1. THE SUSTAINABLE ENERGY AND CLIMATE CHANGE INITIATIVE Sustainable Energy of the World Smart Solutions in Renewable Energy and Energy Efficiency Annual Energy Sector Meeting November 3, 2009

2. SECCI Timeline  2007A: The Sustainable Energy and Climate Change Initiative (SECCI) was created by the IDB Board of Directors.  2007B: The Board allocated US$20 million from the Special Program of Ordinary Capital resources to the SECCI-IDB Fund for Technical Cooperations (TC). The SECCI Multi-Donor Fund was established with US$25 million from partner countries.  2008B: Establishment of the multi-party SECCI Eligibility Committee.  2009A: SECCI activities were consolidated and the Sustainable Energy and Climate Change Unit (INE/ECC) was established. Source: Instituto Nacional de Tecnología Agropecuaria (INTA)

3. SECCI Areas: The Four Strategic Pillars i.Expanding investment in Renewable Energy and Energy Efficiency technologies; ii.Increasing investment of sustainable bio-fuels; iii.Increasing access to international Carbon Finance markets; iv.Mainstreaming of adaptation to Climate Change into policies and programs across sectors in LAC. SECCI Technical Cooperation Investment Grant Stand Alone Renewable Energy and Energy Efficiency Carbon Finance Bio-fuels Development Adaptation to Climate Change

4. Primary Objectives Work with national and regional institutions to develop and integrate Climate Change (CC) and Sustainable Energy (SE) objectives into relevant strategies and plans. Framework for cooperation to foster: i.Stakeholder’s awareness of CC and preparedness ii.Policy innovation iii.Strengthening and/or creation of institutional capacity iv.A strengthened knowledge-base on CC and Sustainable Energy v.Introduction and application of science and technology into the decision-making process Images: NCAR – Washington DC May 2008 FONTAGRO: Fondo Regional de Tecnología Agropecuaria

5. Results: Renewable Energy and Energy Efficiency Promotion i.SECCI provided country-level policy assistance in supporting Renewable Energy and Energy Efficiency Programs in 10 countries of the Region. ii.SECCI funded studies that examined the strategic aspect of developing markets for Renewable Energy components (such as wind blades in Brazil), as well as studies that analyzed the potential of wave and tidal energy (as in the case of Chile).  Wind energy -- steady and impressive growth rate (25–30%) in 10 years.  The doubling of installed wind power capacity reduces costs per kWh produced by new turbines between 9% and 17%.  Installed wind power capacity doubles every 4-5 five years. * The Economics of Wind Energy. European Wind Energy Association EWEA, March 2009.

6. Results: Renewable Energy and Energy Efficiency Promotion iii.SECCI, jointly with SCF and ENE, supported three regional Technical Cooperations that provided quick access to high quality consulting firms in the areas of Renewable Energy generation, either public or private, as well as to Energy Efficiency auditors for water utility and private sector companies.  The energy audit for ENACAL (Nicaragua) identified US$2.9 million in potential energy savings (and additional potential savings of 15–20% over the next three years) with a payback period of only eight months, to be achieved with US$1.9 million in programmed investments.

7. Results: Sustainable Bio-fuels Development i.SECCI provided country-level policy assistance in support of bio-fuel development: Blueprints in DR., Haiti and El Salavador; Action Plans in Honduras, Colombia, Guatemala and Mexico. ii.SECCI started working with private sector investment officers to increase awareness regarding the range of sustainability factors - economic, social, and environmental - when reviewing bio-fuels projects for investments. iii.SECCI supported two regional meetings of the Mesoamerican Bio-fuels Working Group to support them in coordinating their efforts. iv.The SECCI Initiative and the Structured and Corporate Finance Department (VPP/SCF) created a Bio-fuels Sustainability Scorecard based on the sustainability criteria of the Roundtable on Sustainable Bio-fuels. **Images: Instituto Nacional de Tecnología Agropecuaria (INTA)

