Accelerating Cooperation Financing for Climate Technology An Update

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Accelerating Cooperation & Financing for Climate Technology An Update on the Activities of CTI

Accelerating Cooperation & Financing for Climate Technology An Update on the Activities of CTI PFAN CTI Side Event UNFCCC Climate Change Negotiations COP 15, Copenhagen Peter Storey 11 th December 2009

CONTENTS • Introduction – Rationale & Objectives of CTI PFAN • Brief Overview of

CONTENTS • Introduction – Rationale & Objectives of CTI PFAN • Brief Overview of CTI PFAN – What it is and how it works • Activity Highlights – Latin America connecting clean energy businesses with financing

INTRODUCTION (2) CTI PFAN is a Multi-Lateral Initiative: – Initiated by the CTI in

INTRODUCTION (2) CTI PFAN is a Multi-Lateral Initiative: – Initiated by the CTI in cooperation with EGTT – APP / REEEP / USAID / ICETT • CTI PFAN goals: – to accelerate technology transfer and diffusion under the UNFCCC, – to reduce greenhouse gas emissions, – to promote low-carbon, sustainable economic development, – to help facilitate the transition to a low-carbon economy, – to increase financing opportunities for promising clean energy projects connecting clean energy businesses with financing

RATIONALE FOR CTI PFAN • Lack of sufficient Public Funds to make an impact

RATIONALE FOR CTI PFAN • Lack of sufficient Public Funds to make an impact on Technology Transfer for Climate Change – Need for the Private Sector • Workshops in Montreal (2004) & Bonn (2005) – To develop an innovative solution to finance TT – Inclusion of Private Sector • Missing Middle – Lots of Projects / Lots of Investment connecting clean businesses with financing – Little & insufficient interaction &energy communication

CTI PFAN - INTEGRATED PROGRAM DESIGN How a multi-pronged approach can scale up clean

CTI PFAN - INTEGRATED PROGRAM DESIGN How a multi-pronged approach can scale up clean energy deployment Coaching & mentoring The Missing Middle: Lack of Access to Financing Seeking financing “PUSH” Policy Dialogue (barriers and solutions) Clean Energy Businesses & Projects Government (policies) Seeking projects / businesses Investment Sources (Financiers, Banks) ¥€$ “PUSH” Training Financial Institutions connecting clean energy businesses with financing

WHAT IS CTI PFAN? • Informal Network of Financing Professionals – Private Sector Companies

WHAT IS CTI PFAN? • Informal Network of Financing Professionals – Private Sector Companies / Individuals – Investors & Financiers: range from philantropic to VC & banks – Financing Advisors & Technical Consultants – Organised under umberella of CTI • Commmon interest in providing finance & financing services to climate friendly projects to support technology transfer connecting clean energy businesses with financing – Developing Country Experience & Appetite

CTI PFAN’S FUNDING PARTNERS CTI PFAN NETWORK MEMBERS Management Consultant Regulatory Economics & Finance

CTI PFAN’S FUNDING PARTNERS CTI PFAN NETWORK MEMBERS Management Consultant Regulatory Economics & Finance FE CLEAN ENERGY GROUP INC.

WHAT SERVICES DOES CTI PFAN OFFER? • CTI PFAN provides support & advice to

WHAT SERVICES DOES CTI PFAN OFFER? • CTI PFAN provides support & advice to selected projects to help them meet the criteria of the Investment Community • Free coaching service to project sponsors & developers to help them raise pivate sector finance – Project Development / Commercial & Financing Structure – Marketing / Technical Issues / Growth Strategy – Sourcing Equity & Debt energy businesses with financing – Preparation of Businessconnecting Plans, clean Investment &

HOW DOES IT WORK? • 2 Project Identification & Selection Streams • Mainstream Devlopment

HOW DOES IT WORK? • 2 Project Identification & Selection Streams • Mainstream Devlopment Pipeline – Unsolicited Submission at any time (via UNFCCC / CTI / Network) – Induction review: rigourous but non-bureaucratic – PFAN Member assigned to project as dedicated Coach – 3 Further Reviews to guide project to Bankability & Financial Close – Report at the end of each Phase connecting clean energy businesses with financing

