Leveraging Private Investments by Public Climate Finance A
Leveraging Private Investments by Public Climate Finance A Global Forum on Climate Change Finance, Dec 2013
Trends and scales of international climate finance: some comparisons 16 USD billion 160 14 140 12 120 10 100 8 80 6 60 4 40 2 20 0 133. 5 bn 100 bn 0 2005 -06 2007 -08 2009 -10 Climate change mitigation: principal objective Climate change mitigation: upper bound estimate (principal+significant objective) Long Term Climate Total ODA by DAC Finance by 2020 Donors in 2011 Source: OECD
Climate Finance SOURCES BILATERAL as part of ODA MULTILATERAL World Bank, ADB etc DOMESTIC ALLOCATIONS within the context of UNFCCC PRIVATE DEVELOPING COUNTRIES Source: Lidy Nacpil, 2012
Climate Finance Flows Source: CPI
Leveraging Private Investments Export Credit Support ▒ Green Credit on the Rise (USD bn) 6. 0 CAGR 3. 7 4. 0 3. 0 2. 0 ▒ Green Credit by Sector 4% : +43. 5. 0 + Green Bond (for low-carbon & ecofriendly projects) Eligible Financing Sectors 5. 2 4. 1 2. 3 High-Tech Energy Efficiency 2. 3% Mitigation Renewable 49. 7% Energy 48. 0% 1. 2 New Energy Fuel Cell, Hydrogen Energy, etc. Renewable Energy Solar PV, Solar Thermal, Wind, Geothermal, Biomass, Biofuel, Hydro, Tidal, Wave, Waste Energy, etc. Mitigation 1. 0 0. 0 2009 2010 2011 2012 2013(E) High-Tech Energy Efficiency Water Supply, Water Sanitation, Waste Treatment, etc. LED, Smart Grid, HEV battery, etc.
Leveraging Private Investments • (Guarantee) KEXIM introduced Guarantee Program with EDCF to catalyze for private financing by mitigating critical government performance risks in developing countries. Indemnity Agreement Guarantee Agreement Project Approval Loan
Leveraging Private Investments • (Encouraging PPP scheme) In order to finance big infrastructure in collaboration with private investors, KEXIM tries to develop PPP financing scheme with EDCF • ODA Loan or Equity Subsidies/ Equity
Target Financing for Climate Change Pillars Climate Change related strategies, policies, etc. Policy Action Sectors Mitigation 1) 2) 3) 4) 5) Adaptation 6) Water 7) Integrated Coastal Management 8) Disaster Prevention 9) Forestry, Biodiversity and Agriculture 10) Transportation and Construction 11) Health Care Cross. Cutting Main Responsible Ministries Energy (Renewable Energy and Energy Efficiency) Transportation and Construction Forestry and Agriculture Waste Disposal CDM MONRE MOIT MOT, MOC, MOIT MARD MOC Related ministries MOC etc MARD, BCA etc MOT, MOC MOH 12) Assessment, Monitoring & Evaluation MOST 13) Financial Mechanism MOF, MPI 14) Mainstreaming CC issues to development planning MPI and Program Management of NTP-RCC and SP-RCC 15) Awareness Raising MOET and Human Resource Development 10 Ministries and agencies 35 Depts all together ! To build up overall capacity for climate change actions in cross sectors in the Government of Vietnam
Under the “Low Carbon, Green Growth” strategy, the proportion of Green ODA projects of KEXIM(EDCF) was maintained over than 30% in 2012. Green Growth 1. Introduction to EDCF 3 EDCF Policy Focus in 2012 Interest Discount by 0. 05%~0. 5%p in Green Growth such as Renewable energy, Energy efficiency, etc
Staying Focused on the Future THANK YOU Thank You
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