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Executive Summary February 2019 Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment Prepared by the Pacific Community and the Pacific Islands Forum Secretariat

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Page 1: Federated States of Micronesia Climate Change and Disaster Risk …ccprojects.gsd.spc.int/wp-content/uploads/2019/05/... · 2019-05-07 · Federated States of Micronesia Climate Change

Executive SummaryFebruary 2019

Federated States of Micronesia Climate Change and

Disaster Risk Finance Assessment

Prepared by the Pacific Community and the Pacific Islands Forum Secretariat

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Federated States of Micronesia Climate Change and

Disaster Risk Finance Assessment

Executive SummaryFebruary 2019

Prepared by the Pacific Community and the Pacific Islands Forum Secretariat

Published by the Pacific CommunitySuva, Fiji, 2019

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Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary

© Pacific Community (SPC) and Pacific Islands Forum Secretariat (PIFS) 2019

SPC and PIFS authorise the reproduction or translation of this material forscientific, educational or research purposes, provided that the source document is properly

acknowledged. Permission to reproduce the document and/or translate in whole, in any form,whether for commercial/for profit or non-profit purposes, must be requested in writing.

Original text: English

Pacific Community Cataloguing-in-publication data

Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment: executive summary - February 2019 / prepared by the Pacific Community and the Pacific Islands Forum Secretariat

1. Risk management — Micronesia (Federated States).2. Disasters — Micronesia (Federated States).3. Environment — Micronesia (Federated States).4. Climatic changes — Micronesia (Federated States).5. Climatic changes — Management — Micronesia (Federated States).6. Climatic changes — Environmental aspects — Micronesia (Federated States).7. Environment — Management — Micronesia (Federated States).

I. Title II. Pacific Community III. Pacific Islands Forum Secretariat

577.2209966 AACR2

ISBN: 978-982-00-1160-1

Acknowledgement

The development of this Climate Change and Disaster Risk Finance Report was coordinated by the Department of Environment, Climate Change and Emergency Management (DECEM) on behalf of the Government of the Federated States of Micronesia. It was jointly drafted by the Pacific Community (SPC), the Pacific Islands Forum Secretariat (PIFS) and the USAID Climate Ready Project.

The assessment and development of this report received funding from the United States Agency for International Development (USAID).

Photos: Lisa Buggy, Stephen Boland and Patterson Shed

Prepared for publication at SPC’s Regional Office, Private Mail Bag, Suva, Fiji, 2019Printed By Quality Print Limited, Suva, Fiji, 2019

www.spc.int

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Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment - Executive Summary 1

Executive Summary

Improved access to and management of climate change and disaster risk finance is a key priority for the Government of the Federated States of Micronesia (FSM). This is critical for achieving national and individual state strategic outcomes related to disaster risk management, climate change adaptation and greenhouse gas emissions reduction in the context of resilient and sustainable development for the people of FSM. It is widely recognized that addressing climate change and weather-related disaster events is not just an environmental issue, but a key development issue for FSM.

The FSM Government has demonstrated its leadership in progressing a number of initiatives and engaging with a range of development partners and regional organizations in order to advance its national priorities. FSM is also showing leadership by encouraging greater ambition and action towards the reduction of greenhouse gas emissions, and advocating for international support for developing countries to achieve their national adaptation priorities, especially through more accessible international financing.

The FSM Climate Change and Disaster Risk Finance Assessment was guided by the Pacific Climate Change Finance Assessment Framework (PCCFAF). This framework has now been applied in nine other Pacific Island countries, and reviews FSM’s climate change and disaster risk program of FSM against seven key pillars: i) policies and plans, ii) funding sources, iii) public financial management and expenditure, iv) institutions, v) human capacity, vi) gender and social inclusion, and vii) development effectiveness. For the most part, the assessment has been focused at the national level, while

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Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary2

acknowledging that FSM presents unique circumstances within the region, given both its geographic and administrative makeup. Where possible, more specific analysis and recommendations at the state level have been included.

The assessment has identified a number of recommendations for the government, which are summarized below and discussed in detail within the report. A draft Action Plan is also included, providing timeframes and suggested responsibilities and partners for support, as assigned to each recommendation. This is intended to assist the FSM Government in the progression of these recommendations.

Policies and Planning Analysis

1. Update the National Strategic Development Plan to reflect a new context (post Compact funding in 2023) and to identify issues of national significance that are current, including cross-cutting issues such as CCDRM. Utilize the current Sustainable Development Goal (SDG) localization process to inform the basis of this plan.

2. Utilize the SDG process to identify climate change and disaster risk management (CCDRM) indicators that can enable streamlined reporting and monitoring and evaluation of national policy implementation to be undertaken.

3. Develop national mainstreaming guidelines or checklists to assist sectors / line ministries in identifying and operationalizing entry points for CCDRM.

4. Apply for Green Climate Fund (GCF) National Action Plan (NAP) readiness support to develop a more comprehensive adaptation planning process and to ensure that climate financing is being directed to this priority area.

5. Adopt a national standardized risk and vulnerability assessment framework that includes gender, social and cultural indicators, to improve consistency and comprehensiveness of identified priorities.

6. Undertake a review of the Disaster Relief Assistance Act of 1989 to ensure it provides the required and up-to-date legal obligations for disaster prevention, response, recovery and risk reduction.

7. Ensure that Joint State Action Plans (JSAPs) and the Nation Wide Integrated Policy actions are being reflected at the departmental level through their inclusion in corporate and strategic plans and with relevant budget allocations to support these actions. Furthermore, ensure JSAPs are undergoing timely review as stipulated within the individual documents so that they remain current.

Funding Source Analysis

1. Official development assistance (ODA) should host a central depository and/or database of all donor, national and state government climate change programmes and projects with the Department of Finance and Administration’s Division of Investment and International Finance providing technical support.

2. Create a more formalized process for documenting and tracking climate change projects and financing across the various agencies. Utilize the Council on Climate Change and Sustainable

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Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment - Executive Summary 3

1. Development (CC&SD Council) or the new initiative bringing all financing focal points under the oversight of the Vice President.

