CLIMATE AND CLEAN AIR COALITION TO REDUCE SHORT-LIVED CLIMATE POLLUTANTS
CCAC Initiative and Component Process: development, review, approval, funding,
implementation and monitoring/evaluation
CCAC INITIATIVE-COMPONENT
PROGRAMME OF WORK TEMPLATE
This template should be used to submit initiative and component proposals for consideration by the
CCAC in accordance with the CCAC initiative and component process document. A separate template
should be completed for each proposal for initiative or components. Once completed, this template should
be submitted by relevant Lead Partners to the CCAC Secretariat at the following address:
ccac_secretariat@unep.org
The review process extend over a maximum period 35 days, including: 2-3 days for the Secretariat to
review comprehensiveness of the proposal template; a minimum of 14 days for Partners and Steering
Committee to provide comments; a maximum of 5 days for the Secretariat to compile received comments
and send it to the Partners; and a maximum 14 days for the Steering Committee to provide a
recommendation on the proposal after reception of the compilation of comments. The Working Group
and High Level Assembly are responsible for approving proposals for initiatives and its related
components. The Partners must be informed thirty days before a meeting takes place. The Steering
Committee has the authority to approve components under an existing initiative unless there is a meeting
of the Working Group or High Level Assembly within thirty days or the component changes the scope of
the initiative. All State Partners are given a fourteen day notice to objectto the approval of a component
by the Steering Committee.
Note to applicant: The initiative and its related components must be consistent with UN regulations, rules and
procedures applicable to UNEP, any other rules and regulations established by the decision of the Coalition that
are not inconsistent with such regulations, rules and procedures and the terms of any relevant donor agreement and
in consultation with Lead Partners of initiatives.
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PART I: SUMMARY (Maximum 2 pages)
DATE: October 5, 2012
TITLE OF INITIATIVE: Scaling-up Financing for SLCP Mitigation through Knowledge, Innovation
and Strategic Partnerships
APPLICANT NAME:
APPLICANT CONTACT INFORMATION:
LIST OF LEAD PARTNER(S): UNEP Finance Initiative and the World Bank
LEAD PARTNER(S) CONTACT INFORMATION:
Mr. Remco Fischer
Tel: +41 229178685
Email: remco.fischer@unep.org
Mr. Philippe Ambrosi
Tel: +1 (202) 473-1231
Email: pambrosi@worldbank.org
LIST OF IMPLEMENTERS:
TARGETED COUNTRIES/REGIONS: Global (World)
START DATE: November 2012
END DATE: November 2014
PRIMARY OBJECTIVES:
The primary objective of this Initiative is to centralize and share the knowledge, build the understanding,
structure the agenda, involve the key stakeholders, and forge the strategic partnerships needed, to pave the
way for implementation of a larger scale, longer-term, action-based, public-private, and global effort to
up-scale private and public financing for real SLCP emissions reductions; in specific countries, sectors
and industries; and in support of CCAC’s sector/technology-focused Initiatives.
As such, the Initiative subject to this Proposal is the first, necessary, and preparatory phase of a longerterm, action-oriented effort by CCAC on scaling-up private and public financing forSLCP mitigation.
The link between this first phase and subsequent phases is the CCAC Action Roadmap on Finance. The
CCAC Action Roadmap on Finance is the ultimate deliverable of this first phase and will provide the
starting point and conceptual framework for the subsequent, implementation-oriented phases of CCAC’s
overall effort to mobilize SLCP mitigation finance.
EXPECTED RESULTS:
The ultimate deliverable of this Initiative is the CCAC Action Roadmap on Finance, an informed, actionoriented roadmap that will detail what the CCAC – alongside key strategic partners in the public and
private sectors – should do in subsequent phases to mobilise finance for SLCP mitigation at the required
pace and scale; in specific sectors, industries and countries; and in support of CCAC’s sector/technologyfocused Initiatives.
The CCAC Action Roadmap on Financewill be informed by the activities and results of this Initiative
which will include:
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




