FINANCING OPTIONS FOR REGIONAL SUSTAINABLE ENERGY PROJECTS Launch/Planning Meeting REETA Project Georgetown, GUYANA February 10 – 12, 2014 T. Williams-Robertson Head, Renewable Energy/Energy Efficiency Unit Office of Vice-President, Operations February 12, 2014

CDB Purpose

Regional Members Borrowing Member Countries

         Anguilla Antigua and Barbuda Bahamas, The Barbados Belize British Virgin Islands Cayman Islands Dominica Grenada           Guyana Haiti Jamaica Montserrat St. Kitts and Nevis St. Lucia St. Vincent & the Grenadines Suriname Trinidad and Tobago Turks and Caicos Islands

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Other Regional Members

 Colombia  Mexico  Venezuela 5

Non-Regional Members

 Canada  China  Germany  Italy  United Kingdom 6

CDB & Sustainable Development

CDB re-focus on Sustainable Development • Climate Resilience Strategy 2012 • Creation of Environmental Sustainability Unit 2012 • DFID assistance for: • Climate Finance Advisor in VPO’s office Jan 2013 • Adaptation Mainstreaming Consultancies • Further collaboration with 5C’s on Regional Implementation Plan

Climate Resilience Strategy

CDB’s Climate Resilience Strategy facilitates

Collaboration, Mobilisation of concessionary financial resources BMCs transition to a path of sustainable low carbon development • climate resilient investment advancing EE/RE • regional capacity building

Climate Resilience Strategy (2)

Strategy facilitates

• Increase in Competitiveness of private sector Energy efficiency: • reduction in cost of goods/services produced • price advantage

Regional Energy Sector

Regional Energy Sector

• Heavy dependency on fossil fuels • High and volatile fuel oil prices • Relatively tiny contribution of renewables in the energy mix and declining; exception is Barbados in solar water heating sub-sector • Absence of economies of scale • Improving, still insufficient knowledge sharing

CDB Response RE/EE

RE/EE in Sustainable Development • Transitional Renewable Energy & Energy Efficiency Unit established Jan. 2014 in VPO’s office • Development of CDB Energy Policy imminent • On-going support from Special Development Fund and other Funds being discussed.

Target Energy Sector

Target Energy Sector • Increase private sector investment - for expansion in RE, EE – Financial Intermediaries • Quick wins -Energy Efficiency • Harmonised Regulatory Framework • Interconnection Policies grid • economies of scale – • facilitate sale of excess power to • Continuous capacity building

Global Funds

Accessing Climate Finance

SCCF GEF Trust Fund Grants (1991-2012) LDCF AF Pilot Program for Climate Resilience Global

694 national projects USD 2.5 billion 158 Projects USD 504 million 39 Projects USD 135 million 28 Projects USD 184 million Total Pledges USD 1.3 billion

Caribbean

33 Projects USD 23.7 million

(grants)

3 Projects USD 6.4 million

(grants)

1 Projects USD 715,000

(grants)

* + one endorsed concept for Belize ° direct access project in Jamaica 1 Project* ° USD 9.96million

(grants)

Caribbean Program USD 60-75 million (grants) USD 36 million (other concessional resources)

CDB Own Resources to BMCs

• Ordinary Capital Resources; – Country Strategies prepared 3-4 years – Variable Interest Rate, currently 4% • Special development Resources (SDF) – Agreed themes with contributors – Concessionary rate 2.5%

EIB Climate Action Line of Credit

Focus: Increased resilience to Climate Change impacts

EUR 50mn ( approx US $65mn) approved and signed Dec. 2011 TA GRANT EUR 4 mn approved Dec 2013 Interest rate subsidy up to 50% of fixed EIB rate to CDB (up to 3%) Financing up to 75% of total project cost for climate action EE, RE , Transport, Forestry/land-use, low-carbon technologies research, Adaptation

EIB TA Support to CALC

Support CDB to enhance climate action policies/processes Support BMCs potential negative CC impacts Capacity building climat action Preparatory studies eligible CA projects

TA GRANT EUR 4 mn approved Dec 2013 Component to support CDB/EIB liaison/approvals EU1.5mn

Project preparation facility for new projects EU 1.5 mn Upstream pre feasibility/master plans EU 1 mn

EU-Caribbean Investment Facility (CIF)

• CDB eligible to access CIF resources as MDB • CIF Funding available including RE/EE: – 10 th EDF = EU 47 mn – 11 th EDF = EU 140 mn • Participate in Technical Group Financial Institutions Group (FIG)

Role of CTCS

Caribbean Technological Consultancy Services (CTCS) Network

• Energy audits • Capacity building • Bankable proposals • Support for design works • Regional consultation workshops • Proposed Collaboration CDB/German Government/GIZ expert assistance

OECS Sustainable Energy

USD 1.59 mn CDB Grant to OECS Secretariat (Commission):

• (Sub) Regional Energy Efficiency Strategy (REES) and Action Pla Plans Awareness n • National Strategies/Action • Model Legislation on EE – regulations, rules for energy management • Public Education and

OECS SETA Status

(2) USD 1.59 mn CDB Grant to OECS Secretariat (Commission):

• (Sub) Regional Energy Efficiency Strategy (REES) and Action Pla Plans Awareness n • National Strategies/Action • Model Legislation on EE – regulations, rules for energy management • Public Education and

PROPOSED SEEC US$ 10 mn EU CIF/DFID/CDB financed SEEC proposed by IDB for OECS

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CDB Support

Scheme : • Private sector pilot Financial Intermediaries 4* $0.5 mn Lines of Credit • $2 mn of CDB Micro finance Guarantee • CTCS Network SEAP to support RE/EE initiatives

FINANCIAL INTERMEDIARY PILOT

Already started and included in SEEC: • USD 2 million CDB pilot with 4 OECS DFIs = 4*500K • Concessionary SDF resources • CTCS network leading on EAs • Technical capacity-building FIs, Auditors, Contractors, sub-loan clients

SEEC Scope

• Niche for early SEEC focus on: – retrofitting government buildings – MSMEs through FIs – Build Capacity Energy Auditors, FIs – Implementation Recs OECS/SETA Project • GEF resources as counterpart for 3 OECS countries • Include arrangements for other donors to join • CDB-financing for credit risk guarantee for CDB lending through FIs

INITIATIVES

Various Regional Initiatives financed by Donors: – CDB-financed OECS Sustainable Energy Technical Assistance (SETA) Project – CREDP project identification already undertaken, Program extended.

– Sustainable Energy Audit Protocol developed, Energy Audits launched – SLU, DOM through DFIs – 5Cs EE Project – ANU, GRN, SLU, T&T launch Aug 2013 – REETA – SIDS DOCK

This is our Region Let us protect it for our future!

Thank You!

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