NDC Implementation Framework for Zambia 2023 - 2030

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3.2. Stakeholder Engagement ..............cccceeecee cece sentence cence ee eens ewes eeeeee eases eweweeeeeees 17 4. IMPLEMENTATION FRAMEWORK..,.....ccscccceceseseececensseseseseeseesseeeeestsceensnenensusaseeness 18 4.1. Coordination Mechanisms (Government Structure for Climate Change).............. 18

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4.3. Tracking Implementation Progress ....cccscssessececeseeseeeeneseensueseesnecseuseeesesenaseesens 21 5. AMMEX [ v...ceecessecseeeeeeecesneeneeeenesseseeenseeeeeeeeeeseneueeeeseeseee esse sseseeenesrenneuesueenesenees 23 O. AMMO Tle... cece ccccseesecenesseseeecseeeeeeneceesesseeeneseseseesenseseseeeueesaseeeeeeseneaesersurenaees 30 1|Page <!-- page 9 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 NDCY, PARTNERSHIP Zambia Nationally Determined Contribution Implementation Framework The NDC Implementation Framework Narrative summarizes the content and the context behind Zambia’s NDC implementation developed by the Government of Zambia with support from the NDC Partnership. The Narrative follows the validation of the Framework by the Government of Zambia, and before Implementing and Development Partners respond with indications of support. The following information intends to help NDC Partnership members and non-members identify opportunities to engage early in the NDC implementation process. Partners interested in supporting a Framework component are invited to reach out to the Government and the Partnership for additional information. 1. CONTEXT AND DEVELOPMENT OUTCOMES Zambia’s Eighth National Development Plan (8NDP) has identified environmental sustainability as an important strategic area. Among the outcome areas of the 8NDP are strengthened climate change adaptation, strengthened climate change mitigation and enhanced disaster risk reduction and response. The Development Plan has further acknowledged the important role the Nationally Determined Contributions (NDC) will play in achieving environmental sustainability during the period of implementation. The NDC was developed with a conditional pledge of reducing Greenhouse Gas (GHG) emissions by 25% (20,000 Gg CO2 eq.) by 2030 against a base year of 2010 under the BAU scenario with levels of international support prevailing in 2015 or by 47% (38,000 Gg CO2 eq.) with substantial international 2|Page <!-- page 10 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 support. Therefore, the Government will utilize the NDC Implementation Framework as a tool to operationalize the aspirations of the 8NDP on environmental sustainability. This will be done by implementing the 11 clustered sectors and 18 outcome areas carefully selected and prioritized to guide the implementation of adaptation and mitigation actions. The sectors of interest include Banking and Finance - Fiscal Policy, Agriculture Forest and Land Use -AFOLU Multi-sector (Climate institutional Capacity, Information, Transparency, and Environmental Issues), Forest, Energy, Buildings and Infrastructure, Waste Management, Health, Water, Industry, and Transport. The NDC Implementation Framework has identified 135 measures and 158 key performance indicators. The estimated implementation cost of the Framework is US$17.2 billion covering the 8-year period of 2023 to 2030. Renewable Energy generation, Railway and expansion of social security system are the key cost drivers of the Framework.

1.1. Outcomes and Rationale for the Zambia NDC Implementation Framework

1.1.1. Banking & Finance- Fiscal Policy Fiscal Policies Improved to Foster Low-Carbon and Resilient Sustainable Development: Zambia has adopted a two-pronged approach to financing its NDC through a business-as-usual unconditional scenario and new approach utilizing the conditional scenario. The business-as-usual approach includes domestic resources the country can mobilize and limited international support estimated at US$15 billion. The conditional scenario includes the mobilization of adequate international resources from bilateral and multilateral sources in the amount of US$35 billion for the period 2016 to 2030. To achieve this objective, the Ministry of Finance and National Planning intends to improve the fiscal regime and public finance management to foster low carbon and resilient sustainable development, enhance domestic resource mobilization, increase the efficiency of public expenditure, halt the accumulation of arrears and improve fiscal transparency. The Ministry will furthermore develop a resource mobilization strategy, create a climate change fund 3|Page <!-- page 11 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 and ensure key tools for mainstreaming climate change and budget tracking of budget allocations and expenditures are developed and deployed. During the Implementation period of this Framework, total financial resources amounting to US$17.2 billion from domestic and international sources would have been mobilized and expended towards achieving the outputs identified in the Framework. The improvement of fiscal policies to foster low carbon and resilient sustainable development alone is estimated to cost US$1.78 million by 2030.

