Accessing financing from the Green Climate Fund

Transcription

1 GREEN CLIMATE FUND Accessing financing from the Green Climate Fund Africa Investment Exchange Power & Renewables Youssef Arfaoui

2 The Green Climate Fund? New multilateral fund for climate finance Operating entity of the financial mechanism of the UNFCCC, CoP16 Agreed by the 194 Parties to the UNFCCC Provide support to developing countries to address: a. Mitigation reduce GHG b. Adaptation adapt to climate change impact GCF Headquarters in Songdo, Republic of Korea

3 Our Vision Promote a paradigm shift towards low-emission and climate-resilient development Induce a change in the daily decisions investors and consumers make

4 Architecture Board Board Approval 24

5 Resources Allocation $10.2 billion in pledges Approx. $6.0 billion (60%) in signed contributions ( as on 5th Oct) Mitigation (50%) 50/50 split between adaptation & mitigation Geographic balance Adaptation (50%) SIDS, LDCs & Africa (at least half) 50% of adaptation resources for SIDS, LDCs and African states

6 Home Financing structures Project, Programme Beneficiary Financial instruments Accredite d Entity Grants Project, Programme, Company, etc. Project, Programme, Company, etc. Project, Programme, Company, etc. *SFS refers to the Fund s specialized fiduciary standards. 22

7 8 Strategic Results Areas

8 Home The Fund s Six High-level Investment Criteria* Impact potential Paradigm shift potential Sustainable development potential Responsive to recipients needs Promote country ownership Efficiency & effectiveness Potential of the programme/project to contribute to the achievement of the Fund's objectives and result areas Degree to which the proposed activity can catalyze impact beyond a one-off project or programme investment Wider benefits and priorities, including environmental, social, and economic cobenefits as well as gender-sensitive development impact Vulnerability and financing needs of the beneficiary country and population in the targeted group Beneficiary country ownership of and capacity to implement a funded project or programme (policies, climate strategies and institutions) Economic and, if appropriate, financial soundness of the programme/project, and for mitigation-specific programmes/projects, cost-effectiveness and co-financing * The Fund has adopted its initial activity-specific sub-criteria and assessment methodologies. 8

9 What s New? Direct Access Enhancing DA Maximum Country ownership Public & Private Sector Emphasis Wide Range of financial Instruments : Grants, Debt, Equity, Guarantee; Scale Climate Finance; Accreditation diverse partners private, National, Inter., MDBs, etc.. Balanced Governance; Balance Mitigation & Adaptation.

10 Fit-for-Purpose - Accreditation Mandate & track record Alignment with Fund objectives At least 3 year of operations Project size Micro (>10mn) Small (10-50mn) Medium (50-250mn) Large (>250mn) Fiduciary functions Basic, Specialized Shapes how the entity will operate using the Fund s resources (e.g., grants, concessional loans, equity, guarantees) Environment & Social risk category A (high) B (medium C (low)

11 Make Best Investments Viable.with the Least Possible Concessionality Without the Fund With the Fund High Upfront Capital; Buy-down Upfront Cost; Insufficient revenues; Cash Flows Eased; Excessive Risk Higher Risk Tolerance.

12 Private Sector Facility Areas of Priorities On & Off Grid Low-Emission Energy Public Transportation Waste & Water Management Water -Bus, Rail, Metro and Bike Urban Energy Smart Buildings, Companies & Cities -Buildings -Traffic Systems -Public Lighting -Industry -SMEs -Homes -Waste-to-Energy -Waste Recycling -Water Treatment Securities Agriculture -Irrigation -Land and Water Efficiency -Crop Diversification Rural Forestry -Pulp and Paper Forest Farms -Eco Tourism Investments

13 Current Updates

14 Funding Proposals received 37 proposals totaling USD 1.5 billion MUSD MUSD

15 Funding Proposals submitted to Board 8 proposals totaling USD 168 million

16 Proposal Approval Process Funding Proposal Review

17 Strengthening Performance against Investment Criteria 1) Climate impact potential - Use a robust methodology to calculate emission reductions or number of beneficiaries. - Demonstrate evidence of climate-related impact. 2) Long term sustainability - Improve viability of economic activities. - Duly consider O&M plan and its cost coverage. 3) Efficiency and effectiveness - Crowding in other sources of funding (for mitigation and private sector projects).

18 1) Gender policy Enhancing Consistency with GCF Policies - Conduct gender assessment and identify impacts and livelihoods opportunities for women. - Disaggregate expected results by gender. 2) Logic framework - Strengthen cause-effect relation to remove barriers. - Narrow down scope of activities, more focused. 3) Risks - Solidify risk mitigation measures to reduce risks.

19 GREEN CLIMATE FUND Thank You Contact us at: