PROJECT IDENTIFICATION FORM (PIF)
PROJECT TYPE: Full-sized Project
TYPE OF TRUST FUND:GEF Trust Fund
For more information about GEF, visit TheGEF.org
PART I: PROJECT INFORMATION
Project Title:
Country(ies):
GEF Agency(ies):
Other Executing Partner(s):
GEF Focal Area (s):
Name of parent program (if
applicable):
 For SFM/REDD+
 For SGP
Market Transformation and Removal of Barriers for Effective Implementation of the StateLevel Climate Change Action Plans
India
GEF Project ID:1
5361
UNDP
GEF Agency Project ID:
4606
Ministry of Environment and
Submission Date:
01 April 2013
Forests (MoEF), GOI
Resubmission Date:
28 August 2013
Climate Change
Project Duration (Months)
48
Agency Fee ($):
355,722
A. INDICATIVE FOCAL AREA STRATEGY FRAMEWORK2:
Trust Fund
Focal Area Objectives
CCM-2
CCM-3
GEFTF
GEFTF
Total Project Cost
Indicative
Grant Amount
($)
1,497,775
2,246,663
3,744,438
Indicative Co-financing
($)
10,000,000
15,000,000
25,000,000
B. INDICATIVE PROJECT FRAMEWORK
Project Objective: To support the effective implementation of specific energy efficiency and renewable energy related climate
change mitigation actions identified in the State Level Action Plans on Climate Change for selected states in India
Grant
Trust
Indicative
Indicative
Project
Type
Expected Outcomes
Expected Outputs
Fund
Grant
Co-financing
Component
Amount ($)
($)
Framework for
TA
Successful and
(i) Prioritized and selected
GEFTF
1, 071,638
3,013,473
the
sustainable
climate change mitigation
implementation
implementation of
actions listed in the SAPCCs4
of climate change
priority CCM actions
(ii) Designed and implemented
mitigation
on energy generation3
common monitoring, reporting
options in the
and application of EE
and verification (MRV) system
SAPCCs
& RE technologies in
for selected climate change
selected states
mitigation actions of SAPCCs in
the selected states that provide
feedback into the SAPCC
process
Catalysing
Inv.
States are fully
(i) Implemented selected specific GEFTF
500,000
17,139,769
investments for
capable of identifying, priority energy-related climate
the application of
designing, planning,
change mitigation interventions
feasible CCM
financing and
that are scalable and replicable
measures
implementing CCM
in energy sector
1
2
3
4
Project ID number will be assigned by GEFSEC.
Refer to the reference attached on the Focal Area Results Framework when completing Table A.
Energy generation refers to both electricity and thermal energy production.
These should be technically and economically feasible and contribute to the achievement of the NAPCC objectives
GEF-5 PIF Template-December 27, 2012
1
actions that are in their
SAPCCs
TA
Capacity
development of
relevant state
government
officials in
Madhya Pradesh
and Manipur
TA
Relevant state
departments and other
stakeholders are
technically capable of
(a) integrating climate
change within
development plans and
budgets, and (b)
implementation of
robust MRV systems
to assess implemented
actions under the
SAPCCs
(iii) Mobilized public and
private sector investments in the
application of commercially
viable CCM technologies
(ii) Established public-private
partnerships in the
implementation of feasible
energy-related CCM projects
(iv) Replicated existing
successful policy and financial
tools that support the
implementation of CCM
technologies
(i) Developed climate-integrated
state budgets in line with the
development plans of the states
of Madhya Pradesh and Manipur
(ii) Completed capacity
development programs on the
measurement, reporting and
verification (MRV) of
implemented CCM actions under
the SAPCCs
(iii) Established institutional
mechanism for cross-learning
between selected states,
including information sharing
and technology dissemination to
facilitate climate change
mitigation actions
(iv) Completed inter-state crosslearning exposure/site visits and
consultation workshops on
priority CCM action
implementation for SAPCC
implementing agencies and
departments, as well interested
private sector entities and
investors.
(v) Prepared, published and
disseminated case studies, audiovisual and published lessons
learnt, and analysis of results of
the implemented priority CCM
actions in the SAPCCs
Sub-Total
Project Management Cost5
Total Project Costs
GEFTF
1,250,000
1,402,000
GEFTF
756,000
2,844,758
GEFTF
3,577,638
166,800
3,744,438
24,400,000
600,000
25,000,000
C. INDICATIVE CO-FINANCING FOR THE PROJECT BY SOURCE AND BY NAME IF AVAILABLE, ($)
Sources of Co-financing
GEF Agency
National Government
5
Name of Co-financier
UNDP
MoEF
Type of Co-financing
Cash
Cash
Amount ($)
500,000
2,000,000
Same as footnote #3.
GEF-5 PIF Template-December 27, 2012
2
National Government
Total Co-financing
MoEF
In-kind
22,500,0006
25,000,000
D. INDICATIVE TRUST FUND RESOURCES ($) REQUESTED BY AGENCY, FOCAL AREA AND COUNTRY: NA
E. PROJECT PREPARATION GRANT (PPG)7
Please check on the appropriate box for PPG as needed for the project according to the GEF Project Grant:
Amount
Agency Fee
Requested ($)
for PPG ($)8
 No PPG required.
