Integrating Environmental and Climate Action into Development Co-operation

Germany

How are development programmes systematically integrating climate and environment objectives post-COVID-19?

Political commitments, strategies and tools

Germany’s political commitments

Germany is making a major contribution to the global implementation of the Paris Agreement by channelling a substantial part of its official development assistance (ODA) to climate purposes. Consequently, Germany is among the largest donors in the Development Assistance Committee (DAC) in the fields of environmental protection, forestry and energy, and uses its contributions to promote environmental sustainability and climate and nature protection in its partner countries. The high priority that Germany places on international climate finance is also demonstrated by announcements at the highest political level: Chancellor Angela Merkel initially committed to doubling climate finance from budgetary resources from EUR 2 billion to EUR 4 billion in 2020 at the Petersburg Dialogue and announced an increase of climate finance post-2020 to EUR 6 billion per year by 2025 at the latest at the G7 Leaders Meeting in 2021.

Germany acknowledges that climate change, biodiversity loss and environmental degradation pose high risks for the health of humans, animals and plants in a multitude of ways, and therefore consistently implements One Health approaches (e.g. via its One Health Strategy, issued by the Federal Ministry for Economic Cooperation and Development [BMZ]). To that end, Germany also joined more than 80 countries in 2020 in the Leaders' Pledge Nature to adopt and implement an ambitious Global Framework for Biodiversity, and committed to putting biodiversity, climate and the environment at the heart of the COVID-19 recovery strategies, investments and national and international development co‑operation.

Targets

• Climate and Environmental Finance: Germany plans to increase its climate finance by EUR 2 billion to EUR 6 billion per year by 2025 at the latest. Furthermore, Germany works intensively towards increasing the amount of finance committed to nature. In order to track its contribution to climate finance, as one example, the International Climate Initiative (IKI) by Germany’s Federal Ministry of the Environment, Nature Conservation and Nuclear Safety (BMU) recently introduced an additional standard indicator on the amount of climate and biodiversity finance mobilised or catalysed through its engagement. As a whole, the standard indicators provide an aggregated overview on the achievement of different metrics towards climate change mitigation, adaptation and biodiversity conservation, e.g. the number of people having received particular training to adapt to climate change impacts or the additional square kilometre of natural protection areas preserved.

• German Sustainability Strategy: To measure Germany’s progress towards implementing the 2030 Agenda – including in its development co-operation – the German Sustainability Strategy defines indicators, tackling e.g. global environmental impact by private household consumption (12.1.ba/bb/bc), contribution to international climate finance (13.1.b), prevention of deforestation and protection of soils (15.3.a) as well as the gross bilateral development expenditure for the implementation of the United Nations (UN) Convention to Combat Desertification (15.3.b).

• BMZ 2030: For both climate- and environment-related core areas, BMZ is currently developing standardised indicators to measure its success across its different activities. For all relevant projects, reporting of these indicators will be obligatory from 2022 on:

  • Climate and Energy standard indicators: Amount of reduced or avoided greenhouse gas (GHG) emissions (in tonnes of CO₂ equivalents); number of people directly supported in coping with climate change effects; number of people having gained access to modern energy supply for the first time; power (megawatts) of renewable energies for electricity supply additionally installed; electric energy (MWhel)/thermic energy (megawatt hours, MWhth) saved; number of people in urban areas profiting from newly created or improved sustainable basic supply, infrastructure or services.

  • Environment and Natural Resources standard indicators are currently being developed.

Strategies and policies for systematic integration

Specific programmes and policies of the BMZ and the BMU are mainly used as references in order to focus on the salient aspects of Germany’s development efforts and its link to environment and climate.

