Environmental Finance Services

June 2009

UNDP Environment & Energy Group

Photography:
Cover: Fisherman ©Claudio Vasquez Rojas; Windmills ©iStockpho; UNDP Library: Family of Bangladesh ©UNDP;
UN Library: Tea Plantation in Tanzania ©B.Wolff; Solar Panel ©Tim McKulka; SR Library: Okavango Delta
Environmental Finance Services
 The United Nations
Development Programme

O
n the ground in 166 countries, the United UNDP disbursements on environment, 2004-2007
Nations Development Programme by source of funds (in US dollars)
(UNDP) is the UN’s global development
network, connecting countries to Source of funds Total Percent
knowledge, experience and resources to help people Global Environment Facility 760,735,562 48.1%
build better lives. Together with its development
Montreal Protocol (MLF) 103,996,427 6.6%
partners, UNDP helps to coordinate and ensure the
Regular resources 181,771,066 11.5%
most effective use of UN and other international aid
resources. Environment and sustainable development Programme countries 391,859,784 24.7%
is one of UNDP’s four key areas of work, together with Others donors 143,437,790 9.1%
poverty reduction, improved governance, and crisis Total 1,581,800,630 100.0%
prevention and recovery.

The world faces a number of inter-connected crises UNDP believes that if environmental management
– from poverty and inequality, to food insecurity is treated not as a constraint but as an opportunity,
and civil unrest, battered financial markets, soaring it can become part of the solution. If policies,
energy costs and the threat of climate change. If left skills and incentives are developed to encourage
unchecked, environmental degradation is likely to investments in environmentally-friendly and
result in further and more severe social and economic climate-friendly businesses such as energy efficiency,
crises in the not-too-distant future. renewable energy, sustainable transportation, and

Box1: Highlights of UNDP Results in Environment (2005-2009)

ÌÌ An estimated 413 million tonnes of CO2 emissions were avoided as a result of projects being funded by
GEF and active in mid-2008. This is almost equal to the total CO2 emitted in Mexico in 2004.

ÌÌ 127 new protected areas covering more than 10 million hectares were created in 50 countries through the
implementation of 65 biodiversity projects funded by GEF. This is roughly equivalent to 2.5 times the total
surface area of Switzerland.

ÌÌ Over 100 countries and 20 international water bodies are being assisted by UNDP to ensure long-term
sustainability including the Danube, Nile and Tumen rivers; the Black, Caspian and East Asian Seas; lakes
Tanganyika and Baikal; and the small island developing states of the Pacific and Caribbean.

ÌÌ 63,000 tonnes of ozone depleting substances (ODS) have been eliminated since 2001 in 100 countries
with UNDP assistance under the Montreal Protocol, which also brought climate benefits as most ODS are
also powerful greenhouse gases.

2 Environmental Finance Services

 UNDP Environment & Energy Group
greening of commodity supply chains, not only can could be replaced by savannah with significant
environmental challenges be addressed but new losses to biodiversity; and sea level rise could
economic opportunities and millions of new jobs can increase inundation, storm surges and erosion in
be created. coastal areas, islands and river deltas in Asia, the
Pacific and the Caribbean.
In financial terms, UNDP is one of the largest brokers
of environmental grants in the developing world, In all of this, it is often the poorest people who face
having disbursed US$ 1.58 billion directly and the greatest risks, whether in the drylands of Africa,
leveraged over US$ 3 billion in co-financing from the river deltas of Asia, the tropical forests of Latin
public and private sources to support sustainable America, or the megacities emerging all over the
development during 2004-2007. developing world. These very same people provide
the bulk of labor that keep economies running.
Therefore environmental considerations must be part
Assessing the Challenge and parcel of any proposed solution for economic
growth, revitalization and stability.
The demand for environmental resources – from water
and food to fiber and fuel – has exploded as a result
of increasing consumption and growing populations. A Paradigm Shift
Between 1960 and 1999 alone, the world population
doubled from 3 billion to 6 billion people. In 2005, Unfortunately, the window for action to deal with
the Millennium Ecosystem Assessment concluded these problems is closing quickly. UNDP’s Human
that our ecosystems have been altered “more rapidly Development Report 2007/2008 estimated that
and extensively” during the past 50 years than at any stabilizing greenhouse gas concentrations in the
time in the history of our planet. atmosphere at a level that would prevent catastrophic
climate change will require a 50% reduction in
Of particular concern is climate change, which has greenhouse gas emissions by 2050 from 1990 levels.
been called “the greatest market failure the world This in turn will require radical measures in terms of
has seen” and one of the most serious development climate change mitigation and adaptation. In stark
challenges of the 21st century. The Fourth Assessment contrast, another 10 years of business-as-usual could
Report of the Inter-governmental Panel on Climate lock the world into catastrophic and irreversible
Change (IPCC) published in 2007 stated unequivocally climate transformations.
that climate change is happening and that human
activity is the main cause. The IPCC reported that: The International Energy Agency estimates that
between now and 2030, US$ 550 billion per year is
●● Between 75 and 250 million people in Africa needed for clean energy investments if we are to
could be exposed to increased water stress by reduce greenhouse gas emissions by 50% by 2050.
2020, and in some African countries yields from Approximately 50% of these funds will be required in
rain-fed agriculture could decrease by as much as developing countries. Furthermore, UNDP estimates
50%. that at least US$ 86 billion will be required annually
for adaptation to climate change by 2015.
●● More than 1 billion people in Asia could be
adversely affected by glacier melt, loss of snow Unfortunately, development assistance by itself can
cover and the reduced availability of freshwater do very little to close this gap. Official development
by 2050. assistance (ODA), at present, provides only about
US$ 10 billion per year for climate change-related
●● Crop yields in Central and South Asia could activities, a small percentage of what is required, and
decrease by as much as 30% by 2050; the tropical this is declining.
forests of eastern Amazonia in Latin America

