CF Assist World Bank’s Capacity Building Program Host Country Committee Meeting Cologne, Germany May 2006 Carbon Finance at WB Ensure CF contributes substantially to sustainable development, beyond global environmental efforts; Assist in building, sustaining, and expanding the international markets for emission reductions, and its institutional and administrative structure; Strengthen the capacity of developing countries to benefit from the emerging market for emission reduction credits Carbon Finance Portfolio $1.6 billion UCF DCF SCF NECF ICF BioCF CDCF NCDF PCF 2004 2005 2006 0 200 400 600 800 CF Projects by Region $629m by March 2006 Europe & Central Asia 9% Latin America & Caribbean 19% East Asia & Pacific 52% Middle East & North Africa 3% South Asia 10% Africa 7% Carbon Finance Assist Multi-donor Trust Fund complementing WB’s CF Business Proposed in 2004, established in 2005 Managed by Carbon Finance Unit; Training activities by World Bank Institute Activities are need-based at country/regional level Africa Assist program with French support Review and advice by Host Country Committee on CF, and Donor Group Objectives of CF-Assist Ensure that Developing Countries and Economies in Transition are able to fully participate in the flexible mechanisms defined under KP • Build human and infrastructural capacity • Benefit from SD gains associated with carbon mitigation projects • Create and manage carbon assets • Reduce costs of participation Funding Sources for CF-Assist CF-Assist Knowledge Sharing CF Unit Technical Assistance and Capacity Building Direct Donor Contributions Australia Denmark France Spain Switzerland ‘ PLUS’ TA Funds PHRD Partners PCF+ DCF CFU Interest Earning CF-Assist Resource Envelop (m$) Spain Denmark Switzerland Australia France (MEDD) France (AFD)* PCF Plus DCF Interest Total PHRD Grants GIS CF-SEA 6.000 0.425 0.720 1.315 0.180 2.050 0.800 0.150 11.640 5.500 1.000 1.000 Financial resources actually received in December 2005 CF-Assist Work Components CFAssist Capacity Enhancement Market Development Outreach Training Carbon Expo Annual Market Assessment Lessons Learnt Portfolio Development Institutional Strengthening GHG Forums Financial Sector Intermediation CF-Assist Priority Countries Egypt, Morocco, Tunisia Bulgaria, Latvia, Russian Federation, Ukraine Cambodia, China, Indonesia, Philippines Sri Lanka, Pakistan Argentina, Bolivia, Brazil, Central America, Mexico, Peru, Uruguay Cameroon, Ghana, Madagascar, Mali, Mozambique, Senegal, South Africa, Uganda, Zambia Country Programs Phased Approach • Phase 1: Bank Execution • Phase 2: Recipient and/or Bank Execution • Phase 3: Recipient Execution Activity Focus • • • • CDM Governance Private Sector Engagement Project Development Knowledge Management CDM Governance Phase 1 DNA established with criteria, procedures and timeline for approval Phase 2 Supportive policy and regulatory frameworks for CF projects developed Phase 3 Procedures refined/ validated by objective, external evaluation Private Sector Engagement Phase 1 Key experts in financial sector / industry trained on design of CF projects Phase 2 Financial institutions trained in synergies of CF with lending/ grant instruments Phase 3 CF fully integrated in investment promotion strategies / concessional lending decisions Project Development Phase 1 Key sectors identified and potential ERs quantified; information widely disseminated; At least one PDD has been completed Phase 2 At least one project validated/ registered and marketed to buyers One industry association or intermediary fully engaged in CF (signed an agreement) Existence of a dynamic deal flow Participation at Carbon Expo Phase 3 Intermediaries/ project developers access the carbon market JI countries: First Track participation; Establishment of GIS, traded volume Continued participation at Carbon Expo Knowledge Management Phase 1 Private sector and public sector agencies are fully aware of the CDM/JI potential and have put systems in place to assess projects at their institutions Phase 2 Knowledge sustained through distance learning/ web-based instruments; National and regional networks of experts cultivated Phase 3 South-South knowledge transfer; National/regional community of practitioners Progress in 2005-06 Country Programs TORs for TA negotiated and agreed for 9 priority countries • Argentina, Cambodia, China, Indonesia, Madagascar, Morocco, Mexico, Philippines, Sri Lanka Negotiations underway for 4 countries • Egypt, Peru, Tunisia, Uruguay Procedures instituted for the first recipientexecuted program in Mexico Argentine Carbon Facility launched Training programs conducted in 11 Countries Regional Programs Africa Assist • AFD contribution; PHRD grants; CF-SEA TA • Recognition of special needs and characteristics • Announced in March 2005 Central America • Guatemala, El Salvador, Honduras Caucasus • Azerbaijan, Georgia Training Programs Country No. of Participants Azerbaijan Cameroon El Salvador India (6) Indonesia Mali Mexico Pakistan Sri Lanka Zambia (2) 51 17 77 1110 211 30 66 111 83 84 Leveraging Resources PHRD Grants - $5.5m • Bolivia, Brazil, China, Indonesia, Mozambique, Pakistan, Senegal, South