________________
_ ___________
 (Up to) $50k for projects up to & including $1 million
___
________ ___
_____
 (Up to)$100k for projects up to & including $3 million
_______________ ______________
 (Up to)$150k for projects up to & including $6 million
___150,000______ ____14,250____
 (Up to)$200k for projects up to & including $10 million
________________ _____________
 (Up to)$300k for projects above $10 million
___
________ ___
_____
PPG AMOUNT REQUESTED BY AGENCY(IES), FOCAL AREA(S) AND COUNTRY(IES) FOR MFA AND/OR MTF
PROJECT ONLY: N.A.
PART II: PROJECT JUSTIFICATION9
A. Project Overview
A.1. Project Description:
Global environmental problems, root causes and barriers that need to be addressed:
Problem that the proposed project will address: The National Action Plan on Climate Change (NAPCC)
represents the baseline project for GEF purposes. Launched in 2008, the NAPCC represents a multi-pronged, longterm and integrated strategy for achieving key climate change goals: namely, “achieving national growth objectives
through a qualitative change in direction that enhances ecological sustainability, leading to further mitigation of
greenhouse gas emissions”, and “devising efficient and cost-effective strategies for end-use demand-side
management”. The NAPCC encourages planning and coordination at different levels, especially state (sub-national)
level. All states and Union Territories of India10 are preparing their State Level Action Plans on Climate Change
(SAPCCs), which define state-level objectives and strategies that are aligned with the objectives of the NAPCC. As
of July 2013, the SAPCCs of 9 states (Andhra Pradesh, Arunachal Pradesh, Madhya Pradesh, Manipur, Mizoram,
Rajasthan, Sikkim, Tripura, and West Bengal) have been formally cleared by the National Steering Committee
(NSC) on Climate Change of the Government of India. The proposed project will support the implementation of
SAPCC strategies in two target states, Madhya Pradesh and Manipur. These two states are among the most
vulnerable states in India. They have been selected as pilot states in the proposed project so as to (a) build on their
approved SAPCCs, which are now ready for implementation, (b) achieve geographical balance in project coverage,
and (c) cover diverse climatic conditions, so as to link diverse aspects and cross-learning between neighbouring
states. The two states also represent different techno-economic profiles in terms of technology cost, availability and
energy mix.
6
This is for funding the baseline activities that will be supported by ongoing GOI flagship initiatives on renewable energy, which
is the large scale solar deployment scheme (Solar Mission), and on energy efficiency, which is the Perform Achieve and Trade
(PAT) program.
7 On an exceptional basis, PPG amount may differ upon detailed discussion and justification with the GEFSEC.
8 PPG fee percentage follows the percentage of the GEF Project Grant amount requested.
9 Part II should not be longer than 5 pages.
10 India has 28 States and 7 Union Territories.
GEF-5 PIF Template-December 27, 2012
3
At the national level, the NAPCC has initiated eight “missions” (National Solar Mission, National Mission on
Sustainable Habitat, National Mission on Green India, National Mission for Sustaining the Himalayan Ecosystem,
National Mission on Enhanced Energy Efficiency, National Water Mission, National Mission for Sustainable
Agriculture, and National Mission on Strategic Knowledge on Climate Change). Of these missions the two most
relevant in the context of the proposed project are detailed below. These missions will accelerate the
implementation of a number of existing Government programmes, such as the Rural Electrification Programme, the
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), and the Decentralised Distributed Generation (DDG)
Programme.

The Mission on Enhanced Energy Efficiency promotes market-based mechanisms to enhance costeffective efficiency investments in energy-intensive large industries, accelerates the shift to energy-efficient
appliances, and proposes fiscal instruments (for example rebate on energy tariff for incorporating “green”
measures) to promote energy efficiency. Demand-side management, especially in municipalities, is one of
the priority areas of intervention. Municipalities account for 10% of the total electricity consumed in cities
in India and they spend about 60% of their budget on electricity bills. Several studies conducted in India
indicate that it is possible to improve the energy efficiency of municipalities by at least 20-25%.

The National Solar Mission aims to deliver 20,000 MW of solar power by 2022. The scale of financing
required to achieve NSM targets is enormous, in the order of US$ 90 billion. Mobilising private
investments through banks and financial institutions will have a crucial role to play in achieving this target.
To date, however, the total installed capacity of solar (PV and thermal) in Madhya Pradesh is just 11.7 MW
and 0.26 MW in Manipur. Indeed, in 2012-13 Madhya Pradesh reported an overall power deficit of 11%
(availability is only 46,829 GWh against a demand of 51,783 GWh)11. Similarly, Manipur has power
availability of 466,000 GWh against a peak demand of 488,000 GWh; a deficit of nearly 5%. While
Madhya Pradesh has huge potential for renewable energy-based power generation, the total installed
capacity of renewable energy-based power systems is still only 2.5% of the total installed power generation
capacity. The total installed electricity generation capacity in Manipur is around 158 MW. The bulk of this
is hydro (large and small), which will likely be adversely affected by future climate change. The installed
renewable energy capacity (solar, small hydro, wind and biomass) of the state is barely more than 3 MW.
Therefore, renewable energy capacity of Manipur is 2% of the state’s total installed power generation
capacity. In this context, the two states have prioritized renewable energy (RE)-based power generation
projects in their respective SAPCCs as one of the interventions to be supported by appropriate policies and
investment promotion.
At the sub-national level, state governments are responsible for developing state-specific action programmes for
the power, transport, industry, buildings, and municipal energy efficiency and forestry sectors in line with NAPCC.