1.1.2. Banking & Finance - Financial Sector Financial Stability and Supervisory Policy and Procedures Improved to Foster Low-Carbon and Resilient Sustainable Development: The Intergovernmental Panel on Climate Change (IPCC), in the latest Sixth Assessment report, has cited the importance of awareness raising by investors, central banks, and financial regulators for climate policy development and subsequent implementation. As a critical action point, during the implementation of the 8NDP and the NDC Implementation Framework, monetary and financial sector policies will aim to maintain price and financial system stability to promote sustainable growth. As an important financial stability and supervisory measure, the tripartite green finance working group comprising the Bank of Zambia (BOZ), the Securities Exchange Commission (SEC) and the Pensions and Insurance Authority (PIA) will target the improvement of policies and procedures to foster low-carbon and resilient sustainable development. Specific outputs include the development of green finance and green loans guidelines and the development of climate taxonomy including incentives for green bonds and associated market. The estimated budget for all the outputs is US$450,000 with a target delivery date of June 2024.

1.1.3. AFOLU- Agriculture Strengthened climate resilience of agricultural production and agriculture productivity: Agriculture is central to Zambia’s efforts to respond to climate change and economic growth. The vision of the second national agriculture policy launched 4|Page <!-- page 12 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 in 2016 is an efficient, competitive and sustainable agricultural sector, which assures food and nutrition security, increased employment opportunities and incomes. As highlighted in the 8NDP, the agriculture sector provides livelihoods to more than 70% of Zambia’s population. The Revised NDC has projected emission reduction in the agriculture sector to reach 1,232GgCO2 eq. through sustainable agricultural production practices. As such, in the NDC Implementation Framework, the Government has prioritized the strengthening of climate resilience of agricultural production and productivity through the promotion of irrigation and efficient use of water resources targeting 80,000 households! by 2026. Other measures include increasing the use of technologies for soil fertility improvement and moisture storage (including soil conservation measures) targeting 700,000 farming households while 750,000 additional farming households will increase the use of indigenous and scientific knowledge on drought tolerant crop types. Additional actions include upscaling to social cash transfer by the vulnerable farmers to 1,500,000, increased access of farming households to insurance against climate-induced risks related to agriculture and infrastructure targeting 1,100,000, accelerated implementation of food security packs, conservation and commercialization of indigenous crop varieties and implementation of gender-sensitive agriculture technologies. The estimated cost of implementing the priority activities is approximately US$2.5 billion by 2030.

1.1.4. Multi-Sector- Climate Information Enhanced Early Warning Systems with a Focus on Agriculture, Livestock and Fisheries Implemented: As the frequency and intensity of climate-related shocks in Zambia increase, there is an urgent need for the country to enhance its Early Warning Systems (EWSs)} as one way to strengthen adaptation to a changing climate. The Government of Zambia has prioritized the improvement of early warning systems in the agriculture, livestock and fisheries sector for installing critical technologies and developing the necessary systems to integrate climate change-related information into ' This is roughly 400,000 people at an average of 5 people per household. Zambia’s population is currently estimated at 19.5 million people in 2022. 5|Page <!-- page 13 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 decision-making processes. To enhance disaster risk management, the Government will strengthen disaster risk reduction measures and enhance early warning systems for timely action including promoting disaster preparedness for effective response to build back better in recovery, rehabilitation and reconstruction. Further, the Government will expand and modernize weather and climate observations infrastructure by 500 units for ground stations, 2400 rainfall stations and 5 upper air Monitoring systems. Through the Zambia Meteorological Department, the Government will increase awareness and information about climate change risks and early warning in key sectors. The total estimated budget of the actions highlighted above is US$29.7 million by 2030.

1.1.5. AFOLU-Forestry 1 Reduced vulnerability and strengthened resilience of livelihoods among forest communities: Forest lands represent the lifeline of rural economies and daily subsistence, with the sector currently contributing about 5.2% to the nation’s GDP and providing formal and informal employment to about 1.1 million people. From 2001 to 2017, Zambia lost 2.5 million hectares or about 6% of the tree cover across the country. In line with the provisions of the 8NDP and the Revised NDC 2021, the NDC Implementation Framework will focus on programmes aimed at reversing the growing threats to natural resources ranging from habitat transformation, encroachment, uncontrolled wildfires and invasive species. Key interventions include enhance community participation in natural resource management with the resulting strengthening of the committees responsible for the management of natural resources, game management areas, forests and water. Furthermore, the Government will promote the quantification and valuation of natural resources and ecosystem services and operationalization of conservation plans for critical wetlands. The forest sector is projected to contribute 28,812GgCO2 eq. in emission reductions by 2030. The actions outlined above are estimated to cost an estimated US$301.5 million by 2030. 6|Page <!-- page 14 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030

