GEF Presentation made during OECD/IEA CCXG Global Forum March 2014: Scale-up and replication of Climate Finance: GEF Perspectives

1. OECD Climate Change Expert Group Global Forum
Breakout Group 2
Scale-up and replication of climate finance interventions
Chizuru Aoki
Coordinator, Climate Change Mitigation Team
19 March 2014
Scale-up and Replication of Climate
Finance: GEF Perspectives

2. Key Questions
• What are broad lessons from replication and
scaling-up experiences to date?
• What are implications for the balanced provision
of climate finance between mitigation and
adaptation?

3. Snapshot of GEF
Adaptation
• Since 2002 through
SPA, LDCF and SCCF
• 230 projects
• Total GEF grant of
~$1.2 billion
• Co-financing of ~$5.5
billion
Mitigation
• Since 1991, through
GEF Trust Fund
• Over 750 projects
• Total GEF grant of ~ $3
billion
• Co-financing of ~ $25
billion
 Tailor support to specific needs of each project and country
 Facilitate partnerships among international organizations, authorities, private
sector and other actors to create conditions for successful climate finance

4. Impact of GEF Interventions
 Progress towards impact: assessed through extent of broader adoption
of interventions by stakeholders
 Replication and scaling-up: two “pathways” for broader adoption
 GEF Climate Mitigation projects showed progress towards broader
adoption, as assessed by GEF Independent Evaluations Office (IEO):
 77% of projects in 4 emerging economies (Impact Evaluation, 2013)
 66% of recently completed projects (5th Overall Performance Study, 2013)
1.
Sustaining
2.
Main-
streaming
3.
Replication
4.
Scaling-up
5.
Market
change

5. Key Evaluation Findings and Lessons
 Successful projects adopted comprehensive
approaches to address market barriers with
targeted supportive policy frameworks
 Project relevance to stakeholders and
demonstration of technology applicability,
effectiveness and feasibility are important
 Projects with large greenhouse gas impact had
replication factored into project design
 Profitability & cost-effectiveness are key for
replication  needed for private sector engagement
 Roles of countries as regional leaders are important
for scaling-up, if facing comparable challenges
 Technical standards and national support policies
are effective for scaling-up (GEF IEO, 2013)

6. GEF Approaches to Enhance Cooperation in
Climate Finance
Transforming policy and regulatory environments
Demonstrating innovative approaches
Strengthening institutional capacity
Building multi-stakeholder alliances
De-risking partner investments
 Pursuing complementarity in climate finance is key to facilitate
replication and scale-up
 GEF invests in individual and across focal areas to deliver global
environmental benefits, through five approaches

7. Example: Demonstrating Innovative Approaches
Source: Fraunhofer-ISI, “Assessment of the World Bank/GEF strategy for the market development of concentrating solar thermal power” (2006);
Concentrating Solar Power (CSP) in Egypt, Morocco, Mexico
Co-financing: 7.7x
$142M in grants to support four large-scale projects in Egypt, Morocco,
Mexico and India to push concentrating solar power down the cost curve
Source: MSNBC
Partner roles & contributions
▪ World Bank: engaged with different partners across countries depending on policy
and market context, and provided key loans
▪ GEF: supported demonstrations and shared information among countries;
facilitated scale-up investments by CTF & others
▪ Governments: provided significant funding, policy support
▪ Private sector: catalyzed development of an industry & technology where there
previously had been little global activity
▪ Even projects that were less than fully successful
provided key lessons learned for future GEF
and industry investments

8. Example: Building Multi-Stakeholder Alliances
Partner roles & contributions
 World Bank: Soft loans integrated into
regional program (TerrAfrica); loans
supporting Building Resilience through
Innovation Communication & Knowledge
Service at country-regional level
 GEF: Facilitating integration of climate
adaptation, mitigation, land degradation
and biodiversity priorities
 Governments: policy reforms on forest,
agriculture, land management sharing of
traditional knowledge and best practices
Map by John Kappler, National Geographic
Great Green Wall Initiative
Co-financing: 18x
Support regional program with 12 countries to address national priority
challenges of desertification + climate vulnerability in an integrated manner

