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Annex 15: Greening the Risk Management Framework Plus

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To complete the analysis for each of the dimensions from an environmental and climate perspective, the following elements and guiding question can be used.

Category 1. Political system and corruption

This category comprises the issues related to corruption and access to natural resources. Due to the intrinsic high value of natural materials and resources, they are often depicted as “a blessing, and a curse”. The risk of corruption cuts across the natural resources sector, for both renewable (e.g. forest, fisheries, land) and non-renewable resources (e.g. oil, minerals, metals). To address these issues, it can be useful to consider:

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To formulate mitigation measures, use known reference measures and recommendations to support distributed governance systems allowing improved equality in access to natural resources, monitoring and law enforcement systems related to natural resources, inhibiting environmental crimes and corruption.

Category 2: Sustainable growth and jobs

This category relates to:

Resilience/Vulnerability to shocks

  • What is the level of vulnerability to exogenous and endogenous shocks and natural hazards taking into account the exposure of the country?

Green transition and growth

  • What is the risk that the country will not follow a circular, climate- and nature-smart transition and ensure a sustainable growth path? What is the risk that public policies do not address the main issues (relevant/credible/budget allocations)?

Sustainable trade and value chains

  • What is the risk that trade and value chains are not supporting sustainable growth and jobs including towards a green and circular economy? What are the risks that supports to trade might cause unintended negative impacts (e.g. land grabbing), including negative environmental impacts?

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✅ Promoting long term sustainability of value chains, by implementing circular economy principles, ensuring a just transition through an inclusive approach.

Category 3: Key sector policies

National development strategy (main sector in programming frameworks)

  • What is the risk that the national development strategy (or alternatively, as in NEAR countries, the main cross-cutting country strategy) is not aligned with the Paris Agreement, or that its implementation is not effective?

Energy

  • What is the risk that energy policies do NOT effectively support (relevant/credible/budget allocation/efficient management of resources) a green transformation of the economy (attraction of investments for renewable energy and energy efficiency; improvement of regulatory and market frameworks, and better access for all to affordable, reliable and sustainable energy services, with a strong focus on renewable energy)?

Environment and natural resources and/or other related policies in the country

  • What is the risk that environmental and natural resources policies do not effectively (credible/relevant) address environmental threats and challenges for the country and its sustainable development (to preserve, enhance and sustainably use the natural capital, strengthen environmental governance, achieve environmental sustainability, develop the green and circular economy)? What is the degree of exposure of the country to such risks?

Climate change mitigation and adaptation

  • What is the risk that climate and disaster risk management policies where they exist do not effectively (and credible/relevant) address climate challenges, in both mitigation and adaptation?

Agriculture, food and nutrition security

  • What is the risk that the country does not have a productive and efficient agricultural sector, which does not ensure food security, environmental sustainability and climate resilience for all or part of its population?

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✅ Supporting the translation and integration of climate and environmental ambitions at sector level.

Category 4: Sustainable finance, PFM, Transparency and Oversight

Sustainable financing

  • What is the risk that the financial system and financial practices do not support investments into environmental, climate and socially responsible projects? What is the risk that financing does not generate inclusive and sustainable economic growth (SDG8)?

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