ProGED Approach

The ProGED approach was developed using the lens of Capacity WORKS. Capacity WORKS is GIZ’s management model for sustainable development. Capacity WORKS is all about achieving the objectives and results agreed on. Together with our partners we jointly structure the project on the basis of the five Capacity WORKS success factors: strategy, cooperation, steering structure, processes, and learning and innovation. Using Capacity WORKS involves applying the success factors and the tools that go with them to continuously review the path taken. This enables us to respond flexibly to changed conditions in a dynamic environment.

ProGED Objective

MSMEs as well as government institutions relevant to economic development increasingly implement environment friendly, climate smart and inclusive strategies and measures.

ProGED Strategy

The ProGED strategy combines the private sector development approaches of greening the value chain and establishing climate smart locations. Project implementation is guided by a results framework that was developed during the commission phase. ProGED aims to achieve eight distinct results by the completion of the project. These were further clustered into three lines of intervention to facilitate implementation.

Table 1. ProGED Results Framework and Lines of Intervention

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Fig. 1 ProGED Strategy

LOI 1 focuses on raising MSME awareness about climate change, and how the adoption of greening strategies can minimize the negative impacts on their business while enhancing their competitiveness. It also includes gathering, consolidating and disseminating relevant information on products (technology suppliers) and services (service providers and financing institutions) that can help enterprises achieve their greening objectives. This is achieved through a combination of events with stakeholders, complemented by knowledge products available in print and electronic format, all of which may be accessed through the project website: www.greeneconomy.ph.

As a means to recognize the efforts of enterprises who have decided to go green, the project, through BSMED is also supporting the enterprises to apply in award programs that recognize greening initiatives These include both national and international award giving bodies.  BSMED and the concerned DTI Provincial Office will support participating enterprises in the replication sites to join these award programs.

LOI 2 centers on facilitating the linkage between MSMEs and professionals, suppliers, and financing institutions that can help the enterprises achieve their greening objectives. Identifying the specific sectors and activities and the corresponding hotspots is achieved through the conduct of the green value chain approach in the identified priority sectors of DTI. Matchmaking activities are implemented on the basis of the action plans emerging from the value chain analysis.

ProGED Cooperation Landscape

At the start of the project (and each year of implementation) the project mapped out the partners it anticipated to be working with in order to determine “who” should be integrated into the project, what “role” they will play, including external resources that can be mobilized and possible synergies that can be established. These have been disaggregated into primary and secondary stakeholders among public, private, and civil society/ development partners. Different stakeholder maps have been drawn up for the national level, as well as for Cebu and Bohol. The project likewise developed a generic stakeholder map for the replication sites, which can be customized to the local situation.

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Fig. 1 National Level Cooperation Map

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Fig. 2 Cebu Province Cooperation Map

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Fig. 3 Bohol Province Cooperation Map

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Fig. 4 ProGED Replication Site Cooperation Map

ProGED Processes

Project activities are implemented at the national and provincial levels in parallel along the three lines of intervention. These are co-organized and carried out jointly by the ProGED Team with their DTI counterparts. Specific activities are identified and implemented based on the overall strategy towards achieving the project objective and meeting the project indicators.

