Proposed grant from the



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PROJECT DOCUMENT
ON A
PROPOSED GRANT FROM THE
gloBal environment facility
IN THE AMOUNT OF US$ 2.4 MILLION
to THE
ARGENTINE Republic
FOR THE
Third National Communication to the United Nations Framework Convention on Climate Change Project
August 13, 2010

Sustainable Development Department

Argentina, Paraguay and Uruguay Country Management Unit

Latin America and the Caribbean Region


CURRENCY EQUIVALENTS


(Exchange Rate Effective 5 August 2010)

Currency Unit

=

AR Peso

AR$ 1.0

=

US$ 0.25

US$ 1.0

=

AR$ 3.93

FISCAL YEAR



January 1



December 31

ABBREVIATIONS AND ACRONYMS

ACF Argentina Carbon Facility

AMBA Metropolitan Area of Buenos Aires

AOP Annual Operating Plan

APL Adaptable Program Loan

AR4 Fourth Assessment Report

BP Bank Policy

CARICOM Caribbean Community and Common Market

CCD Climate Change Directorate

CCFA Climate Change Focal Area

CICC Inter Ministerial Commission on Climate Change

CIMA Research Center on the Sea and the Atmosphere (Centro de Investigaciones del Mar y la Atmósfera)

CPS Country Partnership Strategy

CS Civil Society

CNRS National Center for Scientific Research of France

COFEMA Federal Council of Environment (Consejo Federal de Medio Ambiente)

CONICET National Center of Scientific and Technical Reasearch (Consejo Nacional de Investigaciones Científicas y Técnicas)

COP Conference of the Parties

DA Designated Account

DIGMA General Directorate of International Environmental Affairs (Dirección General de Medio Ambiente)

DGTA General Administration and Technical Directorate (Dirección General Técnico Administrativa)

DNA Designated National Authority

DNRI National Directorate of International Relations (Dirección Nacional de Relaciones Internacionales)

DPCyC Budget, Shopping and Procurement Directorate (Dirección de Presupuesto, Compras y Contrataciones)

EAs Enabling Activities

ER Emission Reduction

FA Financial Assistant

FAC Financial and Administrative Coordinator

FB Fundación Bariloche

FCPF Forest Carbon Partnership Facility

FM Financial Management

FNC First National Communication

FY Fiscal Year

GCC Global Climate Change

GEF Global Environment Facility

GHG Greenhouse gasses

GIS Geographic Information System

GOA Government of Argentina

GPFMC General Procurement and Financial Management Coordinator

HFC Hydrofluorocarbon

IBRD International Bank for Reconstruction and Development

ICB International Competitive Bidding

IDB Interamerican Development Bank

INDEC National Institute of Statistics and Censuses (Instituto Nacional de Estadísticas y Censos)

IPCC Intergovernmental Panel for Climate Change

ISDS Integrated Safeguards Data Sheet

IUFR Interim Unaudited Financial Report

JICA Japan International Cooperation Agency

JGM Chief of the Cabinet of Ministers (Jefatura de Gabinete de Ministros)

KP Kyoto Protocol

LUCF Land Use Change and Forestry

LULUCF Land Use, Land-Use Change and Forestry

MC Mitigation Coordinator

MAGyP Ministry of Agriculture, Livestock and Fisheries (Ministerio de Agricultura, Ganadería y Pesca)

MRI Meteorological Research Institute of Japan

MSW Municipal Solid Waste

MTR Midterm Review

M&E Monitoring and Evaluation

NC National Communication

NCAR National Center for Atmospheric Administration

NEA Argentina North East (Noreste de Argentina)

NGO Non Governmental Organization

NOA Argentina North West (Noroeste de Argentina)

NOAA National Oceanic and Atmospheric Administration

NPP Nuclear Power Plant

OP Operational Policy

PAD Project Appraisal Document

PC Procurement Coordinator

PCN Project Concept Note

PDO Project Development Objective

PERMER Renewable Rural Energy in Rural Markets Project

PIC Public Information Center

PID Project Information Document

PIU Project Implementation Unit

PFC Perfluorocarbon

PROSAP Provincial Agricultural Services Program (Programa de Servicios Agropecuarios Provinciales)

P&M Policies and Measures

REDD Reducing Emissions for Deforestation and Forest Degradation R-PP Readiness Plan Proposal

RVP Regional Vice-Presidency

SAyDS Secretariat of Environment and Sustainable Development (Secretaría de Ambiente y Desarrollo Sustentable)

SBD Standard Bidding Documents

SC Steering Committee

SDN Sustainable Development Network

SEPA Procurement Plan Execution System (Sistema de Ejecución de Planes de Adquisiciones)

SIC Secretariat of Industry, Business and SMEs

SIIF National Integrated Financial Management System

SRH Sub-Secretariat of Water Resources (Secretaría de Recursos Hídricos)

SNC Second National Communication

SPE Secretariat of Economic Policy (Secretaría de Política Económica)

SPPCTIP Secretariat of Planning and Policy in Science and Technology and Productive Innovation (Secretaria de Planificación y Política en Ciencia, Tecnología e Innovación Productiva)