Concerning policies, the BMZ’s Development Policy 2030 Strategy recognises climate change, the destruction of the environment and growing resource scarcity among the main challenges for international development. Therefore, BMZ calls for "almost completely decarbonising consumption and production" and supports partner countries worldwide in their efforts to cut climate emissions and preserve their natural environments. In its new strategic reform concept, BMZ 2030, BMZ as Germany’s line ministry for development commits to aligning German development co-operation (GDC) closely to the 2030 Agenda and the Paris Agreement. In addition, in the wake of the current coronavirus (COVID-19) pandemic, BMZ promotes a "better and green recovery" in its partner countries through a range of support measures that are guided by the 2030 Agenda’s Sustainable Development Goals (SDGs) and the Paris Agreement.

Through its bilateral development co-operation, Germany supports its partner countries in developing national climate strategies, strengthening corresponding institutions as well as participative implementation processes. Germany supports policy-based financing for political and sectoral reforms to enhance climate ambition.

In the German Sustainable Development Strategy (updated in 2021), Germany outlines a vision of policy making and political action founded on the 2030 Agenda. Climate and environment are central to five of six identified areas of transformation as well as the objectives. Moreover, in order to ensure the alignment of its work in relevant sectors with environment and climate objectives, Germany has several action plans and strategies in place, including the BMZ Water Strategy(2017), the BMZ-Forest Action Plan, “The world needs forests” (2017); the BMZ Action Plan on Marine Conservation and Sustainable Fisheries (2016); the BMZ One Health Strategy (2021) and the IKI programme of the BMU(2008).

In addition, the BMU develops sector strategies (e.g. an adaptation strategy) that serve as guidance for its programmes, while the BMZ is currently implementing a new, comprehensive strategic reform concept, BMZ 2030(2021). The aim is to focus German development co-operation more strategically, effectively and efficiently on tackling current and future global challenges, including climate change and environmental protection.

Key provisions and pillars

• German Sustainable Development Strategy: The five areas with direct relevance to climate and environment are: energy transition and climate action; circular economy, sustainable building and the transformation of transportation; sustainable agriculture and food systems; and pollutant-free environment. Germany places special emphasis on the international dimension of sustainability, focusing, e.g. on climate finance, adaption to climate change and support for conservation areas in developing and newly industrialised countries.

• Green Recovery: With its recovery approach, Germany points towards the wide range of measures that can contribute to a green recovery, including investments in green infrastructure as well as the decarbonisation of the energy sector, investments in early warning systems, climate-resilient infrastructure, improved dryland agriculture, global mangrove protection and efficient water use. Germany works on creating an enabling environment and fiscal incentives for investments contributing to climate and environmental objectives.

• BMZ 2030: Two of the five new core areas of BMZ 2030 directly focus on environmental and climate objectives, while the remaining areas show important references to climate and environment. Specific areas of intervention for the core area “Responsibility for our Planet – Climate and Energy” are: climate change mitigation and adaptation; renewable energy and energy efficiency; and sustainable urban development (including mobility, circular economy and waste management). The areas of intervention for “Protecting Life on Earth – the Environment and Natural Resources” are: biodiversity; forests; and water. In addition, BMZ 2030 sets the Environmental and Climate Assessment (Umwelt- und Klimaprüfung, UKP) as one of the six quality criteria for German development co‑operation, which apply to all measures at both the strategic/political as well as operational/implementing level of German development co-operation. Details of putting this quality criteria into practice are currently being developed alongside a revision of the guidelines for the climate Rio Markers and the respective environmental markers.

• BMU – IKI: This support covers four funding areas: mitigation of GHG emissions; adaptation to the impacts of climate change; conservation of natural carbon sinks with a focus on reducing emissions from deforestation and forest degradation (REDD+); and conservation of biodiversity. IKI projects use policy advisory services, capacity building, technology co-operation and financing mechanisms to achieve their objectives. Studies, concepts and specific measures for climate change mitigation and protection of biological diversity can also be funded. Depending on the project, funding can be bilateral, regional or global. IKI supports through two funding pillars: the thematic and the country-specific selection procedures. Both procedures use idea competitions to select innovative projects. This approach ensures that the best ideas and concepts will be implemented and that the diversity of the implementing partners grows. Both of these funding pillars have been geared towards large-volume projects since 2017. Two small-scale project programmes have been associated with the thematic pillar since 2019 and 2020, namely IKI Small Grants and IKI Medium Grants, respectively. All funding procedures are two-staged, with the exception of the Small Grants. The competitive character of the funding procedures and the inclusion of non-governmental implementing organisations are important features of IKI that distinguish its work from classic development co-operation procedures, meaning that IKI funds do not go to governmental institutions in partner countries.

Box 1. Creditor reporting system’s environmental and climate markers

Figure 1. Germany’s integration of climate objectives

Note: “Other environmental markers” include biodiversity, environment and desertification that do not overlap with mitigation and adaptation. Biodiversity-related ODA is integrated in the columns, as well as presented separately for better visibility.

Source: OECD (2021), Creditor Reporting System (database), https://stats.oecd.org/Index.aspx?DataSetCode=crs1

Operational tools for systematic integration

Regarding administrative processes, Germany recently passed the strategic programme, Maßnahmenprogramm Nachhaltigkeit – Weiterentwicklung 2021, which aims to render governmental administration sustainable as a whole and in alignment with climate and environmental targets. As such, the objective is to achieve a climate-neutral administration by 2030. This is achieved by introducing sustainability criteria into the operations of governmental entities and recommending several measures in ten fields, among them construction, procurement, mobility and training programmes. The German government thereby ensures that environmental and climate aspects are reflected both in its development policy as well as its internal processes.

Concerning specific programmes, BMZ foresees for all relevant strategies and measures of GDC an obligatory Environment and Climate Assessment (Umwelt- und Klimaprüfung, UKP – not to be confused with the BMZ 2030 quality criteria UKP) in order to ensure that environmental and climate (mitigation and adaptation) aspects are consequently reflected. The respective BMZ guidelines foresee a two-step approach, including a pre-screening for the identification of “risks” as well as “additional potentials” (in the sense of opportunities or co-benefits for environment and climate) and, if necessary, an Environment and Climate Assessment. Based on these guidelines, the implementing agencies of GDC follow these requirements through their own specific safeguard systems.

Further tools for aligning GDC measures and the work of its implementing agencies with environmental and climate objectives include:

• Project markers: All measures get assigned specific markers (comparable to the Rio Markers), related to OECD Creditor Reporting System (CRS), which refer to the projects’ main objectives, which allow for further tracking and alignment with the Paris Agreement, 2030 Agenda, the Convention on Biological Diversity (CBD) and similar conventions and targets.

• Implementing agencies, GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH) and KfW (Kreditanstalt für Wiederaufbau) Development Bank, calculate the carbon footprint of relevant project activities and develop measures to reduce the overall GHG emissions of project activities.

• GIZ calculates the GHG emissions of corporate/internal activities and develops measures to reduce GHG emissions.

• Knowledge creation and implementation of know-how include internal technical, sector-specific documents, onboarding and regular training sessions for staff and partners.

However, as the quality criteria, Environment and Climate Assessment, is currently being elaborated within the BMZ 2030 process, the operational tools are currently under revision as well.

Regarding IKI, the BMU is applying a social and environmental safeguards system for all its ODA engagements. Each project is assessed during the appraisal phase and categorised according to three different risk categories. Depending on the risks, projects need to fulfil varying requirements in terms of monitoring, avoiding and mitigating social and environmental risks. The IKI safeguards system corresponds to the Environmental and Social Safeguards Standards of the International Finance Corporation (IFC), which currently applies. The performance standards particularly relevant in this context are PS 3 (Resource Efficiency and Pollution Prevention) and PS 6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources).

Monitoring, evaluation and learning frameworks

In climate-related development projects and programmes (as in all others) of the BMZ, results matrices/logical frameworks are used by the implementing agencies (GIZ, KfW, Physikalisch-Technische Bundesanstalt [PTB] and Bundesanstalt für Geowissenschaften und Rohstoffe [BGR]) to monitor their progress, steer and report on them. Project level evaluation reports are published on line, allowing for the sharing of findings and lessons to be drawn upon within and across institutions. On the policy-relevant strategic level, climate-related aspects are being regularly integrated into studies by Germany’s Institute for Development Evaluation (DEval), as well as evaluations recently covering the German REDD+ and climate adaptation engagements. Results and recommendations that follow from these evaluations are part of Umsetzungsmonitoring, an indispensable and formalised system for planning steps to implement evaluation findings.

