Transcript Sustainable Energy and Climate Change Initiative

Sustainable Energy &
Climate Change Unit
Wesly Ureña
Renewable Energy Expert
Sustainable Energy & Climate Change Unit
Infrastructure and Environment Sector
May 14, 2009
SECCI’s Operational Framework
As of January 1, 2009, SECCI became a Unit within INE
(ECC) with responsibility for:
Stand-alone & Mainstreamed Activities
Mainstreamed into:
Country programming (VPC)
Sector Work (VPS)
Projects (VPS, VPP)
Knowledge creation and dissemination
Innovation (e.g. Investment Grant)
SECCI’s Results by Strategic Pillars
1. RENEWABLE ENERGY AND ENERGY EFFICIENCY
18 TCs (US$10m) / 5 Loans (US$300m)
2. BIOFUELS
8 TCs (US$4.2m) / 4 Loans (US$310m)
3. CARBON FINANCING
5 TCs (US$2.8m)
SECCI’s Results by Strategic Pillars
(cont.)
4. ADAPTATION TO CLIMATE CHANGE
1 TCs (US$1m)
5. MULTI-PILLAR
6 TCs (US$3.1m) / 2 PBL Loans (US$500m)
Pillar 1: Renewable Energy & Energy
Efficiency: Strategic lines of action
• Assess RE/EE potential in sector and country programming
• Minimize policy barriers and establish incentives through policy
reforms
• Provide technical cooperation for project assistance & policy
lending loans
• Mainstream RE/EE in IDB pipeline and develop new RE/EE
projects
• Scale up new RE/EE technologies
• Examples
SECCI Pillar 1 Projects
Renewable Energy and Energy Efficiency
Peru: Support to Ministry of Energy for the development of biofuels
and renewable energy regulatory framework
Brazil: US$120M loan to wind turbine blade manufacturer for facilities
expansion
Ecuador: Support to textile company for expansion of small hydro
power plant and EE investment plan; both investments will be included
in subsequent IDB financing through private sector window
Central America: Energy efficiency programs for water utilities
programs, including investment plans and capacity building. A regional
EE methodology will be developed to be used by water companies
Caribbean: Assess potential for EE in hotel industry and microgeneration using renewable energy
Pillar 2: Sustainable Biofuels
Strategic lines of action
•
Viability of biofuels by country and region basis
•
Country level policy assistance for biofuels
•
Finance biofuel facilities and related feedstock, production and distribution
infrastructure
•
Financial risk re-assessment and dissemination of emerging technologies
•
Sustainability tool developed: Biofuels Sustainability Scorecard
(www.iadb.org/scorecard)
•
Examples
SECCI Pillar 2 Projects
Bioenergy
Biofuels Sustainability Scorecard
Launched Sept. 9th, www.iadb.org/scorecard
Consistent with principles and criteria of Roundtable of Sustainable Biofuels
Biofuels “Blueprints” for the region
Action plans including assessment of regulatory issues and legislation, fiscal
impacts analysis, technical feasibility studies, environmental and social issues
related to potential production
Plans completed for Haiti, Dominican Republic, El Salvador
Private Sector Financing
Companhia Nacional de Açúcar e Álcool (CNAA)
3 greenfield ethanol plants (420M liters/year of ethanol)
Co-generation capacity of 180MW
US$1.1 billion total investments
US$270 million IDB A-loan, US$350 million B-loan (commercial banks)
Pillar 3: Carbon Finance
Strategic lines of action
• Mainstream carbon finance in IDB pipeline of projects
• Develop “programmatic” CDM projects
• Re-assessment of transactions costs and risks related to supply
of CDM projects
• Strengthen LAC capacity to participate in carbon market
• Contribute to long-term sustainability of the carbon market
• Examples
SECCI Pillar 3 Projects
Increasing Access to Carbon Credits
Colombia:
Ecopetrol: pipeline of projects to reduce GHG emissions
Bancolombia: support the establishment of a “Low Carbon
Strategy” to support low carbon projects
Chile: development of a international competitive bidding to sell the
potential Verified Emission Reductions (VERs) associated with an
“efficient lightbulbs” housing program
Brazil: development of methodology to estimate CERs for São Paulo
subway for subsequent approval by UN
Pillar 4: Adaptation to Climate Change
Strategic lines of action
• Mainstream climate risk in country programming, sectors and
projects e.g. Climate change modeling, finance country-level
climate change vulnerability assessments, risk assessments, and
strategic identification of adaptation measures.
