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EXECUTIVE COUNCILSeventy-Third Session14 to 25 June 2021, Virtual Session

EC-73/INF. 4.2(2)

Submitted by:Secretary-General

2.VI.2021

SYSTEMATIC OBSERVATIONS FINANCING FACILITY (SOFF)

This document is in support of draft recommendation EC-73/Doc. 4.2(2)/1. It provides an overview about the planned creation of the SOFF including progress update and planned next steps. Detailed information is available following this weblink.

Box 1: What is SOFF?

• A global initiative to address a foundational problem in a systematic manner – missing surface-based observations from developing countries

• A dedicated and innovative financing mechanism that will provide grants and technical assistance to achieve sustained Global Basic Observing Network (GBON) compliance, with a focus on LDCs and Small Island Developing States (SIDS)

• A multi-partner endeavour and commitment of the Alliance for Hydromet Development (coalition of 13 major climate and development finance partners), spearheaded by WMO

• A mechanism that will build on National Meteorological and Hydrological Services (NMHSs) peer-to-peer support, including the Country Hydromet Diagnostics assessments provided through the Country Support Initiative

• A priority capacity development initiative supported by beneficiary countries and international partners

1. Context

1.1 Long-Term Goal 2: Enhancing Earth system observations and predictions

The WMO Strategic Plan 2020-2023 (Resolution 1 (Cg-18)) sets as Long-term Goal 2 to enhance Earth system observations and predictions. Strategic objective 2.1 is to optimize the acquisition of Earth system observation data through the WMO Integrated Global Observing System, with a focus in the current financial period (2020-2023) on further development and operational implementation of the GBON.

Reflecting the urgency of this issue, the same Congress session via Resolution 34 (Cg-18) adopted the overall concept for the GBON and requested the Infrastructure Commission to draft the regulatory material required for the implementation and operating of this network.

In November 2020 the WMO Infrastructure Commission (Recommendation 2 (INFCOM-1)) endorsed the draft regulatory material developed by its Study Group on GBON and provided its recommendation to WMO Congress that this material be approved.

Closing the GBON gap – ability to pay versus ability to observe. Figure 1 illustrates a major difficulty that is expected in the implementation of GBON once approved by Congress. The left panel shows that many of the Members that are currently far from being able to meet

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GBON (red colours) are largely those that have the lowest Gross Domestic Product (GDP) per unit surface area (right panel dark blue/purple). In order to ensure that GBON achieves compliance and will be able to operate in a robust and sustainable manner in these areas, substantial technical and financial support will be needed.

Figure 1. Ability to pay versus ability to observe; Left panel: density of observations by nation (red do not meet requirements); Right panel: National GDP/km2 of surface area;

darker colours show fewer resources per unit area. Source: WMO secretariat, 2021

1.2 Long-Term Goal 4: Closing the Capacity Gap

The WMO Strategic Pan 2020-2023 (Resolution 1 (Cg-18)) sets an ambitious Long-term Goal 4: Closing the capacity gap on weather, climate, hydrological, and related environmental services. It is a foundational Goal – without the adequate capacity of all WMO Members (the majority of WMO Members are developing countries and territories), the achievement of all other Long-term Goals remains elusive.

The Strategic Objective 4.3 of this Plan calls for scaling up effective partnerships for investment in sustainable and cost-efficient infrastructure and service delivery. Development and climate finance partners are investing billions of dollars for better weather forecasts, early warning systems, and climate information. Therefore, it is critical for WMO to enter into strategic and innovative partnerships and to provide technical leadership to development and climate finance partners.

To deliver on Strategic Objective 4.3, Resolution 74 (Cg-18) decided to establish the Alliance for Hydromet Development and the WMO Country Support Initiative. The Alliance for Hydromet Development was launched in 2019 at the United Nations Framework Convention on Climate Change twenty-fifth session of the Conference of the Parties (UNFCCC COP25). The Country Support Initiative (CSI) is expected to provide NMHS peer-to-peer advisory services, to support NMHSs on diagnosing their performance and compliance (using the Country Hydromet Diagnostics), and to develop innovative financing models to address the perennial sustainability issue of investments in and maintenance of basic operational systems (SOFF).

