Project financing Dr Silvia Emili Consultant Based on our 14 th GCF - PowerPoint PPT Presentation

GCF insight #14 Project financing Dr Silvia Emili Consultant Based on our 14 th GCF insight. The study was conducted solely by E Co. and is independent of the GCF.

Spotlight on climate project financing P2 ▪ GCF insight #13 revealed top knowledge gap as - the lack of knowledge surrounding project financing and financial instruments, and only a limited awareness of financial systems Why is project financing such a challenge? ▪ Climate projects must address barriers, catalyse investments and demonstrate long-term viability ▪ Project developers need a sophisticated financial literacy, understanding of climate project financing and knowledge of GCF mechanisms

Methodology P3 ▪ The report is based on a mix of primary data collection and literature review: Higher quality image here Primary data sources: ▪ ‘Test your knowledge’ quiz (online & in in-person training) ▪ Stakeholder interviews Total respondents: 157

Familiarity with types of instruments P4 Based on the quiz results: ▪ Respondents are generally familiar with banking and finance language ▪ Most of them have experience with grant financing ▪ Other financial instruments have been less used Most challenging questions were about financial terminology

Lack of understanding of key notions P5 There is a distinct lack of understanding of key notions, such as: ▪ Incrementality ▪ Concessionality Stakeholders also lack a full understanding of how to incorporate these concepts into project proposals Low awareness of GCF requirements leads to further difficulties From the GCF concept note writing workshop we held in Jakarta, Indonesia, January 2020

Challenges in co-financing and matching project proposals P6 ▪ Determination of co-financing ▪ Matching available finance with project proposals Project proponents struggle to match government priorities with potential bankable projects More key barriers highlighted by interviewees: ▪ Lack of cooperation - focal points & institutions ▪ Lengthy process for GCF disbursement ▪ Risks in changing commitments between formulation & implementation

Looking ahead – what we need P7 ▪ Ad-hoc capacity building ▪ Readiness funding to increase country capacity ▪ Accreditation requirements for financial institutions ▪ Continuous dialogue among different stakeholders Download GCF insight #14 at https://www.ecoltdgroup.com/gcf- insight-14/