GEF Small Grants Programme Tags [ tags: Energy , Energy Efficiency , Global , Grant , Low-Carbon , Mitigation , Renewable Energy , Transport , Urban , Multilateral ] Snapshot Total Amount $50,000 per project Financing Grant Mechanisms Qualifying Projects Mitigation, Energy , Energy Efficiency , Low-Carbon , Renewable Energy , Transport , Urban Eligibility Community-based or non-governmental organizations (CBOs or NGOs) in 101 SGP participating countries Funding Objectives The UNDP-GEF Small Grants Programme (SGP) has disbursed over $500 million dollars in grants and in-kind financing to NGOs, community groups, and other development organisations. The SGP finances climate change projects in the energy and transport sectors. The principle objectives of the GEF Small Grants Programme are to: Develop community-level strategies and implement technologies that could reduce threats to the global environment if they are replicated over time; Gather lessons from community-level experience and initiate the sharing of successful community-level strategies and innovations among CBOs and NGOs, host governments, development aid agencies, GEF and others working on a regional or global scale, and; Build partnerships and networks of stakeholders to support and strengthen community, NGO and national capacities to address global environmental problems and promote sustainable development. Financing Mechanisms The SGP provides grants of $50,000 or less to community-based organizations (CBOs) and nongovernment organizations (NGOs). The grants are channeled directly to the implementing organizations by the UNDP/GEF. Application Procedures Eligibility for the SGP relies on the status of the applying group. It must be a recognized CBO or NGO in one of 101 countries that participates in the SGP. The application process then follows these seven steps: 1. The project proponent contacts the SGP National Coordinator (in the local UNDP country office or in the host NGO) to receive project application guidelines and forms. 2. With assistance from the National Coordinator and using the standard SGP format, the proponent prepares a brief project concept paper and submits this to the coordinator. 3. The national coordinator reviews and pre-screens the concept paper according to GEF criteria and criteria adopted by the National Steering Committee (NSC) for activities in that country. 4. If the project is judged eligible, the project proponent prepares a project proposal; in some cases, this step may be supported by a planning grant. 5. Completed project proposals are submitted by the National Coordinator or the NSC. 6. The NSC reviews the proposal and either accepts it, rejects it, or returns it to the proposer with a request that further work be done on formulating and refining the project data. 7. Approved proposals enter the national SGP work programme. SGP grants are usually paid in three installments: an up-front payment to initiate the project; a mid-term payment upon receipt of a satisfactory progress report; and a final payment on receipt of a satisfactory project completion and final report. Project Types In the area of climate change, SGP-eligible activities must demonstrate the removal of local barriers to energy conservation and energy efficiency, promote the adoption of renewable energy, or promote environmentally sustainable transportation options. Decision-making structure Each participating country develops a country programme strategy, which adapts the SGP global strategic framework to specific country conditions. SGP country strategies take into account existing national biodiversity and climate change strategies and plans, as well as those relating to national development and poverty eradication. A locally recruited National Coordinator is appointed to carry out day-to-day management of the programme and serve as secretary to the NSC. An SGP office is established either in UNDP or in a host NGO. The National Coordinator, working with the NSC, reaches out to the NGO community and CBOs to inform them of availability of grants, and receives and screens proposals. Once a country is accepted to host an SGP programme, it forms a voluntary National Steering Committee (NSC), which is the central element of SGP and provides the major substantive contribution to and oversight of the programme. The NSC typically comprises representatives from local NGOs, government, academia, UNDP and occasionally co-funding donors, indigenous peoples' organizations, the private sector and the media. The NSC develops a country programme strategy, considers whether proposals for grants are feasible and meet SGP criteria, and what kind of technical support is needed for implementation. The NSC is responsible for final approval of grants, helps undertake site visits and review, advises on design of grant proposals, ensures monitoring and evaluation, and champions SGP in national fora. Project Examples Nepal Electric Buses (USD 33,000): The project operated three-electro buses for public hauling and acquire financial and technical data to evaluate the electro-bus technology. The project also disseminated the findings to all the stakeholders and served the basis for policy formulation in order to involve private entrepreneurs for wide-scale replication. Tanzania Consolidation of Wind-Powered Irrigation Farming ($22,988): Wind energy was used to pump water to the water drawing points and cattle drinking troughs. This water was also useful for irrigation purpose, hence food crops harvests increased and contributed to a food-secure community in the project area. Links SGP homepageSGP - UNFCCC page MDB Clean Technology Fund (CTF) Tags Snapshot Total Amount USD 4.5 billion pledged by donors (Australia, France, Germany, Japan, Spain, Sweden, United Kingdom, United States) Financing Co-financing , Grant , Loan , ODA Mechanisms Qualifying Mitigation, Agriculture , Energy , Energy Efficiency , Fuel Switching , Industry , Projects Infrastructures , Transport Eligibility Countries that have an active MDB country program (World Bank and Regional Development Banks) including Algeria (MENA), Colombia, Egypt (Country and MENA), Indonesia, Jordan (MENA), Kazakhstan, Mexico, Morocco (Country and MENA), Philippines, South Africa, Thailand, Tunisia (MENA), Turkey, Ukraine, Viet Nam. Funding Objectives Key features of the CTF design are: Utilizing MDB capabilities to leverage private and public resources for low carbon investments; Promoting environmental and development co-benefits to demonstrate how low carbon technologies can contribute to national development goals and strategies; Providing concessional financing with a grant element tailored to cover the identifiable additional costs of the investment necessary to make the project viable. Financing Mechanisms Concessional financing instruments, such as grants and concessional loans, risk mitigation instruments, such as guarantees, and equity. Technical assistance. Application Procedures When a country expresses interest in accessing CTF financing, the MDBs concerned will conduct a joint mission with other development partners to discuss with the government, private industry and other stakeholders how the fund may help finance scaled-up low carbon activities. The outcome of the joint exercise is an investment plan developed under the recipient country’s leadership for use of CTF resources in major sectors of the economy through a joint MDB program. The investment plan should build on existing country-owned strategies or action plans and demonstrate how it is complementary to activities under other available programs. Steps to access the CTF: 1. A interested country requests a joint mission of the World Bank Group and relevant Regional Development Bank to prepare an investment plan 2. An investment plan is developed under the leadership