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Module 3: Showcasing approved GCF projects

Module 3: Showcasing approved GCF projects. GCF Example : Universal Green Energy Access Programme , Africa (FP027). GCF Example: Universal Green Energy Access Programme , Africa (FP027). Source: GCF, FP027 landing website and funding proposal.

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Module 3: Showcasing approved GCF projects

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  1. Module 3: Showcasing approved GCF projects

  2. GCF Example: Universal Green Energy Access Programme, Africa (FP027)

  3. GCF Example: Universal Green Energy Access Programme, Africa (FP027) Source: GCF, FP027 landing website and funding proposal Contributing to universal access to electricity in Sub-Saharan Africa by scaling up investments in renewable energy from local financial markets and the international private sector. Summary • Approved: October 2016 • Duration: 15 years • Project/programme lifespan: 15 years Project owners • Accredited Entity: Deutsche Bank AktienGesellschaft (Deutsche Bank AG) • Executing Entity: The Universal Green Energy Access Program S.A.SIC-SICAV • Access Modality: International

  4. GCF Example: Universal Green Energy Access Programme, Africa (FP027) Source: GCF, FP027 landing website and funding proposal

  5. GCF Example: Universal Green Energy Access Programme, Africa (FP027) Source: GCF, FP027 landing website and funding proposal Key impact potential indicators: • Anticipated no. of people with increased resilience: not specified. Target group: Off-grid population in Sub-Saharan Africa forecasted to be 698 million in 2030. • Estimated cost per tCO2eq: US$ 41.53 / tCO2eq • Estimated GCF cost per tCO2eq removed: US$ 2.61 – US$16.61 / tCO2eq (depending on scenario). Project design • The target of UGEAP is to mitigate lifetime CO2e emissions by more than 50m tCO2e over the lifetime of the program by investing in renewable energy generation capacity and measured by CO2e emissions saved and delivering towards the target to increase the share of renewable energies in the energy mix of African economies.

  6. GCF Example: Universal Green Energy Access Programme, Africa (FP027) Source: GCF, FP027 landing website and funding proposal Specific objectives • Enabling local financial institutions to grow their financing activities of businesses in the clean energy sector through the supply of long term risk taking capital to local banks. • Tapping into the deep pool of international capital supply and triggering access to private capital at scale for clean energy supply to local end beneficiaries (households and (V)SMEs). • Increasing the efficiency of GCF’s capital which will be leveraged by a factor of 4, thereby providing a show-case for blended public-private finance in SSA. • Combining sustainable economic growth and climate change mitigation by financing clean energy supply. • Technology transfer and innovation by financing state-of-the art proven technology and thereby support the rapidly growing industry to gain scale. • Scalability of the business models and the related technologies due to high standardization and proven business cases in the national context.

  7. GCF Example: Line of Credit for Solar rooftop segment for Commercial, Industrial and Residential Housing sectors, India (FP081)

  8. GCF Example: Line of Credit for Solar rooftop segment for Commercial, Industrial and Residential Housing sectors, India (FP081) Source: GCF, FP081 landing website and funding proposal Enabling access to long-term, affordable finance for solar rooftop installation projects in commercial, industrial and residential housing sectors in India, including vulnerable communities. Summary • Approved:March 2018 • Duration:5 years • Project/programme lifespan: 20 years Project owners • Accredited Entity: National Bank forAgricultureand Rural Development (NABARD) • Executing Entity:TataCleantech Capital Limited • Access Modality: Direct (National)

  9. GCF Example: Line of Credit for Solar rooftop segment for Commercial, Industrial and Residential Housing sectors, India (FP081) Source: GCF, FP081 landing website and funding proposal

  10. GCF Example: Line of Credit for Solar rooftop segment for Commercial, Industrial and Residential Housing sectors, India (FP081) Source: GCF, FP081 landing website and funding proposal Key impact potential indicators: • Anticipated no. of people with increased resilience:not specified • Estimated cost per tCO2eq:US$47.96 / tCO2eq • Estimated GCF cost per tCO2eq removed:US$19.19 / tCO2eq Project design • Enabling access to long-term, affordable finance for solar rooftop installation projects in commercial, industrial and residential housing sectors in India, including vulnerable communities.  • The programme will enable access to long-term and affordable financing for the construction of 250 MW of rooftop solar capacity in India and thereby reduce emissions by 5.2 million tonnes of CO2 equivalent over 20 years.

