Climate Investment Funds: Financing Low-Emissions and Climate-Resilient Activities Accessing Finance for Green Growth and LEDS: An Asia LEDS Partnership Workshop Hanoi, March 12-14, 2014
CIF - BACKGROUND! The Climate Investment Funds (CIF) were established in 2008 to provide scaled-up climate financing to developing countries to initiate transformational change towards climate resilient, low carbon development.! The CIF has benefitted from 14 donor countries including: Australia, Canada, Denmark, France, Germany, Japan, Korea, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom and the United States of America.! Donor countries have pledged US$ 8 billion to fund investments in 48 countries and three regions.! CIF support is channeled through five multilateral development banks (MDBs): African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank and The World Bank Group.
CLIMATE INVESTMENT FUNDS (CIF) $8 BILLION $5.5 billion $1.3 billion $639 million $551 million Scaled-up demonstration, deployment, and transfer of low-carbon technologies in renewable energy, energy efficiency, and clean transport Mainstream resilience in development planning and investments Reduce emissions from deforestation and forest degradation, sustainably manage forests, and enhance forest carbon stocks Demonstrate economic, social, and environmental viability of renewable energy in low income countries Chile Colombia Egypt India Indonesia Kazakhstan Mexico Morocco Nigeria Philippines South Africa Thailand Turkey Ukraine Vietnam Middle East and North Africa Region (Egypt, Jordan, Morocco, Tunisia) Bangladesh Bolivia Cambodia Mozambique Nepal Niger Tajikistan Yemen Zambia Caribbean Region (Dominica, Grenada, Haiti, Jamaica, St. Lucia, St. Vincent and the Grenadines) Pacific Region (Papua New Guinea, Samoa, Tonga) Brazil Burkina Faso Democratic Republic of Congo Ghana Indonesia Lao People s Democratic Republic Mexico Peru Ethiopia Honduras Kenya Liberia Armenia Yemen Mongolia Maldives Mali Nepal Tanzania Reserve SREP pilots Pacific Region (Solomon Islands, Vanuatu) STRATEGIC CLIMATE FUND (SCF) $2.5 BILLION
CLEAN TECHNOLOGY FUND (CTF) PURPOSE To provide middle income countries with resources to explore options to scale up the demonstration, deployment, and transfer of low-carbon technologies in renewable energy, energy efficiency, and clean transport. FUNDING $5.5 billion pledged FINANCIAL LEVERAGE 1:9.2 DONORS Australia, Canada, France, Germany, Japan, Spain, Sweden, United Kingdom, United States IMPLEMENTATION AfDB, ADB, EBRD, IDB, and WBG, including IFC GOVERNANCE CTF Trust Fund Committee on which contributor and recipient countries are equally represented FINANCING Concessional financing, such as concessional loans; risk mitigation instruments (e.g., guarantees); equity; and technical assistance through grants OBSERVERS MDBs, Trustee, GEF, UNDP, UNEP, UNFCCC, European Investment Bank, and self-selected representatives of CSOs, Indigenous Peoples, and the private sector COUNTRY ELIGIBILITY Countries eligible for official development assistance and MDB assistance CTF COUNTRIES/REGIONS Chile, Colombia, Egypt, India, Indonesia, Kazakhstan Mexico, Morocco, Nigeria, Philippines, South Africa, Thailand, Turkey, Ukraine, Vietnam, Middle East and North Africa (MENA) Region, including Egypt, Jordan, Morocco, and Tunisia
CTF GOVERNANCE STRUCTURE Submit IP and report Endorses IPs Decisions Reports Guidance/ Decisions Supports/ Advises Supervise/ Disburse funds Reports Pledge/Commit Agreements Supports/ Advises Transfer of funds Reports Supports/ Advises Reports Coordinates/ Approve MDB programming budget
CLEAN TECHNOLOGY FUND (CTF) PROJECTS! 16 endorsed investment plans APPROVED CTF FUNDING BY SECTOR/TECHNOLOGY! A pipeline of 109 projects and programs, totaling $5.5 billion in CTF allocations! Expected to contribute toward 1.7 billion tons in CO 2 reduction! Funding for 57 projects approved for a total of $3.3 billion in CTF financing, which is expected to leverage $27.2 billion in co-financing and contribute toward 780 million tons of CO 2 reduction Renewable Energy/Energy Efficiency 7% Transporta:on 15% Energy Efficiency 20% Renewable Energy 59% Geothermal 7% Renewable Energy- Unspecified 12% Wind 9% Solar 30% * Numbers as of February 1, 2014