Regarding IKI, it is structured along four funding areas (climate change mitigation, adaptation, natural carbon sinks/REDD+, and biodiversity), as previously mentioned. All projects are steered towards impact objectives in at least one of these thematic areas. On the project level, all ODA projects funded by the BMU use results matrices/logical frameworks for planning, monitoring and steering (see the IKI Project Planning and Monitoring Guidelines). The respective results matrices comprise project-specific indicators to measure effects on output and outcome level with regard to their environment and climate objectives. In addition to project-specific monitoring, a set of IKI standard indicators measure the performance of IKI across the portfolio against comparable metrics, such as tonnes of CO₂ equivalents reduced or hectares of land better conserved. These standard indicators were introduced in 2015 and are currently being revised.

IKI’s evaluation system seeks to balance accountability and learning objectives in the context of IKI’s climate and environmental objectives. Evaluation criteria are derived from the OECD-DAC evaluation criteria, but put special emphasis on climate and environmental aspects, for example when assessing impact and sustainability, where transformational engagement towards climate neutral and resilient societies is also assessed.

How are development programmes supporting country-owned transitions to environmentally sustainable, low-emissions and climate-resilient development pathways?

Supporting national transition plans that are commensurate with international objectives

Germany is the largest donor to the Partnership. The partnership brings together requests specifically related to Nationally Determined Contributions (NDCs) for support from partner countries with support offers from various donors ("matchmaking") and promotes the financial and technical capacities for effective implementation and ambition-raising of NDCs. Since the inception of the partnership, Germany has contributed support totalling more than EUR 500 million.

Through the NAP Global Network (NAP GN),Germany supports National Adaptation Planning (NAP) processes and South-South knowledge exchange. Through the Africa office of the Global Center on Adaptation(GcenA), Germany is supporting the African Adaptation Initiative (AAI).

Through its previously mentioned initiative on One Health, BMZ supports the efforts of partners to draw up national strategies and develop emergency plans to prevent epidemics and pandemics, and supports the mainstreaming and implementation of One Health, taking into account the impact of climate change, environmental degradation and biodiversity loss.

IKI provides support to partner countries in bilateral and various multilateral projects in developing and raising the ambition levels of their NDCs and Long-Term Strategies (LTS). One instrument to implement them in developing and emerging countries is the use of nationally appropriate mitigation actions (NAMAs): these are voluntary sectoral measures that take the form of projects, programmes and policies, and are implemented as part of the Facility. Another important element is the transposition of LTS and NDCs into sectoral policies and implementation measures, such as incentive mechanisms at the national and sub-national levels, for example, which are supported by the IKI’s work.

Particularly with regard to the Ambition Initiative of the NAMA Facility, Germany and other donors target an even higher level of ambition. It aims to support countries in the implementation of their enhanced NDCs and to build back greener as they recover from the COVID-19 pandemic. The United Kingdom and Germany, alongside the Children’s Investment Fund Foundation (CIFF), have committed up to EUR 174 million to the Ambition Initiative. Only projects intervening in countries that have presented updated NDCs to the United Nations Framework Convention on Climate Change (UNFCCC) by the closure of the Call on 31 May 2021 were eligible under the Ambition Initiative. Moreover, these NDCs were required to fulfil the NAMA Facility's ambition criteria as described in the General Information Document for the Call. This additional eligibility requirement aligns with the commitment of the donors of the NAMA Facility to support countries that are stepping up their climate ambition in the run up to COP26 and against the backdrop of the COVID-19 pandemic.

