CF AssistCF Assist World Bank’s Capacity Building ProgramWorld Bank’s Capacity Building Program

Host Country Committee MeetingHost Country Committee Meeting

Cologne, GermanyCologne, Germany

May 2006May 2006

Carbon Finance at WBCarbon Finance at WB

Ensure CF contributes substantially to Ensure CF contributes substantially to sustainable development, beyond sustainable development, beyond global environmental efforts;global environmental efforts;

Assist in building, sustaining, and Assist in building, sustaining, and expanding the international markets expanding the international markets for emission reductions, and its for emission reductions, and its institutional and administrative institutional and administrative structure;structure;

Strengthen the capacity of developing Strengthen the capacity of developing countries to benefit from the emerging countries to benefit from the emerging market for emission reduction creditsmarket for emission reduction credits

0 200 400 600 800

PCF

NCDF

CDCF

BioCF

ICF

NECF

SCF

DCF

UCF

2004

2005

2006

Carbon Finance PortfolioCarbon Finance Portfolio

$1.6 billion

$629m by March 2006

Africa7%

Latin America & Caribbean

19%

Middle East & North Africa

3%

East Asia & Pacific

52%

Europe & Central Asia

9%

South Asia10%

CF Projects by RegionCF Projects by Region

Carbon Finance AssistCarbon Finance Assist

Multi-donor Trust Fund complementing WB’s Multi-donor Trust Fund complementing WB’s CF BusinessCF Business

Proposed in 2004, established in 2005Proposed in 2004, established in 2005 Managed by Carbon Finance Unit; Training Managed by Carbon Finance Unit; Training

activities by World Bank Instituteactivities by World Bank Institute Activities are need-based at country/regional Activities are need-based at country/regional

levellevel Africa Assist program with French supportAfrica Assist program with French support Review and advice by Host Country Review and advice by Host Country

Committee on CF, and Donor GroupCommittee on CF, and Donor Group

Objectives of CF-AssistObjectives of CF-Assist

Ensure that Developing Countries and Ensure that Developing Countries and Economies in Transition are able to fully Economies in Transition are able to fully participate in the flexible mechanisms participate in the flexible mechanisms defined under KPdefined under KP• Build human and infrastructural capacityBuild human and infrastructural capacity• Benefit from SD gains associated with Benefit from SD gains associated with

carbon mitigation projectscarbon mitigation projects• Create and manage carbon assetsCreate and manage carbon assets• Reduce costs of participationReduce costs of participation

CF-Assist

Funding Sources for CF-Assist

CF Unit

Direct Donor

Contributions

‘PLUS’ TA Funds

PHRD Partners

AustraliaDenmarkFranceSpainSwitzerland

PCF+

DCFCFU Interest

Earning

Technical Assistance and Capacity Building

Knowledge Sharing

CF-Assist Resource Envelop (m$)

SpainSpain 6.0006.000

DenmarkDenmark 0.4250.425

SwitzerlandSwitzerland 0.7200.720

AustraliaAustralia 1.3151.315

France (MEDD)France (MEDD) 0.1800.180

France (AFD)*France (AFD)* 2.0502.050

PCF PlusPCF Plus 0.8000.800

DCF InterestDCF Interest 0.1500.150

TotalTotal 11.64011.640

PHRD GrantsPHRD Grants 5.5005.500

GISGIS 1.0001.000

CF-SEACF-SEA 1.0001.000

Financial resources actually received in December 2005

CF-Assist

Capacity Enhancement

Market Development

Outreach

Training

Portfolio Development

Institutional Strengthening

Carbon Expo

GHG Forums

Financial Sector Intermediation

Annual Market Assessment

Lessons Learnt

CF-Assist Work Components

CF-Assist Priority CountriesCF-Assist Priority Countries

Sri Lanka, Pakistan

Argentina, Bolivia, Brazil, Central America, Mexico, Peru, Uruguay

Cameroon, Ghana, Madagascar, Mali, Mozambique, Senegal, South Africa, Uganda, Zambia

