Capacity-Building on GCF project development Emiko Matsuda Senior Researcher, Overseas Environment Cooperation Center, Japan

Programme on facilitation of project development utilizing the Green Climate Fund supported by MOEJ Implementation entities: Overseas Environment Cooperation Center, Japan Asia Institute of Technology Mitsubishi UFJ Morgan Stanley Securities MUMSS Contents of TOR Basic survey on access to GCF (2) Study Group on access to GCF finance (3) Capacity-building support for next generation project development (4)　 Information dissemination on CB support on GCF

Workshop on Understanding Paradigm Shifts: Japan’s efforts on developing countries’ accelerating access to the GCF Date: 13 February, 2018 Place: Bangkok, Thailand Participants: Thailand, Bangladesh, India, Maldives, Bhutan, Lao PDR, Myanmar, Nepal, Sri Lanka, and relevant international organization Mind changes and get community involved in order to sustain the project.

Objectives for the Workshop Exchange views on what a paradigm shift and a transformative change are Discuss how AEs, NDAs, and project proponents can integrate a paradigm shift in country programmes and project proposals Showcase Japan’s efforts towards a low-emission and climate-resilient development pathway

What is “Paradigm shift” all about? GCF investment criteria defines Decree to which the proposed activity can catalyze impact beyond a one-off project or programme investment Definition by Thomas Kuhn in 1962: One conceptual world view is replaced by another Examples, Shift to agriculture from hunting gathering primitive society. The introduction of the personal computer and the internet. What is the paradigm shift potential to include as a GCF project?

Initial thought #1: Project with paradigm shift Next generation project ・Component of social system (e.g. Smart city) ・Innovative finance system Tricycle business model in Philippines by Global Mobility Service inc. （Note: This is NOT a GCF project） Past (before introduction) Owner of small company is not afford to buy vehicle, or cannot update ⇒　Number of issues such as GHG emission, air pollution and traffic congestion are to remain　 Vehicle manufacturing company Small company Introduce innovative business Lend-electric tricycle Vehicle manufacturing company GMS Service charge Small company Lease company Assets and payment management by IoT technology GMS lend electric tricycle to owner of small company. The tricycle is available when payment of service charge is confirmed by IOT management system. It leads to systematic solution for several environmental issues. 　

Initial thought #2: Project with paradigm shift Innovative finance and business model De-risking derives investment, which provide fund for climate action Approved GCF funding proposal FP006 GCF/B.11/04/Add.06 Funding Proposal Summary for FP006 Energy Efficiency Green Bond in Latin America and the Caribbean Guarantee for Green Bond by GCF and IDB invites institutional investors IDB and GCF provide a loan based on the appropriate rate of interest for an ESCO company. ※Funding proposal using similar financial mechanism was also approved in 19th Board meeting (Mar 2018).

Understandings paradigm shift in other countries and institutions Exploring new paradigm - organize the world around the concept of negative GHG emissions with inclusive growth（The current paradigm driven by availability of fossil fuels scaling up and replication Potential for knowledge and learning Enabling environment Regulatory framework and policies Leverage to project participant Engagement with government and national policies Capacity building and secured human resources Factors for paradigm shift Importance of linkage with local bank when developing project EUのベストプラクティスを基にした省エネ技術 Grass roots approach and community engagement

GCFプロジェクト構築に向けたトレーニングプログラム Date: 19 February – 2 March, 2018 Place: Bangkok, Thailand Country participated: Bangladesh, Fiji, Indonesia, Mongolia, Papua New Genie, Philippines A total of 28 participants, 6 representatives of National Designated Authorities, 8 representatives of Direct Access Entities, 14 representatives of project proponents and partner institutions. Expected output 1. GCF Concept Note 2. Project Preparation Facility (PPF) application 3. Terms of reference for a project feasibility study 4. Roadmap forfollow-up activities.

Output from the training program 11 GCF Concept Notes were developed, including 8 mitigation and 3 adaptation   A total funding requested from the GCF would amount to USD 350 million. This would include 1 Micro, 8 Small, and 2 Medium-sized projects. 10 Terms of Reference for project feasibility studies were prepared. Project Preparation Facility requests were developed with one PPF request submitted to the GCF Secretariat during the Training Programme.

Thank you for your attention