3
 Aid for environment, 1990-2005
Environment-related official development
assistance (ODA) as % of total ODA

Other environment related support Water supply and sanitation

% share of total ODA “Core” environment sector Water resources management
25

20

15

10

0
1900 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Statlink http://dx.doi.org/10.1787/262477124883
Facing this massive challenge with limited resources need to be removed before such financial flows will
requires a paradigm shift. Traditionally ODA has been impact many other developing countries.
used as a source of finance for discrete projects.
Today, given the limits to this funding and the For example, the Kyoto Protocol created the Clean
huge challenges outlined above, development Development Mechanism (CDM) to promote both
organizations such as UNDP have to use their limited sustainable development and greenhouse gas
resources as a catalyst to redirect other financial reductions in developing countries. The CDM is
flows towards sustainable development technologies a global cap-and-trade mechanism, which allows
and practices. developing countries to earn credits for emission
reduction projects and sell these to industrialised
countries. Despite its potential, only a limited number
The Opportunity of countries are benefiting, and CDM benefits have
bypassed Africa almost entirely. Only five countries
In 2008, the private sector invested nearly US$ 150 – China, India, Brazil, South Korea, and Mexico – are
billion of new money in clean energy technologies. expected to be generating significant CDM credits
Although there is some concern that the current by 2010, but they will capture over 80 percent of the
financial crisis may freeze financing for green energy market. Existing markets in many countries often fail
projects, or that a number of financial incentives to attract investments in lower-carbon technologies
for energy efficiency and renewable energy will be and sustainable land-use projects. The specific
phased out by governments trying to trim budget market conditions of developing countries need
deficits, it is expected that investments in clean to be incorporated into the design of new market-
energy technologies will have grown to about based and innovative financial mechanisms. At the
US$ 450 billion by 2012 and US$ 600 billion by same time, developing countries need assistance to
2020. However, these financial flows often remain put into place an enabling environment (e.g. public
restricted to developed countries and a small policies, institutions, human resources) so that they
number of rapidly developing countries, barriers still are in a better position to leverage these new sources
of finance.

4 Environmental Finance Services



UNDP Environment & Energy Group

Classification of Climate National and
International Schemes
Change Mitigation Sub-National Schemes
Instruments

Green economic stimulus

ODA (multilateral, bilateral and Environmental Fiscal Reforms
Public Funds decentralized cooperation) Export Credits
Multilateral Funds Rebates & Subsidies
Tax credits & Tax Free Bonds
Low interest loans

Green Equity Finance

Private investment funds National Philanthropic Foundations
Private Funds Foundations Corporate Social Responsibility
Non-Governmental Organizations (National corporations)
Global Philanthropic Foundations
Corporate Social Responsibility

Tradable Renewable
Energy Certificates Tradable Renewable Energy Certificates
Carbon Cap-and Trade Utility Demand Side Management
Market based mechanisms Mechanisms (CDM, JI, voluntary) Green mortgages
Tradable Renewable Tax free climate change bonds
Energy Certificates Domestic carbon projects
Green insurance contract

Transaction Taxes (Tobin)

International CC Finance Initiative Carbon Taxes
Air Travel Levy Energy Taxes
Global Carbon Tax Auction of Emission Allowances
Innovative instruments Debt-for-Efficiency Swaps National Non-compliance fees
International Carbon Green Investment Schemes
Auction Funds Efficiency Penny
International non-compliance fees
Efficiency Penny

Recognizing that most of the financing for climate Removing these barriers and creating conditions
change and ecosystem service conservation in the that allow markets and private investment flows to
coming years will have to come from private sources, address pressing environmental problems is a key
the international community is currently piloting priority for UNDP. Although its resources are small,
a number of new market-based instruments and UNDP can play a critical role in laying the foundation
innovative financial mechanisms to attract and drive for effective markets that in turn can leverage new
direct investment towards green technologies and sources of environmental finance from the public
practices. For example, the table above lists a range and private sectors.
of these new financing mechanisms for climate
change mitigation.

5
 The UNDP Vision – Transforming Economies
To achieve such an economic transformation, UNDP Once the policy measures have been identified, UNDP
helps national and sub-national governments prepare helps client countries translate these into individual
sustainable development action plans to identify pri- projects that implement these policy changes,
ority measures. It then provides guidance to public strengthen institutions and secure investments.
authorities on how to choose and design the most Through a number of environmental finance facilities,
appropriate policies and financing schemes to imple- UNDP can then help countries to access new sources of
ment these priority measures, in a manner responsive environmental finance to implement these projects.
to their unique national and sub-national conditions. Such facilities include the Global Environment Facility
Such financing schemes can include ODA, carbon (GEF), MDG Carbon Facility, the joint UN programme
finance, public-private partnerships, corporate social on reducing emissions from deforestation and
responsibility funds, index insurance schemes, green land degradation (UN-REDD), and Climate Resilient
bonds and the like. Territories. As an illustration of the services provided
by these environmental facilities, Box 2 summarizes
how MDG Carbon operates.

A Big Vision - Transforming Economies

Requires Impact on

Develop capacity
Develop capacity of of national and Public and
national and local local governments International Private
governments to assess, access, Financial Investments
to prepare combine, sequence Institutions
SD strategies and different sources of
action plans environmental
finance

6 Environmental Finance Services

 UNDP Environment & Energy Group
Box2: The UNDP MDG Carbon Facility - Leveraging Carbon Finance for Sustainable Development
UNDP’s MDG Carbon Facility is an innovative financing mechanism designed to direct increased financial flows
from the growing international market in carbon credits toward projects in developing countries that contribute
directly to meeting the Millennium Development Goals (MDGs). The MDG Carbon Facility’s compliance activities
represent collaboration between UNDP and an international financial services provider, Fortis Bank, offering a
“one-stop-shop” package of development and commercialisation services to emission reduction projects.

MDG Carbon Facility’s services to Project Proponents

ÌÌ Performing in-depth due diligence to assess the carbon, technical,

legal and financial viability of proposed carbon projects.

ÌÌ Assistance with preparing key project-related documentation,

including the Project Design Document (PDD), financial models
and legal contracts.

ÌÌ Guidance to navigate each stage of the CDM / JI project cycle.

ÌÌ Arranging project validation, project registration and preliminary

verification of emission reductions.

ÌÌ Preparation and oversight of a monitoring plan to track project

emission reductions.

ÌÌ Providing direct access to Fortis Bank’s carbon trading desk,

including purchase and marketing of the project’s credits.