Cambodia, China, Indonesia, Philippines

Bulgaria, Latvia, Russian Federation, Ukraine

Egypt, Morocco, Tunisia

Country ProgramsCountry Programs

Phased ApproachPhased Approach• Phase 1: Bank ExecutionPhase 1: Bank Execution• Phase 2: Recipient and/or Bank ExecutionPhase 2: Recipient and/or Bank Execution• Phase 3: Recipient ExecutionPhase 3: Recipient Execution

Activity FocusActivity Focus• CDM GovernanceCDM Governance• Private Sector EngagementPrivate Sector Engagement• Project DevelopmentProject Development• Knowledge ManagementKnowledge Management

CDM GovernanceCDM Governance

Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3

DNA established DNA established with criteria, with criteria, procedures and procedures and timeline for timeline for approvalapproval

Supportive policy and regulatory frameworks for CF projects developed

Procedures refined/ validated by objective, external evaluation

Private Sector EngagementPrivate Sector Engagement

Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3

Key experts in financial sector / industry trained on design of CF projects

Financial institutions trained in synergies of CF with lending/ grant instruments

CF fully integrated in investment promotion strategies / concessional lending decisions

Project DevelopmentProject Development

Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3Key sectors identified and potential ERs quantified; information widely disseminated;At least one PDD has been completed

At least one project validated/ registered and marketed to buyersOne industry association or intermediary fully engaged in CF (signed an agreement) Existence of a dynamic deal flowParticipation at Carbon Expo

Intermediaries/ project developers access the carbon market JI countries: First Track participation; Establishment of GIS, traded volumeContinued participation at Carbon Expo

Knowledge ManagementKnowledge Management

Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3Private sector and public sector agencies are fully aware of the CDM/JI potential and have put systems in place to assess projects at their institutions

Knowledge sustained through distance learning/ web-based instruments;National and regional networks of experts cultivated

South-South knowledge transfer;National/regional community of practitioners

Progress in 2005-06Progress in 2005-06

Country ProgramsCountry Programs TORs for TA negotiated and agreed for 9 TORs for TA negotiated and agreed for 9

priority countriespriority countries• Argentina, Cambodia, China, Indonesia, Argentina, Cambodia, China, Indonesia,

Madagascar, Morocco, Mexico, Philippines, Sri Madagascar, Morocco, Mexico, Philippines, Sri LankaLanka

Negotiations underway for 4 countriesNegotiations underway for 4 countries• Egypt, Peru, Tunisia, UruguayEgypt, Peru, Tunisia, Uruguay

Procedures instituted for the first recipient-Procedures instituted for the first recipient-executed program in Mexicoexecuted program in Mexico

Argentine Carbon Facility launchedArgentine Carbon Facility launched Training programs conducted in 11 CountriesTraining programs conducted in 11 Countries

Regional ProgramsRegional Programs

Africa AssistAfrica Assist• AFD contribution; PHRD grants; CF-SEA TAAFD contribution; PHRD grants; CF-SEA TA• Recognition of special needs and Recognition of special needs and

characteristicscharacteristics

• Announced in March 2005Announced in March 2005 Central AmericaCentral America

• Guatemala, El Salvador, HondurasGuatemala, El Salvador, Honduras

CaucasusCaucasus• Azerbaijan, GeorgiaAzerbaijan, Georgia

Training ProgramsTraining ProgramsCountryCountry No. of No. of

ParticipantsParticipants

AzerbaijanAzerbaijan 5151

CameroonCameroon 1717

El SalvadorEl Salvador 7777

India (6)India (6) 11101110

IndonesiaIndonesia 211211

MaliMali 3030

MexicoMexico 6666

PakistanPakistan 111111

Sri LankaSri Lanka 8383

Zambia (2)Zambia (2) 8484

Leveraging ResourcesLeveraging Resources

PHRD Grants - $5.5mPHRD Grants - $5.5m• Bolivia, Brazil, China, Indonesia, Mozambique, Bolivia, Brazil, China, Indonesia, Mozambique,

Pakistan, Senegal, South Africa, Russian Pakistan, Senegal, South Africa, Russian Federation, Uganda and UkraineFederation, Uganda and Ukraine

