2.1.4. Annual action planning: greening identification

2.1.4. Annual action planning: greening identification

Background

Identification requires a good understanding of the relevant political, institutional, economic, social and environmental context; it must show a clear articulation of the action’s intervention logic with initial (draft) result indicators. At this stage, sufficient elements of the actions proposed are known that can allow the application of the environment & climate risk screening.

Entry points for identification

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➡️ Address environment and climate change concerns in the different analyses leading to the design of the action

The identification of an action involves different types of studies and analyses (including context, public policy, feasibility, stakeholders, problem, risks)^[8]. Environment and climate change should be an integral component of these analyses. For example, how does environmental degradation and climate change affect the sector issues that will be addressed by the action? How will stakeholders related to environmental and climate issues be consulted and involved in the design of the action?

➡️ Involve the environment and climate change thematic units in the co-creation process

Co-creation is about working together with relevant staff from the outset (e.g. relevant thematic colleagues being contacted as early as possible), so as to gather all necessary expertise and know-how for the effective development and implementation of actions and policies.^[9]

In the case of INTPA, the SSC Fiche indicates the members of the country cooperation team (CCT), the region cooperation team (RCT) or the thematic cooperation team (TCT) that will be involved in the formulation of the action. The thematic units on environment and climate change^[10] should be indicated as part of the co-creation teams.

Under IPA III, and according to the IPA III Programming Guidelines, identification is the first phase of programming during which potential actions are discussed with internal stakeholders, the Commission (EU Delegation, DG NEAR, other Commission services), external stakeholders (civil society organisations, other donors, etc.) and potentially external experts (e.g. such as experts from the NEAR Greening Facility).

In the case of NEAR, the thematic unit in charge of environment and climate change^[11] should be consulted during identification.

➡️ Avoid excluded activities

In line with Art. 29 on activities that are excluded from financing (see NDICI-GE and IPA III regulations: green highlights):

✅ Ensure the action does not include support to fossil fuels. More generally, common sense should apply to activities related (even indirectly) to the fossil fuels sector, considering EU reputational risks.

✅ Check the beneficiary country’s NDC and ensure that the action is not in conflict. Ensuring compliance with Article 29 requires reviewing the beneficiary country’s NDC to determine any conflicts with the action proposed. NDC can be found in the NDC Registry.

✅ Identify activities with potential significant adverse impacts on the environment, including biodiversity, the climate or climate resilience, determined through the environment & climate risk screening procedure (see below) and avoid them by exploring alternatives. For unavoidable high-risk activities, ensure appropriate measures to avoid, prevent, reduce and/or offset adverse effects of these activities are identified through an Environmental Impact Assessment (EIA) and/or a Climate Risk Assessment (CRA), and spelled-out in an Environmental Management Plan (EMP), reflected in the action’s design, and integrated in the project’s monitoring system.

➡️ Maximise positive contributions

When initiating the identification, identify opportunities and areas to support green transformative action.

Almost all areas/sectors can contribute positively to sustainability, but some offer more opportunities:

• Energy: support to the energy transition, renewable energy and energy efficiency.
• Agriculture, forestry and other land use: agro-ecological and climate smart agriculture, carbon sequestration, avoidance of deforestation, sustainable land management, biodiversity and ecosystem restoration.
• Water management: integrated water resources management, water pollution control, water use efficiency, nature-based solutions for flood management or water purification.
• Green and circular economy: sustainable and circular industries, green business development, promoting resource efficiency and circularity in value chains and sustainable chemicals management.
• Urban development: sustainable and smart mobility, low carbon buildings, waste management, climate-resilient cities, nature-based solutions in infrastructures, green areas, sustainable lifestyles, nature-based solutions.
• Migration: building climate resilience and environmental sustainability of displacement-affected communities, tackling environmental and climate change drivers of migration.
• Transport: smart and sustainable mobility, public transport, shift to low-carbon transport, nature-based solutions for transport infrastructures. Support to aviation and road sectors should be carefully assessed and justified before starting the design of the programme.
• Digital: digital applications for the green transition, green data centres, risk information platforms.
• Governance: environmental and ocean governance, natural resource governance, addressing IUU fishing, illegal logging, poaching, wildlife trafficking.
• Human development: build resilient communities, promote green education through policy, curricula, learning, teacher training and green schools; develop ‘one health’ approaches, sustainable lifestyles, developing skills for green jobs through TVET and health sector preparedness to climate change; strengthen higher education, research and innovation to provide local knowledge and skills to support all societal sectors in the green transition.

