Revised Haiti Country Programme (En). 2019.pdf

Haiti Country Programme Date: 6.02.2019

Haiti’s Country Programme for the Green Climate Fund

Foreword

[to be written by Haiti’s DCC]

Table of Contents

Foreward - 2 Table of Contents - 3 List of Tables and Figures - 4 Executive Summary - 5

1. Haiti Country Profile - 6

1.1. Climate change profile - 7

1.2. Development profile - 11

1.3. Climate change response - 14

1.3.1. National frameworks - 14

1.3.2. Regional engagement - 31

1.3.3. Access to finance - 31

1.4. Gaps and opportunities - 36

2. Country agenda and GCF engagement - 39

2.1. Institutional arrangements - 39

2.2. Roles and contributions of key stakeholders - 49

2.3. Identification of country priorities for the GCF - 56

2.4. Country portfolio - 57

3. Monitoring and evaluation of climate project implementation - 79 References - 81 Appendices - 82

A. Haiti’s investment priorities mapped against Haitian ministries - 83 B. Funding instruments and co-finance in the GCF global portfolio - 84 C. Characteristics and information the ten stakeholder consultations - 85

List of Tables Table 1. Summary of NDC targets Table 2. policy measures envisaged in the NCCP Table 3. Adaptation actions identified in national climate policies by sector Table 4. Mitigation actions identified in national climate policies by sector Table 5. Relationships with planned and potential accredited entities and relevant partners Table 6. Overview of consultation processes Table 7. GCF impact areas Table 8. GCF investment framework Table 9. Project pipeline recommendations Table 10. Project pipeline descriptions Table 11. Multi-lateral projects Table 12. National projects / program schedule Table 13. National projects preparation pipeline Table 14. Portfolio of regional and national preparedness programs Table 15. Pipeline of national preparedness programs

Figures Figure 1. Current percentage of climate and climate-related projects Figure 2. Current international funding for climate and climate-related projects Figure 3. Current international donor funding for Haitian climate priority sectors Figure 4. Current number of climate and related projects vs. Haitian climate priorities Figure 5. International funding in Haiti by type of funding source

Executive Summary

The Haiti Country Programme has been developed through funding from the Green Climate Fund (GCF) for

Readiness and Preparatory Support allowing the Ministry of Environment’s Climate Change Directorate (DCC), with assistance from UNDP, to engage in a process of identifying the country’s climate priorities and developing a country programme of prioritized climate investments for GCF funding. As part of this process, existing climate investments have been mapped through research and stakeholder consultations with government agencies, development partners, NGOs, and the private sector and analyzed to identify gaps, areas of overlap and opportunities for coordination. More specifically, adaptation and mitigation investment priorities have been identified, based on existing policy documents (both climate policies/strategies, and other development policies/strategies, including sectoral strategies and disaster preparedness and response strategies), additional research, and the stakeholder consultations. This involved translating targets and goals from the NDC and other policy documents into concrete investment opportunities. In the process, several potential National Implementing Entities (NIEs) have been identified and support materials for prospective NIEs to gain accreditation have been developed.

Haiti, located in the Caribbean Basin, has a land area of 27,065 sq. km and a geography characterized principally by rugged mountain ranges, with several river valleys and relative small coastal plains. The center of the country is covered by a large high-altitude plateau. The United Nations currently supports Haiti in the achievement of its national development priorities through the United Nations Development Assistance Framework (UNDAF) 2017-2021. The Haitian government has set a strategic objective to become an emergent country by 2030 and to meet the UN Sustianable Development Goals (SDGs).1 Due to relatively low revenue streams and governmental financial constraints, Haiti is heavily dependent on external revenue, with foreign aid in the form of loans from the World Bank and the International Monetary Fund constituting more than 20% of the national budget.2 According to 2017 estimates, the services sector accounts for 50.7% of Haiti’s GDP, while the agriculture sector accounts for 22.1% and industry 20.3%.14 Major industries include textile and apparel, sugar refining, flour milling, cement, and light assembly using imported parts.14 The largest industry in Haiti is the apparel industry.

Haiti is the fourth-most vulnerable country in the world to the effects of climate change and the most vulnerable country in North and South America; additionally, it is the only country in the Americas that is part of the Least Developed Countries Group (LDC)3. It is also classified as a Small Island Developing State (SIDS), with the majority of the population living off of agriculture, with arable soils low in organic matter, and a very low rate of forest cover. The country suffers from a significant level of historic and current deforestation, with accompanying soil erosion and environmental degradation; according to a 2011 estimate, approximately

1 United Nations Mission for Justice Support in Haiti (MINUJUSTH), 2018, ‘THE GOVERNMENT OF HAITI AND THE UN REINFORCE

THEIR PARTNERSHIP DURING THE REVIEW OF THE DEVELOPMENT ASSISTANCE FRAMEWORK IN SUPPORT OF NATIONAL PRIORITIES’. Retrieved from: https://minujusth.unmissions.org/en/government-haiti-and-un-reinforce-their-partnership-during-review-development-assistance-framework

2 The Conversation, 2019, ‘In Haiti, climate aid comes with strings attached’. http://theconversation.com/in-haiti-climate-aid-comes-with-strings-attached-108652

3 International Institute for Environment and Development, 2015 ‘Q&A: Haiti aims for 31% CO2 emission reduction by 2030’.

