Climate Change. World Bank,
Washington DC, World Bank.
http://documents1.worldbank.org/curated/en/856781551372777380/First-Corporate-Green-Bond-in-Indonesia-Supporting-Indonesia-s-Efforts-t
o-Fight-Climate-Change-Case-Study.pdf.

15
tracking and reporting system for climate and Scaling up resource mobilization for climate
NDC-related expenditures. The government is action in the Pacific Alliance – Peru, Colombia,
looking to generate robust analytics to identify Mexico and Chile
upstream climate risks and vulnerabilities of public An NDC-SF project is extracting lessons-learned
investments and integrate resilience building from Chile’s experience as the first sovereign issuer
measures into the national budget and planning of labelled green debt in the Americas to finance
processes. This will allow the Ministry to work closely sustainable investments, in line with the country’s
with line ministries to plan and implement targeted NDC commitments. Chile’s experience will be
investments in low-carbon and climate-resilient applied to the other sovereigns in the Pacific Alliance
development projects, considering the timeline of to provide guidance on a path forward. The project
national budgeting cycles. is enhancing the capacity of Ministries of Finance
across the Alliance to understand how best the
sovereign issuer can address both growing
Informing and preparing investments and international interest in ESG-sensitive assets, as well
pipelines for investment as the need to raise new funding to finance their
NDCs. The sharing of these lessons learned is
Developing Climate Smart Agriculture Investment
expected to strengthen the debt management
Plans (CSAIPs) in Namibia, Cote d’Ivoire, Mali,
strategies and capacity of Pacific Alliance sovereigns
Morocco and Nepal
to tap the capital markets to fund NDC
In Namibia, a CSAIP is under development to identify
implementation at lowest cost.
opportunities for climate-friendly policy reforms to
catalyze financing for implementing sector-specific
NDC goals relevant to agriculture, landscape and Identifying and addressing investment
water management.
barriers through policy reform
CSAIPs developed as part of a regional NDC-SF
Scaling up clean bus systems in Latin America
project in Cote d’Ivoire, Mali and Morocco supporting
A regional NDC-SF project in Latin America
the Adaptation of African Agriculture initiative8 have researched the drivers and barriers to the uptake of
enhanced the private sector’s access to data and cleaner transportation technologies in five cities:
analyses on the profitability of investments in Buenos Aires, Mexico City, Montevideo, Santiago
climate-informed projects. Quantitative modeling (Chile) and São Paulo. Given that the transport
and assessments of climate change impacts were sector accounts for over 35% of GHG emissions in
undertaken to identify and prioritize investment Latin America and the Caribbean, it is a priority
opportunities in adaptation. sector in the NDCs of many Latin American
In Nepal, a CSAIP is being developed to advance countries. The project recommended viable
targeted policy actions and investment proposals for business models and financing instruments to scale
the creation of a productive, resilient and up clean bus infrastructure, catering to the needs of
low-emissions agriculture sector that enhances each city. Proposals included adopting concession
agrarian livelihoods and food security outcomes. The models for electric buses, scaling up green finance,
project is fostering multi-stakeholder dialogue and and exploring partnerships with electricity providers
building the government’s capacity to operationalize to enable investments in local electricity distribution
its NDC and the Agriculture Development Strategy networks and in fast-charging infrastructure to
under the country’s new federalist structure. accelerate a transition to clean mobility.

