Transcript Results Based Finance for Mitigation the Future Carbon Fund

Results Based Finance for Mitigation
The Future Carbon Fund way !
Asian Development Bank
Asian Development Bank
An Introduction
Asian Development Bank
An Introduction
ADB Climate Finance
(2015)
By Sector
By Region
Total Climate Finance: $2.648 billion
Mitigation: $2.367 billion
Adaptation: $281 million
Note: In addition, external resources ($239 million) and technical assistance ($29.5 million) to climate support.
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Carbon Market Program
Capacity
Development
Trust Funds
Technical
Support
Facility
(TSF)
Asia Pacific
Carbon Fund
(APCF)
Future Carbon
Fund
(FCF)
Japan Fund for
the Joint
Crediting
Mechanism
(JFJCM)
Capacity
Development 2006
onwards
Carbon Finance
2007-2014
KP-1
Carbon Finance
2009-2021
KP-2
Carbon Finance
2014 onwards
Result Based Finance
Carbon Market Program
Turning Cash Flow into Financing
Participants - Future Carbon Fund
Future Carbon Fund


Establishment:

Commenced operations in 2009

Funding commitments of $115 million

Fund Participants: Government of Finland, Swedish Energy Agency,
Participatie Maatschappij Vlaanderen NV (PMV) for Flemish Region of
Belgium, Republic of Korea, POSCO and Eneco Energy Trade
Status:

Portfolio of 37 CDM projects as of 31 August 2016

Contracted to purchase more than 10 million CERs

Well-diversified project portfolio including 1.2 GW of Renewable
Energy Capacity projects

Projects located in 12 countries in Asia and the Pacific, including 4
Least Developed Countries and 2 Small Island Developing States
Unique Features
FCF Portfolio
By Project Types
(CER Volume)
Hydro
(>20MW) LDCs
Hydro
(>20MW)
Others
Transport
Energy Efficiency
1%
7%
Waste
Management
5%
10%
7%
By Country
(CER Volume)
Hydro (≤
20MW)
7% 1%
Solar
28%
10.50
Million
CERs
IND
BAN
NEP
SRI
5%
FJI
1%
PNG
2%
PHI 1% 1%
CAM
1%
2%
37%
10.50
Million
CERs
13%
THA
Geothermal
20%
22%
Wind
7%
12%
Biomass/
Biogas
BHU
10%
INO
PRC
Result based Finance - FCF
Volume of CERs
(Million)
12
10.44
8.00
6.41
6
4.49
4
3.19
2
70
0.97
0.04
2013
2014
2015
2016
2017
2018
2019
50
50.16
40
39.33
2021
53.57
56.37 57.55
44.40
31.29
30
20
0
2020
Disbursement
60
10
10.50
9.35
8
0
Value of CERs (USD
Million)
Delivery of CERs
10
18.19
20.25
7.67
0.80
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Case Study
Kinoya Sewerage Treatment Plant GHG Emission
Reduction Project, Fiji
(UNFCCC Ref. # 4552)
Project Location
Site Location
Kinoya, Suva City,
Viti Levu, Fiji
Arial view of the Project
Biogas Digester
and
Flare System
Project Description
The Project involves the augmentation and rehabilitation of the Kinoya Sewerage
Treatment Plant (KSTP) located close to the capital city Suva, on Viti Levu Island.
The Project aims to recover methane generated by the anaerobic decomposition of
organic matter in the sludge of an existing sewerage treatment plant. The Project
treats appx. 472 cubic meters per day of wet sludge.
It introduces methane recovery and flaring system to the existing and new
anaerobic sludge treatment units (anaerobic digesters). The Project is a first-of-itskind methane recovery and flaring activity in Fiji.
The Project is developed by the Water Authority of Fiji under the Ministry of
Infrastructure and Transport, Govt. of Fiji.
Project Objective
The Project develops and expands water supply and sewerage treatment systems in
Suva urban areas of Fiji.
The Project contributed in human and economic development in Fiji through the
development of water supply and sewerage services in the Suva urban areas. It
improved living standards in the Suva area, particularly for the urban poor.
Being the first methane capture and combustion project in Fiji, it sets an example as
a clean technology demonstration model for existing and new wastewater
treatment plants in the country.
The Project was registered with the UNFCCC on 03 May 2011 and expected to
generate over 22,000 CERs annually.
Project Impacts
The Project avoids venting of methane into the atmosphere resulting in
environment protection in the region and reducing global GHG emissions.
The Project contributed to improve local environment and hygiene by eliminating
obnoxious odors and air pollution, thereby improving the living and working
conditions for the local communities.
The Project has contributed in reduction of water borne diseases leading to
reduced costs due to less expenditure on health.
The Project has improved access to sustainable water supply and sewerage services
in Suva urban areas of Fiji.
ADB’s Support for the Project
ADB provided funding for the development of the project through a financing
Facility
FCF has purchased approximately 160,000 Post-2012 CERs to be generated
from the Project to be delivered between 2013 and 2020
ADB’s Technical Support Facility has provided CDM related technical assistance
to the Project including preparation of PDD, facilitating validation, registering
with UNFCCC and post-registration monitoring of CDM Project
ADB is providing ongoing capacity development support to manage the CDM
project
Results Based Finance – Lessons Learned
GHG emission reduction activities require financial incentivisation
Carbon finance an effective stream to achieve sustainable development
Project developers highly value assurance on the quantum & timing of
carbon finance
Carbon finance needs to be complemented with capacity development
support
Key to success - strong support of Fund Participants and engagement with
project developers
Thank you
V.K. Duggal
Senior Climate Change Specialist
Fund Manager - Future Carbon Fund
Sustainable Development and Climate Change Department
Asian Development Bank
Tel (632) 632-5937 [email protected]
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