Download Mr. Llyod Chingambo - United Nations Economic Commission for

INNOVATIONS IN THE PRIVATE SECTOR RESPONSE
TO CLIMATE CHANGE AND THE AFRICAN CARBON
MARKET DEVELOPMENT
Lloyd Chingambo
Seventh African Development Forum
Addis Ababa. Ethiopia
October 15, 2010
The Big Question
Private sector as viable partner in dealing Africa’s climate
change agenda
Africa Carbon Credit Exchange
Telephone: +260-1-238473/2
www.africACCE.com
The Current Position
Africa has little or no access to finance
Private sector remains on the sidelines
Domestic financial sector does lending to climate change
projects
Little or no support for climate change investments
Absence of legal framework to support and protect climate
change investments
Little attempt to use what funds, as are available, to unlock more
funds for climate change
No real attempts to create/generate funds for climate change
Little appreciation of the interlocking relationship between
Climate Change and Development.
Africa Carbon Credit Exchange
Telephone: +260-1-238473/2
www.africACCE.com
Key Problems of the African Carbon Market
1. LACK OF FINANCE
Lack of project finance opportunities stifle low carbon project
development
2.
LACK OF KNOWLEDGE
Lack of awareness, knowledge and competencies to leverage
global carbon market at all levels (governments, private sector,
financial sector, project developers, etc).
3.
LACK OF BASELINE METHODOLOGIES
Much of Africa’s economic activities are agro-forestry based.
Low Carbon
Africa
Africa Carbon Credit Exchange
Telephone: +260-1-238473/2
www.africACCE.com
Crafting Problem Specific African Solutions
Awareness
and
Sensitization
Commercial
Interest in
Low-Carbon
Projects
Project and
Carbon
Finance
Low-Carbon
Project
Development
Carbon
Credit
Trading
Enabling
Policy
Environment
Trading Platform
Access to Knowledge
Access to Finance
The Unique Design of ACCE
Africa Carbon Credit Exchange
“Unlocking Low Carbon Africa”
Access to
Finance
Access to
Knowledge
Trading
Platform
Low Carbon
Africa Fund
Portfolio
The Green
Knowledge
Institute
A Transparent
and Structured
Marketplace
PROJECT PIPELINE DEVELOPMENT
Facilitate Access to Finance
Lloyds
(Fund Manager)
Offshore Investors
Co-Fund
Manager
Zambian Investors
Mandate
•
•
•
•
Facilitate the development of
innovative
instruments
and
financing
structures
thereby
unlocking finance to catalyze low
carbon project growth in Africa.
Develop financing structures which
would offer different risk profiles
to unlock both the private sector
and the domestic financial sector.
Facilitate financial access and
market development for project
promoters
including
the
smallholder farmer
Facilitate
appropriate
green
technology transfer to Africa.
LOW CARBON AFRICA FUND
GTCEF
AMGF
LCAF 1
WEF
Green Technology
Credit
EnhancementFund
Fund
Green Technology
Credit
Enhancement
Stage 1. ACCE Undertakes
Evaluation and Engineering
of Primary Securities.
Stage 2.a. With Better Presentation of
Securities, Some Clients Go Straight to
the Lender.
INDIVIDUAL
IMPORTER
LIQUID ASSETS
Banks
ENHANCED
SECURITIES
Private Equity
Funds
TANGIBLE ASSETS
Public
Bodies
Stage 2.b. Less Secure Clients will access
components of the GTCEF
CREDIT ENHANCEMENT FUND
EQUIPMENT
POLITICAL RISK
INSURANCE
SYNDICATE
OF
IMPORTERS
Development
Banks
OFF-TAKER
AGREEMENTS
CARBON CREDITS
LIABILITY
INSURANCE
CASH
GUARANTEE
Govt.
ENHANCED
SECURITIES
PROPERTY
INSURANCE
Stage 3. Provision of
Climate Change
Technology Transfer
Funding
TRADE
INSURANCE
TECHNOLOGY
TRANSFER
INCENTIVE
FUND
Income: Donor
Agencies
Income: Money
Market
FINANCE TERMS
Income: Investors
International
Funds
The Mechanization Guarantee Fund
Strategic Aims of the Fund
Facilitate mechanization of rural agriculture
Facilitate improved production and yields for the
rural Farmers
Mobilise and secure finance for purchasing
equipment
Increase technical support to rural farmers
Facilitate the development of sustainable and lower
carbon footprint rural agricultural practices.
Africa Carbon Credit Exchange
Telephone: +260-1-238473/2
www.africACCE.com
Facilitating Access to Knowledge
Green Knowledge Institute (GKI)
Strategic Aims of the Institute
Knowledge Hub for carbon market development in Africa
Information Sharing Hub for African Designated National
Authorities (DNAs)
Facilitate the development of African appropriate carbon
methodologies
Deal with issues of sensitization and capacity building issues
(e.g., governments, public and private sectors, NGOs, and private
sector
GKI is developing into a Bureau for connecting required technical
expertise to develop carbon offset projects.
The Trading Platform
A Transparent and Structured Marketplace
ACCE is building a regulated trading platform on which market
players can buy and sell credible compliance and voluntary
carbon credits generated in Africa
It provides a transparent price discovery mechanism is essential for
African project developers to realize market value for carbon credits
Through a network of Brokers and local partners across Africa
ACCE will provide a medium for transaction, clearing and supporting
structures to facilitate climate change/carbon projects.
Network of Brokers across Africa
Network of
Brokers
Scaling up to
Africa
Partners
INSTITUTION
TYPE OF SUPPORT
1. USAID/PROFIT


Initial Financial Support
Technical Assistance
2. NORAD

Conservation Farming,

Initial capitalizations into:
o
Green Tech. Credit Enhancement Fund,
o
Mechanization Credit Guarantee Fund
3. DANISH GOVT.
 Funding the p-CDM activities
4. WORLD BANK/IFC


Conservation Farming,
Green Knowledge Institute.
5. UNEP Risoe

Green Knowledge Institute.
6. QUEENS UNIV. CANADA
 Development of Futures Market on the
Trading Platform.
Partners
INSTITUTION/GOVT.
TYPE OF SUPPORT
7. AFREXIM BANK




Line of Credit
Carbon Credit Delivery Guarantee Fund
ACCE contracted to be Afrexim Bank CDM Project
implementation Advisor
Afrexim Bank to finance ACCE CDM project book.
CONTACT DETAILS
AFRICA CARBON CREDIT EXCHANGE
4th Floor, Godfrey House. Kabelenga Road.
P.O. Box 390035
Lusaka. Zambia
[email protected]
[email protected]
Website: www.africACCE.com
Telephone: +260-1-238473/2