COSTS • PFAN Services are provided free to the project developer / sponsor –

COSTS • PFAN Services are provided free to the project developer / sponsor – Subject to selection • Cost of providing the PFAN Services is absorbed by the Funding Partners (CTI / USAID / APP / ICETT / REEEP etc). • Provision of services subsidised by the PFAN Members cleanpipeline energy businesses – Trade-off: access to theconnecting project forwith financing

PROJECT CRITERIA • Target Project Size: USD 1 – 50 million total investment volume

PROJECT CRITERIA • Target Project Size: USD 1 – 50 million total investment volume – Smaller & larger projects possible – Ca 15% of portfolio for Micro-Projects (< USD 1 million) • Typical Project Type: CE / RE mitigation projects for generation of power or production of biofuels – Wind, Solar, Geothermal, Biomass, Biofuels, Small Hydro – PFAN is technology neutral connecting clean energy businesses with financing – Open for EE, Adaptation & Upstream Technology

EVOLUTION OF CTI PFAN • Apr 2006 – Sep 2008: Small Scale Pilot Program

EVOLUTION OF CTI PFAN • Apr 2006 – Sep 2008: Small Scale Pilot Program – Ca 65 projects analysed – 12 Projects inducted – 2 Financial Closures raising USD 35 million – 5 projects carried into main programme • Dec 2007: recognition / endorsement by COP 13 decisions – (4 / CP. 13) clean energy financing • 2008: further Financialconnecting Closures in businesses Southwith Africa

ACTIVITY HIGHLIGHTS - Latin America • Consolidation of Regional Network – On the ground

ACTIVITY HIGHLIGHTS - Latin America • Consolidation of Regional Network – On the ground coverage in Brazil, Chile, Columbia & Mexico. – Other Countries eligibile – Launch of Caribbean SIDs planned for 2010 • Development Pipeline Highlights – 8 projects in Pipeline / USD 132 million of investment – Target Handling Capacity: 30 clean – 40 energy projects 3 connecting businessesover with financing

ACTIVITY HIGHLIGHTS - Asia • Aggressive Expansion of Network in Asia – Launch of

ACTIVITY HIGHLIGHTS - Asia • Aggressive Expansion of Network in Asia – Launch of Regional Asian Network in early 2009 – Dedicated Networks in China, India, Indonesia & Philippines • Development Pipeline Highlights – 36 Projects in Development Pipeline / > USD 2 billion investment – Handling Capacity: 70 – 90 projects over 3 yrs to End 2012 connecting clean energy businesses with financing

CTI PFAN ASIA Recent Successes • USD 30 Million raised for a 12 MW

CTI PFAN ASIA Recent Successes • USD 30 Million raised for a 12 MW Biomass Powerplant in the Philippines – Phase 1 of a 4 phase 246 MW total project – Annual GHG Reduction of Phase 1 = 40. 000 t CO²e – Innovative Project Structure – CTI PFAN helped ASEA One develop its business plan, introduced the investor and facilitated deal negotiations. Forum Finalist • SURE Inc, Philippines – USD 1, 1 million under negotiation connecting clean energy businesses with financing

ACTIVITY HIGHLIGHTS - Africa • Active since May 2009 (low level operations during 2008)

ACTIVITY HIGHLIGHTS - Africa • Active since May 2009 (low level operations during 2008) • Regional Network Coverage – All countries in the Region eligible – PPL International as Regional Coordinator • Dedicated Country Networks in Mozambique & Uganda • Development Pipeline Highlights – 1 project closed / USD connecting 1 - 5 million leveraged clean energy businesses with financing

AFRICA PROJECT SAMPLES • Gasification of Coconut Husks in Northern Mozambique – Isolated Fishing

AFRICA PROJECT SAMPLES • Gasification of Coconut Husks in Northern Mozambique – Isolated Fishing Villages – Establishment of Cold & Logistics Chain to get fish to cash markets – 6 Village Pilot – 200 village target / 800 village potential @ 1000 tonnes / village • Solar Rural Electrification & Lighting in Uganda – Transfer of successful model from Laos connecting clean energy businesses with financing

CONTACTS • General Enquiries / Membership etc – Peter Storey, Global Co-ordinator (peter. storey@ppl-int.

CONTACTS • General Enquiries / Membership etc – Peter Storey, Global Co-ordinator (peter. [email protected] com) – Taiki Kuroda, Head of CTI Secretariat ([email protected] or. jp) • Asia – Suneel Parasnis, Regional Manager ([email protected] net) connecting clean energy businesses with financing