2. The FSM national government should recommit to Petro Corp and the FSM Development Bank’s pursuit of National Implementing Entity (NIE) accreditation and consider interim options (e.g. existing Regional Implementing Entities and Multilateral Implementing Entities) in the event of protracted delays with accreditation of the state-owned enterprises (SOEs).

3. In conjunction with undertaking the process of seeking accreditation, entities such as Vital (FSM Petrocorp) and FSM Development Bank should also consider developing a project pipeline ready for funding, in alignment with the FSM GCF Country Program.

4. FSM to reaffirm its position on “additionality” of climate finance (and not as a substitute for existing development assistance) and clearly identify its funding of priorities for climate change financial resources through:

a. enabling sectors such as education, fisheries, tourism and environment;b. strengthening governance institutions and building capacity; andc. and vulnerable sectors such as health, women, youth and children.

5. The FSM Government should work with donors to develop a medium-term fiscal strategy that is anchored on securing global climate funding and is fully consistent with the 2023 Action Plan and the Infrastructure Development Plan 2025.

Public Financial Management and Expenditure Analysis

1. Assess the adequacy and appropriateness of the FSM fund accounting structure and systems, as potential vehicles for channeling global climate change funds for CCDRM through national and state governments, and non-governmental entities.

2. The endorsed 2017 Public Financial Management (PFM) Roadmap should give added emphasis to the areas highlighted, and those particularly relevant to accessing and utilizing CCDRM funding, including:

a. budget presentation and documentation – more policy orientation to clarify the linkages of CCDRM policy to resource allocation;

b. increased accessibility of budget documentation through the Department of Finance and Administration (DoFA) website;

c. revise and update procurement regulations and its operational mechanisms to internationally accepted standards to generate more donor confidence in the procurement of goods, services and contracts using CCDRM funds;

d. strengthen internal controls to ensure efficient and accountable use of funds, including updating of financial regulations;

e. implement new financial management information system to improve data integrity and classification, and reporting standards (i.e. internally for management, in-year budget reporting for executive and Congress, and for better classification of data for policy and programming purposes).

3. Restart the PFM reform coordination mechanism to take stock of the status and progress of the PFM Roadmap deliverables. Develop and endorse a PFM reform communication strategy and a PFM reform capacity building strategy.

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Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary4

1. Develop a PFM Reform Implementation Strategy that is informed by the findings of the Public Expenditure and Financial Assessment (PEFA) and incorporating fiduciary requirement outlined by the Adaptation Fund (AF) and GCF for accreditation.

2. The FSM Government should seek support from the World Bank and the Pacific Financial Technical Assistance Centre (PFTAC) to undertake a Public Investment Management Assessment (PIMA) to complement the PEFA self-assessment so as to better assess FSM’s ability to manage the development of public infrastructure including infrastructure challenges presented by CCDRM.

3. Undertake a Specific Disaster Financing Assessment based on lessons learned from the recent experience of Typhoon Maysak and droughts, and make recommendations on appropriate funding structures to deal with disasters in a timely and appropriate manner.

4. Conscious of the existence of the Disaster Relief Fund established under the Disaster Assistance Relief Act (1989) consider the establishment of a government-controled emergency fund that:

a. maintains a minimum legislated level of resources sufficient to deal with disasters based on input from relevant technical offices;

b. is sufficiently replenished after major payouts in response to an emergency; andc. receives annual appropriation for the maintenance of the real value and any increased

vulnerability.

5. Develop and implement regulations to establish disaster-specific special funds at a declaration of emergency, specifically focused on:

a. receiving cash donations from donors, international agencies (including insurance payouts), private sector and public contributions;

b. being used specifically for disaster relief and accounted for separately; andc. requiring an independent record of disaster-related expenditures and revenues.

6. Develop simplified and harmonized disbursement procedures for state, municipal and community funds for rapid emergency response.

7. Develop and Infrastructure Development Plan that is an integral part of budget formulation, and develop a medium-term public investment plan for budgeting purposes

8. Prioritize climate change adaptation to redress current skew towards climate change mitigation.

9. Engage, coordinate and share information with government-owned commercial entities in policy development and budget formulation. Specifically, establish sector planning and coordination mechanisms with state governments, national and state-owned commercial entities and non-governmental and civil society organizations.

10. Look at the options (and support available) for replicating a similar climate finance analysis at the state government level in order to provide more clarity for each individual state.

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Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment - Executive Summary 5

Institutional Analysis

1. The important role of the CC&SD Council as a national coordinating mechanism needs to be re-emphasised and the reasons for its recent challenges in attendance and representation identified and addressed. Elevating the chair to the vice president may be one way to do this.

2. Utilize the National Joint Platform to include a standard CCDRM financing component or session to raise awareness on this topic (including national processes for GCF, AF and GEF) and to discuss and share lessons learned regarding ongoing challenges around managing large-scale, multi-sectoral projects. The platform could also be used as a mechanism to undertake a biennial review of the GCF Country Program.

3. Develop information management and dissemination tools within DECEM to improve and streamline the dissemination of FSM’s CCDRM activities and include processes to collect and showcase information from each state on the important work taking place at the local level

4. Resourcing state governments is critical, including agencies such as state Environmental Protection Agencies. This should be made a priority in post-2023 planning, as well as in discussions with development partners, with resourcing and institutional strengthening and capacity building required focuses.

5. Resourcing subnational coordination mechanisms to ensure these are active and that they connect with national-level mechanisms is a priority. Similarly, ensuring that existing structures are utilized by new projects and programs to help to sustain and strengthen these existing structures.

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Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary6

1. Look for opportunities to incorporate small grants-based schemes and capacity building mechanisms for subnational organizations, including local NGOs and CSOs in larger project proposals.

2. Determine where NGOs can be further engaged in CCDRM coordination mechanisms, including the Climate Change Country Team and on the CC&SD Council, if possible

3. Explore further opportunities for private sector engagement, utilizing the FSM Chamber of Commerce’s representation on the CC&SD Council

4. The current GCF/NDA team in DoFA holds important institutional knowledge and should be retained. Consideration should be given to whether this team is best placed in DECEM or DoFA, and where government resources can best be utilised to support this.