DP and Fortis’ roles in the MDG Carbon Facility

UNDP MDG carbon facility Fortis

Compliance activities

Project Carbon
Development Banking
Services Services

Project
proponents

7
 Delivering the Vision
To deliver these environmental finance services, Multilateral Fund for the Montreal Protocol, the GEF,
UNDP is mobilizing its more than 150 environment and CDM and voluntary carbon markets to phase
and energy experts located in headquarters and six out energy-inefficient, ozone depleting substance
Regional Service Centers, in addition to its more than consuming appliances.
five thousand staff distributed across more than 160
countries. Expertise is grouped into three advisory Helping governments attract and drive private
platforms: ecosystems and natural resources; climate investment towards sustainable solutions by
change adaptation/mitigation and energy; and ozone combining and sequencing various financial
depleting substances and chemicals. instruments to effect policy change provides a more
complete, robust and sustainable approach than
Each UNDP regional technical expert can advise client relying purely on ODA. Environmental sustainability
countries on a variety of financial instruments and on in turn is, and will always be, an essential component in
how to combine and sequence them to implement achieving UNDP’s primary mission of helping reduce
priority development initiatives. For example, staff poverty, promoting sustainable development, and
in the energy and climate change cluster can help ensuring social and economic stability in the world.
countries combine and sequence resources from the

Delivering UNDP Environmental Finance Services

140 UNDP Country Offices

Global Environmental Common Regional Policy & UN/UNDP

Trust Funds Programming Advisory Platform Financial Platforms

Global Environment Facility UNDP Regional Programmes

Biodiversity

Climate Change Mitigation

E&E Thematic Community based
Ecosystems & Trust Fund Adaptation
Climate Change Adaptation,
Natural Resources
(LDCF, SCCF, SPA, AF)
MDG Carbon CC Risk Transfer
International Waters Facility Facility

Sustainable Land Management Energy & UN REDD Energy Access

Climate Change Facility
ODS (Ozone Depleting
Substances) and POPs Regional High Carbon
(Persistent Organic Pollutants) Ozone and Adaptation Low GHG Emission
Chemicals Programmes Landscapes

Multilateral Fund and SAICM Territorial Green Commodities

Quick Start Programme Trust Fund Approach Facility
ODS/Chemicals

Regional Bureaux Central Bureaux

RBA RBAS RBEC RBLAC RBAP BDP BCPR PB BOM

8 Environmental Finance Services

 UNDP Environment & Energy Group
Box3: Combining and Sequencing Funding for Environment and Development Benefits
Due to the existing gap between the Montreal Protocol, which governs ozone-depleting substances (ODS), and
the Kyoto Protocol governing GreenHouse Gas emissions (GHGs), over 30 Gt CO2 equivalents of GHGs could be
emitted from ODS stockpiles over the next two to three decades. By comparison, the Kyoto Protocol is targeted
to reduce emissions of 5 Gt CO2 equivalents for the 2008-2012 period.

The diagram below presents a possible approach to leverage voluntary carbon finance to address the existing
gap between the Montreal Protocol and the Kyoto Protocol and promote energy efficiency, decrease the
dependency of the country on imported fossil fuels, eliminate ozone depleting substances and reduce poverty
in developing countries.

Energy Efficient
Market Transformation/Early Retirement

Current Funding Sources:

ÌÌ GEF
ÌÌ MLF (pilots)
ÌÌ Innovative financing mechanisms
ÌÌ Other

Industrial Conversion/ End of Life/

Manufacture of ODS-Free, ODS Destruction
Low-GWP Appliances
Waste Current Funding Sources:
Usage ODS
Current Funding Sources: Management ÌÌ VERs
Phase Life-Cycle
ÌÌ MLF ÌÌ MLF (pilots)
ÌÌ CERs (HFC 134a) ÌÌ Innovative financing
ÌÌ VERs (HCFC 141b) mechanisms
ÌÌ Other
ODS Recovery, Recycling ÌÌ Other
and Reclamation

9
For Further Information:

Veerle Vandeweerd Yannick Glemarec

Director UNDP GEF Executive Coordinator &
UNDP Environment & Energy Group Director, Environmental Finance
304 East 45th Street UNDP Environment & Energy Group
Room FF-982 304 East 45th Street, FF-9th Floor
New York, NY 10017 New York, NY 10017
E-mail: veerle.vandeweerd@undp.org E-mail: efs@undp.org
Phone: +1 212 906 5020 Phone: +1 212 906 5026
© Copyright United Nations Development Programme,
June 2009. All rights reserved.
 ENVIRONMENTAL FINANCE SERVICES
United Nations Development Programme

Multilateral Fund for the Implementation

of the Montreal Protocol (MLF)

WHAT IT DOES
The Multilateral Fund for the Implementation of the importance of country-driven approaches and the
Montreal Protocol on Substances that Deplete the Ozone development of an innovative, accountable and
Layer (MLF) is a financial mechanism established in 1991 transparent financing structure. By empowering
to assist developing countries to meet Montreal Protocol governments and promoting national advocacy for
compliance targets. The Fund facilitates the transfer of ozone protection in developing countries, the Multilateral
ozone friendly technologies and financial assistance to Fund has built capacity in all developing countries
developing countries so that they can phase out ozone- eligible for assistance from the Multilateral Fund. This
depleting substances (ODS). capacity provides a vehicle for the management of these
ozone depleting chemicals by national governments
The Montreal Protocol, adopted in 1987, has contributed encouraging cooperation at the national, regional and
to reversing the damage done to the ozone layer global levels.
and is recognized as a global success story of global
environmental protection. This is demonstrated by the
massive reductions in the use of ODS worldwide since it HOW IT WORKS
came into force. By the 20th anniversary of its ratification,
in September 2007, the Montreal Protocol had helped The work on the ground in developing countries is carried
phase out over 95 percent of the ozone depleting out by four implementing agencies: the United Nations
substances it set out to control. Environment Programme (UNEP), the United Nations
Development Programme (UNDP), the United Nations
This is a story of cooperation, speedy action, equity Industrial Development Organization (UNIDO) and the
between contributing and recipient countries, the World Bank. Between 1991 and 1995, the Multilateral
Fund built the capacity to deliver a US$ 200 million One of the areas in which UNDP’s MDG Carbon Facility is
programme annually. seeking to expand its activities is the rapidly increasing
voluntary emissions reduction market. An expansion of
With financial support from the Multilateral Fund and its scope is foreseen with respect to non-Kyoto gases,
bilateral donors, UNDP works with a broad range of in particular the funding of suitable projects that aim to
partners to assist developing countries to adopt and phase out ozone depleting substances, an area in which
implement strategies that preserve the ozone layer UNDP has long-standing expertise. UNDP’s current role as
while safeguarding the global climate. These partners Lead Agency for a significant number of countries seeking
include governments, industry, technical associations, to phase out HCFCs puts it in a unique position to help
agricultural institutes, academia and civil society. To countries identify and develop appropriate greenhouse
date UNDP has been managing a global programme of gas emission reduction projects while building market
US$ 500 million to provide assistance to more than 100 credibility and managing risks appropriately. UNDP
countries. believes that a central requirement for any successful
entry into carbon finance, whether voluntary, compliance
or fund-based is the establishment of a robust oversight
THE WAY FORWARD framework. UNDP is working with the Montreal Protocol
bodies to secure funding for climate benefits under
Many chemicals regulated under the Montreal Protocol the Montreal Protocol, as well as providing financing
also have high Global Warming Potential and contribute solutions to a large number of countries that UNDP
to climate change. Technical and scientific assessment assists.
panels under the ozone protection and
climate change regimes have noted that 30-36
the global decline in ODS emissions, as a Gt CO2e