1.1.6. AFOLU-Forestry 2 Increased Gender Equity and Inclusiveness for Women and Men in Community Forest Management Groups (CFMG): Deforestation is estimated at 172,000 hectares per annum in 2021, placing Zambia among the top 10 countries in Africa with the highest deforestation rates in the world. The National Gender Policy indicates that women have shown to be influential leaders within their communities in addressing deforestation trends. Furthermore, where women help devise early warning systems and reconstruction efforts, communities fare largely better in climate-related natural disasters. Areas of intervention identified in the NDC Implementation Framework include enhancement of rural forest communities and women’s livelihood opportunities in non-wood forest products (NWFP), scaling up forest conservation initiatives, development of a policy paper on gender, climate change and forests, women and men participating in the development of local climate change adaptation plans for the forestry sector and increased participation of women in community forest management. With the implementation of various actions in community forest management, it is expected that the deforestation rate will reduce to 120,000 hectares per annum by 2026 from 172,000 hectares of deforestation rate per annum in 2021. The interventions proposed are estimated to cost US$324,114 by 2030.

1.1.7. Energy Increased Share of Renewable Energies in the National GRID and Increased Energy Efficiency Upscaled: The IPCC Sixth Assessment report has noted that the low adoption of low carbon technologies in most developing countries particularly least developed countries is due in part to weaker enabling conditions including limited finance, technology development and transfer and capacity. As a proactive measure, the 8NDP has prioritized enhancement of generation, transmission and distribution of electricity during the plan period 2022 to 2026. Increased investment in the sector will result in an increase in electricity generation capacity to 4,457 megawatts (MW) by 2026 from 3,307.43 MW in 2021. The percentage of renewable energy in the national installed electricity capacity, excluding large hydroelectricity 7|Page <!-- page 15 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 generation, is expected to increase to 10 percent from 3 percent over the same period. This will, in part, be supported by fifteen renewable energy off-grid projects that will be developed by 2026, in addition to the seven developed in 2021. The NDC Implementation Framework has projected that by December 2030, Government will increase solar energy contribution to the national installed electricity generation capacity by 720MW, add low carbon-based hydro-electricity supplied into the grid by 1400MW while 300MW of wind electricity will be supplied into the grid in addition to generation of geothermal electricity equivalent to 17.7MW. Other renewable solutions include biomass-based electricity amounting to 1OOMW generated and supplied into the grid, increased generation in renewable energy for off-grid supply of 200MW, production of 100,000 improved cook-stoves and 3,500,000 Incandescent bulbs replaced with LED/CFL across the country. The estimated cost of investments in the outcome areas is US$6 billion by 2030. An estimated 8,370.77GgC02 eq. in emission reductions from renewable energy sources is anticipated by 2030.

1.1.8. Building & Infrastructure Enhanced Adaptive Capacity and Strengthened Resilience of Infrastructure to Climate Shocks: The Sixth Assessment Report by the Intergovernmental Panel on Climate Change (IPCC) has concluded that if existing buildings, and buildings yet to be built are retrofitted, the sector is projected to approach net-zero GHG emissions in 2050. The achievement of this aspiration entails implementing policy packages, which combine ambitious, sufficiency, efficiency, and renewable energy measures effectively implemented and barriers to de-carbonization removed. The NDC implementation Framework will aim to strengthen systems and tools for climate resilience and low- carbon investments in the infrastructure sector. The tools to be deployed by the Government include the revised national construction codes and standards and climate sensitive land use planning guidelines spearheaded by the Ministry of Infrastructure and Housing and Urban Development. Other measures include the demonstration of climate resilience housing in urban and rural areas. The estimated cost of this undertaking is US$831.6 million by 2030. 8|Page <!-- page 16 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 L.1.9. Waste Enhanced Solid Waste Management and Resource Recovery: The Government of Zambia has identified improvement of sanitation services across the country by strengthening sewerage and solid waste management systems. This will be achieved through enhancing financing to address the constraint of inadequate solid waste management infrastructure. In addition, the Government will promote sustainable sanitation practices, including personal hygiene promotion and solid waste disposal among others. With these interventions, the proportion of households with access to improved sanitation is expected to improve from 37.2% and 77.7% in 2018 to 55% and 90% in 2026 in rural and urban areas, respectively. Specific programmes include infrastructure development and maintenance, solid waste management through biogas digesters, sanitation and hygiene and investment promotion in waste to energy projects. The Zambia NDC Implementation Framework will facilitate the development of guidelines on waste disposal, raise awareness and build in low-carbon infrastructure such as anaerobic biogas digester systems for enhancing waste management and attainment of low-carbon investments in the sector. The activities listed above will cost an estimated US$379.3 million by 2030.

