Transcript Investment Plans - International Fund for China`s Environment

Zhihong Zhang
Senior Program Officer
June 10, 2011
Financing Needs to Deal with Climate Change
Additional investment needs in
developing countries, by 2030
Climate finance covers
additional costs and serves to..
Mitigation
$139—175 billion
Adaptation
$75—100 billion
“Baseline”
Private &
Public
Investment
… to catalyze
sustainable
investments
..enhance
capacity &
policy
… leverage
other sources
of finance 2
Source: World Bank, 2010
Financial Flows for Climate Action
in Developing Countries
Source: Atteridge et al. (2009). Bilateral Finance Institutions and Climate Change: A Mapping of Climate Portfolios, Stockholm Environment Institute.
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A growing menu of climate finance instruments
Adaptation
Mitigation
Pilot Program
for Climate
Resilience
Clean Technology
Fund
Carbon Funds
Special Climate
Change Fund
Global Facility for
Disaster Reduction &
Recovery
Forest Investment
Program
Carbon Partnership
Facility
Least Developed
Country Fund
Risk
Instruments
Scaling Up RE
Program for Low
Income Countries
Forest Carbon
Partnership Facility
Adaptation Fund
Global Environment
Facility Trust Fund
Global Environment
Facility Trust Fund
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Climate Investment Funds
Clean Technology
Fund (CTF): Finances
demonstration,
deployment, and
transfer of low
carbon technologies
Total commitment:
$4.3 billion
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Strategic
Climate Fund
(SCF): Targeted
programs to
pilot new
approaches and
scale-up:
Total
commitment:
$1.9 billion
Approved in July 2008 as an interim instrument, CIF have balanced governance with equal
representation from developed and developing countries
Structure
Clean Technology Fund
Strategic Climate Fund
Finance scaled-up demonstration,
deployment and transfer of
low carbon technologies
Targeted programs with dedicated funding
to pilot new approaches with
potential for scaling up
Investment Plans
•
•
•
Support country and regional
development strategies
Leverage financial products of
Multilateral Development Banks
Stimulate private sector engagement
$4.3 billion
Pilot Program
for Climate
Resilience
Forest Investment
Program
Mainstream
climate resilience
into core
development
planning
Reduce emissions
from deforestation
and forest
degradation
$1.9 billion
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Scaling Up
Renewable Energy
in Low Income
Countries
Initiate
transformational
change by use of
renewable energy
Design and
Operating Principles
•
Partnership among Multilateral
Development Banks (AfDB, ADB,
EBRD, IDB, and WBG) to support
mitigation and adaptation in a
coherent and integrated way
Multi-stakeholder with balanced
governance
Demonstrate scale and
transformation
Leverage public and private sector
Complementarity with other
partners at the country level
Sunset clause
•
•
•
•
•
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*exchange rates as of March 31, 2010
Pledges to date
US$ million eq.
Australia
137
Canada
96
Denmark
24
France
274
Germany
741
Japan
1,190
Netherlands
73
Norway
177
Spain
108
Sweden
83
Switzerland
20
United Kingdom
1,212
United States
2,000
Total
$6.1 billion
Clean Technology Fund
(CTF)
Purpose ―
To finance programs and projects for demonstration,
deployment and transfer of low carbon technologies
with significant potential for GHG emissions savings
Scale ―
$4.3 billion in concessional financing to help countries
buy down costs of public and private sector
investments in low carbon development
Governance ―
Trust Fund Committee: Australia, Brazil, China, Egypt,
France, Germany, India, Japan, Morocco, Nigeria,
South Africa, Spain, Sweden, Turkey, UK, and US
Observers: 4 civil society and 2 private sector, GEF,
UNDP, UNEP, and UNFCCC
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Measuring Success
•
•
•
Influence countries’ low carbon
development strategies;
Promote market transformation through
policy reforms, economies of scale,
enhanced competition and private sector
participation, and eventually savings in unit
abatement costs; and/or,
Realize broader employment,
business/industrial growth, environmental
and social co-benefits that contribute to
sustainable development.
Clean Technology Fund
(CTF)
Endorsed Investment Plans under
implementation
Accessing the CTF
•
ODA eligible with active
MDB country program
Colombia, Egypt, Indonesia, Kazakhstan, Mexico,
Morocco, Philippines, South Africa, Thailand,
Turkey, Ukraine, Vietnam, Regional (Algeria,
Egypt, Jordan, Morocco, Tunisia)
•
Investment plan
embedded in national
development plan
Other Investment Plans
•
Potential for GHG
Emissions Savings
•
Cost-effectiveness
•
Demonstration Potential
at Scale
•
Development Impact
•
Implementation Potential
•
Additional Costs and
Risk Premium
Module 1
Nigeria, Chile, India
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Investment Criteria
CTF
Investment Plans
CTF Investment Plans Endorsed as of March 31, 2010
Country
Colombia
Egypt
Indonesia
Kazakhstan
MENA CSP
Mexico
Morocco
Philippines
South Africa
Thailand
Turkey
Ukraine
Viet Nam
TOTAL
CTF
(US$
million)
Private Sector
Co-Financing
(US$ million)
150
300
400
200
750
500
150
250
500
300
250
350
250
1,060
636
1,100
535
1,290
2,318
800
1,100
540
1,380
170
230
1,010
Other CoFinancing*
(US$
million)
1,596
985
1,610
534
3,564
3,379
1,000
1,430
1,310
2,583
1,680
2,025
2,185
4,350
12, 169
23,850
Est.