of the country to describe how CTF financing will be used in major sectors of the economy through a joint MDB program 3. A Trust Fund Committee reviews the investment plan, endorses further development of activities for CTF financing, and facilitates prioritization of projects according to agreed criteria such as: o Potential GHG emission savings o Demonstration potential o Development impact o Implementation potential Project Types The CTF is expected to support 15-20 country/regional investment plans that meet the criteria of significant GHG emissions savings, demonstration potential at scale, development impact and implementation readiness. In order to access CTF funding, a country must be eligible for official development assistance and have an active MDB country program. Eligible investments are in the power and transport sectors, as well as energy efficiency (for example in buildings, industry and agriculture). The CTF seeks to have transformational impacts by supporting investment programs that: Constitute a dominant part of countries’ low carbon development strategies; Shape the course of markets for technology deployment; and/or Transcend GHG emissions savings objectives by providing broader development and environmental benefits. Decision-making structure The governance and organizational structure of the CTF includes a CTF Trust Fund Committee, an MDB Committee, a Partnership Forum, an Administrative Unit and a Trustee. Decision by the CTF Trust Fund Committee will be made by consensus of its decision making Members. Consensus is a procedure for adopting a decision when no participant in the decision-making process blocks a proposed decision. For the purposes of the CTF, consensus does not necessarily imply unanimity. A dissenting decision maker, who does not wish to block a decision, may state an objection by attaching a statement or note to the decision. If consensus is not possible, then a proposed decision will be postponed or withdrawn. Monitoring and evaluation of results will be critical for the Trust Fund, and each MDB will follow its procedures for monitoring and evaluation. There will be annual reporting by the MDBs to the Trust Fund Committee, and an independent evaluation of the operations of the Trust Fund and the impacts of its activities will be carried out jointly after three years of operations by the independent evaluation departments of the MDBs. Results achieved through the fund will be published and publicly available. Full reporting criteria will be agreed by the Trust Fund Committee. Project Examples Endorsed Investment Plans: CTF Trust Fund Committee approved allocations of funds to Investment Plans for Egypt, Mexico, Turkey. Investment Plans under preparation: Colombia, Kazakhstan, Morocco, Philippines, South Africa, Thailand, Ukraine, regional (Middle East and North Africa Concentrated Solar Power Program). First project approved by MDB Board: Turkey Renewable Energy and Energy Efficiency Project First private sector project approved by TFC: Mexico Private Sector Wind Development Links www.climateinvestmentfunds.org The Global Environment Facility (the GEF) Tags Snapshot Total Amount To date, USD 3 billion has been allocated for mitigation and enabling activities and USD 400 million for adaptation. Financing Co-financing , Grant Mechanisms Qualifying Adaptation , Capacity Building , Mitigation, Agriculture , Climate-Resilient , Energy , Projects Energy Efficiency , Forestry , Low-Carbon , Renewable Energy , Sustainable Land Management , Transport , Water Eligibility Parties to UNFCCC, non-Annex I Parties or eligible to borrow from the WB (IBRD and/or IDA) or eligible recipient of UNDP technical assistance. Funding Objectives The GEF serves as an operating entity of the financial mechanism of the UNFCCC and is working under the guidance of the Council and the COP. Through supporting mitigation and adaptation projects in developing countries and countries with economies in transition, the GEF is contributing to the implementation of the Convention. The GEF is the only institution which got a mandate from the convention on technologies and is implementing the Poznan Strategic Program on Technology Transfer. The GEF is also managing the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF) established under the UNFCCC and provides secretariat services to the Adaptation Fund under the Kyoto Protocol. Financing Mechanisms In most cases, the GEF is supporting projects through providing grants and leveraging co-financing. However, many GEF projects include a range of components such as investment, technical assistance, establishment of funds, risk management, PES and others. In most cases, the GEF is supporting projects through providing grants and leveraging co-financing. However, many GEF projects include a range of components such as investment, technical assistance, establishment of funds, risk management, PES and others. Application Procedures The GEF projects are developed by host countries in cooperation with 10 GEF Agencies. An application can be made by submitting a Project Identification Form (PIF) to the GEF secretariat through a GEF Agency(s) with an endorsement letter of the Operational Focal Point of the host country. Project Types Energy efficiency in industry and the building sector, renewable energy, low-carbon transport, LULUCF, adaptation, NAPA, enabling activities and others. Decision-making structure For full-sized projects (>$1 million), decision for projects are made through three steps before implementation; the GEF CEO clearance of the PIF, the Council approval, and the GEF CEO endorsement of the project. Medium-sized projects ($1 million or under) and enabling activities are approved under expedited procedures, with approval authority delegated to the GEF CEO. Full-sized projects have to be endorsed by the CEO within 22 months from the date of Council approval; medium-sized projects have to receive the approval of the CEO of the final project document within 12 months from the PIF approval. The LDCF and SCCF follow separate procedures from the GEF trust fund, consistent with Climate Convention guidance. In the case of the LDCF, Medium-sized projects have a $2million ceiling. Projects in both funds generate adaptation benefits that are linked to development. Project Examples There are more than 500 climate change projects in the GEF: Barrier removal to encourage and secure market transformation for refrigerators (Tunisia, USD 0.7 million); Energy conservation project, Phase II (China, USD 26 million) (develop ESCO industry); Energy Efficiency Co-financing Program (HEECP) (Hungary, USD 5.7 million): provide guarantees and technical assistance to support the financing of energy efficiency-related projects; High-efficiency lighting project (ILUMEX) (Mexico, USD 10 million); Demonstration of FCB commercialisation (China, USD 11.6 million); Solar thermal hybrid project (Egypt, USD 50 million); Solar energy (India, USD 26 million): support off-grid photovoltaic; Removal of barriers to biomass power generation and co-generation (Thailand, USD 6.8 million); Rapid-transit bus and pedestrian improvements in Jakarta (Indonesia USD 6.16 million); Enhancing institutional capacities on REDD issues for sustainable forest management in the Congo Basin (regional project; USD 15 million); Community-Based Adaptation (CBA) project (Global project, USD 5.51 million): helping villagers to define and implement local responses to climate change impacts in their communities; Pacific Islands Adaptation to Climate Change (PACC) (Pacific Island States, USD 14.82 million): cooperative cross-sectoral approach to adaptation in the Pacific region. Links http://thegef.org Seed Capital Assistance Facility (SCAF) Tags Snapshot Total Amount $10.47 million Financing Co-financing , Equity , Grant Mechanisms