James Harries Presentation subtitle The Climate Finance Accelerator

James Harries Presentation subtitle

The Climate Finance Accelerator • Supporting Nigeria, Colombia and Mexico (with Viet Nam observing) • Multi-stakeholder delegations to London workshop • Transaction-focussed approach aimed at projects contributing to NDCs • Paired with Deutsche Asset Management, BNP Paribas and HBSC For more information visit: https: //ee. ricardo. com/climate-finance-accelerator

Nigeria’s NDC “Intended” NDC Sectoral Action Plans Financing the NDC • Diversification of the economy and sustainable growth • Ensuring social and economic inclusion and job creation • Climate-smart sustainable development (NDC and SDGs) • Powering the economy • Sustainable Energy 4 All • National Renewable Energy Action Plan • Rural Electrification Strategy and Implementation Plan

The UK-Nigeria Climate Finance Accelerator • First in-country CFA initiative, funded by UK Government and CIFF • Announced by Prime Minister Theresa May on her visit to Abuja in Aug ‘ 18 • Projects supported are seeking around US$500 m in investment, ranging from US$5 m to more than US$150 m • Wide variety of technologies including solar power, hydro, biogas, energy from waste, smart agriculture, reducing gas flaring and avoided deforestation.

UK-Nigeria CFA – outcomes and insights Outcomes • Positive feedback from project developers, finance & Government • High level participation from 4 of Nigeria’s largest commercial banks • Outline term sheets for 13 projects looking for investment of USD 500 m • Five projects (total USD 80 m) have already prequalified to receive guarantee instruments • Proposal developed for a sustainable national CFA process • Mapping of climate/green finance sector now underway Lessons learned • Lagos private finance sector very keen to fund low-carbon projects • Project developers need more training especially on financial structures • CFA provided an entry point for engagement but sustained coordination needed to create effective network • DFIs and MDBs must play a more pro-active role • Opportunity to strengthen links between Lagos and global green finance hubs

Quote from a participating bank “The CFA helped us expand our network of key stakeholders within the Climate Finance space, while deepening our understanding of the nascent market and unlocking new deal opportunities available for funding for us as a bank”

The NDC ‘cycle’ • Private sector involvement needs to be at every stage of the cycle. • Focus so far - NDC implementation and investment. • But what about the role in increasing ambition? Develop NDC Feed into updates of existing NDC or production of next NDC Implement NDC Track progress in implementation and achievement of NDC (transparency)

New and updated NDCs • Enhanced ambition • More challenging target. • Expanding the scope of the target to cover more sectors or gases. • Changing a conditional target to an unconditional target. • Changing the emphasis of an existing target. • Other options: • Adding new policies and measures to meet the target. • Committing more support to climate action. • Developing more robust transparency systems. • Reporting on progress since the existing NDC was first submitted. • Setting out improved governance structures. Challenge – how to encourage enhanced ambition when most countries are still focused on implementation of the existing NDC