1. Carbon Finance Meeting Washington DC., Nov 15, 2010

2. The GEF can play a useful and growing role in emerging and developing carbon markets GEF’s engagement with carbon finance has been sporadic. New options will be explored under GEF-5 given Council guidance approval of Programming Document. Context of the Meeting

3. Meeting Goal To exchange information and develop a common understanding of GEF’s role in the carbon markets Objectives To take stock of the GEF’s engagement in carbon finance To explore options under GEF-5 to expand the work with carbon finance To develop a common understanding between GEF Secretariat, Agencies, Council and other key stakeholders on the options available under GEF-5.

4. Prior Experience GEF has engaged in projects with carbon finance components, for example:  India / Philippines / Indonesia Chiller Energy Efficiency Project – WB  Indonesia Geothermal Power Generation Development Program - WB  Kyrgyzstan Small Hydro Power (SHP) Development – UNDP  Colombia Mechanism for voluntary mitigation of greenhouse gas emissions - IDB

5. In the Future How to develop GEF’s engagement in the carbon markets ? What are GEF’s added-value and comparative advantage in the context of carbon finance ? What should be the boundaries to GEF’s intervention in this area ?

6. GEF’s added value in carbon finance could :  Mitigate perceived risks to realize untapped opportunities  Promote innovative technologies and business models  Nurture new markets

7. GEF’s added value in carbon finance will not :  Take all the risks resulting from uncertainty of transactions, markets, and climate negotiations  Cover all transactions costs, including project documentation and development of methodology

8. Meeting Deliverables Brainstorm new ideas and develop a common understanding on GEF’s involvement in carbon finance under GEF-5 Identify potential GEF carbon finance projects - Using STAR funding or potentially Focal Area Set- Aside funding Identify challenges and opportunities

9. Thank You! Dr. Robert Dixon Leader, Climate and Chemicals Team Email: rdixon1@thegef.orgrdixon1@thegef.org Tel:1-202-473-2340 Website: www.TheGEF.orgwww.TheGEF.org