El PNUMA y la Promoción de Energías Renovables

1. Programa de las Naciones Unidaspara el Medio Ambiente Programme des Nations Unies pour l’EnvironnementUnited Nations Environment ProgrammePrograma das Naçoes Unidas o Meio Ambiente XXVI Reunión del COFER México DF 16 de Agosto de 2001 El PNUMA y la Promoción de Energías Renovables Dr. Diego Masera Coordinador del Programa de Industria para América Latina y el Caribe Oficina Regional para América Latina y el CaribeRegional Office for Latin America and the Caribbean

2. Estructura de la Presentación • UNEP’s Approach • Investment Advisory Facility (IAF) • Brazil Rural Energy Enterprise Development Initiative (BREED) • Sustainable Energy Advisory Facility (SEAF) • México

3. UNEP’s Approach In the energy sector huge capital investments will be required in the coming decades to offer even modest modern energy services to the worlds’ poor. • UNEP’s energy sector response... places new emphasis on the finance sector, helping it respond to opportunities for financing a cleaner energy future.

4. UNEP Finance Initiatives UNEP targets financial decision makers to help them become more aware of investment opportunities in the sustainable energy sector. • Statement by Banks and Insurers on the Environment and Sustainable Development • ‘Code of conduct’ promoting the integration of environmental considerations into all aspects of operations and services. • UNEP Financial Institutions Initiative • 170 banks • UNEP Insurance Industry Initiative • 85 insurers

5. Barriers to RE finance • higher real and/or perceived risk • absence of sound operational data • limited access to reliable technical information • lack of in-house skills to evaluate/negotiate projects • RE operating modalities may require new financing norms • increased transaction costs with initial investments

6. Example Services Eligible for Support • independent valuations • environmental risk analysis • market sizing for a manufacturing operation • legal reviews • financial risk analysis UNEP RET/EE Investment Advisory Facility (IAF) provides support to financial institutions evaluating investments in specific Renewable Energy Technology /Energy Efficiency projects A Global Environment Facility supported initiative

7. Typical Loan Evaluation Process Bank Pre-feasibility Study Investment Committee Project Appraisal Bank Pre- Screening Feasibility Study Period of IAF Intervention

8. Bank / Financier Investment Description Expertise Provided Inter-American 20MW Small hydro peaking plant in Third party review of engineering Investment Corporation Guatemala. design. Dutch and German Dev. Sustainable forestry plantation adjacent to Evaluation of plantation investment, banks (FMO, DEG) a salt mine in Tanzania. Wood required as part of mine refinancing. for salt drying. RES Ltd. and Petroleum 20MW Wind farm in Jamaica Carbon valuation and sale. Corporation of Jamaica European commercial Biomass coffee waste cogen plant in Project feasibility for carbon bank Costa Rica investment fund development. European commercial District heating cogen plant in Slovak Project feasibility for carbon bank Republic investment fund development. International Finance 5 MW Geothermal power plant in Vanuatu Feasibility study completion + third Corporation and Pacific party review for government Hydro negotiations. International Finance 50MW Merchant power wind farm in Third party review of wind resource Corporation and two Argentina data and wind plant design. commercial investors 5 PhilBIO 3 MW biogas plant in Philippines Carbon valuation and sale. NewEn GmbH and 20 MW Wind farm in Ghana Support for completion of power German Dev. Bank purchase agreement (DEG) Inter-American Latin American energy services fund Market sizing for fund pipeline Development Bank (MIF) (renewable energy and energy efficiency development. and FondElec ESCOs) IAF Projects, Interventions to Date

9. IAF Interventions in ROLAC • Jamaica: 20 MW windfarm • Guatemala: 20MW Small hydro plant • Costa Rica: Biomass coffee waste cogen plant • Argentina: 50 MW windfarm • Latin American energy services fund (Fondelec group).

10. Latin American energy services fund • FondElect with the Multilateral Investment Fund of the Interamerican Development Bank is exploring the feasibility of establishing a fund for RE, micro-generation and EE principally in Mexico and Brazil. • The fund offers investors a vehicle to participate in the RE sector. • The investment focuses on small and medium sized undercapitalized energy service companies.

11. IAF Projects Carbon Investment Fund Client: Europeancommercial banking group Projects: Assisted bank to develop pipeline of investments for proposed carbon fund 1. Costa Rica: coffee processing waste recovery 2. Slovak Republic: Fuel switch - district heating plant Support: i) technology evaluations, ii) economic and social reviews, iii) environmental assessments iv) CDM/JI assessment (UCCEE experts).Outputs: • internal approval secured late 2000 to launch the fund • fund capitalisation underway

12. IAF Projects, Jamaican Windfarm Client: project investors (wind energy financier RES Ltd. and Jamaican Petroleum Corp.) Project: evaluated whether emission reduction credits could make an otherwise stalled 20 MW wind project viable Support: • evaluation of the policy context and quantification of emission reductions • securing and transacting emission reduction credits through ‘early actions’ Output: • negotiated $3.4mn carbon sale with WB Prototype Carbon Fund

13. engages the private sector to provide distributed energy services based on clean and renewable energy technologies • uses an approach that couples enterprise development ‘hand-holding’ with modest amounts of start-up financing Brazil Rural Energy Enterprise Development Initiative(BREED) ‘fostering renewable energy companies that meet the needs of the rural poor’ A UN Foundation supported initiative

14. Brazil Rural Energy Enterprise Development Initiative assisting local entrepreneurs to create sustainable energy service companies A practical approach to promoting energy for sustainable development • improve the provision of clean energy services • while building capacity of the private sector • to develop sustainable projects • which are ready for investment.

15. BREED Concept BREED Support Enterprise Development Services Start-up Financing Govn’t Rural CLIENTS Enterprise Energy Services NGOs / Dev. organisations Financial Institutions - 2nd stage financing BREED Partners

16. POL I CY MAKERS ENTREPRENEURS BREED Deployment Strategy Enterprise Development (E&Co managed) Institutional Support (UNEP/UCCEE managed) Idea Proposal • Policy support for clean energy service delivery Fact-Finding EDS • RE concession program development Feasibility BRE ED P AR T NER S Business Plan • Best practice stakeholder dialogue Business Planning Implementation • Enterprise development Seed $ and 2nd Stage $$ Expansion

17. Example Services Eligible for Support • national and sectoral planning studies • climate change mitigation analysis • technology assessment and selection • renewable energy or energy efficiency project assessment • facilitation of links to funding agencies UNEP Sustainable Energy Advisory Facility (SEAF) provides support to financial institutions evaluating investments in specific RET /EE projects A DANIDA supported initiative

18. En México • Buscar mecanismos innovativos para realizar proyectos de ER. Por ejemplo, utilizar financiamientos de donadores internacionales para canalizar fondos de instituciones financieras.

19. Más Información • www.uneptie.org/energy • Industria@rolac.unep.mx