Chapter 6 | PROJECTS
— according to the Common Principles for Climate Mitiga- tion Finance Tracking — are included under “lower-carbon energy generation,” specifically the use of “waste gas” (such as biogas from agriculture) to supply energy services. Like- wise, investments in efficient energy use and renewable energy — such as solar-powered milk cooling and process- ing systems — qualify as mitigation finance under the same principles. These activities contribute to energy substitution and resource efficiency, reducing emissions from fossil fuels and firewood. C-SDTP also clearly identifies the adverse impacts of climate change on agriculture. The approval document notes that low productivity is linked to “insufficient and/or inadequate fodder and water; weak animal health; low genetic materi- al; limited technical and business management capacities by farmers; and a shrinking availability of resources due to climate change and unclear land use planning.” The project’s rationale is to enhance resilience: “The project is expected to
contribute to improvements in income, climate resilience for smallholder dairy producers and their participation in a com- petitive and safe value chain.” Moreover, the environmental explanation confirms that “adaptation and mitigation strat- egies will be integrated along the whole dairy value chain.” Concrete activities financed by the OPEC Fund that contrib- ute to adaptation include rainwater harvesting, charco dams and solar-powered boreholes for water availability; introduc- tion of drought-resilient fodder varieties, improved pasture and manure management, agroforestry and livestock insur- ance to protect farmers from climate-related shocks. As C-SDTP is fully focused on both adaptation and mitiga- tion, 100 percent of the OPEC Fund financing can be report- ed as climate finance. In the absence of more granular cost breakdowns, the US$50 million total is equally attributed: US$25 million is counted as adaptation finance and US$25 million as mitigation finance.
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