ITU/WMO/UNESCO-IOC Joint Task Force on Green Cables Funding Study October 2014 Prepared by: OCI Group, Inc. 9 Whippany Road Whippany, NJ 07980 Study Requirements* - Introduction • The availability of funding for such a wide-ranging objective is difficult to navigate without some form of guidance and charting of the sources, parties and processes. • The JTF contracted a study to understand the sources of funding and the routes to such funding for the development and deployment of an initial ‘green cable’ system. • Discussions at the Madrid Workshop it suggested that between $1M & $6M will be required to develop the sensors themselves and for the relevant system vendors to tailor their solutions to incorporate the sensors and desired data transmission methodologies. • Further, an additional fund of between $10M and $20M would be expected to be required to include such sensors on a commercially viable cable as an initial project. *Tasking: Geneva, 31 March 2014 - Development of a Business Model Study for the ITU/WMO/UNESCO IOC Joint Task Force on Green Cables Systems (JTF) Potential Sources of Funding • The OCI Group effort structured its investigation into potential sources of funding in the following four distinct groups: • International Development Agencies e.g. World Bank Group, Asian Development Bank • Foundations e.g. Gates Foundation, Schmidt Ocean Institute • Government Agencies e.g. US-Dept. of Commerce EDA , Japan Agency for Marine Earth Science and Technology • Private Companies e.g. those that might benefit from the data or participate in the deployment (e.g. Google, NSW) International Development Agencies • All the major international development agencies were researched for this study • Most of these agencies focus on their specific geographic region with the aim of reducing poverty, and For example, from the InterAmerican Development Bank website We support efforts by Latin America and the Caribbean countries to reduce poverty and inequality. We aim to bring about development in a sustainable, climate-friendly way. • Typically provide financing to their member countries International Development Agencies • The most promising of these organizations is the World Bank, which is also a specialized agency of the UN (as are ITU, WMO and UNESCO). • Charter is broader than regional agencies, have funded telecom projects • Repeated attempts to reach key individuals within the World Bank were unsuccessful, but recommend continued efforts since most promising (grants possible). • Similar to World Bank, European Investment Bank is also a possible funding organization having a broader charter • Specific contacts for follow-up in both agencies have been provided in the report. Foundations • All of the world’s largest foundations and special cases were researched as part of this effort. The magnitude of the funding required would: only be possible from very large foundations, Will probably require support from several foundations since grant amounts per grant, and grants in excess of $10M occur infrequently (only 16 since 2007 related to climate change and several of these went to ClimateWorks Foundation – who in turn tend to give out even smaller grants) • Green Cable Initiative must align with each foundations funding priorities, Nearly all foundations who fund climate change focus on policy advocacy Need to target foundations interested in technology development and infrastructure implementation Foundations (cont’d) • Six major foundations were contacted, two respondents indicated effort not consistent with their priorities. • A list of the most promising foundations was developed for followup contact. • UN Foundation should be engaged to assist with funding efforts for UN Foundation Mission as stated: …links the UN’s work with others around the world, mobilizing the energy and expertise of business and non-governmental organizations to help the UN tackle issues including climate change, children’s health, peace and security, and poverty eradication. Government Agencies • The study identified 160 relevant government agencies in coastal countries, and focused on those with substantial funding potential • Examples: – Department of the Environment/ Environmental Protection Agencies – Research Institutes (Ocean Science, Tsunami, Seismology) – Department of Science and Technology – Department for Economic Development – Regional Organizations Private Companies • The Study considered funding from private companies. • OCI identified companies of potential interest by reviewing companies in attendance at OCEANS 2013 and OCEANOLOGY 2014 and other sources Out of approximately 300 companies, 29 were targeted for follow-up (sensor developers, Google, AUV manufacture, etc.) Letters soliciting interest in the Green Cables Initiative were sent, but • Based on this response, it is unlikely that direct funding will become available from private companies • It is anticipated however that other forms of support would be possible from the private entities such as: Review of standards Engineering support Use of equipment Summary • The most likely candidates for funding are focused Development Agencies, Foundations with environmental and science interests, and Government Agencies addressing climate change and disaster mitigation • The most promising funders in each category have been identified • Initiated contacts (direct calls and email) with agencies and companies has lead to understanding of next steps on how to follow up Recommendations • Successful solicitation will require contacting key decisionmakers/influencers. Collateral marketing materials are needed to provide Detailed proposal with cost and benefit analysis Clear understanding as to recipient organization, structure and governance • The funding effort will require a concerted effort over a sustained period of time • Clear focus on most likely sources and utilizing contacts Provocative Notion • Today’s technology in subsea systems and offshore environmental sensor system projects is quite matured • What if: • There was a project to be funded by World Bank or Asian Development Bank • Such a project might easily be an inter-island project, South East Asia • What if, as part of the RFP, an option was introduced to include temperature or tsunami sensor? • While this does not establish “standards” for interfacing it would provide proof of concept