- The 7th Asia Forum for Clean Energy Financing (AFCEF-7) was held on 10 Feb 2017 in Singapore
- PFAN events at the COP 22 in Marrakesh
- CTI PFAN Organized the AFCEF-7 Project Development & Financing Workshop
- International climate community discusses how to unlock the Paris Agreement’s potential for market-based approaches
- CTI side event at UNFCCC Forty-fourth meeting of the Subsidiary Bodies – SB44 Bonn, Germany May 26, 2016
CTI Side Event at UNFCCC SB32 Bonn, Germany: June 3, 2010
The Climate Technology Initiative (CTI) held a side event at the UNFCCC, SB32 meetings in Bonn, Germany on 3 June 2010, led by Mr. Elmer Holt, Chair of the CTI. The event, entitled “Mobilizing Private Sector Financing for mitigating Climate Change and promoting Development using CTI PFAN,” was well attended by over 25 participants from a broad range of stakeholders including national delegates, private sector, international organizations, and NGO representatives. The event presented an overview of CTI’s recent work, in particular CTI Private Financing Advisory Network (CTI PFAN)’s activities and lessons learned in terms of successful ways to increase access to financing for the deployment of lower carbon technologies.
Agenda and Presentation
Mr. Holt opened the side event with an introduction and overview of the CTI, noting that the CTI welcomes membership by both developed and developing countries and encouraged developing country representatives to contact CTI if there is interest to join CTI. He mentioned that CTI works closely with governments, UNFCCC / Expert Group on Technology Transfer (EGTT), international organizations and others. However, CTI’s significant comparative advantage lies in its close collaboration with the private sector, noting the essential role the private sector plays in the enhancement of technology transfer activities. As such, the CTI has made the engagement of this key group a particular focus of its efforts.
Mr. Bruce Wilson, Chair of the EGTT, made an opening address, noting the CTI’s long-standing support for the UNFCCC process and its vital role in facilitating technology transfer discussions, in particular through close collaboration with the EGTT. He emphasized that the value CTI PFAN adds to the process is that it addresses issues faced by small to medium sized projects in accessing private sector financing, which are the same issues identified through UNFCCC workshops on innovative financing in 2004 and 2005. He further stressed that CTI PFAN is a practical, on the ground, and hands-on initiative achieving tangible results while working closely with project developers and proponents building capacity and skills necessary to implement projects. He indicated that CTI PFAN illustrates that the gaps in technology transfer issues can be addressed through capacity building, and the concept of CTI PFAN is shaping up and taking root in the finance discussions under the AWG on Long-term Cooperative Action under the Convention. He congratulated the CTI for establishing a successful and effective programme in such a short time, and expressed hope that the programme will continue to grow.
Mr. Peter Storey, the CTI PFAN Global Coordinator, affiliated with PPL International, presented a summary of CTI PFAN, focusing in particular on the current activities and plans for the future as covered by the balance of this paragraph. PFAN is a multilateral initiative, organized under the umbrella of CTI with financial support from CTI member countries, USAID, ICETT, APP, and REEEP, offering a free project development consultancy and investment matchmaking service to project developers to help them raise private sector finance. The network members, currently numbering over 40, consist of private sector financing professionals (investors and consultants) with extensive developing country experience and a triple bottom line perspective; i.e. an appreciation for the social as well as the economic and environmental benefits of the project. The CTI PFAN programme received endorsement in COP13 decisions (4 / CP.13) for its work during the pilot phase, which led to the expansion of the programme with new funding from USAID, REEEP, APP, ICETT and CTI. PFAN has raised USD 100 million of financing with existing commitments up to USD 230 million. The most recent CTI PFAN activity is the Africa Forum for Clean Energy Financing (AFRICEF) launched in February 2010 receiving over 65 applications from 16 countries, out of which 16 projects were short-listed to participate in the Investor Forum in September 2010. CTI PFAN adds value in optimising resources by identifying at an early stage the projects with commercial potential, thereby enabling developers and investors to concentrate on projects with investment potential. Further, CTI PFAN contributes to reducing risk through targeting of key risk points, thus accelerating the project implementation cycle. CTI PFAN is looking at ways to coordinate its existing activities with the possible post-2012 technology mechanism being considered in the ongoing UNFCCC negotiations. CTI PFAN looks forward to furthering cooperation with UNFCCC Parties in the efforts to work towards and implement the post 2012 architecture for Technology Transfer to mitigate and adapt to Climate Change.
Presentations were followed by a lively period of questions and discussion led by Mr. Holt. In response to a question regarding the future structure of the CTI PFAN programme as it grows in relation to the UNFCCC process, Mr. Holt noted that it is likely that some form of technology mechanism will emerge from the current AWG-LCA negotiation process. A PFAN-type match-making capability would be a natural course to take in order to facilitate access to private capital and thereby scale-up and accelerate project implementation. In response to a comment on the difficulty of implementing small scale projects in rural areas of developing countries, e.g. rural electrification projects, Mr. Storey pointed out that CTI PFAN helps to lower transaction costs by providing an early stage assessment to project developers on the commercial viability of a given project which allows public funding sources to be pursued as soon as possible for those projects that lack any commercial element.
Mr. Holt thanked all CTI member countries for their continuing support to the CTI activities. He closed the meeting with appreciation to the speakers and participants for their contribution to the useful discussion that hopefully provided a better understanding of the broad range of activities being pursued by the CTI and its partners in order to facilitate technology transfer and how the lessons learned from those activities are leading to improved access to financing particularly private capital markets to accelerate the broader diffusion of environmentally sound technologies.