LEDS GLOBAL PARTNERSHIP

Annual Event

Finance Plenary

27 August 2014

Bethany Speer

www.ledsgp.org

WORKING GROUP ACTIVITIES

Working Group MembersSecretariat: Ari Huhtala (CDKN) and Bethany Speer (NREL)

Leads Organizations: CDKN, E3G, NREL/JISEA, ODI, UNDP

Sampling of Members: Bajo en Carbono, Bangladesh

Department of Energy, Brazil Ministerio do Meio Ambiente,

Cambodia Climate Change Dept., CCAP, CDKN, CSTEP, CTI-

PFAN, Danish Energy Agency, E3G, ECN, Ecofys, EMBARQ

India, GIZ, ICF International, IFC, Indonesia State Ministry of

Development Planning, International Resources Group, Lycos,

Ministry of Foreign Affairs of Denmark, Nexant, NREL, Thailand

National Economic and Social Development Board, U.S. Dept. of

State, U.S. DOE, UNDP, UNEP, UNEP-Risoe, University of

Delaware, USAID, Vietnam MPI, WEF, Worldwatch Institute,

WRI

ActivitiesNo-Cost Virtual Technical Assistance Provided by a network of finance experts to all developing countries to…

• Review and advise on financing strategies and policies • Compile information on financing, investment, and funding

options • Match-make with finance, investment and funding sources

• Example: Working with Mauritius to understand options for transitioning from a generous solar hot water grant program to a more sustainably funded incentive; Turkmenistan

Submit requests at: http://ledsgp.org/assistance/finance

Additional Activities

National Finance Strategies, Inventory of LEDS Services and Activities, Case Studies, Peer Exchange Webinars and Workshops, Identifying Partnership Opportunities

Join the working group!

The working group is open to all LEDS finance

practitioners and country teams.

Become a member to:• Learn about other organizations’ work on LEDS finance

and investment, including upcoming events and recent

publications• Collaborate on LEDS funding, finance, and investment

related activities• Build connections with other climate and LEDS finance

experts

Email: bethany.speer@nrel.gov

FINANCE FRAMEWORKIntroductory Summary

Purpose

Share the current challenges that countries

have identified in the context of resource

mobilization

Present initial options for mobilizing LEDS and a

diagnostic tool to support countries with navigating

such challenges

Suggest key approaches that can be undertaken

over time to mobilize finance for LEDS actions

Provide a foundation for further dialogue

Audience and Intent• Primary audience: practitioners supporting LEDS, both

those who are early and later in the process• Based on a synthesis of lessons learned and expertise

from a variety of programs, services, and research efforts • A living document that will be reviewed and updated

semi-annually or annually; First phase completed in Oct 2014; Second phase next year.

• Intended as a guide only and should be applied and adapted based on the country context, priorities, and implementation phase

• Contributors thus far: GGBP, E3G, ODI, LEDS GP.

• Seeking additional authors!

Overarching Challenges1. National inconsistences in public finance with

incentives and instruments at times negating efforts to advance LEDS

2. Gaps in capabilities of the domestic financial sector, impacting their ability to participate with the public sector in financing LEDS

3. Fragmented and poorly coordinated international cooperation efforts

Have you encountered other high-level challenges not recorded here?

Public Sector RoleGovernment leadership of the “homework” effort, can include identifying:

1) National priorities

2) Specific resources needs

3) Analysis of barriers to mobilize private investment and strategies to overcome risks and create increased rates of return

4) Domestic capacity to finance its plans

5) The role required from international development partners

Public Sector Role

INCREASING IMMEDIATE AND LONG-TERM

INVESTMENT

ENABLING POLICY

FRAMEWORK Regulations,

standards, clear price signals

GOVERNMENT FINANCIAL

INSTRUMENTS Grants,

guarantees, concessional loans

PUBLIC BUDGET SUPPORT

Procurement, public-private partnerships,

Budget allocation

MOBILIZED LEDS WITH REDUCED EMISSIONS AND ENHANCED CLIMATE RESILIENCE

LEDS POLICIES, PROGRAMS, and PROJECTS

Climate change strategies, green growth strategies, sectoral initiatives, low emission and /or climate resilient technology oriented policies

Private Sector Role• Support the LEDS planning phase by contributing to

stakeholder consultations in which governments seek to better understand the current barriers that could impede investment in LEDS technologies.

And of course, create

new businesses, invest

and finance!

Private Sector Informed Approach to Implementing LEDS

Identification of risks

Policy actions

Challenges to policy

uptake

What other key actions can the private sector support?

International Development and Finance Communities’ Roles

Technical assistance

Capacity building

Knowledge sharing

Applying the Framework• How can this framework be applied?• Would there be value in further developing regional

case studies? • Is it helpful to have a common slide deck on the

finance framework and make it available to structure future training?

• Would there be value to countries in the LEDS GP and regional platforms supporting a matchmaking role between countries and finance/funding and finance technical assistance providers?

PART 2 OF THE PLENARYAmal-Lee to present on strategic approaches