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Vicepresidencia de Desarrollo Social y Ambiental Performance Based Climate Finance Facility (PBC) Alejandro Miranda Velazquez Latin American and Caribbean.

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Presentation on theme: "Vicepresidencia de Desarrollo Social y Ambiental Performance Based Climate Finance Facility (PBC) Alejandro Miranda Velazquez Latin American and Caribbean."— Presentation transcript:

1 Vicepresidencia de Desarrollo Social y Ambiental Performance Based Climate Finance Facility (PBC) Alejandro Miranda Velazquez Latin American and Caribbean Forum Carbon (LACCF) 2014 Bogotá, September 4, 2014

2 Vicepresidencia de Desarrollo Social y Ambiental  CAF, in cooperation with KfW, develops and implements the Initiative. Background: Performance Based Climate Finance Facility (PBC)  The development aid funds come from the Latin America Investment Facility (LAIF) of the European Union.

3 Vicepresidencia de Desarrollo Social y Ambiental  Promote sustainable, low carbon development in the region, through the design and implementation of 2 sector mitigation schemes -The facility has 10 million Euros for the design and implementation of the initiative, 5 million for each initiative -The sectors of interest are: Renewable Power Generation - RE, Energy Efficiency, Municipal Solid Waste Management and Transportation Objective: Performance Based Climate Finance Facility (PBC) Prevent the emission of 1,000,000 tCO 2 e by December 31st, 2021 Goal:

4 Vicepresidencia de Desarrollo Social y Ambiental  The Program will award financial incentives (subsidies) for the implementation of pilot projects that can serve as an example to the entire sector  The incentive will be delivered on an ex-post basis, based on the amount of carbon dioxide the project prevents (e.g. $/tCO 2 e)  The amount of the incentive depends on the type of technology implemented  The number of projects that receive financial incentives will depend upon their mitigation potential Description: Performance Based Climate Finance Facility (PBC)

5 Vicepresidencia de Desarrollo Social y Ambiental SECTOR MITIGATION MECHANISM Promotes sustainable and low carbon development in the region 1.Design of sector schemes and capacity building for implementation (Technical Assistance € 2 MM) 2.Economic incentives for the implementation of pilot projects (€ 8 MM ) 3.Lines of financing or refinancing granted by CAF and / or KfW  Design of Implementation Concept  Elaboration of additional studies  Design of MRV Mechanism  Emissions Monitoring and Verification (5 years) Components:  Grant for X number of projects until the emissions reductions goal is achieved (1 MtCO2e) Performance Based Climate Finance Facility (PBC)

6 Vicepresidencia de Desarrollo Social y Ambiental European Union (LAIF) In the future: NAMA Facility Green Climate Fund Bilateral Agreements Other Projects: 1.Technical closure of dumps 2.Landfill construction 3.Others 1.Capture and incineration of methane in the Dumps / Landfills 2.Mechanical / Biological treatment: Composting and Anaerobic Digestion. 3.Capture of methane for electricity generation Loan MRV + State Bank (Prosaneamiento) Incentive $/tCO2e (Ex-post) 4 Million EUR Grant Performance Based Climate Finance Facility (PBC) Municipal Solid Waste Sector in Ecuador Financial Mechanism : Technical requirements for measuring tCO2e Grants/ Subsidized Loans

7 Vicepresidencia de Desarrollo Social y Ambiental  Pre-feasibility study of the mechanism (Project Idea Note, late 2012)  Signing of the Memorandum of Understanding with the Ministry of Environment of Ecuador (MAE), January 2014  Awarding of the Implementation Concept (August 2014)  Design of the Sector Mitigation Scheme  Identification of the type of activities / technologies eligible to receive the subsidy  Defining the amount of subsidy to deliver according to the type of project  Identification and analysis of the pilot projects  Design of the Measurement, Reporting and Verification (MRV) methods (simpler than for CDM projects) Current Status / Progress: Performance Based Climate Finance Facility (PBC) Municipal Solid Waste Sector in Ecuador

8 Vicepresidencia de Desarrollo Social y Ambiental Many thanks for your attention! Alejandro Miranda Executive, Climate Change Unit


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