Program Description

A Program within PROARCA that supports CONCAUSA and Presidential
Initiatives on Climate Change in Central America

## 1. Background 

In September 2001, USAID/EGAT/ENV transferred \$2.2 million in FY01
funding to USAID/G-CAP specifically for climate change activities in
Central America that support the Central America-USA Joint Declaration
(CONCAUSA) Plan of Action. These resources were obligated under
USAID/G-CAP's Strategic Objective Agreement with the System for Central
American Integration Secretariat (SG-SICA) and the Central American
Commission on Environment and Development (CCAD). The informal agreement
between USAID/EGAT's Climate Change Team and USAID/G-CAP prior to this
obligation stipulated that the resources would be implemented for
activities that supported not only CONCAUSA but also the Regional
Environmental Program for Central America (PROARCA), and the recently
announced presidential initiatives on climate change. More specifically,
the resources allocated to USAID/G-CAP for climate change activities in
Central America should: 1) contribute to PROARCA's strategy; 2) support
the CONCAUSA Plan of Action; and 3) support the US priorities on climate
change, as outlined in the recently announced presidential initiatives
on climate change.

## 2. Consultation and Participation

To define the scope for a climate change program in Central America, key
individuals were consulted. These included USAID/EGAT's Climate Change
team, representatives from EGAT's Energy Team, Water Team, Biodiversity
Team, Urban Programs, the Development Credit Office, LAC regional
environmental officers, and the State Department back-stop for climate
change activities in the LAC region. Ancillary meetings were held with
USDOE's Chief of Integrated Analysis in the Office of Energy Efficiency,
and the Chairman of the Host Country Committee for the World Bank's
Prototype Carbon Fund. Additionally, informal consultations were held
through e-mail with partners in Central America. The climate change
section of the CONCAUSA action plan and presidential initiatives on
climate change served as backdrops to these discussions.

The activities outlined herein are in different stages of development.
Whereas a detailed activity description has been prepared for some,
others will require additional consultation with participating USG
agencies and key Central American institutions such as the national
climate change offices before their designs are finalized. To this
effect, the Climate Change Team, USAID/G-CAP, and CCAD are consulting
with USG agencies and relevant Central American organizations to elicit
their input and discuss outstanding details. To this effect, PROARCA has
provided resources to CCAD to facilitate the consultation process.

## 3. Results Framework for the PROARCA GCC activity

The United States and all Central American countries have ratified the
United Nations Framework Convention on Climate Change (UNFCCC). In doing
so, the countries have assumed a number of commitments specified in
Article 4 of the Convention. These include the periodic realization of
national Green House Gases (GHGs) inventories, the formulation and
implementation of climate mitigation programs, cooperation in the
promotion of climate friendly technologies, and cooperation in the
preparation of adaptation plans for climate change.

Many factors compromise the ability of Central American countries to
meet the commitments under the UNFCCC. These include: 1) limited
capacity to analyze the climate and economic implications of renewable
energy policies; 2) inadequate knowledge for investment decision-making
in clean energy technologies; 3) limited data on land-use change and C
emissions; and 4) inadequate understanding of the vulnerability of
Central America to climate change. The GCC activity described herein
shall address these restrictions to help Central America and the United
States honor their commitments under the UNFCCC.

The overall result for the GCC activity described herein is *Enhanced
Central American participation in the UNFCCC*. It will be met through
four intermediate results: 1) Systems for reliable GHG emissions
forecast from the energy sector; 2) Improved conditions for investment
in clean energy technologies; 3) Systems for reliable estimates of GHG
emissions from land-use changes; and 4) Increased capacity to reduce
vulnerability to climate change. These and lower level results are
presented in Figure 1. The relationship between the intermediate results
and CONCAUSA, the presidential initiatives and the PROARCA strategy are
outlined in Attachment 1 and briefly discussed under each result below.

### 

### Result 1: Systems for reliable GHG emissions forecast from the energy sector

*Justification -* Most Central American countries have submitted their
first national GHG emissions inventories as required under Article 4 of
the UNFCCC. However, the lack of an organized and complete database on
emissions from the energy sector delayed and compromised the quality of
these inventories and limits the ability of Central American countries
to forecast emissions or the effect of energy-related climate friendly
actions with confidence. These limitations curtail the ability of
Central American nations to enter into an informed dialogue with
developed nations concerning joint efforts to reduce GHG emissions and
design viable clean energy policies and programs.