1.1.10. Water Water security of all Zambians is promoted and protected, via gender-responsive and climate-smart water infrastructure: In the 8NDP, the Government has prioritized the provision of clean and safe water across the country, especially in districts, constituencies and wards where there have been water deficiencies also considering the challenges women face in accessing water. Key measures to be implemented will include the development and maintenance of water supply infrastructure, water quality monitoring and protection of aquifers and other water sources. A key indicator of the role of men and women will include the number of beneficiaries trained on the use of climate-resilient water technologies disaggregated by gender. The implementation of these measures is expected to lead to an increase in access to clean and safe water to 67 percent by 2026 from 58% in 2018 for rural 9|Page <!-- page 17 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 areas and to 98% by 2026 from 91.8% in 2018 for urban areas. Under the water sector outcome, the NDC Implementation Framework will deploy climate-proofing measures to achieve the desired adaptive outcomes during the implementation period. The Government will undertake investments in 38 small dams to increase climate-resilient water sources infrastructure by December 2026. An estimated 41 groundwater aquifer resources will be mapped and protected, 1650 exploratory boreholes drilled and 41 well fields identified. These measures are expected to cost an estimated US$464.2 million by 2030.

1.1.11. AFOLU-Livestock Farmers able to cope with Climate change through the Adoption of Improved Practices that Enhance Livelihoods, Sustainable Systems for Improved Smallholder Livestock Production and Productivity Operational: The Livestock sector, viewed as an important component of the government’s plan to increase agriculture production and productivity, will aim at strengthening farmers' abilities to cope with climate change impacts through adoption of improved practices that enhance livelihoods. Alongside the agriculture component, this outcome is expected to contribute to an agricultural growth rate of at least 10% per annum over the 8NDP period including to agricultural exports expected to increase to above US$2 billion by 2026 from US$756.2 million in 2021. During the NDC Implementation Framework period, the Government will empower 10,000 farmers with capacities to utilize breeds that are resilient to climate change. Investments in water harvesting systems for livestock management across the country at community level. Furthermore, a countrywide Indexed Based Livestock Insurance (IBLI) and a Livestock early Warning Information Systems targeting livestock farmers will be deployed and made operational. Other output areas will include restoration of graded pastures and vegetation cover with different drought tolerant perennial seeds targeting 45,100 hectares. A sustainable forage seed production programme with private sector participation also targeting 900,000 additional farmers will be developed. Diversification of livelihoods and sources of incomes through skin and hides for over 10|Page <!-- page 18 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 26,000 livestock farmers is another key target area of action. This is in addition to the development of technical and business capacities for construction of 5,000 biogas plants for 19,900 livestock farmers. The estimated cost of undertaking the proposed interventions above is US$50.3 million by 2030.

1.1.12. Industry Sustainable Industrial Products and Product Use: The promotion of low carbon technologies and in particular the use of low carbon and energy efficient intensity sources responds to government commitments under the Paris Agreement and the attainment of aspirations contained in the 8NDP on achieving environmental sustainability. As part of Zambia’s contribution to reducing emissions under the Kigali Amendments, which sets out an Hydrofluorocarbons (HFC) phasedown that reduces consumption by 85% in CO2 tons equivalent (with some variations}, the government has identified reduction of clinker content in cement production and reduction in the use of fluorinated greenhouse gas substances. The sector aims at reducing the clinker content in cement production by 20% and the fluorinated gas by 80% by 2030. These measures will cost an estimated US$32.4 million. Furthermore, an estimated 7,196GgCO2 emission reductions will be achieved by 2030.

1.1.13. Transport Sustainable Transportation Infrastructure: The Government has targeted modernizing the transport infrastructure and in particular taking deliberate steps to ensure that at least 30% of bulk cargo is moved off the roads to the railway line through improvements and modernization of the rail infrastructure. The ambition requires using already proved energy efficient systems such as tramway systems in highly populated cities such as Lusaka, Kitwe and Ndola among cities with high population density. Additionally, the deployment of electrified modern railway systems will support the attainment of both the economic and low carbon development goals contained in the Revised NDC and the 8NDP. The NDC Implementation Framework has responded to the aspirations of the 8NDP through n|Page <!-- page 19 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 outputs targeting the construction of 50km of the Lusaka Tramway System and the rehabilitation of a total of 2132km railway transport infrastructure. This will include electrification of 30% of total railway systems in the country. The measures outlined above will cost an estimated US$6.5 billion by 2030. The transport is project to contribute 1,973GgCO2 eq. towards emission reductions by 2030.