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Fig. 1 ProGED Processes

LOI 1: Information and Awareness on GED

  1. Developing Knowledge Products To Support Project Implementation.
    While the issue of climate change is commonly discussed in media, there is very little understanding of its effects on the economy and how one can cushion its impacts. Even less common is the recognition of the link between greening and how it can enhance the competitiveness of enterprises and their resilience to the adverse impacts of climate change. ProGED has developed, and continues to produce knowledge products to support both its partners and enterprises to establish a better appreciation of the concepts of climate change, green economic development, and adaptation and mitigation strategies for MSMEs. These encompass print, video, and electronic products that are available on the project website. Aside from the documentation of project activities and processes, ProGED also features businesses and local government units (LGU) that have adopted greening practices and the benefits that they have accrued.
  2. Build Up a Resource of Green Enablers
    A dedicated green enthusiast can actually implement simple or “zero investment” greening practices that mainly involve behavorial changes or operational practices by drawing from the wealth of information available on the internet or gather ideas from colleagues and friends. But if one would like to fully explore the opportunities for greening, it is best to tap the expertise of a professional. Going green involves various individuals, organizations and companies offering a range of services and products to help an enterprise to achieve their greening objectives.ProGED has assembled a resource pool of “green enablers” consisting of service providers, technology suppliers, financing institutions, national government agencies, and development organizations with greening programs to support. Enablers include public and private “green” service providers that offer technical expertise for greening operations; technology suppliers that supply a range of products that improve the resource efficiency of buildings and operations; and financing institutions that offer “green” financing windows. While these are mainly located in the pilot sites, the project continues to populate the database to include those in other areas in support of the replication sites.
  • Green service providers (GSP) can be either from the public or private sector. Public green service providers are mainly comprised of technical staff from the national government agencies (NGAs) that provide expertise/services in the areas of energy and water efficiency, solid, wastewater and hazardous waste management, green technology, renewable energy and the like. These would include, but not limited to: Department of Energy (DOE), Department of Science and Technology (DOST), DENR Environment Management Bureau (DENR-EMB), and the like. It may also include academic institutions such as State Universities or research facilities that offer such services. Private GSPs are professionals with technical expertise in one or more areas for assisting businesses in greening their facilities / operations. This may include green architects, engineers that conduct energy audits, pollution control officers, horticulturists with a specialization on organic farming, and others. While many of them practice as individual consultants, there also exist consulting firms or professional organizations/ networks that offer a package of services.
  • Green technology suppliers (GTS) include retail or wholesale companies that sell products/technology that help businesses achieve their greening objectives. Products may include those that sell energy and water efficient lighting, equipment and appliances, products that utilize renewable energy, chemical free cleaning supplies, alternative building materials and the like. GTS can also come in with advice on product selection, after sales service, and sometimes even suggestions for financing. However, one must exercise caution when purchasing such products because these may not have yet been certified by a reputable organization, they may not be of good quality, or may not be appropriate for the intended use. As such, it is recommended to conduct proper research when one intends to purchase these items or to engage the services of a GSP so one can be properly guided on the selection of the most appropriate technology. At the same time, verify that the company is registered and certified by the appropriate regulatory bodies of the national government.
    • Develop, design an arrange financing for energy efficiency projects
    • Install and maintain the energy efficiency equipment involved
    • Measure, monitor and verify the project’s energy savings; and
    • Assume the risk that the project will save the amount of energy guaranteed

LOI 2: Greening Value Chains (GVC) and Matchmaking

As the saying goes: a chain is only as strong as its weakest link. It depends largely on the efficiency and cost effectiveness of the actors in each function. The competitiveness of a value chain also depends on its capability to adapt to climate change, particularly with regard to the extent to which the business seeks to mitigate adverse impacts of their operations on the environment and the efforts to contribute to a green economy.

Greening stands for reducing the negative ecological impacts OF as well as ON value chains and exploiting market opportunities that stem from climate change and environmental degradation. Greening the value chain and greening the businesses means implementing measures that will help them manage their resources more efficiently (water, energy, scarce raw materials), with the ultimate goal of making them more competitive. Adopting these initiatives will help them adapt to climate change and minimize its adverse environmental impacts on their businesses and at the same time reduce the negative impacts of their business operations on the environment.

Greening the value chain goes beyond the initial added value to a product or service through the adoption of one or more environment-friendly features, such as the use of organic materials for a food product or shifting to electric vehicles. Rather, it takes the whole value chain into account— from production to consumption. Ideally, it would mean that an organic food product is packaged in biodegradable materials and delivered to consumers using transport that runs on clean energy (electricity) generated through renewable sources (solar or wind).

The key phases that guided DTI Bohol and Cebu in promoting and adopting GED approaches include: sensitization, action planning and matchmaking. In each of the three phases, the processes of planning, implementation and monitoring are undertaken.

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Fig. 2 Greening the Value Chain Approach

Sensitization. The primary objective of this phase is to secure the buy-in of key stakeholders on the benefits of going green. It is very important to identify the target participants of the activities and the most appropriate manner to get the message across. The first step is identify the stakeholders of the value chain to be invitied to the activities. Based on the profile of participants (operators and enablers), the corresponding sensitization activity designs are developed. Aside from the stakeholders, it is also important to identify green “frontrunners” in the locality. These are individuals/businesses who have already initiated greening activities. They can be very instrumental in mobilizing and convincing others to follow the same path.