Article 4 of the UNFCCC calls for parties to formulate national and/or
regional programs with measures to mitigate climate change. This
requires that the countries analyze and estimate *a-priori* the economic
and GHG emissions impacts of alternative energy policies or programs
against a baseline or "business-as-usual" scenario. This subsumes the
existence of an effective system for GHG emissions data organization, a
comprehensive energy sector database, and the development and
application of economic models of climate mitigation for the energy
sector.

Figure 1. Results Framework for GCC activity within PROARCA

Table 1. Relationship of GCC activities to CONCAUSA, presidential
initiatives and PROARCA

+-----------+----------------+-----------------------+----------------+
| GCC       | Pertinent      | Relationship to       | Relationship   |
| activity  | CONCAUSA GCC   | presidential          | to PROARCA's   |
| result    | Objectives     | initiatives           | strategy       |
+===========+================+=======================+================+
| Systems   | a)  GHG        | Supports Cooperation  | Contributes    |
| for       |     monitoring | in the Western        | to:            |
| reliable  |     and        | Hemisphere Initiative |                |
| GHG       |                | (CWHI) by:            | IR4: Increased |
| emissions |   verification |                       | use of         |
| forecast  |     systems in | Revitalizing US       | less-polluting |
| for the   |     place      | efforts to assist     | technologies   |
| energy    |                | developing countries  |                |
| sector    | b)  Formulate  | to acquire tools and  |                |
|           |     viable GHG | expertise needed to   |                |
|           |     emissions  | measure and monitor   |                |
|           |     mitigation | emissions             |                |
|           |     policies   |                       |                |
|           |     consistent |                       |                |
|           |     with       |                       |                |
|           |                |                       |                |
|           |    sustainable |                       |                |
|           |     economic   |                       |                |
|           |                |                       |                |
|           |    development |                       |                |
+-----------+----------------+-----------------------+----------------+
| Improved  | a)             | Supports CWHI by:     | Contributes    |
| c         |  Establishment |                       | to:            |
| onditions |     and        | Promoting the export  |                |
| for       |                | of climate-friendly   | IR4: Increased |
| i         |    development | clean energy          | use of         |
| nvestment |     of         | technologies          | less-polluting |
| in clean  |                |                       | technologies   |
| energy    | scientifically | Supports National     |                |
| tec       |     measurable | Climate Change        |                |
| hnologies |     and        | Technology Initiative |                |
|           |     verifiable | (NCCTI) by:           |                |
|           |     GHG        |                       |                |
|           |     mitigation | Supporting            |                |
|           |     actions    | demonstration         |                |
|           |                | projects for          |                |
|           | b)  Formulate  | cutting-edge          |                |
|           |     viable GHG | technologies          |                |
|           |     emissions  |                       |                |
|           |     mitigation |                       |                |
|           |     policies   |                       |                |
|           |     consistent |                       |                |
|           |     with       |                       |                |
|           |                |                       |                |
|           |    sustainable |                       |                |
|           |     economic   |                       |                |
|           |                |                       |                |
|           |    development |                       |                |
+-----------+----------------+-----------------------+----------------+
| Systems   | a)  GHG        | Supports CWHI by:     | Contributes    |
| for       |     monitoring |                       | to:            |
| reliable  |     and        | Revitalizing US       |                |
| estimates |                | efforts to assist     | IR1: Improved  |
| of GHG    |   verification | developing countries  | management of  |
| emissions |     systems in | to acquire tools and  | protected      |
| from      |     place and  | expertise needed to   | areas; and     |
| land-use  |                | measure and monitor   |                |
| changes   |    operational | emissions and act on  | IR2: Increased |
|           |                | GHG emissions         | market access  |
|           | b)  Formulate  |                       | for            |
|           |     viable GHG | Promoting sustainable | e              |
|           |     emissions  | forest conservation   | nvironmentally |
|           |     mitigation | and land-use in the   | sound products |
|           |     policies   | developing world      | and services   |
|           |     consistent |                       |                |
|           |     with       | Supports NCCTI by:    |                |
|           |                |                       |                |
|           |    sustainable | Developing improved   |                |
|           |     economic   | technologies for      |                |
|           |                | measuring and         |                |
|           |    development | monitoring GHG        |                |
|           |                | emissions and         |                |
|           | c)             | supports              |                |
|           |  Establishment | demonstration of      |                |
|           |     and        | cutting-edge          |                |
|           |                | technologies          |                |
|           |    development |                       |                |
|           |     of         |                       |                |
|           |                |                       |                |
|           | scientifically |                       |                |
|           |     measurable |                       |                |
|           |     and        |                       |                |
|           |     verifiable |                       |                |
|           |     GHG        |                       |                |
|           |     mitigation |                       |                |
|           |     actions    |                       |                |
+-----------+----------------+-----------------------+----------------+
| Increased | a)  Formulate  | Supports CWHI by:     | Contributes    |
| Central   |     viable     |                       | to:            |
| American  |     adaptation | Strengthening and     |                |
| capacity  |     policies   | expanding scientific  | IR1: Improved  |
| to adapt  |     consistent | research to better    | management of  |
| to        |     with       | understand regional   | protected      |
| climate   |                | impacts of climate    | areas; and     |
| change    |    sustainable | change                |                |
|           |                |                       |                |
|           |    development |                       |                |
+-----------+----------------+-----------------------+----------------+

