The NDC Support Facility (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 an established trust fund under the umbrella of the Climate Support Facility (CSF), a new flagship climate trust fund launched ahead of the fifth anniversary of the Paris Agreement, which seeks to align green economic recovery efforts with countries national climate goals and long-term, low-carbon, climate-resilient strategies. Activities of the NDC-SF are implemented in close coordination with and in support of the country engagement process of the NDC Partnership, a global coalition of developed and developing countries and international institutions, including the World Bank Group, working together to mobilize financial and technical support to achieve countries’ climate goals and enhance sustainable development.
Managed by the World Bank Group, the NDC-SF channels funds to Bank Group teams that are working towards implementing the climate change targets set out in the NDCs of client countries. It seeks to support rapid, material action on implementation at the country level, including on NDC-related policy, strategy and legislation, budgeting and investment, as well as monitoring and evaluation frameworks. NDC-SF grants contribute to a host of activities such as analytics and knowledge sharing, capacity building, and improving cross-sectoral coordination among government stakeholders, donors and private sector entities. The NDC-SF works with other trust funds at the World Bank Group and with the IFC to maximize financial leverage for in-country climate action.
The NDC-SF also supports the Coalition of Finance Ministers for Climate Action, via the Climate Action Peer Exchange. The Coalition aims to help countries mobilize and align the finance needed to implement their national climate action plans; establish best practices such as climate budgeting and strategies for green investment and procurement; and factor in climate risks and vulnerabilities to members’ economic planning. Since its launch in April 2019, finance ministers from over fifty countries have signed on to the 'Helsinki Principles', a set of six aspirational principles that promote national climate action, especially through fiscal policy and the use of public finance.
Related initiatives: Public-Private Infrastructure Advisory Facility (PPIAF)
With support of: Federal Ministry for Economic Cooperation and Development (BMZ)
The NDC-SF is funding “deep-dives” in a select number of countries. The objective of the initiative is to deploy a whole-of-government approach and scale NDC relevant investments that support a range of actions for NDC implementation and enhancement. The support informs the development of long-term strategies for climate resilience and low-carbon growth. Support is tailored to country-specific conditions and needs and ranges from upstream strategy and planning to downstream actions that correspond to one or more of the NDC-SF’s guiding thematic pillars, namely i) Policy, Strategy and Legislation (ii) Budgeting and Investments (iii) Monitoring & Evaluation.
Caribbean region
The Deep Dive takes an economy-wide approach to accelerating NDC planning and implementation. It focuses on:
i) Strengthening governance, institutional, legal and regulatory frameworks;
ii) Identifying cost-effective policies and investment operations; and
iii) Improving climate finance readiness for NDC implementation.
While NDC planning and implementation are nationally driven processes, the Organization of Eastern Caribbean States (OECS) countries, Dominica, Grenada, St. Lucia, St. Vincent and Grenadines and Antigua & Barbuda have shared NDC priorities, challenges and gaps in NDC implementation. The Deep Dive takes a regional approach to directly support efforts at the national level in these countries as well as other regional activities that are aimed at helping them scale up their NDC implementation. Support is directed at identifying policies, and more importantly, investment options that deliver desired climate change outcomes, in the context of the country’s economic and social goals and the overall development context. By improving climate finance readiness, the Deep Dive also seeks to build capacity for accessing climate finance for NDC implementation. It encompasses multiple sectors including Environment, Energy, Transport, Rural Development, Urban Development and Finance.
The Deep Dive engages Ministries of Environment, Finance and their equivalents in the OECS countries.
Colombia
The Deep Dive supports the government to enhance technical capacity, institutional readiness and cross-sectoral coordination for advancing NDC implementation specifically in the energy, transport, industrial, solid waste and green finance sectors. It aims to deliver transformative impacts through activities such as:
i) Supporting the design and implementation of a national programs on green urban mobility and on modernizing and greening the trucking fleet;
ii) A national program to promote energy efficiency and demand side management;
iii) Supporting Colombia with its green tagging efforts as well as with the issuance of its first sovereign green bond; and
iv) Designing a solid waste management and reuse pilot program.
Lessons from these initiatives at the national and local levels are also expected to inform the government’s update of its NDC and the development of a long-term strategy for climate resilience and low-carbon growth.