Retrieved from: https://www.iied.org/qa-haiti-aims-for-31-co2-emission-reduction-2030

3.6% of the country is forested. Haiti is particularly vulnerable to the devastating effects of climate change, including destructive hurricanes, prolonged and pronounced droughts, littoral erosion, and rising sea levels, all of which compromise the country’s food security as well as physical, environmental, and social infrastructures. Haiti’s particular level of vulnerability to climate change is influenced by a combination of factors, including its geographic location, a high poverty rate, severe levels of deforestation and soil erosion, and weak institutional capacity.

The vulnerability of Haiti to climate change derives from many factors. A high percentage of mountainous terrain, much of which is deforested and subject to severe soil erosion, creates a high risk of landslides and flash floods during rainfall events. Environmental degradation coupled with erratic rainfall patterns, increased drought severity, damaging hurricanes, and floods means that the agriculture sector is very vulnerable to the effects of climate change in the country. With a majority of Haiti’s population reliant on agriculture to generate income and a majority of households living in poverty, the population of the country is especially vulnerable to economic and environmental shocks such as loss of crops, livestock, property, and human lives due to droughts, hurricanes, and other extreme weather events. This vulnerability is compounded by lack of access to crop insurance and agricultural credit to procure inputs. A single drought or rainfall event can destroy a season’s worth of crops for a farmer, and the precarious economic situation of many smallholder farmer households in Haiti means that replanting after a lost harvest can be extremely difficult if not impossible.

Section 1 of this Country Programme provides a synopsis of Haiti’s observed and projected climate impacts, its climate change governance structure, overview of main actors in the country’s climate change response activities, and current access to finance to address climate change. Section 2 provides an overview of Haiti’s current institutional arrangements relevant to climate activities, the roles and contributions of stakeholders from the ten administrative regions of the country, identification of country priorities for the GCF, and the current portfolio of climate projects and programs.

Proposed projects and programs in this Country Programme were identified in an inclusive multiphase analysis, consultation, and priority process. To determine which projects should be in the recommended project pipeline, potential projects were screened against multiple criteria:

1. alignment with national priorities that were articulated in Haiti’s Nationally Determined Contribution

(NDC), Haiti’s National Adaptation Plan (NAP) and Haiti’s National Climate Change Policy (NCCP);

2. identified as a major gap or urgent need in the analysis of existing climate-related investments into Haiti

3. identified as a high priority in stakeholder consultations;

4. consistency with the GCF Impact Areas;

5. contribution to the Sustainable Development Goals (SDGs); and

6. alignment with GCF Investment Framework.

The following country project portfolio reflects the identified strategically important project/ programmes and concept notes that Haiti’s NDA identified through an investment analysis and stakeholder consultation process.

Table 10. Project Pipeline Description

Project Title Mitigation/Adaption Description

Reducing deforestation and increasing reforestation, region by region

Mitigation: Sustainable land use and forest management

Adaptation: Resilient ecosystems

• Map existing forest and carbon stock using remote sensing technologies to establish a clear baseline.

•Capacity building for the National Centre for Geo-Spatial Information (CNIGS) in Haiti, which was devastated by the January 2010 earthquake (Posner, Michel, and Toussaint 2010) so that over time, Haiti can do its own forest inventories.

•Policy evaluation of existing laws and regulations of the Government of Haiti with respect to forestry, with a goal of providing recommendations for improvements. This will include a review of the National Environmental Management Plan and National Environmental Management System.

•Identification of most receptive department to serve as initial pilot department.

•Stakeholder engagement of how to design the reforestation intervention in that department.

•Design and implementation of reforestation intervention for one of Haiti’s departments (stakeholders in all regions have requested reforestation).

•Determination of eligibility for REDD+ payments after implementation in first region to employ more Haitians to plant trees and to help fund reforestation projects in the other regions.

•Measurement of performance of initial department using remote-sensing techniques.

•Scaling of project for other departments based on lessons learned from initial department.

•Annual measurement of performance in order to qualify for performance-based payments.

Waste Management Mitigation: energy efficient buildings, cities, and industries; low-carbon energy access and power (CH4 is captured and used)

• Develop a public-private partnership for a properly engineered solid waste landfill to serve Port-au-Prince with the landfill gas (LFG) captured and used for a natural gas power plant to be sited next to the landfill.

• Revenues from the power plant can then be used to pay for debt service for the initial investment and also to properly maintain the landfill.

• Alternatively, the gas could be sold to industry as a source of revenue.

The Metropolitan Service for Collecting Solid Waste (SMCRS) could partner with the local trash collection companies to serve as the public-private partnership for the landfill gas project, which would need external investment. The local Cité Soleil town could continue to collect its fees for dumping the trash.

Electricity policy reform to enable renewable energy deployment

Mitigation: Low emission energy access and power Adaptation: Livelihoods of vulnerable communities and infrastructure and the built environment

• This project would be a capacity-building, institutional reform project that would work with the Haitian government to develop and implement an electricity policy reform that would enable private companies to (1) develop renewable energy projects to sell to the grid, and (2) enable micro-grid and off-grid development.

• This capacity-building project would aim at working with the Ministry of Public Works, Transportation, and Communication, as well as ANARSE, to resolve the policy uncertainties that inhibit private sector and international investment into renewable energy in Haiti, which is clearly the least-cost and most energy-secure method to enhance electrification rates, and reduce deforestation

Climate Smart Agriculture Mitigation: Sustainable land use and forest management

Adaptation: Enhanced livelihoods of most vulnerable people, communities, regions;

Increased health and well-being and food and water security; resilient ecosystems

• The project will utilize a climate-smart agriculture approach, which seeks to achieve three goals at once: adapting to climate change, improving food security and reducing emissions from the agricultural sector through improved production efficiencies.