8
More information is available at https://www.aaainitiative.org.

16
This project also paved the way for the development instance, NDC Investment Plans can stimulate the
of another project in Chile on e-mobility that is design of fiscal transfers between national and
providing technical support for assessing and subnational governments and between sector
documenting options for the public transport system ministries to incentivize mitigation and adaptation
in urban areas. Chile, which updated its NDC in 2020 actions. This can help align the investment choices
with NDC-SF support, has ambitious targets on of different stakeholders, including national and
decarbonizing its transport sector, including 100%
subnational governments, the private sector and
electric public vehicles by 2040.
consumers, with green growth priorities. The
Designing tariffs to scale up electric buses in financial analyses of climate investment
Costa Rica opportunities embedded in NDC Investment Plans
In Costa Rica, the NDC-SF contributed to an help address information barriers that often deter
important national agenda on electrifying the
private sector investment in low carbon and resilient
transport sector, supporting the government’s
solutions. They also enable countries to better plan
formation of a multi-sectoral steering committee to
policy reforms in favor of phasing out fossil fuel
develop an electric transportation initiative headed
subsidies, introducing carbon taxes, energy
by Costa Rica’s President and First Lady. The country
has one of the greenest electric grids in the world, efficiency and demand management measures.
with over 98% of power from renewable sources, but Transformative risk mitigation instruments and
its transport sector accounts for 60% of GHG finance can be crucial to overcoming investment
emissions. Project activities included conducting barriers for scaling up low-carbon technologies
technical analyses on the cost structures of electric and climate-resilient practices. According to a
buses relative to conventional transport
World Bank report,9 infrastructure investment of
technologies and building the steering committee’s
4.5% of GDP can enable countries to stay on track to
capacity to develop a strategy to set affordable
keep global temperature increases below 2°C, and
tariffs and identify financing sources. Costa Rica has
to meet related sustainable development goals.
also become the first Latin American country to
assess the energy impacts of electrifying the Even though low-carbon pathways are more
transport sector. cost-effective than conventional alternatives in the
longer term, innovative risk-informed financing
strategies supporting investments are required to
Lessons learned stimulate investment in the near term. Factoring in
NDC Investment Plans can help to identify policy climate risks in infrastructure planning is important
reforms that can align and unlock low-carbon not only to avoid incurring damage to vital
and climate-resilient investments from the infrastructure in the face of growing climate change
private and public sectors. By mapping out impacts, but also to prevent stranded assets. Risk
investment opportunities to implement priority mitigation and financing instruments include carbon
actions associated with the NDC as well as pricing, insurance, guarantees and credit
identifying financing sources, NDC Investment Plans enhancement measures, among others.
can help unlock financing crucial for transitioning to
a global low-carbon and resilient economy. For

9
World Bank Group. 2019. Beyond the Gap – How Countries Can Afford the Infrastructure They Need while Protecting the Planet. Washington, DC.
https://www.worldbank.org/en/topic/publicprivatepartnerships/publication/beyond-the-gap---how-countries-can-afford-the-infrastructure-they-
need-while-protecting-the-planet.

17
2.3 Support for Monitoring and Increasing the transparency and
accountability of NDC implementation
Evaluation
Scaling up an MRV system to support low-carbon
The monitoring and evaluation (M&E) of climate
transport in Bangladesh
action and finance is crucial for developing an
In Bangladesh, the NDC-SF enabled the Ministry of
evidence base of transformative climate action and
Environment’s Forests and Climate Change to
finance to accelerate a transition to lower carbon
integrate a bottom-up inventory of waterway
economies, build resilience and raise global
emissions into its national GHG inventory and MRV
ambition in line with the Paris Agreement. M&E
for the first time. Inland water transport was
frameworks allow countries to adjust their NDC
identified as a key missing sector in Bangladesh’s
actions and finance based on data-driven
NDC dialogue, despite its huge potential for both
monitoring of impacts and best practices. NDC-SF
mitigation and adaptation. The project placed
projects have helped identify and close data gaps
emphasis on cross-ministerial cooperation to ensure
and design specific instruments to scale-up efficient
the sector’s emissions are captured in the GHG
and transparent national monitoring, verification
inventory and laid the groundwork for incorporating
and reporting (MRV) systems consistent with
low-carbon actions – particularly a modal shift from
climate-friendly fiscal frameworks.
highways to inland waterways – to be reflected in
Strengthening national M&E systems is also forthcoming NDC reporting and updates. The
important to enable countries to fulfill their creation of a robust MRV system helped build a
reporting requirements to the UNFCCCC and broad coalition, engaging key government agencies
address information barriers important for and the private sector for shared, transparent
mobilizing climate finance. GHG inventory tools and decision-making to accelerate a low carbon and
MRV systems enable countries to monitor and resilient transition in freight transport.
report on the progress made towards NDC targets
and priorities. These submissions inform the Paris
Agreement’s goals for countries to raise their Scoping out investment opportunities for
ambition over time, building trust and confidence in climate-informed projects
global collective action towards achieving net zero
Supporting an NDC update and M&E framework
emissions by 2050 and climate neutrality thereafter.
for adaptation actions in Rwanda
The NDC-SF’s focus in this realm can be summarized The NDC-SF has successfully supported the 2020
as: revision of Rwanda’s NDC, quantifying targets and
• Increasing the transparency and accountability identifying priority policy interventions.10 It has also
of NDC implementation; and supported the creation of an M&E framework for
NDC-linked adaptation and mitigation actions to
• Scoping out investment opportunities for
complement the government’s efforts to mobilize
climate-informed projects.
private and public resources for NDC
Below we present examples from our country implementation. The project is tied to an NDC Deep
engagement. Dive that the NDC-SF is also supporting in the
country, focused on advancing innovative financing

