5 Plenary-Thematic Climate Change by VDuggal 17Mar2016

8/19/2019 5 Plenary-Thematic Climate Change by VDuggal 17Mar2016

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7 th ADB Business Opportunities Fair

17 March 2016

Thematic Opportunities: Climate Change

Virender K. DuggalSenior Climate Change SpecialistSustainable Development and Climate Change Department


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Climate Change Challenges


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Climate Change Challenges


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Finance Knowledge Partnerships

ADB’s

Strategic Priorities on Environment and

Climate Change

Clean Energy Investments, Energy Efficiency and Urban Development

Increase Assistance for Sustainable Transport

Scaling-up Support for Climate Change Adaptation

Promote Natural Resources Management

Strengthen Integrated Disaster Risk Management

S e v e n

P r i o r i

t i e s

Strengthen Policies and Capacities

Facilitate Access to Climate Finance

Modalities


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ADB Climate Finance

Year Mitigation Adaptation Total

ADBresources External Subtotal



2011 2,196 224 2,420 585 172 757 2,781 396 3,177

2012 2,001 386 2,388 821 75 896 2,822 462 3,284

2013 1,948 333 2,280 880 108 988 2,828 441 3,268

2014 1,711 426 2,137 665 54 719 2,376 480 2,856

2015 2,372 173 2,545 284 73 357 2,656 246 2,902

($ million)


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ADB Climate Finance in 2015

ADB Total Climate Finance (2015) = $2.902 Billion

$2,546m

$356m

$2.902Billion

88%Mitigation

12%Adaptation

By Use By Source

Internal

$2,656m

92%

External

$246m

8%

$ $


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ADB Climate Finance in 2015

TOTAL $2.902 Billion

58%($1,674m)

15%($422m)

8%

($237m)

4%

($125m)

15%

($444m)

Energy Transport Agriculture

Urban

&Water Others


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ADB’s Climate Finance Target


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ADB Approaches to Climate FinanceMobilization

Internally-managedfunds• Clean Energy

FinancingPartnership Facility(CEFPF)

• Climate ChangeFund (CCF)

• Others withbilaterals

Externally-managedfunds• Climate Investment

Funds (CIFs)• Global Environment

Facility (GEF)• Green Climate Fund

(GCF)

Carbon finance• Asia Pacific Carbon

Fund (closed in2014)

• Future Carbon Fund

Carbon MarketTechnical SupportFacility• CDM support• Domestic emissions

tradingOther marketmechanisms• Japan Fund for the

Joint CreditingMechanism

• Renewable energycredits; FIT

Direct projectfinance (lending,

guarantees,syndications), andequity investment

Public privatepartnerships: (PPPs)working with clientDMCs across stagesof PPPs

Deployingconcessional

resources

Maximizingmarket

mechanisms

Catalyzing

private capital

Ordinary CapitalResources / AsianDevelopment Fund

(for sovereign andnon-sovereignprojects)• Loans• Grants• Equity investments• Guarantees• technical

Assistance• Direct Value-

Added Cofinancing

Deploying its

own resources


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Mitigation InitiativesClean Energy

> $2b/year investments

Asia Solar Energy Initiative: 3,000 MW ofcapacity achieved by 2014 since 2010Quantum Leap in Wind: 1 GW by 2016,925 MW achieved as of 2014Hub for SE4All Initiative/ E4AllPartnership

Sustainable Transport30% of investments for urban transport;25% for railways by 2020$3.75b of sustainable transportinvestments approved (2014)

Transport mitigation investments total$413m (2014)

Land Use and ForestManagement

Piloting REDD+/FIP:

Indonesia, Lao PDR


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Adaptation Initiatives• Mainstreaming climate resilience in

core development planning – Pilot Program on Climate

Resilience for Bangladesh,Cambodia, Nepal, Papua NewGuinea, Samoa, Tajikistan and thePacific

• Climate proofing vulnerableprojects: roads and bridges, ports,water supply and drainage

• Knowledge support: regionalclimate projections consortium data

facility , guidance and tools• Addressing social dimensions :

migration, gender, health impacts• Greater emphasis on integration of

adaptation and disaster risk


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Knowledge and Partnerships• Knowledge Products

– Economics of climate change and GHGaccounting

– Flagship studies (migration, agriculture,health) – Mitigation, clean energy and energy access – Adaptation, disaster risk management and

climate risk screening tools – Disaster risk management – Climate technology and climate finance – Urban resilience and sustainable transport