• Key components of the project will include interventions at 3 scales:

• Farm level scale:

-Introduction of new crop varieties and crops selected with three goals: 1) climate resilience, 2) income-generation or food security potential, 3) local appropriateness.

- Piloting of agroforestry strategies -Training of farmers on the appropriate use of new crop varieties, crops, as well as agronomic practices such as minimal tillage, appropriate fertilizer usage and organic/low chemical pesticide management

-Water management strategies such as drip irrigation

• Watershed scale:

- Watershed management strategies including reforestation of upper watersheds to protect water sources for downstream agriculture and reduce risks of flooding

- Water catchment strategies

- Terracing of hillsides to prevent erosion

- Community level agroforestry activities

• National scale:

-Strengthening of markets for agroforestry products to increase the incentives for agroforestry

-Development of stronger linkages between food security and watershed management programs/policies (i.e. explore potential for cash/food for work programs that could invest in labor for land rehabilitation)

• This project will build on the Resilient Productive Landscapes Project (RPL) being undertaken by the FAO with financing from the World Bank, the Global Environment

Facility (GEF), and the Jenkins- Penn Haitian Relief Organization (JP/HRO) but expand the project to additional regions

Coastal Zone Management Adaptation:

Addresses all categories

This project will include several components, designed to address various aspects of the challenge of coastal adaptation.

Component 1: Urban flood management

• Support for urban planning in coastal cities, with a prioritization of rapidly expanding urban cities, including mapping of flood risks (current and projected)

• Development of building codes for new development that are resilient to flooding and high winds and identification of at-risk infrastructure

• Investments in stormwater and wastewater management infrastructure

• Strengthening evacuation planning and early warning systems

Component 2: Watershed approaches

• Investments in reforestation in the upper watershed

• Support for integration of watershed approaches into land use planning and zoning strategies

• Water management strategies across the watershed gradient

Component 3: Ecosystem-based coastal protection

• Investments in mangrove planting

• Identification of at-risk existing mangroves and development of a protection plan including land use planning and involvement of the tourism sector

• Monitoring of mangrove growth and restoration

Haiti

Haiti’s Country Programme (CP) to the GCF is considered to be a ‘living document. Thus, this first version of the Country Programme is supposed to provide strategic guidance for upcoming project proposals to the GCF for the upcoming years, while being updated periodically. This will allow an adjustment of the CP to changes in new developments in economic circumstances; new information on adaptation and mitigation needs, priorities and targets; and new information on changing viability or costs of various adaptation and mitigation measures and options.

1. Country Profile

Geographical location Caribbean

Land area 27,750 sq. km

Population 11.1 million (409 people per sq. km)

Types of climate Tropical savanna (Aw), Tropical monsoon (Am), Tropical rainforest (Af), Hot semi-arid (BSh), Subtropical highland oceanic, (Cwb), Oceanic (Cfb)4

GHG emissions profile 0.2 t CO2 per capita

Key emitter sectors In 2012, it was estimated that the three key emitting sectors emitted 7.56 MtCO2e, with the agriculture sector emitting 3.90 MtCO2e, the energy sector 3.08 MtCO2e, and the waste sector 0.58 MtCO2e5

Key climate risks Floods, landslides, droughts, changes in rainfall patterns, sea level rise (related salinization processes and erosion), intensified hurricanes and tropical storms, increasing temperatures

Vulnerable sectors Agriculture and soils, water resources, forests, coastal and riverside infrastructure

NDA/FP Ministry of Environment/Mr. Moise Jean-Pierre

National/Regional AEs Caribbean Community Climate Change Centre (CCCCC), Caribbean Development Bank (CDB)

International AEs AFD, CI, FAO, GIZ, IADB, IFC, KfW, UNDP, UNEP, World Bank, WWF

Potential AEs nominated Industrial Development Fund (FDI-Haiti), Société Financière Haïtienne de Développement S.A. (SOFHIDES), Christian Aid Haiti

4 Climate-Data.org, 2019, ‘Haiti Climate’. Retrieved from: https://en.climate-data.org/north-america/haiti-41/ 5 CAIT – Country Greenhouse Gas Emissions Data, 2019, World Resources Institute (WRI), data for Haiti in 2012. Retrieved from:

https://www.wri.org/resources/data-sets/cait-country-greenhouse-gas-emissions-data

1.1 Climate change profile

Haiti is the fourth-most vulnerable country in the world to the effects of climate change and the most vulnerable country in North and South America; additionally, it is the only country in the Americas that is part of the Least Developed Countries Group (LDC)6. It is also classified as a Small Island Developing State (SIDS), with the majority of the population living off of agriculture, with arable soils low in organic matter, and a very low rate of forest cover. The country suffers from a significant level of historic and current deforestation, with accompanying soil erosion and environmental degradation; according to a 2011 estimate, approximately 3.6% of the country is forested. Haiti is particularly vulnerable to the devastating effects of climate change, including destructive hurricanes, prolonged and pronounced droughts, littoral erosion, and rising sea levels, all of which compromise the country’s food security as well as physical, environmental, and social infrastructures. Haiti’s particular level of vulnerability to climate change is influenced by a combination of factors, including its geographic location, a high poverty rate, severe levels of deforestation and soil erosion, and weak institutional capacity.

