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Multi-lateral, Bi-lateral and Domestic Funding issues
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5.4 Climate Finance Issues and Challenges for Vanuatu
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The Republic of Vanuatu recommends that more consideration be given to capacity building efforts of NIEs. Under this proposal, a system may be devised where an interim entity plays the role of the NIE if the national fiduciary requirements haven't been met yet, while simultaneously building the capacity of the NIE and ensuring that progress is made towards the NIE's accreditation leading to a swift
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. y y Coordination of climate finance is also challenging due to the proliferation of climate finance mechanisms, and Vanuatu's developing NAB governance structures. Ensuring country ownership has been difficult. It is difficult for Vanuatu to monitor, report, and verify (MRV) climate finance, as well as to account for its effective and equitable use. Keeping track of climate finance has been particularly difficult for Vanuatu due to unclear attributions (dedicated climate funds (ie. those that only invest in climate activities) and climate- relevant funds (ie. where climate relevant activities are part of the investment, even though they are not explicitly identified or labelled as mitigation or adaptation activities as such) are labelled as climate finance). Additionally, much
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handover to national institutions. Within this note, the Republic of Vanuatu would like to bring the attention of Parties on the challenges faced by SIDS Governments in their efforts to stand as qualifying institutions. Due to small-sized governmental agencies and their inequality of capabilities, meeting the first fiduciary requirement of clear legal status and under one national umbrella seems unlikely in the SIDS. Consequently, the Republic of Vanuatu calls the UNFCCC Financial Mechanism to acknowledge the limitations of the Adaptation Fund fiduciary standards and discuss alternative financing avenues and requirements to promote direct access in the Financial Mechanisms of the Convention.
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Working towards meeting its obligations under the Adaptation Fund fiduciary standards, the Republic of Vanuatu insists on the difference of capabilities between Multinational Implementing Entities (MIES) and NIEs, and therefore recommends that developing country parties under the Kyoto Protocol, and in particular the most vulnerable Parties such as the Pacific SIDS, be allowed more flexibility in meeting those standards. The Republic of Vanuatu suggests that the Parties consider adopting an approach of minimum principles to which potential NIES must demonstrate equivalency.
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country parties under the Kyoto Protocol in achieving
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Republic of Vanuatu suggests that the Adaptation Fund and other UNFCCC financing avenues provide funding in degrees to Non Annex I NIEs based on the level of achievement in meeting those standards. A gradual approach could be adopted to ensure that NIEs are proposed minimum principles and given support to improve their eligibility while enabling the country to start taking ownership of the funding and implementation of climate change projects. In this sense, Non Annex I NIEs could access smaller grants and work upwards until their capacity is built and the fiduciary standards fully met.
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Vanuatu currently faces several challenges in regard to mobilizing climate finance. Access to climate finance is difficult because the different requirements of different sources are complex and cause duplication efforts. Traditionally, multilateral and bilateral financing intermediaries such as World Bank, UN Agencies and multilateral development banks (MDBs), have played an important role in distributing and channeling climate finance to Vanuatu. Direct access is limited by Vanuatu's inability to currently meet the strict fiduciary standards required by international funds. d c $
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It is necessary that the Financial Mechanisms of the Convention demonstrate further efforts in enabling Non Annex I countries, in particular the SIDS with small Governments and spread out capabilities, to take direct ownership and control of the funding and implementation of climate change projects.
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A key challenge that provincial administrations in Vanuatu face is the limited technical capacity in grant writing for climate change funding. At the national level, it has proven to be a challenge to absorb project-funded staff at the end of projects due to competing priorities and limited financial resources. Apart from MCCA, there is not much dedicated human capacity in other ministries and departments to understand and engage in undertakings related to climate change finance. The same government officials are part of many other committees. Partners that engage with Vanuatu should seriously look at more sustainable and programmatic approaches to ensure that trained capacity and expertise is retained within Government. Vanuatu's unique context requires the utilisation of existing mechanisms and committees instead of establishing new ones, just for the sake of aligning with regional efforts or good practice in other countries. This requires Vanuatu to strategically engage and ensure that all future CCDRM projects have an integral component or focus on capacity building and transfer of knowledge, particularly if it involves external consultants.
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near, Vanuatu will expect to see an influx in the number of
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DSPPAC is the key entity in coordinating aid and development planning at the national level. The Department has an established process for capturing information on all development projects being implemented within Vanuatu. The current issue is that the NAB project approval process is seen as a duplication of the existing functions of DSPPAC. Going forward, it will be important for DSPPAC and NAB to align and harmonise their processes (particularly project profile/ project brief forms where possible) and ensure project information can be shared between the two entities where necessary.
