1. Asian Development Bank
Results Based Finance for Mitigation
The Future Carbon Fund way !
Asian Development Bank

2. Asian Development Bank An Introduction

3. Asian Development Bank An Introduction

4. ADB Climate Finance (2015)
By Sector
By Region
Total Climate Finance: $2.648 billion Mitigation: $2.367 billion Adaptation: $281 million
Note: In addition, external resources ($239 million) and technical assistance ($29.5 million) to climate support. 4

5. Carbon Market Program Capacity Development Trust Funds
Technical Support Facility
(TSF)
Asia Pacific Carbon Fund
(APCF)
Future Carbon Fund
(FCF)
Japan Fund for the Joint Crediting Mechanism (JFJCM)
Capacity Development 2006 onwards
Carbon Finance
KP-1
Carbon Finance
KP-2
Carbon Finance
2014 onwards
TSF – Commenced in 2006
Implemented through several Technical Assistance
TA 6363: Preparing Clean Energy Projects Eligible for the Clean Development Mechanism
TA 6438: Implementation of the Technical Support Facility under the Carbon Market Initiative
TA 8223: Supporting the Use of Carbon Financing to Promote Green Growth in Asia and the Pacific
TA 8654: Supporting the Use of Carbon Financing from New Carbon Market Mechanisms to Promote Green Growth in Asia and the Pacific
TA 9062: Supporting Low-Carbon Development in Asia and the Pacific through Carbon Markets
APCF
$151.8 million Trust Fund
Commenced in 2007
Fund Participants include Seven European Governments
Supported 71 CDM projects in 9 DMCs
Contracted million CERs
Provided carbon finance support to 1.9 GW renewable energy projects
All contracted CERs received and distributed to Fund Participants
Fund closed in 2014
FCF
$115 million Trust Fund
Commenced in 2009
Fund Participants include Four Governments and two private sector entities from Europe and Asia
Supporting 37 CDM projects in 12 DMCs
Contracted 10.5 million CERs as of March 2016
Providing carbon finance support to 1.2 GW renewable energy projects
Disbursed more than $32 million
Fund will close in 2021
Result Based Finance

6. Turning Cash Flow into Financing
Carbon Market Program
Turning Cash Flow into Financing

7. Participants - Future Carbon Fund

8. Future Carbon Fund Establishment: Status: Commenced operations in 2009
Funding commitments of $115 million
Fund Participants: Government of Finland, Swedish Energy Agency, Participatie Maatschappij Vlaanderen NV (PMV) for Flemish Region of Belgium, Republic of Korea, POSCO and Eneco Energy Trade
Status:
Portfolio of 37 CDM projects as of 31 August 2016
Contracted to purchase more than 10 million CERs
Well-diversified project portfolio including 1.2 GW of Renewable Energy Capacity projects
Projects located in 12 countries in Asia and the Pacific, including 4 Least Developed Countries and 2 Small Island Developing States

9. Unique Features

10. FCF Portfolio
By Project Types (CER Volume)
By Country (CER Volume)

11. Result based Finance - FCF

12. Case Study

13. Kinoya Sewerage Treatment Plant GHG Emission Reduction Project, Fiji (UNFCCC Ref. # 4552)

14. Arial view of the Project
Project Location
Site Location
Kinoya, Suva City,
Viti Levu, Fiji
Arial view of the Project
Biogas Digester
and
Flare System

15. Project Description
The Project involves the augmentation and rehabilitation of the Kinoya Sewerage Treatment Plant (KSTP) located close to the capital city Suva, on Viti Levu Island.
The Project aims to recover methane generated by the anaerobic decomposition of organic matter in the sludge of an existing sewerage treatment plant. The Project treats appx. 472 cubic meters per day of wet sludge.
It introduces methane recovery and flaring system to the existing and new anaerobic sludge treatment units (anaerobic digesters). The Project is a first-of-its-kind methane recovery and flaring activity in Fiji.
The Project is developed by the Water Authority of Fiji under the Ministry of Infrastructure and Transport, Govt. of Fiji.

