Global Environment Facility Global Environment Facility Climate ChangeClimate Change

14 May 2004

Siv TokleGEF Monitoring and Evaluation Unit

GEF and Climate ChangeGEF and Climate Change

Financial mechanism of the UN Framework Convention on Climate Change (UNFCCC)

$1.6 billion for renewable energy, energy efficiency and sustainable transport.

Additional $9 billion in co-financing More than 120 clean energy projects in

more than 60 developing countries

Operational Programs in Operational Programs in Climate ChangeClimate Change

Removal of Barriers to Energy Efficiency & Energy Conservation (OP 5)

Promoting the Adoption of Renewable Energy by Removing Barriers and Reducing Implementation Costs (OP 6)

Reducing the Long-term Costs of Low GHG-emitting Energy Technologies (OP 7)

Promoting Environmentally Sustainable Transport (OP 11) (introduced in 1999)

Climate Change Climate Change Strategic PrioritiesStrategic Priorities

1. Transformation of Markets

2. Access to Finance

3. Power Sector Policy Frameworks

4. Productive Uses of Renewable Energy

5. Global Market Technology Aggregation

6. Modal Shifts in Urban Transport

7. Adaptation to Climate Change

Typical project clusters Typical project clusters

Where are GEF CC projects? Where are GEF CC projects? Asia: Largest portfolio (China, India), broad

activity range (EE and renewables). Latin- America: Notable portfolio, mix RE

(solar, biomass, wind) and EE. Africa: Mainly renewable energy, rural

electrification, enabling activities. Eastern Europe: Limited but growing

portfolio. Stress on EE, buildings, finance. Arab Region: Fewer countries, EE markets.

Climate Change StudyClimate Change Study

Purpose: (a) Assess climate change results and performance, (b) Draw implications for future projects, GEF policies and strategies.

Timeframe: To be completed late summer 2004 Issues: Market transformation, policy and finance,

EE programs, rural electrification Use: Input to the Third Overall Performance Study

(September 2004-Summer 2005)

AchievementsAchievements

EE products (lights…) market change EE finance and banking RE Off-grid Solar PV: Local benefits Policy frameworks: Codes, standards,

awareness, liberalization, institutions

Example 1: EE financing HungaryExample 1: EE financing Hungary

GEF 6 M $, WB/IFC 12 M $ guarantee fund, over 8 years

Target group: Banks, loan packages Energy efficiency in municipalities, block

houses, industry: 20+ projects Emerging ESCO market, banks take on

added risks Policy: Push by EU membership

Example 2: China REDPExample 2: China REDP WB project (2001- 07). GEF grant 27 M $ Contributed substantially to the growth and

development of the PV market in China Largest programme in the world: Nearly 100,000

PV SHS systems installed Policy: National PV standards, testing centres and

procedures. But – missing overall renewable energy policies with coherent PV projects

But: A fully sustainable market for wind or PV not yet achieved. Rely on mandated market share and tariff (wind) or subsidies for off-grid PV

ChallengesChallenges

Moving from technology focus to markets Targeting the “right” barriers, within strategic

country programming Market transformation and “replication” Policy framework – economic, legal, finance,

environment, energy Partnering: Working with others, especially

private sector engagement

Consultancy opportunitiesConsultancy opportunities

Through the GEF Implementing Agencies Project formulation Technical studies Evaluation

Monitoring and Evaluation studies Expertise: Multi-dimensional, beyond

technical expertise

Thank youThank you