*Relationship to CONCAUSA, presidential initiatives and PROARCA* \--
Elements of the President's climate change policy include the "Promoting
Cooperation in the Western Hemisphere and Beyond," initiative. This
initiative entails the revitalization of US efforts to assist developing
countries to acquire the tools and expertise needed to measure and
monitor GHG emissions, both prerequisites to the elaboration and
implementation of climate friendly policies and programs. The CONCAUSA
Plan of Action on climate change echoes the need for improved GHG
monitoring systems. The elaboration of accurate energy sector emission
inventory and the establishment of reliable sector-level baselines would
enable countries to quantify the climate benefits of individual
projects, thus paving the way for the US to undertake specific joint
actions with Central American countries to reduce GHG emissions as
provided for in article 4.2 of the UNFCCC. Joint collaboration would
foster the adoption of less polluting technologies, a stated result of
PROARCA's strategy.

*Lower level results and illustrative activities --* To establish
systems to enable Central Americans to reliably forecast GHG emissions
associated with given energy policies, USAID would pursue two
lower-level results: 1) Capacity for the application of climate
mitigation models to the energy sector increased; and 2) Models to
analyze economic and climate implications of energy sector policies
developed. Achieving these results would entail a number of activities
such as;

1.  Developing a comprehensive emissions database for the energy sector;

2.  Calculating emissions baseline for the energy sector or sub-sectors;

3.  Assessing renewable energy resources availability; and

4.  Building national-level energy sector economic models of climate
    change;

5.  Providing training on energy sector model application; and

6.  Institutionalizing the use of energy sector and climate mitigation
    planning tools.

*Approach --* USAID's approach to achieve the IRs will center on the
development and application of data demanding modeling frameworks. The
building of models for the energy sector for economic and climate
mitigation analysis will provide the organizing framework that will help
guide data collection and organization, and will serve to identify the
elements of a data collection and management protocol that are
fundamental for the institutionalization of climate friendly energy
policy decision-making. Such a data-demanding modeling framework would
help Central American nations collate existing information and identify
data gaps that compromise the development of GHG emissions estimates and
scenarios. Capacity on development and application of modeling and data
collection tools and processes shall be acquired through hands-on
training of Central Americans, as they build and apply economic models
of climate change mitigation policies to the energy sector.

USAID/G-CAP's experience in Honduras, El Salvador and Panama indicates
that the Markal-Macro family of models provides a suitable framework to
organize data collection and generate emissions scenarios and credible
emissions baseline. The Markal-Macro modeling framework is also a
powerful tool for energy sector planning.

Whereas the Markal-Macro framework could be used to guide database
development and would be one tool used to generate emissions
projections, baselines, and quantify the benefits of climate friendly
energy policies, technologies and processes, USAID/G-CAP and USAID/EGAT
would help Central Americans assess and identify other tools and
approaches to determine baselines and the benefits of climate friendly
actions in the energy sector.

The evaluation of pros and cons of different approaches for baseline
establishment and climate benefits determinations would entail an
informed dialogue among Central Americans through a series of workshops
and conferences. These workshops, some to be facilitated by CCAD, would
entail substantial input by US specialists in emissions inventories and
energy sector planning. Increased capacity for energy-sector expansion
planning would entail institutionalization of the approaches and tools
developed. USAID would help key Central American institutions to utilize
these tools to the benefit of the countries in the region.