ST Secretariat of Transport (Secretaría de Transporte)

TAC Technical Advisory Committee

TNC Third National Communication

TOR Terms of Reference

UEPEX Financial and administration system used by Argentinean Government units responsible for the administration of foreign loans

UN United Nations

UNFCCC United Nations Framework Convention on Climate Change

WB World Bank


Vice President:




Pamela Cox

Country Director:




Penelope Brook

Sector Manager:




Karin Kemper

Sector Leader:




Michel Kerf

Task Team Leader:




Marcelo Acerbi

ARGENTINE REPUBLIC
Third National Communication to the United Nations Framework Convention on Climate Change Project Contents
Page


I.STRATEGIC CONTEXT AND RATIONALE 10

A.Country and Sector Issues 10

B.Rationale for Bank Involvement 12

C.Higher Level Objectives to which the Project Contributes 16

II.PROJECT DESCRIPTION 17

A.Lending Instrument 17

B.Project Development Objective and Key Indicators 17

C.Project Components 18

D.Alternatives Considered and Reasons for Rejection 23

III.IMPLEMENTATION 23

A.Partnership Arrangements 23

B.Institutional and Implementation Arrangements 23

C.Monitoring and Evaluation of Outcomes/Results 24

D.Sustainability and Replicability 25

E.Critical Risks and Possible Controversial Aspects 26

F.Loan/credit Conditions and Covenants: 29

IV.APPRAISAL SUMMARY 29

A.Economic and Financial Analyses 29

B.Technical 29

C.Fiduciary 30

D.Social 31

E.Environment 31

F.Safeguard Policies 31

G.Policy Exceptions and Readiness 32

Annex 1: Country and Sector or Program Background 33

Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies 45

Annex 3: Results Framework and Monitoring 50

Annex 4: Detailed Project Description 59

Annex 5: Project Costs (US$ Million) 77

Annex 6: Implementation Arrangements 78

Annex 7: Financial Management and Disbursement Arrangements 84

Annex 8: Procurement Arrangements 90

96

Annex 9: Economic and Financial Analysis 96



Annex 10: Safeguard Policy Issues 98

Annex 11: Project Processing 100

Annex 12: Documents in the Project File 101

Annex 13: Statement of Loans and Credits 102

Annex 14: Country at a Glance 106

Annex 15: Consultation Meetings - List of Institutions Represented in the TNC Preparation Process 109

Annex 16: Comparison between the Scope of the Second National Communication and the Proposed Project 111

Annex 17: Sectoral Programs under Development by the GOA Related with the Goals


of the Third National Communication Project 114

Annex 18: Maps (to be completed) 124




ARGENTINE REPUBLIC
THIRD NATIONAL COMMUNICATION TO THE UNITED NATIONS

FRAMEWORK CONVENTION ON CLIMATE CHANGE PROJECT


PROJECT APPRAISAL DOCUMENT
LATIN AMERICA AND CARIBBEAN
LCSEN

Date: August 5, 2010

Team Leader: Marcelo H. Acerbi

Country Director: Penelope Brook

Sector Director: Laura Tuck



Sectors: Environment

Themes: Climate Change



Project ID: P116974

Environmental screening category: C

Lending Instrument: Grant

Safeguard screening category: C



Project Financing Data

[ ] Loan [ ] Credit [x] Grant [ ] Guarantee

[ ] Other:




For loans/credits/other:

Loan currency: United States Dollars

Total Bank financing (US$m.): 2.4

Proposed terms: GEF Grant

Financing Plan (US$m)

Source

Local

Foreign

Total

Recipient

0.6




0.6

Global Environment Facility (GEF)




2.4

2.4

Total:




2.4

3.0

Recipient: The Argentine Republic

Responsible agency:

Chief of the Cabinet of Ministers:

- General Administration and Technical Directorate. Contact: Mr. German Arribas, General Technical Administrative Director (arribasg@jgm.gov.ar)

- Secretariat of the Environment and Sustainable Development (SAyDS), Climate Change Directorate. Contact: Nazareno Castillo Marín, Climate Change Director (ncastillo@ambiente.gov.ar)









Estimated Disbursements APL-1 (Bank FY/US$m)

FY

2010

2011

2012

2013

2014

2015

2016

Annual




0.2

1.7

0.5










Cumulative




0.2

1.9

2.4










Project implementation period: 1 December 2010 - 30 November 2012

Expected effectiveness date: 1 December 2010

Expected closing date: 30 November 2012





Does the Project depart from the CAS in content or other significant respects? (Ref. PAD I.C)

[ ] Yes [X] No

Does the Project require any exceptions from Bank policies?

(Ref. PAD IV.G)

Have these been approved by Bank management?

Is approval for any policy exception sought from the Board?

[ ] Yes [X] No

[ ] Yes [ ] No

[ ] Yes [X] No



Does the Project include any critical risks rated “substantial” or “high”?

