GGGWEEK2021 – Green Finance / Carbon Pricing

Session#1 The Role of Green Investments & Innovative Financing Mechanisms

  • Date/Time: October 25, 2021, 11:00 – 13:00 KST (GMT+9)
  • Session lead: Mr. Lasse Ringius, Director and Head of Green Investment Services, GGGI

There is an urgent need today to increase the flows of investment into developing countries and emerging markets to meet the targets of the Paris Agreement and the UN Sustainable Development Goals (SDGs) by 2030. Significant volumes of green climate finance have been pledged by governments to reach these targets and goals, and commercial capital is available for investment in bankable green climate projects in emerging markets. But these public and private funds are not being invested in projects as expected. Among the principal reasons are a challenging and complex climate finance ecosystem and a shortage of green climate projects that are financially, economically, and technically feasible. For such reasons, the development of strong pipelines of investible and bankable projects has become a key priority to unlock public and private funding earmarked for green climate projects in developing countries.

The objective of this session is to highlight the importance of green climate projects and innovative financing mechanisms in mobilizing green investments and to share experience and insights from expects from the public sector, the private sector, development partners, and academia. The first three presenters focused on national and sectoral initiatives along with GGGI’s project portfolio and efforts in terms of origination, structuring, and investor mobilization to accelerate the development of a pipeline of investible and bankable green projects. The next three presenters examined the role of green finance and technology, policy, and standardization aspects. This year we are fortunate to be able to welcome representatives and experts who will explore achievements, challenges, lessons learnt, and innovative new approaches, followed by a Q&A session with the audience. 

Agenda Speakers Bio Session PPTs*

* The PPTs are only available until 24th December 2021. If you wish to access the PPTs after the date, please contact us at GGGWeek2021@gggi.org.

https://youtu.be/PNTRnUsKApQ

Key Resources:

– GGGI:

  • MN13 Mongolia Green Finance Corporation (link)
  • VN13 MSWTE Finance Facility in Viet Nam (link)
  • IN09 Utility scale 150MW ground mounted solar PV project for new highway corridor in Maharashtra, India (link)

– ClimateWorks Australia:

  • Work in Southeast Asia (link)

Session#2 The Evolution of Carbon Pricing Policies and Market Mechanisms

  • Date/Time: October 26, 2021, 11:00 – 12:00 KST (GMT+9)
  • Session lead: Ms. Fenella Aouane, Deputy Director – Head, Carbon Pricing Global Practice, GGGI

As we head towards COP26, many await the last piece of the Paris Rulebook related to Article 6 and potential international carbon trading to be finalized. Whether it is or not, there are some early movers who plan to pursue completion of trades, using the partially completed Rulebook already agreed in addition to a well- documented history laid down during the Kyoto Protocol. Is this all that is needed to keep us to a 1.5 degrees pathway via trade? At GGGI we feel that international carbon trading is just one part of the puzzle that allows countries to value, by putting a price on, an asset which they can then use to their benefit if they choose a pathway of sustainable green growth.

Our presenters and panel took us through a series of analyses of carbon pricing, from directly taxing carbon in Indonesia with an analysis of the strengths and weaknesses of this approach; to the lessons we can learn from the Clean Development Mechanism under the Kyoto Protocol. We then took a look at how domestic trading schemes can be improved – specifically on auctioning of allowances in China. Finally, as part of our panel discussion we heard how Australia tackled all of these ideas and where they stand now – at the dawn of potential Paris era trading.

Agenda Speakers Bio Session PPTs*

* The PPTs are only available until 24th December 2021. If you wish to access the PPTs after the date, please contact us at GGGWeek2021@gggi.org.

Key Resources:

– UNFCCC Regional Collaboration Centre St. George’s University:

  • Introduction of UNFCCC Regional Collaboration Centre St. George’s University (link)

Session#3 Enhancing Countries’ Direct Access to Climate Finance (Asia and the Pacific)

  • Date/Time: October 26, 2021, 10:00 – 11:30 GMT+0
  • Session leads:
    • Ms. Julie Robles, Manager – Partnerships Program and GCF Portfolio, GGGI
    • Ms. Maika Nova Yudha, Officer, Technical Proposal Writing, GGGI

Direct access to the Green Climate Fund (GCF) is a key modality through which developing countries can mobilize investment for their climate priorities. The partnership between the GCF and the Global Green Growth Institute (GGGI) demonstrates how shared visions and goals between international organizations can enhance the capacity of developing countries to access climate finance resources and contribute to the achievement of the NDC and SDG targets. More recently, both organizations are taking adaptive measures to help developing countries carry out a climate-resilient recovery to the pandemic. Mobilizing climate investments that foster a paradigm shift towards low-emission, climate-resilient development with co-benefits which contribute to job creation and food security among other socio-economic benefits. GGGI and GCF have already established a strong track record of collaboration in using the GCF Readiness Programme.

