Transcript 4 billion

Taiwan – EBRD Investment Forum
Green Economy Transition and Technology Transfer
Gianpiero Nacci
Head of Resource Efficiency Investments
Energy Efficiency and Climate Change team
Taipei – 12 Sep 2016
Contents
GET - MAINSTREAMING GREEN INVESTMENTS
CLIMATE TECHNOLOGY TRANSFER
GET HIGHLIGHTS
2
The Climate Change Challenge
3
Green Economy Transition (GET) Context
International context
EBRD context
•
COP21 Paris : universal and ambitious
•
agreement to limit the increase in global average
temperatures to +2*C; also, “to pursue efforts”
to limit to 1.5*C
•
The Sustainable Development Goals, adopted in
2015, provided increased focus on
•
environmental sustainability
•
•
G7 Summit Leader’s Declaration in June 2015:
MDBs need to maximise their balance sheets in
delivering climate finance and helping countries
transition to low carbon economies
EBRD is at the forefront of efforts to channel
resources from existing and emerging global
climate finance funds to projects on the ground.
Special mandate to foster transition to marketeconomies – this implies that resources are
used efficiently; EBRD focus is placed at the
crossroad between sustainability and market
development and private sector support.
Legacy of big enterprises and utilities having
developed not reflective of costs and
environmental externalities
•
Several EBRD economies display some of the
highest energy and carbon emissions intensity
levels in the world
•
Imperative to increase energy security
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Existing and forecasted water stress in Central
Asia and SEMED countries
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Mongolia
Turkmenistan
Uzbekistan
Ukraine
Kazakhstan
Kyrgyz Rep.
Moldova
Bosnia & H
Kosovo
Serbia
Russian Fed.
Egypt
Belarus
Jordan
Estonia
Bulgaria
Macedonia (FYR)
EBRD CoOs
Azerbaijan
Tajikistan
Montenegro
Armenia
Poland
Georgia
Morocco
Romania
Tunisia
Slovakia
Turkey
Latvia
Slovenia
Croatia
Hungary
3.0
Greece
Lithuania
Albania
Cyprus
tones of CO2 emissions / US$ 1,000 of GDP
Carbon Intensity of EBRD economies
CO2 emission intensity of economies in the EBRD Region
EBRD CoOs
EU-28 average
2.0
USA
1.0
0.0
2013 energy-use related CO2 emissions per unit of GDP
(2005US$ at market exchange rates) from IEA
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GET - Mainstreaming Green Financing
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GET - Objectives
40%
€4 billion
€18 billion
2020 target for the share
of GET business in EBRD
ABI, from a current share
of 30%
Target annual EBRD
green business by 2020
Target cumulative EBRD
green business 20162020
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GET - Financing results to-date
€19.5 billion
1,080 projects
cumulative EBRD green
financing 2006 – Q12016
with green components
30%
of 2015 business
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GET - Physical impacts to-date
REDUCED
SAVED
REDUCED
80 million
43 million
1 million
tonnes of CO2/year
m3 of water /year
ton of waste/year
In 2006–2016
More than the annual
energy use related CO2
emissions of Romania or
twice those of Sweden
In 2013–2015 from 70
water efficiency projects
In 2013–2015 from 40
waste efficiency projects
Equivalent to a third of the
annual water consumption
of the population of
Prague
Various streams of
waste: metals, minerals,
agricultural waste
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GET - The Operational Model
Tailored financing instruments
Activities to address
GET gaps
• Energy and resource
audits to identify green
investments
• Integrated technical,
financial and marketing
teams to support client
banks in developing
sustainable energy lending
• Risk assessments related
to climate vulnerabilities
• Transition gaps and
market scoping studies
PROJECTS &
INVESTMENTS
TECHNICAL
ASSISTANCE
• Direct financing
• Indirect-financing via local banks (SEFFs)
• Investment grant support for climate
technology transfer
• Blended concessional finance so as to
overcome affordability and risk
perceptions
POLICY
DIALOGUE
Working with governments
• To address sustainability and
environmental market failures
• To strengthen the institutional and
regulatory context and create
optimum conditions for green
investments to take place
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GET – Drivers and directions
Short term
Ramp up of existing activities
• Applying the Bank’s best practices
and expertise to repeat projects to
address the significant transition gaps
• E.g. renewable financing, district
heating rehabilitation and Sustainable
Energy Financing Facilities (SEFFs)
Medium term
A broadening of the environmental
dimension
• Promotion of the sustainability of
natural resources use, pollution
prevention and reduction of the
degradation of ecosystems.