Africa, Russian Federation, Uganda and Ukraine CF-SEA - $1.0m • Zambia, Mozambique, Mali, Ghana, and Cameroon GIS Studies - $1.0m • Bulgaria, Latvia, Ukraine Market Facilitation Global Carbon Expo 2005 • Over 1500 participants from 87 countries • 150 journalists • 134 Exhibitors from 50 countries • 29 high level representatives • More than 100 projects offered GHG Forums Delhi Regional GHG Forum • Annual event along with DSDS • 150 participants Moscow Regional GHG Forum • First one in April 2006 • 250 participants Transportation Program RFP issued in April 2006 Objectives • to enhance opportunities for transport sector by developing methodologies for distinctive types of projects, which can be replicated; • to document lessons learnt, including barriers encountered and means by which barriers were overcome; and • to disseminate the lessons learnt and facilitate dialogue amongst experts to further CDM transportation projects. Market Assessment Annual Market Analysis Report • Released at Carbon Expo Rapid Response Facility • Training workshops in Azerbaijan, Georgia and Pakistan Collaboration with UNDP • Training of UNDP staff • Joint CDM projects Outreach Training of Bank Staff • Energy Week • 7 internal training programs (incl. MIGA) HCC Meeting • 54 member countries Donors Meeting Partners IETA (Expo, GHGF) Koelnmesse (EXPO) UNEP, Riso Center (CF-SEA) CEFEB (Francophone Africa) In-country partners (20) Program Impacts Stakeholder Participation Event Participation (4100 People) Expo 30% Training Participation (2000 people) Africa 21% Latin America 7% Training 51% COP 8% GHG Forum 11% Europe/ Central Asia 4% East Asia 5% South Asia 63% Institutions Supported Cambodia: Support to DNA and other stakeholders to develop capacity building activities and identify potential CF projects Sri Lanka: Support to DNA help develop project approval procedures Russia: Workshop to help the DNA understand legal aspects of developing projects and processing procedures Argentina: Supporting ACF Africa Assist: DNAs supported in capacity building in Senegal, South Africa and Uganda utilizing the PHRD grants Project Portfolios Participation of 25 host country delegations at Carbon Expo 2005 resulted in over 100 projects being presented for deal negotiations PHRD grants supported development of project portfolios in Senegal, South Africa and Uganda CF-SEA program supported up to 10 PINs per country in Cameroon, Ghana, Mali, Mozambique and Zambia Work Program 2006-09 New Management Structure CF-Assist responsibility transferred to World Bank Institute from 1 July, 2006 Carbon Finance Unit will continue to provide technical and operational support Program implementation mainly through WB regional teams CF-Assist Structure Donors WBI CFU Regions External Partners HCC Continued Commitments Country Programs • • • • • • • • • • Argentina Bolivia Mexico Peru Uruguay Philippines Sri Lanka Cambodia China Indonesia Regional Programs • Africa Assist • Central America Market Facilitation • Carbon Expo, Cologne • Asia Carbon Expo, Beijing • Latin America Carbon Forum, Buenos Aires Regional Expansion Ensuring equitable distribution across regions • Sub-Saharan Africa • North Africa • Middle East • Eastern Europe • Central Asia Possible New Activities Countries • • • • • • • • • Azerbaijan Bangladesh Belarus Botswana Burkina Faso Georgia Latvia Pakistan Russian Federation Sectors • Biomass at HH level • Energy Efficiency • Afforestation/ Reforestation • Avoided Deforestation Expected Outcomes Activity Expansion to all regions Africa Assist 2007 10 countries Phase II 05 countries new Regional/sector assessments; 06 countries in Phase II Country Funds operational in Argentina, Mexico GIS offered in Bulgaria, Ukraine 2009 30 countries complete Phase II 12 countries in Phase II; 03 intermediaries in CF business In-country experts have full access to all instruments (country funds, auctioning, etc.) to secure ERPAs Innovative Tools Expected Outcomes Activity Expand CF to new sectors 2007 Assessment in transport completed; at least 03 PDDs offered to market 2009 Action plan implemented to remove barriers in transport sector; assessment completed in other sectors (EE, biomass, etc.) Programs increasingly recipient-executed Carbon Expo becomes self-sustaining; Other forums become regular events Capacity Building at At least 03 intermediaries in country level each CF-A countries Disseminate lessons Carbon Expo in Cologne; through global/ Asian Carbon Expo, Beijing; regional events Latin America Carbon Forum, Argentina; GHG Forums Lessons Learnt Project Development High Demand for Capacity Building • Closing window of opportunity in the short run • Need for institutional structures to be in place • Access to mainstream financing • Limited delivering capacity - need for strategic prioritization of countries • Need to focus on country-specific capacity requirements linked to potential • Adapt KM activities to the changing landscape of the market and focus on long term sustainability of the market Need for Market Continuity Leverage Other Capacity Building Programs Thank you!