Download Asia-Pacific Outreach Meeting on Sustainable Development Financing Session 4: Climate finance

MINISTRY OF FINANCE REPUBLIC OF INDONESIA Asia-Pacific Outreach Meeting on Sustainable Development Financing
10-11 June 2014
Djuanda Hall, Ministry of Finance Complex, Jakarta
Session 4: Climate finance
Presentation
Scaling Climate-Smart Finance in China
by
Changhua Wu
Greater China Director, Climate Group
June 2014
The views expressed in the presentation/paper are those of the author(s) and should not necessarily be considered as
reflecting the views or carrying the endorsement of the United Nations. This presentation/paper has been issued without
formal editing. SCALING
CLIMATE-SMART FINANCE
IN CHINA
WU Changhua
Greater China Director, The Climate Group
June. 10th,2014
Jakarta, Indonesia
REALITY CHECK
LANSCAPE OF CLIMATE FINANCE IN CHINA
Sources
Media
Instruments
Use
Public Finance
from Developed
Countries
Multilateral Financial
Institutions and Funds
Donations
Adaptation
Domestic Finance
Bilateral Financial
Institutions and Funds
China CDM Fund
International and
Domestic Carbon
Market
Charitable
organizations
Policy Banks
Social Security Fund
Sovereign wealth Fund
Concessional
Loans
Incentive Policies
Lease
Carbon Credit and
Derivatives
Bonds
Financial Market
Direct Investment
Mitigation
>95%
Carbon Finance Services
and Intermediaries
Loans
Insurance Companies
Commercial Banks
Investment Banks
Investment Fund
Stock Equity
CLIMATE RESILIENCE AND LOW CARBON PROSPERITY
— Sizing the Challenge: the economics of climate adaptation
— Seizing the Opportunity: Climate resilience compatible to economic
growth; infrastructure and innovation fundamental source of economic
growth; transition towards low carbon economy as investment; capital
available
— Creating the Demand: Policy incentives and disincentives, forces of push
and pull, ROI
— Capturing the Market: Capability in policy and project design and
implementation
— Measuring the Impact: Tracking progress to learn, improve, scale up, and
speed up
AN INTEGRATED CLIMATE FINANCE POLICY
ECOSYSTEM
CLIMATE FINANCE GOVERNANCE AND INSTITUTIONS AT
NATIONAL LEVEL
The Climate
Change LAW
National Leading Group for Climate Change, Energy Conservation and Emissions Reduction
NRDC
Special Fund
for South-South
cooperation on
Climate Change
MoF
Special Fund
for Climate
Change
Implementers: MIIT,
MoST, MoT, MoA, MoST,
MoHURD, National
Energy Bureau, National
Forest Bureau, MWR,
MoH, State Ocean
Admin, Meteorological
Admin
Supervision
departments:
CBRC, CSRC,
CIRC
Climate finance
market
Mitigation, Adaptation, Technology R&D, Capacity Building and International Cooperation
Note: the institutional arrangements in red are in progress of national action plan.
EXAMPLE: PUBLIC PRIVATE PARTNERSHIP - LEVERAGING
China Clean Development Mechanism Fund
Source: regular capital injections from levies collected by the government
on CDM projects in China.
China Clean Development Mechanism Fund
Grants
More than USD 81
million support over 200
projects on policy
studies, research,
capacity building and
public awareness related
to climate change
Strategy
Development
Impact
leveraging private
sector up to USD 5
billion by providing
loans of USD 850
million.
Loans
Energy efficiency, and
new energy projects that
generate total emission
reduction of over 7
million tonnes of CO2
equivalent .
social and
environment impacts
ensured by
environment and social
safeguards
Replicable in other
regions of China and
introduces, innovates
many climate finance
tools
Note: Data collected as of end of 2013.
EXAMPLE:PPP - CHISHUI RIVERSHED PROTECTION FUND
存续期：
10+2年
Sources of $
PUBLIC
Government fund
Multilateral
Donations
Public pool
伙伴关系
利益共享
PPP模式
2 billion
RMB
资金使用
COMMERCIAL
Bilateral
Trust
Institutional
Technology cos
风险共担
Commercial
pool
3 billion
RMB
硬件基础设施项目
6个主要领域
对软件基础设施项目的赠款
开展小额贷款等金融服务
对赤水河流域内的投资不低
于基金总规模的60%
提供风险池功能
股权投资
为回报率低的商业项目贴息
投资限制
8
EXAMPLE: CARBON MARKET
Carbon Market Piloting Emission Trading Scheme
Oct, 2011 State Council --- Cap-and-Trade pilots in 7 cities and provinces announced,
being the second largest in the world, following only the European Union
Essential
blocks
sectors subject to ETS; emissions sizes
accounting boundaries; choosing allocation of emissions allowances
size of cap and reduction trajectories; MRV
Coverage
apply to power and other heavy
manufacturing sectors: steel,
cement, and petrochemicals
policies
third party
verification of
emissions data.
cover roughly 40 to 60 percent of
a city or province’s total emissions
allows to purchase
offsets for 5-10% of
their emissions
reserves allowances
for carbon price
stabilization
Newly national
Update
National system to register GHG
emissions from key enterprise
NDRCGHG accounting and reporting
guidelines for 10 industries
Next Plan
cross-region emission trading
National-wide emission trading
EXAMPLE: MAHARASHTRA, INDIA
Thank you for you attention.
Changhua Wu
Greater China Director, The Climate Group
[email protected]`