Enhanced innovation
• A focused transfer of technologies with
significant potential environmental
benefits which are currently not
deployed in the EBRD region.
Active use of private and public delivery channels
e.g. Buildings energy efficiency and water supply projects are best
addressed through the public channel
• Deepen its policy dialogue engagement to enhance the positive impact of
regulation and legislation
•
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Contents
GET – MAINSTREAMING GREEN INVESTMENTS
CLIMATE TECHNOLOGY TRANSFER
GET HIGHLIGHTS
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Climate Technology Transfer
The EBRD has put climate technology transfer at the very centre of its activities and has
developed specific products and processes to achieve this objective
Acceleration of green
investments to tackle
climate change
Green Economy
establishment in the
region as an engine for
growth
Create markets that
work with sustainability
at their core
Support companies in
improving their business
competitiveness
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SEFFs - Sustainable Energy Financing Facilities
•
Through Sustainable Energy Financing
Facilities (SEFF) the EBRD extends credit
lines to local financial institutions.
•
SEFFs are effective in reaching a
wide range of small and mediumsized business and residential
clients
Local financial institutions on-lend funds to
small and medium-sized businesses,
corporate and residential borrowers.
•
Finance is provided for energy efficiency and
small-scale renewable energy projects.
•
SEFFs establish project implementation
teams who support local financial institutions
and their clients.
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SEFFs - Results and impact
•
35 integrated programmes
developed in 24 countries
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More than 100 financial
institutions participating in
the energy efficiency
financing business
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Over 100,000 investments
implemented
•
Worth almost €4 billion
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Saving over 14 million MWh
equivalent each year
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Avoiding over 5 million
tonnes CO2/y emissions
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SEFFs - Examples of Technology Categories
Green economy
focus
Equipment examples
Agriculture and
food production
• Harvesters, tractors, working trailers
• Refrigeration technologies
• Food processing equipment
Commercial
equipment
•
•
•
•
•
Water
management
• Water pumps, pump controllers
• Trenchers, boring machines, underground boring equipment, etc.
• Containerised water treatment systems
Waste
management
• Specialised waste collection vehicles, compactors, separate waste
collection containers
• Waste sorting equipment, trammel and disc screens
Plastic injection machines, packaging equipment, etc.
Printing machines
Forklifts
Construction machines
Metal processing and machine building equipment
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FINTECC - Finance and Technology Transfer
Centre for Climate Change
Enabling transfer of higher efficiency technologies – identify clients with
potential to invest in higher resource efficiency technologies and supporting this
with investment grant resources to overcome risks and affordability barriers
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FINTECC – The business model
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Case -Studies
FINTECC
Case Studies
21 signed transactions, incentives worth USD 3.5m, supporting USD 45 m of GET investments.
Transactions benefiting were in Agribusiness, Manufacturing, and Real Estate
Workshop and showroom, ETC
Bear Beer, Kyrgyz Republic
Manufacturing facility, SEMED
Technologies considered:
tri-generation, clean burn boiler,
water recovery and re-use,
variable refrigerant flow cooling
system complemented with
BEMS, LED lighting.
Technologies supported:
CO2 recovery system in
fermentation and EMS.
Technologies supported:
Rooftop PV, Energy Storage,
Heat Recovery, Building
Insulation, EMS, ISO 50001.
