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LEDS GLOBAL PARTNERSHIP. Annual Event Finance Plenary. 27 August 2014 Bethany Speer www.ledsgp.org. Working group activities. Working Group Members. Secretariat: Ari Huhtala (CDKN) and Bethany Speer (NREL) Leads Organizations: CDKN, E3G, NREL/JISEA, ODI, UNDP
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LEDS GLOBAL PARTNERSHIP Annual Event Finance Plenary 27 August 2014 Bethany Speer www.ledsgp.org
Working Group Members Secretariat: Ari Huhtala (CDKN) and Bethany Speer (NREL) Leads Organizations: CDKN, E3G, NREL/JISEA, ODI, UNDP Sampling of Members: Bajo en Carbono, Bangladesh Department of Energy, Brazil Ministerio do MeioAmbiente, Cambodia Climate Change Dept., CCAP, CDKN, CSTEP, CTI-PFAN, Danish Energy Agency, E3G, ECN, Ecofys, EMBARQ India, GIZ, ICF International, IFC, Indonesia State Ministry of Development Planning, International Resources Group, Lycos, Ministry of Foreign Affairs of Denmark, Nexant, NREL, Thailand National Economic and Social Development Board, U.S. Dept. of State, U.S. DOE, UNDP, UNEP, UNEP-Risoe, University of Delaware, USAID, Vietnam MPI, WEF, Worldwatch Institute, WRI
Activities No-Cost Virtual Technical Assistance Provided by a network of finance experts to all developing countries to… • Review and advise on financing strategies and policies • Compile information on financing, investment, and funding options • Match-make with finance, investment and funding sources Example: Working with Mauritius to understand options for transitioning from a generous solar hot water grant program to a more sustainably funded incentive; Turkmenistan Submit requests at: http://ledsgp.org/assistance/finance Additional Activities National Finance Strategies, Inventory of LEDS Services and Activities, Case Studies, Peer Exchange Webinars and Workshops, Identifying Partnership Opportunities
Join the working group! The working group is open to all LEDS finance practitioners and country teams. Become a member to: Learn about other organizations’ work on LEDS finance and investment, including upcoming events and recent publications Collaborate on LEDS funding, finance, and investment related activities Build connections with other climate and LEDS finance experts Email: bethany.speer@nrel.gov
Introductory Summary Finance Framework
Audience and Intent Primary audience: practitioners supporting LEDS, both those who are early and later in the process Based on a synthesis of lessons learned and expertise from a variety of programs, services, and research efforts A living document that will be reviewed and updated semi-annually or annually; First phase completed in Oct 2014; Second phase next year. Intended as a guide only and should be applied and adapted based on the country context, priorities, and implementation phase Contributors thus far: GGBP, E3G, ODI, LEDS GP. Seeking additional authors!
Overarching Challenges National inconsistences in public finance with incentives and instruments at times negating efforts to advance LEDS Gaps in capabilities of the domestic financial sector, impacting their ability to participate with the public sector in financing LEDS Fragmented and poorly coordinated international cooperation efforts Have you encountered other high-level challenges not recorded here?
Public Sector Role Government leadership of the “homework” effort, can include identifying: 1) National priorities 2) Specific resources needs 3) Analysis of barriers to mobilize private investment and strategies to overcome risks and create increased rates of return 4) Domestic capacity to finance its plans 5) The role required from international development partners
Public Sector Role LEDS POLICIES, PROGRAMS, and PROJECTS Climate change strategies, green growth strategies, sectoral initiatives, low emission and /or climate resilient technology oriented policies ENABLING POLICY FRAMEWORK Regulations, standards, clear price signals PUBLIC BUDGET SUPPORT Procurement, public-private partnerships, Budget allocation GOVERNMENT FINANCIAL INSTRUMENTS Grants, guarantees, concessional loans INCREASING IMMEDIATE AND LONG-TERM INVESTMENT MOBILIZED LEDS WITH REDUCED EMISSIONS AND ENHANCED CLIMATE RESILIENCE
Private Sector Role Support the LEDS planning phase by contributing to stakeholder consultations in which governments seek to better understand the current barriers that could impede investment in LEDS technologies. And of course, create new businesses, invest and finance! What other key actions can the private sector support?
Applying the Framework How can this framework be applied? Would there be value in further developing regional case studies? Is it helpful to have a common slide deck on the finance framework and make it available to structure future training? Would there be value to countries in the LEDS GP and regional platforms supporting a matchmaking role between countries and finance/funding and finance technical assistance providers?
Amal-Lee to present on strategic approaches Part 2 of the plenary