result based climate financing (rbcf): climate finance...
TRANSCRIPT
Result Based Climate Financing (RBCF):
Climate Finance Initiative
Mbeo Ogeya
28th – 30th June 2016
Africa Carbon Forum
Stockholm Environment Institute (SEI)
The Stockholm Environment Institute (SEI) is an independent international
research institute. We have been engaged in environment and development issues
at local, national, regional and global policy levels for more than 25 years.
SEI has centers in: -
• Stockholm (head quarter),
• York, Oxford,
• Tallinn,
• US (Seattle, Boston and Davis),
• Asia (Bangkok) and
• Africa (Nairobi).
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Managing
Environmental Systems
Reducing Climate
Risk
Transforming
Governance
Rethinking
Development
SEI
WFE Nexus UrbanizationBehavior and
ChoiceClimate Finance
Fossil fuels and climate
change
Low emission development
pathways
Sustainable Sanitation
Producer to consumer
sustainability
Transforming development and disaster
Risk
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SEI - Climate Finance Initiative
Source: Adapted from SEI Fact Sheet on CFI
Our Focus on Climate Finance Initiative
The Overarching question??
CFI scoping in Kenya
The scoping focuses on the interface
between public and private finance within
the two key Climate Financing initiatives
in Kenya, the KCIC and NETFUND
Re-invigorating the global
climate finance paradigm
Private finance and implication
for public climate finance
Defining and operationalizing
“intolerable risk”
Effectiveness in the context of
broader financial flows
How do we
evaluate
effectiveness?
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Why the
study?
Demonstrate short-term climate
finance impacts and effectiveness
based on key factors such as:
Mitigation perspective: - CO2 abated,
annual turnovers, land use change
Adaptation perspective: - Increased
productivity, employment created,
increased food security, reduced
vulnerability to climate change impacts
Highlights of public/private climate
finance activities in Kenya
Identify and evaluate linkages
between climate change mitigation
and adaptation
How do we
do this?
Building research questions around
actors activities
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Climate Finance Actors in Kenya: The case of Kenya Climate
Innovation Center and National Environment Trust Fund (NETFUND)
NETFUND KCIC
Established within the EMCA of 1999; officially commenced operations in 2008
Mandate: Awards, Research & Publications, Capacity Building & Grants
NETFUND Awards Programs – Nature Challenge Award & Prestigious Green Award, Green Innovation Awards
Established by the World Bank, DANIDA and DFID through a consortia in 2012
Mandate: Incubation, Enabling environment, access to finance, Access to Technology, access to information
KCIC finance projects in Energy, Agribusiness and Water – Proof of concept grants and Seed financing
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Key focus areas for CF delivery
Energy – Renewable energy, energy
efficiency, alternative energy,
Agribusiness –value-addition,
Post-harvest loss, Increased
productivity, innovative
business models, New farm methods
Water and Sanitation–
portable Water, Waste
management,
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Both KCIC and NETFUND are focusing on three main thematic areas
as highlighted below. The areas are key to government Vision 2030
agenda and national climate change action plan 2013 - 2017
Climate Finance Projects
020406080
Project Distribution
KCIC NETFUND
0
5
10
15
20
25
KCIC NETFUND
Agribusiness
Land Management
Change of cropping
strategies
New germs/change
of cultivars
12
8
4
4
2
2
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2014-2015 KCIC PoC grants awarded
USD 800,000,100%
USD 639,641,79.95%
USD 493,032,61.63%
USD 160,359 ,20.04%
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Total PoC grantavailable
POC grantcontracts awarded
POC grantcontracts awarded
& disbursed
POC grantcontracts not
awarded
Improving livelihoods
358,547,
50,000,
167,559,
63,559%
-
50,000.0
100,000.0
150,000.0
200,000.0
250,000.0
300,000.0
350,000.0
400,000.0
RE Water AG RE/AG
Amount ($)
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Selected cases: KCIC Agro-business projects
Case 1: Aviva Nest
Nerica rice – Non flooded agriculture
Started in 2014
Reclamation of Arid land in Northern Kenya
Practice non-flooded agriculture