Grant: USD 360,000
SEI investment: USD 6.3 mil
EBRD transaction: USD 13 mil
Grant: EUR 380,000
Grant: EUR 127,327
SEI investment: EUR 2.2 mil
SEI investment: USD 1.1 mil
EBRD investment: EUR 4.6 mil
EBRD transaction: USD 9.5 mil
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Green Logistics Programme
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Concessional finance to projects in the logistics sector with environmental/innovation
benefits: port modernization, short-sea-shipping, green fleet programmes, ITS, logistics
developments, etc.
 private sector investments in non-EU countries
 USD 15 mln Concessional facility by Global Environment Facility (GEF) –> to leverage
USD 150 mln from EBRD other investors
 L+75 bps provided for a portion of the loan, blended with EBRD market priced loan
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USD 1 mln Capacity Development programme funded by EBRD: MRV development,
professional training and Technical Assistance to identify and implement green investments.
Example: USD 20 mln for port modernization including green technologies (e.g. cold ironing) could
obtain USD 3 mln at L+75 bps from GLP and USD 7 mln at market loan price from EBRD. EBRD
could also provide TA for feasibility studies, training, MRV development, etc.
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Mainstreaming Resource Efficiency:
The Near Zero Waste (NØW) Programme
NØW Programme has four components to mainstream waste minimisation and material valorisation
within a circular economy:
Component 1:
Component 2:
Component 3:
Component 4:
Commercial +
Concessional
Financing
Technical support
for project
developers
Policy dialogue to
improve waste
management
practices
Awareness &
knowledge sharing
of relevant
technologies
• In Turkey, the waste sector contributes 9 per cent of
the country’s GHG emissions
• Support the development of the necessary
infrastructure to recover valuable materials
• Financing SMEs by developing a leasing mechanism
for upgrading recycling equipment
• Establishing a Waste Market Place
• Promote waste-to-energy as alternative to landfilling
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Contents
GET - MAINSTREAMING GREEN INVESTMENTS
CLIMATE TECHNOLOGY TRANSFER
GET HIGHLIGHTS
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Energy efficiency in agribusiness
Agricultural waste to energy, Ukraine
CLIENT
Astarta, the largest sugar producer in Ukraine.
PROJECT
Construction of a biogas plant at Astarta’s Globino
sugar plant, with the capacity to process 1,200 tonnes
of waste beet pulp per day. The biogas will be used for
steam and electricity production; the organic residues
will be used as fertiliser and for water recovery.
© CAEPC
FINANCIAL STRUCTURE
EBRD loan
of which GET
Total project value
EUR 9 million
EUR 9 million
EUR 9 million
TECHNICAL ASSISTANCE
€30,000, for energy audits, strategic assessment of
biomass residue optimisation, funded by the Regional
Energy Audit Programme for the Corporate Sector - EU
Neighbourhood Investment Facility.
EXPECTED IMPACT
• Energy savings: 6,400 toe/year
• Emission reductions: 20,000 tCO2/year
• Once the project is implemented, it will allow
Astarta’s sugar plant to decrease natural gas
consumption by 46% and water consumption by
10%.
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Industrial energy efficiency
Glass production, Turkey
CLIENT
Şişecam, one of the largest glass producers globally
and a long-standing client of the Bank.
PROJECT
• Turkish plant: finance for various EE measures,
including waste heat recovery and energy
management systems.
• Bulgaria plant: capacity expansion and EE measures
such as oxy-fuelling and waste heat recovery
systems.
• Russian plant: construction of a greenfield plant for
flat glass products in Tatarstan.
FINANCIAL STRUCTURE
EBRD loans
of which GET
EUR 90 million
EUR 90 million
Total project value
EUR 290 million
© CAEPC
EXPECTED IMPACT
• Emission reductions: >400,000 tCO2e/year
• Working towards ISO 50001 certification for Energy
Management Systems
• Enhanced reporting under the Carbon Disclosure
Project and the Global Reporting Initiative
TECHNICAL ASSISTANCE
In 2012 five plants were audited with more than EUR
112,000 of donor support from Italy and Spain.
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Resource Efficiency
Recycling Steel Dust, Turkey
CLIENT
• Befesa Silvermet Iskenderun Celik Tozu Geri
Donusumu A.S. (BSI) was established in Turkey and
operates a steel dust recycling plant in Iskenderun.
• BSI is fully owned by Befesa Silvermet Turkey S.L.
