Leveraging Private Invest-mentsby Public Climate Finance A Global Forum on Climate Change Finance, Dec 2013

Trends and scales of international climate finance:some comparisons

Source: OECD

2005-06 2007-08 2009-100

2

4

6

8

10

12

14

16

Climate change mitigation: principal objective

Climate change mitigation: upper bound estimate (prin-cipal+significant objective)

USD billion

133.5bn

100 bn

Long Term Cli-mate Finance by

2020

Total ODA by DAC Donors in 2011

0

20

40

60

80

100

120

140

160

USD billion

Climate FinanceSOURCES

DEVELOPING COUNTRIES

PRI-VATE

MULTILAT-ERAL

World Bank, ADB etc

BILAT-ERAL

as part of ODA

within the con-

text of UN-FCCC

DOMES-TIC

ALLOCA-TIONS

Source: Lidy Nacpil, 2012

Source: CPI

Climate Finance Flows

Renewable Energy 48.0%Mitigation

49.7%

High-Tech Energy Ef-ficiency 2.3%Chart Title

Export Credit SupportGreen Bond

(for low-carbon & eco-friendly projects)

+

2009 2010 2011 2012 2013(E)0.0

1.0

2.0

3.0

4.0

5.0

6.0

1.2

2.3

3.7 4.1

5.2

Chart Title(USD bn)

CAGR: +43.4%

▒ Green Credit on the Rise ▒ Green Credit by Sector

Eligible Financing Sectors

Fuel Cell, Hydrogen Energy, etc.New Energy

Solar PV, Solar Thermal, Wind, Geothermal, Biomass, Biofuel, Hydro, Tidal, Wave, Waste Energy, etc.

Renewable Energy

Water Supply, Water Sanitation, Waste Treatment, etc.

Mitigation

LED, Smart Grid, HEV battery, etc.High-Tech

Energy Efficiency

Leveraging Private Investments

• (Guarantee) KEXIM introduced Guarantee Program with EDCF to catalyze for private financing by mitigating critical government per-formance risks in developing countries.

Leveraging Private Investments

Indemnity Agreement

Loan

Guarantee Agreement Project Approval

• (Encouraging PPP scheme) In order to finance big infrastructure in collaboration with private investors, KEXIM tries to develop PPP fi-nancing scheme with EDCF.

• ODA LoanEDCFSubsidies/Equity

Loan or Equity

Leveraging Private Investments

To build up overall capacity for climate change actions in cross sectors in the Government of Vietnam

ClimateChangerelated

strategies, policies, etc.

Policy Action Sectors Main Responsible Min-istriesMOIT

MARDMOCRelated ministries

MOT, MOC, MOIT2) Transportation and Construction3) Forestry and Agriculture4) Waste Disposal5) CDM

6) Water

8) Disaster Prevention9) Forestry, Biodiversity and Agriculture

11) Health Care

7) Integrated Coastal Management

10) Transportation and Construction

MOC etcMARD etcMARDMARD, BCA etcMOT, MOCMOH

12) Assessment, Monitoring & Evaluation

13) Financial Mechanism

15) Awareness Raising and Human Resource Development

MOST

MOF, MPI

MPI

MOET

Mitigation

Adaptation

Cross-Cutting

Pillars

MONRE

1) Energy (Renewable Energy and Energy Efficiency)

14) Mainstreaming CC issues to development planning and Program Management of NTP-RCC and SP-RCC

10 Ministries and agencies 35 Depts all together !

Target Financing for Climate Change

Under the “Low Carbon, Green Growth” strategy,the proportion of Green ODA projects of KEXIM(EDCF) was maintained over than 30% in 2012.

3 EDCF Policy Focus in 2012

Green Growth

1. Introduction to EDCF

Interest Discount by 0.05%~0.5%p in Green Growth such as Renewable energy, Energy effi-

ciency, etc

THANK YOU

Staying Focused on the Future

Thank You