1.1.14. Multi-Sector-Institutional Capacity, Transparency & Environmental Issues Strengthened Institutional Capacity for Coordination Climate Change Projects and Programmes in Zambia, Enhanced Transparency for Efficient GHG Accounting and Climate Reporting in place and Enhanced Environmental Sustainability: The Government has strengthened the coordination of climate change projects and programmes through the creation of the Ministry of Green Economy and Environment. The new Ministry was established through a consolidation of departments dealing with environment, climate change, meteorological and biosafety. Among many functions, the Ministry is mandated to develop policies on climate change and to coordinate the implementation of projects and programmes on climate change across the country. Key to the delivery of actions contained in the NDC Implementation Framework is the strengthening of institutional capacities for coordinating climate change projects and programmes through the revision of the National Policy on Climate Change, enactment of the climate change bill, development of the National Green Growth Strategy, NDC Communication Strategy and the NDC Investment Strategy and Financial Plan. The Ministry will further strengthen the capacity of District level staff to conduct climate risk screening at District and constituency levels. Other key multi-sectoral measures include producing biennial transparency reports and the 4'" National Communication report for submission to the United Nations Framework Convention on Climate Change (UNFCCC). The Government will also operationalize an MRV Portal for reporting actions on adaptation and mitigation arising from implementing activities contained in the NDC Implementation Framework and the National Adaptation Plan. The 12|Page <!-- page 20 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 estimated implementation cost of this multi-sectoral section is US$39.6 million by 2030.

1.1.15. Health Increased resilience of the health sector to climate change: The Government of Zambia has, in the 8NDP, placed emphasis on strengthening public health, increasing access to quality health care through health infrastructure development, provision of health insurance, enhanced food security and nutrition and strengthening integrated health information system. The NDC Implementation Framework has identified measures on climate change to support the implementation of the 8NDP. These include strengthening policies and institutional capacities to manage climate change risks in the health sector, the development of the Environmental Health policy that clearly defines the strategies that include climate change for the Ministry of Health, and the development of surveillance tools for early warning against climate variability and extreme weather events with a focus on the health sector. The Government will also ensure that climate change is mainstreamed across programmes to enhance resilience of the health sector. The estimate cost for interventions towards the achievement of key performance indicators is US$128.7 million by 2030. 2. CLIMATE AND SUSTAINABLE DEVELOPMENT LINKAGES

2.1. Alignment with National and Sectoral Development Policies, Plans and Budgets The NDC Implementation Framework is being complemented by various national and sectoral policies that also aim to achieve climate resilient and low carbon objectives. The Framework will substantially contribute to the success of the Vision 2030, the 8NDP, the Revised and Updated NDC and the National Policy on Climate Change when priority adaptation and mitigation projects are effectively implemented. Through the resource mobilization efforts that will anchor the delivery of priority actions contained in the Framework, budget execution will also be strengthened during the implementation period. The table below provides a comprehensive list of policies, laws 132|Page <!-- page 21 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 and strategies and describes the areas of alignment with the NDC Implementation Framework. Table 1: Sectoral Development Policies, Plans and Strategies Name Year Description Nationally Determined 2021 Zambia’s revised and updated NDC sets the Contribution (NDC) climate targets for both mitigation and adaptation Third National § —~| 2020 ':«- Highlights the country’s anthropogenic Communication (NC) Greenhouse Gas (GHG) emission sources and sinks for the years 2005 and 2010, emission drivers, and measures to abate GHG emissions. National Policy on 2019 Promotes private sector involvement in Transport (NPT) infrastructure development and service provision under a regulated environment. National Energy Policy | 2019 Seeks to achieve optimal energy resource (NEP} utilization to meet Zambia’s domestic and non-domestic needs at the lowest total economic, financial, social, environmental, and opportunity cost to establish Zambia as a net exporter of energy. Energy Regulation Act No. 2019 Establishes the Energy Regulation Board, as 12 of 2019 a body corporate, whose primary role is to license entities that intend to produce energy. | Electricity Act No. 1lof | 2019 Provides for the regulation of the generation, 2019 transmission, distribution, and supply of electricity. 14|Page <!-- page 22 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Name Year 8th National Development 2022 Plan (8NDP) Climate Change Gender $2017 Action Plan (CCGAP} Second National 2016 Agriculture Policy 2016 (SNAP) National Policy on | 2016 Climate Change (NPCC) The National Forestry 2015 Policy (NFP) Forest Act. No.4 0f 2015 2015 Second National 2015 Biodiversity Strategy and Action Plan (NBSAP) Description Promotes socioeconomic transformation for improved livelihoods through Economic Transformation and Job Creation, Human and Social Development, Environmental Sustainability, and Good Governance Environment. Ensures gender consideration in the implementation of climate change mitigation and adaptation programs and projects. Provides a framework to promote sustainable agricultural diversification, agricultural commercialization, private sector participation, and inclusive agricultural growth. Provides for a low-carbon and climate- resilient development pathway. Provides an environmental policy framework, monitor, evaluate and co-ordinate its implementation, to ensure the protection of the environment and sustainable development, management, and utilization of natural resources for the benefit of the present and future generations. Provides for forest protection and conservation including guidelines for carbon trade. Provides for biodiversity conservation focus points and incorporates climate change 58|Page <!-- page 23 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Name Year Description resilience principles in biodiversity conservation. ‘National Strategy for | 2015 Provides a framework to address drivers of Reducing Emissions from | forest loss to reduce emissions from Deforestation and Forest deforestation and forest degradation. Degradation (REDD) Nationally Appropriate 2014 Outlines concrete programs and projects in Mitigation Actions (NAMA) the Energy, Agriculture, Transport, Forestry, and Waste Management sectors that will assist the country to transition into a low- carbon development trajectory.