(“BST”), a 51%-49% joint venture organised in Spain
between Befesa Zinc S.A.U, Europe’s leading recycler
of steel waste, and Silvermet Inc, a Canadian
company that has been developing the EAFD
recycling business in Turkey since 2005.
PROJECT
• The project will increase the installed electric arc
furnace dust (EAFD) treatment capacity by more than
80 per cent to 110,000 tons/ year.
• The loan will support a commercial solution for
recycling zinc from steel dust instead of producing it
from limited natural resources
FINANCIAL STRUCTURE
• EBRD loan
USD 20 million
Source: Silvermet Inc.
© CAEPC
EXPECTED IMPACT
• Primary energy saving > 138,889 MWh
- energy consumption reduced by 60% after
investment
• Water saving: 80k tpa
- water consumption reduced by 45% after
investment
• Recovery rate of zinc is expected to increase by 30%
• Avoided Zinc extraction > 150k tpa
• Production yield will increase by 30% reaching 89%
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Sustainable buildings
Resource efficiency in retail, Jordan
CLIENT
A private shareholding company incorporated under the
laws of Jordan and majority owned by United Real
Estate Company
PROJECT
Support of the completion of a retail and entertainment
centre anchoring the Abdali Urban Regeneration Project
(AURP) in Amman, with a special emphasis on resource
efficiency improvements and sustainability
FINANCIAL STRUCTURE
EBRD loan
 of which GET and GET
USD 80 million
USD 41 million
TECHNICAL ASSISTANCE
• the identification of energy and resource efficiency
technologies
• a
training on sustainability certification and
certification for buildings (planned)
© CAEPC
EXPECTED IMPACT
• Energy savings > 19,200 MWh/year
• Emission reductions: 22,800 tCO2/year
 Of which district heat and cooling energy:
6,000 t CO2e/year
• Water savings: 2,400 m3/year
GET ELEMENTS
Water
• Rain water harvesting
efficiency • Grey water use
• Water saving techniques
Material
efficiency
•
•
Use of GGBS* concrete
Use of recyclable plastic materials,
local stone, and recycled steel.
* Ground-granulated blast-furnace slag (GGBS) is a cement substitute,
manufactured from a by-product of iron and steel-making.
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Sustainable buildings
Residential SEFF, Bulgaria
CLIENT
Six Bulgarian local banks
PROJECT (FACILITY)
In 2005, the Residential Energy Efficiency Credit Line
(REECL) was established to offer credit lines to six
Bulgarian local banks. They on-lent to residential subprojects, including insulation, heating, and integrated
renewables.
© CAEPC
In 2011, REECL extended the focus to sub-projects with
housing associations, with the support from newly
introduced legislation.
FINANCIAL STRUCTURE
In 2005
EBRD credit lines
KIDSF grant
EUR 44 million
EUR 13 million
In 2011
EBRD credit lines
KIDSF grant
EUR 40 million
EUR 10 million
EXPECTED IMPACT
• Energy savings: 172,000 MWh/year
• Emission reductions: 200,000 tCO2e/year
• 60,000 refurbished individual housing units and 165
refurbished housing associations
• Financial savings: EUR 300/household per year
(under REECL 1)
TECHNICAL ASSISTANCE
The grants, funded by KIDSF were used for Technical
Assistance and incentive payments and first loss cover
for loans to housing associations.
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Climate Resilience
Qairokkum Hydropower plant, Tajikistan
CLIENT
State Unitary Enterprise KMK, under a sovereign
guarantee from the Republic of Tajikistan
PROJECT
Financing for rehabilitation of two units at the
Qairokkum hydro power plant. This will increase
capacity of the plant from 126MW to 142MW, increase
the safety level and strengthen the plant’s resilience
against the projected impacts of climate change.
