The Pilot Program for Climate Resilience (PPCR) is a targeted program of the Strategic Climate Fund (SCF), which is one of two funds within the Climate Investment Funds (CIF) framework.
The PPCR aims to pilot and demonstrate ways in which climate risk and resilience may be integrated into core development planning and implementation by providing incentives for scaled-up action and initiating transformational change.
Details on Data
- Information on contributions to the PPCR and project approvals are as of October 2016.
- Projects are registered in CFU when approved by the PPCR Sub-Committee.
|Name of Fund
||Pilot Program for Climate Resilience (PPCR)|
|Official Fund Website||www.climateinvestmentfunds.org|
|Date fund proposed: February 2008.
30 May 2008 (design and creation agreed).Date fund made operational: 1 July 2008 (approved World Bank Board of Directors).
November 2008 (approved by the SCF Trust Fund Committee).
|Proposed Life of Fund
|The PPCR was designed to provide short-term finance through 2012.
The PPCR adopts the CIFs ‘sunset clause’ which enables closure of funds once a new financial architecture becomes effective under the UNFCCC regime. Until such time, donors and recipients operate under the existing framework.
|The World Bank serves as the Trustee and Administrating Unit of the PPCR.
The World Bank Group, the African Development Bank, the Asian Development Bank, the European Development Bank, and the Inter-American Development Bank are the implementing agencies for PPCR investments.
|The PPCR is designed to provide programmatic finance for climate resilient national development plans with four main objectives:
1. Pilot and demonstrate approaches for integration of climate risk and resilience into development policies and planning;
2. Strengthen capacities at the national levels to integrate climate resilience into development planning;
3. Scale-up and leverage climate resilient investment, building on other on-going initiatives; and
4. Enable learning-by-doing and sharing of lessons at country, regional and global levels.
In addition, regional PPCR pilots will aim to strengthen cooperation and capacity at the regional level to integrate climate resilience into national and appropriate regional development planning and processes.
|The PPCR supports:
Outcomes should include:
|Conditions & Eligibility
|Country access requires:
Priority will be given to highly vulnerable Least Developed Countries eligible for MDB concessional funds, including the Small Island Developing States.
A small number of pilot programmes have been selected on the basis of an expert review of expressions of interest and proposed criteria for prioritisation.
|Accessing the Fund||
|Uptake & Projects Supported||As of 31 March 2012, the PPCR Sub-Committee endorsed 13 Strategic Programs for Climate Resilience (SPCR) for a total amount of proposed PPCR funding of USD 800 million, an increase of USD 111 million since September 30, 2011 (USD 460 million for grant funding and USD 340 million for near-zero interest credits).|
|Decision Making Structure
The SCF Trust Fund Committee established a PPCR Sub-Committee to oversee its operations. It is composed of:
The first three categories of members are decision-making members. They serve for one-year terms and may be reappointed. No more than one member will represent the same country at any given time.
Responsibilities of PPCR Sub-Committee:
Active observers for the PPCR-SC also include representatives from:
An Expert Group was established by the PPCR Sub-Committee to make recommendations on the selection of countries that will receive financing under the PPCR. The Expert Group consists of eight members with a wide range of scientific, economic, social, environmental, development, policy and/or governance/institutional expertise, as well as climate-related knowledge in areas such as agriculture, forestry, fisheries, and health.
|Consultation with Non-Government Stakeholders
|In designing the Climate Investment Funds, consultations took place with potential donors and recipients, the United Nations family, other multilateral development banks (MDBs), civil society organizations, and the private sector. The CIF were created on agreement from some 40 developing and industrialized countries.
The SCF Trust Fund Committee and the PPCR-SC encourages strong developing country participation and works closely with the Adaptation Fund Board to ensure that PPCR pilot programs are complementary to the work of the Adaptation Fund (AF) and strengthens the knowledge-base for future AF actions.
Over time, the PPCR has made a growing investment in engaging stakeholders within recipient countries around the goals of the programme.
|Pledges, deposits and funding decisions for SCF and its subsidiary funds (PPCR, SREP and FIP) are reported to the Sub Committee in biannual trustee reports.
In May 2009, the Trust Fund Committees approved a disclosure policy supporting in-country disclosure of country-owned investment plans and strategies (developed under each of the Trust Funds) prior to their submission to a CIF Committee for approval. Proposed plans are also posted on the CIF website no later than three weeks prior to review of the proposal by a Committee. In the case of proposed programs and projects, an information document describing the proposal is to be made public at least two weeks prior to a decision on the funding of the proposal. The policy recognizes that a country or a project proposer may have justifiable reasons for not publicly disclosing all information in an investment plan or project, and in exceptional cases, subject to Committee approval, certain information may be kept confidential. Information on the disbursement of finance is provided in trustee reports, however this information is not always comprehensive.
||The PPCR has been controversial as it establishes a parallel framework for delivering adaptation finance to UNFCCC funds such as the Special Climate Change Fund, Least Developed Countries Fund, and the Adaptation Fund.
It has also been controversial because it offers developing countries (concessional) loans for adaptation which many stakeholders feel is inappropriate as it adds to developing country debt, and is inconsistent with some understandings of adaptation finance as compensation for harm caused by the developing world under the polluter pays principles.
Relationship with Official Development Assistance
|Inclusion as Official Development Assistance||Yes.
The application of all CIF finance (concessional loans, grants, and guarantees through the MDBs) can be classed as ODA by MDBs if:
|Financial instrument/ delivery mechanism used (e.g. grant, loan)
|PPCR Finance includes:
Currently, funding is split equally between loans and grants. The World Bank has emphasized that loans are optional; a recipient country can accept the grant component without the loan component. Highly Indebted Poor Countries will not be eligible for loans, in order to avoid further debt burdens.
Financing may be made available through budget support/development policy lending, coordinated investment programs across key sectors, alongside national financing and/or existing international support mechanism targeted at the public and/or private sector, which may, for example, include credit lines and partnerships with financial intermediaries, guarantees, and equity based operations.
As the PPCR is designed to integrate climate resilience into development plans, PPCR funded actions should, as an overarching principle, not be free-standing and should be fused with MDB resources and/or other parallel co-financing measures, including government and/or private sector resources.
|Nature of recipient country involvement||PPCR pilot programs are intended to be country led, build on National Adaptation Programs of Action and other relevant country studies and strategies, and strategically align with the Adaptation Fund and other donor funded activities.|