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GEF 4 Climate GEF 4 Climate Change Strategy and Change Strategy and ProgramsPrograms

May 14, 2007May 14, 2007

Richard HosierRichard Hosier


Goal StatementGoal Statement

““The GEF will finance agreed The GEF will finance agreed and eligible and eligible enabling, enabling,

mitigationmitigation, and , and adaptation activitiesadaptation activities in in

eligible recipient countries” eligible recipient countries” (1995, GEF Operational (1995, GEF Operational

Strategy, p 31). Strategy, p 31).


Climate Change Climate Change Operational ProgramsOperational Programs Removing barriers to Energy Removing barriers to Energy

Efficiency (OP5)Efficiency (OP5) Removing barriers to Renewable Removing barriers to Renewable

Energy (OP6)Energy (OP6) Reducing the Long-term Costs of Reducing the Long-term Costs of

Low GHG Emitting Energy Low GHG Emitting Energy Technologies (OP7)Technologies (OP7)

Sustainable Transport (OP11)Sustainable Transport (OP11)


What is GEF’s Role or What is GEF’s Role or Comparative Comparative Advantage?Advantage? Market TransformationMarket Transformation

Adoption of Innovations: Market Transformation

Time

Sa

tura

tion

%

Early Entry-Phase I

Market Take-off- Phase II

Market Saturation or Maturity-Phase III


Climate Change Climate Change MitigationMitigation Mission of GEF in CC Mission of GEF in CC

Mitigation:Mitigation: To develop and To develop and transform the markets for energy transform the markets for energy and mobility in developing and mobility in developing countries so that they will be able countries so that they will be able to grow and operate efficiently to grow and operate efficiently toward a less carbon-intensive toward a less carbon-intensive path path


GEF-4 Strategic Objectives: GEF-4 Strategic Objectives: Energy EfficiencyEnergy Efficiency

Strategic Objectives Expected ImpactsEnergy Efficient Buildings and Appliances (OP5)

To promote widespread adoption of energy-efficient technologies and

practices in the appliance and building sectors

Industrial Energy Efficiency (OP5)

To promote the deployment and diffusion of energy-efficient technologies and practices in industrial production and

manufacturing processes

Rehabilitation of Power Plants (OP5)

To improve the efficiency and performance of existing power plants in

order the reduce the CO2 emissions from electricity generation


GEF-4 Strategic Objectives: GEF-4 Strategic Objectives: Renewables, Low GHG, & Renewables, Low GHG, & TransportTransportOn-Grid Renewable Energy (OP6)

To promote the supply and demand for grid electricity from renewable sources

Off-Grid Renewable Energy (OP6)

To promote the use of renewable energy for the provision of rural energy services

Emerging Low-GHG Emitting Electricity Generating Technologies (OP7)

To support the deployment of new, low-GHG emitting energy technologies by

aggregating demand for the technologies in niche applications and facilitating technological access and innovation

Market Transformation for Sustainable Mobility (OP11)

To facilitate GHG reduction through market transformation for sustainable

mobility in urban areas


GEF-4 Replenishment GEF-4 Replenishment August 2006August 2006 Covers Period FY 2007-2010Covers Period FY 2007-2010 Provides Total US$3.13 bProvides Total US$3.13 b Climate Change Focal Area Climate Change Focal Area

Allocation US$1 b ($960m)Allocation US$1 b ($960m) Largest GEF Replenishment to Largest GEF Replenishment to

DateDate


GEF-4 Policy GEF-4 Policy RecommendationsRecommendations In CC & BD, Resource Allocation In CC & BD, Resource Allocation

Framework AdoptedFramework Adopted 75% of Funds to largest ~30 emitters75% of Funds to largest ~30 emitters $140m to 110 group countries ($1m)$140m to 110 group countries ($1m) $45m regional/global set aside$45m regional/global set aside Be reviewed after 2 yearsBe reviewed after 2 years Other focal areas to adopt RAF for GEF-5Other focal areas to adopt RAF for GEF-5

Develop private sector strategyDevelop private sector strategy Focal area strategies to be reviewed Focal area strategies to be reviewed

and revised— FOCUS for IMPACTand revised— FOCUS for IMPACT


Strategy Revision Strategy Revision ProcessProcess Formation of Technical Advisory GroupFormation of Technical Advisory Group

– STAP, FCCC, 3 nominated ExpertsSTAP, FCCC, 3 nominated Experts– Series of virtual meetings (7Series of virtual meetings (7thth in progress) in progress)– Make Recommendations to SAGMake Recommendations to SAG

Formation of Strategy Advisory GroupFormation of Strategy Advisory Group– Sr. Experts, plus one member of each TAGSr. Experts, plus one member of each TAG– Chaired by GEF CEOChaired by GEF CEO– Focuses on getting strategy correct for Focuses on getting strategy correct for

GEF as a wholeGEF as a whole Strategies Being Revised, Reviewed for Strategies Being Revised, Reviewed for

Presentation to June CouncilPresentation to June Council


Starting Point for Starting Point for Strategy Review Strategy Review ProcessProcess1. Energy Efficient Buildings and Appliances

