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Clean Technology Fund Rohit Khanna The World Bank July 2009

Clean Technology Fund Rohit Khanna The World Bank July 2009. Discussion Outline . CTF Objectives Financing Terms Investment Criteria Operations To-Date. Clean Technology Fund Objectives. CTF is a multi-donor trust fund with pledges of US$ 5 billion

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Clean Technology Fund Rohit Khanna The World Bank July 2009

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  1. Clean Technology FundRohit KhannaThe World BankJuly 2009

  2. Discussion Outline • CTF Objectives • Financing Terms • Investment Criteria • Operations To-Date 1

  3. Clean Technology Fund Objectives • CTF is a multi-donor trust fund with pledges of US$ 5 billion • Governed by Trust Fund Committee, with equal representation of donor and eligible recipient countries: (Australia, Brazil, China, Egypt, France, Germany, India, Japan, Mexico, Morocco, South Africa, Spain, Sweden, Turkey, UK and US) • Provides incentives for scaled-up deployment and transfer of low carbon technologies with significant potential for greenhouse gas emissions savings • Offers concessional resources to co-finance MDB loans, utilizing a range of financing, credit enhancement, and risk management tools • More Background  www.worldbank.org/cif. 2

  4. Clean Technology Fund Financing Terms • Financing terms depend on nature of the project • CTF resources can also be deployed as loan guarantees and contingent finance • Strong role for private sector and the emphasis on building domestic investments • Leverage is expected and CTF funding is blended with sponsoring Multilateral Development Bank • Expected leverage ratio: no strict criteria, but at least +5:1 for total investment cost • In Egypt, Mexico & Turkey: CTF is 10-15% of investment 3

  5. Clean Technology Fund Investment Plans • Business Plans of the Multilateral Development Banks to assist countries with CTF co-financing in implementing their national development strategies and plans with low carbon objectives • Investment Plans are agreed between, and owned by, the governments and MDBs • The CTF Trust Fund Committee will review the Investment Plan: endorse the CTF resource envelope and authorize designated MDBs to proceed with project preparation • Subsequently, individual projects prior to appraisal are circulated to the Trust Fund Committee for approval of CTF funding • Further processing of projects follows standard MDB procedures 4

  6. Clean Technology Fund Investment Criteria • Power sector • Modal shifts in transportation • Large-scale adoption of energy efficient technologies in buildings and industry • The CTF uses the following criteria to assess and prioritize proposed programs and projects: • Potential for GHG Emissions Savings • Cost-Effectiveness • Demonstration Potential at Scale • Development Impact • Implementation Potential • Additional Cost and Risk Premium 5

  7. CTF Investment PlansEgypt • Wind • Scale up wind power from 1000 MW to 2500 MW • Supports national goal of 12% of electricity from wind by 2020 (7500 MW) • Urban Transport • 6 Bus Rapid Transit corridors • 5 new Light Rail links • Replacement of old mini-buses with large-capacity, efficient buses • Part of $17 billion Greater Cairo Urban Transport Master Plan

  8. CTF Investment PlansMexico • Urban Transport • 20 Bus Rapid Transit corridors with low carbon bus technologies • Part of national BRT program to achieve ridership share of 30% and reduce transport carbon footprint by 20% by 2030 • Lighting and Appliances Efficiency • Replacement of 1 million mercury vapor lamps with high-pressure sodium vapor lamps in municipal street lighting • Improvements in 6 million lighting devices in commercial and public buildings • Substitution of 72 million incandescent bulbs with flourescent lamps in low income households • Replacement of 1.6 million refrigerators and 250,000 air-conditioners older than 10 years • Lighting and appliances representing 15-30% of Mexican market share.

  9. CTF Investment Plans Turkey • Renewable energy and energy efficiency • Promoting private sector development through credit lines to local development banks • Increasing investor confidence and developing new financing business models • Objective of doubling lending of financial institutions for RE and EE • Smart Grid: Implementing “intelligent” grid management and control systems to support large-scale integration of wind energy resources into the grid as part of government goal of scaling up wind capacity to 20,000 MW by 2020

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