Qualifying Mitigation, Energy , Energy Efficiency , Renewable Energy Projects Eligibility Commercial Private Equity or Venture Capital Funds can receive cost-sharing support for including early stage seed capital windows within their broader commercial investment offering. Funding Objectives The facility is aimed at helping energy investment funds provide seed financing to early stage clean energy enterprises and projects. The Facility is implemented through the United Nations Environment Programme, the Asian Development Bank and the African Development Bank. Entrepreneurs can transform markets, but the environment for entrepreneurship is poor in many developing countries, particularly in the energy sector. For new business ventures there is a lack of available enterprise development support services and seed financing is hard to secure, with most investors reluctant to engage too early. This means that even high potential renewable energy and efficiency sectors develop quite slowly. The two largest challenges that investors have in providing seed capital financing to early stage projects and companies are the higher transaction costs and insufficient returns offered by these small, less mature and more risky ventures. The SCAF facility is designed to address these two hurdles, offering investment fund managers two types of cost-sharing support for those willing to include a seed investment window within their overall investment strategy. Financing Mechanisms SCAF Support Line 1 - Enterprise Development Support The first SCAF support line can be used to cost-share some of the elevated costs associated with deal sourcing, providing enterprise development services to and transacting seed scale investments. As part of this arrangement, the cooperating fund manager commits to providing enterprise development services to qualified local entrepreneurs as a means of identifying and developing a pipeline of early stage clean energy investment opportunities. Each cooperating fund manager decides the services they will offer, based on the local context, however the common elements of these services generally involve: Identification and training of new ‘pre-commercial’ clean energy entrepreneurs and project developers, Targeted coaching or incubator services for specific promising investment opportunities and Co-financing of pre-investment feasibility studies. The Enterprise Development Support comes in the form of annual fees, time limited to between two and three years, the time it normally takes to graduate seed financed developments into full-scale investments. This support is provided as a contingent grant, requiring that the cost-shared activities lead to corresponding investments being taken by the fund’s seed window. SCAF Support Line 2 - Seed Capital Support The second SCAF support line is designed to help offset the hurdle of higher perceived risks and lower expected returns when dealing with early stage clean energy project and enterprise developments. The level of support provided is negotiated with each cooperating fund manager and then paid on a standard basis with each project. Typically the support is in the range of 10% to 20% of each seed capital investment, paid at the time of investment disbursement. This support is used for covering some of the elevated project development costs that normally are charged to or financed by the developer, for example technical assessments; contract negotiations for fuel-supply or off-take agreements; environmental impact analysis; and other aspects of the permitting process. Application Procedures There is no required format for proposals submitted to become a SCAF cooperating fund manager. However successful proposals must provide information on and address all conditions detailed in the following guidelines. Proposals should not be longer than 15-20 pages in length, although additional supporting materials can be included as Annexes to the main proposal document. The following check-list summarizes all issues that must be addressed within proposals to be considered for support: Size of seed investment window, Form of financing to be used, Expected areas of technology focus, Investee company types, Geographic focus. Applicants must also explain the overall fund investment strategy, including Size of the fund at first and subsequent closings, Status of fund development, Background experience of fund manager, Legal structure. Linkage between the seed investment and overall fund investment strategy is explained. Presentation of the enterprise development strategy and the specific services to be offered. Description of key personnel or organisations that will provide enterprise development services. Description of the Environmental Safeguard Policy to be applied. The Fund Manager should demonstrate suitable technical and managerial experience and qualifications to execute the tasks set out in a SCAF Cooperating Fund Agreement. Specifically, the Fund Manager should have: Proven experience and track record in successfully developing clean energy projects, managing private equity, venture capital or special purpose investment funds in developing countries. Demonstrated technical competence in energy project appraisal and experience in working with indigenous small and medium enterprises. Adequate financial management and accounting capacity to meet fiduciary requirements. Sound financial track record and integrity with a good reputation for service quality and delivery. In-house capacity or access to a reputable network of local or regional entities to deliver enterprise development services to prospective entrepreneurs and project developers. Project Types In Least Developed Countries most technologies will be eligible, other than those included in the allcountry negative list below. In other emerging market countries only the ‘second wave’ of technologies will be eligible, not the first wave that today are considered fully commercial. For example wind and hydro generation projects in China and India, or geothermal projects in the Philippines, would not qualify for SCAF support. Technologies ineligible for support in all countries: Landfill methane Bio-fuels projects, unless they can be clearly shown to meet sustainability criteria (non-food crop with minimal impact on food security, biodiversity impacts, etc) Vehicle efficiency (in the transport sector only modal shift and bio-fuel projects that meet condition (b) above are eligible) Large hydro (>25 MW) Nuclear energy Morever, projects that have received prior support through the GEF or ones that are intended to reap financial benefits through the CDM or JI will not be considered eligible for SCAF funding. Decision-making structure The engagement process for a fund to cooperate with SCAF consists of the following steps: 1. Proposal The fund manager begins the process by preparing a proposal for SCAF consideration. This proposal details the investment fund entity under development, or already in implementation, and the specific plan for creating a seed capital window within it and adding an associated enterprise development support programme. There are no fixed proposal formats, although all information described in the Proposal Guidelines section must be included (see checklist). Proposals should be no longer than XX pages. 2. Screened and Terms and Conditions Negotiated Proposal screening will be carried out based on the evaluation criteria. The terms of SCAF support are to be negotiated on a case by case basis depending on local economic conditions, the maturity of the targeted clean energy sector(s), the overall investment strategy of the cooperating fund and the impact these all have on expected enterprise development and transaction costs and returns on investment. The SCAF evaluation criteria defines the conditionality for the support to be provided (in terms of enterprise development services offered, co-finance requirements, deal size, technology type, etc) but some flexibility will be allowed to tailor specific support contracts to local conditions. 