### **IR2: Improved conditions for investment in clean energy technology**

### Justification -- Central America's energy sector is undergoing a process of transformation whereby most countries in the region have or are in the process of privatizing electricity generation and/or distribution. This is taking place while growth in generating capacity exceeds 5% per annum.

Apart from fuel wood used for cooking in rural areas, the principal
source of renewable energy in Central America is large hydropower
facilities. From a private sector investment perspective, large
hydropower facilities cannot compete with thermal plants. They require
larger investments, tend to have longer payback periods, are affected by
climatic variability, and may have serious environmental impact. Hence,
the privatization of electricity generation in Central America has
triggered a dramatic shift away from renewable energy resources to
fossil fuels. From 1990 to 1996 the share of installed thermal
electricity power supply capacity increased from 30% to 40% of total.
Recent technological advances in power generation from wind, biomass,
and small-scale hydro plants offer an opportunity for Central America to
diversify its energy sector away from an over reliance on fossil fuels.

Because investment decisions are shaping the electricity supply sector,
current trends indicate that Central America will soon have an
electrical sub-sector that is dominated by thermal plants powered
primarily by oil. A considerable proportion of Central American
households (e.g. 30% in Honduras) still do not have access to
electricity and the ever-increasing population requires that economic
growth be brisk. It is very clear that the demand for electricity will
continue to grow at a vertiginous pace.

### With the exception of Costa Rica, the countries in Central America have not significantly tapped sources of renewable energy other than geothermal or hydropower for electricity generation. Limited knowledge about renewable energy resources, existing technologies, access to credit, and unclear fiscal and legal frameworks keep regional and international investors at bay. These hurdles compromise not only the development of clean energy technologies but are crucial impediments to the development of many remote communities within Central America that are situated outside the areas proposed for central grid expansion. These communities stand to benefit greatly from decentralized electricity generation and provision.

*Relationship to CONCAUSA, presidential initiatives and* PROARCA \-- One
component of the Presidential Initiative to Promote Cooperation in the
Western Hemisphere and beyond is to foster the adoption of climate
friendly clean energy technologies. This is consistent with Article 4.1
(c) of the UNFCCC, which states that all parties shall cooperate in the
development, application and diffusion, including transfer of
technologies, practices and processes that control, reduce or prevent
anthropogenic emissions of GHG. The proposed CONCAUSA action plan
reiterates the willingness of the US and Central America to collaborate
on climate mitigation by committing to the establishment and development
of scientifically measurable and verifiable GHG mitigation actions. The
increased use of less polluting technologies is a stated goal of
PROARCA's strategy.

*Lower level results and illustrative activities* -- To improve
conditions for investments in clean energy technologies USAID would
pursue two lower-level results: 1) Capacity to evaluate investment
potential of energy technologies increased; and 2) Information on
investment procedures and regulations for the energy sector accessible.
Achieving these lower-level results would entail a number of activities
such as:

1.  The undertaking of an inventory of potential renewable energy
    resources (bio-fuels, wind, hydrologic) in Central America;

2.  The assessment of market potential and identification of barriers to
    investment in selected technologies;

3.  The application of spreadsheet models to evaluate the financial
    feasibility of selected technologies;

4.  Publishing and disseminating information to help investors make
    investment decisions about the energy sector in Central America.

Illustrative Approach \-- To establish the potential and limitations for
the implementation of renewable energy technologies in Central America,
USAID shall support an assessment of renewable energy resources such as
wind, bio-fuels, and industrial and municipal waste and by-products. The
evaluation of renewable energy resource potential will be complemented
by a manual on the environmental and legal issues that have a bearing on
investments in renewable energy projects in Central America, and an
assessment of market potential for selected technologies. The market
potential for renewable energy technologies would be assessed through
the application of modeling tools, that can identify cost-effective
technology mixes to meet projected demand, and by considering national
electricity demand projections and supply plans. An analysis of barriers
to investment shall look at the appropriateness of the regulatory
framework for investment in the energy sector of participating
countries, the existence of incentives and disincentives and barriers
such as tariffs on renewable energy technologies. Finally, to increase
the viability of specific projects, Central Americans would be trained
on the application of spreadsheet-based models, such as Proform
developed by Lawrence Berkeley National Laboratory, which helps project
developers estimate the environmental, economic and financial
performance of clean energy projects. USAID will ensure that the
information generated will be published and presented to important
investors and decision makers. USAID shall also facilitate contacts
between potential investors and project developers.

### **IR 3: Reliable estimates of GHG emissions from land-use changes**

*Justification* -- Most countries in Central America (Honduras, El
Salvador, Nicaragua, Guatemala, Costa Rica) have produced national GHG
inventories as required under the UNFCCC. However, the accuracy of the
national inventories was compromised because of the lack of reliable
data on deforestation rates and the carbon content of different
vegetation types occurring in the region. Faced with these constraints,
the teams responsible for the development of the GHG inventories had to
rely on default values for carbon per hectare provided by the IPCC, and
estimates of deforestation based on expert opinions.

The role that sinks should play in mitigating climate change is a
divisive issue in the climate change negotiations. Whereas some
positioning is clearly political, much of the disagreement may be
attributed to the perceived difficulties in quantifying the role of
forest ecosystems in the carbon cycle.

The Central Americans and the US agree that forestry and land-use change
should be an important element in climate change mitigation. Moreover,
because emissions from deforestation feature invariably as one of the
two most important contributors to national GHG emissions, Central
Americans believe that forest ecosystem conservation in addition to
reforestation and aforestation should be an integral part of a global
climate mitigation strategy. The importance that Central America places
on forest conservation as an element in a climate mitigation strategy is
subtended by considerable investment by countries in the region to
develop conservation-based carbon sequestration project proposals. This
is true not only of Costa Rica, but also of Belize, Honduras and
Guatemala.

To advance the dialogue over the inclusion of sink conservation as a
viable climate mitigation action, the countries need to present
arguments that are subtended by reliable data and information. Accurate
estimates of the contribution of deforestation to atmospheric CO2
concentrations would improve the quality of the national communications
and permit a sober evaluation of the influence of deforestation on the
climate system. Finally, accurate quantification of CO2 emissions would
strengthen the basis for project-level climate mitigation actions.

*Relationship to CONCAUSA, presidential initiatives and PROARCA* \-- The
US re-affirmed its interest in the role of forest conservation in the
context of climate mitigation by including it as one of five components
in the Presidential Initiative to Promote Cooperation in the Western
Hemisphere and Beyond announced recently. The CONCAUSA action plan calls
for the establishment of GHG monitoring and verification systems. This
is unachievable without a reliable system to estimate GHG emissions from
land-use changes. Finally, PROARCA's Strategic Objective -- Improved
Environmental Management in the Mesoamerican Biological Corridor and its
IR1 -- Improved protected areas management -- require information on
deforestation rate as a basis for conservation planning and
strategizing.

*Lower-level intermediate results and illustrative activities --* To
derive reliable estimates of GHG emissions from land-use changes, USAID
would pursue two lower-level results: 1) System for monitoring land-use
changes established; and 2) Reliable above ground forest C content
derived for principal forest types. Illustrative activities supported by
USAID include:

1.  Assessing above ground C content of principal vegetation types;

2.  Training Central Americans on the use of cutting-edge remote sensing
    technology to monitor land-use changes;

3.  Training Central Americans on C measurement methods and techniques;

4.  Institutionalizing the use of remotely sensed data to manage Land
    Use Change.

*Approach* -- Thematic mapper and MODIS spectral data and computer aided
data processing techniques in conjunction with systematic ground
truthing would be used to derive reliable estimates of deforestation
rates by principal vegetation types. Regionally applicable default
values for principal forest types would be established through
vegetation sampling throughout the region, preferably in association
with sustainable timber harvesting operations or allometric techniques
such as the relationship between canopy cover and C content of selected
vegetation types. Capacity building would be achieved by incorporating
training of Central Americans as an integral part of the studies and
development of monitoring system.

### **IR 4: Increased Central American capacity to adapt to climate change** 

*Justification* -- Central America is one of the most vulnerable regions
in the world. This vulnerability is derived from its geotectonic
position and steep topography overlain by a stressed socio-economic
system that is ill suited to withstand either gradual climate change or
unusual climate events.

Because Central America is vulnerable to climate change, the region was
included in the US-sponsored Country Studies Program Support for Climate
Change Studies, Plans and Technologies Assessments (US Country Studies
Program).