There is a need to have greater synergy between national priorities and state-specific strategies, as it requires actions
in several sectors that are State subjects and have to be implemented in the States. In the preparation of SAPCCs,
the required GHG inventory data that are used in the preparation of SAPCCs are sourced from the national
inventory management system (NIMS) that was established as part of the National Communications process;
inventory estimation and management are not part of the SAPCC preparation process. The Government of India
will provide some financial support to state governments for the implementation of their SAPCCs. The collective
indicative budget of the SAPCCs of the two state governments of Madhya Pradesh and Manipur amounts to US$
24.5 million.
However, moving from development of a plan/strategy to implementation is a challenge for state governments
generally, and for Madhya Pradesh and Manipur specifically, because of a number of barriers: limited institutional
capacities, the absence of synergies between policies and incentive structures and limited technical capabilities to
design relevant programs and catalyse private sector investments. In Madhya Pradesh and Manipur, implementation
of the SAPCCs has not yet started. Effective implementation of the SAPCCs is important and delays can jeopardise
the achievement of NAPCC goals.
11
Source: http://www.cea.nic.in/reports/yearly/lgbr_report.pdf (accessed in July 2013).
GEF-5 PIF Template-December 27, 2012
4
Type of
Barrier
Awareness
and capacity
development
barriers
Institutional
barriers
Technical
barriers
Financial
barriers
Description
 Stakeholders, including government departments (notably the Pollution Control Boards,
Department of Environment, Commerce and Industry (State), Power, Energy, Industries,
Transports etc.), public enterprises, districts and local bodies such as zilla panchayats, have
limited awareness of climate change mitigation technologies and actions, including associated
cost-benefits (both technical and economic feasibility).
 Limited interest within the private sector for participation in the design, implementation,
monitoring, evaluation and review of interventions (e.g. very few Public-Private Partnership
(PPP) models/projects at state level in areas such as waste management, demand-side
management in municipalities, etc.).
 The role of stakeholders is not clearly defined for the implementation of SAPCCs.
 Limited capacity of state-level institutions to integrate climate change considerations within
their programmes and state budgets (e.g. creating state clean energy funds for deployment of
low-carbon technologies, providing soft loans routed through public banks, etc.).
 There is no formal institutional mechanism for cross-learning between centre and states or for
cross-sectoral collaboration.
 The absence of effective coordination between institutions, departments and stakeholders at
various levels on these issues.
 An appropriate institutional and incentive policy framework for adoption of climate change
mitigation technologies and strategies does not exist, and is exacerbated by conflicting state
priorities, with the result that there is only weak cohesion between institutional and incentive
structures for adoption of climate change mitigation technologies and actions.
 Limited information, knowledge and experience in linking climate change-relevant
technologies to development and economic planning and programmes at the sub-national
level (e.g., building energy security through available RE sources, low-carbon infrastructure
in public lighting, waste management, etc.).
 Limited capacities of the states to replicate and scale-up established models of climate change
mitigation technologies (e.g. linking with the Indian Renewable Energy Certificate (REC)
market mechanism).
 Financial institutions, especially at the sub-national level, have limited knowledge of proven
climate change mitigation technologies and strategies. Additionally, private investors are not
confident about performance-based payments (preferential tariffs).
 Inadequate regulatory incentives to encourage private investment through suitable and
affordable financing. According to the International Energy Agency, India spent more than
US$ 40 billion12 subsidizing fossil-fuels in 2011, which amounted to 3.4% of GDP13. These
subsidies are a huge burden on the government budget; they encourage wasteful energy
consumption, deter investments in energy efficiency and infrastructure, and reduce incentives
for renewable energy technologies.
Proposed alternative scenario with Incremental /Additional cost reasoning:
The Government of India realises the importance of SAPCC implementation and in this context seeks GEF support
to quick start and showcase the actual implementation select high level priorities of SAPCCs in two states, Madhya
Pradesh and Manipur. The proposed GEF project will involve the formulation and recommendation for approval
and enforcement of a suitable policy/regulatory framework to support the effective implementation of the climate
change mitigation actions in the energy sector as specified in the State-Level Climate Change Action Plans. Part of
that framework will be the policies and associated implementing rules and regulations to support the identification
and design of feasible NAMA quality climate change mitigation actions, and the implementation of the relevant
12
13
Source: International Energy Agency (IEA). World Energy Outlook 2012-Energy Subsidies, IEA/OECD: Paris
Source: International Energy Agency (IEA). World Energy Outlook 2010, IEA/OECD: Paris.
GEF-5 PIF Template-December 27, 2012
5
commercially available RE/EE technologies to facilitate these actions and bring about the expected energy savings
and the corresponding GHG emission reductions. Support policies and regulations on the application of identified
feasible financial instruments for different models of investments (government owned, Public Private Partnership or
sole private sector funding), as well as incentive schemes will be developed and be part of the policy/regulatory
framework. Also, in support of the institutionalization of a MRV system for the state-level CCM actions that will be
implemented, support policies and regulations for the enforcement of the MRV system institutional framework will
also be included among the policy/regulatory barrier removal activities.
To achieve the holistic approach envisaged in the NAPCC, it is important to showcase the inter-linkages between
the power, transport, industry, municipal energy efficiency and buildings sectors.
In this regard, select strategies to build energy security through renewable energy and energy efficiency of the states
will play an instrumental role in development of the state. The Government of India’s ongoing flagship initiatives
on renewable energy is large scale solar deployment scheme (Solar Mission) and energy efficiency is Perform
Achieve and Trade (PAT) scheme through cap and trade mechanism, will be given particular prominence under the
proposed project.