}
result of activities undertaken in support Figure 1: The Potential GHG
12-13 ODS Banks
of the Montreal Protocol, have also Developed Impact of Ozone Depleting
resulted in greenhouse gas reductions Gt CO2e Countries Substances (ODS)

}
equivalent to several billion tonnes
of CO2 equivalent. These significant 4-5 ODS Banks
reductions make the Montreal Protocol G t CO2e Developing
Countries

}
a key contributor to the global fight
against climate change. This moved HCFC
the parties to the Montreal Protocol to 14-18
Phase out 1.5
make important decisions in September Gt CO2e
Developing 5 Gt CO2e
2007 to accelerate the phase out of countries Gt CO2e
hydrochlorofluorocarbons (HCFCs),
chemicals that have high Global Warming Potential ODS Kyoto Protocol Current CDM
Emissions Objective Pipeline
Potential. The phase out of HCFCs could 2008-2012 2008-2012
result in the mitigation of 14-18 billion
Sources. ODS estimates TEAP report to decision XVIII-12 ; Kyoto: UNDP estimates;
tonnes of CO2 equivalent (see Figure 1). CDM: UNEP Riso March 2009
The opportunity also exists to prevent
emissions of significant quantities of
ODS from existing stockpiles (“banks”),
and from products that are being discarded because they
are no longer useful or are being replaced in connection
with energy efficiency programmes. Preventing these FOR FURTHER INFORMATION
emissions could result in the mitigation of 16-18 billion
tonnes of CO2 equivalent (see Figure 1). To this end the Suely Carvalho
Montreal Protocol Parties agreed in 2008 to instruct the Chief, Montreal Protocol and Chemicals Unit
MLF to finance pilot projects in developing countries for UNDP Environment and Energy Group
the destruction of ODS Banks. suely.carvalho@undp.org
 ENVIRONMENTAL FINANCE SERVICES
United Nations Development Programme

Environment and Energy

Thematic Trust Fund (EE TTF)

HOW IT WORKS
The Environment and Energy Thematic Trust Fund sanitation Millennium Development Goals (MDGs)
(EE TTF) gives seed money to innovative and catalytic through adaptive water governance; and 3) strengthening
initiatives. This allows UNDP to quickly deploy resources regional and global cooperation in the water and
into new business areas, thereby responding to new sanitation sectors through adaptive governance of
global or partner country demands. The EE TTF is a shared water resources.
flexible co-financing mechanism which allows UNDP to
receive targeted resources. It supports the work within Key results include: the launch of the GoAL WaSH
the four Key Result Areas of the UNDP Strategic Plan (Governance, Advocacy and Leadership for Water,
that guides UNDP’s work in the area of environment and Sanitation and Hygiene) Initiative with country
sustainable development. These are: 1) environmental assessments that have been carried out in 11 countries and
mainstreaming, 2) environmental finance, 3) climate the formulation or development of support programs;
change, and 4) local capacity for service delivery. Without a significant contribution to the UN-Water Task Force
the EE TTF a number of UNDP’s most successful and on Sanitation and its work on the preparation for and
visible initiatives would not have been possible. These implementation of the International Year of Sanitation in
flagship programmes in turn have helped UNDP to raise 2008; the support to the publication of the World Water
the profile of environmental issues in development Development Report III; and the codification of water
programming. practitioners’ knowledge and promoting cross-agency
collaboration through an interactive internet platform:
Since 2001, approximately US$ 49.8 million in funding Waterwiki.net.
have been channelled through the Thematic Trust Fund.
The EE TTF complements UNDP’s regular work funded
core resources and from other trust funds such as the Example from Key Result Area 2:
Global Environment Facility (GEF) and the Multilateral Fund Regional Clean Development Mechanism (CDM)
for the Implementation of the Montreal Protocol (MLF). Capacity Building Project for Sub-Saharan Africa
The UNDP-UNEP (United Nations Environment
Example from Key Result Area 1: Programme) cooperation project “Regional CDM
The Water Governance Programme Capacity Building Project for Sub-Saharan Africa”,
a component of UNDP’s broader MDG Carbon
The Water Governance Programme aims to integrate Programme, aims to assist participating countries in
human rights as well as climate change adaptation creating an operational CDM market framework. This
considerations into water policies, strengthening water includes the creation of an environment in which
governance in general. The UNDP Water Governance functioning public institutions are able to effectively
Strategy comprises the following areas: 1) developing interact with the private sector to jointly develop CDM
capacities for Integrated Water Resources Management projects. UNDP works with the private sector on CDM
(IWRM) to reduce poverty and vulnerability; 2) helping project development and UNEP works with the public
countries to achieve or exceed the water supply and sector on the framework conditions.
 !
The expected outputs are: 1) Sector and project scoping
studies; 2) national and regional capacity-building
workshops and networking for Designated National
Authorities, the central agencies for CDM projects in a
country; 3) CDM project seminars/workshops for the
private sector; 4) south-south technical exchanges;
and 5) specific technical assistance activities. In 2008,
CDM capacities of six African countries have been
strengthened. This initiative is the first on-the-ground
implementation and concrete outcome of the Nairobi
Framework, which aims to assist developing countries,
especially those in Sub-Sahara Africa, to improve their
level of participation in the CDM.

