Guidance

Prosperity Fund: Japan Country Strategy

Updated 30 April 2013

The FCO Prosperity Fund supports the UK Government’s promotion of sustainable global growth, including in the areas of economic reform, climate change, and energy and resource security.

1. An open global economy

An open global economy is the most effective way to support development and increased prosperity. We want to encourage openness to trade and investment, discourage protectionism and strengthen the multilateral trading system.

2. Avoiding dangerous climate change

If we are to avoid dangerous climate change, which will undermine the conditions necessary for sustainable global economic growth, we need to urgently transform the global economy to a low carbon one. Our aim is to create the political conditions necessary to deliver the political commitment or the necessary shift in investment.

3. Energy and resource security

Low carbon policies can and should enhance energy security globally – this has been the main focus of our work on ensuring access to resources. We want to continue to seek deeper engagement with energy producers and the conditions for investment in transitional oil and gas, transparent and stable markets, improved reliability of supplies, more alternative energy sources and more efficient consumption of energy. We also want to reduce the severity or likelihood of the worst consequences of climate change on natural resource security (the nexus of food, water, land and energy security). We need a greater understanding and commitment by government and businesses to improved governance, management and access to natural and material resources.

4. Japan Programme Indicators

In Japan the Prosperity Fund supports the Prosperity objectives set by the British Embassy in Tokyo and British Consulate-General in Osaka. Projects seeking funding from the Prosperity Fund must show how they will generate a real and measurable impact, which will contribute to the achievement of Prosperity objectives. This impact is known as a Programme Indicator. A project proposal may address more than one Programme Indicator.

The guidance below is not exhaustive, but designed to help organisations better understand the Prosperity Fund Programme objectives in Japan.

4.1 Open Global Economy:

Japan moves to become a less regulatory and more risk-based internationally-aligned economy which is favourable to UK interests

Programme Indicator

  1. Japan adopts a substantial Growth Strategy with key indicators for economic reform.
  2. Japanese authorities and business groups are open to regulatory change, adopt policies and practices related to transparency, and create an improved trade and investment environment.
  3. Japanese authorities play an active role in international economic fora (including the 2013 G8 and G20 summits).

Project guidance

Proposals could be in the areas of: * Encouraging deregulation (including in energy, medical devices and public procurement) and easing unnecessary regulatory burdens * Promoting transparency, corporate governance and diversity * Encouraging the Japanese government to join the Open Government Partnership * Enabling progress on negotiations towards an EU-Japan Free Trade Agreement * Ensuring Japan’s ratification of the UN Convention against Corruption

4.2 Avoiding Dangerous Climate Change:

Japan prioritises low-carbon growth, actively pursues its 80%/2050 low carbon target and plays a constructive role in the UNFCCC

Programme Indicator

  1. Japan develops policies, measures and technologies to achieve its 80%/2050 target and enable the transition to a low carbon economy.
  2. Japan increases green growth advocacy and outreach, and adopts tools to support long-term policy decisions. Increased Japan-UK collaboration on green growth-related projects in developing countries including through international and regional organisations.
  3. Japanese industry recognises a stable climate as being essential for Japan’s prosperity and security with key businesses calling for the adoption and implementation of low carbon policies and ambitious targets.

Project guidance

Proposals could be in the areas of: * Shaping policies to incentivise low carbon and developing low carbon sectors * Facilitating policy and technology on carbon capture and storage, and carbon capture and use * Accelerating green growth (including the use of renewables) * Promoting voluntary disclosure of emissions and reduction actions at corporate level * Encouraging businesses, key industry, banks and financial stakeholders to see low carbon transition as being in their own economic interests, leading to calls on the government for ambitious action * Creating low carbon investment opportunities * Adding value to the UNFCCC process

4.3 Energy and Resource Security:

Japan plays a positive role in enhancing international energy security and Japan’s nuclear safety standards adhere to international best practice with public debate focused on evidence-based assessment of nuclear role in the energy mix

Programme Indicator

  1. Japan encourages international price convergence including making progress on gas price convergence with better contracts negotiated and the creation of an Asian trading hub in Tokyo.
  2. Japan shows support for ambitious renewable and energy efficiency policies and appreciation for resource security aspects of climate change, and passes a Climate Bill which includes reduction targets.
  3. Scientific knowledge informs public debate on role of nuclear power with nuclear regulator adopting international best practice.

