Alexis BONNEL

1
Infrastructure Trust Fundand Climate Change

• Alexis BONNEL
• Sector Operations
• Agence Française de Développement

2
ITF and Climate Change

• The insiders view
• Contribution of ITF co-financed projects on
  climate change mitigation and adaptation
• The outsiders view
• A performing blending instrument
• An example to follow by Climate Change
  negotiations on future financing architecture

3
Climate Change inside ITF

• Climate change adaptation mitigation are major
  issues in Sub-Saharan Africa
• Adaptation many countries extremely vulnerable
• Mitigation increasing dependence on fossil
  energy poor resilience of development paths to
  external energy shocks (depletion of fossil
  resources, price volatility, ) deforestation
• ITF already contributes on both agendas at
  project level
• Climate impact of projects is optimized by also
  working at policy making level and through
  capacity building
• e.g. spatial planning
• Flexible interpretation of geographical scope and
  regional mandate of ITF needed
• e.g. improving performance of national power
  utilities, addressing energy efficiency and
  demand-side management issues,

4
Climate Change inside ITFNext steps ?

• Request systematic carbon footprint (mitigation)
  ?
• Request systematic vulnerability analysis
  (adaptation) ?
• Define carbon objectives/guidelines/strategies of
  ITF ?
• Enhance knowledge sharing, best practice
  dissemination and joint analytical work between
  ITF members

5
The outsiders view Climate finance and ITF
Source Bilateral Finance Institutions and
Climate Change A Mapping of Climate Portfolios
Stockholm Environment Institute, 2009
6
Current situation of international public
climate finance
Bilateral EIB 66
Multilateral 34
2008 data, based on climate finance reporting of
relevant institutions NB European Commission
does not currently report on EdF climate change
interventions Several programs sponsored by EdF
could be considered as climate finance, including
some funded by the Energy Facility
USD 18 bn (EUR 12 bn) committed annually on
mitigation and adaptation
7
Climate finance / COPA paradigm change

• Tackling climate change means investing
• In all sectors energy, transportation, water,
  housing, industry, agriculture
• By structuring demand and making projects
  financially viable
• Catalyzing hundreds of billions
• By mobilizing the whole range of existing and
  future means of financing national and
  international tax system and markets, carbon
  markets, public and private sector
• By creating leverage effects with tools dedicated
  to climate stockholders equity, grants, loans,
  guarantees
• and reforming ODA, a major player in supporting
  countriesand catalyzing finance
• By creating a system that responds to countries
  demands
• By supporting and reinforcing the emergence of
  national institutions in developing countries
• By conditioning aid solely on the criteria
  determined by the COP
• By guaranteeing priority of access to the poorest

8
An innovative and quickly operational financial
mechanism

• Governed by the Parties
• Giving developing countries the choice of their
  donors
• Promoting collaboration and competition
• For more innovation and efficiency
• Using funds fairly
• By adapting budgetary efforts to the nature of
  the investments and beneficiaries
• By using subsidies to make projects financially
  viable
• By attracting public and private, international
  and national investments
• And quickly
• By mobilizing all existing channels
• Predictable and sustained flows, guaranteed by
  the COP
• By placing the mechanism under the authority of
  the COP
• By creating a binding system of financial
  contributions by Parties

9
International blending facility
COP
NAMAs
Adaptation strategies
High Level Body
Registration Database
Policies/Local govts/Companies
Financing requests
Executive committee of the Facility
Grants loans guarantees other financial
tools
Additional grant requests as needed
Credit committee of the International blending
facility
Grants
International blending facility
Contributions by Parties and/or innovative
financing mechanisms
Grants
Pool of financiers National, bilateral,
international, private
10
Thank you