2.2. Green Recovery The Zambian economy experienced a decline by 2.8% in 2020, with most sectors recording negative growth mainly because of the COVID-19 Pandemic. The exceptions were the agriculture, health, and information and communications technology sectors which registered positive growth. Growth in 2021 was rebounded to positive levels at 3.3%, driven by a recovery and subsequent expected good performance in mining, wholesale and trade, and electricity generation. The Government employed various measures to respond to the effects of the COVID-19 pandemic on livelihoods and the economy. These measures included allocations of an estimated US3.2 million to the Epidemic Preparedness Fund and US$36.6 million equivalent to the COVID-19 Contingency and Response Plan. The Government further established a US$6 million three to five years Targeted Medium-Term Refinancing Facility (TMTRF) to eligible financial service providers for on-lending to priority sectors at attractive rates. To alleviate economic pressure associated with the COVID-19 and reduce liquidity challenges, the Government issued the US$450 million COVID-19 Mitigation Bond for economic stimulus packages aimed at dismantling arrears, VAT refunds and outstanding arrears owed to retirees. Some of the resources from the bond were %6|Page <!-- page 24 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 earmarked for grain purchases for National Food Reserves and for the Constituency Development Fund as a way of ensuring that community projects were implemented. The Government was further able to respond to the call by the Green Climate Fund (GCF) COVID-19 Readiness and Recovery Support to enhance the recovery of climate impacted communities also facing the effects of the COVID-19 pandemic. 3. SUMMARY OF PROCESS

3.1. Key Consultations The compilation of the NDC Implementation Framework commenced in early 2020 and was preceded by a scoping mission conducted by the NDC Partnership Support Unit on 29 September to 4 October 2019, Stakeholder engagements in the subsequent months were hindered by the outbreak of the COVID-19 Pandemic which also slowed the progression in the collection of information between March 2020 and December 2022. Lockdown measures imposed to reduce the spread of the disease also constrained in-person meetings thereby limiting access to information required to update the Implementation Framework. Following the removal of COVID-19 restrictions, five stakeholder workshops were held in Kabwe and Lusaka leading to the production of the draft NDC Implementation Framework at the end of December 2022. The Government conducted additional stakeholder consultations to refine the key performance indicators and the cost estimates between January and April 2023. During the whole period, the Government relied on technical assistance provided by the NDC Partnership through an individual consultant, a firm and the NDC In- Country Facilitator. Cooperating Partners based in Zambia also provided information through a project matrix administered by Government to collection information on support provided during the period of the country’s NDC.

3.2. Stakeholder Engagement Zambia joined the NDC Partnership in 2016 with the aim of accelerating the implementation of mitigation and adaptation actions aspired for in the country’s National Development Plans and strategies. Three Focal Point Institutions - Ministry 17|Page <!-- page 25 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 of Lands and Natural Resources, Ministry of Finance and Ministry of National Development Planning - were nominated. Following the merging of the Ministry of Finance and the Ministry of National Development Planning and the creation of the Ministry of Green Economy and Environment, two focal point Ministries were assigned to the NDC Partnership. These include the Ministry of Green Economy and the Ministry of Finance and National Planning. Several consultations were undertaken with representatives from key sectors such as Ministries of Agriculture, Fisheries and Livestock, Finance, Bank of Zambia, Pensions and Insurance Authority, Securities Exchange Commission, Zambia Meteorological Department, Zambia Environmental Management Agency, Ministry of Health, Ministry of Green Economy and Environment-Forest Department and Green Economy and Climate Change Department, Ministry of Energy, Ministry of Water Development and Sanitation, Office of the President-Gender Division, Ministry of Local Government and Housing and Ministry of Commerce, Trade and Industry. Private Sector Institutions such as the Indaba for Agriculture Policy Research Institute (IAPRI) and the Zambia Chamber of Commerce and Industry also participated. Other key stakeholder included Non-Governmental Organizations and the Cooperating Partners who also provide inputs into the development of the Framework. 4. IMPLEMENTATION FRAMEWORK