(OP5)2. Industrial Energy Efficiency (OP5)3. Rehabilitation of Power Plants (OP5)4. On-Grid Renewable Energy (OP6) 5. Off-Grid Renewable Energy (OP6)6. Emerging Low-GHG Emitting Electricity

Generating Technologies (OP7)7. Market Transformation for Sustainable

Mobility (OP11)


Issues requiring Re-Consideration: Issues requiring Re-Consideration: Rehabilitation of Power Plants

Focusing on existing coal plants and Focusing on existing coal plants and technologies, not new technologiestechnologies, not new technologies

World Bank CEIF estimates needs for World Bank CEIF estimates needs for Clean Coal > $10b (new technology)Clean Coal > $10b (new technology)

With $200m available funds, cannot do With $200m available funds, cannot do justice to issuejustice to issue

Will fund existing pipeline projects, but Will fund existing pipeline projects, but not make a focus for GEF-4not make a focus for GEF-4

Continue to work with WB to obtain Continue to work with WB to obtain more funding for CEIFmore funding for CEIF


Issues requiring Re-Consideration: Issues requiring Re-Consideration: Off-grid Renewable EnergyOff-grid Renewable Energy

From 1991-2004, GEF had supported off-grid From 1991-2004, GEF had supported off-grid RE projects—largely PV RE projects—largely PV

Markets never took off as anticipated (few Markets never took off as anticipated (few exceptions)exceptions)

GHG benefits minimalGHG benefits minimal Energy access relates more to development Energy access relates more to development

agenda, not CC agendaagenda, not CC agenda GEF initiated support, lessons learned—for now GEF initiated support, lessons learned—for now

can pass the ball to development assistancecan pass the ball to development assistance New era—intensification of concern about GHG New era—intensification of concern about GHG

emissionsemissions


Issues requiring Re-Consideration: Issues requiring Re-Consideration: Emerging Low-GHG Emitting Energy Emerging Low-GHG Emitting Energy Technologies (OP7)Technologies (OP7) Experience has been poorExperience has been poor Locking up large sums of money for projects Locking up large sums of money for projects

that are not implementedthat are not implemented Imposing extra costs and risks on developing Imposing extra costs and risks on developing

country energy systemscountry energy systems Very difficult to transfer unproven, pre-Very difficult to transfer unproven, pre-

commercial technologiescommercial technologies GEF put in place of picking technological GEF put in place of picking technological

winnerswinners Requires incremental investment support—if Requires incremental investment support—if

GEF were 10X as bigGEF were 10X as big Conclusion: For GEF-4 not a priorityConclusion: For GEF-4 not a priority

– Periscope? New, new thing?Periscope? New, new thing?


Issues requiring Re-Consideration: Issues requiring Re-Consideration: Need for Special Attention to Modern Need for Special Attention to Modern BiomassBiomass

Modernizing biomass may have Modernizing biomass may have elements of both RE & EEelements of both RE & EE

As part of GEF approach to Forests, CC As part of GEF approach to Forests, CC global benefits derive from biomass global benefits derive from biomass energyenergy

Need for safeguards if new, dedicated Need for safeguards if new, dedicated biomass/biofuel fuel supplies are to be biomass/biofuel fuel supplies are to be used (not just waste streams)used (not just waste streams)

Easier link to Land Degradation—require Easier link to Land Degradation—require info re carbon in other focal areasinfo re carbon in other focal areas


GEF-4 Strategic GEF-4 Strategic Programs & OutcomesPrograms & OutcomesEnergy Efficient Buildings ($180m)

Increased market penetration of energy-efficient technologies, practices, products, and materials in the residential and commercial building markets due to creation of favorable market conditions

Industrial Energy Efficiency($180m)

Increased deployment of energy-efficient technologies and adoption of energy-saving practices due to creation of favorable market conditions

Renewable Energy($300m)

Growth in markets for renewable power in participating program countries due to creation of favorable market conditions

Sustainable Energy from Biomass($100m)

Adoption of modern and sustainable practices in biomass production, conversion and use for modern energy due to transformed market conditions

Sustainable Transport($150m)

Innovative sustainable transport systems promoted, created, and adopted. Population in targeted urban areas make greater use of less GHG-intensive transport modes due to transformed market conditions


Intensified Focus on Intensified Focus on Reducing EmissionsReducing Emissions

RAF Focuses GEF resources in high RAF Focuses GEF resources in high emitting countriesemitting countries

Measurement of GHG emission Measurement of GHG emission avoidanceavoidance

IEA Alternative Scenario, emissions IEA Alternative Scenario, emissions reductions come fromreductions come from

Fossil-fuel efficiency, especially transport (36%)Fossil-fuel efficiency, especially transport (36%) Electricity end-use efficiency (29%)Electricity end-use efficiency (29%) Power sector efficiency (13%)Power sector efficiency (13%) Increased use of renewables (12%)Increased use of renewables (12%)