In October 2020, the seventy-second session of the Executive Council (Decision 11 (EC-72)) decided to accelerate implementation of Resolution 74 (Cg-18) and to pursue development of SOFF with the aspiration to announce the creation of the facility at UNFCCC COP26. The EC also decided to advance development and implementation of the Country Hydromet Diagnostics as a tool and approach to provide NMHS peer-reviewed assessments of capacity and performance of each member, highlighting critical deficiencies to inform and guide investments related to development projects. It requested the Secretary-General to establish the CSI, complete development and implement the Country Hydromet Diagnostics, and lead SOFF development in collaboration with the Alliance for Hydromet Development and other development partners.

2. SOFF value proposition and key features

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2.1 What is the Goal of SOFF?

The Goal of SOFF is to strengthen local and global resilient development, climate adaptation, and sustainable development through improved weather and climate prediction. SOFF contributes to this goal through sustained collection and sharing of high-quality surface-based weather and climate observations in compliance with the GBON requirements and access to freely available improved weather and climate prediction products.

According to a recent World Bank report, the potential benefits directly enabled by the full implementation of GBON, via its implementation in countries with the largest current data gaps, are estimated to exceed US$ 5 billion per year, due to improvements in weather prediction alone. Per the overall GBON cost estimates used in the report, every dollar invested in GBON would help unleash additional economic benefits at a benefit-cost ratio of 25:1, i.e., for every dollar at least 25 US dollars in socio-economic return could be realized.

SOFF has a dedicated focus on strengthening the initial part of the hydromet value chain. Figure 2 below shows the foundational contribution of SOFF for the effectiveness of “last mile” investments at country level. Close coordination between SOFF and intermediate stage as well as last mile projects along the value chain in SOFF beneficiary countries will be crucially important both, to ensure the success at the “last mile” elements of the value chain and to maximize the overall impact of hydromet capacity development in the countries (see section 2.4).

Figure 2. All links of the hydromet value chain must be supported to effectively yield success.

2.2 Why is a dedicated mechanism needed?

Today, many development and climate finance partners and initiatives are investing in hydromet development. However, investments in observations through multiple time-bound projects have not, in many instances, translated into increased observations sharing and have not yielded lasting benefits. Despite significant investments, the situation is getting worse in many cases. The current investments of the Alliance for Hydromet Development in basic observations are estimated at about US$ 500 million. However, the European Centre for Medium-Range Weather Forecasts (ECMWF) observed a dramatic decrease in the number of shared upper-air observations from radiosondes (the most important surface-based data for weather prediction models) of almost 50% in Africa from January 2015 to January 2020.

Today’s model of providing international assistance for strengthening countries’ basic observations faces several shortcomings, namely it:

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assumes that even the poorest countries have the sole responsibility to cover costs of basic surface-based observations;

lacks predictability and sustainability, and operating and maintenance costs are not covered;

does not use sustained data sharing as the actual measure of success; makes limited use of experience and know-how of advanced meteorological

services; and is provided in a fragmented manner.

Considering these challenges, the Alliance for Hydromet Development recognized the urgency of addressing the issue of missing foundational observational data in new ways. Therefore, all 13 Alliance members committed to seeking innovative ways to finance developing country surface-based observations through the creation of a Systematic Observations Financing Facility that recognizes the economic value of observations as a global public good.

SOFF, as a dedicated multi-partner initiative will address the shortfalls in a systematic manner:

First, SOFF recognizes the global public good value of basic observations and the financial constraints of Least Developed Countries (LDCs) and SIDS. Therefore, it provides grant-only resources to these countries, outside the constraints of country envelopes and allocations set by existing development and climate finance institutions.Second, SOFF provides predictable finance, including for long-term operation and maintenance. Today, international development and climate finance partners do not offer long-term support to contribute to cover operation and maintenance costs, largely because of constraints of their operational models.

Third, SOFF investments will be guided by internationally agreed global design and metrics – the GBON requirements. Traditional development projects are typically prioritized to respond to national priorities. While a country-driven approach is important, it is not sufficient for investments in observing systems as it ignores the transboundary nature of weather and climate prediction. SOFF has a results-based approach to its investments. With the internationally agreed GBON metrics, it is possible to objectively assess countries’ GBON compliance related to the international exchange of these data. GBON compliant SOFF beneficiary countries will be supported through results-based payments, i.e., SOFF resources will be used to support countries’ data sharing efforts.