3. Due Diligence A detailed due diligence will be carried out on the fund management entity and its specific proposal as a condition precedent for SCAF contractual engagement. This procedure will verify that the cooperating fund manager has the appropriate capacity, management systems and legal authorities to carry out the proposed investment activity and as well has the ability and systems in place to provide the proposed Enterprise Development Support. 4. Approval Once the due diligence process has confirmed a valid proposal and qualified fund management entity, the proposal package will be considered for approval. 5. Contracting The contractual arrangements with the approved cooperating funds will define the terms and conditions whereby SCAF support can be used, and will include the reporting, auditing and monitoring and evaluation (M&E) functions. The contractual agreement will involve annual disbursements to pay for enterprise development activities (reviewed and approved on an annual basis), as well as individual disbursements for each project seed financed by the cooperating fund (screened on a case by case basis). The fund manager will be obliged to meet an investment schedule (i.e., the enterprise development support must lead to subsequent investments from the seed finance window) failing which they will be obliged to repay a share of the enterprise development support provided. Project Examples In 2010 the first SCAF cooperating fund agreement was signed with the South African clean energy fund Evolution One whereby seed financing is being provided to wind farm developments in the Eastern Cape province. In Asia fund development agreements signed with five fund managers, each of which is preparing an early stage investment strategy as part of a broader investment offering. These strategies include incubator, development companies and value chain investing approaches. Based on this preparatory work ADB plans to sign full SCAF Cooperating Fund Agreements with most of these fund managers once their funds are fully capitalised and operational. Including the South African fund, the six funds now engaged have a combined target capitalisation of $480 million, of which $55 million is for seed scale investing. Links Seed Capital Assistance Facility homepage EIB Climate Change Technical Assistance Facility Tags Snapshot Total Amount Total funding of EUR 5 million Financing Grant , Loan Mechanisms Qualifying Projects Mitigation, Carbon Capture & Storage (CCS) , Energy Efficiency , Forestry , Fuel Switching , Fugitive Methane Eligibility Any carbon mitigation project that will be eligible for CDM or JI crediting Funding Objectives The Climate Change Technical Assistance Facility (CCTAF) provides advance funding for activities associated with the development of project-based carbon assets (credits) under the Clean Development Mechanism (CDM) and Joint Implementation (JI) instruments of the Kyoto Protocol. The development of these projects involves considerable transaction costs and requires knowledge of regulatory and policy requirements that is often lacking for project promoters, especially in developing countries and economies in transition. Promoters may therefore be reluctant to use the CDM and JI instruments to develop emission reduction projects. The CCTAF therefore aims to promote the development of CDM and JI projects by providing advance finance for the transaction costs and by supervising the development of the carbon asset potential of an underlying project throughout the project cycle to the carbon credit certification stage. Financing Mechanisms The CCTAF takes the form of a conditional loan or grant that will be reimbursed by the project promoter once the project has yielded carbon credits that qualify according to the requirements of the Kyoto Protocol. Should the carbon asset development fail, the Bank would assume the CCTAF costs. By taking this risk, the Facility aims to help develop projects that would otherwise not be implemented. The necessary studies and processing work are outsourced to private sector consultants. By combining the specific expertise of consultants with the project development expertise of the EIB, the Facility ensures the overall quality of a CDM/ JI project. Application Procedures No special formalities are involved for the submission of applications to the EIB for individual loans. Project promoters are required simply to provide the Bank's Operations Directorate with a detailed description of their capital investment together with the prospective financing arrangements. Initial contacts to discuss a proposed project can be in any form, by telephone, fax, e-mail or letter. The project promoter should provide sufficient information to allow the EIB to assess whether the project adheres to EIB lending objectives and has a well-developed business plan. Project Types CCTAF services are eligible for any project that qualifies for crediting under the CDM or JI programmes of the Kyoto Protocol. The carbon crediting activities for which the CCTAF can provide funding include: Carbon credit pre-feasibility study; Preparation of carbon credit documentation (Project Design Document); Validation of the Project Design Document; Registration of the project; Carbon credit sales activities (preparation of a sales memorandum, Emission Reduction Purchase Agreement); Verification of emission reductions; Issue and transfer of credits. Decision-making structure The appraisal procedure is launched by the Directorate General for Lending Operations, on the basis of a file compiled by the promoter: The Management Committee is informed of the main features of the planned project and the principal aspects on which the appraisal will focus; An appraisal team composed of representatives of all Directorates concerned is set up to prepare the appraisal. A timetable is established; A site visit to the promoter is organised by the Directorate General for Lending Operations. Depending on the project, an engineer and/or economist may join the loan officer in discussing in detailed support. Only after these steps have been taken can the Management Committee make recommendations to the Board of Directors as to whether a project ought to be accepted or rejected. Project Examples N/A Links CCTAF Guidelines International Climate Initiative (Germany) Snapshot Total Amount €120 million per year [€371 million to date] Financing Grant , Loan , ODA Mechanisms Qualifying Adaptation , Mitigation, Agriculture , Disaster Risk Reduction , Energy Efficiency , Projects Forestry , Populations & Human Settlements , Renewable Energy , Sustainable Land Management , Transport , Water Eligibility Any project proponent must prove at least three years of international project development experience; Total project duration of less than five years; Funding Objectives The bilateral fund International Climate Initiative (ICI) is run by the Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU) of the Government of Germany. The ICI provides financial support to international projects in climate change mitigation, adaptation and biodiversity projects that have a climate change focus or co-benefit. Significantly, financing through the Initiative seeks to ensure that its investments will catalyze other funding streams, particularly those from the private-sector, of a greater magnitude. It also seeks projects that support a post-2012 focus and to that end will fund multilateral activities in adaptation and sustainable forest management. Financing Mechanisms Funding from the ICI directed to developing countries is considered