8. Results: Increasing Access to Carbon Markets i.SECCI is supporting local institutions to increase capacity to develop and promote projects and their treatment under the Clean Development Mechanism (CDM) scheme. Examples include the implementation of TC projects like the “Country Program for Energy Efficiency (Chile)”, and support provided to the “Mexican Carbon Fund (FOMECAR);” ii.SECCI resources have supported the enhancement of the role and involvement of local financial institutions in the Carbon Markets, such as NAFIN (Mexico), BDMG (Brazil), and Bancolombia (Colombia); iii.An information and capacity building platform on Carbon Markets is currently being promoted in conjunction with the World Bank. NCAR – Washington DC May 2008

9. Results: Mainstreaming Climate Change Adaptation into IDB Operations and Country Development Plans i.SECCI is financing a set of Technical Cooperation projects that promote the implementation and dissemination of State Action Plans against Climate Change (PEACCs) in five vulnerable states (currently in a first phase). ii.SECCI is providing financial support to the National Environmental Authority of Panama (ANAM), supporting its ongoing effort to elaborate a National Climate Change Action Plan. iii.SECCI is also providing the Region with tools to assess vulnerability and anticipated impacts of Climate Change. For that purpose, SECCI established a collaboration agreement with the scientific partner the National Center for Atmospheric Sciences (NCAR).

10. SECCI Products SECCI Products 2007 - 2008 Financial ProductsNon-Financial Products Technical Cooperation Projects 53Conferences12 Investment Grant Projects 0 Memorandums Of Understanding 6 Policy Based Loans1KCPs2 CIF Investment Plan1 Full Time Expert Advise on CC 4 Operation Related Activities: involve the use of financial products such as Technical Cooperation and Investment Grants in the areas of Climate Change and Sustainable Energy. Institutional Strengthening Activities: involve activities for institutional strengthening in CC and SE Policies of borrowing countries. Includes Knowledge and Capacity Building Products (KCP), Climate Change Dissemination Activities (i.e. Conferences and Workshops on CC), and Partnership Development and Trainings. Embalse Limon Tunel transan dino CH2 Conmutador Túnel de aducció n CH1 Túnel de aducció n Riego 37,000 ha en Olmos LAMBAYEQUE CAJAMARCA Embals e olmos PIURA

11. Policy Based Loans (PBLs) for Climate Change (CC) Objective: Create institutions, operational mechanisms, and policy frameworks for the mainstreaming of adaptation and mitigation into public policy. Experience of Mexico (2008 $200m and 2009 $400m):  Promoting leadership on Climate Change policy from Finance Ministries.  Creating institutional space, cross- Ministerial dialogue, and collaboration on Climate Change.  Continuous and phased approach to policy change and capacity strengthening – effective mainstreaming tool.  Generating new ideas; policy innovation and sharing of lessons across and between Governments. *IPCC Fourth Assessment Report: Working Group II Report "Impacts, Adaptation and Vulnerability" *

12. Statistics i.SECCI-IDB Fund approved 28 TC projects for US$16,496,412. ii.Multi-Donor Fund provided resources for 25 TC projects for US$11,747,564. iii.Multi-donor Fund resources were used by the SECCI for the provision of five secondments of technical experts (US$513,024).

13. Plan for 2009-2012 Scale-up SECCI activities across the Bank for:  Low carbon growth;  Climate resilience;  Institutional strengthening and mobilizing new finance;  Set ambitious target for low carbon energy: potentially 50% for 2012 with interim targets to 2020. Strengthen the safeguards aspects of Climate Change, develop:  Guidelines on minimum Climate Change performance criteria;  Guidance on assessing and managing projects contributions to Climate Change;  Capacity to assess the risks and vulnerability of projects as a result of Climate Change;  Report on the carbon footprint the portfolio of operations.

14. Last Minute Update… Total TC approvals as of September 20, 2009: SECCI - SCI Fund: 33 projects for US$19,696,000 MSC MultiDonor Fund: 30 projects for US$15,000,000 Investment Grants: 3 projects for US$2,250,000 TCs under preparation & reviewed by SECCI Eligibility Committee as of September 20, 2009: 14 projects for US$9,630,000

15. Thank you !!!!