10
Republic of Rwanda (2020) Updated Nationally Determined Contribution. Rwanda.
https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Rwanda%20First/Rwanda_Updated_NDC_May_2020.pdf

18
instruments for scaling up climate action. Project Lessons learned
activities also inform the government’s revision of
National monitoring systems that incorporate
the Environment and Natural Resources Sector
MRV tools for NDCs can enable transparent and
Strategic Plan in line with the priorities set out in the
climate-informed policy decision-making.
new NDC.
Integrated MRV systems are increasingly important
Developing a web-based Geographic Information as countries move from discrete projects or
System (GIS) in São Tomé and Príncipe interventions to systemically building low-carbon
The NDC-SF supported the development of a and climate-resilient economies. It is pragmatic and
web-based GIS to enhance São Tomé and Príncipe’s resource-efficient to design MRV systems that
access to information on climate risks and to support and build on existing monitoring systems to
monitor a national portfolio of projects focused on track progress towards complementary sets of
climate resilience. The country’s NDC strongly priorities and targets. For instance, an integrated
prioritizes improving capacities and tools for MRV system can track NDC-related targets on GHG
disaster risk management and increasing the emissions reduction and adaptation, while also
resilience of key sectors including agriculture, tracking the performance of actions under the SDGs
fisheries and health. The platform has improved and gender-related goals. By collating and
coordination between the government, the private streamlining data from different levels of
sector and donors on NDC implementation. By government, sectors and stakeholders, integrated
providing information on the scope and status of MRV systems can help identify bottlenecks, capacity
different projects, it has also helped identify constraints and best practices for scaling up the
opportunities for follow-on activities and co-benefits of climate action. With a streamlined
investments. This project is aligned with the World approach, countries can accelerate the development
Bank’s West Africa Coastal Areas Resilience of targeted policies and regulations and identify
Investment Project in the country. It has helped pipeline projects with the potential for
foster ownership of the climate agenda in key transformative impacts.
sectors, and its linkage to that project was
MRV systems that track climate finance in
instrumental in securing financial support for the
addition to mitigation and adaptation targets
sustenance of the GIS platform.
can help countries gain an understanding of
financing gaps and expenditures. They have the
potential to remove information barriers crucial for
designing policies and regulations that incentivize
investment from the private sector as well as
government institutions at the national and
sub-national levels. The increased transparency
resulting from MRV systems helps to demonstrate
the continuity of a country’s climate action,
strengthening trust among donors and investors
and enabling countries access to finance from a
broader variety of sources.