In 2018, greenhouse gas emissions in Haiti represented less than one-tenth of 1 percent of total emissions worldwide.7 Per capita emissions in 2014 were calculated at 0.2 tCO2

8. According to the principle of common but differentiated responsibilities, the Republic of Haiti has an imperative to participate in the worldwide effort to reduce greenhouse gas emissions in order to attain the target threshold of limiting global temperature rise to well below 2°C above pre-industrial levels, with a goal of 1.5°C. As enumerated within its Nationally Determined Contributions (NDC) plan, Haiti plans to reduce its greenhouse gas emissions by 31% relative to the 2030 Business as Usual (BAU) scenario. However, due to its weak institutional capacity and precarious economic state, the country requires significant investments in capacity building, financial resources, and technology transfer in order to reach this goal.

Climate Change Impacts Under a moderate emissions scenario for temperature increases, with increasing emissions followed by reduction in emissions after mid-century, mean annual temperature in Haiti is expected to increase by 0.52°C, 0.76°C, and 1.14°C for the 10th, 50th, and 90th percentiles respectively for the RCP4.5 model ensemble by the year 2030. At midcentury, these temperature increases rise to 0.78°C, 1.23°C, and 1.71°C, respectively for the 10th, 50th, and 90th percentiles. Under a high emissions scenario, using the RCP8.5 model, projected temperature increases are 0.64°C, 0.87°C, and 1.24°C respectively for the 10th, 50th, and 90th percentiles in 2030 and 1.11°C, 1.58°C, and 2.16°C for the same percentiles in 2050. Between 1960 and 2015, mean annual temperatures have already increased by 0.45°C, with warming occurring most between June and November. Additionally, the frequency of hot days and nights has increased by 63 and 48 days per year, respectively, between 1960 and 2003, with the frequency of cold nights decreasing steadily during this same period.9 A 2015 IADB climate change report on Haiti states that under GCM derived predictions, 6 International Institute for Environment and Development, 2015 ‘Q&A: Haiti aims for 31% CO2 emission reduction by 2030’.

Retrieved from: https://www.iied.org/qa-haiti-aims-for-31-co2-emission-reduction-2030 7 https://www.icos-cp.eu/GCP/2018 8 http://data.worldbank.org/country/haiti 9 USAID, 2015, ‘Climate Change Information Fact Sheet for Haiti’. Retrieved from:

https://www.climatelinks.org/file/2065/download?token=1CbtYI7r temperatures will increase 0.66-0.78°C for 2020s; 0.80-1.11°C for 2030s, 0.92-1.86°C for the 2050s and 0.87- 3.32°C for 2081-2100.10

Temperature increases when combined with changing precipitation patterns can lead to both increased frequency and severity of flooding as well as prolonged and increasingly severe droughts. Across the country of Haiti as a whole, mean annual rainfall has decreased 5 mm per decade since 1960, suggesting an overall drying effect on the climate. The North-West, Artibonite, North-East, and Central Departments are the most susceptible to increasing drought severity and frequency, due both to erratic rainfall patterns and insufficient management of existing water resources.9 According to the Global Facility for Disaster Reduction and Recovery (GFDRR), projected increases in temperature by 2050 will lead to decreases in rainfall during critical summer months in the center of the country, exacerbating drought conditions in that region. In addition to the departments listed above, the GFDRR also lists the West department, in which the capital city of Port-au-Prince is located, as being at increased risk of drought by mid-century. Under RCP4.5 model predictions, overall countrywide average rainfall should remain statistically unchanged from baseline levels by midcentury, but the RP8.5 model predicts a decrease of 43 mm in average annual rainfall countrywide during the same time period.9 An IADB report on Haitian climate change projections published in 2015 states that projected annual rainfall will be 3 to 4% lower than the baseline by the mid 2020s; the 2030s will be 6% drier, the 2050s 17% drier, and the end of the century as much as 20% drier under the highest-emission RCP8.5 scenario. Decreases in summer rainfall are projected to be the main driver behind this change.10

In terms of increased risk of floods, projected increases in rainfall variability mean that some areas will be more prone to flooding than others. Rainfall rates vary across the country’s mountainous topography, with the highest rainfall occurring on windward mountain slopes in the northern and southern regions where the country’s main mountain ranges are found, namely the Massif de la Hotte, Massif de la Selle and Massif du Nord. In mountainous regions, windward slopes can receive up to three times as much rainfall as leeward slopes. Rainfall also varies between high and low elevations, with average annual rainfall of 1,200 mm in the mountains and as low as 550 mm in low-lying coastal regions. There is a long wet season with two peaks between the months of March and November; during these times, steep mountain slopes, often devoid of tree cover and other vegetation due to severe deforestation, funnel rainwater down to river valleys and coastal areas, where the country’s main population centers are located.9

Hurricanes and Tropical Storms Haiti lies in the direct path of hurricanes in the heart of the Caribbean region, with the Grand’Anse, South, South-

East, Nippes, and West departments most vulnerable due to their location which favors a direct landfall. A report published by the Long-Term Climate Risk Index (CRI) states that Haiti lost approximately 221.92 million US$ and 3,500 lives between 1996 and 2015. In 2008, a rapid succession of several hurricanes resulted in a loss of 15% of Haiti’s GDP (PDNA 2008). More recently in 2016, Hurricane Matthew, the most devastating disaster since the 2010 earthquake, took 473 lives, left 339 injured and caused damage whose cost accounted for 32% of GDP (WB 2017, PDNA2017), plummeting the country deeper into poverty11. The

10 IADB, 2015, ‘Haiti – Historical and Future Climate Changes’. Retrieved from:

https://publications.iadb.org/publications/english/document/Haiti-Historical-and-Future-Climate-Changes.pdf 11 Green Climate Fund, 2018, ‘Haiti Readiness and Preparatory Support Proposal’.

