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CONTENTS1. SITUATION ANALYSIS1.1 CLIMATE VULNERABILITIES IN FIJI1.2 OPPORTUNITIES TO ADDRESS CLIMATE CHANGE1.3 POLICY CONTEXT1.4 INSTITUTIONAL CONTEXT1.5 BUDGETARY CONTEXT1.6 INFORMATION MANAGEMENT1.7 SECTORAL CLIMATE IMPACTS1.8 STAKEHOLDER AND BASELINE ANALYSIS1.9 LONG-TERM SOLUTION AND BARRIERS TO ACHIEVE THE SOLUTION2. PROJECT STRATEGY2.1 PROJECT RATIONALE2.2 PROJECT OBJECTIVE2.3 PROJECT OUTPUTS, ACTIVITIES, INDICATIVE ACTIONS2.4 COST-EFFECTIVENESS2.5 REPLICABILITY2.6 SUSTAINABILITY2.6.1 INSTITUTIONAL SUSTAINABILITY2.6.2 ENVIRONMENTAL SUSTAINABILITY2.6.3 SOCIAL SUSTAINABILITY2.7 POTENTIAL RISK ASSUMPTIONS3. PROJECT RESULTS FRAMEWORK4. BUDGET AND WORK PLAN4.1 ANNUAL BUDGET & WORK PLAN4.2 TOTAL BUDGET WORK PLAN5. MANAGEMENT ARRANGEMENTS5.1 PROJECT EXECUTION AND OVERSIGHT5.1.1 PROJECT COORDINATION MECHANISM5.1.2 NATIONAL COORDINATION COMMITTEE5.2 PROJECT ASSURANCE5.3 PROJECT MANAGEMENT UNIT5.3.1 NATIONAL COORDINATOR5.4 FUND FLOW MODALITY5.5 MANAGEMENT AND FINANCIAL AUDIT5.6 UNDP DIRECT PROJECT SUPPORT SERVICES6. MONITORING FRAMEWORK AND EVALUATION6.1 PROJECT START4

6.2 QUARTERLY M&E6.3 ANNUAL M&E6.4 MIDTERM OF PROJECT CYCLE6.5 END OF PROJECT6.6 LEARNING AND KNOWLEDGE SHARING7. LEGAL CONTEXT8. ANNEXESAnnex 1:Annex 2 :Annex 3:Annex 4:Annex 5:Major climate change related projects and programmes being implemented in Fiji.List of major stakeholders working in the areas/issuesResults FrameworkBudget Allocation and Work Plans for UNEP and WRI for Fiji partnership projectJob Descriptions of Project StaffList of TablesTable 1: Stakeholder and baseline analysisTable 2: Results frameworkTable 3: UNDP annual work plan Year 1Table 4: UNDP annual work plan Year 2Table 5: UNDP annual work plan Year 3Table 6: Potential project risks and assumptionsTable 7: Main outputs of Fiji GCF Readiness planTable 8: M&E work plan and budgetList of FiguresFigure 1: Climate change policy development organizational chartFigure 2: Fund flow processFigure 3: Project organizational structure5

ACRONYMS AND ABBREVIATIONSAF – Adaptation FundBACC – Budget and Aid Coordinating CommitteeBMUB – German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear SafetyCBA – Cost-Benefit AnalysisCCD – Climate Change DivisionCDM – Clean Development MechanismCSB – Cabinet Sub-Committee on BudgetCPEIR – Climate Public Expenditure and Institutional ReviewDPCC – Development Partners of Climate ChangeDRM – Disaster Risk ManagementEIA – Environmental Impact AssessmentFEA - Fiji Electricity AuthorityFMS – Fiji Meteorological ServiceGCF – Green Climate FundGEF – Global Environment FacilityGIZ - Deutsche Gesellschaft für Internationale ZusammenarbeitIE – Implementing EntityJNAP – Joint National Action PlanM&E – Monitoring and EvaluationMF – Ministry of FinanceMFA – Fiji Ministry of Foreign AffairsMFF – Fiji Ministry of Fisheries and ForestryMFI – Microfinance institutionMIA – Fiji Ministry of iTaukei AffairsMLGUDHE – Fiji Ministry of Local Government, Urban Development, Housing & EnvironmentMoA – Fiji Ministry of AgricultureMoH – Fiji Ministry of HealthMPDNDM – Fiji Ministry of Provincial Development and National Disaster ManagementMSP – Ministry of Strategic PlanningMWTPU – Fiji Ministry of Works, Transport and Public UtilitiesNC – GCF Readiness Programme National CoordinatorNCC – National Coordinating Committee/Project BoardNCCAS – National Climate Change Adaptation StrategyNCCP - Fiji National Climate Change PolicyNCCCC (previously NCCC) - National Climate Change Coordinating CommitteeNCSA – National Capacity Self-AssessmentNDA – National Designated AuthorityNIE – National Implementing EntitySDP – Strategic Development Plan6

UNDP – United Nations Development ProgrammeUNEP -United Nations Environment ProgrammeUNFCCC - United Nations Framework Convention on Climate ChangeUNCBD - United Nations Convention on BiodiversityUNCCD - United Nations Convention to Combat DesertificationV&A – Vulnerability and AdaptationWRI – World Resources Institute7

1SITUATION ANALYSIS1.1Climate Vulnerabilities in FijiThe Republic of Fiji is an island nation with an estimated population of 875,000. There are an estimated330 islands, of which approximately one-third are inhabited. Fiji has a total landmass of 18,333 squarekilometers, with Viti Levu and Vanua Levu constituting 87% of the total. Fiji has an exclusive economiczone of 1.26 million square kilometers. The climate of Fiji is generally categorized as an oceanic tropicalmarine climate.Fiji, like many Pacific island countries, is particularly vulnerable to the impacts of climate change.Tropical cyclones, droughts, floods and sea level rise are some of the major hazards expected to impactFiji. By 2030, the most likely projected change for Fiji is for warmer temperatures and little change inrainfall, with annual mean temperature increases of 0.7 C. By 2100, sea level is expected to rise by 0.2 –0.5 meters.1.2Opportunities to Address Climate ChangeClimate change impacts cut across many aspects of life in Fiji – for example, increased cyclones candamage infrastructure and disrupt energy supplies that support critical sectors such as urbandevelopment. In response, Fiji has developed strategies to guide the identification of mitigation andadaptation activities in the National Climate Change Policy (NCCP)The NCCP provides a set of strategies to guide implementation, examples of measures mentionedinclude diversifying crop species that are more resilient to flood, drought and saltwater, theconservation and sustainable management of mangroves, improved watershed management,construction of buildings away from foreshore areas, river banks and flood plains. In particular, Fijihighlights the cross-sectoral benefits of interventions, such as the conservation of mangroves supportingforeshore protection, marine breeding grounds and healthy coral systems. This not only protects Fiji’snatural landscape but also preserves areas that are important to the tourism sector, Fiji’s largestindustry.The need for effective adaptation at scale is paramount to Fiji. Its greenhouse gas emissions arenegligible, but its vulnerability to increased frequency of cyclones, rising sea levels and other climateinduced hazards in the short, medium and long term require Fiji to take planned measures to identify,reduce and mange risks, recover from inevitable disasters when they do occur and ensure that longterm development gains are not undermined by long-term changes in climate.There are numerous adaptation projects in Fiji, which are often undertaken by nongovernmentalstakeholders. The issue of harmonizing efforts to increase resilience, both across sectors and actors, isstill a critical issue in terms of Fiji’s adaptation to the effects of climate change. Two examples ofgovernment efforts to build resilience are the Climate Change Division partnering with the NaturalDisaster Management Office and other ministries to relocate two villages and build a seawall.These initiatives are a strong beginning, but much more must be done to institutionalize andsystematize delivery of climate change action. Many of the projects seem ad-hoc and are funded by one-8

off funding sources or partnerships. A key opportunity for Fiji is to implement policy and financialsystems to bind the ad-hoc projects together to efficiently support, fund and implement them in atimely manner and ensure the delivery of sustained results over time.1.3Policy ContextThe centerpiece of Fiji’s approach on climate change is its National Climate Change Policy (NCCP) Jointlyfunded by the Climate Change Unit of the Environment Department, the Secretariat of the PacificCommunity, German Agency for International Cooperation Coping with Climate Change in the PacificIsland Region programme, the United Nations Development Programme and Global Environment FundPacific Adaptation to Climate Change (PACC) project implemented through UNDP-GEF in partnershipwith GIZ. The policy, adopted in 2012, has a vision of “A responsible and exemplary Fiji, leading thePacific in combating climate change and achieving resilience, while attaining sustainable development.”The policy was developed by the National Climate Change Policy Taskforce, a sub-group of the NationalClimate Change Country Committee, (NCCCC) based on broad consultations with stakeholders. SeeFigure 1 for the policy development organizational chart.DivisionFigure 1: Climate change policy development organizational chart for FijiThe goals of the NCCP include:1. To support the implementation of Fiji’s Roadmap for democracy and sustainable socio-economicdevelopment 2009–2014 under the People’s charter for change, peace and progress;2. To promote integration of climate change issues in national planning, budgeting andimplementation processes;9