New GEF Role: “Ban the Bulb” New GEF Role: “Ban the Bulb” or Phase out the Incandescent or Phase out the Incandescent Light BulbLight Bulb Incandescent technology unchanged in 125 yearsIncandescent technology unchanged in 125 years

– Efficiency can be improved by 4-5 timesEfficiency can be improved by 4-5 times– Final technology unclear—performance standards (w/lm)Final technology unclear—performance standards (w/lm)

Britain, California, Australia, & others taking Britain, California, Australia, & others taking initiativeinitiative

GEF’s roleGEF’s role– IFC/GEF early work on CFL’sIFC/GEF early work on CFL’s– UNEP/UNDP collaborating on global initiativeUNEP/UNDP collaborating on global initiative– GEF Public/Private Partnership speaking with GEF Public/Private Partnership speaking with

manufacturersmanufacturers– GEF bring in developing countries thru policyGEF bring in developing countries thru policy– CDM can replicate—OSRAM has CFL methodologyCDM can replicate—OSRAM has CFL methodology

CAN UNFCCC get behind it and help create CAN UNFCCC get behind it and help create pressure to do something?pressure to do something?


Climate Change Climate Change AdaptationAdaptation Mission of GEF in CC AdaptationMission of GEF in CC Adaptation:: To To

assist developing countries in piloting assist developing countries in piloting how to address the adverse impacts of how to address the adverse impacts of climate change, including variability, by climate change, including variability, by supporting projects that: identify and supporting projects that: identify and implement suitable adaptation implement suitable adaptation measures; build adaptive capacity; and measures; build adaptive capacity; and reduce vulnerability and increase reduce vulnerability and increase ecosystem resilience to the adverse ecosystem resilience to the adverse impacts of climate change, including impacts of climate change, including variabilityvariability


GEF Strategic Pilot on GEF Strategic Pilot on Adaptation (SPA)Adaptation (SPA) Established by GEF Council in response to Established by GEF Council in response to

Decision 7/CP.7Decision 7/CP.7 Approach: Supporting the additional costs Approach: Supporting the additional costs

of projects that build capacity to implement of projects that build capacity to implement adaptation measures that increase adaptation measures that increase resilience to the adverse impacts of climate resilience to the adverse impacts of climate change in all focal areas in which GEF change in all focal areas in which GEF operationsoperations

Set aside $50m from CC Focal Area to pilot Set aside $50m from CC Focal Area to pilot concrete adaptation activitiesconcrete adaptation activities– $27m allocated during GEF3$27m allocated during GEF3– $23m remaining for GEF4 (from regional set $23m remaining for GEF4 (from regional set

aside)aside)


Strategic objective and Strategic objective and Outcomes: AdaptationOutcomes: AdaptationStrategic Priority on Adaptation (SPA): Piloting an Operational Approach to Adaptation

To support pilot and demonstration projects that

both address local adaptation needs and generate global

environmental benefits in the focal areas in which the GEF works: biodiversity, climate change, international waters,

land degradation, and persistent organic pollutants

(POPS)


Adaptation within GEF Adaptation within GEF Trust Fund: Next StepsTrust Fund: Next Steps Mainstreaming adaptation into Mainstreaming adaptation into

GEF focal areasGEF focal areas Development of adaptation screening Development of adaptation screening

toolstools Tools to be developed for all focal areasTools to be developed for all focal areas All projects will have to screen for All projects will have to screen for

vulnerability and take action to modify vulnerability and take action to modify design to protect against climate changedesign to protect against climate change

Evaluation of the SPAEvaluation of the SPA Council to consider/decide on next stepsCouncil to consider/decide on next steps


Climate Change Climate Change Adaptation: Avenues of Adaptation: Avenues of SupportSupport Special Climate Change FundSpecial Climate Change Fund

– Adaptation $60m and technology transfer Adaptation $60m and technology transfer $5m$5m

– Allocations of $12m to dateAllocations of $12m to date– Pipeline commitments of additional $56mPipeline commitments of additional $56m– Pent-up demand adaptation for dev’tPent-up demand adaptation for dev’t– Entertaining more pledges in JuneEntertaining more pledges in June

Least Developed Countries FundLeast Developed Countries Fund– NAPA’s and urgent and immediate NAPA’s and urgent and immediate

adaptation needs of LDC’sadaptation needs of LDC’s– Current $120m total pledgedCurrent $120m total pledged– $12m to NAPA’s$12m to NAPA’s– One concept (Bhutan GLOF) in pipelineOne concept (Bhutan GLOF) in pipeline


ConclusionsConclusions

CC Focal area is beginning work on 2 CC Focal area is beginning work on 2 FrontsFronts– In In mitigationmitigation arena, focusing support on arena, focusing support on

energy efficiency, renewables, biomass, & energy efficiency, renewables, biomass, & transporttransport

– In In adaptation adaptation arenaarena,, beginning new work beginning new work integrating cc adaptation needs into GEF integrating cc adaptation needs into GEF focal areas and developmentfocal areas and development

Download - G L O B A L E N V I R O N M E N T F A C I L I T Y - GEF 4 Climate Change Strategy and Programs May 14, 2007 Richard Hosier

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