16. Project Objective
The Project develops and expands water supply and sewerage treatment systems in Suva urban areas of Fiji.
The Project contributed in human and economic development in Fiji through the development of water supply and sewerage services in the Suva urban areas. It improved living standards in the Suva area, particularly for the urban poor.
Being the first methane capture and combustion project in Fiji, it sets an example as a clean technology demonstration model for existing and new wastewater treatment plants in the country.
The Project was registered with the UNFCCC on 03 May 2011 and expected to generate over 22,000 CERs annually.
The Project avoids venting of methane into the atmosphere resulting in environment protection in the region and reducing global GHG emissions
The Project contributed to the country’s sustainable development goals in terms of improving the local environment and hygiene by eliminating obnoxious odors and air pollution, thereby improving the living and working conditions for the local communities
The Project has contributed in reduction of water borne diseases leading to reduced costs due to less expenditure on health
The refurbishment of sewage is a good news for fisher folk and families that forage for their dinners in the waters off Suva. None of their family members has fallen sick from eating seafood
The Project has improved access to sustainable water supply and sewerage services in Suva urban areas of Fiji

17. Project Impacts
The Project avoids venting of methane into the atmosphere resulting in environment protection in the region and reducing global GHG emissions.
The Project contributed to improve local environment and hygiene by eliminating obnoxious odors and air pollution, thereby improving the living and working conditions for the local communities.
The Project has contributed in reduction of water borne diseases leading to reduced costs due to less expenditure on health.
The Project has improved access to sustainable water supply and sewerage services in Suva urban areas of Fiji.
The Project avoids venting of methane into the atmosphere resulting in environment protection in the region and reducing global GHG emissions
The Project contributed to the country’s sustainable development goals in terms of improving the local environment and hygiene by eliminating obnoxious odors and air pollution, thereby improving the living and working conditions for the local communities
The Project has contributed in reduction of water borne diseases leading to reduced costs due to less expenditure on health
The refurbishment of sewage is a good news for fisher folk and families that forage for their dinners in the waters off Suva. None of their family members has fallen sick from eating seafood
The Project has improved access to sustainable water supply and sewerage services in Suva urban areas of Fiji

18. ADB’s Support for the Project
ADB provided funding for the development of the project through a financing Facility
FCF has purchased approximately 160,000 Post-2012 CERs to be generated from the Project to be delivered between 2013 and 2020
ADB’s Technical Support Facility has provided CDM related technical assistance to the Project including preparation of PDD, facilitating validation, registering with UNFCCC and post-registration monitoring of CDM Project
ADB is providing ongoing capacity development support to manage the CDM project
The Project avoids venting of methane into the atmosphere resulting in environment protection in the region and reducing global GHG emissions
The Project contributed to the country’s sustainable development goals in terms of improving the local environment and hygiene by eliminating obnoxious odors and air pollution, thereby improving the living and working conditions for the local communities
The Project has contributed in reduction of water borne diseases leading to reduced costs due to less expenditure on health
The refurbishment of sewage is a good news for fisher folk and families that forage for their dinners in the waters off Suva. None of their family members has fallen sick from eating seafood
The Project has improved access to sustainable water supply and sewerage services in Suva urban areas of Fiji

19. Results Based Finance – Lessons Learned
GHG emission reduction activities require financial incentivisation
Carbon finance an effective stream to achieve sustainable development
Project developers highly value assurance on the quantum & timing of carbon finance
Carbon finance needs to be complemented with capacity development support
Key to success - strong support of Fund Participants and engagement with project developers

20. Asian Development Bank
Thank you
V.K. Duggal
Senior Climate Change Specialist
Fund Manager - Future Carbon Fund
Sustainable Development and Climate Change Department
Asian Development Bank
Tel (632) 20