Example from Key Result Area 3:

Capacity Development for Policy Makers to
Address Climate Change
The pilot initiative “Capacity Development for Policy which supports knowledge management and research
Makers to Address Climate Change” builds national at the nexus of biodiversity and poverty; and Equator
capacity to coordinate ministerial views, participates in Dialogues, which creates platforms at international
the United Nations Framework Convention on Climate conferences and fora for local and indigenous
Change (UNFCCC) process, negotiates positions under communities to share best practice, inform policy,
the 2-year timeframe of the Bali Action Plan, and assesses and build lasting partnerships. The Equator Initiative
investment and financial flows to address climate change among others held the Equator Prize 2008 and hosted
for up to three key sectors and/or economic activities. The community dialogue spaces at numerous international
projectworkscloselywithUNEPandtheUNFCCCSecretariat, conferences.
as they are undertaking a complementary regional project
for climate negotiators. Key results include: a global
investment and financial flows assessment workshop, THE WAY FORWARD
gathering national and international expertise, including
different UN and scientific organisations; three National UNDP has launched key environment and sustainable
Inter-Ministerial Dialogue Workshops; and the creation development initiatives that respond to today’s demands.
or consolidation of 10 national networks of stakeholders UNDP will continue to address climate change adaptation
and policy makers. and mitigation as outlined in its Climate Change Strategy.
As the UN agencies find joint ways to work together
to mainstream environment and energy into national
Example from Key Result Area 4: agendas and to catalyse finance to implement national
The Equator Initiative actions to achieve the MDGs, the EE TTF is an excellent
mechanism to up-scale such consolidated actions.
UNDP continues to support the Equator Initiative, a
partnership that brings together the UN, governments,
civil society, businesses, and grassroots organisations to
help develop the capacity and raise the profile of local FOR FURTHER INFORMATION
efforts to reduce poverty through the conservation and
sustainable use of biodiversity. The Equator Initiative Gordon Johnson
focuses on three areas of action: the Equator Prize, which Practice Manager
rewards outstanding community efforts in biodiversity UNDP Environment and Energy Group
conservation and poverty reduction; Equator Knowledge, gordon.johnson@undp.org
 ENVIRONMENTAL FINANCE SERVICES
United Nations Development Programme

Global Environment Facility

WHAT IT DOES
The Global Environment Facility (GEF) provides grants and incorporating ecological resilience into commodity
and concessional financing to assist countries to meet production, distribution and purchasing through the
the costs of achieving their commitments under the greening of supply chains and ensuring the availability
global environmental conventions in biodiversity, climate of private capital to biodiversity friendly or biodiversity
change, and desertification, as well as supporting action based small and medium sized enterprises.
on international waters and the phase out of persistent
organic pollutants (POPs). In waters and land, the emphasis is on putting in place
governance and regulatory arrangements that enable
As a partnership between three Implementing Agencies users to bring to market a full range of products and
- UNDP, UNEP and the World Bank, and seven Executing services, including carbon storage, reduced greenhouse
Agencies1, the GEF works to integrate action to generate gas emissions, and water supply, alongside their primary
global environmental benefits into the mainstream agricultural, forestry or fisheries products, and so have
of country led development. UNDP currently delivers clear financial incentives for sustainable practices. In
approximately US$250 million per year of GEF funds POPs UNDP’s focus is on combining and sequencing
to countries to support the strengthening of national, different sources of environment financing to generate
sub-national, and regional institutional and financial financial incentives for phase out.
capacities.

As of February 2009, UNDP’s GEF-supported portfolio RESULTS

stood at over US$ 8.7 billion (including US$ 2.7 billion
in GEF grants) representing more than 570 projects of Some impacts of UNDP GEF supported work
over US$ 1 million each, and a further 370 projects of include:
less than US$ 1 million. In addition, UNDP provides over
US$ 37 million per year to more than 1,000 community ➤➤ Avoidance of an estimated 410 million tonnes of
level projects in 119 countries through the Small Grants CO2 emissions through activities to transform
Programme (SGP). markets towards sustainability in energy
efficiency, particularly in buildings, renewable
The strategic focus of UNDP’s support is to help countries energies and transport.
put in place the policy, institutional and financial
frameworks that will help drive private investment flows ➤➤ 127 new Protected Areas (PAs) covering 10.02
towards environmentally sustainable solutions. million hectares have been created in 50 countries.
163 new PAs covering 8.6 million hectares are in the
For example, in climate change mitigation UNDP helps process of being established, and the management
countries put in place instruments such as smart wind of 398 existing PAs covering 73.9 million hectares
tariffs, power purchase agreements, and capitalization of has been strengthened. Biodiversity objectives
pilot financial instruments. In biodiversity, the emphasis is are being incorporated into production practices
on unleashing the economic potential of protected areas on over 257 million hectares in 33 countries.

1 Currently the 7 GEF executing agencies include the Asian, African, and Inter-American Development Banks, the European Bank for Reconstruction and
Development, FAO, IFAD, and UNIDO.
 !
➤➤ 32 countries are making substantial progress in
developing the legal, policy and institutional
frameworks necessary to ensure the long
term sustainability of international water
bodies of vital environmental and strategic
importance in their country and/or region. Many
other countries continue to strengthen their
frameworks. Most recently, the Ministers of Niger,
Chad and those of the countries in the Guinea
Current adopted Strategic Action Programmes
committing countries to governance reforms
targeting their agreed priority transboundary
environmental and water resource issues.

HOW IT WORKS
The GEF Implementing and Executing Agencies are
responsible for project identification and supervision
including programming, project formulation, project
financing, and then supporting implementation,
including monitoring, oversight and evaluation. UNDP
GEF supported programmes and projects are typically
developed and executed by national governments,
though on occasion international agencies and NGO’s
can execute the project. A wide range of public and
private sector agencies and institutions, including local
communities, are involved in project implementation.

UNDP GEF activities are mainstreamed into overall

UNDP operations and are primarily managed by the
organization’s network of over 140 country offices. These
are supported by regional technical specialists located
in Bangkok, Bratislava, Dakar, Panama, and Pretoria,
and coordinated and supported by a central UNDP
environment team in New York.