Vulnerability, Risk Reduction, and Adaptation to Climate Change country report for Haiti, published in 2011 by the World Bank and partners, reports that for every 1°C increase in ocean surface temperatures, there will be increases in core rainfall during hurricane and tropical storm events by 6 to 17 percent, with wind speeds increasing between 1 and 8 percent.12 During hurricane season, as much as 40 mm of rainfall can fall per day in affected areas, and projections suggest that this amount stands to increase, subjecting vulnerable areas of Haiti to increased risk of river and flash flooding, storm surge, landslides, and destruction of crops and structures.9

Sea Level Rise Over the past 60 years, the mean rate of annual seal level rise in the Caribbean region, including Haiti, has been similar to the overall worldwide average of 1.8 mm per year.9 By 2030, the RP4.5 model predicts sea level rise in Haiti of 0.05 and 0.22 meters, with the RP8.5 model predicting between 0.13 to 0.4 meters. By 2050, the RP4.5 model predicts a rise of between 0.13 and 0.56 meters.9 The combined range of all scenarios reported by the IADB in its 2015 publication on climate change proctions for Haiti is a projected sea level rise of 0.18-0.59 m by 2100 relative to 1980-1999 levels.10 Low-lying coastal plains located in the South, West, Artibonite, and North departments are the most susceptible to sea level rise.

Vulnerabilities The vulnerability of Haiti to climate change derives from many factors. A high percentage of mountainous terrain, much of which is deforested and subject to severe soil erosion, creates a high risk of landslides and flash floods during rainfall events. Environmental degradation coupled with erratic rainfall patterns, increased drought severity, damaging hurricanes, and floods means that the agriculture sector is very vulnerable to the effects of climate change in the country. With a majority of Haiti’s population reliant on agriculture to generate income and a majority of households living in poverty, the population of the country is especially vulnerable to economic and environmental shocks such as loss of crops, livestock, property, and human lives due to droughts, hurricanes, and other extreme weather events. This vulnerability is compounded by lack of access to crop insurance and agricultural credit to procure inputs. A single drought or rainfall event can destroy a season’s worth of crops for a farmer, and the precarious economic situation of many smallholder farmer households in Haiti means that replanting after a lost harvest can be extremely difficult if not impossible. In areas such as the North-East, North-West, Center, and Artibonite departments, increasingly severe droughts have led to many individuals abandoning crop cultivation as an economic activity altogether, opting instead for free range raising of goats and cattle or moving to urban areas to look for work. This is partly because of insufficient management of water resources in the country – farmers in dry areas are unable to tap into existing ground and surface water resources and lack capital and equipment to irrigate their fields.

In addition to the agriculture sector, residents of coastal areas who rely on fishing to meet their household financial needs are also in a vulnerable position with regards to climate change effects. Fisheries are declining in productivity as fish populations are negatively affected by overfishing, rising ocean

12 The World Bank, 2011, ‘Vulnerability, Risk Reduction, and Adaptation to Climate Change – Haiti’. Retrieved from:

http://sdwebx.worldbank.org/climateportal/countryprofile/doc/GFDRRCountryProfiles/wb_gfdrr_climate_change_country_prof ile_for_HTI.pdf temperatures, and increased acidity of ocean water due to CO2 uptake.13 Coastal communities reliant upon fishing are also faced with other effects and drivers of climate change, including sea level rise, saltwater intrusion, destruction of mangroves, and bleaching of coral reefs.

In addition to rural agricultural and fishing communities, insufficient infrastructure and a high rate of rural-urban migration lead to increased vulnerability of urban inhabitants to the effects of climate change – especially those living in urban slums built precariously on mountain slopes above the major cities of Port-au-Prince, Cap-Haïtien and other provincial cities. Residents of urban hillside slums are vulnerable to mud and landslides that can occur during heavy rainfall events, lack of potable water exacerbated by periods of prolonged drought, and spread of communicable diseases such as cholera when there is an abundance of unsanitary water in residential areas.

Sectoral Impacts Key sectors that stand to be impacted by climate change in Haiti are water resources, soils, forests, agriculture, fisheries, urban areas, and communities located in areas at high risk of flooding, such as in ravines, in river valleys, and on steeply sloping mountain land. In terms of water management, deforestation and soil erosion compromise water quality and lead to lower available surface and groundwater across many watersheds in Haiti. The problem of solid waste disposal also ties into water resources, as plastic and other waste often clogs urban waterways in Haiti’s cities, leading to a proliferation of unclean standing water and an increase in cholera and other communicable diseases. Addressing Haiti’s waste disposal problem is a necessary step that must be taken in conjunction with reforestation, environmental rehabilitation, and sustainable water systems management in order to protect the country’s existing water resources, allow for agriculture, industry, and other water-dependent sectors to continue meeting their water needs, and protect the health of human populations.8 In terms of forests and soils, recovery from ongoing degradation related to deforestation and cultivation on steep slopes may become increasingly difficult as the effects of climate change intensify. For example, increased hurricane severity will subject degraded mountain areas to higher levels of soil erosion and create a greater risk of landslides, which will in turn render tree regrowth more difficult in these degraded areas. Increased severity and frequency of droughts will also hamper afforestation and reforestation efforts which have been identified as key climate change adaptation priorities by the Haitian government.9