In 2001 Indian Parliament adopted a law on energy efficiency, known as the Energy Conservation Act. The law,
required large energy consumers to implement specific actions and so introduced various energy efficiency
programmes and performance standards including the flagship programme on emission trading scheme Perform
Achieve and Trade (PAT). PAT is a national market mechanism where each designated consumer (defined as per
EC Act 2001) will be assigned specific energy consumption (SEC) target to meet over a period of three years. Any
additional saving will qualify for issuance of energy saving certificates, which can be traded internally with other
designated consumers (short of targets) or through exchanges. In the future, the scope of this scheme may be
extended to cover prioritised cities, towns and municipalities. The proposed project will help prepare the ground for
such a PAT extension by demonstrating the effectiveness of energy efficiency measures that target municipalities.
The scope of complementary regulatory instruments, such as performance-based payments, capital subsidies, soft
loans, etc. for renewable energy and energy efficiency will also be explored during the PPG phase.
For renewable energy (RE) interventions in power and industrial sectors, the proposed project will build synergies
with the National Solar Mission, where some policy risks are already covered through the provision of fiscal
incentives. Particularly on renewable energy, Madhya Pradesh and Manipur are endowed with good solar energy
potentials of more than 5.5 kWh/m2/per day and 4.5 kWh/m2/day, respectively. It is estimated that 10% of the solar
energy potential of these 2 states can be productively utilized. At the moment, state governments have allocated
lands to private investors for the development of solar PV farms without proper due diligence. But private investors
are facing challenges in terms of technical and financial feasibility studies and closure of project financials. The
proposed project will, therefore, provide investment support for technical and financial feasibility studies.
Further, the project will identify potential private investors, involve them in project development through
appropriate PPP arrangements, will ensure projects receive benefits from existing fiscal instruments, and will
explore mechanisms to combine and sequence funds at the state level and leverage private sector investment. For
large-scale grid-connected solar PV systems, the project will facilitate the installation of 20 MW of solar PV in the
two target states through support to on-grid solar PV farms, each with a capacity of 2 MW or greater. The project
will also include de-risking of public and private investments in large-scale solar PV (over 2 MW). For municipal
energy efficiency, the proposed project will help state governments to identify appropriate technology, fiscal
instruments and market mechanisms to leverage public and private finance in the area of municipal street lighting
and municipal water pumping.
In India, monitoring the progress of such efforts and related impacts is a difficult task in absence of uniform
Monitoring, Reporting and Verification (MRV) system, and most international/private funding recommends the use
of such systems. Therefore, the proposed project will develop and implement MRV system for the two states, so as
to measure, monitor and report state level actions and its impact. An MRV system that captures both
implementation efforts and effects, would act as a useful tool for the national and sub-national governments to track
progress and identify need for international support. The framework will include a verification mechanism that will
ensure all data and information pertaining to actions (under renewable energy and energy efficiency) performance
indicators are measurable, comparable and can be applied to set of mitigation actions. A robust domestic MRV
GEF-5 PIF Template-December 27, 2012
6
system would also foster confidence and impart greater credibility to country financing needs through NAMA or
any other similar mechanism. However, the states will be responsible for monitoring and verifying the interventions
in line with a common protocol, and the proposed project will identify existing applicable standard methodologies
such as those applied in CDM (as well as relevant IPCC guidelines) for measuring, monitoring, reporting, and
verification of the actions taken by the states. The MRV system that will be developed under the proposed project is
intended to be institutionalized by the MoEF through its endorsement and application in the other Indian states for
state-level CCM initiatives based on the SAPCCs. With the implementation of the developed system in the 2 target
states, any necessary adjustment to the system processes/procedures can be made to ensure applicability of the
system in other states.
The following table summarizes the interventions of the proposed project that will contribute to incremental GEF
outcomes. Further details such as scenario analyses, identify ongoing and/or planned (and budgeted) projects in the
state that are implementing or will be implementing the projects of similar type, which will be clarified during the
PPG phase of the project.
Component/Outcome
1. Framework for the
implementation of
climate change
mitigation options in the
SAPCCs/Successful and
sustainable
implementation of
priority CCM actions on
energy generation and
application of EE & RE
technologies in selected
states
Subtotal
2. Catalysing
investments for the
application of feasible
CCM measures/States
are fully capable in
identifying, designing,
planning, financing and
implementing CCM
actions that are in their
SAPCC
GEF-5 PIF Template-December 27, 2012
Details on TA/Inv. of GEF grant and
barriers that will be addressed
 Prioritization of climate change mitigation
 GEF TA support is directed mainly
actions listed in the SAPCCs in terms of
towards (a) increasing understanding
feasibility and linkages with the NAPCC
amongst diverse stakeholders on
objectives, specifically relating to the
climate change impacts and related
energy sector with a focus on large-scale
interventions in RE and EE, and (b)
solar PV (RE); and energy efficiency in
development and implementation of
municipalities (EE).
MRV system.
 Design and implementation of a common
 Awareness and capacity
monitoring, reporting and verification
development barriers: stakeholders
(MRV) system for selected climate change
at sub-national level are aware of
mitigation actions of SAPCCs in Madhya
climate change mitigation
Pradesh and Manipur.
technologies and actions, including
associated cost-benefits.
