Webinar Joint Impact Model (JIM) 27 November, Den Haag Agenda - - PowerPoint PPT Presentation

Webinar Joint Impact Model (JIM)

27 November, Den Haag

Agenda

Intro About the Model Key Features and Methodology 1 2 3

2

Practical Implementation 4 Next Steps 5 Q+A 6

Joint Impact Model (JIM) – About the Model

27 November, London

Dire rect ct impact mpact is only a f fracti ction n of the tot

• tal

al impact mpact of a p projec ect Observi ving ng indirect direct impact t is challen enging ng and often n not

• t practi

ctica call lly feasibl sible Consist sistent nt and effici cient nt appr proach ch to assessing essing indire direct ct impact mpact

Why model indirect impacts?

4

Incre reased sed demand nd for trans nspa pare rency ncy and harmoni nisati sation Growing number r of users, , all with h differe rent nt appr proache ches Enables es opportuni tuniti ties es for collabora rati tion n and shared red learni ning ng Creates es opportuni tunity ty for ot

• ther

r users to assess ess their indirec direct t impact mpact

Why join together?

5

Our approach to JIM

6 OPEN ACCES S HARMONISED INPUT DATA HARMONISED MODEL / PLATFORM HARMONISED METHODOLOGY / ANALYTICAL FRAMEWORK

1 2 3 4 PROGRESSIVE HARMONISATION

Group

• up obje

jectiv tive:

• Develop

lop a single le model

• del by harmon

monisi ising met ethod hodology logy, , model

• del and

d input data. ta.

• Aligned

ed approa

• ach for our instit

itutio ions s to calc lcula late e and repor

• rt indir

irect impa mpact. t.

• Make it publicly

icly ava vaila ilable ble for a wide der group

• up of user

ers.

• Contin

tinue e to wo work across ss institu itution tions s and d exper erts s to further her refine ine and alig ign the mode del l espec ecial ially ly for Jobs

• bs and

d GHG emiss ssio ions, s, wher ere there is ongoi

• ing wo

work .

An Inp nput ut-Outp Output ut (I-O) model Models s fina nanci ncial flows s of project(s) ct(s) through ugh an economy These se fina nanci ncial flows s can be t trans nslat ated d into

• ot
• ther

er appropri

• priat

ate impact mpacts

Key features of model

7

Curre rrently ntly incl cludes: udes: Value added Emp mploym yment nt GHG emiss ssions ns

Final adjustments

Joint Impact Model (JIM) – Key Features and Methodology

27 November, Den Haag

Agenda

Key features Interface Methodology 1 2 3

9

Reveals indirect impacts Harmonised approach Transparent Combines best-practices Open access

What is the JIM?

10

1 2 3 4 5

What insights does the JIM provide?

11

VALU LUE E ADDED DED EMPL PLOYMEN ENT GHG G EMISSIO ISSIONS NS

• Salaries
• Taxes
• Profits
• Jobs for women
• Jobs for youth
• CO2 emissions
• Non-CO2 emissions

What is the scope of these insights?

12 Investee Suppliers Suppliers’ suppliers Customers

Sourcing goods & services Sourcing goods & services Providing goods & services Re-spending salaries Re-spending salaries

DIRECT RECT IMPA PACT CT ENAB ABLIN LING IMPACT ACT SUPPL PLY Y CHAIN AIN IMPA PACT CT INDU NDUCE CED D IMPA PACT CT Power & finance only

Impact for which observed data is often available Additional impacts that are modelled

Agenda

Interface Methodology Key features 1 2 3

13

How does the JIM work?

14

Input template Model calculations Results visualisations

Input template example

15

A full list of inputs and definitions will be published on www.jointimpactmodel.com

Results visualisation example

16

Job impact mpact

Agenda

Methodology Interface Key features 1 2 3

17

How does the JIM quantify results?

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CONSUMPTIO PTION N & EXPORTS

• f company outputs lead to

TRANSF SFER ERS

• f money between sectors leading to

Food processing Trade Manufacturing Mining & Quarrying Agriculture Transport Salaries Taxes Imports Profits/savings Government spending Manufacturing ... Trade Mining & Quarrying Agriculture Transport Private consumption Export Investments

From To

VALUE ADDED

GDP GDP INTERMED ERMEDIA IARY Y DEMA MAND CONSU SUMP MPTION ION & EXPORTS

… Food processing Output Output

VALUE E ADDED ED EMPLOYMEN MENT GHG EMISS SSIONS IONS

Employment GHG emissions

How does the JIM quantify results?