Examples of projects to support national transition plans

• Under the umbrella of the NDC Partnership, Germany supports partner countries by financing various programmes and projects that contribute to a green and climate-sensitive transition (selection): World Bank NDC Support Facility, UNDP NDC Support Programme, GIZ projects (implemented on behalf of BMZ), NDC Assist II and Support for the Implementation of the Paris Agreement. Providing support for NDC implementation is also a core element of IKI. Measures range from policy advice and technical support in the calculation of emissions to monitoring throughout the entire production process and the concrete implementation of NDCs. This includes, in particular, the development of scenarios, country-specific needs analyses, cost estimates and the formulation of specific reduction and adaptation targets in various sectors. Handbooks are produced, webinars organised, and interministerial working groups are advised to identify and involve important stakeholders.

• Germany provides funding of EUR 1.4 million to the United Nations Development Programme (UNDP)’s Building the Economy of Tomorrow: Using NDCs to Inform Green Recovery. Its aim is the climate-friendly design of economic recovery measures in the wake of the COVID-19 pandemic. In addition, in June 2020, the Economic Advisory Initiative of the NDC Partnershipwas launched to align the economic recovery from the COVID-19 pandemic with national climate goals. Germany endorsed the High-Level Statement “Promoting a low-carbon, equitable and resilient COVID-19 economic recovery”. More than 50 economic advisors are funded by 15 donors and implementing organisations in 34 countries via the Initiative. Germany provides direct support in 26 countries.

• Regarding another element within adaptation, the IKI project helps partner countries develop and implement NAPs. Key focal points of this funding include: optimising approaches to land usage; management of water resources and coastal zones; integration of adaptation aspects with sector strategies; and mainstreaming national development and investment plans. Frequently, the measures described for ecosystem-based adaptation and risk management also form part of NAPs. For instance, with the programme for the support of the National Adaptation Strategy on Climate Change in Mali, IKI is helping key decision makers in Mali to incorporate climate change aspects into development strategies, so that these aspects can be accounted for in planning instruments for the most vulnerable sectors.

• Through projects such as the Programme for Climate-smart Livestock Systems, Germany also supports the inclusion of climate change adaptation and mitigation practices in the livestock sector, with the goal of assisting countries to improve the reporting of their NDCs in the this sector within the framework of the Paris Agreement.

• Germany has also provided an additional EUR 4 million for the activities of the International Monetary Fund's Climate Change Capacity Development Program in order to support a green recovery. The aim is to strengthen the capacity of finance ministries and central banks to introduce fiscal measures, such as carbon pricing schemes that can stop climate change and strengthen climate change adaptation.

Implementing the transition to environmentally sustainable, low-emissions and climate-resilient development pathways

Germany refers to sustainable transition processes and transformation in the context of BMZ’s work with the German sustainability strategy and the implementation of the Agenda2030 and its SDGs. The level of detail regarding Germany’s understanding of transformative change processes is similar to the 2030 Agenda itself, tackling the economic, ecologic and social dimension of sustainability.

In the context of the current COVID-19 pandemic response (e.g. via BMZ’s Green Recovery programme), Germany highlights that a green recovery needs to promote both a transformation of the economy as well as society, and needs to focus on sustainability and climate protection. Germany also sees COVID-19 as a symptom of a multidimensional crisis that has biodiversity loss and climate change at its roots, and subsequently takes the interlinkages between people, animals and their shared environment into account through its efforts, i.e. through BMZ’s One Health initiative. Germany links its efforts in disease prevention and mitigation to efforts to reduce biodiversity loss. In addition, Germany recognises the need for climate change adaptation in the context of non-communicable diseases, noting the increasing frequency of extreme weather-related disease risks.

Germany is committed to biodiversity conservation, one element of sustainable development pathways. As such, BMZ supports more than 650 protected areas with a total area of over 2 million km² in 78 countries. BMZ is also one of the founders of the Legacy Landscapes Fund, an innovative financing instrument for protected areas. In addition, with its Green Value Initiative, BMZ supports African countries and development institutions in integrating the value of natural assets in decision making and mainstreaming natural capital into policies and planning. BMZ is further committed to halting deforestation and supports its partner countries in improving the political and legal framework in areas such as agriculture, mining and infrastructure. BMZ strengthens marine protection and management of coastal economic areas through three dedicated initiatives: the Blue Action Fund, Save our Mangrove Now and MeerWissen – African-German Partners for Ocean Knowledge.