(Ref. PAD III.E)

[X] Yes [ ] No

Does the Project meet the Regional criteria for readiness for implementation? (Ref. PAD IV.G)

[X] Yes [ ] No




Project development objectives (Ref. PAD II.B)

The PDO is to strengthen the information base and institutional capacity of the key organizations, members of the Project Steering Committee, to integrate climate change priorities into development strategies and relevant sector programs of the Argentine Republic by providing financial and technical support to prepare its Third National Communication (TNC) to the United Nations Framework Convention on Climate Change (UNFCCC).



Project Description (Ref. PAD II.C)

The Project consists of the following components:



Component 1: Harnessing National Potential for Climate Change Mitigation

Sub-component 1: GHG Inventory and Development of Tools to Manage the GHG Emissions Database

Sub-component 2: Actions to Enhance Climate Change Mitigation

Sub-component 3: Mitigation Policies and Measures (P&M)

Component 2: Strengthening National Adaptation Agenda

Sub-component 1: Assessment of Impacts of and Vulnerability to Climate Change

Sub-component 2: Actions to Improve Adaptation to Climate Change

Sub-component 3: Adaptation Policies and Measures (P&M)

Component 3: Institutional Strengthening, Capacity Building, and Information Management

Sub-component 1: Definition of Technical and Institutional Framework for the TNC

Sub-component 2: Institutional Strengthening and Capacity Building

Sub-component 3: Development, Publication and Dissemination of the TNC

Component 4: Project Management

Which safeguard policies are triggered, if any? (Ref. PAD IV.F)

No safeguard policies are triggered.



Significant, non-standard conditions, if any: None.

Conditions of Loan Effectiveness: No effectiveness conditions.

Main Loan Covenants: To be confirmed based on the Grant Agreement.




  1. STRATEGIC CONTEXT AND RATIONALE

  1. Country and Sector Issues

  1. During the years from 2004–2008, Argentina’s economy grew at an average annual rate of 8%. This economic expansion relied heavily on the use of natural resources for agricultural production, energy generation, and transportation of goods among other activities. Going forward, important decisions need to be made regarding the development path Argentina should follow. In the future, Argentina is increasingly likely to introduce environmental considerations and sustainable development concepts into its strategic sector development plans for each of the main economic sectors, which have not been fully considered in the past. A set of sector programs currently under development by different Governmental agencies suggests significant synergies with the goals of this Project. In that sense, the Ministry of Agriculture, Livestock and Fisheries (MAGyP, Secretariat of Energy and Secretariat of Environment and Sustainable Development (SAyDS), among others, are promoting different national programs that contribute to reduce the effects of climate change in the country. Details of these programs are described in Annex 17. They are initial efforts with potential for substantial mitigation and adaptation impacts. All the on-going activities and sectoral programs will contribute inputs to the TNC as lessons learned or opportunities to consider obstacles or barriers.

  2. The global path of CO2 emissions already surpasses the worst case scenario (SRES)1. Although there are uncertainties with regard to exact consequences, there is high confidence (IPCC 2007) that impacts from climate change, even under significantly more modest emission scenarios than the current trends predict, will affect the functioning and integrity of key ecosystems worldwide. While the impacts are being felt globally, the effects of climate change will likely impact Latin America and the Caribbean heavily. This is a region with substantial, but intrinsically fragile, natural capital, and where there are a number of climate sensitive regions (climate hotspots).

  3. Argentina has been identified as particularly vulnerable to the impacts of climate change. Significant vulnerabilities anticipated in the Second National Communication (SNC) for the period up to 2040 include: (i) reduction of the water level in the La Plata Basin; (ii) increase in water stress in northern Argentina, and in parts of the western areas of the country; (iii) potential water crisis in Mendoza, San Juan and Comahue; (iv) intense precipitation and floods in zones already affected; (v) further glacier retreat with implications for hydro-power generation and agriculture; (vi) increased vulnerability of coastal areas to sea level rise (SNC, 2007). Recently, extreme land degradation processes as well as extreme summer storms in Buenos Aires city confirm the trend.

  4. Currently available projections on climate change impacts at the national level present clear signals. E.g., most of the existing models project increased precipitation in Eastern, and decreased precipitation in Southwestern Argentina. Large uncertainties still exist, however, on the quantification of such changes. National efforts and different international collaboration agreements, e.g. one between the Japan International Cooperation Agency (JICA), the University of Buenos Aires, and the Meteorological Research Institute of Japan (MRI), and another between the National Center for Scientific Research (CNRS) of France, the Consejo Nacional de Investigaciones Científicas y Técnicas (CONICET), and the University of Buenos Aires, will be able to provide high resolution climate modeling throughout the country2.

  5. In this context, National Communications (NCs) are essential pieces of information to reach the ultimate goal of the UNFCCC. According to Article 4, paragraph 1, and Article 12, paragraph 1 of the UNFCCC, each Party shall communicate to the Conference of the Parties (COP), through the secretariat, the following elements of information: (a) a national inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases not controlled by the Montreal Protocol, to the extent its capacities permit, using comparable methodologies to be promoted and agreed upon by the COP; (b) a general description of steps taken or envisaged by the Party to implement the Convention; and (c) any other information that the Party considers relevant to the achievement of the objective of the Convention and suitable for inclusion in its communication, including, if feasible, material relevant for calculations of global emission trends.