19

CONSUMPTIO PTION N & EXPORTS

• f company outputs lead to

TRANSF SFER ERS

• f money between sectors leading to

Food

• d proc
• ces

essing ing Trade Manufacturing Mining & Quarrying Agriculture Transport Salaries Taxes Imports Profits/savings Government spending Manufacturing Manuf nufactur cture e of plastics ics Trade Mining & Quarrying Agriculture Transport Private consumption Export Investments

From To

Manuf nufactur cture e of plastics ics Food

• d proc
• ces

essing ing Output Output

VALUE E ADDED ED EMPLOYMEN MENT GHG EMISS SSIONS IONS

Employment GHG emissions

10% 0% 5% 0% 20% 20% 10% 10% 10% 10% 5% 20% 100%

How does the JIM quantify results?

20

CONSUMPTIO PTION N & EXPORTS

• f company outputs lead to

TRANSF SFER ERS

• f money between sectors leading to

Food

• d proc
• ces

essing ing Trade Manufacturing Mining & Quarrying Agriculture Transport Salaries Taxes Imports Profits/savings Government spending Manufacturing Manuf nufactur cture e of plastics ics Trade Mining & Quarrying Agriculture Transport Private consumption Export Investments

From To

Manuf nufactur cture e of plastics ics Food

• d proc
• ces

essing ing Output Output

VALUE E ADDED ED EMPLOYMEN MENT GHG EMISS SSIONS IONS

Employment GHG emissions

0% 0% 15% 0% 0% 5% 10% 10% 5% 5% 50% 100%

Social al Ac Accounti nting ng Matri rices ces and GHG data for 121 countries and 65 sectors worldwide; Emp mploym yment nt data for 189 countries and 14 sectors worldwide; Various us indica dicator

• rs including GDP growth, private sector capital formation,

electricity consumption for 217 countries worldwide;

What data sources does the JIM use?

21

More complete impact insights Applicable to full portfolio Low data burden Explanatory value

Why an Input-Output methodology?

22

Methodological constraints Data source limitations Neglecting unique features of investments Dependency on revenue data Local impact only

What are key limitations?

23

Organisations have a need for quantifying indirect impact mpact We developed a model that enables organisations to obtain these insights It is a joint nt process for continuous improvement: the more parties contribute, the better the model becomes

The JIM

24

1 2 3

Joint Impact Model (JIM) - Practical application

27 November, Paris

From individual institutions approaches…

26

PROPAR ARCO CO CDC FMO

OBJECTIVES

• Estimate job and value

added by country and by RNE technology based on PROPARCO’s portfolio

• Propose an assessment

methodology that could be easily replicated

• Estimate job supported

by CDC’s portfolio to better understand employment impact

• Provide a methodology

that could be easily applied to entire portfolio

• Estimate jobs supported

by FMO’s projects

• Provide a methodology

that could be easily applied all investments APPLICABILITY

• Project level
• Ex ante assessment

during due diligence

• Portfolio level
• Monitoring
• New commitments level
• Ex ante assessment of

new investment CURRENT USE

• Investment decision
• Reporting
• Strategy learning &

decision making

• Monitoring
• Reporting
• Reporting

110 MW Wind project Total investment: 175 MEUR with a 25 MEUR Proparco loan 25 years of operation Total Construction expenditures: 147 MEUR (35% locally procured) Total Operation expenditures: 28.7 MEUR 50,4 MW Wind project Total investment: 127.2 MEUR with a 23.8 MEUR Proparco loan 20 years of operation Total Construction expenditures: 64.4 MEUR (15% locally procured) Total Operation expenditures: 62.8 MEUR

Examples of Power enabling impact

27

UKRA RAINE INE KENY ENYA TOTAL: L: 618 jobs bs

Operating impacts (20) Construction impacts (116) Second order growth impacts (481)

Value lue Ad Adde ded 8 MEUR UR

Agriculture (0.9) Manufacturing (3.4) Other industries (1.5) Services (2.7)

TOTAL: L: 15,106 jobs bs

Operating impacts (2,543) Construction impacts (135) Second order growth impacts (12,429)

Value lue Ad Adde ded 45 MEUR UR

Agriculture (3.6) Manufacturing (7.8) Other industries (11.1) Services (22.8)

> All sectors and different pathways to output > Backward effects and developing forward effects 1. Portfolio monitoring level 2. Confidence levels provided depending on:

• Granularity of input data (from must have to nice to have)
• Underlying multipliers (from modelled to case study estimates)

1. Joint reporting (careful when confidence levels are too different) 2. Joint learning & develop collective understanding of our impact 3. Improve strategic decision

…to The Joint Impact Model

28

SCOPE APPLICABILITY FUTURE USE Facilitate reporting for common client, Increase comparability of activities, Improve collectively.

www.jointimpactmodel.com

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