assisting countries with access to international cllimate...

2/11/2016

Inter-American Development Bank

Infrastructure and Environment Sector

Climate Change and Sustainability Division

Assisting countries with

access to international

cllimate finance

Climate Change and

Sustainability Division

Amal-Lee Amin and Gloria Visconti

Inter-American Development Bank | Climate Change and Sustainability

Source: climatefundsupdate.org

Complex International Climate Finance

Architecture

http://www.climatefundsupdate.org/listing

Inter-American Development Bank | Climate Change and Sustainability 3

Blending and/or combining financial sources for

greatest impact

Public and private

Can be reimbursable and/or non reimbursable

Diverse business models and specificities Key characteristics


In 2016 the IDBG increasing focus on:

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• Assisting economic and financial decision-makers on integration of climate

into national budgets and pathways that maximize opportunities and

minimizing risks

• Building on countries NDCs to develop strategic and programmatic

approaches towards attracting and mobilizing finance

• Strengthening engagement and dialogue between multi-stakeholders and

increasing leverage between public and private sector activities

• Wider use of innovative use of instruments for risk-sharing to mobilize

private investment, including leveraging capital markets for sustainable

infrastructure

.


SECCI - COLOMBIA SOSTENIBLE

• Systemic approach to address climate change

and SDGs alongside social inequality and post

conflict challenges

• 15 years = 3 x 5 year phases

• Ministry of Finance created a fiduciary account

• Fundraising objective: $600 million dollars of

new international resources

• $1.9 billion dollar fund that includes domestic

and international resources

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SUPPORTING

COUNTRIES

READINESS


IDB Regional GCF Support for LAC

Resources from the Nordic Development

Fund (NDF) USD531.000 and IDB SECCI

fund USD500,000.

Participating countries - NDF: Guatemala,

El Salvador, Honduras, Nicaragua, Costa

Rica and Bolivia; SECCI: Chile, Ecuador,

México, Panamá, and Paraguay

IDB will offer tailored technical support to

prepare to, and access GCF resources,

based on countries specific needs

Availability of resources per country is

aprox. USD70.000.

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• Support to NDAs: Sharing information on GCF opportunities and requirements, to a diverse range of stakeholders, through workshops and the preparation of relevant materials.

• Support to potential NIEs seeking accreditation to the GCF (On-demand).

Information and knowledge sharing

• Identification and prioritization of a project pipeline to be submitted to the GCF.

• Aligned with National Plans (development & CC), INDCs, NCCs, NAMAs, BURs, etc.

Identification and prioritization of projects

• Technical support in the preparation of full funding proposal for the GCF.

• Support in the preparation of technical and financial feasibility studies.

Detailed design of projects


IDB Support for the accreditation of National

Implementing Entities (NIEs) to the GCF

Support to National Development Banks (NDBs) for the efficient and effective management

of the Environmental & Social risks in their credit operations: 9 NDBs have received support,

including FIRA and NAFINSA in Mexico.

Technical workshops:

- IDB, NAFIN, ALIDE y ECLAC: “NDBs and Green Finance – Opportunities and

Modalities to access the GCF – Lessons Learned from Green Funds” . April2015

- IDB, ALIDE: “Financing Adaptation Investments - Evolving lessons, challenges and

opportunities”. October 2015

- “Latin Carbon Forum”. September 2015

Publication: “Managing Environmental and Social Risks: A Roadmap for National

Development Banks in Latin America and the Caribbean”.

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GCF Readiness Programme

The GCF Readiness Programme has 5 activities:

1.Strengthening the GCF NDA and Focal Point

2.Preparation of a Strategic Framework

3.Support for the accreditation of National Implementing Entities (NIEs)

4.Pipeline development

5.Information and experience sharing

For activities 1&2 countries can access up to USD300,000. A standardized

package for actions and budget is available for these activities.

Countries can access GCF readiness funding up to USD1,000,000 per calendar

year.

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CONCLUDING

REMARKS

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Partnering for more coherent (and accessible)

international ecosystem for climate finance

• Continued MDB and in-country collaboration to increase transparency and

accountability focusing on:

• Enhanced tracking of adaptation finance and public expenditure

• Assessing mobilized private finance

• Voluntary Principles for Mainstreaming Climate within 26 Financial Institutions

Principle 1: COMMIT to Climate Strategies

Principle 2: MANAGE Climate Risks

Principle 3: PROMOTE Climate Smart Objectives

Principle 4: IMPROVE Climate Performance

Principle 5: ACCOUNT for your Climate Activities

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Summary on key areas of focus

Assist institutions with capacity & learning

Catalysing new markets

Risk-sharing & confidence building

• Support Governments with policy and regulatory design

• Strengthened institutions and arrangements

• Risk-sharing to develop green markets faster: Removing barriers Addressing risks Market enabling activities

• Innovate with new products such as green equity co-investment and policy risk insurance

• Riskier and often smaller projects – EE and RE can provide higher value investments

Enhancing international ecosystem

• Collaborate for harmonisation of investment criteria and frameworks for monitoring & evaluation

• Mobilizing new actors e.g. securitisation of green assets to develop liquid market

Let’s talk about climate change and sustainability

@BIDcambioclima | http://blogs.iadb.org/climatechange

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