official development assistance (ODA). Funds are disbursed mainly in the form of grants, yet some ICI financing may be provided as interest rate subsidized loans, such as that provided to Russia/CIS states for use in CDM/JI projects. The financing is intended to encourage private-sector investment by making projects. Application Procedures The selection process for projects seeking International Climate Initiative funding is based on a twostep procedure. The first step consists in evaluating the project outlines (templates are provided on the BMU website) submitted to the Programme Office. Applicants will be informed of the evaluation result. If their project outlines are promising, they will be requested to submit a formal grant application, with detailed project plan and a financing strategy. The Ministry for Environment, Nature Conservation and Nuclear Safety will then decide on the applications in a final review (second step of the procedure). After conclusion of the first step, applicants will be supplied with a sample of the application materials used in completing the second step. Project Types The Initiative breaks down eligible project types into three main categories: climate change mitigation, climate change adaptation, and conservation of climate-relevant biodiversity. Adaptation Projects successfully seeking ICI funding for adaptation include food security and agriculture, sustainable land management, water resource management, sustainable biomass production, human health, disaster risk reduction, and migration management. Mitigation The Initiative will fund climate change mitigation projects in energy efficiency, renewable energy, capacity building, technology transfer, and sustainable transportation. Climate-relevant Biodiversity Conservation In keeping with the post-2012 focus of the Initiative, funding is also available for projects that seek to conserve biodiverse forested areas in Central and Latin America, Africa, and Asia. Projects that implement aspects of sustainable forest management are also considered eligible. In the field of REDD activities for conserving carbon sinks, two dozen projects are financed for a total of €58 million. Activities in this field aim to improve synergies between climate protection and biodiversity conservation. Decision-making structure The ICI works in conjunction with two organizations contracted by the Government of Germany government to perform development cooperation tasks, the Agency for German Technical Cooperation (GTZ) and KfW, a development bank. The administration of the International Climate Initiative is carried out by a programme office located at GTZ, supported by additional personnel capacity provided by KfW. An international advisory board offers strategic support to the practical work undertaken in the ICI. The international advisory panel is made up of experts from governments, academia, nongovernmental organisations, private firms, financial markets and international financial institutions. The international membership of this body reflects the complex range of interests that exists at international level and is designed to allow multiple, cross-sector perspectives to emerge regarding the innovative financing of future climate protection measures. Projects selected for funding from the ICI will prove their cost-effectiveness, as well as offer a plan to partially self-fund the project or otherwise attract third-party financing. Approved projects will also need to show replicability, effective integration with national development policy and planning, and project sustainability with capacity building in the target region and sector. Project Examples Insurance Instruments for Adaptation to Climate Change (China): The purpose of the project is develop and introduce sustainable weather insurance solutions in two pilot regions in order to protect vulnerable sectors of the economy. This will take place in close cooperation with future customers, the China Insurance Regulatory Commission (CIRC), the China Meteorological Administration (CMA) and Chinese and international insurance companies. Climate Projection Programme (Turkey): ICI funding provides an interest rate subsidy for a line of credit extended to the Turkish environment and development bank from the private sector. The credit will be used to create a facility through which the Turkish government can attract private-sector investment in the form of long-term loans for energy efficiency and renewable energy development. ICI’s interest rate subsidy makes such an arrangement economically possible by lowering the cost of capital through the credit line. Links International Climate Initiative homepageICI applicationICI - UNFCCC page The Hatoyama Initiative (Japan) Tags Snapshot Total Amount There is no minimum or maximum amount of assistance. Financing Grant , Loan , ODA , Technical assistance Mechanisms Qualifying Projects Adaptation , Mitigation, Agriculture , Disaster Risk Reduction , Energy Efficiency , Renewable Energy Eligibility Developing countries in consultation with Government of Japan (some private sector actors may also be considered). Funding Objectives Assistance will be provided to developing countries that are already making efforts to reduce greenhouse gas emissions to enable them to achieve economic growth in ways that will contribute to climate stability, on the basis of policy consultations between Japan and those countries. Measures focused both on mitigation and adaptation will be considered eligible for funding. Financing Mechanisms The classification of the Cool Earth Partnership funds is 60% ODA. All of the grant money is ODA (which constitutes 20% of the Partnership Fund) and about half of the loan money is considered ODA, the remainder covers trade insurance schemes for Japanese exporters of clean technology. Assistance for adaptation and expanded clean energy access: Grants, technical assistance and aid through international organizations. Assistance to mitigate climate change: Financial and technical assistance, based on the needs of the requesting countries, will be given on a concessional basis. The program offers "Climate Change ODA Loans" with concessional conditions (preferential interest rates) provides financing to implement mitigation projects. Moreover, equity investments, guarantees, export insurance and subsidies through the Japan Bank for International Cooperation (JBIC) can be mobilized to fund projects in developing countries. Application Procedures Developing countries who have entered into direct, bilateral discussions with the Government of Japan (GOJ). Disbursement of funds is dependent on bilateral policy consultations with Japan, with the intent of reaching a common understanding of policies regarding climate change (e.g. reducing greenhouse gas emissions and achieving economic growth in a way that will contribute to climate stability.) Country involvement will occur via bilateral channels. The expected process of cooperation will be as follows: 1. Bilateral negotiations to agree on concept. 2. A bilateral memorandum of understanding on a post-Kyoto strategy. 