Press Release

GGGI hosts COP22 side-event on closing the finance gap through National Financing Vehicles

img_0125Marrakech, Morocco – November 10, 2016 – The Global Green Growth Institute (GGGI) hosted a panel discussion in Marrakech, Morocco during COP22 that gathered global experts in green finance from national ministries, development banks, and global financial institutions. The topic of the COP22 side-event was how to build National Financing Vehicles (NFVs) to close the “finance gap” that currently exists between money needed for green projects and money available.

Given the critical role of domestic institutions in implementing Intended Nationally Determined Contributions (NDCs) towards achieving the Paris Agreement on reductions in green house gas emission, there is a great need for financing of green projects. Policymakers and financial regulators in developing countries require significant technical and institutional support to develop domestic systems to manage access to and deployment of green finance.

In the few cases where NFVs exist, capacity is limited to the handling of grants. The ability to blend or handle private capital is rare, if not absent. Specialized vehicles are needed for handling international climate finance that is traditionally handled by Finance Ministries through central bank regulations. If finance is to flow to countries for green projects, their institutions need to have the ability to manage funds, have effective governance systems, and have a pipeline of well-developed projects.

The Global Green Growth Institute (GGGI) NFV project assists their member countries in accessing domestic and international climate finance by building National Financing Vehicles (NFVs) and a pipeline of projects. GGGI is currently in the early stages of concept development for NFVs in Indonesia and Costa Rica and has committed to developing four more NFVs in Colombia, Philippines, Rwanda, and Senegal.

GGGI acts as a neutral and independent matchmaker between climate capital providers and capital receivers such as project developers and industry players in private sector. The examples of NFVs that GGGI has developed show the potential NFVs have in playing a key role in closing the finance gap and achieving NDC in many countries.

This COP22 side event introduced GGGI’s furthest developed NFVs in Jordan, Mongolia, and Vanuatu, which are currently in the start-up stages. The panel discussed keys for successful NFVs based on the experiences in these countries. Moving forward, these discussions will help to promote better policies, stronger institutions, better financial products, and better projects that will help to promote successful NFVs in more of GGGIs partner countries.

About the Global Green Growth Institute (GGGI)

Based in Seoul, GGGI is an intergovernmental organization founded to support and promote green growth. The organization partners with countries to help them build economies that grow strongly, are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. To learn more about GGGI, see https://www.gggi.org and visit us on Facebook and Twitter.

 

 

Contact Details:

 

Darren Karjama

Head of Communications

Global Green Growth Institute

Tel: +82 (0)10 9530 9995

Darren.karjama@gggi.org