GHG Emissions Profile In 2018, greenhouse gas emissions in Haiti represented less than one-tenth of 1 percent of total emissions worldwide.14 Per capita emissions in 2014 were calculated at 0.2 tCO2

15. In 2012, the agriculture sector emitted the most greenhouse gases, at 3.90 MtCO2 eq. The next biggest emitter was the energy sector at

3.08 MtCO2 eq., followed by the waste sector at 0.58 MtCO2 eq. These numbers are based on the best available data, but there is a lack of timely and accurate data on environmental and climatic issues in Haiti in general. If newer data become available, the adaptation and mitigation plans set forth in Haiti’s national climate policy documents would need to be modified to reflect these new realities.

13 Gallagher et al, 2019. ‘Analysis of International Funding for Haiti’s Climate Change Priorities’.

14 https://www.icos-cp.eu/GCP/2018 15 http://data.worldbank.org/country/haiti

1.2 Development profile

Overview and Key Indicators Haiti, located in the Caribbean Basin, has a land area of 27,065 sq. km and a geography characterized principally by rugged mountain ranges, with several river valleys and relative small coastal plains. The center of the country is covered by a large high-altitude plateau . The country occupies the western third of the island of Hispaniola, sharing a border with the neighboring Dominican Republic. Haiti has 1,771 km of coastline and a mean elevation of 470 m above sea level; the lowest point is 0 m at sea level, and the highest point is 2,680 m in the Chaine de la Selle. 80% of Haiti’s terrain is covered by mountains. Urban areas, which are home to approximately half of the country’s population, cover only 2% of the nation’s land area.16 The World Bank reports that Haiti’s Gross National Product (GDP) in 2017 was US$8.408 billion.17 The estimated Gross National Income (GNI) per capita in 2017 was $760 US, with a ranking of 170 out of 189 countries. When using the Purchasing Power Parity, Haiti’s GNI per capita in 2017 was $1,830 international dollars, with a ranking of 171 out of 187.18 Haiti’s Human Development Index (HDI) was estimated at 0.498 for the year

2016.19 The Gini coefficient for the country in 2013 was 59.2, making it 168 out of 187 countries.11 Domestic credit to the private sector in 2017 represented 17.64 of the country’s GDP, with a monetary value of $1.483 billion US. Haiti was ranked 182 out of 190 countries in the World Bank’s Ease of Doing Business ranking;

other related indicators (all out of 190) were 189th in Starting a Business, 180th in Dealing with Construction Permits, 142nd in Getting Electricity, 181st in Registering Property, 178th in Getting Credit, and 188th in Protecting Minority Investors.20

Development Prospects The United Nations currently supports Haiti in the achievement of its national development priorities through the United Nations Development Assistance Framework (UNDAF) 2017-2021. The Haitian government has set a strategic objective to become an emergent country by 2030 and to meet the UN Sustianable Development Goals (SDGs).21 Due to relatively low revenue streams and governmental financial constraints, Haiti is heavily dependent on external revenue, with foreign aid in the form of loans from the World Bank and the International Monetary Fund constituting more than 20% of the national budget.22

16 Haiti Ministry of Public Health and Population, 2017, ‘Haïti: Enquête Mortalité, Morbidité et Utilisation des Services (EMMUS-VI

2016-2017)’. Retrieved from: https://www.dhsprogram.com/pubs/pdf/FR326/FR326.pdf 17 World Bank, 2017, ‘Data: Haiti’. Retrieved from: https://data.worldbank.org/country/haiti 18 World Bank, 2017, ‘GNI Per Capita Ranking, Atlas Method And PPP Based’. Retrieved from:

https://datacatalog.worldbank.org/dataset/gni-capita-ranking-atlas-method-and-ppp-based 19 United Nations Development Programme, 2016, ‘Human Development Reports: Data’. Retrieved from:

http://hdr.undp.org/en/data 20 World Bank, 2019, ‘Doing Business: Measuring Business Regulations’. Retrieved from: http://www.doingbusiness.org/en/rankings 21 United Nations Mission for Justice Support in Haiti (MINUJUSTH), 2018, ‘THE GOVERNMENT OF HAITI AND THE UN REINFORCE

THEIR PARTNERSHIP DURING THE REVIEW OF THE DEVELOPMENT ASSISTANCE FRAMEWORK IN SUPPORT OF NATIONAL PRIORITIES’. Retrieved from: https://minujusth.unmissions.org/en/government-haiti-and-un-reinforce-their-partnership-during-review-development-assistance-framework

22 The Conversation, 2019, ‘In Haiti, climate aid comes with strings attached’. http://theconversation.com/in-haiti-climate-aid-comes-with-strings-attached-108652

In 2007, the government of Haiti drafted a National Strategy Paper on Growth and Poverty Reduction (DSNCRP) for the period of 2008-2010, which was the first overall framework for delineating the country’s development and public policy objectives. In 2010, following the devastating earthquake that hit the country on January 12th, the government published an Action Plan for the National Recovery and Development of Haiti (PARDH), focused on land, economic, social, and institutional reform. The Strategic Plan for the Development of Haiti (PSDH) was later developed as an expansion of the PARDH and a vision for making Haiti an emerging country by the year 2030.23 The country has made significant progress towards attaining several of the MDGs – for example, net enrollment rate in primary education rose from 47 percent in 1993 to 88 percent in 2011, and an equal percentage of boys and girls in education was also achieved (MDG 2).