• Invest to reduce the vulnerability of urban and regional
infrastructure to climate risk. Identify and protect capital assets at
risk to climate change impacts. Include within natural disasters risk.
• Identify and develop adaptation pilot projects on a regional basis to
be submitted to the Climate Investment Funds (CIF)
• Examples
SECCI Pillar 4 Projects
Adaptation to Climate Change
Panama: Vulnerability and Adaptation Program
Chile: Economic Impacts of Climate Change on water
availability
FONTAGRO (Regional Fund for Agricultural Technology)
Adaptation of Productive Systems to Climate Change
Bolivia: Adaptation pilots on high-altitude micro-basins
NCAR Climate Modeling
Caribbean Community Climate Change Center (C5) Adaptation
strategies for Caribbean countries
Transition to Post –Kyoto
Climate Investment Funds (CIF)
Two Funds: Clean Technology Fund (CTF) and Strategic
Climate Fund (SCF)
World Bank (WB) as trustee, WB and Regional
Development Banks (RDBs) as implementing agencies
Purpose:
Support low-carbon and climate resilience investments until
the post Kyoto architecture is effective
Scale-up investments moving from projects to programs and
accelerate public and private investments
Amount: US$ 6.1 billion pledged for 2009/10
Timeframe: next 3-5 years
Mutual synergies and leverage with SECCI
Climate Investment Funds (cont)
Ministry Finance to request and lead joint programming
with World Bank to develop country investment plan
Further development of proposed projects/programs – with
up to US$ 1 million grant from CTF
Project preparation to follow IDB procedures
INE/ECC coordination role
Induce shift in IDB lending portfolio to low carbon
technologies and climate resilience
CIF concessional finance to leverage and be blended with
IDB ordinary capital loans
Incremental cost of climate change element covered by CIF
Organization of the CIF Funds
Partnership Forum
– bring together finance, development and climate change communities
Strategic Climate
Fund
Trust Fund Committee
Clean Technology
Fund
CIF Admin Unit
and Secretariat
in WB
Trust Fund Committee
(8 contributors / 8 recipients,
WB and RDB)
(8 contributors / 8 recipient;
WB and RDB)
Pilot
Possible
Forestry
Program Investment
new
for
program
Program
Climate
small-scale
(FIP)
Resilience
renewable
(PPCR)
energy for
the poor
(SREP)
Subcommittee
MDB Committee:
World Bank,
RDBs and
the IFC
Observers from
organizations
with mandate to provide
investment in clean
technology, e.g. GEF, UNDP
Clean Technology Fund (CTF)
Donor countries contributing around $5 billion:
Australia, France, Germany, Japan, Spain, Sweden,
the UK, and the US
Recipient countries
Brazil, China, Egypt, India, Mexico, Morocco, South
Africa, and Turkey
Mexico and UK to serve as co-chairs
Strategic Climate Fund (SCF)
Donor countries contributing around $1 billion:
Australia, Canada, Germany, Japan, Netherlands, Norway,
Switzerland, and the UK
Recipient countries
Algeria, Bangladesh, Costa Rica, Indonesia, Kenya,
Thailand, and Yemen
Sub-Committee on the PPCR:
Australia, Bolivia, Germany, Japan, Maldives, Samoa,
Senegal, the UK and Yemen
Support Low–Carbon Investments
Mexico Investment Plan
Finance Ministry actively leading Investment Plan and
co-chairing the CTF TFC
IDB public and private sector activities within:
 Renewable Energy Program: for scaling up investment in wind
power and small-scale hydropower, leveraging Mexico’s Green
Fund and assistance with costs of interconnection costs and
technology development
 Energy efficiency program for scaling-up FIDE (phase II) – fore
replacement of inefficient motors in industry, and piloting
program for energy efficient Tortilleria-makers
Support for Climate Resilience
Pilot Program for Climate Resilience (PPRC)
10 possible pilots selected (7 countries and 3 regional pilots)
 In LAC: The Caribbean as a Region and Bolivia as a country
Objective
 Pilot new approaches for integrating climate-related risks within
country planning to demonstrate climate resilient development
 Provide policy and technical support to strengthen institutional
capacity for climate resilient development (grants)
 Concessional finance for investment in climate resilient
infrastructure
 Develop understanding and ensure lessons learnt are shared at the
regional and international levels