Fourth, SOFF will become the global competence centre for investments in basic observations, systematically capturing lessons learned and feeding them back into operations. A centrepiece in deploying hands-on operational expertise is the collaboration with advanced NMHSs through the provision of peer-to-peer support for beneficiary countries, including South-South peer-to-peer support, through the CSI. Operating and maintaining observing networks is a non-trivial and complex undertaking, in particular for countries with limited human and institutional capacity and challenging country circumstances. Many development partners providing hydromet development support and investing in basic observations do not have sufficient in-house capacity to design and support implementation of these projects and draw on international consultants. Yet many consultants do not have the hands-on experience, institutional know-how and long-standing relationship with the supported countries.

Fifth, SOFF will address limited collaboration and fragmentation. Effective collaboration and coordination among the several scientific, financial, and operational partners involved in strengthening the weather and climate observing system have proved to be challenging, linked to different incentive structures of the many partners.

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This has translated into fragmentation and inefficiencies in the design and implementation of projects in support of better observing systems, resulting in increasing gaps in observations sharing despite substantial investments. SOFF effectively brings together all major partners with an exclusive focus on the primary links of the hydromet value chain that can only be implemented under a global approach to succeed.

In order to close the GBON investment gap, a unified approach at country level is needed. Multiple investments in basic observation provided by different climate and development finance partners – even if following GBON metrics – result in multiple projects to establish the countries’ GBON network with the acquisition of equipment from different manufacturers in one country. This leads to problems of interoperability and undermines the sustainability of the investments. It creates severe operational inefficiencies for the national GBON system, including securing spare parts of different suppliers and maintenance of institutional and human capacity. SOFF is addressing this problem by closing the GBON investment gap through standardized single interventions with one procurement of equipment for each beneficiary country.

2.3 How will SOFF support be provided?

The SOFF target is to achieve sustained GBON compliance in all 67 LDCs and SIDS. This will translate into a 28-fold increase of surface data and a 16-fold increase of upper-air data internationally exchanged from these counties. SOFF is expected to provide its support in three phases: Readiness, Investment, and Compliance.

Readiness: SOFF will support countries to assess their national hydromet status and gaps through the Country Hydromet Diagnostics (see box 2), define the national GBON gap and develop a plan to close the GBON gap. Readiness support will be offered to all OECD Official Development Assistance (ODA) eligible countries, beyond LDCs and SIDS.

Investment: Beneficiary countries will receive support for capital investments in GBON infrastructure and to develop GBON human and institutional capacity to operate and maintain the observing network.

Compliance: Beneficiary countries will receive support to sustain compliance with GBON in the long-term that will improve the quality of the global Numerical Weather Prediction (NWP) products available to all countries. This includes the provision of results-based finance for GBON compliant beneficiary countries to contribute to cover operational and maintenance costs and ensure continuous data sharing.

Box 2: Country Hydromet DiagnosticsThe Country Hydromet Diagnostics (CHD) is a standardized, integrated and operational tool and approach for assessing National Meteorological Services, their operating environment, and their contribution to high-quality weather, climate, hydrological and environmental information services and warnings. The Diagnostics is an umbrella tool that draws on and adds value to existing WMO assessment material by synthesizing existing approaches and data into an easily interpretable form, validating the information provided by WMO Members through a peer review process, and obtaining missing information. The WMO Community Platform provides the primary source of data for the CHD and the results of the Diagnostics would be integrated in the Platform, adding substantial value to it.

The CHD aims at informing policy and investment decision-making, in particular guiding investments of the members of the Alliance for Hydromet Development. Developing a common tool to benchmark NMHSs is a commitment of the Alliance. Through the Diagnostics, developing countries are expected to benefit from better targeted and aligned support as the assessment of maturity levels indicates where additional focus and

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support is needed.

The CHD uses peer review as its overarching approach, following examples of other organizations, including the Organization for Economic Co-operation and Development (OCED) process for the peer review of member’s development assistance. As peers, advanced NMHSs from developed and developing countries undertake the Diagnostics, strictly following the tool. This enables coherent and standardized assessments across countries.