9. Example: Building Multi-Stakeholder Alliances
Partner roles & contributions
 GEF: public-private
partnership to develop and
promulgate best practices
 Governments: Over 60
countries committed to
phase-out of inefficient
lighting and policy
reforms/incentives
 Private sector: providing key
technical expertise and
corporate leadership

10. Some Thoughts towards GEF-6
1. Enhance synergy among institutions: Complementing each other
and leveraging private sector, towards higher impact together
2. Thematic integration is happening: More projects that address
mitigation and adaptation, multi-sector projects across Conventions
3. Differences exist in mitigation and adaptation financing: Flow of
finance, types of co-financing, etc.
 Pursue complementarity in climate finance: Key theme for proposed
GEF mitigation and adaptation strategies
 Enhance impact on the ground: Five approaches to be used to
inform GEF-6 project development

11. GEF’s Unique Value for Climate Financing
1. Facilitating innovation &
technology transfer
2. Catalyzing systemic impacts through
synergistic multi-focal initiatives
3. Building on Convention obligations
for reporting & assessments
towards mainstreaming
Assisting developing
countries in defining and
implementing mitigation
measures towards 2015
agreement

12. Thank you
for your attention
Please contact us at :
Chizuru Aoki: caoki@thegef.org
1818 H Street, NW, Mail Stop P4-400
Washington, DC 20433 USA
Tel: (202) 473-0508 Fax: (202) 522-3240/3245

13. Proposed GEF-6 Climate Mitigation Strategy
• Program 1: Low carbon technologies
and mitigation options
• Program 2: Innovative policy packages
and market initiatives
1. Promote
innovation &
technology transfer
• Program 3: Integrated low-carbon, urban
systems
• Program 4: Forests and other land use,
and climate smart agriculture
2. Demonstrate
systemic impacts
of mitigation
options
• Program 5: Convention obligations for
planning and mitigation targets
3. Foster enabling
conditions to
mainstream
mitigation
concerns into SD
strategies
Goal:
To support
developing
countries to make
transformational
shifts
towards
low emission,
resilient
development path

14. GEF scaling up models for energy efficiency

15. GEF leveraging private sector investments in
energy efficiency
• 2006, $16.9 million GEF grant,
$200 million IFC loan for EE
marketing, development and
financing services
• 2012, leveraged about $800
million local bank loans for 170
plus EE/RE projects
• Now, mitigates over 19 million
tonnes CO2 pear year = total
annual emissions of Mongolia
• CHUEE 3 is currently under
implementation in China
15
Case study of GEF/IFC CHUEE

16. GEF support to transforming China’s renewable
energy (REDP and CRESP)

17. Recent Analysis:
Impact Evaluation
77 % of 18 projects from 4 emerging economies reviewed in depth showed
high, significant, or moderate progress towards broader adoption
• Replication
– Activities replicated in 15 projects, traced back to GEF projects
– Types of replication: private sector replication; with support by national institutions,
strategies, or policies; through national, GEF, or ODA support; decentralized public sector
replication
• Scale-up
– Scale-up with causal links to GEF projects in 11 projects; 6 projects working on scale-up
with or without GEF or government support
– Types of scale-up: within project countries; in other countries; national support policies
with causal relationship with GEF project, product and technology standards and
specifications developed in GEF projects (GEF IEO, 2013 a, Climate Change Mitigation
Impact Evaluation)

18. Recent Analysis:
Fifth Overall Performance Study of GEF
66% of 113 completed climate change mitigation projects had broader
adoption initiatives adopted or implemented
• Mainstreaming: most common mechanism of broader adoption
– Policy, legislative, and regulatory measures
– Mainstreaming of financing and promotion of energy efficiency and renewable
energy, such as lease purchase agreements, funds, ESCOs
• Replication
– Technologies and infrastructures most commonly replicated
• Scale-up and Market Change
– Not common among project cohort
– Technologies and infrastructure most common measures (GEF IEO, 2013b, Fifth
Overall Performance Study of the GEF)