The US Country Studies Program vulnerability assessments in Central
America focused on coastal zones, agriculture and water resources. The
low resolution of climate change models proved inadequate to forecast
the biophysical impact of climate change at a scale commensurate with
Central America adaptation needs. The analyses were also compromised by
the lack of or quality of data available to forecast climate change and
socio-economic conditions.

Considerable progress has been made in climate prediction models and in
the ability of Central American countries to analyze the socio-economic
impacts of climate change over the past several years. There is also a
heightened awareness of the vulnerability of the region to climate
change. Vulnerability and adaptation features prominently in the
political and administrative agendas of Central American governments as
reflected in the CONCAUSA accords. The timing is propitious to help
Central American evaluate the impacts of climate change with confidence
and develop adaptation strategies and plan to help reduce vulnerability.

*Relationship to CONCAUSA, presidential initiatives and PROARCA* -- One
of CONCAUSA's principal objectives is to increase Central American
capacity to adapt to climate change. Hence, there is congruence between
CONCAUSA's aim as it pertains to vulnerability and adaptation and the
GCC activity described herein. To increase this capacity USAID shall
contribute to the Strengthening and expanding scientific research to
better understand regional impacts of climate change, one of the
elements of the Cooperation in the Western Hemisphere Presidential
Initiative. Finally, reduced vulnerability entails improved
environmental management, an outcome that is in line with PROARCA\'s
strategic objective (Improved Environmental Management in the
Mesoamerican Biological Corridor) and the program's IR1 (Improved
protected areas management).

*Lower-level results and illustrative activities --* To increase the
capacity of Central American to adapt to climate change, USAID will
pursue lower-level results: 1) Vulnerability of critical ecosystems,
regions or sectors characterized; and 2) Capacity to develop
vulnerability reduction strategies and plans increased. Activities that
will contribute to the achievement of these IRs include:

1.  Bringing together international and regional experts to enhance the
    accuracy of climate models in predicting climate change impact in
    Central America;

2.  Increase the capacity of Central Americans to make use of climate
    observing tools and methods;

3.  Improve on climate change impact analyses undertaken by the US
    Country Studies program and other efforts to provide and up to date
    assessment of potential climate-related biophysical, social, and
    economic vulnerabilities;

4.  Bring together international and national experts and policy makers
    to develop recommendations for adaptation to climate change.

*Approach* \-- There are several climate change models that aim to
predict changes in biophysical parameters as a result of the increasing
atmospheric concentration of GHGs. Until recently these models had
resolutions that were inappropriate for applications in Central America
because of the region's reduced size and microclimates. This compromises
the ability of Central American countries to make sound adaptation
policies. To reduce this deficiency, USAID would support the adaptation
of existing climate change models to a scale compatible with Central
America's needs. This is now possible in light of new developments in
modeling approaches and high-powered computers. For example, Oak Ridge
National Laboratory's Cheetah super computer is currently running a
climate change model with a resolution of 1.4 degrees instead of the
previous 2.8 degrees. USAID will foster collaboration between Central
American and US scientists to build a high-resolution climate change
model for application in selected countries in Central America.

As a result of USAID and other donor assistance Central America's
climate observing capacity has been augmented considerably since
Hurricane Mitch. Furthermore, over the years the number of sources of
information that make seasonal climate forecasting more reliable have
multiplied. Central Americans however, are not making full use of the
information and technology already available in the web and elsewhere.
USAID will work USG agencies and the Regional Committee for Hydrological
Resources (CRRH) to increase the capacity of Central American
technicians to make full use of the technologies and information
available to increase the accuracy of short and medium-term climate
prediction.

Finally USAID will bring together policy makers to analyze the
implications of climate change as predicted by state of the art tools
and techniques and help them think through policies that will help
Central America cope with forthcoming changes.

#### 4. Coordination and administration of training events, workshops, and institutionalization of tools and practices

The range of technical activities and number of USG agencies involved in
USAID's global climate change activity for Central America will call for
a considerable amount of coordination, facilitation, and administration
within the region. Additionally, in order to maximize the impact,
decision makers will have to endorse and promote the use of
technologies, practices, and information developed and introduced by the
program to insure that they are fully institutionalized and used.
Finally, the USG agencies that will be tasked with the development of
technologies and capacity building for their application are not set-up
to organize and administer events in Central America.

*Purpose and objectives*: The purpose of the regional coordination and
facilitation component is to ensure that the technologies generated by
USG agencies are institutionalized into national and regional GCC
efforts in Central America. More specifically, coordination and
facilitation shall aim to:

1.  Optimize arrangements for USAID partners to train Central Americans
    in the use of GCC-related technologies and practices.