CF-SEA - $1.0mCF-SEA - $1.0m• Zambia, Mozambique, Mali, Ghana, and Zambia, Mozambique, Mali, Ghana, and

CameroonCameroon GIS Studies - $1.0mGIS Studies - $1.0m

• Bulgaria, Latvia, UkraineBulgaria, Latvia, Ukraine

Market FacilitationMarket Facilitation

Global Carbon Expo 2005Global Carbon Expo 2005• Over 1500 participants from 87 Over 1500 participants from 87

countriescountries• 150 journalists150 journalists• 134 Exhibitors from 50 countries134 Exhibitors from 50 countries• 29 high level representatives29 high level representatives• More than 100 projects offeredMore than 100 projects offered

GHG ForumsGHG Forums

Delhi Regional GHG ForumDelhi Regional GHG Forum• Annual event along with DSDSAnnual event along with DSDS• 150 participants150 participants

Moscow Regional GHG ForumMoscow Regional GHG Forum• First one in April 2006First one in April 2006• 250 participants250 participants

Transportation ProgramTransportation Program RFP issued in April 2006RFP issued in April 2006 ObjectivesObjectives

• to enhance opportunities for transport sector to enhance opportunities for transport sector by developing methodologies for distinctive by developing methodologies for distinctive types of projects, which can be replicated;types of projects, which can be replicated;

• to document lessons learnt, including barriers to document lessons learnt, including barriers encountered and means by which barriers encountered and means by which barriers were overcome; andwere overcome; and

• to disseminate the lessons learnt and facilitate to disseminate the lessons learnt and facilitate dialogue amongst experts to further CDM dialogue amongst experts to further CDM transportation projects.transportation projects.

Market AssessmentMarket Assessment

Annual Market Analysis ReportAnnual Market Analysis Report• Released at Carbon ExpoReleased at Carbon Expo

Rapid Response FacilityRapid Response Facility• Training workshops in Azerbaijan, Georgia and Training workshops in Azerbaijan, Georgia and

PakistanPakistan Collaboration with UNDPCollaboration with UNDP

• Training of UNDP staffTraining of UNDP staff• Joint CDM projectsJoint CDM projects

OutreachOutreach

Training of Bank StaffTraining of Bank Staff• Energy WeekEnergy Week• 7 internal training programs (incl. MIGA)7 internal training programs (incl. MIGA)

HCC MeetingHCC Meeting• 54 member countries54 member countries

Donors MeetingDonors Meeting

PartnersPartners IETA (Expo, GHGF)IETA (Expo, GHGF) Koelnmesse (EXPO)Koelnmesse (EXPO) UNEP, Riso Center (CF-SEA)UNEP, Riso Center (CF-SEA) CEFEB (Francophone Africa)CEFEB (Francophone Africa) In-country partners (20)In-country partners (20)

Program ImpactsProgram Impacts

Stakeholder ParticipationStakeholder Participation

Event Participation (4100 People)

Expo30%

COP8%

GHG Forum11%

Training51%

Africa 21%

Latin America 7%

Europe/ Central Asia 4%

East Asia 5%

South Asia 63%

Training Participation (2000 people)

Institutions SupportedInstitutions Supported CambodiaCambodia: Support to DNA and other : Support to DNA and other

stakeholders to develop capacity building stakeholders to develop capacity building activities and identify potential CF projectsactivities and identify potential CF projects

Sri LankaSri Lanka: Support to DNA help develop project : Support to DNA help develop project approval proceduresapproval procedures

Russia: Workshop to help the DNA understand Russia: Workshop to help the DNA understand legal aspects of developing projects and legal aspects of developing projects and processing proceduresprocessing procedures

ArgentinaArgentina: Supporting ACF: Supporting ACF Africa AssistAfrica Assist: DNAs supported in capacity : DNAs supported in capacity

building in Senegal, South Africa and Uganda building in Senegal, South Africa and Uganda utilizing the PHRD grantsutilizing the PHRD grants

Project PortfoliosProject Portfolios

Participation of 25 host country Participation of 25 host country delegations at Carbon Expo 2005 delegations at Carbon Expo 2005 resulted in over 100 projects being resulted in over 100 projects being presented for deal negotiationspresented for deal negotiations