Agenda Speakers Bio Session PPTs*

* The PPTs are only available until 24th December 2021. If you wish to access the PPTs after the date, please contact us at GGGWeek2021@gggi.org.

Key Resources:

– GGGI:

  • ID06 Green Climate Fund (GCF) Readiness for Strategic Climate Finance in Indonesia (link)
  • MN13 Mongolia Green Finance Corporation (link)
  • Vanuatu Country Planning Framework: 2017-2021 (link)

– Green Climate Fund (GCF):

  • NDA strengthening, country programming, strategic frameworks and entity support for Indonesia through GGGI (link)
  • Strategic Frameworks support for Vanuatu through GGGI (link)
  • Strategic Frameworks support for Mongolia through GGGI (link)

– Government of Vanuatu:

  • Vanuatu Climate Change and Disaster Risk Reduction Policy 2016-2030 (link)

Session#4 Enhancing Countries’ Direct Access to Climate Finance (Africa and the Middle East)

  • Date/Time: October 26, 2021, 13:00 – 14:00 KST (GMT+9)
  • Session leads:
    • Ms. Julie Robles, Manager – Partnerships Program and GCF Portfolio, GGGI
    • Ms. Maika Nova Yudha, Officer, Technical Proposal Writing, GGGI

Direct access to the Green Climate Fund (GCF) is a key modality through which developing countries can mobilize investment for their climate priorities. The partnership between the GCF and the Global Green Growth Institute (GGGI) demonstrates how shared visions and goals between international organizations can enhance the capacity of developing countries to access climate finance resources and contribute to the achievement of the NDC and SDG targets. More recently, both organizations are taking adaptive measures to help developing countries carry out a climate-resilient recovery to the pandemic. Mobilizing climate investments that foster a paradigm shift towards low-emission, climate-resilient development with co-benefits which contribute to job creation and food security among other socio-economic benefits. GGGI and GCF have already established a strong track record of collaboration in using the GCF Readiness Programme.

Agenda Speakers Bio Session PPTs*

* The PPTs are only available until 24th December 2021. If you wish to access the PPTs after the date, please contact us at GGGWeek2021@gggi.org.

Key Resources:

– GGGI:

  • Building National Capacity in Climate Project Preparation and Management in Burkina Faso (link)
  • ET17 Building Capacity to Facilitate the Integration of the National Adaptation Planning Process in Ethiopia (link)
  • JO04 Preparing Jordan’s NDA and DAE for Partnerships in Climate Action through GCF Direct Access (link)
  • RW17 GCF National Adaptation Plan (NAP) Readiness and Preparatory Support for Building Flood Resilience Capacities in Rwanda (link)

– Green Climate Fund (GCF):

  • Readiness grant agreement for Burkina Faso (BFA‐RS‐001) (link)
  • Building Capacity to Facilitate the Integration of the National Adaptation Planning Process in Ethiopia (link)
  • Readiness Proposal with Global Green Growth Institute for the Hashemite Kingdom of Jordan (link)
  • Adaptation planning support for Rwanda through GGGI (link)

– Government of Cote d’Ivoire:

  • Ministry of Environment and Sustainable Development (link)

Session#5 Increasing Access to Climate Finance in the Pacific

  • Date/Time: October 27, 2021, 09:00 – 10:30 KST (GMT+9)
  • Session lead:
    • Ms. Charlotte Camille Turk, GIS Regional Technical Lead for the Pacific, GGGI

In August 2021, GGGI partnered with CFAN to announce the first eight countries to receive dedicated advisors for climate finance. Fiji, Kiribati, Papua New Guinea, Samoa, the Solomon Islands, Tonga, Tuvalu and Vanuatu will receive advisors specifically trained and placed to unlock critical climate finance in developing countries. Coordinated by RMI and funded with an initial contribution of CAD $9.5 million from the Government of Canada, CFAN is a global network designed to provide a prompt and practical solution to the climate finance bottleneck in SIDS, Least Developed Countries and African countries. A demand assessment conducted by CFAN in 2019 interviewed 100 representatives of 45 developing countries from both public and private sectors, and revealed resounding demand from countries, with 98% stating they would be interested in receiving a climate finance advisor.

