The World Bank Rwanda NDC Deep Dive: Advancing Financial Innovation to scale up Climate Action (P172153) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 01/29/2020 | Report No: ESRSC01082 Feb 02, 2020 Page 1 of 7 The World Bank Rwanda NDC Deep Dive: Advancing Financial Innovation to scale up Climate Action (P172153) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Rwanda AFRICA P172153 Project Name Rwanda NDC Deep Dive: Advancing Financial Innovation to scale up Climate Action Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Environment, Natural Investment Project 1/17/2020 Resources & the Blue Financing Economy Borrower(s) Implementing Agency(ies) Ministry of Finance and Rwanda Green Fund Economic Planning (FONERWA) (MINECOFIN) Public Disclosure Proposed Development Objective(s) Financing (in USD Million) Amount Total Project Cost 1.75 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] The Project will be implemented across Rwanda encompassing both urban and rural areas. With this countrywide scope, the project aims to enhance the capacity of the government of Rwanda to advance financial innovation to Feb 02, 2020 Page 2 of 7 The World Bank Rwanda NDC Deep Dive: Advancing Financial Innovation to scale up Climate Action (P172153) accelerate climate change adaptation and mitigation in line with its NDC under the Paris Agreement. The main activities /components include (i) Identification, design, and operationalization of non-grant financial instruments and institutional strengthening, (ii) Preparation of flagship NDC projects, and (iii) Project management and knowledge exchange. The project will neither have physical works nor finance the design of any physical works, as it will focus on technical assistance and capacity enhancement of the GoR to advance climate financial innovation in the country. Even though the formulation of the flagship NDC projects, supported by the Project, is expected to have significant positive environmental and social impacts, they may have future consequences when implemented. To mitigate this risk, the GoR will use its safeguards system, and safeguards standards of Development Partners (DPs) that may finance them. Overall, the project will focus on providing technical assistance which is not expected to have any adverse environmental and social impacts. Therefore, the salient issues relevant to environmental and social assessment are limited to stakeholder engagement in relation to the three components and labor and working conditions within FONEREWA civil servants and consulting firms they might hire for the purposes of executing the TA financed activities, including preparation of flagship projects. The project will carry out inclusive and consultative process with various government stakeholders, the general public, civil society organizations, think tanks, academia and development partners, among others, to implement the components and attain the overall objective. To this end, the preparation of the flagship projects and any ESF instruments or other ESF-related outputs prepared with the TA financing must be consistent with the ESF and satisfactory to the Bank. D. 2. Borrower’s Institutional Capacity Public Disclosure Rwanda Green Fund (FONERWA) is the key government implementing agency. It has experience with the application of the World Bank’s safeguards policies through CIF PPCR financed TA projects that were implemented during the last few years. The environmental and social risks associated with the financed activities are expected to require no major management, skills or experience; and it will be possible to be managed by appointing a designated focal person within the FONERWA who can be supported or trained by the World Bank task team environmental and social specialists. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Low Environmental Risk Rating Low The project’s environmental risk is low, as it will provide technical assistance and capacity enhancement support, including knowledge sharing and consultancy services, and have no adverse impacts on the environment. Social Risk Rating Low The proposed project’s social risk is low, as it will focus on technical assistance, knowledge sharing and capacity enhancement of GoR to advance climate financial innovation in the country. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment Feb 02, 2020 Page 3 of 7 The World Bank Rwanda NDC Deep Dive: Advancing Financial Innovation to scale up Climate Action (P172153) ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The planned project will focus on technical assistance and capacity building of the GoR regarding the development and operationalization of the climate financial instruments. The main results of the project will comprise analytical works carried out to inform climate finance instruments and flagship projects; non-grant financial instruments prepared for green growth and climate resilience; flagship NDC project proposals, and capacity building training and awareness, including presentation/dissemination of the project results. The project will neither have physical works nor finance the design of any physical works. Therefore, no key environmental and social risks on biodiversity, occupational and community health, and cultural heritage, among others, were identified. The project will mainly focus on labor and working conditions (ESS2) and stakeholder engagement (ESS10). Based on the information available to date, overall risks are expected to be low. Overall, the preparation of the flagship projects and any ESF instruments or other ESF-related outputs prepared with the TA financing must be consistent with the ESF and satisfactory to the Bank. Please