Photo: World Bank

19
Box 3 Implementation of an Integrated Climate Change MRV System in the Kyrgyz Republic

With a 51% poverty rate, mountainous Kyrgyzstan of stakeholders have fostered collaboration and a
is highly vulnerable to climate change impacts, results-oriented approach to mainstreaming NDC
including droughts, erratic rainfall, and soil erosion implementation as part of development planning.
and degradation. Climate change is causing The MRV system has helped establish a baseline to
glaciers to melt, leading to water, food and energy identify and report on trends in GHG emissions
insecurity. The NDC-SF has supported the levels, the impacts and costs of climate actions, and
development of an MRV system to track the the use of international and domestic climate
country’s progress on NDC targets and climate finance. The updated GHG inventory provides
finance flows related to forestry and biodiversity, granular data to assess the impacts of low carbon
and it has supported regular updates of the measures in different areas in the country, in full
national GHG inventory. compliance with the UNFCCC MRV framework.
Both the MRV system and updated GHG inventory
A limited history of collaboration among different
are important tools to enable Kyrgyzstan to comply
ministries, combined with gaps in data and data
with reporting and transparency requirements
quality issues, initially created hurdles for the timely
under the Paris Agreement and ultimately raising
completion of project activities. However, enhanced
its ambition.
access to quality data and a wider network

Strong governance structures and clearly instituting policies and regulations that require
delineated institutional roles and accountability regular reporting on climate action and finance
can be important for scaling up NDC-aligned MRV aligned with UNFCCC reporting timelines, countries
systems. While robust technical design, data quality can increase accountability of NDC actions. M&E
and strong indicators are important, MRV systems frameworks with strong institutional arrangements,
need to have strong institutional and governance but flexibility to adjust to the evolving needs of
frameworks in place, as well as guidelines that national climate action, are essential for accelerating
specify the roles and responsibilities of the different evidence-based and results-oriented NDC
stakeholders and “champions” at the strategic, implementation.
operational and political levels (see Box 3). By

20
3. Enhancing Support: The NDC Deep Dives
Informed by the NDC-SF’s experience since 2016, an 3.2 The Caribbean
additional measure was established in 2019 to
Though NDC planning and implementation are
provide more in-depth support: NDC Deep Dives,
nationally driven processes, the Organization of
which have been launched in five countries and one
Eastern Caribbean States (OECS) countries – Dominica,
region so far, taking a whole-of-economy approach.
Grenada, St. Lucia, St. Vincent and Grenadines, and
These comprehensive support packages, slated to
Antigua and Barbuda – have shared NDC priorities,
be completed by the end of 2021, fund
challenges and gaps in NDC implementation. This NDC
country-specific and multi-sectoral activities to
Deep Dive directly supports national efforts, but also
accelerate climate-informed development across
regional activities to advance NDC implementation. It
different sectors. Given the multi-faceted challenges
takes an economy-wide approach, focusing on
of accelerating NDC implementation and raising
strengthening governance, institutional, legal and
ambition, Deep Dives seek to scale up system-wide
regulatory frameworks; identifying cost-effective
impacts by engaging a broad scope of sectors and
policies and investment operations; and improving
stakeholders. Given the timing, the Deep Dives are
climate finance readiness.
also being informed by the economic landscape
affected by COVID-19. Measures are therefore being Support is directed at identifying policies, and more
taken for the work to contribute to sustainable importantly, investment options that deliver the
recovery. desired climate outcomes, in the context of each
country’s economic and social goals and overall
development context. By improving climate finance
3.1 Colombia readiness, the Deep Dive also seeks to build capacity
In Colombia, the NDC Deep Dive focuses on for accessing climate finance for NDC implementation.
enhancing technical capacity, institutional readiness It is engaging ministries of environment, finance and
and cross-sectoral coordination to advance NDC their equivalents in the OECS countries, with special
implementation, specifically in the energy, transport, attention to building governments’ capacity to access
industrial, solid waste and green finance sectors. It climate finance. It also complements the NDC-SF’s
aims to deliver transformative impacts by support for Antigua and Barbuda on the development
supporting activities such as national programs on of an investment plan and pipeline of projects to boost
green urban mobility and on modernizing and the resilience of the countries’ energy sector.
greening the trucking fleet; a national program to
promote energy efficiency and demand-side
management; the issuance of Colombia’s first
3.3 Philippines
sovereign green bond; and designing a solid waste The NDC Deep Dive in the Philippines seeks to
management and reuse pilot program. enable key climate adaptation and mitigation
investments and introduce best practices to support
Lessons from these initiatives at the national and
the implementation of the current NDC and increase
local levels are expected to inform an update of
ambition in the upcoming revision. It encompasses
Colombia’s NDC and the development of a long-term
agriculture, coastal resilience, energy, transport,
strategy for climate resilience and low-carbon
finance and the environment, with support to the
growth. Importantly, a prospective WBG COVID-19
relevant ministries. The work builds on three
recovery package in the country is also informed by
mutually reinforcing pillars to:
this work. Multiple government ministries are being
engaged and supported.