The CHD is being developed and implemented through a phased and learning approach. In the first phase, the prototype was developed and is being road-tested with selected countries to refine the tool and capture lessons learned. 18 WMO Members are contributing to the road-testing which is fully funded by eight members of the Alliance for Hydromet Development. During the road-testing, that is now being finalized, the CHD was welcomed as an effective tool by both the assessing and the assessed NMHSs as well as the Alliance members. The tool and the results of the road-testing will be presented in the first Alliance for Hydromet Development Gap Report. In the second phase, the tool will be refined based on the lessons learned from the road-testing, guided by a multi-partner working group that is expected to include representatives of WMO constituent bodies, and offered on an on-demand basis to Alliance members that request the Diagnostics for the initial stage of project development in a country. In the third phase, the delivery of the CHD will be fully integrated into the SOFF as a mandatary first step of the Readiness phase.

SOFF basic operational design and arrangements through its three phases of support will be further discussed at the second SOFF Funders’ Forum that is scheduled to take place 28 June 2021 (see Figure 3).

2.4 How will SOFF create links and leverage with other sources of finance?

First, through SOFF outcomes. Sustained GBON compliance is a foundational element of the value chain (see Figure 2). The effectiveness of investments in the latter part of the chain – where the substantial part of today’s international hydromet development investment is placed – fully depend on the first parts of the chain, that are currently weak in many developing countries.Second, through the CHD. The CHD is not only an important element of SOFF support, it also informs investments of all other development and climate finance partners. By authoritatively assessing the whole value chain and identifying gaps, it provides the analytical foundation for prioritized investments of partners’ investments in countries’ hydromet systems – for all members of the Alliance for Hydromet Development and beyond. For each SOFF investment decision the steering committee will be provided with this Diagnostics including an overview of international partners’ country hydromet investments. SOFF funding partners, Alliance members, Climate Risk and Early Warning systems (CREWS) and other initiatives will be able to use this information for their investments in the respective country.

Third, through SOFF Implementing Entities. Whenever possible, SOFF resources – funding and technical advice – will be embedded into larger country hydromet investment operations supported by the Implementing Entities, either within a country or at sub-regional level to create economies of scale and blend SOFF resources with resources provided by the Implementing Entities (see section 3).

Fourth, through the SOFF governance structure. The steering committee as the SOFF decision-making body will play a central role for the creation of links and leverage. The SOFF funding partners are the decision-makers in the steering committee. All funding partners not only invest in SOFF but channel substantial resources through their bilateral and/or multilateral channels in resilient development and climate adaptation. As decision-makers, the funding partners can ensure that SOFF creates the foundation for these other investments and that this foundation is properly used in the investments made by these partners. In

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addition, the SOFF Advisory Board would guide the steering committee, in particular related to SOFF “last mile” links and leverage. It is proposed to include representatives from initiatives like the Risk-informed Early Action Partnership (REAP) and InsuResilience in this board (see section 3).

Box 3. The SOFF/CREWS symbiotic partnership

SOFF and CREWS are playing complementary roles and are mutually dependent for their success. Both mechanisms prioritize SIDS and LDCs, and the effectiveness of CREWS is dependent on SOFF outputs and outcomes, i.e., better global climate and weather products based on substantially increased observations from LDCs and SIDS. In the absence of SOFF, CREWS has also been investing in basic observations but given its institutional set up it is not equipped to be able to address the challenges stated in section 2.2.

With the creation of SOFF, CREWS can deploy its resources exclusively to the latter part of the value chain and “last mile” national actions. In order to create a formal collaboration mechanism, it is proposed that CREWS is represented in the SOFF steering committee. By being a member of the SOFF steering committee, CREWS would be in a position to inform, contribute to and benefit from SOFF policy and strategy decisions as well as all SOFF country investment decisions.