Total
(US$
million)
2,806
1,921
3,110
1,269
5,604
6,197
1,950
2,780
2,350
4,263
2,100
2,605
3,445
Leverage Ratio
(CTF to other
sources of
financing)
1:18
1:5
1:7
1:5
1:7
1:11
1:12
1:10
1:4
1:13
1:7
1:6
1:13
Leverage
Ratio
(CTF funding/
Private Sector)
1:7
1:2
1:3
1:3
1:2
1:5
1:5
1:4
1:1
1:5
1:1
1:1
1:4
40,369
Avg. 1:8
Avg. 1:3
*Other sources of financing include MDBs, bilaterals, governments, other agencies such as the GEF and CCIG
Strategic Climate Fund
(SCF)
Purpose ―
To provide experience and lessons through scaled-up,
learning-by-doing programs in sectoral areas or by piloting
new approaches to low carbon development and climate
change
Scale ―
$1.9 billion+ through a range of financing: grants, loans,
credits, guarantees, and other support
Governance ―
Trust Fund Committee: Australia/UK, Bolivia, Canada,
Denmark/Switzerland, Kyrgyz Republic, Germany,
Guyana, Indonesia, Japan, Maldives, Netherlands,
Norway, Senegal, Tunisia, USA, Yemen + observers (4
civil society, 2 Indigenous Peoples, 2 private sector), GEF,
UNDP, UNEP and UNFCCC
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Measuring Success
Success is measured specific to targeted SCF programs
SCF: Pilot Program for
Climate Resilience (PPCR)
Purpose ―
To help highly vulnerable countries pilot and
demonstrate ways to integrate climate risk and
resilience into core development planning while
complementing other ongoing activities.
Pilot Countries
Bangladesh, Bolivia, Cambodia, Mozambique, Nepal,
Niger, Tajikistan, Yemen, Zambia -- 2 regional programs
in Caribbean (Haiti, Jamaica and OECS countries) and
South Pacific (Tonga, Samoa, PNG).
Scale ―
$945 million in pledges, mainly grants with option
to augment with IDA-like resources
Governance ―
Sub-Committee: Australia/UK, Bangladesh,
Canada, Denmark/Norway, Germany, Jamaica,
Japan, Samoa, Tajikistan, USA, Yemen, Zambia,
the Adaptation Fund Board + observers (4 civil
society, 2 indigenous peoples, 2 private sector, 1
rep. of community dependent on adaptation
approaches), GEF, UNDP, UNEP, UNFCCC
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Measuring Success
•
•
•
•
Increased capacity to integrate climate
resilience into development
Increased awareness of vulnerabilities
and potential impacts
Scaled-up investments for broader
interventions and programming
Improved coordination among
stakeholders
SCF: Forest Investment
Program (FIP)
Purpose ―
To support countries’ efforts to reduce emissions from
deforestation and forest degradation (REDD+) by financing
efforts to address the drivers of deforestation. REDD+
includes reducing emission from deforestation and forest
degradation, conservation, sustainable management of
forests and enhancement of carbon stocks.
Scale ―
$542 million in initial pledges
Governance ―
Sub-Committee: Australia, Brazil, Democratic Republic of
Congo, Denmark, Indonesia, Japan, Morocco, Nepal,
Norway, Romania, UK, and US; observers (2 civil society, 2
private sector and 2 indigenous peoples representatives),
FCPF, GEF, UNFCCC, UN-REDD
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Measuring Success
•
•
•
•
Effective REDD+ programs
Conservation or enhancement of
existing carbon reservoirs
Effectively address drivers of
deforestation and degradation
Effectively address economic
benefits and incentive systems
SCF: Scaling Up Renewable
Energy Program in Low
Income Countries (SREP)
Purpose ―
To pilot and demonstrate the economic, social and
environmental viability of low carbon development
pathways in the energy sector by creating new
economic opportunities and increasing energy
access through the use of renewable energy
Scale ―
$334 million in pledges for programs of capacity
building and investments in renewable energy
Governance ―
Sub-Committee: Armenia, Bangladesh, Japan,
Netherlands, Nicaragua, Norway, Solomon
Islands, Switzerland, Tanzania, United Kingdom,
United States, Yemen
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Observers: 4 civil society, 2 Indigenous Peoples, 2
private sector, Energy for the Poor Initiative, GEF,
UNDP, UNEP, UNFCCC
Measuring Success
•
•
•
Remove barriers to renewable energy
Lead to replication of renewable energy
investments
Increase installed renewable energy capacity in
a country’s energy supply
For More Information
ClimateInvestmentFunds.org
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