  6. As an immediate background, the Second National Communication for Argentina (SNC) has produced several results of significant importance for the development of the TNC. Revised emission inventories for the years 1990, 1994, 1997, and 2000 have been developed. The results obtained from these inventories establish a solid baseline that facilitates the updating of GHG emissions and the analysis of future trends. The SNC also provided guidelines for adaptation and mitigation, thus a first step towards a concrete strategy. These guidelines promote interactive participation with relevant stakeholders, the inclusion of adaptation to future climate, as well as the presentation of climate variability. Four systems were analyzed in great detail: agriculture, coastal areas, water resources, and energy. The mitigation plan helped identify mitigation opportunities focused on energy efficiency and savings, renewable energy, emission reductions (ER) in the transport sector, and carbon sequestration. These adaptation and mitigation assessments lay the groundwork for further analysis. The SNC resulted also in the development of a high resolution regional circulation model in the Research Center on the Sea and the Atmosphere (CIMA) that will be of use for further vulnerability assessments under the proposed TNC.

  7. Even though the SNC was a key in identifying priorities for interventions, the translation of these assessments into concrete sector P&M with a broader impact has yet to happen. Climate change P&M are yet to be integrated into sector development strategies and to be assessed in terms of their economic, environmental and social impacts. Annex 16 includes a table indicating the main conclusions/outputs from the SNC and how the TNC envisions building upon them. In addition, the climatic and hydrological changes observed over the last decades point to the urgent need for prompt action particularly in the field of adaptation. For example the trend in reduced stream flows in the rivers originating in the Andes Mountains has already caused hydropower generation losses of up to 40% in the provinces of Rio Negro and Neuquen.

  8. The proposed TNC would further the process initiated by the SNC taking advantage of the currently strong political momentum to advance promptly with the CC agenda. The TNC will represent a key tool for decision makers at all levels contributing to deepening the understanding of the needs for and consequences of the implementation of mitigation and adaptation P&M. It will demonstrate their potential contribution to the sustainable development of the different economic sectors in Argentina. This is particularly relevant considering Argentina’s economic growth over the last years and the need for an analytical base to integrate CC aspects into that process. Ultimately, the TNC will help integrate climate change considerations into GOA’s sector policies and programs and would strengthen GOA’s capacities in that process. The Secretariat of Environment and Sustainable Development (SAyDS) has actively invited other sectors (both public and private) and groups of stakeholders (including NGOs) to contribute to the preparation of the TNC, as well as to Argentina’s positions in the UNFCCC negotiations prior to the COP15. Relevant sectors have proven open to participating in these discussions, confirming a crucial interest by stakeholders to proceed towards nationally agreed climate change agenda. Annex 15 provides details on institutions represented in different meetings.

  9. Argentina’s institutional framework to deal with climate change related issues has improved considerably since 2002. The institutional framework for climate change issues has been significantly strengthened since the Secretariat of Environment and Sustainable Development (SAyDS) was appointed the focal point for the UNFCCC in 2008 and the subsequent creation of the Climate Change Unit (UCC) in order to implement the climate change related activities of the SAyDS. In 2007, the UCC was converted into a directorate (CCD), further reflecting the importance given to the CC agenda by GOA. With the transition of the SAyDS into the Chief of the Cabinet's line management, its involvement in the coordination of inter-sectoral policies including climate change has started to increase considerably. As a result of this tendency, during December 2009, the SAyDS led the process to create the Governamental Commitee on Climate Change. This Committee has an inter-secretarial character aimed at discussing and advising on sector issues and ensuring the involvement and coordination of climate change considerations across relevant Governmental Institutions. The Committee will play a key role in the Project benefitting from most of the proposed activities, and will thus be strengthened further as an institutional platform for the national climate change agenda.

  1. Rationale for Bank Involvement




  1. The Project is in line with the Country Partnership Strategy (CPS). The Project is aligned with core objectives of the World Bank Group Country Partnership Strategy (CPS) 2010–2012 (Report #48476-AR), discussed by the Executive Directors on June 9, 2009. The key objectives of the CPS’ sustained growth pillar include: (i) infrastructure development with a focus on expanding access of the poor to basic services (water supply and sanitation, and urban and regional transport), reducing vulnerability to urban flooding and drainage problems, and removing logistics and transportation bottlenecks including an improvement of the country’s road system through performance-based management contracts to facilitate the expansion of trade and growth; and (ii) rural development and the environment with a focus on promoting agricultural growth, reducing rural poverty, and improving environmental management – all of which stand out as critical and relatively unaddressed concerns. The Project would be complementary to these objectives by generating relevant data for planning in these vulnerable sectors and by strengthening the country’s capacity in assessing the climate change threat to the above mentioned sectors.

  2. Bank role. Since 1998, the Bank has been active in the climate change agenda in the Latin America and Caribbean region, where it has 22 IBRD financed projects, 24 GEF operations, 56 carbon finance projects and 22 analytical and advisory activities. The Bank has also been active in fostering national institutional capabilities to deal with the consequences of climate change, e.g. support to climate change offices, facilitation of technical cooperation with leading climate research institutes, support in strengthening capacity in climate modeling and in implementing CDM projects. In Argentina, the Bank has a wide project portfolio with strong climate change linkages. References for these projects have been included in Annex 2.