Germany considers the Convention on Biological Diversity as a central framework for international co‑operation and conservation of the natural environment. Germany is one of the largest donors of financial resources for biodiversity conservation, with more than EUR 500 million annually since 2011 for the protection and sustainable use of forests and other ecosystems worldwide. Germany, via BMZ and BMU, strengthens partner countries in the establishment and management of terrestrial and marine protected areas and supports them in ending illegal wildlife trade and poaching. Support is also being provided through projects in the areas of sustainable land use and supply chains as well as for the equitable sharing of benefits from access to genetic resources (ABS Initiative) and for better recognising the economic value of nature in decisions.

BMU’s International Climate Initiative (IKI) is another important instrument for Germany’s international financing of climate change mitigation and biodiversity. IKI operates within the framework of the UNFCCC and the CBD, financing climate change mitigation and biodiversity conservation in developing, emerging and transition countries. As of 2020, IKI approved more than 750 climate and biodiversity projects, with a total funding volume of over EUR 4.5 billion in more than 60 countries, helping them to implement and ambitiously develop their NDCs anchored in the Paris Agreement, supporting their achievement of the CBD goals and contributing to the implementation of the 2030 Agenda.

In light of COVID-19, IKI’s thematic selection process in 2020aimed to offer support in managing the social and economic impacts of the pandemic while also demonstrating how climate change mitigation, adaptation and biodiversity conservation can contribute to sustainable economic reconstruction. In line with the slogan “Creating Green Societies in Challenging Times”, the 13 new IKI funding priorities addressed pressing challenges in the areas of climate change mitigation and biodiversity conservation, including the unique challenges caused by the pandemic.

For specific documents, see BMZ 2030, Green Recovery, the German Sustainable Development Strategy or IKI.

Support for sustainable, quality infrastructure

Germany is supporting quality infrastructure as a building block of its development policy and co‑operation through:

• The financing of multilateral programmes, such as NEPAD-IPFF – an Infrastructure Project Preparation Facility managed by the African Development Bank (AfDB).

• Its participation in the multilateral initiatives Global Infrastructure Facility (GIF) and the Coalition for Disaster Resilient Infrastructure (CDRI).

• Technical co-operation and support to the Programme on Infrastructure Development in Africa (PIDA) endorsed by the African Union (AU) and implemented with the oversight of the African Union Development Agency (AUDA-NEPAD). This has resulted in a number of significant results, key among these the development of various tools and instruments for PIDA implementation, including the Service Delivery Mechanism (SDM), the PIDA Quality Label and the Quick Check Methodology (QCM) as the standard for excellence in early-stage project preparation.

• The development and expansion of infrastructure in partner countries through projects of technical and financial co-operation in the sectors of water management, housing, transportation, urban development and digitalisation, e.g. through the Transformative Urban Mobility Initiative, the C40 Cities Finance Facility or digital infrastructure. In order to support a green and digital “twin” transition, it seems sensible to address two key topics: “Green Tech” and “Green Data”, encompassing, for instance, Clean Tech Hubs (as part of the global network of Digital Transformation Centres), Sustainable Data Centres, or a green approach for the existing multilateral Digital Government Services Initiative, GovStack.

• Rigorous climate mainstreaming and socio-environmental assessment of all (infrastructure) projects, e.g. involving renewable energy installations, road construction or water infrastructure (see the above section, “Operational tools for systematic integration”).

• The upscaling and mainstreaming of nature-based solutions (NbSs) in infrastructure planning and design. Germany will support partner countries in building the capacities necessary for their deployment, design and sustainable implementation. A particular focus is on strengthening green/blue and hybrid infrastructure solutions in urban areas. For example, on behalf of BMZ, GIZ and Local Governments for Sustainability (ICLEI) have developed the Urban NEXUS training approach, which also seeks out synergies and benefits of NbSs from system integration in cities and metropolitan regions at the different scales of the built environment and its infrastructures.

