Climate Technology Initiative (CTI) Multilateral Activity Demonstrating

Leadership in Technology Transfer

Presentation to the 2nd Meeting of

the TEC

15 February 2012

Origin of CTI

• CTI launched at COP 1 in 1995 by 23

IEA/OECD countries and the European

Commission as a response to the technology

transfer provisions of Article 4.5 of the

Convention.

• Our mission was to promote the objective of the

Convention by fostering international

cooperation for accelerated development and

diffusion of climate-friendly technologies and

practices for all activities and greenhouse gases.

Current Structure and Membership

• CTI reorganized in 2003 as an implementing

agreement under the International Energy

Agency (IEA) with a special emphasis on

supporting technology transfer under the

Convention, particularly the work of the Expert

Group on Technology Transfer (EGTT).

• Currently, eleven countries are members of the

CTI Implementing Agreement; Australia, Austria,

Canada, Finland, Germany, Japan, Norway,

Republic of Korea, Sweden, UK and the US.

Activities Collaborating with Others

• Our mission has been pursued through a variety of analytical, capacity building, technical assistance, training, information sharing, and other related activities focused on facilitating technology transfer.

• Many times these activities have been conducted in collaboration with others including the UNFCCC and its Subsidiary Bodies, various UN agencies, universities, development banks, private sector firms, associations, and institutions, NGOs, and the EGTT.

• CTI participated in the “consultative process” initiated in 1998 that led to the formulation of the integrated approach to technology transfer adopted in 2001.

• CTI produced the 1st TNA Handbook subsequently revised in collaboration with UNDP

Helped Bring Private Sector into

the Process

• CTI recognized the key role the private business and finance communities in effective and sustainable technology adoption and diffusion.

• CTI has a heavy focus on business participation in essentially all of our activities including one of our earliest, the CTI/Industry Joint Seminars series, the first of which was held in Beijing in 1998.

Addressing Practical Problems.…

• Notable collaboration among the EGTT, the UNFCCC, and the CTI.

• Two workshops on innovative ways to finance technology transfer held during 2004 in Montreal and Bonn during 2005.

• Workshops brought together representatives from developing countries, developed countries, international organizations, private business, and the private finance community to share experiences and exchange views on what one another was looking for to foster more active technology transfer.

• From this exchange emerged the key message from the workshop regarding the pace of technology transfer.

• Problem was not a shortage of funds for investment and it was not a shortage of good projects.

• The gap was a shortage of good finance proposals capable of adequately communicating the merits of the projects to the international finance community.

…with Practical Outcomes

• To test the validity of this message, a core group of practicing financing professionals worked with representative from developing countries to see if the quality of proposal could make a difference.

• We discovered with varying degrees of coaching, significant improvements could be made in the quality of the financing proposals while simultaneously building capacity within the project team to be better equipped to prepare a better financing proposal for the next project.

• These efforts and the further discussions that took place in Bonn in 2005, gave birth to the CTI Private Financing Advisory Network or CTI PFAN which has grown into the largest current CTI activity.

CTI PFAN – Objectives

Clean Energy Businesses &

Projects

Investment Sources (Financiers, Banks)

¥€$

Seeking financing Seeking projects / businesses

The Missing Middle: Lack of Access to Financing

Policy Dialogue (barriers and

solutions)

Training Financial Institutions

Coaching & mentoring

Government (policies)

“PUSH”

“PUSH”

“PUSH”

How a multi-pronged approach can scale up clean energy deployment

Global Track Record

• 143 Projects in the Development Pipeline

– USD 2,6 billion of Investment

– 5,5 million tonnes pa CO2 e GHG reduction potential

– 266 MW of clean capacity

• 30 Projects Closed / USD 379 million raised

– 292 MW of Installed Clean Capacity

– 1,7 million tonnes CO2 e reduction pa

– 94,5 GWhrs pa Energy Savings (EE projects)

Pipeline Analysis

by Region

India 13%

China 15%

CIS / Central Asia 1%

SE Asia 44%

S Asia 2%

Africa 18%

LAC 7%

Pipeline Analysis

by Technology

Biofuels 9%

Biomass 15%

Biogas 12%

W2E 5% Hydro

17%

Wind 5%

Solar 17%

Geothermal 4%

EE 10%

Clean Transport 2% Other

5%

Opportunities for Linkage

[CTC & N]

TNAs / NAPAs / NAMAs etc

Projects & Initiatives

PRIVATE

SECTOR

PUBLIC

SECTOR

PFAN

Filter

Process

• Commercial Projects & Businesses • Good Returns • Well defined & self-contained Cash Flows

• Policy Initiatives & Projects • Low Returns • Social & Developmental Benefits • Little identifiable Cash Flow

PPPs Project Development driven by Private Sector Champion

Financing with Private Sector Capital

Project Development driven by Public Sector Champion

Financing with Public Sector / Donor Resources