5. DoFA is recommended as a possible GCF NIE. If this is supported by the FSM Government, a GCF self-capacity assessment could be undertaken to identify priority areas to be addressed. Otherwise, consideration of a Climate Finance Unit within DoFA would be recommended, building on Recommendation 9.

Human Capacity Analysis

1. The Climate Change Division of DECEM needs to be adequately resourced so that the division can play an active role in identifying and coordinating local specialists within the government for project development and implementation.

2. Future CCDRM projects accessed by FSM must have an embedded component related to capacity development and the transfer of knowledge. This will ensure that external consultants provide an added value to government.

3. DECEM’s Climate Change Division needs to work closely with the state governments to share information regarding funding opportunities in a timely manner, and provide training on understanding climate finance and proposal development.

4. There is a need for a structured arrangement between the national government and donors that provides scholarship opportunities to ensure that opportunities are aligned with the skills shortage of both the national and state governments. This could build on the outcome of the review being undertaken by the Department of Education.

5. The government’s engagement with NGOs (e.g. Micronesia Conservation Trust, The Nature Conservancy, and others) should be strengthened, and their presence and experience of working with communities should be capitalized on.

6. The national government should consider including officers from the Department of Finance, Department of Research and Development, civil society and the private sector in national delegations to regional and international climate finance meetings (e.g. United Nations Framework Convention on Climate Change Conference of the Parties negotiations). Funding support for this could be sought from development partners or regional organizations.

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Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment - Executive Summary 7

Gender and Social Inclusion Analysis

1. DECEM and the National Designated Authority should establish focal points for gender and social inclusion (GSI), and resource their activities, which would include coordinating on best practices, developing guidelines for FSM departments and states, and identifying training needs.

2. DECEM should build knowledge through the inclusion of GSI in the Third National Communication to the UNFCCC

3. The Department of Health and Social Affairs should increase resourcing and expand the role of Social Affairs to lead gender mainstreaming in accordance with FSM’s national gender policy.

4. Congress should improve the gender balance in decision-making related to CCDRM, by requiring all government advisory bodies, project steering committees and SOEs to include women, and encourage a similar standard in the states.

5. Congress should introduce mandates for the divisions of infrastructure and internal affairs to better address the needs in the outer islands, including transport, and to support states in increasing the supply of resilient dwellings.

6. The FSM Government should invite Congress to introduce a consistent approach to future resourcing of local NGOs, such as recurrent budget allocations, so they can engage more consistently in CCDRM planning and activities.

7. State governments should introduce and/or strengthen the GSI focal point to include responsibility for mainstreaming

8. CCDRM offices in the states should establish GSI focal points.

9. State governments should consider funding mechanisms that will provide core funding to key local NGOs, support their access to training, pay them for their services, showcase them and scale up their best initiatives, and include them in CCDRM delegations.

10. DECEM, through GSI and CCDRM focal points, should support the development of NGO/CBO CCDRM projects, especially in the outer islands and remote locations.

Development Effectiveness Analysis

1. There will be a growing influx of new players and non-traditional partners wanting to support FSM on CCDRM initiatives. Convening a Climate Finance Forum with the FSM Government and its partners – annually or every two years – will strengthen coordination between the national government and its donors on CCDRM efforts.

2. All CCDRM support should be communicated to the Climate Change Division and DoFA to support budget planning.

3. Having a donor-to-donor coordination mechanism will be useful reducing the duplication of effort in small-sized projects to communities or state governments.

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Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary8

1. Due to FSM’s capacity limitations, partners and regional organizations that wish to engage with the national government should consider joint missions and approaches. Missions should not be approved during critical periods of budget planning.

2. The FSM Government could consider updating the priorities identified in the Overseas Development Assistance policy so as to reflect new and emerging priorities of the government, and to develop a strategy for after 2023.

3. There is a need to support dedicated capacity for monitoring and evaluating the effectiveness and impacts of aid, including CCDRM financing.

4. Establishing a more formalized mechanism between the national government and development partners to meet on a regular basis could be beneficial so as to better coordinate support and reporting, especially in the lead up to and after 2023.

Conclusion

The Government of FSM is taking a lead in accessing climate change and disaster risk financing from a diverse range of sources. It is progressing with a number of key initiatives to improve its access to and management of climate finance. As such, FSM has currently positioned itself well, given the expected increase in the volume of climate change and disaster risk finance flowing into the Pacific Islands region. That increase will be accompanied by additional complexity in reporting requirements and the need to coordinate different partners and players wishing to engage with Pacific Island countries. FSM will need to continue to be strategic and should not lose focus of its own national priorities and the aspirations of its citizens when engaging with partners and international agencies regarding climate funds.

The Action Plan table in the following pages can help guide FSM’s efforts to improve access to climate change and disaster risk financing from external sources. These recommendations build on existing initiatives and actions already underway or being planned by the FSM government, state governments, NGOs, the private sector and development partners.

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Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment - Executive Summary 9

FSM

Clim

ate

Cha

nge

and

Disa

ster

Ris

k Fi

nanc

e As

sess

men

t – A

ctio

n Pl

an

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Spec

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ativ

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Q1

Q2

Q3

Q4

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Q2

Q3

Q4

Upd

ate

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Nat

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uch

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all

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anni

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endi

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; GSI

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ende

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– H

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acity

; DE

– D

evel

opm

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ctiv

enes

s

2 D

efin

ition

s fo

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in th

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port.

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Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary10

Rec

omm

enda

tions

Rel

evan

t PC

CFA

F pi

llar1,

2Pr

iorit

y20

1920

20In

dica

tive

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uts

Lead

age

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Pote

ntia

l par

tner

s

Spec

ific

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ativ

es

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Refle

ct J

SAPs

and

the

Nat

ion

Wid

e In

tegr

ated

Pol

icy

actio

ns in

de

partm

enta

l stra

tegi

c pl

ans

with

re

leva

nt b

udge

t allo

catio

ns.