PILOT PROGRAM FOR CLIMATE RESILIENCE (PPCR) PURPOSE To help developing countries to integrate climate resilience into development planning and offer additional funding to support public and private sector investments for implementation. FUNDING $1.3 billion pledged FINANCIAL LEVERAGE 1:1.7 GOVERNANCE PPCR Sub-Committee with representatives from six contributors and six eligible recipient countries and a high-level representative of the Adaptation Fund Board COUNTRY ELIGIBILITY Countries eligible for official development assistance and MDB assistance with priority given to highly vulnerable least-developed countries DONORS Australia, Canada, Denmark, Germany, Japan, Norway, Spain, United Kingdom, United States IMPLEMENTATION AfDB, ADB, EBRD, IDB, and WBG, including IFC FINANCING Grants and highly concessional financing (near-zero interest credits with a grant element of 75 percent) OBSERVERS MDBs, Trustee, GEF, UNDP, UNFCCC, and self-selected representatives of CSOs, Indigenous Peoples, and the private sector PILOTS Bangladesh, Bolivia, Cambodia, Mozambique, Nepal, Niger, Tajikistan, Yemen, Zambia, Caribbean region (Dominica, Grenada, Haiti, Jamaica, St. Lucia, St. Vincent and the Grenadines), Pacific Region (Papua New Guinea, Samoa, Tonga), plus two regional efforts addressing the needs across the islands
PILOT PROGRAM FOR CLIMATE RESILIENCE (PPCR) PROJECTS! All 20 investment plans are endorsed PPCR FINANCING BY PROJECT CATEGORY (in $M & %)! A pipeline of 67 projects and programs has emerged for a total allocation of $1 billion in PPCR funding Urban Development, 15.75, 2% Water Resources Management, 212.50, 21% Agriculture and Landscape Management, 260.00, 26%! Funding for 40 of these projects is approved for a total of $696 million in PPCR financing, which is expected to leverage $1 billion in co-financing Infrastructure, 158.15, 16% Enabling Environment (including capacity development, policy and regulatory work), 106.25, 11% Climate Informa:on Systems and Disaster Risk Management, 167.30, 17% Coastal Zone Management, 73.11, 7% * Numbers as of February 1, 2014
FOREST INVESTMENT PROGRAM (FIP) PURPOSE To support developing country efforts toward reducing emissions from deforestation and forest degradation and promoting sustainable management of forests that leads to enhancement of forest carbon stocks (REDD+) FUNDING $639 million pledged FINANCIAL LEVERAGE 1:4.6 GOVERNANCE FIP Sub-Committee of representatives from six contributor and six eligible recipient countries COUNTRY ELIGIBILITY Countries eligible for official development assistance and MDB assistance with priority given to countries expressing an interest to participate DONORS Australia, Denmark, Japan, Norway, Spain, Sweden, United Kingdom, United States IMPLEMENTATION AfDB, ADB, IDB, and WBG, including IFC FINANCING Concessional financing, such as grants and concessional loans OBSERVERS MDBs, Trustee, GEF, FCPF, UNFCCC, UN-REDD, and self-selected representatives of CSOs, Indigenous Peoples, and the private sector PILOTS Brazil, Burkina Faso, Democratic Republic of Congo, Ghana, Indonesia, Lao People s Democratic Republic, Mexico, Peru
FOREST INVESTMENT PROGRAM (FIP) PROJECTS! All 8 investment plans are endorsed! A pipeline of 33 projects has emerged for $420 million in FIP allocations! Funding for 11 projects is approved for a total of $160 million in FIP financing, which is expected to leverage $745 million in co-financing FIP PORTFOLIO BY THEMATIC SCOPE AND SECTOR ( in $M & %) Indigenous Peoples/Local Communi:es, 53.00, 11% Sustainable Forest Management, 13.33, 3% Landscape Approaches, 105.88, 23% Agriculture/Food Security, 10.72, 2% AgroForestry, 3.30, 1% Capacity Building/ Ins:tu:onal Strengthening and Governance Reform, 257.94, 55% Forest Monitoring/MRV, 25.80, 5% * Numbers as of February 1, 2014
SCALING UP RENEWABLE ENERGY IN LOW INCOME COUNTRIES PROGRAM (SREP) PURPOSE To expand energy access and stimulate economic growth in low income countries by working with governments to build renewable energy markets, engage the private sector, and remove barriers that might otherwise inhibit investments in renewable energy technologies FUNDING $551 million FINANCIAL LEVERAGE 1:6.3 GOVERNANCE SREP Sub-Committee of representatives from six contributor and six eligible recipient countries COUNTRY ELIGIBILITY Countries eligible for official low income countries eligible for MDB concessional financing and engaged in an active MDB country program with priority given to countries expressing an interest to participate DONORS Australia, Denmark, Japan, Korea, Netherlands, Norway, Spain, Sweden, United Kingdom, United States IMPLEMENTATION AfDB, ADB, IDB, and WBG, including IFC FINANCING Concessional financing, such as grants and concessional loans OBSERVERS MDBs, Trustee, GEF, UNDP, UNEP, and self-selected representatives of CSOs, Indigenous Peoples, and the private sector PILOTS Ethiopia, Honduras, Kenya, Liberia, Maldives, Mali, Nepal, and Tanzania Reserve SREP pilots: Armenia, Mongolia, Yemen, and Pacific Region (Solomon Islands and Vanuatu)