3. Preparation of a country strategy paper, which should respect national ownership and complement the Paris Declaration agenda. Project Types Assistance for adaptation projects and improved access to clean energy may include adaptation planning, forestry, rural electrification research, drought management, and co-benefit approaches are subject to assistance, as well as other project types at the discretion of the Government of Japan. Mitigation assistance in the form of energy savings, increased energy efficiency technologies, and new, clean energy will be eligible for financing through loans and equity financing. The JBIC will assist private sector actors to engage in mitigation efforts in developing countries. This will occur through the International Energy Saving Project and the New Energy and Industrial Technology Development Organization. Financing for energy saving and alternative energy in developing countries could be possible through GOJ subsidies. Cool Earth mitigation funds will also support Japanese companies engaged in mitigation projects to assist investment, export and lending to developing countries. Decision-making structure The Initiative is coordinated by the Japanese Ministry of Finance. The partnership is governed by a five ministerial meeting, composed of the Chief Cabinet Secretary, Minister for Foreign Affairs, Minister for Economy, Trade and Industry, Minister for Environment, and Minister for Finance. It meets on an irregular basis, on average once a month. The Ministry of Foreign Affairs, Japan has established an Experts' Panel on Development Corporation in the Field of Climate Change to guide the development of the Partnership. This Panel consisted of Japanese academic experts, whilst representatives of other ministries and agencies participate as observers in the discussions. Project Examples Indonesia: A Climate Change Program Loan for Indonesia was agreed in July 2008. A total of up to $ 300 million will be available for activities in the forestry, energy and commercial sectors, as well as for water resource management. Tuvalu: Policy discussions were held in March 2008. Japan will cooperate in the fields of costal management, disaster prevention and alternative energy. Links NEFCO Carbon Finance and Funds Tags Snapshot Total Amount EUR 135 million Financing Carbon Finance , Grant , Technical assistance Mechanisms Qualifying Adaptation , Mitigation, Energy , Energy Efficiency , Fuel Switching , Fugitive Methane Projects , Industry , Renewable Energy , Waste Management Eligibility Projects should be in line with the requirements of the Kyoto Protocol, in particular the fulfillment of the requirements of the JI Supervisory Committee and CDM Executive Board of the UNFCCC Secretariat, and the second trading period of the EU ETS (and subsequent periods). Funding Objectives The Nordic Environment Finance Corporation (NEFCO) is a multilateral international financial institution with broad experience of financing projects with positive environmental impacts. NEFCO contributes to sustainable development and climate change adaptation and mitigation through supporting a wide range of GHG reduction projects (e.g. renewable energy, energy efficiency, fuel switching, etc.) in various parts of the world. NEFCO provides carbon financing in the form of additional revenues to projects by monetising the value of greenhouse emission reductions generated through the use of the Kyoto Mechanisms, namely Joint Implementation (JI) and Clean Development Mechanism (CDM). The credits from these projects are used for compliance with the obligations of the Kyoto Protocol and the EU Emissions Trading Scheme. Nordic Environment Finance Corporation manages two carbon facilities with combined funding resourcing of up to €135 million by originating and managing projects in Eastern Europe, Asia and Africa on behalf of 17 public and private sector investors. NEFCO’s 2 main operating funds for carbon financing are: The NEFCO Carbon Fund (NeCF) The Baltic Sea Region Testing Ground Facility (TGF) In addition, NEFCO is the implementing agency for two joint facilities together with the Nordic Development Fund, its sister organization. Further information on these may be found below: The Nordic Climate Facility is a technical assistance facility aimed at climate mitigation and adaptation in developing countries. The ProClimate Guarantee Facility is aimed at climate friendly investments in developing countries (webpage under construction). Financing Mechanisms Under its procurement funds, NEFCO acts as buyer of ERUs/CERs/AAUs on the basis of emission reductions purchase agreements concluded with project owners; it also provides coverage of carbon related project preparation costs. Post-2012 emission reductions are an integral part of the procurement, up to the maximum of the first crediting period of the project (7 or 10 years). Application Procedures First, a Project Idea Note (PIN) should be submitted to the Carbon Finance and Funds Unit. On the basis of PIN, an initial screening of the project will be performed. Afterwards, if the project is considered eligible, a more detailed financial, technical and environmental analysis will have to be submitted. Project Types NEFCO supports a wide range of GHG mitigation activities in the the following fields: Renewable Energy (Solar Thermal, Solar Electric, Wind, Biogas, Biomass, Geothermal, Hydropower) Energy Efficiency (EE Households, EE industry, EE own generation, EE Service, EE Supply side, Energy distribution) Fuel Switching Fugitive Methane Industry Waste Management (Solid Waste Management, Animal waste, Wastewater treatment) NEFCO prioritises renewable energy and energy efficiency projects. Decision-making structure NEFCO acts as the Fund Manager under the authority of the Investment Committees of the respective funds. Project Examples Lapes Landfill Gas Utilisation Project in Lithuania Saaremaa Animal Waste Biogas Project in Estonia Alchevsk Coke Plant Waste Heat Recovery Project in Ukraine Ban Coc 18 MW Hydropower Project in Vietnam Jiangsu Xiangshui Wind Power Project in China Links http://www.nefco.org/financing/carbon_finance KfW Development & Climate Finance Tags Snapshot Total Amount Variable, depending on contract Financing Grant , Loan , ODA , Structured financing Mechanisms Qualifying Adaptation , Capacity Building , Mitigation , Technology, Agriculture , Climate-Resilient Projects , Coastal Zone Management , Energy , Energy Efficiency , Forestry , Infrastructures , Low-Carbon , Material efficiency , Natural Resource Management , Renewable Energy , Sustainable Land Management , Transport , Waste Management , Water , Water efficiency Eligibility Depending on contract Funding Objectives The financing of climate-relevant investments in developing and industrialising countries has become an important element of German development cooperation (DC). Climate change is aggravating the already significant challenges facing developing and industrialising countries. Their development in particular is expected to make growth and prosperity possible, but with the least possible additional impact on the climate. German Financial Cooperation (FC) plays a pivotal role in resolving this seeming contradiction between climate protection and the interests of development. KfW Entwicklungsbank provides financial support to projects in climate mitigation, adaptation to climate change and technology-transfer. KfW’s Climate financing thus touches on many areas and extends from sustainable economic development, energy and water supply, infrastructure, urban development, solid waste management, transport and mobility to healthcare and the protection of forests and biodiversity as well as agriculture and forestry. Financing Mechanisms In climate financing, the instruments of German Financial Cooperation (FC) are used first. Accordingly, programmes and projects aimed at emissions reductions, climate change adaptation and technology transfer in developing and industrialising countries are financed with a differentiated mix of grants, low-interest loans with long maturities (for instance as development loans, mixed and composite finance, interest reduction, promotional loans and credit lines) or equity participations. A multitude of special facilities and programmes are available for environmental and climate protection. This range is complemented by innovative approaches such as fund solutions which also encourage private sector investment, while some constellations also permit purely private sector