PP, F

S,

PFM

EH

igh

JSAP

and

Nat

ion

Wid

e Po

licy

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ns re

flect

ed

in d

epar

tmen

tal s

trate

gic

plan

s

DEC

EM in

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w

ith a

ll na

tiona

l go

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men

t de

partm

ents

and

st

ate

gove

rnm

ents

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Gov

ernm

ent

to d

rive,

ADB

, U

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Und

erta

ke ti

mel

y re

view

and

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ate

of J

SAPs

, as

stip

ulat

ed w

ithin

the

indi

vidu

al d

ocum

ents

, so

they

rem

ain

curre

nt.

PPM

ediu

mJS

APs

revi

ewed

an

d up

date

d as

per

st

ipul

ated

tim

efra

me

Stat

e go

vern

men

tsSP

C, S

PREP

, IO

M,

EU

Esta

blis

h ce

ntra

l dep

osito

ry/

data

base

of a

ll do

nor,

natio

nal a

nd

stat

e go

vern

men

t CC

pro

gram

s an

d pr

ojec

ts

FS, D

EH

igh

Cen

tral d

epos

itory

/da

taba

se e

stab

lishe

d an

d po

pula

ted

Offi

ce o

f ODA

, su

ppor

ted

by D

ivis

ion

of In

vest

men

t and

In

tern

atio

nal F

inan

ce,

DEC

EM, C

C&S

D C

ounc

il an

d St

ate

Gov

ernm

ents

SPC

, bila

tera

l pa

rtner

s, A

DB, E

U

Cre

ate

a fo

rmal

ized

proc

ess

for

docu

men

ting

and

track

ing

CC

pr

ojec

ts a

nd fi

nanc

ing

acro

ss a

ll na

tiona

l gov

ernm

ent a

genc

ies

FS, D

EH

igh

Form

al p

roce

ss a

dopt

ed

and

oper

atio

naliz

edC

C&S

D C

ounc

il,

supp

orte

d by

DoF

A,

ODA

, For

eign

Affa

irs

and

DEC

EM

FSM

Gov

ernm

ent

to d

rive

with

su

ppor

t fro

m A

DB,

bila

tera

l par

tner

s

Entit

ies

seek

ing

GC

F ac

cred

itatio

n to

con

side

r the

dev

elop

men

t of a

pr

ojec

t pip

elin

e re

ady

for f

undi

ng,

in a

lignm

ent w

ith th

e FS

M G

CF

Cou

ntry

Pro

gram

FS, P

PH

igh

Proj

ect p

ipel

ines

de

velo

ped

FSM

DB a

nd V

ital

(FSM

Pet

roco

rp),

supp

orte

d by

NDA

/G

CF

Offi

ce

Bila

tera

l par

tner

s,

GC

F, U

SAID

C

limat

e Re

ady

Deve

lop

a m

ediu

m-te

rm fi

scal

st

rate

gy, c

onsi

sten

t with

the

2023

Ac

tion

Plan

and

Infra

stru

ctur

e De

velo

pmen

t Pla

n of

202

5

FS, P

FME

Med

ium

Med

ium

-term

fisc

al

stra

tegy

dev

elop

ed a

nd

adop

ted

DoFA

ADB,

WB,

EU

Bi

late

ral p

artn

ers

Und

erta

ke a

sses

smen

t of F

SM fu

nd

acco

untin

g st

ruct

ure

and

syst

ems

to e

nsur

e ad

equa

cy fo

r cha

nnel

ling

glob

al c

limat

e ch

ange

fund

s

PFM

E, F

SM

ediu

mAs

sess

men

t of F

SM fu

nd

acco

untin

g st

ruct

ure

and

syst

ems

com

plet

ed a

nd

reco

mm

enda

tions

mad

e

DoFA

ADB,

PFT

AC, W

B,

EU

Prio

ritize

PFM

Roa

dmap

act

iviti

es

(see

full

deta

ils in

Cha

pter

4.

Reco

mm

enda

tions

) rel

evan

t to

acce

ssin

g an

d ut

ilisin

g C

CDR

M

fund

ing

PFM

E, F

SH

igh

CC

DRM

rela

ted

fund

ing

activ

ities

prio

ritize

d w

ithin

PFM

Roa

dmap

DoFA

FSM

Gov

ernm

ent

to d

rive

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Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment - Executive Summary 11