Also, the number of underweight children under 5 years of age has fallen by half during this time period

(MDG 1).17

Key Economic Drivers and Anticipated Sectors for Growth Haiti’s economic growth rate increased modestly from 1.2% in 2016-2017 to 1.6% in 2017-2018. However, the

Haitian gourde continues to depreciate and inflation is high.24 The primary source of foreign exchange in the country is remittances, which account for over a quarter of the GDP and almost twice the value of exports and foreign direct investment combined.25 Forty percent of Haiti’s population depends on the agriculture sector. In 2016, exports from the apparel sector were valued at $850 million, representing 10% of the country’s GDP; Haiti has duty-free access to the US market through the Caribbean Basin Trade Partnership Act (CBTPA) and the 2008 Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE II), both of which were extended through 2025 by the US Trade Preferences Extension Act of 2015.13

According to 2017 estimates, the services sector accounts for 50.7% of Haiti’s GDP, while the agriculture sector accounts for 22.1% and industry 20.3%.14 Major agricultural products include coffee, mangoes, cocoa, sugaracane, rice, corn, sorghum, wood, and vetiver. The Haitian agriculture sector does not produce enough food to meet the needs of its population, and a significant quantity of food products are imported into the country. Haiti imported more than $955 million US worth of food and food products in 2015, according to the Bank of the Republic of Haiti (BRH). For example, Haiti was historically self-sufficient in rice production, which is a staple food for the majority of Haitians, but currently over 80% of rice consumed in the country is imported.26 The agriculture industry suffers from high risk of crop and livestock loss due to natural disasters such as hurricanes and earthquakes and environmental degradation including deforestation and soil erosion. Yields and productivity are remain low due to a significant lack of public and private investment in agricultural infrastructure, lack of watershed management and investment in irrigation, a dearth of agricultural insurance programs and access to credit to acquire needed technologies and inputs, and an

23 UNDP Latin America and the Caribbean, 2014, ‘2013 MDG Report Haiti a New Look’. Retrieved from:

http://www.latinamerica.undp.org/content/rblac/en/home/library/mdg/HaitiMDGReport2013.html 24 World Bank, 2018, ‘The World Bank in Haiti’. Retrieved from: https://www.worldbank.org/en/country/haiti/overview 25 US Central Intelligence Agency, 2017, ‘The World Factbook: Haiti’. Retrieved from: https://www.cia.gov/library/publications/the-world-factbook/geos/ha.html 26 US Department of Commerce, International Trade Administration, 2017, ‘Haiti – Agricultural Sector’. Retrieved from:

https://www.export.gov/article?id=Haiti-Agricultural-Sector agricultural sector characterized almost exclusively by subsistence and semi-subsistence farms cultivating small plots and using labor-intensive methods.27

Major industries include textile and apparel, sugar refining, flour milling, cement, and light assembly using imported parts.14 The largest industry in Haiti is the apparel industry. Recent growth in this industry is evidenced by the creation of the Caracol Industrial Park (CIP), a mixed light-use manufacturing facility that began operations in 2012 in the commune of Caracol, located in the North-East department. The 246-hectare park, owned by the government of Haiti, is managed by the National Society of Industrial Parks (SONAPI) under Haiti’s Ministry of Commerce and Industry. CIP was constructed with support from the Government of Haiti, the Inter-American Development Bank, the U.S. Government, and Sae-A Trading Co.

Ltd, a South Korean company. The CIP and other industrial parks throughout the country employ over 35,000 Haitians in the apparel industry.28 The industrial production growth rate is estimated at 0.9% for 2017, with Haiti ranking 161st among the countries of the world. The labor force is estimated at 4.594 million, with an abudnace of unskilled labor but a shortage of skilled labor. The unemployment rate is at 40.6%, but the CIA World Factbook also states that approximately two thirds of the labor force do not have formal employment and that unemployment is widespread.25

Tourism and travel revenues represented approximately 9.9% of Haiti’s GDP in the year 2016, and revenues are expected to grow slightly to 10.4% of GDP by the year 2027.29 Lack of tourist infrastructure including roads, accommodation, and suitable transportation options in many parts of the country hampers efforts to expand the tourism industry.