  3. The World Bank is playing a leading role in supporting the adaptation field in Latin America. The Bank has identified adaptation to climate change impacts the top priority in a regional climate change strategy (World Bank, 2009). It has also proposed an adaptation strategy emphasizing an ecosystem approach and addressing long-term trends rather than climate variability (World Bank, 2005). The LCR region has the largest portfolio of any development agency on adaptation (Colombia: Integrated National Adaptation Program, P083075; Dominica, St. Lucia and St. Vincent: Implementation of Adaptation Measures in Coastal Zones, P090731; Regional Andes Adaptation Program for Glacier Dependent Ecosystems, P098248; CARICOM: Mainstreaming Adaptation to Climate Change, P073389, Mexico: Adaptation to Climate Change Impacts in the Coastal Wetlands of the Gulf of Mexico P100438; and Central America: Addressing Impacts of Extreme Weather Events, P099457). The Project would benefit from extensive experience in World Bank-assisted activities that dwell on adaptation issues.

  4. In terms of mitigation, the Bank has implemented the Carbon Finance Assistance Program to help design and launch the Argentina Carbon Facility (ACF). This has promoted the participation of Argentina in the international carbon market and the creation of a CDM project pipeline in the country. To date, the ACF has received 264 project ideas and issued 52 letters of No Objection, after which these projects have to follow the workflow of the Argentine Designated National Authority (DNA) in order to receive a national approval. Moreover, Argentina has been included in the Bank’s Forest Carbon Partnership Facility (FCPF) that assists developing countries in their efforts to reduce emissions from deforestation and forest degradation (REDD) by providing value to standing forests. In the FCPF context, Argentina will prepare a REDD strategy and further benefit from carbon finance. At the moment of preparating the TNC, the country was elaborating the readiness preparation proposal in order to receive funding to develop a REDD strategy.

  5. In Argentina, the Bank has assisted the Government in developing its SNC. The cooperation with the Bank on the SNC provides a solid basis for further analysis aimed at deepening the conducted assessments and translating them into concrete actions. The Bank brings strong technical expertise based on its work on all the sectors covered by the TNC: water, tourism, ecosystems, agriculture, energy, waste, disaster risk management, climate modeling and knowledge management, etc.

  6. The TNC shall also benefit from the Bank’s manifold scientific cooperation agreements with; inter alia, the National Center for Atmospheric Research (NCAR) and the National Oceanic and Atmospheric Administration (NOAA). Through these agreements, the TNC could access state of the art support on climate modeling as an additional tool and on a needs basis to complement the work on regional modeling already initiated at the local level. The TNC will further benefit from the Bank’s analytical work such as the regional study on the social impacts of climate change and the Amazon Dieback Study: a key question for Argentina is how climate-induced changes in the Amazon basin will affect rainfall patterns in the La Plata Basin, as well as climate in the Pampa region of Argentina, the central agricultural zone of the country.

  7. The Bank also has a broad lending portfolio in Argentina with which the proposed Project would be coordinated (Annex 2 expands the potential for cooperation). Specifically, the TNC would generate valuable data for long term planning and defining responses to climate change impacts in the sectors covered by the following lending operations: (i) the Urban Flood Prevention and Drainage Project (APL2), (ii) the National Urban Solid Waste Management Project; (iii) the Second Provincial Agricultural Development Project and the (iv) Buenos Aires Infrastructure Sustainable Investment Development Project. The proposed Project will also be coordinated with already approved GEF Projects in Argentina, or those in the process of approval in sectors related to energy efficiency, conservation of ecosystems and biodiversity , transport and forest management, for example: (i) the Energy Efficiency Project; (ii) the Establishment of Incentives for the Conservation of Ecosystem Services of Global Significance Project. (iii) the Rural Corridors and Biodiversity Conservation Project; (iv) the Sustainable Forest Management in the Transboundary Gran Chaco Americano Ecosystem Project; and (v) the Regional Sustainable Transport and Air Quality Project.

  8. The coordination of the TNC with the sectors, in which the Bank is involved, as well as the identification of new priority intervention areas in the field of adaptation and mitigation through the TNC, would provide new opportunities for cooperation.

  9. Finally, the TNC will learn from the development of other NCs in the Region. The TNC of Mexico to the UN Framework Convention on Climate Change was prepared with participation of the Government, academia, the private sector and NGOs. A very important step in integrating the participation of different ministries for decision-making was the creation of the Inter Ministerial Commission on Climate Change (CICC).

  10. CICC resulted from an agreement between the participating ministries, and was in charge of coordinating the actions of the Federal Public Administration, according to their own attributions. These actions are related to the implementation of policies for greenhouse gas emissions mitigation and for adaptation to the effects of climate change. This agreement also aimed at identifying, promoting and evaluating projects for the reduction and capture of GHG emissions in Mexico, by using the provisions of the Kyoto Protocol (KP) as well as other instruments directed towards the same goal. The members of the Commission were the Ministries of Foreign Affairs; Social Development; Environment and Natural Resources; Energy; Economy; Agriculture, Rural Development, Fisheries and Food; and Communications and Transport. The Ministry of Treasury and Public Credit was a guest participant. The Commission could also request other dependencies and governmental entities to participate on an ad-hoc basis when needed3.