GEF grant US$ 1,071,638 + Co-financing US$ 3,013,473 = US$ 4,085,111
 Demonstration of specific climate change
 GEF TA is towards the identification
mitigation actions in RE (solar PV-based
of private sector investors; assisting
power generation), and EE (energy
the proponents of the investment
efficiency and energy conservation
projects to avail fiscal incentives;
measures in municipalities such as efficient
and assisting them in accessing
street lighting, efficient water distribution,
combined public and private sector
etc.) with a potential for scale up and
funding to scale up investments. In
replication.
this way, states will be fully enabled
to identify, design, plan, finance and
 The scope of regulatory instruments (for RE
implemented climate change
- performance based payment, capital
mitigation interventions. The GEF
subsidies, soft loans; for EE - risk insurance
investment support is for the
scheme and ESCOs) will also be explored.
technical and financial feasibility
GEF support will be for the design and
studies and actions needed to
operationalization of the mechanisms (i.e.
integrate the developed MRV system
design, establishment and training needs –
into the investment projects.
not for capitalising the instruments).
 Technical and financial barriers: (a)
 Lessons learnt through MRV system will
replicated and scaled-up established
provide feedback into the SAPCC
models of climate change mitigation
development and implementation process.
technologies, and (b) financial
 Establishment of public-private
institutions at the sub-national level
partnerships and mobilization of public and
fully support the RE and EE
private sector investments.
investments & increased private
 Scale-up and replication of policy and
sector involvement.
financial tools.
 Institutional barriers: adoption of
climate change mitigation
Proposed Project Interventions
7
Subtotal
3. Capacity development
of relevant state
government officials in
Madhya Pradesh and
Manipur/Relevant state
departments and other
stakeholders are
technically capable in
(a) integrating climate
change within
development plans and
budgets, and (b)
implementing,
monitoring, and
verification of SAPCC
interventions
Subtotal
Grand Total
technologies and strategies through
appropriate institutional and
incentive policy framework at the
sub-national level.
GEF grant US$ 1,750,00014+ Co-financing US$ 18,041,769 = US$19,791,769
 Identification of opportunities and
 TA support is mainly towards (a)
establishment of institutional mechanism
facilitation of knowledge sharing
for cross-learning between selected states
mechanism between centre and state,
including information sharing and
(b) provide a platform for review
technology dissemination to facilitate
and discussion on results of climate
climate change mitigation actions.
change planning and implementation
to provide policy advice, and (c)
 Targeted programmes for different
document and disseminate good
stakeholders to strengthen their capacities
practices/ learning of SAPCC at the
for implementation of measurement,
state level.
monitoring, reporting, and verification
related to the SAPCCs.
 Institutional barriers: cross-learning
between selected states and
 Inter-state exposure/site visits and
increased information sharing and
consultation workshops held for crosscoordination.
learning by implementing agencies and
departments as well as for increasing
 Awareness and capacity
private sector and investor interests.
development barriers: states are
geared to develop climate-integrated
 Development of methodology for
state budgets in line with the
integrating climate change within
development plans of the states of
development plans and budgets at the state
Madhya Pradesh and Manipur
level
GEF grant US$ 756,000 + Co-financing US$ 3,344,758 = US$ 4,100,758
US$ 27,977,638 (excluding project management cost)
Global environmental benefits analysis:
To develop a conservative estimate of the probable “order-of-magnitude” estimate of GHG emission reductions that
are attributable to the proposed project, it is considered that the main sources of direct lifetime GHG emission
reductions are through catalysing investment activities: (a) solar PV-based power generation (on-grid; with
capacities over 2MW); and, (b) energy efficiency and energy conservation measures in municipalities like end-use
efficiency of municipal street lighting and municipal water pumping. For waste-to-energy interventions,
technologies have not yet been identified by the states. Therefore, related emissions reductions are not included in
the analysis here, with the result that the estimates presented here can be considered conservative. The project is
also expected to influence and catalyse wider adoption of improved EE and RE technologies, establishing
commercial viability of technologies, improving access to finance and increasing investors’ interest.
For EE interventions in three municipalities across the two target states, 15% energy efficiency improvement is
considered. Taking the average annual electricity consumption of a municipality as 130,000 MWh/y, assuming an
average grid emission factor of 0.93 tCO2/MWh, and assuming a useful life of interventions over 10 years across
the three municipalities, possible energy savings will be 585,000 MWh/y (195,000 MWh/y/city) and the potential
GHG emission reductions achieved will be 544,050 tCO2.
The Government of India (through the MoEF) co-financing is a combination of resources available under the “National Missions”
(energy efficiency and solar) as well as resources allocated to the states by the central Government for incentivising the
implementation of climate change mitigation actions under the SAPCCs. The state governments are also allocating resources for the
implementation of their plans through state clean energy funds. The major portion of the co-financing is towards scaled-up
investments by the private sector, which will be tied to very specific types of investments guided by the respective state SAPCCs.
The state governments will also contribute to the respective activities through their state budget allocations as outlined in their
SAPCCs. It will be ensured that the various types of investment projects that can be supported by the MoEF grant will be determined
and established during the project design phase. The stated MoEF co-financing for this project is the level best estimate of the initial
grant funds that will be earmarked for supporting state-level CCM projects.
14
GEF-5 PIF Template-December 27, 2012
8
GEF TA support is directed mainly towards identifying private investors, establishing PPPs, linking the projects to
access benefits from existing fiscal instruments, and explore mechanisms to combine and sequence funds at the
state level and leverage private sector investment. In this way, states will become fully capable of identifying,
designing, planning, financing and implementing climate change mitigation interventions. GEF investment support
is for technical and financial feasibility studies and actions needed to integrate the developed MRV system into the
interventions piloted. It is estimated that the potential GHG emission reductions achieved from solar PV power
generation units with a combined total installed capacity of 20 MW is about 358,459 tCO2 over 10 years of useful
lifetime of the project, assuming a capacity factor of 22% and grid emission factor of 0.93 tCO2/MWh.