  11. GCF Example: Line of Credit for Solar rooftop segment for Commercial, Industrial and Residential Housing sectors, India (FP081) Source: GCF, FP081 landing website and funding proposal Specific objectives • Support the GoI‘s initiative in fulfilling renewable energy targets by enabling access to solar rooftop developers to the required means of finance • Cater to the specific markets needs and be a facilitator to bridge existing gaps/current barriers in the rooftop solar sector • Create a viable economical model in the solar rooftop space and attract competitive financing in the currently unbanked sector

  12. GCF Example: Low-Emission Climate Resilient Agriculture Risk Sharing Facility for MSMEs, Guatemala, Mexico (FP048)

  13. GCF Example 6: Low-Emission Climate Resilient Agriculture Risk Sharing Facility for MSMEs, Guatemala, Mexico (FP048) Source: GCF, FP048 landing website and funding proposal Supporting the transition to low emission, climate resilient agriculture in Guatemala and Mexico through the creation of a risk sharing facility to unlock innovative and scalable financial instruments for MSMEs. Summary • Approved: October 2017 • Duration: 15 years • Project/programme lifespan: 15 years Project owners • Accredited Entity: IDB • Executing Entity:Financial Intermediaries and anchor corporations in the climate-smart agricultural and agroforestry sectors • Access Modality: International

  14. GCF Example 6: Low-Emission Climate Resilient Agriculture Risk Sharing Facility for MSMEs, Guatemala, Mexico (FP048) Source: GCF, FP048 landing website and funding proposal

  15. GCF Example 6: Low-Emission Climate Resilient Agriculture Risk Sharing Facility for MSMEs, Guatemala, Mexico (FP048) Source: GCF, FP048 landing website and funding proposal Key impact potential indicators: • Anticipated no. of people with increased resilience: 800,000 direct beneficiaries + at least 15 additional firms benefitting indirectly. • Estimated cost per tCO2eq: US$17.1 / tCO2eq • Estimated GCF cost per tCO2eq removed: US$2.1/tCO2eq Project design • Establishment of a risk sharing Facility that will unlock innovative and scalable financial instruments to support CSA investments. The Facility will leverage funding from companies, financial service providers and equity funds. It will target agricultural and agro-forestry enterprises that demonstrate innovative and environmentally sustainable practices and support them to engage lenders for longer-term loans needed for climate smart investments.

  16. GCF Example 6: Low-Emission Climate Resilient Agriculture Risk Sharing Facility for MSMEs, Guatemala, Mexico (FP048) Source: GCF, FP048 landing website and funding proposal Specific objectives This Facility will unlock innovative and scalable financial instruments for CSA: • Provide access to long-term or concessional debt to local financial intermediaries for on-lending for climate-smart agriculture activities. • Support innovative climate microinsurance mechanisms that unlock investment. • Leverage farmer cooperatives, extension agents, and local agricultural research centers as information and communication hubs. • Use technical assistance grant funds to expand outreach and training of farmers on CSA practices. • Support value chain linkages between financial intermediaries, anchor companies, and farmers in the supply chain so that farmers can receive finance to produce high-value crops in an environmentally sustainable way.

  17. Key take aways

  18. Key take-aways • Approved GCF projects usually have a high overall funding volume compared to other climate funds. • Co-financing is a very important aspect for GCF projects. A variety of financiers is usually involved in the projects. The GCF regularly finances a minor share of the overall project. • The government of the target country of the project oftentimes also contributes to the overall financing. • The financing structure of the projects usually comprises different financing instruments, with loans and grants being the most important ones. • Measuring and indicating the potential impacts of the project with regard to mitigation and/or adaptation is very important. The impact of GCF projects in terms of anticipated number of people reached and emissions reduced or avoided is usually very high.

  19. Thank you for your attention!!!

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