Government Policies and Strategies

  1. The Project is in line with GOAaspirations on advancing with the national climate change agenda, and has a specific target of promoting identification and filling of policy and strategy gaps in relevant sectors.

  2. Argentina is introducing environmental considerations and sustainable development concepts into its strategic sectoral development plans for each of the main economic sectors, which have not been fully considered in the past (see a detailed list of relevant Government initiatives in Annex 17). There are incipient efforts with substantial potential for mitigation and adaptation impacts. The on-going activities and sectoral programs will contribute with inputs to the TNC as lessons learned or opportunities to consider obstacles or barriers.

  3. The main objective of the TNC is to design climate change P&M that could be integrated into sectoral development strategies and assessing their economic, environmental and social impacts. This will offer a scientific-based decision making tool not only for the Secretariat of Environment and Sustainable Development (SAyDS) but also for policy makers across the different areas of national, provincial and municipal governments.




  1. This Project proposal has been elaborated after an initial consultation process within and outside the SAyDS. Among Government agencies that have participated in this process are the Secretariat of Energy, the Secretariat of Industry, the MAGyP, and the Subsecretariat of Water Resources. Together with these, SAyDS is leading the climate change dialogue with other agencies, or with climate change units in provinces, which represent a valuable platform for building on specific TNC topics. The TNC preparation has triggered creation of the Government Committee on Climate Change, an inter sectoral group which under the coordination of the SAyDS will be in charge of the climate change policy for the country. The Committee will also serve as the Steering Committee for this Project (see Annex 6 for more details).




  1. Higher Level Objectives to which the Project Contributes


Environmental Objectives of the GOA4


  1. The GOA has made a commitment to convert sustainable development and care for the environment into a real public policy, seeking to include environmental dimensions at all levels of Governmental actions. In this way, the Government has been working on optimization of instruments such as territorial planning, adopting a system for environmental diagnostic and information, and civil participation to strengthen economic sustainability. Climate change is a key issue of national environmental policy, involving reduction of GHG emissions and adaptation. The first actions of this national strategy are promotion of renewable energy sources in order to increase their share in the energy mix, achievement of energy efficiency through specific programs, and preservation of native forests. Under this context, the proposed TNC is fully aligned with national environmental priorities, which include, among other activities, completion of a national GHG inventory aimed at strengthening the systems of environment diagnostic, as well as identification of adequate measures for mitigation and adaptation.

  2. The Project contributes to achieving the ultimate objective of the UNFCCC. The objective of the UN Framework Convention on Climate Change (UNFCCC), and of any related legal instruments that the COP may adopt, is to achieve stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a timeframe sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened, and to enable economic development to proceed in a sustainable manner.

  3. Argentina is an active player in the international climate change agenda. Argentina ratified the UNFCCC on March 11, 1994, and the KP in September 28, 2001. As part of the obligations assumed as a Party to the UNFCCC, the GOA submitted its First National Communication (FNC) in July 1997, and a revised one in October 1999. The SNC was submitted in December 2007 with the support of the World Bank and the GEF. During 2008, the GOA started the preparation of the TNC to the Parties of the UNFCCC through the continued help of the Bank/GEF. Argentina was actively involved in the pre-Copenhagen negotiations. Thereby, and post-COP15, Argentina has continued to hold its position to claim deeper GHG ER commitments by developed countries than those originally agreed under the KP. At the same time, Argentina is requesting economic, technological and scientific support to implement appropriate mitigation actions in developing countries. This position is being shared by the majority of the Latin American countries. The current administration of the Secretariat of Environment and Sustainable Development (SAyDS) is demonstrating a deep commitment to the climate change agenda, as well as related leadership capacity among the national public authorities. There is a strong will inside the SAyDS to lead the effort of integrating climate change mitigation and adaptation into sector strategies and to develop a national strategic CC framework.




  1. PROJECT DESCRIPTION

  1. Lending Instrument




  1. The Project would be financed by a Global Environment Facility (GEF Enabling Activity (EA) Grant with co-financing from the Secretariat of Environment and Sustainable Development (SAyDS).

  2. The type of project activity proposed, national communication (NC), has been agreed under the UNFCCC to be financed by the GEF. Article 4.3 of the UNFCCC specifies that the Annex II countries shall provide financial resources to meet “the agreed full costs” incurred by developing country Parties in complying with their NC obligations. As mentioned above, NCs are essential pieces of information to reach the ultimate goal of the UNFCCC by informing all Parties about the current situation and future actions of individual countries in relation to climate change, allowing the COP to better define objectives and the level of effort required to accomplish them. This fact shows the potential global environmental benefits of NCs. The GOA is currently reviewing the sector development strategic plans for each of the main economic sectors; a part of the committed co-financing of the Project relates with this ongoing work.