✅ Ensure that the problem analysis and the stakeholder review identify environment and climate change-related issues. This may imply involving environment and climate stakeholders in the problem analysis.

✅ Identify options and pathways that will contribute to the green transition through nature- and climate-positive impacts and outcomes. The Quick Tips for the integration of environment and climate change under different sectors provide inspiration and guidance to this effect.

✅ Seek opportunities to contribute to the implementation of the country’s NDC, National Adaptation Plan and long-term low greenhouse gas emission development strategies under the Paris Agreement, National Biodiversity Strategy and Action Plan (NBSAP) under the Convention on Biological Diversity and supported by National Biodiversity Finance Plans^[12], or action plans under the UN Convention on Combating Desertification, and Sendai Framework targets.

➡️ Identify environment/climate risks and apply the ‘do no harm’ principle

From an environment and climate change perspective, the principles of ‘do no harm’ and ‘leaving no one behind’ imply that actions should not have any significant adverse impacts on the environment or on climate^[13].

The mandatory environment & climate risk screening helps identify high risk actions that should be either excluded or subject to a dedicated impact assessment (Strategic Environmental Assessment – SEA, Environmental Impact Assessment – EIA, and/or Climate Risk Assessment – CRA), which will help identify the appropriate measures, including alternative options, to avoid, mitigate, offset or compensate adverse impacts on environment or the climate. In the case of impact assessments, these tools inform the decision-making process and, if the impacts on the environment are considered unacceptable, it may be decided not to support the project in question.

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The environment & climate risk screening allows to identify areas of potential impact that should be addressed in the design of the action, even if a dedicated tool (SEA, EIA and/or CRA) is not required. All actions must avoid harmful impacts on the environment and climate, in line with the DNH principle.

➡️ Assess the environmental and climate vulnerability of the action and identify options to ensure its resilience

The effectiveness and sustainability of the action can be compromised by climate change and environmental degradation processes that are often beyond the control of the action. These risks must be understood, and the action designed to be climate-proof and resilient to relevant environmental degradation processes. Climate Risk Assessment (CRA) is a useful tool to address climate-proofing; if a full-fledged CRA is not necessary, the CRA screening will be useful to identify climate risks and climate-proofing opportunities.

Project vulnerability from environmental degradation should also be examined, and relevant measures foreseen for the action. For example, promoting sustainable land management in the upper watershed to reduce the risk of accelerated siltation of a dam, working with industry in the project area to curb water pollution.

Adaptation to climate change and disaster risk reduction may also be closely linked, climate change being increasingly a driver of disaster risk. The common ground between adaptation and DRR^[14] should entice building climate resilience through a disaster risk reduction lens, i.e. by preventing and reducing risks, reducing hazard exposure and vulnerability to disasters, and increasing preparedness for response and recovery.

➡️ Assess indicative contributions to the climate and biodiversity spending targets

The identification should provide a first indication of the contributions to the climate and biodiversity spending targets. Application of the Rio markers must be done carefully as it is the basis for the EU to report climate finance to the OECD; if not applied consistently, this may lead to reputational risks for the EU.

Financial contributions indicated during identification are indicative and must be validated in the related action documents. For further details on the definitions and eligibility criteria for the Rio markers, refer to Annex 2.

References

^[8] See ICM Guide.

^[9] Vade Mecum – Working as a team, and INTPA’s Strategic Governance System. Revision 2022.

^[10] i.e. INTPA units F1 and F2: INTPA-GREENING-FACILITY@ec.europa.eu; INTPA-F1@ec.europa.eu; INTPA-F1@ec.europa.eu

^[11] i.e. NEAR A3

^[12] As supported by the EC/UNDP Biodiversity Finance Initiative BIOFIN, or similar instruments at national level.

^[13] See Article 8.8 of the NDICI-GE Regulation.

^[14] As cited in the EU Adaptation Strategy and the OECD position paper on CCA and DRR.