FOR FURTHER INFORMATION

UNDP GEF
Email: gefinfo@undp.org
 ENVIRONMENTAL FINANCE SERVICES
United Nations Development Programme

Green Commodities

WHAT IT DOES
The UNDP Green Commodities Facility (GCF) is working across West Africa towards more environmentally
to scale up UNDP’s existing initiatives with companies, sustainable and socially beneficial methods. While
governments and others intended to help shift markets currently focused on cocoa, coffee, cotton, and tuna, the
to drive the production and sale of green commodities. range of commodities addressed is being expanded to
Green commodities are those produced and supplied include other agricultural, forestry and fisheries products
in a manner which minimizes negative environmental including rice, soy, palm oil, lobster, shrimp, beef, and
impacts, and includes bulk traded products as well as timber, as well as other important fruits and vegetables.
more specialized niche varieties. For example, in West
Africa UNDP is working with Cadbury, who has invested
US$70 million over ten years to shift cocoa production HOW IT WORKS
The GCF operates at global and national levels to address
issues across the supply chain at different scales as
Global Importance of Coffee required. At a global level the GCF undertakes research,
baseline reviews, prepares guidance documents
Coffee is the world’s largest commodity crop and, and develops partnerships and policy. This includes
after petroleum, the second largest globally traded engagement with companies on sustainability policy,
commodity. Coffee production covers over 10 million programmes and procurement down the supply chain.
hectares, generates US$70 Billion in annual retail sales
and employs 25 million people. Virtually all coffee is At the country level, support services for a commodity
grown in, or in place of, tropical forests. So the way it is include:
produced has huge impacts on rural development and
environmental sustainability of regions. i. Delivery of technical assistance and training
for farmers and businesses in both business
management and sound environmental practices
including:
. Support to existing related service providers
– from fertilizer production to commodity
trading, marketing, and product sales to make
them more environmentally friendly.
. Support for the creation of new types of local
enterprises providing services to support green
commodity production.
. Research and Development for eco-production
of commodities.
ii. Ensuring the availability of credit through
partnerships with financial institutions so that
!
 financial services are available to green commodity
UNDP’s Partnership with Cadbury for Sustainable businesses, including at the micro-finance level.
Cocoa quoted directly from Cadbury website. iii. Analyzing and assisting government reform of
policies and regulations to create better economic
Cadbury, the world’s leading confectionery company, conditions for sustainable agriculture businesses.
has launched the Cadbury Cocoa Partnership to secure iv. Assisting governments in land use planning for
the economic, social and environmental sustainability of agricultural commodities, including forestry.
around a million cocoa farmers and their communities v. Putting in place long-term support through
in Ghana, India, Indonesia and the Caribbean. This is sustainable government extension services or
done through a long-term commitment to improving alternative private sector means to support green
farmer livelihoods and farming communities and commodity producers.
direct farmer involvement alongside NGO partners and vi. Piloting and replicating innovative financing
governments. mechanisms by governments and companies
to increase funding to support sustainable
This ground-breaking initiative, which will be carried out production practices. This will include both new
in partnership with the United Nations Development indirect revenue generation through charges and
Programme (UNDP) and other partners, marks 100 years taxes as well as direct payments for ecosystem
since the Cadbury brothers first began trading in Ghana services.
and aims to holistically support the development of vii. Verification of achievement of environmental
sustainable cocoa growing communities. practices through monitoring, scorecards and
reporting on indicators for ecosystem health.
The Cadbury Cocoa Partnership programme aims to viii. Increasing access to markets for green commodity
address some of the root causes of these issues by producers through the development of national
improving farmer productivity and helping to attract and global platforms.
the next generation into cocoa farming. The Partnership
will focus on:
. Improving cocoa farmer incomes by helping WORK IN PROGRESS
farmers increase their yields and produce top
quality beans. The GCF will develop and expand operations over the
. Introducing new sources of rural income next ten years. The Facility is currently in Phase I and
through microfinance and business support to strategies are being finalized, partnerships solidified,
kick start new rural businesses and introduce commodities prioritized, countries selected, pilots
additional income streams such as growing initiated and the Facility capitalized. Phase II will focus on
other crops. further developing in-country programmes leading to a
. Investing in community led development. phase where programmes will be fully institutionalized
. Improve life in cocoa communities e.g. into national government policy and market dynamics.
supporting education through schools and
libraries, supporting the environment through
biodiversity projects, and building wells for
clean, safe water
. Working in partnership and developing a
pioneering model which will be led from the
grass roots.

Farmers, governments, NGOs and international

FOR FURTHER INFORMATION
agencies will work together to decide how the funding
is spent and work with local organizations to turn plans Andrew Bovarnick
into action. Lead Natural Resource Economist
UNDP Environment and Energy Group
andrew.bovarnick@undp.org
 ENVIRONMENTAL FINANCE SERVICES
United Nations Development Programme

Territorial Approach

WHAT IT DOES
The implementation of the mitigation and adaptation responsibility, index insurance, green bonds, etc.)
policies necessary to successfully address the climate to implement these priority measures, in a manner
change challenge will only be achieved, and sustained, responsive to their unique territorial conditions.
through involvement and commitment at all levels of
decision-making. This includes, in particular, sub-national A key strategy of the Territorial Approach is to establish
authorities (regions, provinces, states or municipalities) robust partnerships between and amongst regions in
who have a key role to play in actively incorporating industrial and developing countries, NGOs, academia,
climate change considerations in day-to-day business bilateral aid organizations, UN agencies, and the
and in introducing climate-friendly policies, regulations private sector. The focus of these partnerships is to
and investment decisions. Adaptation to climate change foster knowledge transfer and direct investment
is very site-dependent and local planning decisions will to address climate change. Under the collaborative
be critical to tailoring adaptation action to the conditions “One UN” approach, experts from various UN
in which it will take place. This is particularly relevant as departments help in brokering these partnerships.
50% to 80% of GHG emissions are influenced by local
behavior and investment choices. The results – greater capacity at the
regional level to confront the double
The Territorial Approach initiative is a response to the
increasing demand from sub-national authorities for
challenge of mitigation and adaptation
assistance in assessing and managing the physical and
socio-economic impacts of climate change. One of
the main objectives of this initiative is to enhance the WORK IN PROGRESS
capacity of regional and local government to enact
regulatory measures, as well as to take advantage of new The Territorial Approach was launched at the first World
sources of environmental finance in order to implement Summit of Regional Governments on Climate Change in
their climate change responses. Saint-Malo (France) in October 2008. Some 100 regions
from 65 countries attended.