2.  Facilitate informed national and regional dialogue among technical
    organizations on: 1) the harmonization of approaches and methods for
    the determination of net emissions from forested areas; 2) energy
    sector emissions baseline determination at project, sectoral, and
    national levels; and 3) renewable energy policies.

3.  Promote a dialogue by decision makers on the use and
    institutionalization of the tools and practices developed or adapted
    by the GCC program;

4.  Maintain USAID and key regional and national institutions informed
    of the activities in GCC undertaken with USAID support.

Some of the activities to be undertaken to achieve these aims include:

-   Organizing training events, including the administration of travel
    and venue, identification of participants etc.

-   Facilitating, structuring and organizing workshops;

-   Organizing high-level conferences to give high visibilities to the
    products and knowledge developed under the program;

-   Reproducing translating and disseminating key reports;

*Approach* An organization with a track record in climate change in
Central America and at the same time with considerable experience in
working with USG agencies shall be responsible for the non-technical
aspects of coordination and organization of training activities and
events, and the promotion of the institutionalization of tools and
practices. This institution will most likely be a PVO with presence in
the US and Central America.

##### 5. Pre Feasibility Analysis

In designing this activity, USAID/G-CAP's Climate Change Advisor and
EGAT's Climate Change Team consulted with a number of individuals and
agencies. These included, representatives of EGAT's Energy Team, Water
Team, Biodiversity Team, Urban Programs, the Development Credit Office,
LAC regional environmental officers, and the State Department back-stop
for climate change activities in the LAC region. Ancillary meetings were
held with USDOE's Chief of Integrated Analysis in the Office of Energy
Efficiency, and the Chairman of the Host Country Committee for the World
Bank's Prototype Carbon Fund. Informal consultations were held through
e-mail with partners in Central America. Finally, CCAD's Legal
Environmental Advisor facilitated a meeting with the UNFCCC focal points
from Central America at which a concept paper reflecting the ideas
advanced herein were considered.

The climate change section of the CONCAUSA action plan, PROARCA's
strategy and the recently announced presidential initiatives on climate
change served as backdrops to the Results Framework for this activity.
The CONCAUSA Action Plan emanated from a protracted and highly
participatory process that reflects Central American and US priorities
in climate change for the region.

Nonetheless the seven countries in Central America differ in the level
of sophistication at which they address climate change and their
commitments under the UNFCCC. Hence, what is being proposed is not
equally applicable throughout the region. To the extent possible, USAID
will consult with CCAD and national government representatives to tailor
activities to match national capacities and priorities.

**6. Pre-obligation requirements**

Pre-obligation requirements were met when the resources (\$2.2 million)
for this GCC activity were obligated under the Strategic Objective
Agreement with CCAD and SICA for the implementation of PROARCA.

The Initial Environmental Examination for USAID/G-CAP's SO6 (*Improved
Environmental Management in the Mesoamerican Biological Corridor*)
issued a Categorical Exclusion to activities involving technical
assistance, education and others that will not have an impact on the
environment. This decision applies to all activities contemplated in
this GCC activity. Hence there is no need for further environmental
review, provided no activities that escape this categorization is added
at a later date. If this occurs, the Regional Environmental Officer
shall be notified and appropriate environmental review undertaken before
funds are committed for their implementation.

**7. Implementation and Management Plan**

Funds for this activity (\$2.2 million) were obligated under the SOAG
with the CCAD and SICA for the implementation of PROARCA. The
implementation and sub-obligation plan is presented in the matrix below.
Sub-obligation amounts are indicative. Whereas no significant changes in
the sub-obligation plans are anticipated, slight modifications may be
called for due to unforeseen developments.

Management and reporting responsibility will be shared between
USAID/G-CAP (PROARCA) and USAID/EGAT (Climate Change Team.) More
specifically, within PROARCA the Climate Change Advisor shall be
responsible for managing USAID/G-CAP's implementation agreements and
contracts. USAID/EGAT's Climate Change Team shall Management resources
and activities sub-obligated into USAID/W agreements.