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the Ministry will need to strengthen its capacity in coordination and information sharing (NAB Secretariat with DSPPAC/Aid Coordination), monitoring and evaluation and project development expertise in the Project Management Unit (PMU). The key challenge is how to fully maximise and coordinate the range of technical expertise that sit in different line ministries.
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developing states and least developed countries like
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climate finance flows through civil society agencies without being officially reported through Government tracking processes. Use of different accounting practices also makes it difficult to adequately tracked by Government.
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at a limited range of modalities.
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Making detailed climate finance investment plans is still challenging, as Vanuatu's climate policy frameworks only indicate broad finance goals, but not targets, what will be financed and how. There are gaps in national and sectoral policies and strategies that should direct the mobilization of climate resources. Vanuatu does not yet have a concrete climate investment pipeline. This is due in part to a lack of predictability of finance from various sources.
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effectively accessing available funding opportunities, or face the risk of slow implementation of activities from funds accessed. This is a common challenge among many PICs, and is even more serious in the smaller island states of the Pacific. It is important to understand that limited capacity is often cited by donors as the main reason for not allocating greater volumes of assistance or delivering support through
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CLIMATE FINANCE IN VANUATU AND SUPPORT RECEIVED
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6.1 Institutional Constraints and Gaps and Capacity Building Needs
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Constraints, Gaps, Technology and Capacity Building Needs
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The DOCC's three year SP aligns with relevant national and regional policies/frameworks including: National Sustainable Development Plan (NSDP) 2016-2030, Climate Change and Disaster Risk Reduction Policy (CCDRR) 2016-2030; National Adaptation Plan of Action (NAPA), Nationally Determined Contributions (NDC) roadmap & Monitoring Reporting and Verification (MRV) framework; Regional Framework for Resilient Development in the Pacific (An Integrated Approach to Address Climate Change and Disaster Risk Management -FRDP) 2017-2030 and the global Sustainable Development Goals (SDGs). In addition, the SP should also demonstrate DoCC's contribution towards advancing Vanuatu's National Sustainable Development Plan (2016-2030) particularly in relation to the Environment Pillar 3: Climate & Disaster Resilience.
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The DoCC has developed a three-year Strategic Plan (SP) (2021-2023) in order to align Vanuatu's climate change priorities along with the activities of the newly established department. The strategic plan will be used by the DoCC as a guide for alignment of resources, programs and activities with national climate change priorities.
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The Department of Climate Change (DoCC) has been established as part of the Government of Vanuatu's ongoing meaningful efforts of enhancing national resilience in the face of global climate change impacts. The department has been formed and mandated as per the "Meteorology, Geological Hazards and Climate Change Act No.25 of 2016 (Climate Change Act).
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from Climate Change; address the need of government,
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continuous improvement in national reporting, constraints,
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and related financial, technical, and capacity-building
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needs. Also, non-Annex I Parties should provide updated
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Vanuatu is continuously striving to improve national GHG
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In order to fulfil the obligations arising from the Cancun and Durban Conference of Parties (COP) decisions related to the submission of national communications and biennial update reports, further support is needed to continue to develop and consolidate existing technical and institutional capacities and to continue the efforts of integrating climate change into national policies, plans, and programs.
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provide updated information on constraints and gaps,
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With regard to the development and transfer of technology.
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Accordingly, this chapter seeks to provide a brief description of the constraints and gaps identified in previous national climate change communications. It will also identify newly arising constraints and gaps, and needed actions and resources required to overcome them.
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Introduction
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VANUATU FIRST BIENNAL UPDATE REPORT
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6.2 Green House Gas (GHG) Inventory Gaps, Constraints and Capacity Building Needs
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Table 43 Vanuatu Department of Climate Change (DoCC) issues and goals
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Furthermore, the DOCC also acts as a nodal agency responsible for overseeing and implementing Climate Change Activities (mitigation, adaptation and cross-cutting), Monitoring Climate Finance, including Communication and awareness raising etc.
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formed Department of Climate Change is formalizing the data collection process via suitable instruments eg. legal contract, MoU, MoAs etc. The data collection procedure adopted for inventories was by office notifications issued by the Director General, Ministry of Climate Change to relevant ministries and department, identified organizations, public-private sector and institutions. The data collected and database repository, archives are maintained at the Department of Climate Change.
