1. 1 Bert van der Plas UNFCCC Preparing technology transfer projects for financing UNFCCC workshop on Technology Needs Assessments Bonn, 1 – 2 June 2011

2. 2 Overview Technology transfer under the UNFCCC Technology Transfer framework Innovative options for financing the development and transfer of technologies Implementing results of TNAs Preparing project proposals for financing Training programme on preparing projects for financing

3. 3 Technology Transfer under the UNFCCC Technology transfer guided by Article 4.5 of the Convention “The developed country Parties … shall take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention…” Milestones –COP 7 Framework for meaningful and effective actions to enhance the implementation of Art. 4.5 of the Convention (“Technology Transfer framework”) adopted Expert Group on Technology Transfer (EGTT) established Provide financial support to technology transfer activities through GEF (climate change focal area and special climate change fund) –COP 13 Mandate EGTT extended Enhanced technology transfer framework adopted Technology one of the building blocks of the Bali Action Plan –COP 14 Poznan Strategic Programme on technology transfer adopted –COP 16 Technology Mechanism established

4. 4 Technology Transfer framework Five key themes and areas of work –Technology needs and needs assessments (TNAs) –Technology Information –Enabling environments –Capacity building –Mechanisms New areas of work –Innovative options for financing the development and transfer of technology –Technologies for adaptation to climate change

5. 5 TNAs | What are main barriers to technology transfer identified by country?

6. 6 Implementing TNAs | What are main opportunities for financing the implementation of TNA findings? PRIVATE SECTOR Domestic private investmentDomestic private investment Foreign Direct InvestmentForeign Direct Investment Private equityPrivate equity Clean tech and carbon fundsClean tech and carbon funds Voluntary carbon marketVoluntary carbon market PhilanthropyPhilanthropy MULTILATERAL World Bank and regional development banksWorld Bank and regional development banks UNEP, UNDP, UNIDOUNEP, UNDP, UNIDO EU COMMISSIONEU COMMISSION BILATERAL ODAODA Export Credit AgenciesExport Credit Agencies CDM/JI FINANCIAL MECHANISM (GEF) Trust FundTrust Fund SCCFSCCF LDCFLDCF Poznan strat. programmePoznan strat. programme Public-private- partnerships Adaptation Fund Convention and KP National sources SubsidiesSubsidies

7. 7 Innovative options for financing the development and transfer of technology Purpose: Improve access to financing for technology transfer projects and programmes both from public and private sources Activities: –Workshops on innovative financing –A ‘disconnect’ exists among development professionals, entrepreneurs who identify projects and those who provide resources (services and funding) –Many ‘fit for purpose’ tools and many general ‘how-to’ instructions but there exists a need for a more complete, accessible, balanced, process oriented and modular guide to preparing and presenting proposals –UNFCCC Guidebook on preparing technology transfer projects for financing (“Practitioners’ guide”) –Hands-on training on preparing project proposals for financing –Private Financing Advisory Network (PFAN)

8. 8 Implementing results of TNAs

9. 9 Typical proposal problems: Incomplete or Imbalanced: “Long” on one kind of information and “short” on other balancing information Misdirected: send to wrong entity Non-responsive: fails to be customized to the party to whom it is sent Terminology gap: hard to understand Preparing project proposals for financing

10. 10 Training programme on preparing projects for financing Mandate – COP 13 requested the secretariat to coordinate the implementation of a regional training programme on project preparation…with the participation of relevant international organizations and initiatives Objectives – Improve access to financing for environmentally sound technology (EST) projects to mitigate and/or adapt to climate change – Support efforts to implement the results of TNAs carried out by developing countries within the UNFCCC process – Strengthen the capacity of project developers in developing countries in preparing project proposals on ESTs that will meet the standards of financial providers – Improve the quality of project proposals from developing countries related to ESTs to mitigate and/or adapt to climate change.

11. 11 Training programme on preparing projects for financing Scope – Target group: project developers in developing countries and relevant stakeholders, including international and national financial providers – Special attention to financial aspects of preparing and presenting projects related to ESTs – Focussed on projects related to ESTs both from public and private sector – Attention was given to the transfer of ESTs to mitigate climate change and to adapt to the impacts of climate change Approach – Collaborate with international organizations and initiatives (GEF, UNEP, UNIDO, UNITAR, CTI) – Build on existing training material (practitioners guide, etc.) – Staged approach: Training of Trainers followed by regional training workshops – Practical and hands-on: use real project proposals as basis for group exercises – Targeted at project developers and financial providers Training activities: Training of trainers workshop followed by three regional workshops for Africa, Latin America and the Caribbean, and Asia and the Pacific in 2009 and 2010

12. 12 What?Where?Who?Why?How? Base Case What If?To Whom? Proposal How? Status, milestones, schedule, costs, revenues, grants, loans, investment  BASE CASE What if? Schedule changes, output and cost variances, key person events To Whom? Grant-makers, Lenders, Investors, Specialized Programs, Others What? Product, service, technology, client Where? Location, market, operating and regulatory conditions Who? Champion, owners, sponsors, team, approval bodies, stakeholders Why? Financial, social, environmental, market, growth Training programme on preparing projects for financing Building blocks

13. 13 Experiences and lessons learned Project preparation –No single formula for preparing successful proposals –Address financial structure at an early stage of project preparation –Project preparation proves to be challenging –Little assistance for ‘upstream’ preparation –Lack of support for project preparation Funding opportunities –Lack of awareness about funding opportunities for technology transfer projects

14. 14 Follow-up SBSTA 33 requested the secretariat: (a) To organize in French and Spanish training workshops on preparing technology transfer projects for financing for non-Annex I Parties, in collaboration with relevant international organizations and initiatives; (b) To coordinate, with the participation of relevant international organizations and initiatives, the implementation of a pilot training course combining online training with face-to-face training on preparing technology transfer projects for financing, building on the experiences and lessons learned from the regional training programme on project preparation. Note: subject to the availability of resources.

15. 15 THANK YOU!