  3. The Project is in line with the GEF support to Enabling Activities (EAs) pertaining under the GEF Climate Change Focal Area (CCFA). Under the Climate Change Focal Area, the GEF finances eligible enabling, mitigation, and adaptation activities. In particular, and according to the CCFA Strategy and Strategic Programming for GEF-4, EAs will continue to be financed by the GEF, as NCs represent an obligation for non-Annex I Parties to the UNFCCC. The GEF will make "further arrangements necessary to ensure that adequate and timely support for third and subsequent NCs is made available to countries requiring it". The GEF-4 programming document also emphasizes the need to help these national communications to develop into strategic documents that identify and implement programs and activities at the national level, both in the fields of mitigation and adaptation. To accomplish this, deeper commitment to climate change would be required at the national level. The proposed Project, as well as the approach taken by the GOA, is in line with this objective by supporting the design of policies and measures (P&M) that would provide the strategic framework for identified adaptation and mitigation actions. The proposed Project would thus go beyond the achievements of the SNC assessments by integrating climate change into sectoral policies and development planning. Beyond the GEF support for TNC, the proposed Project activities are also complying with the GEF mitigation and adaptation mission.

  1. Project Development Objective and Key Indicators




  1. The PDO is to strengthen the information base and institutional capacity of the key organizations, members of the Project Steering Committee, to integrate climate change priorities into development strategies and relevant sector programs of the Argentine Republic by providing financial and technical support to prepare its TNC to the UNFCCC.

  2. The TNC aims at contributing to the development of a national climate change strategy especially for national level decision makers to achieve national development goals and show leadership in addressing climate change through voluntary action. The TNC also aims at benefitting decision makers at provincial and municipal levels as well as the general public.

Key performance indicators:


  1. Key performance indicators are the following:

  • Climate change mitigation: Number of studies available to inform different institutions and sectors about feasible mitigation policies and measures and their potential prioritization to facilitate decision making.

  • Climate change adaptation: Number of studies available to inform different institutions and sectors about feasible adaptation policies and measures and their potential prioritization to facilitate decision making.

  • Capacity building: % of targeted institutions with improved capacity to take proposed mitigation and adaptation policies and measures forward, and % of targeted stakeholder groups that express increased awareness on climate change concerns.




  1. Project Components




  1. The Project has four main components described as follows (and as presented in the draft Grant Agreement):

Component 1: Harnessing National Potential for Climate Change Mitigation

  1. Upgrade and development of the Recipient’s national inventory of greenhouse gas emissions (GHG), including the provision of support to strengthen the Recipient’s technical capacity for modeling, analyzing and projecting GHG emissions.

  2. Carrying out of studies on mitigation potential in the Recipient’s main economic and GHG-emitting sectors, with an aim at identifying priority mitigation measures.

  3. Enhancement of an enabling framework for the implementation of mitigation measures, including the design and delivery of a set of policies and mitigation measures aimed at integrating climate change into the Recipient’s development strategy and sector programs.



Component 2: Strengthening National Adaptation Agenda

A. Provision of support for the carrying out of socio-economic and climate- change modeling scenarios, targeted at identifying priority adaptation actions and expected impacts, costs and benefits (building upon the conclusions of the SNC, as applicable).

B. Carrying out of studies to further develop priority adaptation actions necessary to strengthen the Recipient’s preparedness to climate- change impacts in areas identified as most vulnerable.

C. Enhancement of an enabling framework for the implementation of adaptation measures, including the design and delivery of a set of policies and adaptation measures aimed at integrating climate change into the Recipient’s development strategy and sector programs.
Component 3: Institutional Strengthening, Capacity Building, and Information Management

A. Provision of support to define the technical scope of activities to be carried out under the TNC, including the design of the institutional and coordination arrangements necessary to facilitate access to Project information and to secure stakeholders’ ownership and participation.

B. Strengthening of institutional capacity at the national, provincial and municipal levels, with regard to the integration of climate data into sector programs and strategies through, inter alia, the carrying out of workshops aimed at developing and disseminating Project-related information and materials, targeting the participation of key governmental agencies, scientific and technological institutions, and civil society.

C. Preparation and dissemination of the TNC, incorporating the conclusions and results reached through the carrying out of Project-supported studies and additional related information.

Component 4: Project Management

A. Provision of technical and operational assistance, as necessary, to support adequate Project management and coordination by the PIU and the Steering Committee, including carrying out Project audits.



  1. A detailed description of each component is included in Annex 4 and a brief description at sub-component level is added below.


Component 1: Harnessing National Potential for Climate Change Mitigation (GEF cost: US$ 0.53 million, total: US$ 0.67 million)


  1. The objective of this component is to update the country’s GHG emission inventory for each emitting sector, and assess and design potential mitigation measures5. These objectives will be achieved through three sub-components.

  2. Sub-component 1.1: GHG Inventory and Development of Tools to Manage the GHG Emissions Database: Upgrade and development of the Recipient’s national inventory of greenhouse gas emissions (GHG), including provision of support to strengthen the Recipient’s technical capacity for modeling, analyzing and projecting GHG emissions.

  3. Sub-component 1.2: Actions to Enhance Climate Change Mitigation: Carrying out studies on mitigation potential in the Recipient’s main economic and GHG-emitting sectors, energy and transport, waste, agriculture, and forestry, with an aim at identifying priority mitigation measures. The supported studies will analyze the technical and economic aspects related to implementation of the identified mitigation actions in Argentina.