also note that, as explained earlier, environmental and social impacts and risks related with the two flagship NDC projects will be managed through safeguards systems/standards of GoR and development partners that may finance their implementation. Areas where “Use of Borrower Framework” is being considered: None ESS10 Stakeholder Engagement and Information Disclosure ESS10 is relevant, as the project is national in its scope. Therefore, the project implementation will engage various Public Disclosure stakeholders through inclusive and consultative processes using technical meetings, workshops, and knowledge sharing forums, among others. The potential stakeholders include government organizations, including REMA, RWRB, RwFA, Ministry of Agriculture, RAB, and local government offices; the general public, CSOs; academia; and think tanks. A stand-alone Stakeholder Engagement Plan will be prepared, as participatory and inclusive stakeholder consultation process will be required to be part and parcel of all the project components. The stakeholder engagement process and related information will be documented in the project deliverables. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions ESS2 is relevant for the project especially in cases where consulting firms will be hired for analytical works and other related activities. As this is a recipient executed grant, FONERWA will hire consulting firms, and requirements/conditions specified in ESS2 to be fulfilled/followed by consulting firms will be included in the relevant terms of references. Also, for FONERWA civil servants (to be) directly engaged in the project, ESS2 provisions apply. Given the low risk of this project, a Labor Management Plan will be included in the ESCP. ESS3 Resource Efficiency and Pollution Prevention and Management Feb 02, 2020 Page 4 of 7 The World Bank Rwanda NDC Deep Dive: Advancing Financial Innovation to scale up Climate Action (P172153) ESS3 is not currently relevant . The project does not finance any civil works or other activities which use or produce chemical products, or development and emissions of hazardous and non-hazardous chemical wastes, including radiation, electromagnetic energy, and emission of short and long-lived climate pollutants. ESS4 Community Health and Safety ESS4 is not currently relevant. The project will not finance and support any civil works activities. Thus, it is not expected to generate any negative impact on the community health and safety. On the contrary, the project is expected to enhance the capacity of the government of Rwanda to advance climate financial innovation which will have in turn a significant positive impact on community health and safety. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement ESS5 is not currently relevant. As the project aims at enhancing the capacity of the government of Rwanda to advance climate financial innovation, it will not be engaged directly/indirectly in land acquisition or other impacts covered by this standard. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS6 is not currently relevant. As the project aims only to strengthen the capacity of to enhance the capacity of the government of Rwanda to advance climate financial innovation in the country, it will not be engaged Public Disclosure directly/indirectly in biodiversity conservation or other impacts covered by this standard. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ESS7 is not currently relevant. The Project is not expected to have impacts on Indigenous Peoples/ Sub-Saharan African Historically Underserved Traditional Local Communities. ESS8 Cultural Heritage ESS8 is not currently relevant. The project will finance technical activities aimed at enhancing the capacity of the government of Rwanda to advance climate financial innovation. Thus, it is not expected to have impact on tangible and intangible cultural heritage. ESS9 Financial Intermediaries The project will not be channeling funds to a Financial Intermediary with the objective of sub-lending. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No Feb 02, 2020 Page 5 of 7 The World Bank Rwanda NDC Deep Dive: Advancing Financial Innovation to scale up Climate Action (P172153) OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners WB NDC-Partnership Facility B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: Preparation of the SEP Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): 1. Monitoring and reporting potential environmental and social risks in line with WB Environmental and Social Standard 1, including identification of any potential changes of the risk assessment 2. Informing/Advising the Bank if any unanticipated environmental and social risks arise Public Disclosure 3. Implementation of the Project in line with the World Bank’s Environmental and Social Standards (ESSs) 1-10 as applicable 4. Development and implementation of written labor management procedures applicable to the project C. Timing Tentative target date for preparing the Appraisal Stage ESRS 31-Mar-2020 IV. CONTACT POINTS World Bank Contact: Pablo Cesar Benitez Ponce Title: Senior Environmental Economist Telephone No: 5220+30736 / Email: pbenitez@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Finance and Economic Planning (MINECOFIN) Implementing Agency(ies) Feb 02, 2020 Page 6 of 7 The World Bank Rwanda NDC Deep Dive: Advancing Financial Innovation to scale up Climate Action (P172153) Implementing Agency: Rwanda Green Fund (FONERWA) V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Pablo Cesar Benitez Ponce Practice Manager (ENR/Social) Robin Mearns Recommended on 29-Jan-2020 at 15:57:44 EST Public Disclosure Feb 02, 2020 Page 7 of 7