• The development of the Sustainable Infrastructure Tool Navigator, a platform that allows users to navigate the increasingly complex landscape of sustainability measures and standards for infrastructure.

Examples of projects in support of environmentally sustainable, low-emissions and climate-resilient transitions

• As an immediate response, IKI developed a Corona Response Package to support IKI partner countries, for which significant additional ad hoc funding of EUR 68 million were made available. As a longer term response to COVID-19, the German government is responding to the growing threat of pandemics with a number of initiatives and projects that promote holistic solutions for human, animal and environmental health. As part of the One Health approach, BMZ and BMU, together with international partners, founded the International Alliance against Health Risks in the Wildlife Trade, which aims to prevent the spread of zoonoses and conserve biodiversity at the same time. Moreover, the BMZ launched a global programme focusing on pandemic prevention in consideration of the One Health approach in partner countries; it provides support to pandemic preparedness in the East African Community (EAC) through structurally anchoring the One Health approach and operationalising the regional pandemic plan, as well as improving the exchange between veterinary and human health professionals in EAC committees. It also supports the One Health Research, Education and Outreach Center (OHRECA) in collaboration with the International Livestock Research Institute (ILRI) to improve human, animal and ecosystem health through capacity building, network strengthening, science-based policy advice and establishing a One Health focal point in Africa.

• Concerning energy, the multi-donor Global Energy Transformation Programme (GET.pro), in which Germany is a founding member and donor, provides with its instrument GET.transform expert recommendations on the sustainable transformation of national energy systems, including mini-grid investment energy regulations. Moreover, with the project, Clean, Affordable and Secure Energy for Southeast Asia (CASE), IKI promotes an energy transition with ambitious climate goals in Southeast Asia. Together with the broad participation of relevant stakeholders, evidence-based solutions for key challenges are being developed aimed at reorienting the energy transition and promoting meaningful local dialogue. It also supports co-ordination in the energy sector in Southeast Asia and provides technical and political assistance. The project is developing a knowledge platform and is also participating in regional specialist dialogue as part of the Southeast Asian Energy Transition Partnership (ETP).

• In light of the growing global pressure on marine ecosystems, Germany is engaged via the BMZ in the initiative MeerWissen - African-German Partners for Ocean Knowledge to provide policy makers with the scientific information they need to make informed decisions for the effective management and protection of Africa's seas and coasts. MeerWissen supports partnership projects between African and German marine research institutions through its own funding programme. In addition, BMZ initiated a partnership with the Nairobi Convention Secretariat and commissioned GIZ to tackle the fragmentation and overlap of responsibilities for marine and coastal areas support through the Western Indian Ocean Governance Initiative (WIOGI). This programme aims to strengthen regional marine governance with the involvement of the private sector on the protection and sustainable use of marine and coastal biodiversity in the WIO region.

• As example of support to rural areas, the IKI project, Implementing Strategies for Regional Transitions to Low-Emissions Rural Development in Indonesia, Peru, Mexico, Colombia and Kenya, supports the transition to low-emissions rural development in five partner countries in which tropical forests are predominant. At the sub-national level, and together with local non-governmental organisations (NGOs) of the Sustainable Tropics Alliance, it bundles and harmonises rural development state strategies and private industry initiatives along the most essential value chains, orienting them on forest protection goals. In addition, processes and structures are established to enable effective implementation, and a paradigm shift from a “project-based” approach to a “jurisdictional” approach will be supported. Concerning urban areas, City WORKS, which was developed by the GIZ Sector Programme Cities and commissioned by BMZ, supports cities and municipalities worldwide in their sustainable development pathways by localising global agendas like the 2030 Agenda, the Paris Agreement and the Sendai Framework for Disaster Risk Reduction.

How are development programmes supporting SIDS to achieve sustainable development?