Assessment and Action Planning. Now that the stakeholders and sector/s have been identified, the next step is to goin to the assessment and action planning to identify the greening opportunities. It is in this phase where the greening value chain analysis (GVCA) approach is applied. A detailed guide on conducting a greening the value chain workshop can be viewed here (INSERT LINK) please provide the link to the document.

In areas where a value chain analysis has already been conducted, an abridged version of the GVCA approach can be applied where an assessment will be conducted to determine a) the impact of the value chain on the environment, and b) the risks of climate change on the VC. A full GVCA approach is necessary in areas where a value chain analysis has not yet been conducted. This can be done back-to-back with a GED sensitization workshop.

For priority sectors with extensive value chains such as tourism, it is suggested to conduct smaller focus group discussions (FGD) with the various functional groups to ensure that specific concerns relevant to their activities are raised. The environmental concerns of transport operators, for example, will vary widely from those offering accommodations.

Matchmaking. The primary role of ProGED and DTI in the greening of enterprises is to facilitate the matchmaking activities between the businesses and the greening enablers as discussed in the earlier section. It includes activities such as businessmatching activities, exhibits and technical sessions/forums where enterprises have an opportunity to see the products and services available, or bringing together large businesses with local suppliers. The project also facilitates direct discussions between enterprises and enablers in cases where the business already has a clear idea of what they want to do.

The action plans of the functional groups, plus the information provided by the enterprises on their interests in greening provide enough information for the project team to identify corresponding matchmaking activities. These should be designed again in accordance with the type, size and specific interests of the MSME in mind to ensure that it is effective. For successful matchmaking activities, it is important to identify the appropriate resource persons, experts and green technology suppliers to discuss the identified topics. It may also be useful to partner with various public and private organizations to jointly organize and implement the matchmaking activity.

LOI 3: Establishing a green policy framework at the National (DTI) and Local (LGU) levels

  1. Formulation of a Human Capacity Development (HCD) Strategy. ProGED recognizes that Learning and Innovation will play a critical role in implementing activities that will pave the way for the achievement of its objectives. It is important that the capacities of key individuals in the project—both among the project team and the relevant staff within DTI and other key stakeholders—are enhanced so that they are able to perform their roles more effectively. Towards this end, the project engaged the HCD specialist of GIZ Manila to develop a strategy with the objective to increase the effectiveness of ProGED by developing, integrating, and implementing an HCD strategy that addresses the critical learning and innovation requirements necessary to achieve the objectives and outcomes set in the project. ProGED’s HCD strategy focuses on two key recommendations
    • Develop the capacities of key individuals in the project with a focus on the following key areas including, GED strategies, policies, approaches for MSMEs at various levels of implementation; GED best practices at firm and industry level appropriate for MSMEs; computing for the economic benefits of GED; green finance mechanisms; and walk thru capacities for assessing GED levels in firms.
    • Utilize the most appropriate HCD format for delivering competency requirements and at a location best suited vis-à-vis objective, contents and economic aspects. The HCD modalities included learning visits, GED training modules and various training activities for the project team geared towards ably supporting the partners.
  2. Develop a Green Results Framework
    In order to mainstream greening initiatives in the Department, it is important to incorporate it as policy at the national level. To this end, the project focused on two main activities at the national level: the creation of the DTI Green Growth Core Group, and the formulation of a Green Results Framework.A Green Growth Core Group chaired by an Undersecretary and co-chaired by the Directors of Corporate Planning Service and Resource Generation and Management Service has been created at the national level. Their mandate is to

    • Develop and recommend a Green Results Framework integrating strategy within DTI programs and policies
    • Identify and develop DTI Plans, programs and projects that would have direct relation to specific green growth concerns
    • Create awareness among DTI officials and staff on the significance of the green growth approach and take the lead in green growth policy research and advocacy within DTI; and
    • Promote the Department’s green growth agenda with other NGAs such as the Department of Energy (DOE), the Department of Environment and Natural Resources (DENR), as well as entitities such as the Climate Change Commission (CCC); and other agencies and development partners, international organizations in the Philippines and abroad.

