Business Case and Intervention Summary
Intervention Summary
Title: Climate Smart DFID Design stage
What support will the UK provide?
Up to £50,00 for the design period 2011/12 Which will fund the design of a climate smart programme
for DFID. The funding will be used to ensure we are learning from others, including the private sector
which is far advanced in thinking through the implications of climate change on business models and
processes. Funding will also be used to support activities to raise and broaden climate change
awareness across DFID, specifically through the Strategic Programme Review process .
Why is UK support required?
Protect DFID investments against the risks of climate change and take advantages of opportunities.
To do this we will build DFID capability and confidence in climate change of ALL our staff, ensure our
business processes reflect changes we need to make to respond to climate change.
This work will be done in house with a small amount of external technical expertise where absolutely
necessary.
What are the expected results?
Climate Change is going to bring many challenges for developing countries and we are all
ready seeing the impacts of these. e g by 2015 the number of poor people affected by climate
related disasters is expected to increase by 50% (Oxfam 2009), is DFID prepared for this
change ? Changes will occur in all of the sectors where we work and climate change is
recognised a stressor on reaching the MDGs.
The program under design will aim to deliver:
Effective development assistance in reducing poverty in a changing climate, ensuring
we do not loose gains made on MDG targets.
Skilled and confident workforce to respond to the challenges and opportunities of
Climate Change.
Business Case
Strategic Case
A. Context and need for a DFID intervention
Climate Smart Design Phase
Many of the poorest parts of the world will be worst affected by the physical impacts of
climate change. Poor countries and people are often heavily dependent on agriculture,
natural resources and ecosystem services, and therefore are more exposed to climate
impacts.
The effects of climate change present a serious threat to progress towards the MDGs, while
the opportunities afforded by low carbon development could accelerate progress. The effects
of climate change on food security, disease patterns and migration, along with the
opportunities of increasing energy access and delivering low carbon growth, demonstrate the
need to incorporate responses to climate change within all development interventions by
adopting a ‘climate smart’ approach to development.
Many of the actions that promote climate resilient growth will also improve countries’
resilience to other external shocks, such as increased fossil fuel and food prices.
The Secretary of State has committed DFID and all it does to be “Climate Smart” 2010 Oct.
To respond the challenges and opportunities of climate change DFID as an organisation
need to:
Equip DFID leadership team to be fully engaged in challenges and risks.
Ensure all DFID staff are aware and confident to tackle the implications of climate
change to there area of work:
Align DFID business processes (HR , Finance, M and E ) to be climate smart:
Ensure DFID future investments take the risks and opportunities of a changing climate
and carbon prices into account.
Reduce DFID impact on the environment and reduce our own carbon footprint in UK
and overseas
This demands a co-ordinated and organisational response which is monitored and a small
amount of admin and programme money.
Climate and Environment Group has been tasked to develop a programme of work to
develop co-ordinate the activities of DFID climate smart programme.
Early work suggest the components are :
 Strengthening DFID leadership and organisational awareness on climate change ,
 The DFID Business Plan commits all DFID country offices to undertake a climate change
strategic programme review (SPRs) by 2013 so that all country programmes are
responding to climate change. Seven country offices have already piloted an SPR.
Guidelines are being prepared by CED to support country offices to take forward SPRs.
 All DFID Business Cases must identify a response to the risks and opportunities of climate
change.
 Support and encouragement of DFID CC networks e.g. The DFID South Asian Climate
Change Champions network is driving innovation and managing climate change risk
across the country programmes.
 Senior Climate Change Champions have been recently established to embed climate
change into the DNA of DFID.
A small amount of finance is needed to help design climate smart programme c £50,000.
Climate smart programme is not expected to be a large program, much of the finance will
come from other department/country office budgets and training and development budgets.
B. Impact and Outcome that we expect to achieve
Impact of climate smart programme:
 Effective development assistance in reducing poverty in a changing climate, ensuring
we do not loose gains made on MDG targets.
 Ensure staff our engaged/motivated to meet our Sustainable Operations targets
(energy, water, travel). Source : Sustainability targets
 Delivery of effective International Climate Fund programmes. Source: ICF monitoring
framework.
 Production of Operational plans and business cases which reflect climate change
risks, and opportunities in the country and regional programmes. Source: input sector
codes show more CC markers across all programs.
 Raised level of awareness and skills of all staff in climate change leading to enhanced
reputation for DFID on climate change action. Source: Numbers of people on
courses and survey to show increased level of confidence of staff.
 Credible and legitimate advice to Governments and other partners to shape nationally
owned climate change strategies and plans. Source: Strategic Programme Reviews.
Appraisal Case
A. What are the feasible options that address the need set out in the Strategic case?
UNDER DESIGN
….Establish the “Do Nothing” counterfactual
B. Assessing the strength of the evidence base for each feasible option
In the table below the quality of evidence for each option is rated as either Strong, Medium or Limited
Option
1
2
3
Evidence rating
Add rows as necessary
What is the likely impact (positive and negative) on climate change and environment for each
feasible option?
Categorise as A, high potential risk / opportunity; B, medium / manageable potential risk /
opportunity; C, low / no risk / opportunity; or D, core contribution to a multilateral organisation.
Option
1
2
3
Climate change and environment risks Climate
change
and
environment
and impacts, Category (A, B, C, D)
opportunities, Category (A, B, C, D)
Add rows as necessary
C. What are the costs and benefits of each feasible option?
D. What measures can be used to assess Value for Money for the intervention?
E. Summary Value for Money Statement for the preferred option
Commercial Case
Direct procurement
A. Clearly state the procurement/commercial requirements for intervention
UNDER DESIGN
B. How does the intervention design use competition to drive commercial advantage
for DFID?
C. How do we expect the market place will respond to this opportunity?
D. What are the key cost elements that affect overall price? How is value added and
how will we measure and improve this?
E. What is the intended Procurement Process to support contract award?
F. How will contract & supplier performance be managed through the life of the
intervention?
Indirect procurement
A. Why is the proposed funding mechanism/form of arrangement the right one for this
intervention, with this development partner?
B. Value for money through procurement
Financial Case
A. What are the costs, how are they profiled and how will you ensure accurate
forecasting?
Design phase
2011/12 up to £50,000 to cover awareness raising events, guidance notes , facilitation of expert
workshops ( including learning from the private sector and other donors) .
B. How will it be funded: capital/programme/admin?
Mix of programme and admin. £20,000 programme , £30K Admin
C. How will funds be paid out?
Contract, on receipt of invoices.
D. What is the assessment of financial risk and fraud?
Low risk in the design phase
E. How will expenditure be monitored, reported, and accounted for?
All work will be overseen by Dr Jane Clark CED Climate Smart Co-ordinator . and DFID
Senior Climate Champions. Monitored by Caroline Bash in CED.
Management Case
A. What are the Management Arrangements for implementing the intervention?
B. What are the risks and how these will be managed?
C. What conditions apply (for financial aid only)?
D. How will progress and results be monitored, measured and evaluated?
Lograme
Quest No of logframe for this intervention: Log frame under design