Transcript Preparing technology transfer projects for financing

Preparing technology
transfer projects for
financing
Bert van der Plas
UNFCCC
UNFCCC workshop on Technology Needs Assessments
Bonn, 1 – 2 June 2011
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Overview
• Technology transfer under the UNFCCC
• Technology Transfer framework
• Innovative options for financing the development and
transfer of technologies
• Implementing results of TNAs
• Preparing project proposals for financing
• Training programme on preparing projects for
financing
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Technology Transfer under the UNFCCC
•
Technology transfer guided by Article 4.5 of the Convention
“The developed country Parties … shall take all practicable steps to promote,
facilitate and finance, as appropriate, the transfer of, or access to, environmentally
sound technologies and know-how to other Parties, particularly developing country
Parties, to enable them to implement the provisions of the Convention…”
•
Milestones
– COP 7
• Framework for meaningful and effective actions to enhance the
implementation of Art. 4.5 of the Convention (“Technology Transfer
framework”) adopted
• Expert Group on Technology Transfer (EGTT) established
• Provide financial support to technology transfer activities through GEF
(climate change focal area and special climate change fund)
– COP 13
• Mandate EGTT extended
• Enhanced technology transfer framework adopted
• Technology one of the building blocks of the Bali Action Plan
– COP 14
• Poznan Strategic Programme on technology transfer adopted
– COP 16
• Technology Mechanism established
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Technology Transfer framework
• Five key themes and areas of work
– Technology needs and needs assessments (TNAs)
– Technology Information
– Enabling environments
– Capacity building
– Mechanisms
• New areas of work
– Innovative options for financing the development
and transfer of technology
– Technologies for adaptation to climate change
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TNAs | What are main barriers to technology transfer identified by country?
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Implementing TNAs | What are main opportunities for financing the implementation of TNA
findings?
•Trust Fund
•SCCF
•LDCF
•Poznan strat. programme
Adaptation Fund
FINANCIAL
MECHANISM (GEF)
CDM/JI
BILATERAL
• ODA
• Export Credit
Agencies
Convention and KP
Public-privatepartnerships
PRIVATE SECTOR
MULTILATERAL
• World Bank and regional
development banks
• UNEP, UNDP, UNIDO
• EU COMMISSION
National
sources
• Subsidies
• Domestic private investment
• Foreign Direct Investment
• Private equity
• Clean tech and carbon funds
• Voluntary carbon market
• Philanthropy
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Innovative options for financing the
development and transfer of technology
•
•
Purpose: Improve access to financing for technology transfer projects and
programmes both from public and private sources
Activities:
– Workshops on innovative financing
– A ‘disconnect’ exists among development professionals,
entrepreneurs who identify projects and those who provide
resources (services and funding)
– Many ‘fit for purpose’ tools and many general ‘how-to’
instructions but there exists a need for a more complete,
accessible, balanced, process oriented and modular guide to
preparing and presenting proposals
– UNFCCC Guidebook on preparing technology transfer projects for
financing (“Practitioners’ guide”)
– Hands-on training on preparing project proposals for financing
– Private Financing Advisory Network (PFAN)
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Implementing results of TNAs
TNA’s
Project ideas
ENABLING ENVIRONMENT
Technical assistance:
TT:CLEAR
• Practitioners guide
• Training and coaching
Project financing proposals
Matchmaking
• Helpdesk
Financial assistance:
• Public (multilateral, bilateral)
• Private
Financial closing
• Project finance platform
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Preparing project proposals for financing
Typical proposal problems:
• Incomplete or Imbalanced: “Long” on one kind of
information and “short” on other balancing information
• Misdirected: send to wrong entity
• Non-responsive: fails to be customized to the party to
whom it is sent
• Terminology gap: hard to understand
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Training programme on preparing projects for financing
•
Mandate
–
•
COP 13 requested the secretariat to coordinate the implementation of a
regional training programme on project preparation…with the participation of
relevant international organizations and initiatives
Objectives
–
Improve access to financing for environmentally sound technology (EST)
projects to mitigate and/or adapt to climate change
–
Support efforts to implement the results of TNAs carried out by developing
countries within the UNFCCC process
–
Strengthen the capacity of project developers in developing countries in
preparing project proposals on ESTs that will meet the standards of financial
providers
–
Improve the quality of project proposals from developing countries related to
ESTs to mitigate and/or adapt to climate change.
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Training programme on preparing projects for financing
• Scope
– Target group: project developers in developing countries and relevant stakeholders,
including international and national financial providers
– Special attention to financial aspects of preparing and presenting projects related to
ESTs
– Focussed on projects related to ESTs both from public and private sector
– Attention was given to the transfer of ESTs to mitigate climate change and to adapt
to the impacts of climate change
• Approach
– Collaborate with international organizations and initiatives (GEF, UNEP, UNIDO,
UNITAR, CTI)
– Build on existing training material (practitioners guide, etc.)
– Staged approach: Training of Trainers followed by regional training workshops
– Practical and hands-on: use real project proposals as basis for group exercises
– Targeted at project developers and financial providers
• Training activities: Training of trainers workshop followed by three regional workshops
for Africa, Latin America and the Caribbean, and Asia and the Pacific in 2009 and 2010
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Training programme on preparing projects for financing
Building blocks
Proposal
What If? To Whom?
Base Case
What?
•
•
Where?
Who?
What?
Product, service,
technology, client
Where? Location, market,
operating and regulatory conditions
•
Why? Financial, social,
environmental, market, growth
How?
How? Status, milestones,
schedule, costs, revenues, grants,
loans, investment BASE CASE
•
What if? Schedule changes,
output and cost variances, key person
events
Who? Champion, owners,
sponsors, team, approval bodies,
stakeholders
•
•
Why?
•
To Whom? Grant-makers,
Lenders, Investors, Specialized
Programs, Others
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Experiences and lessons learned
• Project preparation
– No single formula for preparing successful proposals
– Address financial structure at an early stage of project preparation
– Project preparation proves to be challenging
– Little assistance for ‘upstream’ preparation
– Lack of support for project preparation
• Funding opportunities
– Lack of awareness about funding opportunities for technology
transfer projects
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Follow-up
• SBSTA 33 requested the secretariat:
(a) To organize in French and Spanish training workshops on
preparing technology transfer projects for financing for non-Annex I
Parties, in collaboration with relevant international organizations and
initiatives;
(b) To coordinate, with the participation of relevant international
organizations and initiatives, the implementation of a pilot training
course combining online training with face-to-face training on
preparing technology transfer projects for financing, building on the
experiences and lessons learned from the regional training
programme on project preparation.
• Note: subject to the availability of resources.
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THANK YOU!
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