21
• Support reforms to the Risk Resiliency Program Thereby the work will strengthen Rwanda’s resilience
to strengthen the achievement of national and help to reduce the probability of the country
adaptation priorities through multi-sectoral being affected by multiple national emergencies,
public planning and budgeting processes; including pandemics, at the same time.
• Mainstream adaptation in key sectors, The project will support Rwanda’s Green Fund
strengthening analytics and tools for identifying (FONERWA) and Ministry of Finance and Economic
and integrating key climate adaptation Development (MINECOFIN) in mobilizing finance
measures in the agricultural, coastal and through the development and piloting of new
infrastructure sectors; and instruments and institutional structures. The work is
led by FONERWA, in collaboration with the Ministry
• Support climate mitigation efforts using
of Environment, sectoral agencies, MINECOFIN, and
carbon-pricing instruments, as well as support
Rwanda’s Development Bank. These activities and
engagement with the private sector on key areas
the flagship projects they produce will also
of climate action.
complement Rwanda’s revised NDC, submitted in
Opportunities are being explored for the Deep Dive May 2020 with NDC-SF support, which raises
to contribute to aligning the NDC economy-wide ambition for both mitigation and adaptation.
transition plan that is expected to be prepared by
2022 with the country’s upcoming Development Plan
(2023–2028) as planned, as well as to informing a 3.5 South Africa
prospective COVID-19 economic stimulus package. The NDC Deep Dive in South Africa supports the
government’s implementation and update of its
NDC, engaging multiple sectors, including energy,
transport, water, urban development, finance and
environment, and supporting the corresponding
ministries as well as the National Treasury. Activities
are built on three pillars:
• Supporting transformative policy by integrating
climate change into macro-fiscal planning and
budgeting processes and translating the NDC
into concrete actions, with a focus on carbon
budgets, sectoral emission targets and a
national carbon tax;
Photo: Dominic Chavez / World Bank
• Closing the financing gap by assessing the
infrastructure investment needed to achieve
South Africa’s NDC and vision for 2050, and by
3.4 Rwanda building capacity to enable the country to access
In Rwanda, the NDC Deep Dive is focused on and monitor the use of international climate
enhancing the government’s capacity for financial finance;
innovation to accelerate action on both mitigation • Sectoral and spatial priorities, with a roadmap
and adaptation. The NDC-SF is helping to identify, and implementation plan that targets sectors at
design and operationalize financial instruments and the nexus of land use, water and energy, as well
initiatives to leverage private sector climate as geographical “hotspots” that have been
investments in a broad range of sectors: prioritized in the country’s 2050 vision.
transportation, water, waste, energy, forestry, and
disaster risk management and risk financing.

22
The Deep Dive is well positioned to support a investments for NDC implementation by leveraging
sustainable and resilient recovery by enabling a the Bank’s sectoral engagements on four critical
green fiscal policy response and just transition in transitions: low-carbon energy, low-carbon and
critical areas such as agriculture, energy and water. resilient transport, climate-smart landscapes, and
It will also help drive investments across sectors in green and resilient urban development. That work is
low-carbon infrastructure that is resilient to climate complemented with tools to support a
change, pandemics and other shocks. whole-of-government approach, particularly
through improvements to investment planning and
budgetary processes, the application of fiscal levers,
3.6 Vietnam and strengthening of overall coordination and
accountability processes. Multiple government
This Deep Dive builds on the NDC-SF’s sustained
ministries are being engaged and supported.
engagement in Vietnam since 2016, supporting the
country’s Plan to Implement the Paris Agreement. It is still too early to analyze the full impact of the
Previous work focused on expanding green NDC Deep Dives. However, we can already see that
transport infrastructure, strengthening multi- they have been invaluable in supporting countries
stakeholder coordination for NDC implementation, to tackle the cross-sectoral challenge of climate
and pilots and policy reforms to scale up change by improving the coordination and
eco-industrial parks. The Deep Dive will focus on the integration of climate action across sectors.
energy, transport and urban development, finance Furthermore, Deep Dives have shown to be
and environment sectors. instrumental in leveraging wider World Bank
activities, including for a green recovery, in order to
The NDC-SF is informing the design, budgeting,
support national climate action.
coordination and monitoring of policies and