3. SOFF institutional arrangements

Achieving sustained GBON compliance requires effective collaboration of many stakeholders in new ways. This requires a SOFF institutional structure and governance that is both inclusive and focused. It needs to take advantage of competencies and the unique value proposition of the institutions that form the SOFF institutional set up. Following discussions with multiple stakeholders, it is proposed to establish SOFF as a UN Multi-Partner Trust Fund (UN MPTF), a Steering Committee as the decision-making body, a multi-partner Advisory Board that guides the Steering Committee, a SOFF Secretariat responsible for the day-to-day management of the SOFF, and Multilateral Development Banks and UN organizations – members of the Alliance for Hydromet Development – as Implementing Entities.

It is envisioned to establish SOFF as a UN MPTF that pools contributions from SOFF funding partners, with the UN Multi-Partner Trust Fund Office (UN MPTF Office) serving as SOFF trustee and providing fiduciary oversight. The United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP) have expressed their potential interest in joining WMO as co-creators of the SOFF UN MPTF. The UN MPTF was established in 2003 and is administratively housed within UNDP. It provides the framework for multi-partner trust funds created by UN organizations and ensures effectiveness and UN coherence through accountable and transparent administration of pooled financing instruments, currently totalling more than USD 15 billion. As the UN centre of expertise on pooled financing, the UN MPTF Office has a track record in 139 countries.

In line with UN MPTF rules, as creator of the SOFF fund, WMO could serve as the co-chair of the Steering Committee in a decision-making role, jointly with the funding partners. WMO would ensure that SOFF strategic and operational decisions are aligned with WMO’s overall Strategic Plan and its Long-term Goals, in particular Goal 2 (enhance earth systems observations) and Goal 4 (close the capacity gap). WMO would also be the independent verifier of GBON national contributions and of GBON compliance. The WMO Commission for Observation, Infrastructure and Information Systems with the support of the WMO Secretariat would be responsible for verifying GBON national contributions (i.e., what it would take for a country to close the GBON gap) and the achievement of GBON compliance, which is a prerequisite for SOFF funding during the compliance phase.

The Steering Committee would be the decision-making body of the Facility. It would oversee the overall activities of the Facility, decide on its strategic direction, approve and

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amend SOFF governance documents, approve operational guidelines and ensure that the operations of the Facility are consistent with its mandate and objective. It would approve overall funding allocations and individual funding requests. The Steering Committee would be composed of decision-making and non-decision-making members. Decision-making members would be all funding partners and WMO. Non-decision-making members would include the chair of the Advisory Board, a representative from the UN MPTF as trustee providing financial information and advice, and the head of the SOFF Secretariat. In order to closely link the CREWS and SOFF initiatives, it is proposed that a representative from the CREWS initiative would be invited to be part of the SOFF Steering Committee (see box 3).

A multi-stakeholder SOFF Advisory Board could be established. Its objectives would include ensuring that SOFF responds to beneficiary countries’ needs and creating synergies between SOFF and major adaptation and resilience initiatives, linking SOFF with “last mile” policy and investment decisions of these initiatives. The Advisory Board would include representatives from the major early warnings and climate information initiatives (e.g. REAP, InsuResilience, GFDRR).

SOFF requires a highly specialized secretariat to manage SOFF operations and to coordinate and ensure coherence of action by the many SOFF partners. The SOFF Secretariat requires substantial management, technical, and operational expertise as it would deliver on a variety of tasks. It would support the work and decision-making of the Steering Committee and provide secretariat support for the Advisory Board. It would receive and review support requests, report to the Steering Committee and the trustee on progress based on information provided by the SOFF partners, and issue and coordinate the production of the annual SOFF compliance and impact report. Options for setting up the SOFF Secretariat are currently being explored with the UN MPTF Office.

The SOFF Secretariat could administer the CSI provision of peer review and advisory services to beneficiary countries and their Implementing Entities. In 2019, the World Meteorological Congress decided to establish the CSI peer-to-peer advisory service with its own governance structure, including a Steering Committee comprised of funding partners as decision-makers and a Secretariat accountable to the funding partners1. As the CSI has not yet been institutionally set up and to avoid institutional fragmentation and reduce costs, it is proposed that the CSI would be fully integrated into the SOFF and administered by the SOFF Secretariat. The scope of CSI advisory services provided by WMO Members on a peer-to-peer basis would be tailored to SOFF needs. It would include (a) CHD assessments; (b) technical advice to beneficiary countries and to SOFF Implementing Entities on the development of the GBON national contribution and the integration of SOFF into projects funded by the Implementing Entities, and (c) hands-on support during the investment and compliance phase as outlined in section 2.3.