SCALING UP RENEWABLE ENERGY IN LOW INCOME COUNTRIES PROGRAM (SREP) PROJECTS! 8 investment plans are endorsed SREP-SUPPORTED INSTALLED RE GENERATION CAPACITY (MW) BY TECHNOLOGY! A pipeline of 28 projects and programs has emerged for a total allocation of $340 million in SREP funding expected to contribute to 583 MW in new renewable energy capacity Solar PV, 12.08, 3% RE, 11.27, 3% Waste to Energy, 12.94, 4% Cookstoves, 2.97, 1% Wind, 20.13, 6% Geothermal, 91.60, 27%! Funding for 8 projects is approved for a total of $82.9 million in SREP funding expected to leverage $478.3 million in co-financing and contribute toward 250 MW in new renewable energy capacity Mixed RE, 147.31, 43% Hydropower, 32.61, 10% Mini- Grid, 10.07, 3% * Numbers as of February 1, 2014
THE KEY COMPONENTS OF A CIF PROJECT APPROVAL Investment plan preparation MDB Joint Missions consultation Interagency coordination Technical analyses and studies Sector/project identification Project preparation Feasibility studies Technical and climate analyses Safeguards studies Consultations Implementation arrangements Legal documentation Arranging financing Policy/regulatory dialogue Project implementation Loan signing/financial close Procurement Application of safeguards Consultations Construction Technical assistance/advisory services Policy/regulatory dialogue Commissioning Operations and maintenance
CTF Investment Plan for Indonesia Endorsed March 2010; revised April 2013 CTF allocation: $400 million; expected co-financing: $5.1 billion Project Title CTF USD Million Co- financing USD Million ImplemenTng Agency Status EE and RE 50 200 ADB CTF approval: July 2014 (expected) Geothermal Program PS Geothermal Program Geothermal Clean Energy Investment 40 1,720 IFC CTF approval: Dec 2013 150 2,475 ADB CTF approval: Sept 2013 125 449.7 IBRD CTF approval: Dec 2010 IFC approval: July 2011 EE and RE 35 400 IFC CTF approval: TBD
CTF Investment Plan for the Philippines Endorsed December 2009; revised Aug 2013 CTF allocation: $250 million; expected co-financing: $1.6 billion Project Title CTF USD Million Co- financing USD Million ImplemenTng Agency Status EE Electric Vehicles 105 399 ADB CTF approval: Oct 2012 ADB approval: Dec 2012 Solar Energy Development Renewable Energy Development Cebu BRT Demonstra:on 20 400 ADB CTF approval: July 2014 (expected) 45.1 500 IBRD CTF approval: Aug 2013 IBRD approval: Oct 2013 26.1 187 IBRD CTF approval: Nov 2012 IBRD approval: Jan 2014 Manila BRT 23.9 150 IBRD CTF approval: July 2014 (expected) RE Accelerator Program Sustainable Energy Finance Program 20 IFC CTF approval: Sep 2010 10 IFC CTF approval: Feb 2010
CTF Investment Plan for Thailand Endorsed December 2009; updated June 2011; revised Sept 2013 CTF allocation: $300à 170 million; expected co-financing: $300 million Project Title Private Sector RE Program RE Accelerator Program Sustainable Energy Finance Program CTF USD Million Co- financing USD Million ImplemenTng Agency Status 100 197 ADB CTF approval: May 2012 ADB approval: June 2012 40 48 IFC CTF approval: June 2010 IFC approval: May 2011 30 65 IFC CTF approval: Oct 2010 IBRD approval: June 2011
CTF Investment Plan for Vietnam Endorsed December 2009; updated June 2011; revised Sept 2013 CTF allocation: $250 million; expected co-financing: $4.4 billion Project Title CTF USD Million Co- financing USD Million ImplemenTng Agency Status HCMC Transport 50 1,390 ADB CTF approval: Sept 2013 ADB approval: March 2014 (expected) Hanoi Transport 100 1,537 ADB CTF approval: Sept 2014 (expected) Distribu:on Efficiency Sustainable Energy Finance 30 770 IBRD CTF approval: June 2012 IBRD approval: Sept 2012 8.6 16 IFC CTF approval: Sept 2011 IFC approval: Nov 2011 Grid Efficiency 60.4 400 ADB CTF approval: Feb 2014 (expected) TA for M&E 1 ADB CTF approval: March 2014 (expected)
Zhihong Zhang, Ph.D. Senior Program Coordinator, CTF and SREP 202-473-9852 zzhang2@worldbank.org www.climateinvestmentfunds.org