A wide range of government counterparts are engaged and supported including the Ministry of Finance and Public Credit, Ministry of Housing, Cities and Territories, Ministry of Energy, Ministry of Trade, Industry and Tourism and Ministry of Transportation.
Philippines
The Deep Dive seeks to enable key climate adaptation and mitigation investments and introduce best practices to support the implementation of Philippines' NDC, and increase its ambition in line with the NDC revision cycle. Under three mutually reinforcing pillars, the Deep Dive seeks to:
i) support the implementation of priority reforms to the Risk Resiliency Program to strengthen the achievement of national adaptation priorities through multi-sectoral public planning and budgeting processes;
ii) mainstream adaptation in key sectors, strengthening analytics and tools for identifying and integrating key climate adaptation measures in the agricultural, coastal and infrastructure sectors;
iii) support climate mitigation efforts using carbon-pricing instruments, as well as support engagement with the private sector on key areas of climate action.
Support is primarily provided to counterpart ministries of the target sectors including the Department of Environment and Natural Resources. The Deep Dive encompasses the Agriculture, Coastal Resilience, Energy, Transport, Finance and Environment sectors.
South Africa
The Deep Dive supports the government’s implementation and update of its NDC, engaging multiple sectors such as Energy, Transport, Water, Urban Development, Finance and Environment. Activities are centered around three pillars:
i) Supporting transformative policy: climate change is integrated into macro-fiscal planning and budgeting processes, and the NDC translated into concrete actions, with a focus on
carbon budgets and sectoral emission targets and implementation of the national carbon tax;
ii) Closing the financing gap: infrastructure investment needs to achieve the NDC and vision for 2050 are being assessed and capacity building is targeted at enabling the country to access and monitor the use of international climate finance;
iii) Sectoral and spatial actions: a roadmap and implementation plan is supported for sectors at the nexus of land-use, water, and energy, as well as geographical hotspots, which are priority areas for the country’s 2050 outlook.
Support is primarily provided to counterpart agencies including the Department of Environment, Forestry, and Fisheries, National Treasury and the Department of Mineral Resources and Energy.
Rwanda
This Deep Dive seeks to enhance the capacity of the government of Rwanda to advance financial innovation for accelerating climate action for both mitigation and adaptation. It helps identify, design and operationalize financial instruments and initiatives to leverage private sector climate investments into a broad range of sectors: transportation, water, waste, energy, forestry and disaster risk management and risk financing.
The project will support Rwanda’s Green Fund (FONERWA) and Ministry of Finance and Economic Development (MINECOFIN) to develop the capacity to mobilize significant amount of additional finance through the development and piloting of new innovative instruments and institutional structures. The financial instruments and initiatives will be implemented by FONERWA, in collaboration with the Ministry of Environment, sectoral agencies, MINECOFIN, and Rwanda’s Development Bank. Activities support incubation of transformative flagship projects, complementing the revision of Rwanda’s NDC, which the country submitted to UNFCCC.
Vietnam
The Deep Dive informs the design, budgeting, coordination and monitoring of policies and investments for the implementation of Vietnam's NDC by leveraging the Bank's sectoral engagements around four critical climate transitions:
i) low carbon energy;
ii) low carbon and resilient transport;
iii) climate-smart landscapes;
iv) and green and resilient urban development.
It complements these sectoral engagements with tools to support a whole-of-government approach, particularly through improvements to investment planning and budgetary processes, the application of fiscal levers, and strengthening overall coordination and accountability
processes. The Deep Dive provides support for key components of Vietnam’s Plan for Implementation of the Paris Agreement. The work also presents an opportunity to support an increase in climate-relevant ambition across a variety of sectors, with a key focus on well-informed mitigation and adaptation targets and pathways to achieve them. Activities under the Low Carbon Energy and Climate Smart Landscapes Transitions also have a specific focus on the development and strengthening of monitoring and evaluation systems.
The Program will engage government counterparts across ministries including the Ministry of Environment and Natural Resources, the Ministry of Planning and Investment, the Ministry of Finance, Ministry of Transport, among others.
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The NDC Partnership is a coalition of countries and institutions working to mobilize support and achieve ambitious climate goals while enhancing sustainable development.