These figures are rough estimates based on a conservative notion of the possible interventions that will be
implemented under the proposed project. However, the actual selection of the interventions will be done through a
broad stakeholder consultation process during the PPG phase, with an emphasis on those interventions that have the
potential to scale-up and replicate in selected sectors.
Innovativeness, sustainability and potential for scaling up:
The proposed project will facilitate the implementation of climate change mitigation actions stated in the SAPCCs;
maximise the benefits through exploring inter-state cooperation; showcase the actual implementation of SAPCCs;
demonstrate institutional mechanisms for inter-state networking and cross-learning, including information sharing
and technology dissemination; and develop and implement a common monitoring system to assess progress on the
SAPCCs in the select states. The SAPCCs are regarded as innovative inasmuch as they are a manifestation of the
level of commitment of local governments in India to address climate change, and these also open up opportunities
for the private sector in effectively (and gainfully) participating not only in the provision of services (e.g., energy
supply) to the states but also in accelerating the uptake of commercially available technologies that are applied to
mitigate climate change. However, this innovation will come to naught if these plans are not implemented. Focusing
on the effective facilitation and enabling of the implementation of the SAPCCs in the 2 states is expected to result in
the achievement of the planned targets. The other Indian states can adjust and implement their SAPCCs based on
the experiences and lessons learned from the SAPCC implementations in the 2 states which would lead to the
achievement of individual (state) objectives but also the collective (Mission-level) targets at the national level
(NAPCC).
One of the criteria for the selection of interventions, as listed in SAPCCs, is the potential to scale-up and replicate.
The proposed project will leverage private sector investments through combining existing financial mechanisms
such as the PAT, and will also explore mechanisms for combining and sequencing of funds at the state level. In that
regard, the proposed project will have high potential for scale-up and sustainability.
A.2. Stakeholders:
Stakeholder
MoEF
United Nations
Development
Programme (UNDP)
State governments of
Madhya Pradesh and
Manipur
Ministry of New and
Renewable Energy
Role
MoEF is responsible for the overall supervision and management of the project preparation
activities. MoEF will be involved in the project preparation as one of the stakeholders, provide
required inputs to the project design, CEO endorsement request documentation and its review. It
is also the Coordination Unit for the implementation of the NAPCC.
UNDP will lead the process of project preparation during the PPG phase by involving all the
relevant stakeholders in the project design, preparation of required documentation for CEO
endorsement and its review. UNDP will serve as the GEF implementing agency for the
proposed project. It will carry out monitoring and evaluation of the project preparation
activities, facilitating the budgetary provisions and support in implementing the project
preparation activities.
State governments will be involved in the project preparation, implementation and monitoring
of activities as key stakeholders. They will provide critical inputs for project design, which will
require consultation and coordination with different stakeholders. Within the state governments,
the nodal agencies for the preparation of the SAPCCs will be the lead partners in the project
design stage, and are expected to contribute significantly at the implementation stage as well.
The Ministries will be involved in the project preparation, provide required inputs to the project
design, CEO endorsement request documentation and its review. Also, each ministry has a
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9
Sources (MNRE),
Bureau of Energy
Efficiency (BEE),
Ministry of Power
(MoP)
Financial institutions
Civil Society
Organizations
Academic Institutions
specific agenda and role identified in the NAPCC. The Ministry of New and Renewable Energy
(MNRE) and the Bureau of Energy Efficiency (BEE) are responsible for the National Solar
Mission and National Mission on Enhanced Energy Efficiency, respectively. Consultations and
coordination with these relevant ministries will provide inputs for planning, design and
implementation of the project activities.
Financial institutions (including public and private sector banks, venture capitalists, etc.) will be
involved in the project preparation as one of the key stakeholder constituencies, provide
required inputs to the project design, and CEO endorsement request documentation.
CSOs (e.g. the CSOs that have been involved in the SAPCC preparation process, such as the
Centre for Environment Education, Global Information Earth Survey, etc., will be involved in
the project preparation as stakeholders, provide required inputs to the project design, and CEO
endorsement request documentation.
Academic institutions (again those active during the SAPCC preparation, such as IIM Indore,
Barkatullah University and Jiwaji University) will be involved in the project preparation as
stakeholders, provide required inputs to the project design, and CEO endorsement request
documentation. Their role in the project is to provide expert opinion and technical support in the
identification of potential appropriate climate change mitigation actions in the energy sector that
can be supported under the project.
A.3 Risk:
The following table summarizes the anticipated risks that might prevent the successful implementation of the project
and achieving the project objectives, including the proposed climate change mitigation measures:
Risks
Lack of active
involvement of the
relevant private sector
entities like private
investors, power project
developers,
manufacturers, ESCOs
etc.
Limited involvement of
sector agencies and
stakeholders in the
climate change mitigation
options identified
Delay in the adoption of
priority actions outlined
in the SAPCCs by the
state government sectoral
departments.
Impact of climate change
on the proposed
interventions due to
change in climate
variables including
precipitation, humidity,
wind speed and
cloudiness
Limited institutional
capacities to support
project implementation
GEF-5 PIF Template-December 27, 2012
Risk
Rating
L
M
M
L
M
Mitigation Measure
MNRE, MoP and BEE have schemes to encourage the private sector through
incentive scheme to promote renewable energy and energy efficiency applications –
facilitating the availability of financing for investments in SAPCC implementation
as well as availability of capital loans and generation-based incentives to project
developers. The project will help designing and operationalizing these aspects and
institutional arrangements of the fiscal instruments, and to support interventions in
the nascent RE and EE market at state level.