Rec

omm

enda

tions

Rel

evan

t PC

CFA

F pi

llar1,

2Pr

iorit

y20

1920

20In

dica

tive

outp

uts

Lead

age

ncy

Pote

ntia

l par

tner

s

Spec

ific

initi

ativ

es

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Rest

art t

he P

FM R

efor

m

Coo

rdin

atio

n m

echa

nism

to

stoc

ktak

e pr

ogre

ss o

f the

PFM

Ro

adm

ap d

eliv

erab

les

PFM

EH

igh

PFM

Ref

orm

C

oord

inat

ion

mec

hani

sm

re-e

stab

lishe

d

DoFA

ADB,

WB,

PFT

AC,

EU

Deve

lop

and

endo

rse

a PF

M re

form

co

mm

unic

atio

n st

rate

gy a

nd a

PFM

re

form

cap

acity

bui

ldin

g st

rate

gy

PFM

EM

ediu

mPF

M re

form

co

mm

unic

atio

n st

rate

gy

and

capa

city

bui

ldin

g st

rate

gy d

evel

oped

and

ad

opte

d

DoFA

ADB,

PFT

AC, W

B,

EU

Deve

lop

a PF

M R

efor

m

Impl

emen

tatio

n St

rate

gyPF

ME

Hig

hPF

M re

form

im

plem

enta

tion

stra

tegy

de

velo

ped

DoFA

ADB,

PFT

AC, W

B,

EU

Upg

rade

DoF

A w

ebsi

te to

ens

ure

timel

y pu

blic

atio

n of

bud

get

info

rmat

ion

incl

udin

g bu

dget

st

rate

gy, p

olic

ies

and

appr

opria

tions

PFM

EH

igh

Budg

et in

form

atio

n pu

blis

hed

on w

ebsi

te

in ti

mel

y an

d ac

cura

te

man

ner

DoFA

ADB,

PFT

AC, W

B,

EU

Com

plet

e a

PIM

A to

com

plem

ent t

he

PEFA

sel

f-ass

essm

ent

PFM

EM

ediu

mPI

MA

com

plet

ed w

ith

reco

mm

enda

tions

DoFA

PFTA

C, W

B

Und

erta

ke a

spe

cific

Dis

aste

r Fi

nanc

ing

Asse

ssm

ent a

nd in

clud

e re

com

men

datio

ns o

n ap

prop

riate

fu

ndin

g st

ruct

ures

to s

uppo

rt di

sast

er re

lief

PFM

E, F

S, I

Hig

hDi

sast

er F

inan

cing

As

sess

men

t com

plet

ed

with

reco

mm

enda

tions

DoFA

in p

artn

ersh

ip

with

DEC

EMW

B, E

U, S

PC

USA

ID/IO

M, A

DB

Asse

ss th

e ne

ed fo

r est

ablis

hmen

t of

a go

vern

men

t-con

trole

d Em

erge

ncy

Fund

PFM

E, F

S, I

Hig

hEm

erge

ncy

Fund

nee

ds

asse

ssm

ent c

ompl

eted

DoFA

and

DEC

EM

in c

onsu

ltatio

n w

ith

stat

e go

vern

men

ts

FSM

Gov

ernm

ent

to d

rive

Deve

lop

and

impl

emen

t reg

ulat

ions

to

est

ablis

h di

sast

er-s

peci

fic s

peci

al

fund

s at

a d

ecla

ratio

n of

em

erge

ncy

PFM

E, F

SM

ediu

mRe

gula

tions

ado

pted

DoFA

and

DEC

EM in

co

nsul

tatio

n w

ith a

ll st

ate

gove

rnm

ents

ADB,

WB,

EU

Deve

lop

sim

plifi

ed a

nd h

arm

onize

d di

sbur

sem

ent p

roce

dure

s to

sta

te,

mun

icip

al a

nd c

omm

unity

leve

l of

fund

s fo

r rap

id e

mer

genc

y re

spon

se

PFM

E, I,

PP

Med

ium

Disb

urse

men

t pr

oced

ures

dev

elop

ed

and

oper

atio

naliz

ed

DoFA

and

DEC

EM in

co

nsul

tatio

n w

ith a

ll st

ate

gove

rnm

ents

ADB,

WB,

EU

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Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary12

Rec

omm

enda

tions

Rel

evan

t PC

CFA

F pi

llar1,

2Pr

iorit

y20

1920

20In

dica

tive

outp

uts

Lead

age

ncy

Pote

ntia

l par

tner

s

Spec

ific

initi

ativ

es

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Deve

lop

a m

ediu

m-te

rm p

ublic

in

vest

men

t pla

n fo

r bud

getin

g pu

rpos

es

PFM

EH

igh

Med

ium

-term

pub

lic

inve

stm

ent p

lan

deve

lope

d an

d ad

opte

d

DoFA

ADB,

WB,

EU

, PF

TAC

Esta

blis

h se

ctor

pla

nnin

g an

d co

ordi

natio

n m

echa

nism

s w

ith s

tate

go

vern

men

ts, n

atio

nal a

nd s

tate

-ow

ned

com

mer

cial

ent

ities

and

N

GO

s/C

SOs

PFM

E, I

Med

ium

Sect

or p

lann

ing

coor

dina

tion

mec

hani

sms

esta

blis

hed

and

oper

atio

nal

DoFA

to le

ad, i

n pa

rtner

ship

with

all

natio

nal g

over

nmen

t de

partm

ents

, sta

te

gove

rnm

ents

and

no

n-st

ate

partn

ers

FSM

Gov

ernm

ent

to d

rive

Und

erta

ke c

limat

e fin

ance

ana

lyse

s at

the

stat

e go

vern

men

t lev

el, t

o pr

ovid

e cl

arity

and

dec

isio

n-m

akin

g su

ppor

t

PFM

E, F

SM

ediu

mC

limat

e fin

ance

ana

lysi

s co

mpl

eted

in fo

ur s

tate

sSt

ate

gove

rnm

ents

Bila

tera

l par

tner

s,

PIFs

, EU

, ADB

, WB,

SP

C, P

FTAC

Iden

tify

and

addr

ess

chal

leng

es

of a

ttend

ance

at C

C&S

D C

ounc

il m

eetin

gs a

nd p

ossi

bly

elev

ate

chai

r to

VP

IH

igh

Impr

oved

atte

ndan

ce a

t C

C&S

D m

eetin

gs. V

P to

ap

poin

ted

Cha

ir

DEC

EM w

ith V

PFS

M G

over

nmen

t to

driv

e

Incl

ude

a cl

imat

e fin

ance

ses

sion

as

a s

tand

ard

com

pone

nt o

f the

bi-

annu

al N

atio

nal J

oint

Pla

tform

and

ut

ilise

for G

CF

Cou

ntry

Pro

gram

re

view

I, PP

Low

Clim

ate

finan

ce s

essi

on

inco

rpor

ated

into

Joi

nt

Nat

iona

l Pla

tform

pr

ogra

m fo

r 202

0

DEC

EMFS

M to

driv

e,

with

sup

port

of

deve

lopm

ent

partn

ers

Deve

lop

info

rmat

ion

shar

ing

proc

esse

s w

ithin

DEC

EM to

ass

ist

with

col

lect

ing

and

show

casi

ng

info

rmat

ion

from

the

Stat

es o

n lo

cal

leve

l CC

DRM

wor

k

IH

igh

Info

rmat

ion

proc

esse

s es

tabl

ishe

dDE

CEM

in

partn

ersh

ip w

ith S

tate

G

over

nmen

ts

FSM

Gov

ernm

ent

to d

rive

Prio

ritis

e re

sour

cing

of S

tate

G

over

nmen

ts a

nd a

genc

ies

incl

udin

g st

ate-

base

d EP

As (e

spec

ially

with

in

post

-202

3 pl

anni

ng) a

nd s

uppo

rt in

stitu

tiona

l stre

ngth

enin

g an

d ca

paci

ty b

uild

ing

initi

ativ

es fo

r the

se

inst

itutio

ns

I, H

CH

igh

Stat

e go

vern

men

ts

effec

tivel

y re

sour

ced

and

unde

rgon

e ca

paci

ty

build

ing

Stat

e go

vern

men

tsBi

late

ral p

artn

ers,

SP

C, M

CT,

SPR

EP,

UN

DP, E

U

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Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment - Executive Summary 13