23
4. Ways Forward
Meeting the goal of keeping the global temperature international resources and economic growth
increase well below 2°C is contingent on overcoming trajectories, may need to be reconsidered in the light
the challenges that countries currently face in of the pandemic. More work will be needed to highlight
accelerating climate action. Governments urgently the impacts of COVID-19 on NDC implementation and
need to address policy, market and financing barriers help inform future NDC iterations.
to achieve their NDCs. They also need to raise
Supporting the development of Long-Term
ambition to achieve net-zero emissions by the second
Low-carbon and Climate Resilient Strategies
half of the century, and they must build resilience not
(LTSs): The NDC-SF is already supporting the
only to climate change impacts, but to other major
development of LTSs under the Paris Agreement, or
threats and uncertainties.
elements thereof, in several countries, and is looking
Right now, however, governments’ most urgent to further increase its engagement in this realm. By
priority is to respond to the COVID-19 pandemic and laying out a long-term vision for climate-informed
its economic fallout. As the WBG supports countries, it development, countries can make better near-term
is crucial to ensure that recovery efforts keep decisions, as captured in the NDCs, and drive the
advancing progress towards sustainability and necessary shifts to limit climate change, improve
achieving the Paris goals. public health, promote social inclusion and lift people
Working with the NDC Partnership, the NDC-SF will out of poverty. The LTS development process can
deepen its support for countries to fully integrate NDC engage sectors and actions that may not yet be
priorities with their national development strategies, covered in NDCs, including hard-to-abate sectors,
planning and budgeting, including COVID-19 recovery, urban development, transformative technologies and
and unlock new investment opportunities. It will also innovation, agriculture, education, gender and health.
help countries enhance transparency by tracking Supporting sustainable recovery: The NDC-SF is
national GHG emissions levels, climate finance flows, adjusting its existing projects to help countries
and the impact of NDC actions, to draw out lessons respond to the COVID-19 pandemic and build back
and best practices. Engaging ministries of finance in stronger and greener. Moreover, the Facility is scaling
climate action, through the CoFM and beyond, will up dedicated recovery support. It has set up a COVID
remain a crucial part of this work. 19 Green Response and Recovery initiative to provide
Specifically, the NDC-SF is looking to focus on: just-in-time support to ensure pandemic recovery
plans are green and climate-compatible, bringing to
Supporting NDC enhancement: The NDC-SF is bear a strategic comparative advantage of the WBG. It
supporting the revision of NDCs in several countries. is also providing targeted green recovery technical
Chile, Rwanda and Jamaica, for example, have already assistance, by embedding economic advisers and
submitted enhanced NDCs at the time of writing.11 We capacity-building for country recovery strategies and
aim to inform efforts to increase ambition and stimulus packages.
promote more holistic climate action aligned with
Achieving the long-term goals of the Paris Agreement
national development planning and processes. Where
requires substantial and urgent action from multiple
countries are considering or actively integrating
stakeholders. The NDC-SF will continue to expand the
climate change aspects into their economic recovery
leverage of the WBG’s extensive experience in
packages, NDCs may serve as valuable resource to
countries in advancing their climate commitments to
develop such green investment plans. At the same
achieve net-zero emissions and bolster climate
time, the assumptions countries are making to develop
resilience in the coming decades.
their NDCs, including the availability of domestic and

11
The updated NDCs are available at: https://www4.unfccc.int/sites/ndcstaging/Pages/Home.aspx

24

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