Investment Climate for Climate Investment Climate for Climate Investments: Investments: Mobilizing Private Resources Mobilizing Private Resources through Public Commitments through Public Commitments Jan Kappen, Regional Coordinator - Climate Change United Nations Environment Programme Regional Office for Latin America And the Caribbean [email protected]Latin American Carbon Forum 2011 San Jose de Costa Rica, Sept 29, 2011
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Investment Climate for Climate Investments: Mobilizing Private Resources through Public Commitments Jan Kappen, Regional Coordinator - Climate Change United.
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Investment Climate for Climate Investments: Investment Climate for Climate Investments: Mobilizing Private Resources through Public Mobilizing Private Resources through Public
CommitmentsCommitments
Jan Kappen, Regional Coordinator - Climate ChangeUnited Nations Environment Programme
Investment scale-up has begun, but mostly just in China, India and Brazil.Investment scale-up has begun, but mostly just in China, India and Brazil. Investment scale-up has begun, but mostly just in China, India and Brazil.Investment scale-up has begun, but mostly just in China, India and Brazil.
Developing Country Investment in Power Sector Developing Country Investment in Power Sector Renewables – “View from the Top”Renewables – “View from the Top”
Private Finance for Clean Energy Ventures -Private Finance for Clean Energy Ventures -““View from the Ground”View from the Ground”
Early-stage funding gap = Lots of funds but lack of deal-flow…Early-stage funding gap = Lots of funds but lack of deal-flow… Early-stage funding gap = Lots of funds but lack of deal-flow…Early-stage funding gap = Lots of funds but lack of deal-flow…
Theory suggests we should be “crowding-in” investors from the very early stage of Theory suggests we should be “crowding-in” investors from the very early stage of the project development cycle…the project development cycle…
Theory suggests we should be “crowding-in” investors from the very early stage of Theory suggests we should be “crowding-in” investors from the very early stage of the project development cycle…the project development cycle…
Leveraging Private Climate Finance in TheoryLeveraging Private Climate Finance in Theory
Developing Country Investment in Power Sector Renewables – Public vs. Private Share of Financing*
* annually, averaged 2007-2009, based on BNEF data
……while actual data suggests we might be “crowding-out” late-stage investors while actual data suggests we might be “crowding-out” late-stage investors instead.instead.
……while actual data suggests we might be “crowding-out” late-stage investors while actual data suggests we might be “crowding-out” late-stage investors instead.instead.
Leveraging Private Climate Finance in PracticeLeveraging Private Climate Finance in Practice
Part 1: Private Funding for Climate Investment - Experience throughout the LAC Region.Part 2: Multilateral Mechanisms for Climate Finance – The CIF's approach in leveraging private investment.Part 3: Climate Investments in the LAC Region – Entrepreneur’s & Private Equity Perspective.Finale: Scaling up Private Climate Finance – “Wish list” of innovative approaches and mechanisms.
Game Plan for Panel Discussion:Game Plan for Panel Discussion:
Key questions for discussion:Key questions for discussion:
Question 1: How to bridge the early-stage funding gap and create greater deal flow?
Question 2: How to complement Carbon Finance to cover incremental costs?
Question 3: How to make sure capacity building efforts are more demand/business driven?
Bonus question: How to better measure and track leverage of private capital?
Backup SlidesBackup Slides
Source: Project Catalyst Sept. 2009, Finance Briefing Paper
Everyone is obsessed with this
part…
…when we should also be looking at this part!
Need to look beyond abatement cost …Need to look beyond abatement cost … Need to look beyond abatement cost …Need to look beyond abatement cost …
Funding Needs for CC Mitigation – Funding Needs for CC Mitigation – Estimates 2010-2020Estimates 2010-2020
Mobilization of Local/Domestic finance, FDI and ODA
Very significant additional costs that need to be addressed individually. Very significant additional costs that need to be addressed individually. Very significant additional costs that need to be addressed individually. Very significant additional costs that need to be addressed individually.
Funding Needs for CC Mitigation – Funding Needs for CC Mitigation – Looking beyond Abatement CostLooking beyond Abatement Cost