Major development partners (Multilateral Development Banks and selected UN organizations) would be expected to become SOFF Implementing Entities for the investment phase. All Implementing Entities would need to be or become members of the Alliance for Hydromet Development. During the SOFF investment phase, Implementing Entities would draw on SOFF financial and technical resources to support countries in closing the GBON infrastructure and institutional gap. Implementing Entities would be expected to blend SOFF funding with their own concessional and non-concessional resources and to link SOFF with larger projects addressing other areas of the hydromet value chain and climate adaptation and resilience. The role of the Implementing Entities would end once the outputs of the investment phase are realized.

4. SOFF country demand and international support

The creation of SOFF has been a multi-partner endeavour since the beginning. Since July 2019, SOFF concept and design has been developed through multiple workshops

1 Resolution 74 (Cg-18) (2019). Closing the capacity gap: scaling up effective partnerships for investments in sustainable and cost-efficient infrastructure and service delivery. Available at: https://library.wmo.int/doc_num.php?explnum_id=9827

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and working groups, bringing together many stakeholders, including over 30 international organizations. The outcome of this process was presented at the first forum of potential funders that took place on the 24 March 2021. A report was shared ahead of the meeting to inform the discussion.

The first SOFF potential funders’ forum, co-hosted by the WMO President and Secretary-General, was attended by more than 100 participants, including delegations from 31 potential funders, 28 country delegations and one delegation each from the European Commission, the Nordic Development Fund and the Bill and Melinda Gates Foundation. Twenty multilateral and partner organizations participated as observers, including all members of the Alliance for Hydromet Development. Twenty-three statements of support were delivered by representatives from beneficiary countries and international development and climate finance institutions. Strong SOFF support was voiced by international partners, including the Managing Director of the International Monetary Fund, heads of members of the Alliance for Hydromet Development including Green Climate Fund and Global Environment Facility, the Director General of ECMWF, and a joint statement of ECMWF, EUMETSAT and EUMETNET. The outcomes of the first potential funders’ forum were captured in the summary of the chairperson.

Following the first forum, the SOFF team has continued to engage with potential funders, responding to questions raised during and after the meeting, while utilizing the feedback received to refine the design of the facility. This INF document reflects the contributions and views obtained through this process and various other tracks of an extensive SOFF consultation process with beneficiary countries, scientific and technical partners, climate and development finance institutions, and the private sector.

Beneficiary countries have been consulted throughout the process, including through the WMO Regional Associations and their Presidents, and have shaped the design of the Facility.

The African Group of Negotiators emphasized the importance of observations for Africa. The African Heads of State launched the Africa Adaptation Initiative with the aim of closing the adaptation-financing gap. This requires strengthening the basic weather and climate observations infrastructure and capacity to better inform decision-making.

The Group of LDCs highlighted in multiple UNFCCC submissions that the persisting weather and climate data gaps are hindering their members’ efforts to act effectively and proactively on adaptation. Closing the gap for essential weather and climate observations in these countries is a priority and requires dedicated, predictable and long-term financial and technical support. The Group appreciated the outcome of the first potential funders’ forum and reiterated their strong support to establish SOFF at COP26.

The Alliance of Small Island States stated that the existing data gaps are undermining the global understanding of climate-related risks, the foundation on which early action decisions are made. They firmly advocated for the establishment of SOFF to increase observations in the SIDS and improve the quality of forecast, to reduce the losses and damages that cost these islands so much. The Prime Minister of Fiji called on development partners to back the SOFF as it supports the global campaign to build a more resilient world.

SOFF was also discussed at the Ministerial Conference on Meteorology (AMCOMET), in March 2021. The African Ministers in charge of meteorology adopted the Integrated African Strategy on Meteorology. In their statement, the ministers noted with concern that the existing gaps in observation and corresponding infrastructure in Africa limit the capacity to provide meteorological services and hamper adaptation efforts. They urged bilateral and multilateral development partners to consider funding SOFF.

