At a Glance
|Strategic Outcomes||SO1, SO2, SO6|
|Start Date||Q1 2019|
|End Date||q4 2022|
|Actual Budget (USD)||4,415,152|
|Actual Expenditure (USD)|
|GGGI Share (USD)|
|Poverty and Gender Policy Markers|
|Name of Client (Lead/Prime implementer if GGGI is part of a consortium)|
|Participating Organization (Funding/donor)||Australia High Commission ( Department of Foreign Affairs and Trade)|
|Name of consortium members, if any|
Papua New Guinea (PNG) has experienced consistent economic growth and made steady yet modest progress across various social development indicators since the early 2000s. However, this has mainly been driven by reliance on non-sustainable extraction and export of oil, gas, and minerals. PNG is characterized as a dual economy, with extractive industries providing a large share of GDP and government revenue, while subsistence agriculture supports nearly 80% of the population. Recent economic prosperity has helped drive improvements in social conditions such as increased life expectancy and education. However, overall, translating economic growth into strong quality of life gains for most ordinary citizens remains a major challenge.
Climate change also presents a challenge to PNG’s future economic growth and social development prospects. Floods are estimated to cause USD 8-20 million of damage and affect up to 26,000 people each year on average. Landslides that result from heavy rainfall destroy houses and roads, cutting off access to remote communities. Livelihoods dependent on agriculture, as well as coastal ecosystems (coral reefs and mangroves) are particularly vulnerable to climate change impacts. If left unchecked, it is estimated that climate change could cause losses of up to 15% of the country’s GDP by 2100.
Despite these challenges, PNG has an abundance of natural resource assets that, if harnessed properly, can deliver substantial economic and social development benefits. In recognition of these challenges and opportunities, the Government of PNG (GoPNG) has crafted a bold and transformational long-term development strategy in PNG Vision 2050 and the National Strategy for Responsible Sustainable Development (StaRS). The strategy states that strengthening PNG’s climate resilience and pursuing an inclusive, green growth development path are the focus of GoPNG’s development strategy.
Achieving this vision will require GoPNG to embed inclusive climate resilient green growth (CRGG) into its development planning processes and to convert these plans into concrete, investible CRGG initiatives. Although various development partners have supported GoPNG in environmental sustainability, social inclusion, gender equality, climate change adaptation, or economic development in recent years, such efforts have mostly been very localized, project-driven and not subsequently replicated or scaled up.
Through Australia funding, GGGI is supporting the GoPNG to achieve Inclusive Climate Resilient Green Growth in PNG’s provinces since 2019. The broader vision underpinning this project is to eventually see inclusive CRGG priorities be systematically mainstreamed into the regular planning, budgeting and project management systems of provincial governments in all 22 provinces of PNG.
For this four-year project the anticipated end outcomes are that PNG is planning for climate resilient green growth in multiple sectors and provinces and is delivering green growth projects with leveraged finance.
The project focuses in three provinces (Enga, Milne Bay and New Ireland), recognizing that systematic mainstreaming of CRGG into provincial planning, budgeting and project management systems has never been done before in PNG and will require an approach to be tested and refined.
Specifically, the project supports GoPNG to achieve the following long-term targets outlined in PNG Vision 2050 and StaRS:
• Shifting the composition of economic growth to 70% of GDP being derived from renewable or sustainable sectors by 2050;
• Ensuring over 50% of PNG citizens are supported to become more resilient to climate change by 2050;
• Achieving inclusive growth, with PNG ranked in the top 50 countries in the UN Human Development Index by 2050.
The project proposes to deliver a set of outputs grouped into 3 interrelated components: (1) Provincial CRGG planning; (2) CRGG project preparation; and (3) Enabling finance for CRGG. The outcomes for each component are below:
• Component 1 outcome: the successful integration of CRGG into provincial planning processes.
End of Project indicator/target: CRGG priorities successfully mainstreamed into the Medium-Term Development Plans and/or Annual Development Budgets in three provinces.
Intermediate indicator/target: National and provincial authorities have improved capacity for CRGG planning and budgeting.
• Component 2 outcome: PNG authorities are mobilizing climate finance for high quality CRGG projects.
End of Project indicator/target: USD 20 million mobilized for CRGG projects, with at least one project designed to deliver socio-economic co-benefits to women and girls that meet the W+ certification standard .
Intermediate indicator/target: Pipeline of projects in three provinces identified and approved for preparation.
• Component 3 outcome: PNG has identified new financing options and vehicles for CRGG.
End of Project indicator/target: At least one new financing vehicle operationalized that helps diversify financing options available for CRGG.
Intermediate indicator/target: Proposals to address financing barriers to scale up CRGG activities are developed and agreed.
The project will be steered and guided by a Project Management Committee (PMC) consisting of Australia Department of Foreign Affairs and Trade (DFAT), Climate Change Development Authority (CCDA), Department of National Planning and Management (DNPM) and Department of Provincial and Local Government Affairs (DPLGA), and GGGI. The PMC will be in charge of progress reviews and approvals on major milestones as well as project plans. The project will be managed by a joint project implementation team of GGGI and CCDA; GGGI is in charge of the full range of tasks on project planning, administration, execution, output deliveries and donor reporting fully reflecting PNG’s institutional framework and requirement of Australia DFAT as well as following its established project management cycles and other organizational procedures and regulations. CCDA will provide project related oversights and agreements on day-to day project decisions. In addition, a Project Working Group provides technical direction and support to the project and ensures quality control of project workplans and key outputs prior to PMC’s approval.
Monitoring Evaluation, Reporting and Improvement
The project has a robust and systematic Monitoring Evaluation, Reporting and Improvement (MERI) plan. The latter outlines the full details of how MERI will be carried out during the project lifespan, in alignment with DFAT’s M&E Standards, GoPNG’s existing systems and processes, and GGGI’s corporate requirements. The main purpose of the MERI plan is to:
(1) to meet the transparency and accountability needs of the PMC, and
(2) to help drive learning and continuous improvement.
The plan has been developed based on a set of principles which include alignment with the management decision making needs of the project, results-based management approach, rooted in the theory of change and following a participatory and inclusive process.
Results so far
Since the project started implementation in 2019, the following activities have been completed:
• Signing three MoUs with the pilot provinces (Enga, Milne Bay and New Ireland) to promote ownership to facilitate institutionalization and scale-up;
• conducting initial scoping analysis, preliminary assessments for three provincial CRGG assessments and
• initial discussions with Bank of PNG to establish a credit guarantee corporation (CGC) for leveraging finance to delivering CRGG outcomes in PNG.
For 2020, the project aims to complete the following activities:
• CRGG assessments for three provinces (Enga, Milne Bay and New Ireland)
• Gender equality and social inclusion (GESI) assessments in the three provinces
• At least one investment plan for each province
• Bank of PNG and GGGI teams to work on the design of CGC and CRGG products and establish an industry consultative group to gather perspectives from entities involved in the demand and supply of climate finance
• Baseline data for capacity assessments of provincial and national authorities in mainstreaming CRGG into government planning and budgets established
• Reflection workshop to present 2020 project progress and outcomes and document key lessons for forward planning
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