The Hon. (Dr.) Dammika Patabendi - Minister of Environment

¶ 01 (a) (i) Sri Lanka’s forthcoming arrangement to implement the Climate Prosperity Plan (CPP) primarily focuses on building an economy that is resilient to climate variability and achieves net-negative carbon emissions over time.

¶ 02 Key objectives and strategies: - Maximizing renewable energy: - Increase the share of renewable energy generation from 35% to 70% by 2030. - Lay the groundwork to steer the country towards a net-negative emissions status by the end of the decade. - Enhancing resilience through nature-based solutions and financial protection. - Green financing: - Launch the National Climate Finance Strategy (2025-2030) to provide the financing framework necessary to implement climate policies. - Mobilize resources through instruments such as green bonds, disaster risk insurance, and carbon markets. - Green jobs: - Prioritize creation of green jobs to maximize benefits from a sustainable and climate-secure transition.

¶ 03 Sri Lanka’s NDC Implementation Plan (2021-2030) and the Carbon Net Zero 2050 Roadmap are being implemented in alignment with this broader Climate Prosperity vision.

¶ 04 Current status: 1. The updated draft of the Climate Prosperity Plan has been finalized, and a validation workshop was held on 10 October. 2. Upon securing concurrence of relevant line ministries, Cabinet approval will be sought. 3. Sectoral projects under the Plan have been identified along with potential funding institutions. Following submission of proposals to the respective parties, Sri Lanka can obtain financial support to implement these projects. 4. The Vulnerable Twenty Group (V20), initiated in 2015 alongside the Annual Meetings of the World Bank Group and the IMF, operates under the Finance Ministers’ Climate Vulnerable Forum to mobilize and operationalize public and private finance for economic and development strategies to address climate risks. In Sri Lanka, the Ministry of Finance should serve as the national focal point for V20, while the Ministry of Environment will act as the focal point for the Climate Vulnerable Forum. This will facilitate close cooperation with the IMF and the World Bank.

¶ 05 Accordingly, the Government has taken the following steps to ensure Carbon Market Access: - With technical and financial support from the UNFCCC Regional Collaboration Centre in Dubai, a national carbon trading policy and guideline compendium is being prepared. The current draft will be subjected to stakeholder consultations, followed by public comments, and then submitted to the Cabinet for approval. Upon approval, the policy will be implemented. - An agreement with Japan was signed on 2022/10/10 to implement the Joint Crediting Mechanism (JCM). Under Paris Agreement Article 6.2, projects are implemented with authorization by the Joint Committee. - For Paris Agreement Article 6.4 implementation, the Ministry of Environment serves as the National Authority. Approval has been granted for seven projects to access the new mechanism for clean development-style activities. - A Memorandum of Understanding with Singapore to cooperate on Paris Agreement Article 6 implementation was signed on 2023/08/22. - A national carbon registry is being developed with the support of UNDP.

¶ 06 (b) Does not arise.