Haiti’s population has urbanized at a rapid rate between 1950 and the present. Whereas 90% of Haitians lived in the countryside in the 1950s, over half of the population lives in the country’s urban centers today.30 While urbanization is usually associated with increased economic growth, this has not been the case in Haiti so far. This is primarily due to severe problems of connectivity, as firms cannot properly access markets and many urban dwellers cannot realistically reach workplaces due to poor transportation networks and expensive public transportation networks. Many poor city dwellers often have limited to no access to basic public services such as electricity, sewage, healthcare, education, and potable water.19 These conditions lead to a high level of vulnerability among the poorest of city dwellers, many of whom reside in slums that sprawl across the hillsides and outskirts of Haiti’s major cities. Policymakers recommend that the Haitian government invest in increasing access to basic services to bridge infrastructure gaps and prepare for future growth. The government should also prioritize collection of data in order to better understand the situation of urban populations and better mitigate potential damages from climate-related and other disasters. There should also be a coordinated effort to increase the affordability and accessibility of public transport systems

27 World Bank, 2013, ‘Agriculture in Haiti: Highly Vulnerable, Mostly Uninsured’. Retrieved from:

http://www.worldbank.org/en/news/feature/2013/04/03/agriculture-in-haiti-highly-vulnerable-mostly-uninsured 28 USAID, 2018, ‘Caracol Industrial Park’. Retrieved from: https://www.usaid.gov/haiti/caracol-industrial-park 29 World Travel & Tourism Council, 2017, ‘Travel & Tourism Economic Impact 2017 – Haiti’. Retrieved from: https://www.wttc.org/-

/media/files/reports/economic-impact-research/countries-2017/haiti2017.pdf 30 World Bank, 2018, ‘Understanding the Future of Haitian Cities’. Retrieved from:

https://www.worldbank.org/en/results/2018/06/26/understanding-the-future-of-haitian-cities in conjunction with urban planning mechanisms. A final goal should be to strengthen financing mechanisms to promote sustainable urban growth.19

Type and Capacity of Financial System The banking sector in Haiti consists of three major commercial banks that collectively control 75% of the total loan portfolio, namely Unibank, Sogebank, and Banque Nationale de Crédit (BNC). Furthermore, 10% of borrowers control 70% of loans disbursed in the country, which puts Haiti in a state of systemic credit risk and limits the access to capital. As of September 2016, the gross loan portfolio for Haiti’s banking system was $1.6 billion US.31 Although the quality of loan portfolios in the banking system has improved in recent years due to modernization of the financial sector’s regulatory framework, the main challenge of the Haitian Central Bank (BRH) is to maintain a sound monetary policy in the face of higher than expected government budget deficits, high inflation and a continual devaluation of the national currency, the gourde, due to a policy of printing local currency to pay arrears.20

1.3 Climate change response

1.3.1 National frameworks

In order to enable Haiti to effectively adapt to the effects of climate change and attenuate its level of greenhouse gas productions to promote low emissions development, the Government of Haiti has developed a number of documents outlining plans for adaptation and mitigation at the national, regional, and local levels. Three main policy documents have been developed, namely Haiti’s Nationally-Determined Contribution (NDC) developed in September 2015, the revised National Action Plan for Adaptation (PANA) last updated in 2017, and Haiti’s National Climate Change Policy (NCCP) from March 2016. These documents are updated and adapted from time to time to align with new information, changing realities, and best practices in the field of climate change policy.

Climate change acts, plans, and national targets The following section provides an overview of Haiti’s national climate change action plans and policy documents.

Nationally Determined Contributions (NDC)

This document, developed in September 2015, focuses on the Haitian government’s proposed actions between

2015 and 2030 to adapt to climate change and reduce greenhouse gas emissions by 31% from the business as usual (BAU) reference scenario. The document lays out guiding principles for both adaptation and mitigation activities, with an overall emphasis on adaptation including a response to incurred losses and damages from existing climate change effects. Policy goals include increasing resilience to climate-related

31 US Department of Commerce, International Trade Administration, 2017, ‘Haiti – Banking System’. Retrieved from:

https://www.export.gov/article?id=Haiti-Banking-Systems catastrophes, responding to losses and damages incurred from extreme climate conditions, and contributing to the global effort to keep overall temperature rise well under 2°C in relation to reference levels.32

Priority challenges for adaptation identified in the NDC plan include managing integrated water systems including watersheds and other water sources, managing integrated coastal regions and the rehabilitation of infrastructure, preservation and enforcement of food security, especially through the development of bio-economy, and information, education, and sensitization campaigns (see Table 1 below). Focus areas for adaptation and the agriculture sector and food security status of the population, coastal zones, including mangrove rehabilitation and protection, sustainable management of water resources, rehabilitation of degraded lands and habitats, and health, education, and public finances.

Mitigation priorities include energy transition to reduce Haiti’s dependence on fossil fuels. The unconditional mitigation goal set by the NDC is reducing greenhouse gas emissions by 5% in regard to the reference scenario, while the conditional mitigation goal involves an additional 26% reduction in greenhouse gas emissions, predicated on reception of international assistance under the principle of common but differentiated responsibilities. Mitigation actions will be centered on energy demand, including household level use, industries, and sustainable transport and commerce, and energy supply, including energy production from forest use, production of charcoal, and electricity production. Other mitigation actions are centered on agriculture, forestry, and land use, including improving grazing practices through the use of legumes, conservation of existing national forest parks (Macaya National Park, La Visite National Park, Forêt des Pins Reserve, etc.), afforestation and reforestation of degraded areas, and agro-forestry initiatives in mountainous areas with human habitation and under cultivation or grazing. A final mitigation priority identified in the NDC plan is reduction and management of municipal solid waste.

In terms of its contribution, Haiti commits by 2030 to integrate the effects of climate change within strategic development sectors, rehabilitate 15 of the most vulnerable strategic watersheds, protect coastal zones which face dangers in regard to climate change, and develop bioeconomic and organic agriculture sectors.

In regards to the planning process, between 2016 and 2020, Haiti aims to define its national policies on climate…