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Data collection and validation of the data is the key aspect of the GHG inventory process. The data collection procedure in Vanuatu is yet to be formalized, the newly
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The following table consists of a list of issues, both strategic
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CONSTRAINTS, GAPS, TECHNOLOGY AND CAPACITY BUILDING NEEDS
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In Vanuatu, key uncertainties are associated with data availability, missing data, lack of comprehensive information, data archiving and lack of country specific emission factors. It is recognized that having country specific emission factors and more detailed activity data will help reduce uncertainty in future inventory. For example, in the energy sector there is good data available on fuel imports into the country but there is lack of information on end usage.
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data required for the forestry sector. Further, the uncertainty observed in Land Use Change, currently there is no national data available. The extent of the national forest resources is estimated based on reports and studies undertaken in the past and also crosschecked with FAO data.
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Energy sector Gaps and Uncertainty
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Agriculture Gaps and Uncertainty
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Similarly, for Land Use Change and national forest resources currently there is no national data available. The waste sector also lacks information on waste generation, characterization, composition, disposal and treatment. It can be concluded that with adequate training and capacity building on GHG inventory requirements, Vanuatu can provide more detailed and accurate information in subsequent GHG inventories.
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An inventory improvement plan (IP) to reduce the uncertainties has been developed as part the TNC which is envisaged to assist in more robust future GHG inventories of Vanuatu.
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For the energy sector reference approach, there were uncertainties in the data from the pacific petroleum that need to be addressed in future reports as well as instituting some level of quality control and independent assurance of data integrity. No national energy balance available, further energy datasets available are fragmented with irregular data reporting,
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at Waste gaps and Uncertainties
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An independent third party review of NIR under the TNC was coordinated by the UNDP-UNEP Global Support Programme (GSP) as per the requirements indicated in the UNFCCC Decision 17/CP.8 Annex, the UNFCCC Decision 2/ CP.17 Annex III, and to the advice of the IPCC Guidelines and Guidance indicated in these decisions for the preparation of the inventories to be included in the Second and Third National Communications and Biennial Update Reports from non-Annex I Parties under the UNFCCC. The review also takes into account the requirements and flexibilities established to prepare and report the inventory for Small Island Developing State (SIDS) and Least Developed Countries (LDC).
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, it The Independent reviewer has also examined NIR's adherence to the guidance provided in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (hereinafter referred as to "2006 IPCC Guidelines"); additionally considered criteria and recommendations provided in other key methodological documents and tools related to the inventory process including IPCC, 2017; UNDP, 2005; US-EPA-USAID, 2011; UNFCCC-GCE, 2012; EEA, 2016, UNFCCC, 2014 and UNFCCC, 2017. The quality of the Vanuatu's GHG Inventory Report was also assessed through the examination of how the principles of transparency, consistency, comparability, completeness and accuracy (TCCCA) on reporting, established in the IPCC
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For the sectoral approach, it is recognized that there are considerable gaps in information regarding sectoral usage in the energy sector that need to be addressed by obtaining data directly from the fuel supply companies. In addition, having two independent data sources would then lead to better data quality assurance and the ability to cross check quantities. In general uncertainties of around ± 51% would not be unreasonable for the energy sector.
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Although there were a number of limitations in the data
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The forest cover area and removal of biomass are the key
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Uncertainties in the agricultural sector are inherent due to the lack of detailed census data in livest population, type of livestock, animal numbers, manure management practices. The uncertainties are suggested to be higher than the energy sector and amount to around 30%.
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Forestry Sector gap and uncertainty
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These barriers are discussed specifically in terms of the specific situation below:
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Although many countries are revising their trade policies in order to liberalise markets, substantial tariff barriers remain in many cases for imports of (emission reducing) foreign technologies including energy supply equipment.
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Good Practice Guidance 2000 and 2003 and the 2006 IPCC Guidelines. Additionally, the independent reviewer also considered review of the NIRs for 1994 and 2000, 2005, 2010 included respectively in the first (NC1, 1999) and second national communications (NC2, 2016).
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The main recommendations of QA/QC and review process was overall improvement in the quality of data collection, calculations, reporting and inclusion of the key criteria analysis, uncertainty estimates and subsequent improvements in the future GHG Inventory i.e. Inventory Improvement Plan (IIP).
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Such difficulties exist in terms of developing technology
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The needs of the developing countries are quite different to those of the developed countries. Developing countries are generally still focused on large capacities of cheap, reliable power with low technical risk, and have new technologies as a lower priority. In addition, most developing countries rate development as a higher priority than reducing emissions.
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provide the necessary money flows. Projections for the current global INDCs indicate that some trillions of US$ would be needed to be transferred to developing countries just to keep the temperature increase below 3.7 degrees. Unless this transfer eventuates, the action plans developed for mitigation are not likely to be actually acted upon and will continue to exist in paper format only.
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