Green Climate Fund (GCF) Sabin Basnyat Senior Energy Efficiency - - PowerPoint PPT Presentation

Green Climate Fund (GCF)

Sabin Basnyat Senior Energy Efficiency Specialist/ Transport Lead

April 2, 2019

 GCF is a global fund created to support the efforts of developing countries to respond to the challenge of climate change.  GCF was set up in 2010 by the 194 countries who are parties to the UNFCCC, as part of the Convention’s financial mechanism.  The Fund seeks to promote a paradigm shift to low‐emission and climate‐resilient development, taking into account the needs of nations particularly vulnerable to climate change impacts.  We have a special focus on LDCs, SIDS, and African states (min. 50% of overall GCF adaptation funding).  GCF’s activities are aligned with the priorities of developing countries through the principle of country ownership.  A key innovation is to use public investment to stimulate private finance through the Fund’s dedicated Private Sector Facility.

Introduction to G CF

Country driven Climate impact focus Paradigm shift Public+ private Risk appetite to unlock ideas

G CF ’s Accreditation F ramework

 GCF works through a network of Accredited Entities (AEs) to channel its resources for projects and programs.  AEs comprise private and public, non‐governmental, sub‐national, national, regional or international entities.  Accreditation is a fit‐for‐purpose due diligence process ensuring our partners share the same objectives as GCF, and that they have extensive experience and a strong financial and managerial infrastructure.

Mandate & track record

• Alignment with GCF’s objectives
• At least three years of operations

Project size

• Micro (<USD 10M)
• Small (USD 10‐50 M)
• Medium (USD 50‐250M)
• Large (>USD 250M)

F iduciary functions

• Basic
• Specialized
• Project management
• Grant award
• On‐lending/blending (loans, equity, guarantees)

E nvironmental & social safeguards

• A/I‐1 (potential high impact)
• B/I‐2 (medium impact)
• C/I‐3 (minimal or no impact)

A Diverse Network

• f Partners

84

accredited entities

China

Direct Access Private Sector International Access

Building Global Partnerships

What kind of support GCF provides?

• Readiness funding
• Project preparation facility (PPF)
• Funding proposals (FP)
• Request for Proposals (RfP)
• Simplified Approval Process (SAP)

8 Results Areas

What do we look for?

Compliance with GCF Policies

• Fiduciary standards
• Risk Management
• ESS
• M&E Criteria
• Gender Policy
• Legal Standards

Additionality of GCF Funding

• Why GCF?
• Projects must crowd‐in

additional financing on top of GCF

Six Investment Criteria

1. Impact Potential 2. Paradigm Shift Potential 3. Sustainable development potential 4. Recipient needs 5. Country ownership 6. Efficiency & effectiveness

Strong Climate Rationale

• Climate Impact of

investment is key

• Scientific evidence to

provided

Completeness of documentation

• Feasibility study
• Financial Model
• Project Timetable
• Gender Analysis
• Environmental studies
• No‐objection letter

Country Driven Approach

• Alignment with NDCs
• Early country (NDA)

engagement

• No‐objection letter

Energy Transport Buildings, Cities, Industries Ecosystems Livelihoods of people & comm. Forests and land use Infrastructure Health, food and water security

Holistic Integrated Mobility Planning (HIMP)

Readiness funding

cap per country per year USD 1 million

• NDA strengthening
• Support for direct access entities (DAE)
• Country support for
• Strategic frameworks, including country programmes,
• concept notes,
• pre‐feasibility studies

cap per country (not per year) USD 3 million

• National adaptation plans (NAP) and / or other adaptation planning

processes

Project preparation funding

cap per request

$1.5M

• Support for project/ programme development
• Especially micro‐to‐small size projects
• Accredited entities submit requests
• Especially direct access
• No‐objection letter from NDA/focal point
• Executive director approves requests

What is Project Preparation Facility (PPF)

• To support project and programme preparation, especially for

micro‐to‐small category projects

• All accredited entities (AEs), especially direct accredited

entities, can request support from the PPF

• Each request will be subject to a cap of USD 1.5 million
• Proposals developed with PPF resources should be submitted

to the Board within two years after the PPF request was approved

What are the eligible PPF activities?

1. Pre‐feasibility and feasibility studies, as well as project design; 2. Environmental, social and gender studies; 3. Risk assessments; 4. Identification of programme/project‐level indicators; 5. Pre‐contract services, including the revision of tender documents; 6. Advisory services and/or other services to financially structure a proposed activity; and 7. Other project preparation activities, where necessary, provided that sufficient justification is available.

Examples of Transport PPF

Bhutan Indonesia Entities World Bank/ Green Technology Center Korea PTSMI Title Green Transport System Intregrated BRT Components Electric Bus fleet Hybrid/ PHEV/ EV buses Route Infrastructure Route Infrastructure Non Motorized transport Non motorized transport Smart bus system with GPS, payment, information PPF Amount $1,258,000 (GCF‐ $788,000 ) $1,526,543 (GCF‐ $526,311)

How is the funding proposal process

› Pakistan

Sources (USD mil)

GCF financing going towards

• Incremental cost of the

buses

• Installation of Bio‐gas

facility

• Climate proofing the road
• Last mile connectivity

GCF Loan 37.2 GCF Grant 11.8 ADB 442 Govt of Pakistan (Grants) 92.5 Total 583.5

1 : 11

Mitigation 2.6 MtCO2e (lifetime)

Co‐financing Ratio ESS

A

Climate Impact

Modal Shift towards 0‐emission mass transit coupled innovation on technology and financing

GCF‐ ADB‐Green BRT Karachi

Project Description › The BRT will use 0‐GHG emission biomethane hybrid buses a world first. › Produce its own biogas from cattle waste to cover 100% of the methane demand from BRT buses. › Public Procurement for Private Sector Operation › Bulk procurement of buses to be leased to Private operators on a full TCO basis › Capacity building for the TransKarachi ( Main bus operator for the Province of Singh) on; › Operation and Maintenance › Bus Control system – Hub management system › Bus routing systems and information management › Smart fare collection system › Bus station management system

√

Thank You

If any questions please email: sbasnyat@gcfund.org

• Contribution to the shift to low‐emission sustainable development

pathways

• Contribution to increased climate‐resilient sustainable development

Impact potential

• Innovation
• Contribution to the creation or strengthening of knowledge,

collective learning processes, or institutions

• Sustainability of outcomes and results
• Potential for strengthened regulatory frameworks and policies
• Potential for expanding the proposal’s impact

Paradigm shift

• Expected positive environmental impacts
• Expected positive social and health impacts
• Expected positive economic impacts
• Potential for reduced gender inequalities

Sustainable development potential

Investment Framework Criteria

Investment Framework Criteria

• Scale and intensity of exposure of people, and social/economic assets to risks
• Comparably high vulnerability of the beneficiary groups
• Level of social and economic development of the country and target population
• Opportunities for the GCF to overcome specific barriers to financing
• Opportunities to strengthen institutional capacity in relevant institutions

Needs of the recipient

• Objectives are in line with priorities in the country’s national climate strategy
• Experience and track record of the Accredited Entity or executing entities in key elements of the

proposed activity

• Stakeholder consultations and engagement

Country

• wnership
• Financial adequacy and appropriateness of concessionality
• Cost‐effectiveness (mitigation only)
• Potential to catalyse and/or leverage investment (mitigation only)
• Expected economic/financial internal rate of return Financial viability in the long run
• Application of best practices and degree of innovation

Efficiency and effectiveness