This session aims to highlight ready to scale initiatives in for SIDS focused on access and implementation, such as the Climate Finance Access Network. 

  • Discussing the need for the Global North to support the Global South and how CFAN can act as a catalyst
  • Discussing priorities for climate adaptation and mitigation efforts in SIDs and barriers to financing – Discuss how challenging securing funding can be overcome and how CFAN’s innovative approach will help
  • Discussing the opportunities for and benefits of scaling CFAN to reach SIDS and LDCs in the Caribbean and African regions.

Agenda Speakers Bio Session PPTs*

* The PPTs are only available until 24th December 2021. If you wish to access the PPTs after the date, please contact us at GGGWeek2021@gggi.org.

Key Resources:

– Climate Finance Access Network (CFAN):

  • Introduction of Climate Finance Access Network (CFAN) (link)

Session#6 Unlocking the potential of Climate Finance & Carbon Pricing in Africa

  • Date/Time: October 27, 2021, 09:30-11:00 (GMT+1)
  • Session lead:
    • Mr. Abdelmajid Bennis Nechba, Lead, Morocco Program, GGGI

GGGI has been involved in many successful implementations of carbon market mechanisms, in particular the Clean Development Mechanism (CDM) and more recently the Article 6 of the Paris Agreement through the DAPA and MATS programs in several countries in Africa. As climate change negotiations intensify in the run-up to COP26, carbon markets are likely to grow and increase investment incentives across the continent. So why is Africa making so little use of carbon finance mechanisms and few proposed carbon pricing initiatives for investments across sectors? Where are the incentives for change and how can they be implemented? Can green bonds help accelerate the transition to a low-carbon economy and mitigate the risk of a climate crisis? How could the introduction of CO2 taxes in all countries contribute to simultaneously reducing carbon emissions and global poverty, especially in Africa?

This session addressed these questions and included discussions from key speakers and high-level representatives from governments, development partners, private sector and research institutes starting with an analysis of available carbon finance instruments and mechanisms and carbon pricing potential in Africa. Finally, the panel session offered concrete recommendations on how African governments and the international community can overcome barriers to carbon finance and take advantage of current carbon finance opportunities.

Agenda Speakers Bio Session PPTs*

* The PPTs are only available until 24th December 2021. If you wish to access the PPTs after the date, please contact us at GGGWeek2021@gggi.org.

Key Resources:

– GGGI:

  • Identifying Potential Policy Approaches under Article 6 of the Paris Agreement – Initial Lessons Learned (link)

– Africa Forest Carbon Catalyst :

  • Introduction of Africa Forest Carbon Catalyst (link)

– UNFCCC:

  • Rwanda Green Fund – FONERWA | Rwanda(link)

– Komaza:

  • Introduction of Smallholder Forestry Vehicle (link)

– ECOTRUST:

  • Introduction of ECOTRUST (link)

– Research Paper:

  • The Preferential Treatment of Green Bonds (link)

Session#7 Greening LAC´s Financial Systems Experience from the banking sector and capital markets

  • Date/Time: October 27, 2021, 09:00 – 11:00, PET/CDT
  • Session lead:
    • Mr. Ferruccio Santetti, Regional Technical Lead – Green Investment Services (LATAM and Caribbean), GGGI

Given the negative impact that sustainability-related risks can have on investment returns, investors, banks, and borrowers alike are increasingly focusing on environmental, social, and governance (“ESG”) issues. Regulators, banks and borrowers have collaborated to create new financial instruments, such as sustainability-linked loans and sustainability-linked bonds, designed to provide greater flexibility while incentivizing companies to meet and exceed their long-term energy transition and other ESG objectives.

The session looked at LAC´s rapidly growing market for sustainability-linked instruments hearing from representatives from both the public and private sectors. Recent spikes in activity on the regulatory side in Latin America are expected to result in increased demand for sustainability-linked financing and transition finance for companies in, and outside of, “green” sectors. As ESG measurement criteria and regulation become more standardized, banks and borrowers will strive to take a leading role in the increasingly attractive segment that is sustainable finance.

Agenda Speakers Bio Session PPTs*

* The PPTs are only available until 24th December 2021. If you wish to access the PPTs after the date, please contact us at GGGWeek2021@gggi.org.

Key Resources:

– GGGI:

  • MX09 Accelerating Green Finance Flows Through the Strengthening of the Mexican National Banking and Securities Commission (CNBV) (link)