• Partnerships – Climate finance tracking and reporting, GHG

accounting, transport (with MDBs, others) – Asia Pacific Adaptation Network (with UNEP,

IGES, others) – Asia Clean Energy Forum, Urban Forum,

Transport Forum (with several partners) – The Global Commission on the Economy and

Climate – Centers of excellence (COEs) actively

providing ideas (knowledge solutions) to solveproblems

– Regional Consortium and Data Facility –

Climate services for resilient development


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ADB’s Carbon Market ProgramCarbon Market Program

Technical Support Facility Asia Pacific Carbon FundPre-2013Future Carbon Fund

Post-2012

Commenced in 2006

Implemented through severalTechnical Assistance

TA 6363: Preparing Clean EnergyProjects Eligible for the Clean

Development Mechanism

TA 6438: Implementation of theTechnical Support Facility under the

Carbon Market Initiative

TA 8223: Supporting the Use ofCarbon Financing to Promote Green

Growth in Asia and the Pacific

TA 8654: Supporting the Use ofCarbon Financing from New Carbon

Market Mechanisms to Promote GreenGrowth in Asia and the Pacific

TA 9062: Supporting Low-CarbonDevelopment in Asia and the

Pacific through Carbon Markets

$151.8 million Trust Fund

Commenced in 2007

Fund Participants include SevenEuropean Governments

Supported 71 CDM projects in 9 DMCs

Contracted 15.63 million CERs

Provided carbon finance to 1.9 GWrenewable energy projects

All contracted CERs received anddistributed to Fund Participants

Fund closed in 2014

$115 million Trust Fund

Commenced in 2009

Fund Participants include FourGovernments and two private sector

entities from Europe and Asia

Contracted 11 million CERs as ofDecember 2015

Supporting 38 CDM projects in12 DMCs

Providing carbon finance support to1.2 GW renewable energy projects

Disbursed more than $31 million

Fund will close in 2021


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Supporting the Use of Carbon Financing from New CarbonMarket Mechanisms to Promote Green Growth in

Asia and the Pacific

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Budget $1.5 millionFunding Japan Fund for Poverty Reduction (ADB trust fund)

Implementation period 24 months

Target countries Bangladesh, Indonesia, Lao PDR, Philippines,Thailand and Viet Nam

Objectives • Support build institutional capacities to effectivelyparticipate in, and take advantage of, bilateralmechanisms such as the Joint CreditingMechanism (JCM)

• Provide direct technical support to projects underbilateral mechanisms such as JCM

• Disseminate information and develop knowledgeproducts on new carbon market mechanisms


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Supporting Low -Carbon Development in Asiaand the Pacific through Carbon Markets

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Budget $1.5 millionFunding (donors) Government of Finland and the Government of

Luxembourg

Implementation period 24 months

Objectives • Capacity building support to develop domesticETS and/or to link their domestic ETS to othernational or regional ETSs in the future

• Support for the development of new carbonmarkets and mechanisms

• Support existing CDM projects and transferknowledge and skills developed under the CDM tonew market mechanisms


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Tata Khandke Wind Power ProjectThe project involves the construction and operation of 50.4 MW of wind power generation facilities (63units of 800 kilowatts) and a 30 to 132 kilovolt (kV) substation at Khandke village, as well as a 4 kmtransmission line to the nearest line-in-line-out point on the 132 kV transmission lines of MaharashtraState Electricity Transmission Company Limited.• Total project cost: $56 million• ADB involvement: $27 million loan and also receiving assistance

from ADB's Technical Support Facility under its Carbon MarketProgram

• Commissioned in December 2007• GHG emission reduction s: 83,022 tCO 2e per year • Social benefits: provides improved access to the local population,

employment generation, improved economic activities, and reduceddependence on imported fossil fuel leading to increased energysecurity

• Environmental benefits: reduces emissions of gaseous, liquid and/or solid effluents/wastes, and no negative impact to the surroundingenvironment.

• Economic benefits: creates additional employment opportunities,improved availability of electricity to local consumers providing better opportunities for industries and economic activities


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Virender K. DuggalSenior Climate Change Specialist

Sustainable Development and Climate Change Department

[email protected]

5 Plenary-Thematic Climate Change by VDuggal 17Mar2016

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