HOW IT WORKS The first 5-year programme of the Territorial Approach

involves:
The Territorial Approach helps regional and local
governments prepare integrated climate change action Phase 1: Training workshops by peers for 500
plans to identify priority mitigation and adaptation sub-national authorities in 22 regional groupings.
measures (negative costs/no-regrets/urgent initiatives). Information about climate change involves
It then provides guidance to public authorities on how exchanges of good practices, methods for
to choose and design the most appropriate policies assessment, potential solutions, and financial
and financing schemes (carbon finance, UN-REDD, instruments available from the UN, national
ODA, public-private partnerships, corporate social governments, regions, and private sector.
 Phase 2: Preparation of Integrated Territorial
Climate Plans (ICTPs) for 50 regions, including
assessment of carbon emissions, present and future
vulnerability, mitigation and adaptation strategies.
Once the framework is in place, regulatory and
financial instruments are identified.

Phase 3: Implementation of priority projects

identified in the ITCPs leveraging public and
private financial resources, including new sources
of environmental finance.

Phases 1 and 2 require a total budget of US$ 70 million

funded through resources mobilized from national
public institutions, the UN system, the regions, bilateral
aid agencies and the private sector. Phase 3 is expected
to channel about US$ 2.5 billion in direct investment for !
climate change management in client regions.

FOR FURTHER INFORMATION

Yannick Glemarec
UNDP Executive Coordinator for the GEF,
and Director of Environmental Finance
UNDP
yannick.glemarec@undp.org

Christophe Nuttall
Director, Hub for Innovative Partnerships,
UNDP
christophe.nuttall@undp.org

Olivier Deleuze,
Chief, Major Groups and Stakeholders Branch,
Division of Regional Cooperation,
UNEP
olivier.deleuze@unep.org

Christophe Bouvier,
Director, Regional Office for Europe,
UNEP
christophe.bouvier@unep.ch
 ENVIRONMENTAL FINANCE SERVICES
United Nations Development Programme

Community Based Adaptation

CLIMATE CHANGE AND NATIONAL ECONOMIES

Climate change will transform patterns of human layer to community-driven priorities, thereby addressing
settlement and challenge the viability of national climate change risks.
economies. While developed countries are preparing to
adapt to climate change, it is developing countries that
will be faced with the greatest and earliest burden in THE WAY FORWARD
terms of adverse impacts on living standards, livelihoods,
economic growth, and human vulnerability. These As a response to the critical need to support community
countries are least equipped to respond to its impacts adaptation initiatives, the United Nations Development
and therefore most vulnerable to its rising risk. As in Programme (UNDP) with the assistance of the UNDP-
the developed world, it is the people themselves who GEF Small Grants Programme (GEF-SGP), the United
will have to deal with the consequences of a changing Nations Volunteers Programme (UNV) and the United
climate. Nations Educational, Scientific and Cultural Organization
(UNESCO) have joined efforts in the UN-Collaborative
Solutions must be locally specific! Programme on Community Based-Adaptation to Climate
Change in Developing Countries (UN-CBA).

COMMUNITY-BASED ADAPTATION The UN-CBA supports developing countries’ efforts to

increase capacity for community-based adaptation to
Climate change is global, but impacts are regional and address long-term climate change impacts. UN-CBA is
local. Local communities depend upon climate sensitive encouraging systemic change in national adaptation-
resources for their livelihoods. Hands-on adaptation related policy through evidence based results from
measures are needed at community levels to strengthen a portfolio of community-driven climate change risk
resilience and to increase their ability to manage the risks management projects. UN-CBA promotes global learning
and negative impacts of climate change. related to community adaptation by sharing lessons
from a range of initiatives focusing on natural resource
A community with a diversity of options to respond to management.
climate change risks has higher adaptive capacity and
reduced vulnerability
WHAT IT DOES
While communities have responded successfully over
time to the challenges presented by climate variability The UN-CBA supports the following areas:
and change, the magnitude, intensity and frequency of
changes have reduced their capacity to cope or respond ➤➤ Vulnerability assessment and mapping.
effectively. Vulnerable local communities have an urgent ➤➤ Climate-related natural disaster reduction and
need to raise their capacity to be able to effectively adapt adaptation.
to climate change. A vital approach is Community-Based ➤➤ Conflict resolution and prevention.
Adaptation (CBA), which can be viewed as an additional ➤➤ Creation of innovative financing mechanisms.
 ➤➤ Promotion of volunteerism.
➤➤ Knowledge management and policy
development.

EXPECTED OUTCOMES
➤➤ apacity strengthened among Non-Governmental
C
Organizations (NGOs) and Community Based
Organizations (CBOs) for designing and
implementing community-based adaptation
measures.
➤➤ Climate Change adaptation mainstreamed at the
community level.
!
➤➤ Linkages between climate change adaptation and
sustainable development policies reinforced.
➤➤ Relevant national and sub-national policies and
development programmes revised based on
lessons from the UN-CBA.
➤➤ Lessons based upon effective approaches for
implementing community adaptation measures
documented and disseminated.

HOW IT WORKS
To implement the UN-CBA, UNDP, UNV and UNESCO
have established the Multi-Donor Trust Fund (MDTF) for
generating and managing resources to implement the
programme.
!
UN-CBA is a partnership that synergistically brings
together the capacities of the three participating
organizations to build the capacity of local actors to
implement the programme at the community level.

Resources will be mobilized from national public

institutions, philanthropic foundations, the UN system,
governments of member states of the United Nations,
inter-governmental or non-governmental organizations,
and from private sources.

