Manila, Philippines 13 March 2012

CLEAN ENERGY FINANCING PARTNERSHIP FACILITY

Accelerating Sustainable Energy Development For All
Aiming Zhou Energy Specialist Regional and Sustainable Infrastructure Division

Presentation Outline

o o o

Global Outlook and Regional perspective ADB and Clean Energy Clean Energy Program

Global Outlook

Source: The global energy outlook: what role for renewable? Presentation at Lisbon , February 2009 by Nobuo Tanaka, Executive Director, International Energy Agency.

Regional Perspective

Energy Developing Asia s share in global energy-related CO2 to reach 46% in 2030 from 35% in 2009, 17% in 1990

China and India will account for 45% of the increase in global primary energy demand by 2030, with both countries more than doubling their energy use over that period, according to the (IEA World Energy Outlook, 2007) To achieve a 50% reduction of CO2 emissions by 2050 will require investment of USD 316 trillion, 17% more than business as usual.
(IEA, BLUE Map Scenario of Energy Technology Perspective, 2010)

ADB Climate Change Strategic Priorities

Modalities
Finance Knowledge Scaling-up Clean Energy Encouraging Sustainable Transport and Urban Development Partnerships

Priorities

Managing Land Use and Forests for Carbon Sequestration Promoting Climate-resilient Development Strengthening Policies, Governance and Capacity

Progress Toward ADB s $2 Billion Clean Energy Target

Targets vs. Clean Enegy Investments, 2003-2013
2,500.00

Clean Energy Policy Scaled-up Target $2 billion/year

2,000.00

Investments (in million US$)

1,500.00

Private

1,000.00

500.00

Public

2003 2004 2005 2006 2007 2008 Public Private 2009 2010 2011 2012 2013

ADB Clean Energy Investment Indicators 2011

Input Outputs Outcomes
91,799 TJ/year fuel savings

ADB Clean Energy Program

$2.1billion clean energy investments

3 TWh/year electricity savings 3.3 TWh/year RE electricity generation 13.7 million tons CO2/year abated 875 MW installed RE generating capacity

Clean Energy Program

1. Market aggregation for economies of scale 2. Low carbon technology transfer and deployment 3. New market-based instruments

Catalyzing Rapid Clean Energy Technology Diffusion: Aggregating Clean Energy Markets
o Asia Solar Energy Initiative (ASEI) o Quantum Leap in Wind (QLW) o Carbon Capture and Storage (CCS) o Small Wind Initiative

Supporting growth through clean and environmentally sustainable energy

o Energy for All o Sustainable Transport Initiative

Facilitating Clean Energy Technology Development and Diffusion

Pilot Asia-Pacific Climate Technology Network and Finance Center Asia-

Technology Network (UNEP)

Technology Finance Center (ADB)

2
Technology Centers

3
Enabling Policies

4
Technology Mainstreaming

5
Catalyzing Project & Venture Capital Investments

6
Pilot Marketplace for LowCarbon Technologies

Networks

Network Facilitation and Development

Enhancing Enabling Environment Capacity Building

Investment Facilitation

Funds to Leverage Clean Energy Investments

o Climate Public Private Partnership Fund (CP3)
ADB is working with DfID to establish this investment vehicle in order for institutional private equity funds to be mobilized towards investments in resource efficient and low carbon infrastructure assets and services in Asia.

Supporting growth through clean and environmentally sustainable energy

o Cities Development Initiative for Asia


This program aims to contribute to the promotion of sustainable and equitable urban development, leading to improved environmental and living conditions for all in Asian cities by focusing on developing investments in urban infrastructure and services -- bridging the gap between city level urban strategies and implementation of specific infrastructure projects with domestic, international, public and/or private financing.

Other New Program

o Renewable Energy Certificate (REC) This market-based instrument will be used to incentivize clean energy technology by providing a production subsidy to electricity generated from renewable sources, thereby also promoting renewable energy development.