Project guidance

Proposals could be in the areas of: * Increasing uptake of power from renewable sources * Developing building and housing energy efficiency plans * Enhancing investment climate * Encouraging UK-Japan cooperation on resource security challenges * Ensuring nuclear safety collaboration and better-informed public nuclear debate

4.4 Guidance for bidders

  • The Prosperity Fund is aimed at projects which are practical interventions, and which will lead to a real and timely difference to decision making. Proposals focusing on research, analysis, seminars or workshops will not be relevant unless they lead to specific and measurable action.
  • Experience has shown that the best way to ensure projects have high impact and trigger further action is to work towards high-level policy change, build capacity in a sustainable way, translate evidence or analysis into action plans and work closely with host governments. This might include using Prosperity Fund funding to leverage co-funding from other donors.
  • All project proposals should:
    • outline impact; what changes will the project make?
    • demonstrate that all relevant Japanese Government Ministries have been consulted and are supportive. Or if they have not, explain how the project has sufficient support from the necessary stakeholders to deliver the expected outcomes
    • demonstrate that local partnerships are already established
  • We welcome projects covering a region (for example, Japan, South Korea and Taiwan). If you have a proposal for a regional project, please contact the Embassy at an early stage to discuss the procedure for bidding. A regional project must show how impact will be achieved in all countries covered.
  • We also welcome projects covering a regional area within Japan (for example, a group of prefectures). Proposals must show how the project will have an impact across the whole area and may be replicated in other areas.
  • Project partners can include government, businesses and NGOs. Experience has shown that work with government and official bodies is more likely to result in high-impact, transformational outcomes which outlive the duration of the project.
  • Proposals must make clear that they are adding value to and not duplicating other donor activity.
  • Project proposals may be single year or multi-year, although the amount of programme funding available for following years is not confirmed. For this reason, project funding for multi-year projects cannot be guaranteed for future years. Multi-year project proposals will need to ensure that significant outcomes have been achieved at the end of the first year, i.e. by March 2014.

4.5 Programme Administration

  1. The Prosperity Fund in Japan is managed by the British Embassy in Tokyo. Information about bidding rounds will be published on the Embassy website www.gov.uk/world/japan
  2. Bidding rounds are split between a concept and full bid stage.
  3. Projects are assessed and selected by a Programme Board consisting of British Embassy Tokyo and Foreign and Commonwealth Office officials, and independent external members.
  4. Proposals should be submitted on the designated bidding form. Organisations looking to submit a bid are strongly encouraged to contact the British Embassy at an early stage to discuss whether the proposal is strategically aligned to the Prosperity objectives and fits our requirements.
  5. The British Embassy makes payments to project implementers only in arrears on a quarterly basis and does not pay in advance. Project administrative costs should be less than 10 per cent of the overall budget.
  6. The FCO places a strong emphasis on programme and project-level evaluation. Project implementing organisations must submit quarterly progress reports for the duration of the project, and submit a project completion form within three months of the project conclusion. In addition, depending on the scale of the project, a full and independent evaluation may be required. Evaluation costs should be factored into the project budget from the outset.
  7. Proposals should include any publicity, dissemination and outreach activities in the budget from the outset. Any media work should be directly related to the project proposal. Please note that any paid for marketing work (or conferences which are general meetings rather than capacity-building events) may require additional approval; please contact the embassy at an early stage about this.
  8. Stages of bidding rounds * Announcement of call for bids * Submission of concept bids * Review of concept bids * Replies sent out the concept bidders with full bids requested from selected bidders * Submission of full bids (only if approved during concept bid round) * Announcement of results * Contracts signed * Projects start

4.6 Eligibility

Government departments, civil society organisations, NGOs, private companies, independent consultants, research organisations, think tanks and universities are eligible to apply for project funding.