4.1. Coordination Mechanisms (Government Structure for Climate Change) The NDC Implementation Framework will be coordinated in line with the provisions of the National Policy on Climate Change 2016. The Policy mandates the Council of Ministers as the supreme decision-making body for overseeing climate change interventions. The Chairperson of the Council is the Vice President, while the Secretariat is the newly created Ministry of Green Economy and Environment which is responsible for coordinating the implementation of climate change projects and programmes across the country. The Ministry of Green Economy and Environment 18|Page <!-- page 26 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 also chairs the Steering Committee of Permanent Secretaries. The Steering Committee is the principal advisory body to the Council of Ministers on policy and programme coordination and implementation. The Secretariat to the Steering Committee is currently the Green Economy and Climate Change Department. The Technical Committee on Climate Change, chaired by the Director of Green Economy and Climate Change, also provides technical advisory services to the Steering Committee of Permanent Secretaries chaired by the Permanent Secretary - Ministry of Green Economy and Environment. At technical committee level representatives of government ministries, civil society organizations and private sector participate in technical discussions and provide inputs into recommendations for consideration by Permanent Secretaries and subsequently the Committee of Ministers. The implementation of initiatives contained in the NDC Implementation Framework will be subject to the governance arrangements described above. 4,2. Financing and Resource Mobilization The NDC Implementation Framework is estimated to cost the country US$17.2 billion covering 11 clustered sectors, 18 outcome areas 135 measures and 158 key performance indicators (KPIs) between 2023 and 2030. While Government has devised mechanisms for financing of the 8NDP which will be done through traditional and non-traditional sources of finance, the NDC Investment Strategy and Financial Plan propose ways to ensure effective resource mobilization. These approaches include (i) increased awareness, knowledge and capacities to accelerate the mobilization of funding sources and mechanisms and (ii) the NDC achieving high- level political recognition and alignment from international cooperation and private sector engagement to fulfil its mandate and {iii) achieving a diversified national portfolio of financial sources and mechanisms to meet the targets set to bridge the NDC Financial gap by 2030, Traditional sources identified include domestic revenue, grants, donations and concessional loans that will also form the primary source of financing adaptation and mitigation projects. Non-traditional sources of finance will include alternative sources that will have low or no interest payments or guarantee 9|Page <!-- page 27 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 commitments from the Government, such as public-private partnerships (PPPs) and impact capital. As observed in the 8NDP, some programmes and projects in the Plan will not be financed from the national budget but from resources coming through private sector and other cooperating and development partners. The table provides a breakdown of financing needs per sector, the number of measures identified in the framework, the number of key performance indicators and the implementation cost estimates. The table below highlights sectors, number if measures and key performance indicators in the framework the cost estimates of actions in each sector. Table 2: Sectors, Measures, Key Performance Indicators and Implementation Costs # of Measures Implementation Cost Sector # of KPIs in the (US$) Framework Banking & Finance 16 22 2,227,868 Agriculture & Livestock 18 19 2,503,333,089 Multi-sector 34 40 39,617,986 Forestry 16 16 301,849,061 Energy 16 17 5,985,964,860 Buildings & 10 10 Infrastructure 831,604,013 Waste 9 11 379,284,421 Health + 5 128,744,093 20|Page <!-- page 28 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Water 6 12 464,181,973 Industry 2 2 32,385,539 Transport + 4 6,524,896,777 Total 135 158 17,194,089,680

4.3. Tracking Implementation Progress Tracking the progress of NDC implementation will employ a three-prong approach to reporting which include: {i) the NDC Online Partnership Plan tool (ii) the Measuring, Verification and Reporting web-based system and (iii) NDC Country Engagement quarterly reports. A climate-related MRV system has been developed by the Zambia Environmental Agency through a consultative process and integrated into a web- based system to enhance transparency in reporting and access to information by the general public, Furthermore, the Ministry of Green Economy and Environment will work closely with the Ministry of Finance and National Planning to operationalize the budgeting tracking tool to further improve the country's tracking of resources allocated and expended towards climate actions identified in the NDC Implementation Framework. 21|Page <!-- page 29 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030

