The TA will support the convening of 2 to 3 workshops to facilitate dialogue among stakeholders in Asian and Pacific countries regarding design of the Green Climate Fund (GCF) and other climate change financing issues. Topics to be discussed in these workshops will include governance systems for climate finance, the efficiency and effectiveness of climate finance, public and private financing, access and "country ownership", balancing adaptation and mitigation financing, and financing modalities/instruments. The gatherings may also be used to share experience on best practices in the region for utilizing climate mitigation and adaptation technologies to facilitate understanding on the feasibility of and financing needed to achieve low-carbon and climate-resilient societies.
ADB will co-facilitate the seminars with other resource organizations and partners. The first workshop will be organized at the latter part of 2011 to allow for consultations among interested stakeholders on climate change financing in general and Green Climate Fund in particular as input to the GCF design process and COP-17 in Durban in December 2011. The second workshop can be convened in early 2012 to share the outcomes of the Durban conference to a wider group and get feedback and inputs for the next steps towards operationalizing the GCF. The third meeting may be convened around the end of 2012 as a final TA activity.
The TA will support development of knowledge products related to the financial and technology mechanisms of the UNFCCC and their linkages - both as inputs to the regional workshops and for wider application. To prepare these knowledge products, a review of existing research, analytical work, and studies on the economics of climate change, clean energy, climate financing, and other related topics will be undertaken by ADB and others, with results incorporated into the analysis. Some of the anticipated knowledge products include:
(i) Background on Climate Financing. A general review of climate change financing mechanisms that have been applied by developing countries both within the region and worldwide. This would include but not be limited to the Clean Development Mechanism, Global Environment Facility, Climate Investment Funds, etc. This will also include review of factors or barriers for why certain countries/regions are behind others in benefiting from these sources of financing and quick assessment of the situation in all ADB's regions will be carried out. Similarly, a review of how the private sector can participate and the barriers if any will also be undertaken. Several other short papers will be prepared covering governance systems for climate finance, financing modalities, access and country ownership issues, etc. These knowledge products will provide direct inputs to the workshops.
(ii) Access to Finance for Climate Technologies. This study will undertake an assessment of current access to financing in Asia for climate technologies as well as climate financing needs of developing countries in the region, taking into account currently available technologies. This will also analyze the barriers faced by companies to access financing within and outside the country. A few selected countries will be examined more thoroughly regarding their access to finance, demand and ways to mobilize innovative financing for climate technologies. This may include public and private project finance, private capital, pension funds, etc. within the country/region as well as global climate funds. The study will also propose adjustments to current financing instruments, such as the use of partial credit guarantees, that may help to more effectively deploy climate technologies.
(iii) Climate Technologies Information and Market Analysis. The report will provide a synopsis of the state of various technologies for climate change mitigation (on the supply as well as demand sides) and adaptation, including technological developments, experiences, costs, and greenhouse gas (GHG) emissions reduction potential in participating DMCs. An understanding of markets for climate technologies, especially where there is no expressed consumer demand, will be crucial in designing new interventions to support climate technologies deployment.
(iv) Policies to Promote the Spread of Climate Technologies. Given the vital role that governments play in promoting the use of climate-friendly technologies, another paper will look at current policy frameworks across the region, government plans and commitments for promoting climate-friendly technologies in their development context as well as standards and regulations for the transfer and deployment of new climate technologies. The paper will also look at institutional capacity among DMCs in promoting the use of climate friendly technologies and potential cooperation among these countries in promoting climate friendly technologies that will facilitate technology roadmap at regional level, and identify policy-related barriers in doing so. The report will also propose appropriate policy and regulatory frameworks necessary to promote the use of climate-friendly technologies, using selected country examples. Successful models can be shared with other countries.
(v) Right Climate Technologies and the Poor. This study will assess growing energy demand among the poor of rural and urban areas in Asia and the Pacific and look at energy supply options that are both cost-effective and low-carbon. The paper will also assess the factors that limit the capacity to access and ability to adopt climate technologies among the poor in addition to assessing their energy demand. The study will also look at the financial and economic returns of these technologies. The main output of this study will be an energy curve to help national/local authorities choose the optimal sequencing of energy supply options for the poor in given circumstances and to determine climate financing needs.