One of the prime focuses of the project is strengthening stakeholder capacities and
facilitating their involvement in the climate change mitigation actions identified.
This will be undertaken largely under the capacity development component of the
project. The project will address constraints related to access to finance through
market-based frameworks and de-risking the investment environment.
The MoEF will be monitoring the SAPCC implementation. If states are not active
they will not be able to utilize development funds earmarked under different
Missions. So, MoEF is encouraging the state governments and monitoring the
progress of state plan implementation. The project will provide technical support to
the State Nodal Agency (SNA) in influencing the sectoral decisions and the
budgetary process for accelerating adoption of priority climate change mitigation
actions outlined in the SAPCCs with the relevant departments.
Both the states have subtropical dry climate which is suitable for solar
applications. Change in temperature and level precipitation to an extent will not
have any significant effect on the solar insolation.
The technical and financial support, including the co-financing leveraged through
the project, will address this risk by building and retaining the necessary technical,
managerial and implementation capacities during the project life and beyond.
10
and programme
continuity at the state
level
Lack of financial
institutions’ sustained
commitment for
implementation of
SAPCC
M
The project will promote common principles for planning and implementation, but
with sufficient flexibility to take account of differences in institutional frameworks
and in capacities of the state governments. The planning process will emphasise
multi-stakeholder engagement to ensure inter-departmental coordination,
Engaging financial institutions at different levels and providing cost-benefit analysis
of different technologies. One of the mechanisms could be developing and
advocating for regulatory reforms to improve the business environment in the
priority areas identified.
A.4. Coordination: Outline the coordination with other relevant GEF financed and other initiatives:
The MoEF, as the nodal Ministry for this GEF project, will coordinate with the relevant institutions and the
proponents/implementers of other existing related projects/programs in India to avoid duplication of efforts, and
enhance the complementarity and synergy between these projects. The project will build synergies with other ongoing national initiatives, GEF and non-GEF projects in the area of energy efficiency and renewable energy. The
on-going GEF projects are (a) energy efficiency in buildings, (b) Energy efficiency in steel industries, (c) Solar
water heaters, (d) Solar concentrators for thermal applications, (e) Energy efficiency in SMEs, (f) Biomass
Energy for Rural India (BERI), (g) Biomass power projects, etc. Some of the completed GEF projects are (a)
Hilly Hydel; (b) High-rate Bio-methanation; (c) Energy efficiency in Tea industry; etc. Most of these projects
have successfully demonstrated the application of either renewable energy or energy efficiency measures. With
regard to to renewable energy generation, some of these projects have provided useful lessons on the importance
of preferential tariff support for small-scale power generation through targeted policy measures and financial
tools – such as performance-based payment, capital subsidies, soft loans etc. – which will be detailed during PPG
and will avoid any potential duplication of efforts and double-counting of GEBs. There is considerable scope for
the replication of these successful measures and tools in the proposed project. The proposed project will also
coordinate with projects of the World Bank, such as line-of-credit provision to IIFCL (India Infrastructure
Finance Company Ltd) for lending to solar power projects in India. On the energy efficiency side, lessons learnt
on some of the unsuccessful financial mechanisms, such as the risk insurance scheme and ESCOs in the context
of SMEs, is vital. All these experiences will be taken into account while designing and implementing pilot
interventions under the SAPCCs and linking possible options for scale-up.
A number of climate change planning initiatives are currently underway by various donor agencies in partnership
with the state governments. In particular, GIZ and UNDP are supporting the preparation of climate change action
plans in various states. GIZ has also selected some states for longer-term implementation assistance, but in most
of the other states the support from UNDP and GIZ has been mostly in terms of preparation of the SAPCCs. The
proposed project will complement this support by providing longer-term assistance for the implementation of
plans, and investing in knowledge and cross-learning between the states.
B. Description of the consistency of the project with:
B.1 National strategies and plans or reports and assessments under relevant conventions, if applicable, i.e.
NAPAS, NAPs, NBSAPs, national communications, TNAs, NCSAs, NIPs, PRSPs, NPFE, Biennial Update
Reports, etc.:
The project is directly supportive of, and consistent with, India’s national priorities and policies related to
climate change and development, and climate change relevant actions at the domestic level to address climate
change more specifically as specified in NAPCC. The 12th Five Year Plan emphasizes the centrality of a lowcarbon growth strategy at the national and state level for sustainable development. The proposed project will
coordinate with the ongoing India TNC project, where MoEF is leading the effort on the establishment of an
expert committee on NAMAs. It is proposed that more work will be done during the PPG phase in order to
establish baselines and inventories and prioritize a set of pathways that will be selected for the investment
portion of the project.
In addition to direct support to the NAPCC and the SAPCCs, the proposed project will support other national
policies/legislation/programs that are relevant, such as the National Environment Policy, the Energy
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Conservation Act, the Rajiv Gandhi Grameen Vidyutkaran Yojna (Rural Electrification Scheme), the Accelerated
Power Development and Reforms Programme (APDRP), the National Bio-Gas program, and other schemes such
as the Mahatma Gandhi National Rural Employment Guarantee Programme (MNREGA). The approach paper to
the 12th Five Year Plan of India also stresses the need to incorporate environmental issues, including climate
change considerations, into development planning. Capacity enhancement, technology development and climate
change mitigation are identified as priority areas for addressing climate change in the GEF-UNDP supported
National Capacity Self-Assessment - Thematic Assessment Report on Climate Change (2007). The proposed
project was discussed at length and endorsed as a priority in the GEF National Dialogue Initiative (NDI)15.
