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OECD POLICY WORK ON GREEN INVESTMENTS Nelly Petkova OECD, Environment Directorate Second international forum for sustainable business development 17 October 2013, Kiev, Ukraine
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2 Closing the investment gap to 2030 Source: Compilation based on OECD, IEA, ITF, Mc Kinsey, WEF, Kennedy,C.,Corfee-Morlot,J.Energy Policy(2013) Note: Infrastructure sectors including roads, rail, ports, airports, power, water and telecoms 1: Annual average based on global investments over the period 1996-2012 2. Annual average needs for the period 2012-2030 USD tn/ year +60% 1 2 ? +10% to -16% ?
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Investment financing sources for green infrastructure in OECD countries (illustrative example, varies by country) Source: OECD Analysis based on OECD (2012) The Role of Institutional Investors in Financing Clean Energy; G20/WB/FSB/OECD (2012) European Bank Deleveraging and Global Credit Conditions; G20/OECD (2012) The Role of Banks, Equity Markets and Institutional Investors in Long-Term Financing for Growth and Development Infrastructure Financing Sources Private Sector Sources Corporate Sources (balance sheet) Financial Sector Bank asset financing Other non- bank sources including institutional investors Public Sector Sources Financing Sources Private Sector Financial Sector
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Average annual ODA to climate- relevant sectors 2010-2011: USD 54 billion Average annual total ODA 2010-2011: USD 129.3 billion ODA to climate-relevant sectors (eg emitting ones) comprises 42% of total ODA from DAC donors in 2010-11. Of the total ODA to climate-relevant sectors, 16% of this is to support climate action (i.e. mitigation and/or adaptation is a principal or significant objective). ODA to climate action, annual average 2010-2011: USD 21 billion Green vs. brown: Climate-focused ODA as a proportion of total ODA to climate-relevant sectors * Illustrative chart : represents sectors considered most mitigation and/or adaptation relevant.
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New investment in clean energy, 2004 - 2012 Source: Bloomberg New Energy Finance. Note: Total values include estimates for undisclosed deals. Includes corporate and government R&D. Includes digital energy & energy storage asset investment.
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Top 10 countries in clean investments, billion USD Source: Bloomberg New Energy Finance.
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Scale of energy subsidies Estimated energy subsidies, 2010, USD billion (fossil fuels - USD 409 billion; renewables - USD 66 billion), non-OECD countries Source: IEA, World Energy Outlook 2011. Subsidies to fossil fuelsSubsidies to renewables
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Carbon intensity measured in kilogrammes of CO 2 per 2005 USD of GDP EECCA countries – among the most carbon intensive economies in the world Source: IEA..
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Access to private finance for green investments in EECCA – Objectives of the project Support the implementation of measures enabling domestic lending to green, climate- friendly investments Medium-term perspective Help understand the conditions that are needed to transform green lending into a viable business model for local banks, including internal (e.g. capacity for risk analysis) and external (e.g. policy frameworks) conditions Short-term perspective Pool together information from different IFIs and local banks and facilitate discussions about lessons leaned as part of the implementation of existing credit lines
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Phase 3: Development of recommendations and policy dialogue Consolidation of case studies Summarising key lessons learned from the implementation of IFI credit lines Identification of conditions for raising effectiveness of credit lines Identification of conditions for making green credits a viable local business model Organisation of an international conference Phase 2: In-depth country-level analysis of specific credit lines relevant for green growth Selection of countries and credit lines for analysis Data gathering Interviews with local stakeholders Drafting case studies Discussing results of analysis with stakeholders Phase 1: Scoping: inventory of credit lines, data and development of methodology Inventory of existing credit lines Checking availability of information and other conditions for the in-depth analysis Development of the methodology for in-depth analysis Dialogue with IFIs and local banks, including an expert meeting Access to private finance for green investments in EECCA
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OECD-Ukraine Co-ordination Council Agribusiness: Access to Finance Machinery/Aircraft Manufacturing Working Group 1 Working Group 3 Civil society and private sector representatives Relevant ministries and government agencies Chaired by First Deputy Prime Minister of Ukraine OECD + donors (including relevant WG members) The project Sector Competitiveness Strategy for Ukraine was launched in 2009 The OECD Eurasia Competitiveness Programme Energy-efficiency/ Renewable Energy Working Group 4 Agribusiness: Human Capital Working Group 2 Facilitate access to finance for SMEs Improve investment policy and promotion Strengthen the industry cluster Ensure appropriate skills provision to the industry Public-Private dialogue through Working Groups Policy areas Sectors
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