Reduced CH4 emission
Climate change adaptation
Alternative livelihoods
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Selected cases: KCIC Agro-business projects
Case 2: SunCulture
Sun-culture
Solar drip irrigation
Agrosolar irrigation system
Saves up-to US$200/month on diesel/electric pumps
Highly efficient
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Selected cases: KCIC Agro-business projects
Case 3: STAWI food Ltd
Banana value addition
Started banana value addition in 2011
Product list: fortified porridge flour, bakery flour, natural resistant starch flour
Post harvest loss reduction and fighting hunger and malnutrition
Increased product self life
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Selected cases: KCIC Agro-business projects
Case 4: Mineral and Allied
Mineral and Allied fodder
Admission Date –June, 2013
Nature of business –Agribusiness
Climate Finance Fund received – US$ 39768
Own money – US$ 60,000
Leveraged money –US$ 97,000
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Activities
- Training of farmers - Supply of the systems - Supply input materials -
Diversify to other high value crops - Venture in urban agriculture
Fodder in 7 days 12ft x 6ft equivalent to 2 acre of land fodder
Kitchen garden 20 stems of tomatoes for
family of sixMixed cropping, lettuce and tomatoes
Photos from: Mineral and Allied training manual
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Preliminary study results on increase in
productivity
Crop Yield using soil Yield using hydroponics
(No. of harvests a year using
hydroponics)
(tons per hectare at harvest
time)
(tons per hectare at harvest
time)
Lettuce (10) 52 300-330
Tomato (2) 80-100 350-400
Carrot 15-20 55-75
Potato 20-40 120
Cabbage(3) 20-40 180-190
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Source: Mineral and Allied field test report
Environmental Gains
Adaptation to Climate
change
Climate change
mitigation
Enhanced ecosystem
services
No effect of temperature
variation or drought or flooding
Reduced forest degradation and
deforestation (REDD)
Conservation of natural forest
resource hence biodiversity
protection
Grown under green house,
reduced maturity time
Carbon foot prints on production
of conventional fertilizer
Pest control GHG emission abated
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Socioeconomic Gains
Benefits Description No.
1 Employment by Mineral and allied 18
2 New demo centers 10
3 Annual turnover US$ 180,000
4 Farmers trained on hydroponics 5200
5 Farmers adopting hydroponics 1600
6 New business along the value chain 7
7 New employment opportunities created 11,200
8 People benefiting 67,200
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Opportunities and Challenges
Opportunities Challenges
a) Financial
Increase in sales
High valued
Financial
Ability to open more demo farms to reach all our farmers
in other areas
b) Economic
New jobs created hence more productive benefit
the local community
Economic
Shortage of resources like piped water
Meeting the demand of supply of vegetable
c) Legal/Policy
Wants the considered as one of the organic farming
in Kenya
Legal/Policy
Being a new technology it’s not yet recognized in the laws
of Kenya
d) Social
Our technology biggest marketing has been through
word of mouth because our farmers have been able
to promote through their social groups and
networking’s which in turn bring more customers
Social
Being a new technology a lot of awareness has to be
created in order for farmers to accept it since they are
used to their traditional methods of farming
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Climate change adaptation/Mitigation synergies
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Climate Finance
Intervention
Adaptation Issue Mitigation Issue Vulnerability to
climate change
impact
1. Hydroponic
agriculture (Mineral and
Allied)
• No. soil cultivation
• Adaptation to
prolonged drought
• Green house
system hence pest
control
• Reduced
afforestation for
farming and forest
degradation
• Insignificant
2. Value Addition to
banana (STAWI Food)
• Reduced post
harvest loss and
value concentration
• Reduced
productivity
3. Non-Flooded Rice
farming (AVIVA Nest)
• Suitable selection of
species for
changing climate
• Take shorter
maturity time hence
resilient to climate
change impacts
• Reduced GHG as a
result of CH4 in
flooded agriculture
• Minimal
THANK YOU FOR YOUR TIME
Africa Carbon Forum