CEFPF 2011 ANNUAL REPORT

CLEAN ENERGY FUNDS RESULTS CHAIN

Impact
Access to clean energy in DMCs improved* Access to and supply/delivery of energy services in DMCs improved Energy security in DMCs improved Upward pressure on energy prices in DMCs eased Growth in fossil fuel demand in DMCs eased Rate of climate change decreased Global emissions of carbon/GHG reduced Carbon intensity in DMCs lowered

Outcome

Use of clean energy increased

Outputs
CE investments in DMCs increased

Deployment of new technologies with strong demonstration effect facilitated

New approaches/ methodologies to promote CE/CCS introduced*

Benefits from access to energy delivered*

Health, environment and productivity benefits provided*

Barriers to CE/CCS investments lowered

Activities

Grants from multilateral and bilateral sources pooled

Investments in smaller energy efficiency projects financed

Investments increasing the percentage of people with access to CE in rural and urban areas financed Funds under CEF, ACEF, CCSF and CCFCE replenished

Innovative investment programs and financing mechanisms explored and developed

Pre-commercial CE technology transfer costs catalyzing mainstream adoption financed

Institutional and technical capacity building for CE in DMCs financed

CE knowledge provision and exchange coordinated

New multi-donor/singledonor CE trust funds for specific technologies, geographic areas, etc. established

Framework agreements established

Pro-poor project design & innovative financing for CE supported

Enabling CE policies and legislation established

Knowledge, experience and skill on CE transferred

Awareness of CE and related technologies increased

* New indicators added in the updated Design and Monitoring Framework. Monitoring and reporting on these indicators cover project beginning 2011

PROGRESS TOWARDS OUTPUTS, OUTCOMES & IMPACTS (1)

PROGRESS TOWARDS OUTPUTS (2)

Output 1: CE investments in DMCs increased


Target indicator: Amount of CE component in ADB investments increased to at least $2 billion by 2013 ADB in 2011: CE Investments leveraged by CEFPF amount to $1.8 billion contributing to ADB s overall CE Investments 2011 CEFPF:
(in millions) $835.1 mn CE Investments

Cumulative CEFPF:
(in millions) $1.8 billion CE investments

Leverage ratio 1:78

$10.7mn CEFPF

Leverage ratio 1:27

$66.7 mn CEFPF

PROGRESS TOWARDS OUTPUTS (3)



Output 2: Deployment of New Technologies with Strong Demonstration Effects Facilitated Output 3: New Approaches Methodologies to Promote CE/CCS Introduced Output 4: Access to Energy Benefits Delivered Output 5: Providing Health, Environment and Productivity Benefits Delivered Output 6: Barriers to New Technologies Lowered

2011 65% ; cumulative 73% 2011 18%

All Access to Energy projects supported have gender benefits Target 50% 2011 18%

2011 100% Cumulative 100%

FINANCIAL STATUS (1)

Item CEF Australia Norway Spain Sweden Interest/ Investment ACEF Japan Investment Interest/ Income CCSF Global CCS Institute Interest/ Investment Income TOTAL Project Contributions Allocations 32.9 10.7 8.1 9.5 4.4 0.3 57.9 57.1 0.8 17.4 17.3 0.1 108.2 (26.3) Project Fees (0.9)
Audit Fees/ Bank Charges/ Project Savings

Balances

0.4

6.0

(35.8)

(1.6)

(0.1)

20.4

(4.5)

(0.2)

(0.1)

12.6

(66.7)

(2.7)

0.2

39.0

Note: Amounts for interest/investment income and audit fees/bank charges/project savings are as of the 31 Dec 2011 Status of Grant.