Responding to the particular needs of SIDS

Germany supports Small Island Developing States (SIDS) in mitigating and adapting to climate change, managing climate and disaster risks, and dealing with climate-induced migration and disaster-related displacement.

For example, within BMZ 2030, in the area of adaptation and resilience building, co-operation with SIDS is of particular relevance to climate policy. SIDS are supported in multi-donor partnerships and through multilateral mechanisms (e.g. Green Climate Fund, Global Environment Facility, World Bank).

Examples of projects in support of SIDS’ sustainable development

Germany supports SIDS through various programmes and projects. BMZ, through GIZ, supports SIDS in addressing climate change by promoting sustainable and resilient development through sectoral and global engagements. In the Pacific, the BMZ supports the Regional Pacific.

In the Caribbean, the BMZ commissioned the GIZ project NDC Assist II and supports the Caribbean NDC Finance Initiative (NDCFI), which offers Organisation of Eastern Caribbean States (OECS) member states a platform for capacity building and collaboration on climate action and enhanced access to finance for NDC implementation. Also concerning capacity building, the NAP GN Progress Report (2019-2020) refers to the Network’s work (mentioned in Question 5), of which over 50% goes to Least Developed Countries (LDCs) and SIDS, including dedicated support for countries to develop their Adaptation Communication under the UNFCCC.

The BMZ-funded programme, Improving the Climate Resilience of Caribbean Island and Coastal States with Systemic Resource Management on Land and Water, reduces pressure on marine and coastal ecosystems through adaption by applying the “ridge-to-reef approach”. This systematic resource management approach to enhancing climate resilience is implemented in selected Caribbean Community (CARICOM) member states, working with the Caribbean Public Health Agency and various state and civil partners.

In dealing with climate-induced migration, disaster-induced displacement and voluntary and planned resettlement caused by extreme weather events as well as gradual climate change, the BMZ commissioned the GIZ project, Human Mobility in the Context of Climate Change, which supports partner countries in the Caribbean, the Horn of Africa, the Pacific, the Philippines and West Africa.

In the field of climate risk, climate risk management activities in the Pacific and the Caribbean are supported by the BMZ-commissioned GIZ project, Global Programme on Risk Assessment and Management for Adaptation to Climate Change (Loss and Damage). Also, the Climate Risk and Early Warning Systems (CREWS) initiative, in which Germany is a decision-making member, provides funding to build early warning systems for LDCs and SIDS in the Caribbean and Pacific. The support will improve forecasting of extreme weather events.

Moreover, Germany supports the InsuResilience Global Partnership (IGP) in: improving vulnerable countries’ access to climate risk data, models, information and tools; helping countries build capabilities to better manage their risks; and leveraging the expertise and know-how of IGP members. Under the IGP, to which Germany has contributed EUR 800 million so far, the Pacific Catastrophe Risk Insurance Company (PCRIC) has been providing climate risk insurance to Pacific island countries against tropical cyclones, earthquakes, and tsunamis since 2016. Similarly, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) under the IGP provides countries in the Caribbean and Central America with access to fast-disbursing climate risk insurance.

Supporting SIDS’ access to finance

Germany supports the Alliance of Small Island States (AOSIS) and its members (39 small island and low-lying coastal developing states) in international climate change, sustainable development negotiations and processes.

With regard to the Regional Pacific NDC Hub, BMZ (through GIZ) provides country- and sector-specific technical assistance and facilitates tailor-made support for Pacific Island Countries and Territories (PICTS) for NDC implementation, enhancement, and financing. The Hub supports processes to leverage global public finance and helps PICs secure finance for NDC implementation.

The previously mentioned Caribbean NDC Finance Initiative (NDCFI), which Germany supports with the NDC Assist II project, offers OECS member states, among others, a platform for enhanced access to finance for NDC implementation, including learning and support opportunities that improve access to public and private climate finance.

The Adaptation Fund finances projects and programmes that help vulnerable communities in developing countries, including SIDS, adapt to climate change. Germany has established itself as the largest supporter of the Fund in recent years and committed a further EUR 50 million in donations to it in December 2020.