financing of projects. In many developing countries, microfinance is playing an increasingly greater role in trade and the crafts. KfW is also able to supply this financial sector - i.e. banks or other financial institutions supplying small and micro businesses as well as retail customers with loans - with equity capital, too. The financing conditions offered under FC are consistently more favourable than the market conditions and are staggered in accordance with the sector and the character of the project, the performance capacities of the sectors and partners, the economic situation of the partner country, as well as its level of development, external economic position and debt situation. Application Procedures In carrying out German Financial Cooperation (FC) KfW follows two main principles: to strengthen our partner country's sense of ownership and to align the work with the country's national development strategies and structures. An agreement reached between the government of a partner country and the German Government during intergovernmental negotiations (held about every two years) serves as the basis for bilateral cooperation. The partner countries themselves propose projects and programmes within the framework of these agreements and are responsible for their preparation and implementation. Those programmes and projects generally go through the same processing cycle. Project Types Adaptation, Capacity Building, Mitigation, Technology Transfer Agriculture, Climate Resilient, Coastal Zone Management, Energy, Energy Efficiency, Forestry (REDD), Infrastructure, Low-Carbon, Material efficiency, Natural Resource Management, Renewable Energy, Sustainable Land Management, Transport, Waste Management, Water, Water Efficiency Decision-making structure Please see Application Procedures above. Project Examples Cogeneration in China: Construction of a modern cogeneration system; Installation of a district heating system; Transfer of know-how through work on the spot of district heating experts from the public utility company in Leipzig; Environmental protection measures such as avoidance of flue gases or cleaning up of waste waters. Effects: Increased supply of electricity and thermal heat; Reduced pollution. Green Savings Accounts in Vietnam: Allocation of rights of use for certain forest areas to farmers; Green Savings Accounts: Farmers get savings accounts for the reforestation of their areas; Accompanying measures (e.g. consultancy services, forest management training etc.) Effects: Increase of farmers’ income; Reforestation and long-lasting forest protection; Increased carbon storage. Wind Parks in Morocco: KfW-loan for the construction of a wind park in Essaouira; Financed measures include the installation of the wind turbines, grid connection etc.; Consultancy services; Ornithological study. Effects: Increased electricity supply; Prevention of the construction of coal or gas-fired power plants; CDM-certification generates additional revenue. Credit Lines in the Ukraine: KfW Credit Line for the local ProCredit Bank; ProCredit provides low interest financing to households and small and medium enterprises (SMEs) for energy efficiency measures; KfW also provides consultancy services. Effects: Increased competitiveness of firms; Generation of know-how in the financial sector; Decreasing wastage of energy has positive effect on climate. Protecting the Forest in Peru: Investments in infrastructure of nature reserves to improve protection and administration; Support for the forest management; Integration of the local population into the project Effects: Improved protection of biodiversity; Preservation of CO2 storage; Long-term support for the local economy through sustainable exploitation plan. Water Management in Jordan: Investments in rehabilitation of the water supply network; Repairing and replacement of old house connections; Financing of consultancy services. Effects: Improvement of water security; Increase of supply of drinking water; Adaptation to climate change. Cyclone Protection in India: Flood waves and heavy rainfalls are often companions of cyclones that frequently occur in the state of Orissa. Approach: Cooperation with the German Red Cross; Construction of protective buildings that can also be used for communal meetings; Preventive actions (establishment of a local emergency management, emergency training and an early warning system); Raise a fund to cover maintenance costs. Effects: Improved protection against cyclones; Support of communal institutions; Adaptation to climate change. Concentrated Solar Power (CSP) in India: Installation of the first CSP plant in Asia; Additional revenue via CDM certification; Transfer of knowledge from implementation of CSP technology in Spain and USA (IPEX). Effects: Supply of clean energy for 50,000 people, CO2 savings of more than 25,000 tons p.a.; First experiences with this innovative technology. Links KfW EntwicklungsbankKfW Climate Change Public-Private Infrastructure Advisory Facility (PPIAF) Tags Snapshot Total Amount $15 million Financing Grant , Technical assistance Mechanisms Qualifying Adaptation , Capacity Building , Mitigation, Agriculture , Climate-Resilient , Energy , Projects Energy Efficiency , Infrastructures , Low-Carbon , Renewable Energy , Transport , Urban , Waste Management , Water , Water efficiency Eligibility Developing or transition economies on the Organization for Economic Co-operation and Development (OECD) Development Assistance Committee’s (DAC) I to IV Aid recipients are eligible for PPIAF funding. Grant range (approx.): $50,000-$500,000 Host country approval Funding Objectives The Public-Private Infrastructure Advisory Facility (PPIAF) was created in 1999 to act as a catalyst to increase private sector participation in emerging markets. It provides technical assistance to governments to support the creation of a sound enabling environment for private service provision. In the last two years, PPIAF has provided technical assistance designed to help African countries use public-private partnerships (PPPs) in efforts to address climate change-related problems through improved infrastructure service delivery. PPIAF is now expanding this program globally to develop appropriate policy strategies, action plans, and regulations that incorporate adaptation and mitigation measures to attract private sector climate finance in low-carbon, climate-resilient infrastructure PPPs. Governments are the main generators of private sector projects, but there are obstacles that impede private sector participation. PPIAF can assist to remove some of these obstacles by supporting: Policy formulation, as public authorities decide between public and private provision of infrastructure services; The selection of the best mode of delivery of infrastructure services and the risk allocation between the public and the private sectors; Building capacity in public authorities to design PPP projects, manage the award process and the service delivery, and partner with private investors; Adequate consultation with beneficiaries to share project objectives; Legislation and institutional reforms to ensure the sustainability of the investments and the protection of property and contractual rights; Support for the negotiations of contracts to ensure adequate risk allocation between public and private parties. PPIAF is a multi-donor technical assistance facility, financed by 17 multilateral and bilateral donors: Australia, Asian Development Bank, Canada, European Commission, France, Germany, International Finance Corporation, Italy, Japan, Millennium Challenge Corporation, Netherlands, Norway, Sweden, Switzerland, United Kingdom, United States, and the World Bank. PPIAF funds are untied and grants are provided on a demand-driven basis. Financing Mechanisms The PPIAF will be