PHRD grants supported development of PHRD grants supported development of project portfolios in Senegal, South project portfolios in Senegal, South Africa and UgandaAfrica and Uganda

CF-SEA program supported up to 10 CF-SEA program supported up to 10 PINs per country in Cameroon, Ghana, PINs per country in Cameroon, Ghana, Mali, Mozambique and ZambiaMali, Mozambique and Zambia

Work Program 2006-09

New Management Structure

CF-Assist responsibility transferred to CF-Assist responsibility transferred to World Bank Institute from 1 July, 2006World Bank Institute from 1 July, 2006

Carbon Finance Unit will continue to Carbon Finance Unit will continue to provide technical and operational provide technical and operational supportsupport

Program implementation mainly through Program implementation mainly through WB regional teams WB regional teams

CF-Assist StructureCF-Assist Structure

WBI

External Partners

CFU Regions

Donors

HCC

Continued CommitmentsContinued Commitments

Country ProgramsCountry Programs• ArgentinaArgentina• BoliviaBolivia• MexicoMexico• PeruPeru• UruguayUruguay• PhilippinesPhilippines• Sri LankaSri Lanka• CambodiaCambodia• ChinaChina• IndonesiaIndonesia

Regional ProgramsRegional Programs• Africa AssistAfrica Assist• Central AmericaCentral America

Market FacilitationMarket Facilitation• Carbon Expo, Carbon Expo,

CologneCologne• Asia Carbon Expo, Asia Carbon Expo,

BeijingBeijing• Latin America Latin America

Carbon Forum, Carbon Forum, Buenos AiresBuenos Aires

Regional ExpansionRegional Expansion

Ensuring equitable distribution Ensuring equitable distribution across regionsacross regions• Sub-Saharan AfricaSub-Saharan Africa• North AfricaNorth Africa• Middle EastMiddle East• Eastern EuropeEastern Europe• Central Asia Central Asia

Possible New ActivitiesPossible New Activities

CountriesCountries• AzerbaijanAzerbaijan• BangladeshBangladesh• BelarusBelarus• BotswanaBotswana• Burkina FasoBurkina Faso• GeorgiaGeorgia• LatviaLatvia• PakistanPakistan• Russian FederationRussian Federation

SectorsSectors• Biomass at HH levelBiomass at HH level• Energy EfficiencyEnergy Efficiency• Afforestation/ Afforestation/

ReforestationReforestation• Avoided Avoided

DeforestationDeforestation

Expected OutcomesExpected Outcomes

ActivityActivity 20072007 20092009

Expansion to all regions

10 countries Phase II05 countries new

30 countries complete Phase II

Africa Assist Regional/sector assessments; 06 countries in Phase II

12 countries in Phase II; 03 intermediaries in CF business

Innovative Tools Country Funds operational in Argentina, Mexico

In-country experts have full access to all instruments (country funds, auctioning, etc.) to secure ERPAsGIS offered in

Bulgaria, Ukraine

Expected OutcomesExpected Outcomes

Activity 2007 2009Expand CF to new sectors

Assessment in transport completed; at least 03 PDDs offered to market

Action plan implemented to remove barriers in transport sector; assessment completed in other sectors (EE, biomass, etc.)

Capacity Building at country level

At least 03 intermediaries in each CF-A countries

Programs increasingly recipient-executed

Disseminate lessons through global/ regional events

Carbon Expo in Cologne;Asian Carbon Expo, Beijing; Latin America Carbon Forum, Argentina;GHG Forums

Carbon Expo becomes self-sustaining;Other forums become regular events

Lessons LearntLessons Learnt

Project Development• Closing window of opportunity in the short run• Need for institutional structures to be in place• Access to mainstream financing

High Demand for Capacity Building• Limited delivering capacity - need for

strategic prioritization of countries• Need to focus on country-specific capacity

requirements linked to potential Need for Market Continuity

• Adapt KM activities to the changing landscape of the market and focus on long term sustainability of the market

Leverage Other Capacity Building Programs

Thank you!