3. To provide guidance on government’s responses to climate change issues;4. To guide sectors to develop appropriate climate change adaptation and mitigation strategies;5. To support requests to regional and international agencies to provide resources and assistancein addressing national climate change issues;6. To contribute to Pacific regional actions and to meeting international commitmentsThe NCCP lists eight objectives to be implemented:1.2.3.4.5.6.7.8.MainstreamingData collection, storage and sharingAwareness raisingEducation and TrainingAdaptationMitigationFinanceInternational and Pacific region participationThe NCCP review process is facilitated by a task team assigned by the chairperson of the NCCC. Thepolicy will be reviewed in 2016 to assess and ensure its relevance and continued implementation in anefficient and effective manner. As per Figure 3 of the NCCP, there will also be annual monitoring ofstrategy implementation, lead agency efforts and implementing agency efforts.Given that securing sufficient finance is an objective in the policy, the Government describes keystrategies for supporting the sustainable financing of climate change projects: Ensure that national budgeting processes include the assignment of funds for climate changemitigation and adaptation research, planning and programme implementation.Develop innovative approaches and schemes to generate funds for adaptation activities at localand national levels.Support the UNFCCC National Focal Point in efficiently and effectively accessing and deliveringfunds from regional and international sources.Develop an overview of climate change funding and costs in order to monitor the efficiency andeffectiveness of funding mechanisms and project delivery.Ensure adequate distribution of climate change funding, such as GEF and the Adaptation Fund,into climate change-related projects in all government agencies.Secretariat of the NCCC to collaborate with the Development Partners of Climate Change (DPCC)Committee in sharing information and coordinating and streamlining donor-funded projects.Improve financial reporting to the Ministry of Finance to ensure proper disbursement andutilization of funds.Develop an analysis of the economics of climate change adaptation and mitigation in Fiji toidentify cost-effective and cost-ineffective approaches.Support and develop the capacity of government agencies and local NGOS and CBOs in proposalformulation and reporting in order to improve access to funds from regional and internationalsources.Provide adequate resources to the Climate Change Division.Implement recommendations from the ‘Mainstreaming climate change into nationaldevelopment and budgeting’ feasibility study (supported by the Global Climate Change AllianceFacility).Develop projects and initiatives with carbon financing potential.10

To support the National Climate Change Policy, the government has drafted the Climate ChangeCoordination Guidelines and Climate Change Finance Guidelines, which are yet to be endorsed. TheClimate Change Coordination Guidelines outline the roles and responsibilities for the Climate ChangeDivision and other stakeholders and the process for the implementation of climate change projects atthe national, divisional and local levels.The Climate Change Finance Guidelines provide instructions on the management of climate changefunding through existing government mechanisms. It discusses how funds from various sources flowthrough the Government and how the funds will be tracked. The guidelines build on existing processes,particularly within the Ministry of Finance.Beyond the Climate Change Policy, Climate Change Coordination Guidelines and the Climate ChangeFinance Guidelines, there are numerous climate-related strategies and plans, including:1. On the highest level, there is Fiji’s Roadmap for Democracy and Sustainable Socio-EconomicDevelopment 2010-2014 that has the following goals related to climate change: A resource efficient, cost effective and environmentally sustainable energy sector Sustainable management and utilization of Fiji‘s natural resources. Building national resilience to disasters and adapting to climate change2. The National Strategy and Action Plan (2009) provides a set of recommended strategies andprogrammes for capacity development in which support and assistance is required in order tosuccessfully meet the obligations of the three Rio Conventions on climate change (UNFCCC),biodiversity (UNCBD) and land degradation (UNCCD).3. The Green Growth Framework for Fiji where Thematic Area 1 is Building Resilience to ClimateChange and Disasters. Short term (up to 2 years) proposed way forward actions include“establishing a National Platform for Climate Change and Disaster Risk management by 2015”whilst medium term (3-5 years) actions states “improve access to global financing facilities suchas the Global Green Fund”.4. The first ever National Energy Policy and Strategic Action Plan for Fiji was endorsed in gy%20Policy%202006.pdf).The policy included four strategic areas: i) National Energy Planning; 2) Energy Security; iii)Power Sector; and iv) Renewable Energy. An overall goal to achieve 50% renewable energy in allsectors by 2015 is included. Concerning electricity sector then by 2015 the national power utilityFiji Electricity Authority (FEA) wants to supply 90 % of its power from local, renewable energyresources.The policy was reviewed in 2013 and proposes policy priorities in grid-based power supply,renewable energy, rural electrification, transport, petroleum and substitute fuels, energy andenergy efficiency.4. Clean Development Mechanism (CDM) Policy guideline (2010) is intended to act as an aid inadministering, managing, facilitating and controlling CDM Processes in Fiji. The purpose of theCDM is to benefit both the investor and host countries by contributing to sustainabledevelopment in the host developing countries and by allowing investor countries to meet theirGHG reduction targets at the lowest possible cost by taking advantage of the lower marginal11