Table 2.Implementation mechanisms and timeline for GCC Program under
PROARCA

+-------------+---------------------+--------------------+-------------+
| GCC         | Implementation      | Timeline           | Estimated   |
| Resu        | Mechanism           |                    | amount      |
| lt/activity |                     |                    |             |
+=============+=====================+====================+=============+
| Systems for | PASA (USAID/G-CAP)  | Sub-obligation:    | \$400,000   |
| reliable    | with DOE with       | 03/30/2003         |             |
| GHG         | provision for       |                    | \$441,000   |
| emissions   | sub-contracts with  | Completion:        |             |
| forecast    | national            | 09/30/2005         |             |
| for the     | laboratories        |                    |             |
| energy      | (NREL,ORNL, LBNL,   | and                |             |
| sector      | BNL)                |                    |             |
|             |                     | Sub-obligation     |             |
|             | and                 | 8/30/02            |             |
|             |                     |                    |             |
|             | Existing IAA with   | Completion         |             |
|             | LBNL^1^             | 09/30/02           |             |
+-------------+---------------------+--------------------+-------------+
| Improved    | Existing IAA with   | Sub-obligation:    | \$190,000   |
| conditions  | LBNL (same as       | 08/30/02           |             |
| for         | above)              |                    |             |
| investment  |                     | Completion:        |             |
| in clean    |                     | 09/30/04           |             |
| energy      |                     |                    |             |
| t           |                     |                    |             |
| echnologies |                     |                    |             |
+-------------+---------------------+--------------------+-------------+
| Systems for | PASA with NASA      | Sub-obligations:   | \$400,000   |
| reliable    |                     | 02/28/03           |             |
| estimates   |                     |                    |             |
| of GHG      |                     | Completion         |             |
| emissions   |                     | :09/30/05          |             |
| from        |                     |                    |             |
| land-use    |                     |                    |             |
| changes     |                     |                    |             |
+-------------+---------------------+--------------------+-------------+
| Increased   | TBD. Possibilities: | Sub-obligation:    | \$300,000   |
| Central     | PASA with NASA,     | 10/31/03           |             |
| American    | existing IAA with   |                    |             |
| capacity to | NOAA, PASA with     | Completion:        |             |
| adapt to    | USDOE               | 09/30/06           |             |
| climate     |                     |                    |             |
| change      |                     |                    |             |
+-------------+---------------------+--------------------+-------------+
| C           | Cooperative         | Sub-obligation:    | \$400,000   |
| oordination | Agreement with CSDA | 3/30/2003          |             |
| and support | (sole source)       |                    |             |
| services to |                     | Completion:        |             |
| USG         |                     | 9/30/2005          |             |
| agencies    |                     |                    |             |
| (o          |                     |                    |             |
| rganization |                     |                    |             |
| and         |                     |                    |             |
| adm         |                     |                    |             |
| inistration |                     |                    |             |
| of events), |                     |                    |             |
| instituti   |                     |                    |             |
| onalization |                     |                    |             |
| of          |                     |                    |             |
| t           |                     |                    |             |
| echnologies |                     |                    |             |
| and         |                     |                    |             |
| practices   |                     |                    |             |
+-------------+---------------------+--------------------+-------------+

1\. One transference totaling \$631,000 will be made to the IAA with
Lawrence Berkeley National Laboratory.

8.  **Performance Monitoring Plan**

At the highest level of the Results Framework for the GCC activity
presented herein, USAID/G-CAP will use the same reporting framework that
is used by the Climate Change Team to track progress in the
implementation of the Agency's Climate Change Initiative. USAID/G-CAP
has been using this framework to report its contributions to the Climate
Change Initiative for the past four years. The performance monitoring
report is submitted as an attachment to the Missions' annual report.

Additionally, USAID/G-CAP shall also report contributions to the PROARCA
results as per the program's Performance Monitoring Plan. A tentative
reporting framework is advanced below. A ore detailed performance
monitoring plan shall be developed once the implementation mechanisms
are in place.

***IR Increased Participation in the UNFCCC***

Indicator 1: Increased capacity to meet requirements of the UNFCCC

***IR2 Improved conditions for investment in clean energy
technologies***

> Indicator 1: Tools and information to assess viability of investment
> in clean energy technologies

***IR3 Systems for reliable estimates of GHG emissions from land-use
changes***

> Indicator1: GHG emissions estimates from land-use change rates
> established through the analysis of remotely sensed data.

## *IR4 Increased Central American capacity to adapt to climate change*

> Indicator 1: Adaptation policies, strategies or plans developed for
> sectors, regions or ecosystem types.