Rec

omm

enda

tions

Rel

evan

t PC

CFA

F pi

llar1,

2Pr

iorit

y20

1920

20In

dica

tive

outp

uts

Lead

age

ncy

Pote

ntia

l par

tner

s

Spec

ific

initi

ativ

es

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Util

ise

exis

ting

coor

dina

tion

mec

hani

sms

(CC

CT

and

JRM

N)

and

ensu

re th

ese

are

appr

opria

tely

re

sour

ced

I, DE

Med

ium

Exis

ting

CC

DRM

co

ordi

natio

n m

echa

nism

s su

ppor

ted

with

nec

essa

ry re

sour

ces

DEC

EMBi

late

ral p

artn

ers,

SP

C, S

PREP

, EU

, U

NDP

Build

in s

mal

l gra

nts-

base

d sc

hem

es

and

capa

city

bui

ldin

g m

echa

nism

s fo

r sub

natio

nal o

rgan

izatio

ns

into

larg

er p

roje

ct p

ropo

sals

as

a st

anda

rd c

ompo

nent

I, H

CM

ediu

mPr

ojec

t pro

posa

ls c

onta

in

smal

l gra

nts-

base

d sc

hem

es a

nd c

apac

ity

build

ing

com

pone

nt

for s

ubna

tiona

l or

gani

zatio

ns

DEC

EM, R

&DFS

M to

driv

e,

with

sup

port

of

deve

lopm

ent

partn

ers

Iden

tify

whe

re N

GO

s ca

n be

en

gage

d an

d re

pres

ente

d on

exi

stin

g C

CDR

M c

oord

inat

ion

mec

hani

sms

I, DE

Med

ium

Opp

ortu

nitie

s fo

r N

GO

eng

agem

ent i

n C

CDR

M c

oord

inat

ion

mec

hani

sms

iden

tified

DEC

EMFS

M G

over

nmen

t to

driv

e, w

ith

supp

ort f

rom

loca

l N

GO

s

Asse

ss o

ppor

tuni

ties

for f

urth

er

priv

ate

sect

or e

ngag

emen

t in

CC

DRM

, util

isin

g th

e FS

M C

ham

ber

of C

omm

erce

I, DE

Low

Opp

ortu

nitie

s fo

r priv

ate

sect

or id

entifi

edDE

CEM

in p

artn

ersh

ip

with

FSM

CoC

FSM

Gov

ernm

ent

to d

rive,

SPC

, U

NDP

, PIF

s

Iden

tify

whe

re th

e G

CF/

NDA

team

is

bes

t pla

ced

long

er te

rm a

nd

dedi

cate

gov

ernm

ent r

esou

rces

to

sus

tain

ing

this

offi

ce/fu

nctio

n (p

ossi

bly

as a

Clim

ate

Fina

nce

Uni

t w

ithin

DoF

A)

IH

igh

GC

F/N

DA o

ffice

is

supp

orte

d as

a lo

nger

te

rm g

over

nmen

t offi

ce

DoFA

in p

artn

ersh

ip

with

DEC

EMFS

M G

over

nmen

t to

driv

e, G

CF

Con

side

r DoF

A as

a p

ossi

ble

GC

F N

IE a

nd u

nder

take

a G

CF

self-

capa

city

ass

essm

ent t

o id

entif

y pr

iorit

y ga

ps

I, PF

ME

Med

ium

GC

F se

lf-ca

paci

ty

asse

ssm

ent c

ompl

eted

fo

r DoF

A

DoFA

with

sup

port

of

GC

F/N

DA O

ffice

FSM

Gov

ernm

ent

to d

rive,

GC

F

Ensu

re C

C D

ivis

ion

of D

ECEM

is

adeq

uate

ly re

sour

ced

HC

, IH

igh

Org

aniza

tiona

l cha

rt co

nfirm

ed a

nd id

entifi

ed

posi

tions

sup

porte

d by

na

tiona

l bud

get

DEC

EMFS

M G

over

nmen

t to

driv

e

Embe

d a

com

pone

nt re

late

d to

ca

paci

ty d

evel

opm

ent a

nd tr

ansf

er

of k

now

ledg

e in

all

futu

re C

CDR

M

proj

ects

acc

esse

d by

FSM

HC

Hig

hC

CDR

M p

roje

cts

unde

r de

velo

pmen

t inc

orpo

rate

ca

paci

ty d

evel

opm

ent

com

pone

nt

DEC

EMFS

M G

over

nmen

t to

driv

e, in

pa

rtner

ship

with

al

l dev

elop

men

t pa

rtner

s

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Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary14