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The private sector has been engaged through a working group on SOFF benefits for the insurance sector and consultations with the association of Hydro-Meteorological Equipment Industry (HMEI). Initial Discussions with HMEI are focusing on private sector experience in stablishing, operating and maintaining basic observing systems in SIDS and LDCs and the many failures private sector operators have seen. In addition, options are explored for public-private business models for operation and maintenance of basic observing systems supported by SOFF.

The Crisis Lookout Initiative supports the creation of the SOFF with a request to the G7. The Crisis Lookout initiative, spearheaded by the UK-based Centre for Disaster Protection, aiming at drastically changing the way we prepare and responds to disasters, presented a solutions paper to the G7, recommending G7 countries to support the SOFF.

5. Roadmap to UNFCCC COP26 and beyond

Political momentum has been building up on the road to UNFCCC COP26Secretary-General António Guterres has called for a 'breakthrough' on adaptation efforts to protect the world and the most vulnerable from climate impacts, especially LDCs and SIDS. COP26 represents a critical milestone to scale up the world's action on adaptation and resilience. The Leaders' Dialogue on the Africa COVID Climate Emergency in April 2021 stressed the once-in-a-generation opportunity to 'build forward better' from the COVID crisis, focusing on climate adaptation. At the Summit, the African Development Bank and the Global Centre on Adaptation launched the Africa Adaptation Acceleration Program to implement the African Union's Africa Adaptation Initiative vision. Within this context, through a joint effort of multiple SOFF stakeholders, SOFF is increasingly recognized as being foundational for effective adaptation and resilient development by providing the critical observational platform on which the hydromet value chain must be built.

At the UN High-Level Political Forum in July 2021, the Alliance for Hydromet Development will launch its first Hydromet Gap Report. The Report will present the CHD as the common assessment tool of the Alliance, showcase the results of its initial application (“road-testing”) in several countries, highlight the importance of urgently closing the basic observations gap, and present the SOFF as the common commitment and priority of the Alliance.

In parallel, stakeholder consultations will continue. Public-private consultations will be organized with the support of the Varysian hydromet network. These include a general consultation to seek feedback from the Varysian network members; and a consultation linked to the Secretariat of the Pacific Regional Environment Programme (SPREP) event with focus on Pacific NMHS and the associated issues, including the lack of observational data. Additionally, public virtual consultations will be organized, and a call for feedback will give stakeholders the opportunity to provide comments and suggestions for final SOFF design.

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Two more potential funders’ forums are planned beyond the second Forum on 28 June 2021. The third SOFF potential funders’ forum is planned for late September 2021. At that event the further advanced SOFF proposal will be presented, and final feedback sought. In October, the World Meteorological Congress will discuss the new data policy, GBON and SOFF.

Provided Congress approval of the GBON technical specifications and a decision in support of the creation of SOFF, the fourth funders’ forum would take place late October 2021 where the final design of the Facility would be presented and funders’ pledges for contributions would be sought to establish the SOFF. The SOFF funding needs for its first five years of operations correspond to USD 400 million, mobilized in phased manner, with the aspiration to achieve GBON compliance in 67 SIDS and LDCs and provide readiness support to other OECD DAC development assistant eligible countries. Thereafter, an estimated USD 50 is needed on an annual basis to sustain GBON compliance in all SIDS and LDCs.

Immediately following the fourth funders’ forum, it is envisioned to legally establish SOFF by end-October. Once legally established, SOFF could accommodate contributions from funders. As the United Nations Multi-Partner Trust Fund (UNMPTF) has in place contribution agreements with all major donors, SOFF initial capitalization could take place by end-December 2021.

SOFF creation would be announced at a high-level event at the UNFCCC COP26, at a joint event between the Alliance for Hydromet Development and the initial funding partners.

Once a threshold for minimum initial contributions is reached, SOFF would be made operational. The financial threshold required to operationalize SOFF would be jointly agreed with the initial funders. The first step of operationalization would be the establishment and staffing of the SOFF Secretariat. The SOFF Secretariat would then prepare all basic documents for the functioning of the SOFF for decision at the first Steering Committee meeting, including for example the SOFF operational policies. Under this scenario, SOFF is expected to be “open for business” by mid-2022.

Figure 3. SOFF preparation timeline to UNFCCC COP26

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