FINANCIAL STATUS (2)

Distribution of Allocation by Modality
2011 Distribution of Allocation by Modality
DC $0.7 6%

Cumulative Distribution of Allocation by Modality

$37.1 (53.5%) 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 GCI $19.2 (27.7%) $4.1 $2.1 $8.4 $4.6 $19.0 $10.7 (15.4%) $0.2 $8.2 $0.7 $1.7 TALL $4.6 $7.4 TA DC $2.4 (3.4%) $0.7 $0.6 $0.6 $0.5 $6.2 2011 2010 2009 2008

TA $6.2 55%

GCI $4.1 37%

TALL $0.2 2%

FINANCIAL STATUS (3)

By Region and Sector
2011 Distribution of Allocation by Region
CW $2.1 19% EA $1.9 17%

Cumulative Distribution of Allocation by Region

20.0 15.0 10.0 5.0 0.0 CW EA PA
$16.2 (23.3%) $18.2 (26.3%) $13.5 (19.5%)

$2.2
$11.8 (17.0%)

SE $4.8 42%

$0.2 $4.3

$4.8

2011 2010

$1.9
$7.6 (10.9%)

REG $2.2 20% SA $0.2 2%

$3.2
$2.1 (3.0%) $4.8

$1.6 $1.6 $4.4

$11.2 $4.4 $2.5 $0.3 REG SA

$9.6 $1.0 $4.6 $2.9 SE

2009 2008

$2.1

$1.9

2011 Distribution of Allocation by Sector

50.0 MULTI $3.7 33% WATER $2.0 18% 40.0 ENERGY $5.5 49% 30.0 20.0 10.0 0.0

Cumulative Distribution of Allocation by Sector

$49.1 (70.8%) $5.5 $20.6 2011 $18.1(26.1%) 2010 2009 2008

$3.7 $11.1 $2.0 (2.9%) $0.1 (0.1%) $0.1(0.1%) $9.3 $2.0 $12.0 $0.1 $0.1 $3.1 $2.0

FINANCIAL STATUS (4)

Distribution of Allocation by Project Type and Access to Energy Components
Distribution of Allocation by Clean Energy Project Type Clean Energy Projects with Access to Energy Components
Cleaner Fuel $0.1 (1 project) 0% Multiscope $19.2 (28 projects) 27% CEFPF $69.4
79 projects

Cleaner Fuel $0.1 (1 project) 0%

Renewable energy $29.7 (30 projects) 43%

CCS $4.8 (6 projects) 7% Energy efficiency $15.2 (13 projects) 22%

Without access to energy $39.2 (59 projects) 56%

With access to energy $30.3 (20 projects) 44%

Energy efficiency $5.4 (4 projects) 8% Renewable energy $16.2 (9 projects) 23%

Multiscope $8.7 (6 projects) 13%

Carbon Market Development $0.5 (1 project) 1%

Key Milestones Surpassed



In 2011, targets and activities accomplished included: Reached $835 million additional CE investments leveraged by CEFPF contributing to the attainment of $2 billion ADB target Received $107.1 million actual remittances Prepared together with OCO Board Paper for Expanded Scope and Use of CEFPF resources

MANAGEMENT OF THE FACILITY

Proceed with normal operations on allocation and fund use CEFPF disbursement review Drafting of Board Paper for CEFPF expanded scope for innovative financing mechanisms Continued Facility-level results reporting FacilityDissemination activities
o Ad-hoc responses to on-demand requests for information Adono Presentation on various occasions (i.e. Workshops/conferences) by management and staff on CEFPF performance/achievements

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LESSONS LEARNED, EXPERIENCES GAINED & KEY CONSTRAINTS

o

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Completed Design and monitoring framework update Streamlined CEFPF Manual and Guidelines on Monitoring and Reporting Results Expanded Scope and Use of CEFPF Resources Prioritization of GCI/TALL Fund Raising Management Response to IED SES evaluation

THANK YOU

azhou@adb.org

CONTEXT OF ADB s STRATEGIES AND POLICIES



Strategy 2020: Meet growing demand for energy - expand supply of energy - promote energy efficiency supply side & demand side measures - support clean energy - facilitate removal of policy, institutional, regulatory, technological, and legal constraints on promoting efficient energy use - scaled up private sector development Energy Policy: Three Pillars - Promoting energy efficiency and renewable energy - Maximizing access to energy for all - Promoting energy sector reforms, capacity building, and governance (including private sector participation) Target Clean Energy Investments: - $2 billion CE investments by 2013