India submitted its Second National Communication (SNC) Report to the UNFCCC on 4th May 2012
(http://unfccc.int/resource/docs/natc/indnc2.pdf). The share of renewable energy is small when compared to the
total installed capacity, and the SNC specifically identifies the need for a significant program to support
renewable power, targeting 10% of new capacity additions by 2012. The SNC emphasizes the need for the
NAPCC to mandate a rapid increase in the share of renewable power. The SNC also highlights the need to
reduce energy intensity by 20% from the period 2007/08 to 2016/17 and initiate action to increase access to
cleaner and renewable energy sources. It is stated in the SNC that, in order to meet the goals under the NAPCC,
states should play a critical role and emphasizes a change in “direction, enhancement of scope and accelerated
implementation” of state-level actions through SAPCCs.
B.2. GEF focal area and/or fund(s) strategies, eligibility criteria and priorities:
The project aims to support the effective implementation of specific energy efficiency and renewable energy
climate change mitigation actions identified in the SAPCCs for select states in India. The project is in line with
the GEF strategic priorities - specifically, CCM-2 (promote market transformation for energy efficiency in major
sectors) and CCM-3 (promote investment in renewable energy technologies).
B.3. The GEF Agency’s comparative advantage for implementing this project:
UNDP is supporting the Government of India for the preparation of the SAPCCs in Andaman and Nicobar
Islands, Bihar, Chandigarh, Chhattisgarh, Jharkhand, Kerala, Lakshadweep, Madhya Pradesh, Uttarakhand.
UNDP has also facilitated the development of a Common Framework for the Preparation of the SAPCCs, and
also provided technical support to ten state governments directly in preparation of their plans. UNDP’s strong
partnerships with specific state governments and close involvement with nodal agencies at the state level will
enable effective implementation of the proposed project. Following the successful involvement in the
preparation of the SAPCCs, UNDP will bring an additional co-financing amount of US$500,000 to the proposed
project. UNDP will follow through with its work in enabling and supporting the implementation of the CCM
actions that are prioritized in the SAPCCs. The intention is that, with the successful implementation of the
investment projects, UNDP will support their promotion to other states to facilitate the financing of the scale up
and replication of the successful investment projects in relevant states.
UNDP has also facilitated the NATCOM preparation process, which has led to enhancement of the knowledge
base on emission sources and climate vulnerabilities. UNDP is supporting the Government of India, as well as
the state governments, in several initiatives aimed at removal of market barriers to energy efficiency
improvements in selected energy intensive sectors, including SMEs (such as steel-re-rolling, brick making and
tea processing), buildings, transport (including urban transportation and in the railways sector), and adoption of
renewable energy technologies, particularly biomass, solar (solar water heaters and solar concentrators) and
hydro. The experience and lessons from these initiatives will directly feed into the state-level approach
envisaged in this project. For instance, the GOI-GEF-UNDP initiative on energy efficiency improvements in the
commercial buildings sector is aimed at removal of barriers for the adoption of the ECBC (energy conservation
building codes), the actual implementation of which will be dependent on actions at the state level.
15
National consultative forum convened by Government of India for each GEF programming cycle to review the GEF portfolio, and
prioritize new interventions.
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12
The proposed project will directly contribute to the realization of the goals of reducing the impact of climate
change, increasing access to clean energy and adoption of energy efficient measures under the new CPAP for the
period 2013-2017. Under the new CPAP period, UNDP will also specifically support the Government in
implementation of the SAPCCs.
The Energy and Environment Unit (EEU) of the UNDP CO has a Head, a Climate Change Advisor and seven
programme officers who support implementation of projects related to the different GEF focal areas, including
climate change, biodiversity, land degradation and chemical management. Backed up by technical expertise
available in the UNDP Asia-Pacific Resource Centre (APRC) based in Bangkok, Thailand, the India Country
Office has sufficient staff to effectively supervise the implementation of this project. A professional staff
member from the Country Office (EEU) will be responsible for oversight and project assurance, and will
represent UNDP in the NSC. Expertise of other professional staff in EEU in climate change renewable energy
and energy efficiency will also be utilized, when necessary, to support implementation of the project.
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PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND
GEF AGENCY(IES)
A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE
GOVERNMENT(S):
NAME
Shashi Shekhar
POSITION
Additional Secretary, GEF
Operational Focal Point (a.i.)
MINISTRY
Ministry of Environment and
forests, Government of India
DATE
04/23/201316
B. GEF AGENCY(IES) CERTIFICATION
This request has been prepared in accordance with GEF/LDCF/SCCF/NPIF policies and procedures
and meets the GEF/LDCF/SCCF/NPIF criteria for project identification and preparation.
Agency
Project Contact
Coordinator,
Signature
DATE
Email Address
Person
Telephone
Agency name
Adriana Dinu
04/01/2013
Butchaiah Gadde,
+66 2304
butchaiah.gadde
UNDP/GEF
Regional Technical
9100 ext
@undp.org
Officer-in-Charge
Specialist
5048
EITT
16
The correct LOE (dated 23 April 2013) is submitted along with this revised version of the PIF.
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14