Rec

omm

enda

tions

Rel

evan

t PC

CFA

F pi

llar1,

2Pr

iorit

y20

1920

20In

dica

tive

outp

uts

Lead

age

ncy

Pote

ntia

l par

tner

s

Spec

ific

initi

ativ

es

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

CC

Div

isio

n w

ithin

DEC

EM to

wor

k cl

osel

y w

ith s

tate

gov

ernm

ents

to

sha

re in

form

atio

n on

fund

ing

oppo

rtuni

ties

and

prov

ide

train

ing

on c

limat

e fin

ance

and

pro

posa

l de

velo

pmen

t

HC

, IH

igh

Info

rmat

ion

shar

ing

proc

ess

esta

blis

hed

and

train

ing

oppo

rtuni

ties

iden

tified

DEC

EM a

nd s

tate

go

vern

men

tsPI

FS, S

PC, b

ilate

ral

partn

ers,

EU

, UN

DP,

MC

T

Esta

blis

h m

ore

stru

ctur

ed

arra

ngem

ent b

etw

een

gove

rnm

ent

and

dono

rs to

ens

ure

scho

lars

hip

oppo

rtuni

ties

alig

n to

ski

lls s

horta

ges

in n

atio

nal a

nd s

tate

gov

ernm

ents

HC

, DE

Med

ium

Form

alize

d pr

oces

s es

tabl

ishe

d fo

r de

velo

pmen

t of d

onor

-fu

nded

sch

olar

ship

s

DEC

EM, O

ffice

of

Pers

onne

l, Fo

reig

n Aff

airs

and

Sta

te

Gov

ernm

ents

Bila

tera

l par

tner

s in

clud

ing

Japa

n,

Aust

ralia

, US

Stre

ngth

en e

ngag

emen

t with

NG

Os

and

capi

taliz

e on

pre

senc

e w

ithin

an

d ex

perie

nce

of w

orki

ng w

ith

com

mun

ities

HC

, I, G

SIH

igh

NG

O e

ngag

emen

t st

reng

then

edDE

CEM

Loca

l NG

Os,

MC

T,

TNC

, sta

te-b

ased

N

GO

s an

d C

BOs

Incl

ude

office

rs fr

om D

oFA,

R&D

, ci

vil s

ocie

ty a

nd p

rivat

e se

ctor

in

FSM

nat

iona

l del

egat

ions

to re

gion

al

and

inte

rnat

iona

l clim

ate

finan

ce

mee

tings

HC

, IM

ediu

mFS

M n

atio

nal d

eleg

atio

n in

clud

es re

pres

enta

tives

fro

m n

on-tr

aditi

onal

ag

enci

es

DEC

EMBi

late

ral p

artn

ers

Esta

blis

h fo

cal p

oint

s fo

r GSI

and

re

sour

cing

of a

ctiv

ities

GSI

, HC

, IH

igh

GSI

foca

l poi

nts

esta

blis

hed

and

reso

urci

ng d

edic

ated

to

supp

ort a

ctiv

ities

DEC

EM w

ith s

uppo

rt of

DH

SA a

nd G

CF/

NDA

team

SPC

, bila

tera

l pa

rtner

s

Incl

usio

n of

GSI

in th

e Th

ird N

atio

nal

Com

mun

icat

ion

GSI

, PP

Hig

hTh

ird N

atio

nal

Com

mun

icat

ion

deve

lope

d w

ith s

trong

G

SI c

ompo

nent

DEC

EM w

ith s

uppo

rt fro

m D

HSA

FSM

Gov

ernm

ent

to d

rive

Reso

urci

ng c

omm

itted

for S

ocia

l Aff

airs

to le

ad g

ende

r mai

nstre

amin

g in

acc

orda

nce

with

the

FSM

nat

iona

l ge

nder

pol

icy

GSI

Hig

hAd

ditio

nal r

esou

rcin

g co

mm

itted

thro

ugh

budg

et p

roce

ss

DHSA

FSM

Gov

ernm

ent

to d

rive

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Federated States of Micronesia Climate Change and Disaster Risk Finance Assessment - Executive Summary 15