Annex I: Linkages with 8** National Development Plan and Sustainable Development Goals Implementation Framework 8th National Development Plan SDG Outcomes Development Development Outcome | Outcome Outcome Description Areas Areas Fiscal Policies Improved to | 5.6, 7.4, 7.5 Competitive Private | 7, 13, 17 Foster Low-carbon and Sector Resilient sustainable Enhanced mitigation Development and Adaptation to climate change Sustainable & Natural Resources Management Financial Stability and 5.6, 7.4, 7.5 Competitive Private | 7 , 13, 17 Supervisory Policy and Sctor Procedures Improved to Enhanced Mitigation Foster Low-carbon and and Adaptation to Resilient Sustainable Climate Change Development Sustainable & Natural Resources Management Strengthened Climate 5.4, 5.5, 6.4, An Industrialised and 1, 2, 3, Resilience of Agricultural 6.5. 6.6, 7.4, Diversified Economy 10, 12, Production and Productivity | 7.5 Enhanced Citizenry 13 Participation in the Economy Improved Health, Food and Nutrition 23|Page <!-- page 30 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Improved Water Supply and Sanitation Reduced Poverty, Vulnerability and Inequality Environmental Sustainability Enhanced Early Warning 7.4, 7.5, 8.4 Reduced Poverty, 13, 14, Systems with a focus on Vulnerability and 15 Agriculture, Livestock and Inequality Fisheries Implemented Environmental Sustainability Improved Policy and Governance Environment Reduced Vulnerability 6.7, 7.4, 7.5 Enhancing human 1,2, 13 and Strengthened development Resilience of Environmental Livelihoods among Sustainability Forest Communities Sustainable environment & Natural Resources Management Increased Gender Equity and | 5.5, 6.4, 6.7, Enhance citizens | 5, 13, 17 Inclusiveness for both 7.4, 7.5 participation in the women and men in Community Forest Management Groups (CFMG} economy Human and Social Development 24|Page <!-- page 31 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Reduced poverty, vulnerability and Inequality Environmental Sustainability Sustainable Environment & Natural Resources Management Gender Responsive Increased share of Renewable Energies in the National GRID and Increased Energy Efficiency Upscaled 5.4, 5.5, 6.4, 6.7, 7.4, 7.5 An Industrialised and Diversified Economy A competitive private sector Human and Social Development Reduced poverty, vulnerability and Inequality Enhanced Mitigation and Adaptation Sustainable Environment & Natural Resources Management 5, 7,10, 13 Enhanced Adaptive Capacity and Strengthened Resilience of Infrastructure to Climate Shocks 3.4, 7.4, 7.5 An Industrialised and Diversified Economy Enhanced mitigation and Adaptation to climate change 9,13 25|Page <!-- page 32 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Sustainable Environment and Natural resources Enhanced Solid Waste Management and Resource Recovery 6.6, 7.4, 7.5 Improved water supply and sanitation Enhanced mitigation and Adaptation to climate change Sustainable Environment and Natural resources 6, 7,13 Livestock Farmers able to Cope with Climate Change through adoption of Improved Practices that Enhance Livelihoods 5.4, 5.5, 6.5, 6.7, 7.4 An Industrialised and Diversified Economy Enhanced Citizenry Participation in the Economy Improved Health, Food and Nutrition Reduced poverty, vulnerability and Inequality Enhanced Mitigation and Adaptation 1, 2, 3, 5, 10, 13 Sustainable Systems for Improved Smallholder Livestock Production and Productivity Operational 5.4, 5.5, 6.5, 6.7, 7.4 An Industrialised and Diversified Economy Enhanced Citizenry Participation in the Economy 1, 2, 3,5, 10, 13 26|Page <!-- page 33 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Improved Health, Food and Nutrition Reduced poverty, vulnerability and Inequality Enhanced Mitigation and Adaptation Sustainable Industrial Products and Product Use 5.4, 5.6, 7.4, 7.5 An Industrialised and Diversified Economy A competitive Private Sector Enhanced Mitigation and Adaptation Sustainable Environment and Natural Resources fy, 9; TI, 12, 13 Sustainable Transportation Infrastructure 9.4, 7.4, 7.9 An Industrialised and Diversified Economy Enhanced Mitigation and Adaptation Sustainable Environment and Natural Resources ¥, oo C1, 13 Strengthened Institutional Capacity for Coordination Climate Change Projects and Programmes in Zambia 5.5, 5.6, 6.4 Enhanced citizenry Participation in the Economy A Competitive Private Sector 5, 13, 16, 17 27|Page <!-- page 34 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Human and Social Development Enhanced Transparency for Efficient GHG Accounting and Climate Reporting in place 6.4, 7.4, 7.5, 8.4, 8.5 Human and Social Development Enhanced mitigation and Adaptation to Climate Change Sustainable Environment and Natural Resources Management Improved Policy and Governance Environment Rule of Law, Human Rights and Constitutionalism 13, 16, 17 Enhanced Environmental Sustainability 6.4, 74, 7.5, 8.4, 8.5 Human and Social Development Enhanced mitigation and Adaptation to Climate Change Sustainable Environment and Natural Resources Management Improved Policy and. Governance Environment 13, 14, 15 28|Page <!-- page 35 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030 Rule of Law, Human Rights and Constitutionalism Increased resilience of the Health sector to climate change 6.4, 6.5, 7.4 Human and Social Development Improved Health, Food and Nutrition Enhanced mitigation and Adaptation 3, 6, 12 29|Page <!-- page 36 --> NDC IMPLEMENTATION FRAMEWORK NARRATIVE | 2023-2030

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