    A Green Results Framework was developed with the support of ProGED to guide the DTI in the formulation of strategies to support enterprises in adopting these greening interventions through ongoing programs. This includes the National Industry Cluster Capacity Enhancement Project (NICCEP), Shared Service Facilities (SSF), and SME Roving Academy (SMERA), and Grassroots Participatory Budgeting (GPB) among others. The same framework became the basis for a follow-up intervention whereby ProGED supported the greening of selected industry roadmaps, namely: automotive, copper, furniture, mass housing, plastics, and pulp and paper under the Board of Investments (BOI).

  3. Greening DTI Programs and Projects
    To institutionalize the greening approaches in DTI, the project integrates project activities within the core programs and projects of the department, at the same time, encourages the partner to incorporate the “green lens” in their core activities. This encompasses DTI programs such as the SME Roving Academy (SMERA), Shared Service Facility (SSF), Export Promotion, Investment Promotion, and Consumer Protection and Advocacy.

ProGED Steering Structure

The steering for the ProGED Project takes places at three levels: national, regional and provincial. The overall project direction and decision making is performed by the ProGED Steering Committee at the national level composed of the Undersecretary and Assistant Secretary of the Regional Operations Group (ROG), the Director for the Bureau of Small and Medium Enterprises (BSMED), and the Project Development and Coordination Division Chief on the side of DTI, and the GIZ Regional Director, the GIZ ProGED Project Manager and the GIZ Monitoring and Evaluation Specialist representing the German counterpart.

Strategic decisions on how to integrate the green approaches in the DTI plans, programs, and activities are made at the regional level, composed of the DTI Executive and Management committees. They are supported by the DTI regional focal person, and the chief of the Business Development Division. Senior and Technical Advisors from the ProGED offices in the pilot areas provide support in these processes.

Implementation of GED activities is carried out at the provincial level by the DTI Provincial Office, led by the Provincial Director and the designated staff, with the support of the ProGED offices. Regular coordination with the ProGED Senior and Technical Advisors is held towards smooth implementation of activities.

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Fig. 1 ProGED Steering Structure

The steering structure is complemented by processes (events) that are spread throughout the year, providing the proper venues to review and adjust the operational plans as needed.

In the first quarter of the year, the project convenes its partners for the Annual Operational Planning (AOP). This is the strategic steering level involving the key DTI National, Regional, and Provincial partners with the project team. The output of this activity is a detailed plan of the activities, known as the operational plan, to be carried out in the project sites. The same group is assembled in the Monitoring and Replanning Meeting (MRM), usually in August, to review the operational plans, make adjustments for activities in the remaining three months of the year, and prioritize activities for the first half of the next year.

A Steering Committee Meeting (SCM) is held within one month following an AOP or MRM to endorse the operational plans, agree on the focus of interventions for the next year, and discuss pending issues that will have implications on project implementation.

At the operational level, the ProGED Team meets with their DTI Counterparts at least on a monthly basis to discuss the status of project implementation, in addition to the regular communications held in relation to the joint implementation of activities.

ProGED Learning & Innovation

The project’s interventions in this key success factor evolved from the HCD strategy. It includes a combination of knowledge products and capacity development activities, such as learning visits and the GED.

Learning Modules

  1. Knowledge Products (KP)
    KPs are developed to support project implementation, in the areas of sensitizing enterprises on the benefits of greening, capturing greening experiences of businesses, and documenting steps in project implementation to support replication in new sites and institutionalization within DTI. These are available in the project website www.greeneconomy.ph.
  2. Learning Visits
    Learning visits are an effective method for sensitizing and imparting new knowledge to stakeholders because it allows them to see firsthand how things are done and they can interact with the resource persons on the process undertaken. In 2014, the project organized four learning visits for partners in various international sites. Exchanges among DTI provinces are also planned for 2015.
  3. Green Economic Development (GED) Learning Modules
    The GED learning module is a one week course on the different aspects of green economic development designed to capacitate DTI staff in replication sites to steer the activities in their areas. The first one was held in July 2013 and the second one in November of the same year. Participants included the Provincial Directors and their designated staff assigned to steer project implementation in their areas.
The GED modules are composed of five fields—general awareness building, greening strategies in each of the six hotspots of intervention, exposure visits, instruments and specialized topics—which will be combined with each other in one training measure. Modules for each of the themes have likewise been developed and can be used interchangeably, depending on the capacity development needs of the target audience. The materials can be downloaded from the website at http://greeneconomy.ph/process-documents/#3

ProGED Reference for Web

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