Rec

omm

enda

tions

Rel

evan

t PC

CFA

F pi

llar1,

2Pr

iorit

y20

1920

20In

dica

tive

outp

uts

Lead

age

ncy

Pote

ntia

l par

tner

s

Spec

ific

initi

ativ

es

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Con

gres

s to

requ

ire a

ll go

vern

men

t ad

viso

ry b

odie

s, p

roje

ct s

teer

ing

com

mitt

ees

and

SOEs

to in

clud

e w

omen

and

enc

oura

ge a

sim

ilar

stan

dard

in s

tate

s

GSI

, IH

igh

Gui

delin

es d

evel

oped

an

d ad

opte

d fo

r in

clus

ion

of w

omen

on

all

advi

sory

bod

ies

etc

Con

gres

s w

ith th

e su

ppor

t of D

HSA

FS

M G

over

nmen

t to

driv

e

Con

gres

s to

intro

duce

man

date

s fo

r the

div

isio

ns o

f inf

rast

ruct

ure

and

inte

rnal

affa

irs to

bet

ter a

ddre

ss

need

s in

out

er is

land

s, in

clud

ing

trans

port

and

supp

ort t

he s

tate

s to

incr

ease

the

supp

ly o

f res

ilient

dw

ellin

gs

GSI

, PP

Med

ium

Man

date

s de

velo

ped

and

adop

ted

Con

gres

s w

ith

divi

sion

s of

in

frast

ruct

ure

and

inte

rnal

affa

irs

FSM

Gov

ernm

ent

to d

rive

Con

gres

s to

intro

duce

a c

onsi

sten

t ap

proa

ch to

reso

urci

ng o

f loc

al

NG

Os

such

as

recu

rrent

bud

get

allo

catio

ns e

nabl

ing

mor

e co

nsis

tent

en

gage

men

t in

CC

DRM

pla

nnin

g an

d ac

tiviti

es

GSI

, PFM

E,

IM

ediu

mG

uide

lines

for r

esou

rcin

g lo

cal N

GO

s de

velo

ped

and

adop

ted

Con

gres

s w

ith th

e su

ppor

t of D

HSA

and

DE

CEM

FSM

Gov

ernm

ent

to d

rive

Stat

es to

intro

duce

/stre

ngth

en G

SI

foca

l poi

nt w

ithin

sta

te g

over

nmen

t to

incl

ude

resp

onsi

bilit

y fo

r m

ains

tream

ing

GSI

Hig

hG

SI fo

cal p

oint

s es

tabl

ishe

d /

stre

ngth

ened

Stat

e G

over

nmen

ts

with

sup

port

from

DH

SA a

nd D

ECEM

Stat

e G

over

nmen

ts

to d

rive,

SPC

, bi

late

ral p

artn

ers

Exis

ting

CC

DRM

offi

ces

with

in s

tate

go

vern

men

ts e

stab

lish

GSI

foca

l po

ints

GSI

, IH

igh

GSI

foca

l poi

nts

esta

blis

hed

in s

tate

-ba

sed

CC

DRM

offi

ces

Stat

e go

vern

men

ts

with

sup

port

from

DH

SA a

nd D

ECEM

Stat

e G

over

nmen

ts

to d

rive

Stat

e go

vern

men

ts to

con

side

r fu

ndin

g m

echa

nism

s th

at w

ill pr

ovid

e co

re fu

ndin

g to

key

loca

l NG

Os

and

supp

ort t

heir

acce

ss to

trai

ning

, pr

ovid

e fe

e fo

r ser

vice

s, s

how

case

an

d sc

ale-

up b

est i

nitia

tives

and

in

clud

e th

em in

del

egat

ions

on

CC

DRM

GSI

Med

ium

Fund

ing

mec

hani

sms

for

loca

l NG

Os

esta

blis

hed

Stat

e go

vern

men

tsM

CT,

TN

C, S

PC,

bila

tera

l par

tner

s

DEC

EM, t

hrou

gh G

SI a

nd

CC

DRM

foca

l poi

nts

supp

ort t

he

deve

lopm

ent o

f NG

O/C

BO p

roje

cts,

es

peci

ally

in th

e ou

ter i

slan

ds a

nd

rem

ote

loca

tions

GSI

, HC

Med

ium

NG

O/C

BO p

roje

cts

deve

lope

d w

ith G

SI

com

pone

nts

DEC

EM in

par

tner

ship

w

ith D

HSA

Loca

l NG

Os

and

CBO

s, M

CT,

TN

C,

SPC

Page 19: Federated States of Micronesia Climate Change and Disaster Risk …ccprojects.gsd.spc.int/wp-content/uploads/2019/05/... · 2019-05-07 · Federated States of Micronesia Climate Change

Federated States of MicronesiaClimate Change and Disaster Risk Finance Assessment - Executive Summary16

Rec

omm

enda

tions

Rel

evan

t PC

CFA

F pi

llar1,

2Pr

iorit

y20

1920

20In

dica

tive

outp

uts

Lead

age

ncy

Pote

ntia

l par

tner

s

Spec

ific

initi

ativ

es

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Con

vene

a c

limat

e fin

ance

foru

m

betw

een

the

Gov

ernm

ent a

nd it

s pa

rtner

s an

nual

ly o

r eve

ry 2

yea

rs

– co

uld

also

be

held

in c

onju

nctio

n w

ith th

e Jo

int N

atio

nal P

latfo

rm

DE, I

Low

Clim

ate

finan

ce fo

rum

co

nven

edDE

CEM

FSM

Gov

ernm

ent

to d

rive

with

su

ppor

t fro

m

deve

lopm

ent

partn

ers

Esta

blis

h do

nor-t

o-do

nor

coor

dina

tion

mec

hani

sms

DE, I

Med

ium

Dono

r-to-

dono

r co

ordi

natio

n m

echa

nism

es

tabl

ishe

d an

d op

erat

iona

l

Fore

ign

Affai

rsDe

velo

pmen

t pa

rtner

s ba

sed

in

FSM

Esta

blis

h gu

idel

ines

for p

artn

ers

and

regi

onal

org

aniza

tions

that

en

cour

age

join

t mis

sion

s w

here

po

ssib

le a

nd s

tipul

ate

mis

sion

-free

pe

riods

dur

ing

criti

cal p

erio

ds o

f bu

dget

pla

nnin

g

DEH

igh

Gui

delin

es e

stab

lishe

d an

d di

ssem

inat

ed to

de

velo

pmen

t par

tner

s

Offi

ce o

f ODA

in

partn

ersh

ip w

ith

Fore

ign

Affai

rs

FSM

Gov

ernm

ent

to d

rive

Upd

ate

prio

ritie

s id

entifi

ed in

ODA

Po

licy

to re

flect

new

and

em

ergi

ng

prio

ritie

s of

gov

ernm

ent a

nd d

evel

op

road

map

/ st

rate

gy ta

rget

ed to

war

ds

post

-202

3

DE, P

PH

igh

ODA

pol

icy

prio

ritie

s up

date

d an

d ro

adm

ap

deve

lope

d an

d ad

opte

d

Offi

ce o

f ODA

in

partn

ersh

ip w

ith a

ll na

tiona

l gov

ernm

ent

depa

rtmen

ts a

nd

Stat

e G

over

nmen

ts

UN

DP, P

IFS,

SPC

, bi

late

ral p

artn

ers

Supp

ort d

edic

ated

cap

acity

in

rele

vant

Dep

artm

ents

, for

M&E

of

effec

tiven

ess

and

impa

cts

of a

id,

incl

udin

g C

CDR

M fi

nanc

ing

DE, H

C, F

SM

ediu

mM

&E p

ositi

ons

iden

tified

an

d es

tabl

ishe

dO

ffice

of O

DA,

DEC

EM, F

SM

Pers

onne

l Offi

ce

FSM

Gov

ernm

ent

to d

rive

Esta

blis

h a

form

alis

ed m

echa

nism

fo

r gov

ernm

ent a

nd d

evel

opm

ent

partn

ers

to m

eet o

n a

regu

lar b

asis

DEH

igh

Form

alis

ed c

oord

inat

ion

mec

hani

sm e

stab

lishe

d an

d fir

st m

eetin

g co

nduc

ted

Offi

ce o

f ODA

in

partn

ersh

ip w

ith

Fore

ign

Affai

rs

FSM

Gov

ernm

ent

to d

rive

with

su

ppor

t of b

ilate

ral

partn

ers

Page 20: Federated States of Micronesia Climate Change and Disaster Risk …ccprojects.gsd.spc.int/wp-content/uploads/2019/05/... · 2019-05-07 · Federated States of Micronesia Climate Change

Executive SummaryFebruary 2019

Federated States of Micronesia Climate Change and

Disaster Risk Finance Assessment

Prepared by the Pacific Community and the Pacific Islands Forum Secretariat