cost of reducing GHG emissions in developing countries. It is the sole prerogative of the hostcountry to confirm whether the project contributes to its sustainable development. The intentof the guideline is to facilitate an enabling environment for CDM projects in Fiji, as well as toestablish a framework for identifying preferred sectors based on national and community-basedsustainable development priorities, mitigation potential and the cost of mitigation.5. A National Climate Change Adaptation Strategy (NCCAS) for the land-based and marine-basedsectors is in preparation.6. The 2009 National Capacity Self-Assessment (NCSA) has a list of 5 priority climate changeprojects: i) Fiji’s Greenhouse Gas Inventory, ii) Establish Carbon Trading Administration Unit, iii)identify and implement National Renewable Energy Projects under Fiji’s CDM project, iv)replicate best practice community based adaptation project and v) strengthening of capacity fordata storage and network for Fiji Meteorological Services.7. In 2014, Fiji hosted its first National Platform on Climate Change and DRM. The platform bringstogether national and sub-national representatives to discuss actions on climate change andDRM. The outcomes of the summit will help to inform implementation of the National Policyand future planning processes.8. In 2014, Fiji released its Second National Communication (SNC). The SNC to the UNFCCC followsand builds on the Initial National Communication (INC) submitted in 2005, and has beenprepared in fulfillment of Fiji’s obligations to the UNFCCC under Articles 4 and 12. The SNCincludes information on Fiji’s Greenhouse Gas Inventory for 2004 because of unavailability ofdata for the year 2000.1.4Institutional ContextClimate change is addressed by many different Ministries, Divisions and organizations within the FijianGovernment. This “mainstreaming” approach on climate change drives an integrated and strategicagenda, but it can also be challenging to coordinate issues across so many different players. As such, Fijihas developed political and operational entities to achieve the goals set out in the NCCP.For example, in 1997, the National Climate Change Committee (NCCC) now known as the NationalClimate Change Coordinating Committee (NCCCC) was established with representatives from a range ofgovernment agencies, non-governmental organizations and academic institutions, including the Ministryof Strategic Planning, National Development, and Statistics, Climate Change Unit (now Climate ChangeDivision – CCD), Solicitor General’s office, Fiji Meteorological Services, Ministry of Education,Department of Lands, National Disaster Management Office, Ministry of Health, Department ofAgriculture, Department of Energy, Department of Transport, Department of Local Governance,Department of Environment and Ministry of Finance. The team was established primarily to facilitatethe development of the 2005 Fiji Initial National Communication to the UNFCCC Secretariat. The NCCCwas revived in 2010, and now serves as the main platform for coordination and information sharing. TheNCCC also provides direction and guidance to the Climate Change Division on climate change-relatedmatters.12

The NCCCC is supported by the operational and technical Climate Change Division (CCD) with its owndirector. The CCD is responsible for delivering the National Climate Change Policy and coordinatingclimate change programmes and projects in Fiji. The Division is one of four divisions of the Ministry ofForeign Affairs (MFA). The designated national focal point for the UNFCCC also moved to MFA. Therelocation of the Climate Change Division was a strategic move to strengthen political and nationalsupport for climate change activities in Fiji. The CCD was elevated from a unit to division in 2014.On the international level, Fiji does not currently have a National Implementing Entity (NIE) under theUNFCCC’s Adaptation Fund, and thus does not access any climate change funding directly. While theGCF direct access modalities are still being negotiated, Fiji has an important opportunity to identify andassess potential NIE candidates that can apply for accreditation under the Green Climate Fund as well asthe Adaptation Fund. The requirements under the Adaptation Fund and the GEF can be an importantguide in this endeavor.Fiji is also considering the establishment a National Climate Fund to support green growth and climatechange projects and programmes. The Fund would be a nationally-driven mechanism that integrateswith current systems on climate change, environment and finance to support the effective financing,delivery and monitoring of climate change initiatives. The Government is keen to explore options onhow the fund could operate and support the implementation of the NCCP. A key next step will be toconsider the options for the design of a Fiji National Climate Fund and identify how it can integrate withexisting systems, including an NIE, to streamline decision-making and finance on climate change.1.5Budgetary Cont

MoA – Fiji Ministry of Agriculture MoH – Fiji Ministry of Health MPDNDM – Fiji Ministry of Provincial Development and National Disaster Management MSP – Ministry of Strategic Planning MWTPU – Fiji Ministry of Works, Transport and Public Utilities NC –GCF Readiness Programme National Coordinator