ADAPTATION COMPONENT
• Rehabilitation of hydro power plant to make its
operation more climate-resilient
• Climate resilience built into the design of the
upgrade by modelling future hydrology outcomes
under a range of climate change scenarios
• Turbine upgrade and spillway capacities adjusted to
optimise power generation and safety across the
range of projected hydrological conditions
FINANCIAL STRUCTURE
The EBRD’s credit line
The CIF PPCR* funds
 Loan
US$10 million
 Grant US$11 million
Technical Cooperation grants
Total project value
 of which GET adaptation
 of which GET mitigation
US$39.6 million
US$50 million
US$21 million
US$4.7 million
US$75.7
million
© CAEPC
US$16.2 million
* The Climate Investment Funds (CIF) Pilot Programme for Climate
Resilience (PPCR)
TECHNICAL ASSISTANCE
US$4.7 million of TC-dedicated funds were provided by
the EBRD’s Special Shareholder Fund, the government
of Austria and the UK. This amount was mainly used for
climate resilience skills transfer to the client.
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Efficient lighting
Capacity building support to EPC, Croatia
•
Intervention: Replacing more than half of
the approx. 1,700 lights in the town of
Novigrad (population 2,600) in Istria, with
LED lights.
•
Type of contract: Energy performance
contract, with payments linked to savings
•
Costs: total capex of €411,000, with an 8
years payback based on energy and
maintenance savings
•
Financing sources: 35% grant-funded by
Croatia’s Environmental Protection and
Energy Efficiency Fund and
65% financed by the ESCO company
selected following competitive tender
•
Savings: 54% of energy consumption and
45% of energy and maintenance costs,
annually
•
Environmental impact: 112 tonnes of CO2
estimated annual greenhouse gas emission
reductions from electricity savings.
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Resource efficiency
PVC recycling, Turkey
CLIENT
The second largest PVC profile manufacturer in
Turkey.
PROJECT
Supporting the company in constructing a new
state-of-the-art plant and in enhancing its plastic
waste recycling capabilities, both of internally
produced waste streams as well as from external
collection.
INVESTMENT PLAN
EBRD loan
of which green finance
Concessional parallel loan
from the Clean Technology Fund
€ 25 million
€ 7 million
€ 1 million
RESOURCE AUDIT
Audit funded by the Government of Spain
recommended innovative measures:
trigenertaion, solar photovoltaics, improved
automation and control, high efficiency motors
and drives and wastewater treatment. Most
measures have payback times between 3-5 years.
IMPACT OF PROJECT
• The company will increase plastic waste recycling
rates from below 10% currently to over 15%
• Estimated plastic recycled of 800 tonnes per year
• Estimated emission reductions of 22,000 tCO2/year
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Promoting Innovation
Innovation vouchers scheme, Serbia
TC activity to help structure an innovation vouchers scheme for Serbia focused on resource
efficiency (energy, water and material efficiency) technologies.
The scheme will support Serbian private sector to manufacture and deploy state-of-the-art
resource efficiency technologies and help Serbian industry become more competitive through
lowering its cost base and helping it meet international standards.
Empirical evidence from EBRD activities in the country shows that financial barriers (e.g., high
upfront costs, or high financing costs) are the biggest barrier to the uptake of resource
efficiency technologies. This is followed by knowledge and technical barriers: most firms have
limited awareness and capacity to implement new advanced resource efficiency technologies.
Within the resource efficiency technology sector, Serbia has under-developed local supply
chains. Currently, many technologies have to be sourced from other countries, with associated
incremental costs for local companies. Supporting the development of local companies in
resource efficiency technologies will help develop local supply chains, lower costs and increase
competition.
From the EBRD’s point of view, innovation vouchers present a mechanism where a large
number of EBRD clients can be supported by a variety of providers in a manner that is not
administratively burdensome.
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Key messages
• The Green Economy Transition is a key EBRD cross-sectoral strategy.
It builds up on 10 years of implementing the Sustainable Energy Initiative
and the Sustainable Resource Initiative
• Green investments are good for business!
Think: efficient energy use, water savings, cost savings, waste minimisation,
environmental compliance!
• Transfer of Advanced Technologies
Helps creating resilient and competitive businesses and promote the
development of skills and dedicated value chains
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Contacts
Gianpiero Nacci
Head of Sustainable Resource Investment
Energy Efficiency and Climate Change
Email: [email protected]
EBRD, One Exchange Square
London, EC2A 2JN
United Kingdom
www.ebrd.com
EBRD - SEFF
www.seff.ebrd.com
www.fintecc.ebrd.com
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