Donor UNDP
NGOs/ FOR FURTHER INFORMATION
Donor MDTF UNV
CBOs
Donor UNESCO Pradeep Kurukulasuriya
Technical Advisor, Adaptation to Climate Change
UNDP Environment and Energy Group
pradeep.kurukulasuriya@undp.org
The UN-REDD Programme THE UN-REDD PROGRAMME AT A GLANCE
• Launched in September 2008
Reducing Emissions from Deforestation and
• Collaborative initiative between three UN agencies:
Forest Degradation in Developing Countries
FAO, UNDP, UNEP
Tropical deforestation and forest degradation – through • Two objectives:
destructive logging, agricultural expansion, fires, etc. -- o Assisting developing countries prepare and
accounts for nearly 20% of global greenhouse gas implement national REDD strategies and
emissions – larger than the entire global transportation
mechanisms
sector1. It is now clear that the stabilization of global
o Supporting the development of normative
temperatures within 2 degrees Celsius cannot be achieved
without reducing emissions from the forest sector, along solutions and standardized approaches based on
with other mitigation actions2. REDD (Reducing Emissions sound science for a REDD instrument linked with
from Deforestation and Forest Degradation) is an effort to the UNFCCC.
value the carbon stored in standing forests as a way to • Nine UN-REDD Programme pilot countries :
create incentives for developing countries to protect o Africa: Democratic Republic of Congo, Tanzania
forests. Financial flows resulting from REDD will not only
and Zambia
significantly reduce carbon emissions, but it can also benefit
developing countries, support poverty reduction and help o Asia and the Pacific: Indonesia, Papua New Guinea
preserve biodiversity, as well as other vital ecosystem and Viet Nam
services. Further, maintaining resilient forest ecosystems can o Latin America and the Caribbean: Bolivia, Panama
contribute to adaptation to climate change. and Paraguay
• An initial commitment by the Government of Norway
In September 2008, in response to the Bali UNFCCC COP-13
of US $ 52 million
Decision 2/CP.13 on REDD, FAO, UNDP, and UNEP launched
the UN-REDD Programme (United Nations Collaborative • $ 18 million already approved by the UN-REDD
Programme on Reducing Emissions from Deforestation and Programme Policy Board towards REDD-readiness in
Forest Degradation in Developing Countries). Together, the five countries
three participating agencies offer a diverse package of
expertise and services. The Programme supports reduce emissions from deforestation and forest degradation
governments to establish the institutional structures and the and strengthen institutions, governance and ability to
capacity to implement REDD, and to increase international establish reference emission levels, payment structures,
confidence and understanding about the feasibility and stakeholder processes, and measurements, reporting and
options for including verification systems.
a REDD mechanism
in a post-2012 Nine countries are participating in the first phase of the UN-
regime. REDD Programme: Bolivia, the Democratic Republic of
Congo, Indonesia, Panama, Papua New Guinea, Paraguay,
It does so by helping Tanzania, Vietnam and Zambia.
countries to build
capacity to UNDP’s Role and Responsibilities
UN Secretary General and Prime Minister of Norway launch the
UN-REDD Programme. Photo: UN Department of UNDP contributes its expertise on governance, poverty
Communications and Public Information
reduction and indigenous issues to the partnership to
1 IPCC Fourth Assessment Report: Climate Change 2007 (2007)
improve the analytical and technical framework of social
2 REDD- Option Assessment Report – Government of Norway (2009) 
and environmental benefits of REDD and provide support to November 2008. The overarching principles and
REDD decision-makers. recommendations developed during this consultation –
which included the call for engagement, information and
Recognizing that the causes of deforestation are complex reliance on free, prior and informed consent – provided the
and unique to national context, the UN-REDD Programme basis for an Operational Guidance for the Engagement of
supports the development of nationally-led, nationally- Indigenous Peoples and Other Forest-Dependent
owned REDD strategies, aided in this by UNDP’s presence Communities. This Guidance is being distributed to UN-
on the ground in country offices and regional centers. REDD Programme staff, UN Country Team staff, and
UNDP participates in the initial scoping and alliance- national government and civil society counterparts involved
building missions and supports the formulation of National in any UN-REDD Programme activities that may impact
Joint Programmes (NJPs), using convening power to commit upon the rights and livelihoods of Indigenous Peoples or
and engage a range of stakeholders from within other forest dependent communities.
government agencies, the donor community, civil society
and the private sector. The first five NJPs presented to the UNDP is responsible for facilitating the self-selection of the
Policy Board – the governing body of the UN-REDD Indigenous Peoples representatives to the Policy Board - a
Programme - were approved in March 2009, a budget process initiated during the Indigenous Peoples’ Global
allocation of US$ 18 million. In a second phase, UNDP’s Summit on Climate Change in Anchorage, Alaska - as well
responsibility is to analyze country programme progress as civil society representatives self-selection. It also
and results for lessons learned and to disseminate examples facilitates the input from the independent Civil Society
of good practices. Advisory Group to the UN-REDD Programme through the
Policy Board.
Committed to finding ways for REDD mechanisms to
benefit the poor, UNDP’s support to countries “REDD- The UN-REDD Programme is administered through UNDP’s
Readiness” includes an assessment of payment distribution Multi-Donor Trust Fund Office, which allows donors to
and benefit-sharing options that links to pro-poor and pool resources and provide funding to activities towards
livelihood outcomes. Within the framework of the UN-REDD this program. Currently, the Government of Norway has
Programme, UNDP is responsible for the provision of case allocated USD $ 52 million for global and national activities;
studies on best practice in equitable revenue distribution ; discussions are underway with other donors.
for studying the options to build on REDD payments to
include other or bundled payment mechanisms and Working Together
incentives, at both international and local scales ; and for
developing pro-poor benefit indicators for REDD The UN-REDD Programme offers a “Delivering as One-UN”
interventions. UNDP is also undertaking background support mechanism for country-driven REDD strategies.
analyses and reviews of national legislative frameworks for UNDP supports the mechanisms of inter-agency
REDD, institutional and policy reform issues, forest coordination and the active sharing of information between
governance and land tenure issues, and transparency and pilot countries and all stakeholders.
disclosure mechanisms.  Stakeholder participation in the
establishment of REDD payment distribution structures - The UN-REDD Programme works closely with the World
especially at the indigenous peoples and local community Bank’s Forest Carbon Partnership Facility to ensure
level - is a particularly crucial condition to the success of complementarity and synergy and avoid the duplication of
REDD processes. UNDP has developed standard terms of efforts by participating countries. Coordination is underway
reference for scoping and formulation missions and an at the global scale to align consultation and participation
operational guidance for NJP Implementation. In addition to guidelines in countries where both programmes are active.
hosting consultative workshops to contribute to
Working with other REDD actors such as the UNFCCC
programme formulation, NJPs include activities and budget
Secretariat, the GEF, regional development banks, bilateral
allocations that ensure the ongoing participation of
donors, research institutions, NGOs and CSOs, the UN-
Indigenous Peoples and forest-dependent communities.
REDD Programme maximizes efficiency and the
To be successful, any REDD mechanism must respect the effectiveness of the organizations’ collective input.
rights of Indigenous Peoples and other forest- For more information please visit http://www.un-redd.net
dependent communities. Towards this objective, UNDP is
undertaking global and national consultations. In
partnership with the United Nations University, Tebtebba
and the Secretariat to the Convention on Biological
Diversity, UNDP hosted the Global Indigenous Peoples
Consultation on REDD in Baguio City, Philippines, in