assisting countries with access to international cllimate...
TRANSCRIPT
2/11/2016
Inter-American Development Bank
Infrastructure and Environment Sector
Climate Change and Sustainability Division
Assisting countries with
access to international
cllimate finance
Climate Change and
Sustainability Division
Amal-Lee Amin and Gloria Visconti
Inter-American Development Bank | Climate Change and Sustainability
Source: climatefundsupdate.org
Complex International Climate Finance
Architecture
Inter-American Development Bank | Climate Change and Sustainability 3
Blending and/or combining financial sources for
greatest impact
Public and private
Can be reimbursable and/or non reimbursable
Diverse business models and specificities Key characteristics
Inter-American Development Bank | Climate Change and Sustainability
In 2016 the IDBG increasing focus on:
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• Assisting economic and financial decision-makers on integration of climate
into national budgets and pathways that maximize opportunities and
minimizing risks
• Building on countries NDCs to develop strategic and programmatic
approaches towards attracting and mobilizing finance
• Strengthening engagement and dialogue between multi-stakeholders and
increasing leverage between public and private sector activities
• Wider use of innovative use of instruments for risk-sharing to mobilize
private investment, including leveraging capital markets for sustainable
infrastructure
.
Inter-American Development Bank | Climate Change and Sustainability
SECCI - COLOMBIA SOSTENIBLE
• Systemic approach to address climate change
and SDGs alongside social inequality and post
conflict challenges
• 15 years = 3 x 5 year phases
• Ministry of Finance created a fiduciary account
• Fundraising objective: $600 million dollars of
new international resources
• $1.9 billion dollar fund that includes domestic
and international resources
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SUPPORTING
COUNTRIES
READINESS
Inter-American Development Bank | Climate Change and Sustainability
IDB Regional GCF Support for LAC
Resources from the Nordic Development
Fund (NDF) USD531.000 and IDB SECCI
fund USD500,000.
Participating countries - NDF: Guatemala,
El Salvador, Honduras, Nicaragua, Costa
Rica and Bolivia; SECCI: Chile, Ecuador,
México, Panamá, and Paraguay
IDB will offer tailored technical support to
prepare to, and access GCF resources,
based on countries specific needs
Availability of resources per country is
aprox. USD70.000.
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• Support to NDAs: Sharing information on GCF opportunities and requirements, to a diverse range of stakeholders, through workshops and the preparation of relevant materials.
• Support to potential NIEs seeking accreditation to the GCF (On-demand).
Information and knowledge sharing
• Identification and prioritization of a project pipeline to be submitted to the GCF.
• Aligned with National Plans (development & CC), INDCs, NCCs, NAMAs, BURs, etc.
Identification and prioritization of projects
• Technical support in the preparation of full funding proposal for the GCF.
• Support in the preparation of technical and financial feasibility studies.
Detailed design of projects
Inter-American Development Bank | Climate Change and Sustainability
IDB Support for the accreditation of National
Implementing Entities (NIEs) to the GCF
Support to National Development Banks (NDBs) for the efficient and effective management
of the Environmental & Social risks in their credit operations: 9 NDBs have received support,
including FIRA and NAFINSA in Mexico.
Technical workshops:
- IDB, NAFIN, ALIDE y ECLAC: “NDBs and Green Finance – Opportunities and
Modalities to access the GCF – Lessons Learned from Green Funds” . April2015
- IDB, ALIDE: “Financing Adaptation Investments - Evolving lessons, challenges and
opportunities”. October 2015
- “Latin Carbon Forum”. September 2015
Publication: “Managing Environmental and Social Risks: A Roadmap for National
Development Banks in Latin America and the Caribbean”.
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Inter-American Development Bank | Climate Change and Sustainability
GCF Readiness Programme
The GCF Readiness Programme has 5 activities:
1.Strengthening the GCF NDA and Focal Point
2.Preparation of a Strategic Framework
3.Support for the accreditation of National Implementing Entities (NIEs)
4.Pipeline development
5.Information and experience sharing
For activities 1&2 countries can access up to USD300,000. A standardized
package for actions and budget is available for these activities.
Countries can access GCF readiness funding up to USD1,000,000 per calendar
year.
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CONCLUDING
REMARKS
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Inter-American Development Bank | Climate Change and Sustainability
Partnering for more coherent (and accessible)
international ecosystem for climate finance
• Continued MDB and in-country collaboration to increase transparency and
accountability focusing on:
• Enhanced tracking of adaptation finance and public expenditure
• Assessing mobilized private finance
• Voluntary Principles for Mainstreaming Climate within 26 Financial Institutions
Principle 1: COMMIT to Climate Strategies
Principle 2: MANAGE Climate Risks
Principle 3: PROMOTE Climate Smart Objectives
Principle 4: IMPROVE Climate Performance
Principle 5: ACCOUNT for your Climate Activities
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Inter-American Development Bank | Climate Change and Sustainability
Summary on key areas of focus
Assist institutions with capacity & learning
Catalysing new markets
Risk-sharing & confidence building
• Support Governments with policy and regulatory design
• Strengthened institutions and arrangements
• Risk-sharing to develop green markets faster: Removing barriers Addressing risks Market enabling activities
• Innovate with new products such as green equity co-investment and policy risk insurance
• Riskier and often smaller projects – EE and RE can provide higher value investments
Enhancing international ecosystem
• Collaborate for harmonisation of investment criteria and frameworks for monitoring & evaluation
• Mobilizing new actors e.g. securitisation of green assets to develop liquid market
Let’s talk about climate change and sustainability
@BIDcambioclima | http://blogs.iadb.org/climatechange