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CTI Side Event at UNFCCC COP16 Cancun, Mexico: December 4&7, 2010

COP16_SideEvent_4Dec_Panel

The CTI held two side events during the UN Climate Change Conference in Cancun, Mexico on 4th and 7th December 2010 to review the progress of its work on the Private Financing Advisory Network (PFAN), one of the CTI’s successful programmes operating in Latin America, Africa and Asia, and to discuss scale-up opportunities.  The first event entitled “Mobilizing private sector financing for technology transfer” and the second entitled “CTI PFAN: a public-private sector model for financing technology transfer of clean energy projects in developing countries”, these events brought together over 65 participants from a broad range of prominent stakeholders including national delegates, private sector, and multilateral organizations for panel discussions.

Agenda and Presentation

4th December 2010 Side event CTI PFAN
7th December 2010 Side event at the US Center

 

COP16_SideEvent_4Dec_AudienceThe first event opened with welcoming remarks and brief introduction to CTI by Mr. Elmer Holt, the Vice-Chair of CTI Executive Committee and CTI PFAN Manager.  Mr. Holt noted the important role the private sector should play in supplementing the scarce public resources available to finance developing country technology needs in solving climate change challenge.  The second event held at the US Center was organized in cooperation with the US Agency for International Development.  Mr. Bill Breed, USAID Global Climate Change Coordinator drew attention to PFAN’s proven ability to leverage private sector finance for clean energy projects and work directly with private sector actors to create truly sustainable investments.  Mr. Michael Rantil, the Chair of the CTI Executive Committee who provided brief introduction to CTI and CTI PFAN pointed out that the CTI PFAN addresses the lack of access to financing by bridging the gap between the project and investment sources that stems from insufficient interaction and communication.  In both events, CTI PFAN Global Coordinator, Mr. Peter Storey presented an overview of CTI PFAN programme, focusing on its aims, mechanisms and outcomes of recent activities leading on from the successful organization of the Africa Forum for Clean Energy Financing (AFRICEF) as well as other investor fora held during 2010.  He also discussed the scale-up opportunities offered by CTI PFAN programme for financing technology transfer in developing countries.

COP16_SideEvent_9Dec_PanelMr. Storey noted that the AFRICEF received over 65 proposals from across Africa, out of which 16 projects were short-listed, representing a total required investment volume of USD 155 million and are seeking to raise an aggregate USD 38 million of equity investment for the deployment of a range of clean and renewable technologies in the fields of small hydro, biomass to power, gasification, bio-fuels production, biogas, wind and solar.  It was highlighted that the estimated combined GHG emission reduction potential from these projects is 1.5 million tonnes of CO2 equivalent per annum.  During 2010, seven Financing Fora have been organised in various regions attracting 1,100 participants in total and CTI PFAN helped 13 projects reach financial closure raising USD 168 million of investment.  It was also highlighted that the CTI PFAN has successfully raised USD 232 million of investment for 240MW of clean capacity instalments and 61.3GWhrs of energy savings, representing 1.26 million tonnes CO2 equivalent reduction par annum.  In addition, it is currently working on over 100 projects representing USD 2.4 billion of required investment with over 4.6 million tonnes of CO2 equivalent reduction potential par annum.

COP16_SideEvent_9Dec_AudienceIn response to a question regarding the success factor for the CTI PFAN model to achieve high leverage rate, Mr. Storey pointed out that the PFAN programme is a success driven model providing Win-Win situation by creating business opportunities for investors and consultants, while raising finance for project developers.  He also emphasised that the CTI PFAN provides valuable service in identifying clean energy projects with investment potential so that the public sector can concentrate its limited resources to those projects that do not have commercial elements.  This is the area where the CTI PFAN is working with UNFCCC through technology needs assessment process in order to identify commercially viable projects at an early stage.  Mr. Binu Parthan, REEEP Deputy Director General commented that REEEP is pleased with its successful cooperation with the CTI PFAN and welcomed further opportunities to scale up activities in Africa as well as to duplicate the success in other part of the world.

It was emphasized that the CTI PFAN programme has proven to be an effective tool for responding to the climate change challenge and the CTI will continue its efforts to improve and expand its networks to reach further regions and countries in need of support.