  4. Sub-component 1.3: Mitigation Policies and Measures (P&M): Enhancement of an enabling framework for the implementation of mitigation measures, including the design and delivery of a set of mitigation P&M aimed at integrating climate change into the Recipient’s development strategy and sector programs. This includes development of future GHG emission scenarios targeted at reducing emissions; analysis of the technical and economic, social, environmental, financial, and institutional, stakeholder-based aspects related with implementation of the identified mitigation actions in Argentina.

Component 2: Strengthening National Adaptation Agenda (GEF cost: US$ 0.93 million, total: US$ 1.16 million)


  1. The objective of this component is to assess the anticipated climate change impacts and to identify the most vulnerable sectors and areas in Argentina. Necessary priority adaptation actions including estimation of their sector-wide costs will be designed to strengthen adaptive capacity and climate resilience. Irreversibility, magnitude and immediacy will serve as initial criteria for choosing priority adaptation P&M. Additionally, enhancement of an enabling framework for implementation of adaptation measures, as well as integration of climate change into development strategies and sector programs will be supported.

  2. Sub-component 2.1: Assessment of Impacts of and Vulnerability to Climate Change: Production of current and planned socio-economic and climate change scenarios, targeted at identifying priority adaptation actions and expected impacts, costs and benefits relying on the state of the art climate models and building upon the conclusions of the SNC and other assessments, as applicable.

  3. Sub-component 2.2: Actions to Improve Adaptation to Climate Change: Carrying out of studies to further develop priority adaptation actions necessary to strengthen the Recipient’s preparedness to climate change impacts in areas identified as most vulnerable, including technical and economic analysis of the proposed adaptation actions.

  4. Sub-component 2.3: Adaptation Policies and Measures (P&M): Enhancement of an enabling framework for the implementation of adaptation measures, including the design and delivery of a set of adaptation P&M aimed at integrating climate change into the Recipient’s development strategy and sector programs on the above named sectors, as well as on challenges and opportunities in labor sector and its adaptation to climate change. This will include technical, economic, environmental, social and financial analysis of the proposed adaptation actions.

Component 3: Institutional Strengthening, Capacity Building, and Information Management (GEF cost: US$ 0.87 million, total: US$ 1.09 million)


  1. The objective of this component is to prepare the detailed TORs of the studies, strengthen institutional capacity of the organizations members of the Project Steering Committee, and disseminate the TNC results to a broad audience. Dissemination efforts will be guided by a thorough communication strategy, and messages and communication channels will be tailored according to targeted diverse audiences.

  2. Sub-component 3.1: Definition of Technical and Institutional Framework for the TNC: Provision of support to define the technical scope of activities to be carried out under the TNC, including the detailed design of the institutional and coordination arrangements necessary to facilitate access to Project information and to secure stakeholders’ ownership and participation.

  3. Sub-component 3.2: Institutional Strengthening and Capacity Building: Strengthening of institutional capacity at the national, provincial and municipal levels, with regard to the integration of climate data into sector programs and strategies through, inter alia, organizing workshops for national, provincial and municipal agencies and legislators; teachers at high school and primary school levels; civil society (CS); and journalists aimed at developing and disseminating Project-related information and materials tailored to different interest groups.

  4. Sub-component 3.3: Development, Publication and Dissemination of the TNC. Preparation and dissemination of the TNC to all relevant stakeholders, incorporating the conclusions and results reached through the carrying out of the Project-supported studies and additional related information. Preliminary results will be discussed through different mechanisms such as workshops.

  5. Component 4: Project Management (GEF cost: US$ 0.11 million, total: US$ 0.13 million): Provision of technical and operational assistance, as necessary, to support adequate Project management and coordination by the PIU and the Steering Committee, including carrying out of Project audits.

  6. The head of the PIU will be the Secretariat of Environment and Sustainable Development (SAyDS)/the Chief of the Cabinet of Ministers (JGM). The Climate Change Directorate (CCD) will be in charge of the Project implementation, including the selection of consultants, review of the preliminary and final reports, coordination of workshops, etc. The General Administrative and Technical Directorate (DGTA) in JGM will be in charge of the fiduciary issues, as well as serve as the formal communication channel between the World Bank and the Executing Agency.

  7. Lessons from the SNC: Quality, National Ownership, and Development of Future Climate Scenarios. The SNC produced three key results that provide useful lessons for the future climate change planning: the GHG emissions inventories, the Adaptation Strategy, and the National Mitigation Plan including capacity building. The revised and new GHG inventories for years 1990, 1994, 1997 and 2000 were important to establish a baseline for the last decade of the 20th century. The TNC will determine new estimations, which will further facilitate analyzing of emission trends. The vulnerabilities identified by the SNC showed that the significant climatic changes over the last 40 years have resulted in sharpening agricultural and livestock sector frontiers to the north and west of the traditional agricultural area. This autonomous adaptation trend was economically successful in the short term, but according to climate Projections it could have significant environmental impacts during the coming decades.




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