administered through technical assistance grants. Application Procedures Project proponents must submit a short concept note that provides the basic information about the project, outlining project objectives, indicators of success, and the project’s scope. Following review by the PPIAF team, proponents of approved concepts will be invited to submit a formal application package to PPIAF. All proposals are evaluated on a rolling basis. Applicants proposing small activities (involving PPIAF support of $75,000 or less) will be notified of the outcome of the evaluation within two to three weeks of submission. Applicants proposing medium-size or large activities (more than $75,000) will be notified within six to eight weeks of submission. If a proposal is rejected, an explanation will be provided to the applicant. The PPIAF application is available at the organization's website. Project Types The PPIAF will accept climate-focused grant proposals that are in line with PPIAF’s mandate to support activities in the following categories: Infrastructure development strategies to take full advantage of the potential for private sector involvement; Outreach and communication programs to engage stakeholders and ensure transparency and accountability in reforms; Design and implementation of policy, regulatory, and institutional reforms Design and implementation of pioneering projects and transactions Government capacity building to design and execute private infrastructure arrangements and regulate private service providers; Identification, dissemination, and promotion of emerging best practices Creditworthiness improvement of sub-national entities. Decision-making structure Proposals that meet the threshold eligibility requirements will be assessed against the criteria determined by PPIAF’s donors. Grant requests of $75,000 or less are evaluated internally by the RCO teams and the PMU. Grant requests that exceed $75,000 are subjected to an external technical assessment by a senior sectoral expert from the World Bank Group. Once comments from the technical assessment are incorporated in a revised proposal, the application package is first submitted to PPIAF PMU for clearance, and then to PPIAF Donors’ Council for final approval. Project Examples Impact of Climate Change in Transport (Africa, $261,500): Examining the implications of both climate change mitigation and adaptation efforts for the private sector in Sub-Saharan Africa’s transport sector, including vehicle operators, vehicle manufacturers, and facilities services providers, by building on ongoing work in Ethiopia, Ghana, and Mozambique. Compact Fluorescent Lamp (CFL) Waste Management (Africa, $170,000): Providing specific tools, incentives, techniques, and policies to manage discarded fluorescent lamps, especially with the aim of supporting an enhanced private sector role for infrastructure investment strategies and institutional arrangements. South Africa Cities Energy Efficiency and Renewable Energy Program ($400,000): Carrying out a prefeasibility study to increase energy efficiency, generate renewable energy and reduce greenhouse gas emissions by focusing on improved infrastructure investments with financing generated through PPPs. Lighting Africa Policy Issues (Africa, $350,000): Providing a cross-country analytical framework to understand better the nature and the extent of policy-related barriers to the large scale market Links PPIAF website Climate and Development Knowledge Network Tags Snapshot Total Amount £0.5 million/project (most grants are £25,000 - £250,000) Financing Co-financing , Grant , Technical assistance Mechanisms Qualifying Adaptation , Capacity Building , Mitigation, Agriculture , Climate-Resilient , Energy , Projects Energy Efficiency , Forestry , Industry , Low-Carbon , Renewable Energy , Sustainable Land Management Eligibility All sectors including agriculture, forestry and land use, industry and power generation, and overall climate compatible development planning Funding Objectives CDKN supports decision-makers in designing and delivering climate compatible development. By combining research, advisory services and knowledge-sharing in support of locally owned and managed policy processes, CDKN works in partnership with decision-makers in the public, private and non-governmental sectors nationally, regionally and globally. CDKN is a cooperative project catalysed by the Governments of the Netherlands and the United Kingdom. Financing Mechanisms 1. Grants for high quality, evidence-based research on climate compatible development themes Research is demand-driven, primarily by developing country governments, with additional expert inputs in its design. The research programme identifies where substantive knowledge gaps exist and seeks to fill these with robust, high quality research. CDKN supports research into a wide range of climate and development issues in order to respond to the breadth of demand, but CDKN’s research calls will develop specific expertise on a number of key themes. 2. Technical Assistance support to developing countries governments Technical assistance is offered primarily to developing country governments; in some cases, technical assistance to multilateral and international bodies will be considered. A range of short (3-12 months) and longer-term (> one year) services are provided, including a rapid response service (4 weeks) for high priority, time-critical assistance. 3. Funding for innovative knowledge management and partnership activities Strengthening understanding and access to information on climate and development issues is critical to CDKN's mission. The CDKN website carries details of current events and activities where CDKN welcomes partnership from interested organisations, such as the recent CDKN Action Lab, which stimulated innovative prototype projects among new partners in climate compatible development. There may be periodic announcements about competitive RFPs to deliver knowledge-sharing and information services; participation from developing country-based organisations is strongly encouraged. Application Procedures The procedures for applying for technical assistance from CDKN are outlined here on the CDKN website. The procedures for applying for research funding via open research calls or via CDKN’s research innovation fund can be found here. To enquire about financial assistance for knowledge management, communications and partnershipbuilding activities in climate compatible development, please contact [email protected]. Project Types As detailed above, project types fall into four broad categories: Research Technical Assistance Knowledge management and communications Partnerships CDKN funds projects in many sectors, including agriculture, low-carbon development, energy, forestry, and land use management. Decision-making structure The largest proportion of our expenditure, approximately 60%, is routed to our technical assistance projects. You may find details of our decision-making procedures for technical assistance projects on the CDKN website. The Research work programme calls upon scientific experts to review applications and shape the research strategy. CDKN as a whole is governed by a Network Council comprising senior level executives of its Alliance partners and its funding agencies, DfID (UK) and DGIS (Netherlands). The Alliance comprises Pricewaterhouse Coopers, Overseas Development Institute, Fundacion Futuro Latinoamericano, SouthSouthNorth, LEAD and INTRAC. Project Examples For more information on these and other CDKN projects, please visit the CDKN website. Planning for climate compatible development in the Caribbean Strengthening climate negotiation capacity in Pakistan Developing a strategic climate change framework for Rwanda Links CDKN homepage
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