The set-up of multi-stakeholder expert groups such as the CCAC Task Force on Finance, the
Methane Finance Study Group, as well as the Expert Group on Existing Mechanisms.
The formulation of CCAC recommendations, by each of these groups, on their respective
mandates and areas of expertise.
The organization of corresponding expert group workshops, including preparatory analytical
work to identify and catalogue best practice and address knowledge gaps.
The organization of educational meetings and platforms (webinars, briefings) aimed at sharing
the knowledge gained from experts with CCAC members and stakeholders.
The involvement of, and engagement with, critical stakeholders, particularly from the private
sector (lenders, investors, polluters, technology providers, and their corresponding collective
bodies such as associations), at CEO level. This engagement will explore, conceptualize and
prepare, strategic and action-oriented alliances which could: formulate concrete emission
reduction, financing and technology deployment commitments at CEO-level; organize aggressive
media campaigns highlighting the leadership taken; kick-start collaborative shareholder
engagement campaigns, by institutional investors, vis-à-vis listed polluter companies; as well as
communications and media campaigns on commercially viable SLCP mitigation opportunities.
As such – and in addition to the CCAC Action Roadmap on Finance – this Initiative will facilitate the
emergence of a large community of practice (governments and public agencies, financial institutions,
institutional investors, polluters, technology providers, development partners, and NGOs), through new
strategic partnerships and public-private alliances at CEO-level, to leverage expertise, sparkle innovation,
formulate action plans, and, as such, pave the way for implementation.
ONE PARAGRAPH STATEMENT OF WORK:
UNEP Finance Initiative and the World Bank will team up for this Initiative to combine their unique and
complementary profiles, skills, experience and networks in the areas of green finance. The aim is to
configure, inform, and formulate a global agenda on mobilising financing at scale for SLCP mitigation, as
well as a CCAC Action Roadmap on Finance to guide large scale implementation on the ground. The
Initiative is structured around four Components that map the economics of SLCP mitigation projects, and
provide an initial and logical way of structuring an agenda for unlocking private finance: i)lifting barriers
to, and promoting, commercially viable and financeable SLCP reduction projects; ii) facilitating greater
uptake of existing mechanisms for SLCP mitigation financing; iii) monetizing the non-climate benefits of
SLCP mitigation to mobilize new resources; the fourth component looks at the issues raised in the three
prior Components but with a special focus on methane. This is to ensure that the Finance Initiative is setup to effectively coordinate, synergize and engage with, as well as capitalize on, the many other methane
initiatives/projects within and outside of CCAC. As such the three first Components are closely linked to,
and will inform the fourth Component, and vice versa.
PART II: PROPOSAL (Maximum 20 pages)
1. OBJECTIVE (Describe in one sentence the main objective that the proposed initiative or
component of agreed initiative seeks to achieve, including the hoped-for magnitude of SLCP
emissions reduction.)
The primary objective of this Initiative is to centralize and share the knowledge, build the understanding,
structure the agenda, involve the key stakeholders, and forge the strategic partnerships needed, to pave the
way for implementation of a larger scale, longer-term, action-based, public-private, and global effort to
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up-scale private and public financing for real SLCP emissions reductions; in specific countries, sectors
and industries; and in support of CCAC’s sector/technology-focused Initiatives.
2.
a)
b)
c)
d)
CONTEXT (Describe relevant context in the following terms)
Scope of the problem:
Relevant policies and institutional arrangements:
Key stakeholders:
Additional information, if necessary:
Current actions to mitigate SLCPs are not sufficient to address the challenge that SLCPs represent. One
of the obstacles to the acceleration and up-scaling of SLCP mitigation is the lack of financing. Financing
represents key challenges to all types of SLCP mitigation efforts, across types of SLCPs and economic
activities, but these challenges differ.
Currently, the landscape of options to finance SLCP mitigation features the following characteristics:

Multiple means of financing SLCP mitigation already exist. For instance, the capture and
utilization of landfill methane can be financed by raising carbon finance under the Clean
Development Mechanism (CDM). The mitigation of all such SLCPs recognized under the
UNFCCC and Kyoto Protocol (methane and HFCs in particular) is, in principle, financeable
through international carbon markets.

Some types of SLCP reduction projects are commercially viable and hence commercially
financeable by the private sector today. However, neither the existence of international carbon
markets nor the fact that many projects are commercially attractive, is currently translating into
high-enough levels of financial flows for SLCP mitigation.

There is a wide range of SLCP reduction efforts – across SLCP types and economic sectors - in
terms of project types, project scales, project economics, and relevant stakeholders.
Correspondingly, a wide array of financing sources (existing vs. new; public vs. private;
corporate vs. third-party; SLCP polluters vs. the beneficiaries of SLCP reductions; national vs.
international; multilateral vs. bilateral), stakeholders in the economy and channels for finance,
needs to be addressed and considered by the Coalition.

Finance sources, channels and actors in the private sector need to play a key role in SLCP
mitigation. It is known from UNEP’s analysis on investing in greenhouse gas (GHG) emission
reductions that the bulk of the financing required can be mobilized from sources in the private
sector, through public incentives and sanctions as well as finance instruments or other forms of
public intervention. In light of fiscal constraints in most countries, the Coalition should therefore
emphasize the mobilization of private sector financing for reductions of SLCP emissions.

Multiple, in principle ‘monetizable’, benefits: SLCPs are different from other greenhouse gases
(GHGs) because, in addition to contributing to global warming, they have adverse effects on local
climate, human health and agricultural productivity. The Coalition should, therefore, dedicate
special attention to how the near term, ‘non- climate’ benefits of SLCP reductions could be used
to create sustainable, performance-based revenue streams for SLCP reduction projects.

The mitigation of SLCP is a relatively new and fragmented field, with a number of incipient or
on-going initiatives targeting each some component of the challenge (e.g., specific mitigation
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opportunity, specific sector or geography, specific financing instrument). To mobilize financing
at scale and accelerate SLCP mitigation investment, there is a need to maximize synergies among
such initiatives for faster knowledge exchange and innovation and for larger momentum and
commitment on the ground.
3.
DESCRIPTION
o New Initiative (For a new initiative proposal, describe the initiative as well as the
components of the initiative):
o New Component(s) (For a new component proposal,describe the component and how it
relates to the overall existing initiative):
o For each component described, provide the following information:
 Name of component:
 Objective:
 Deliverable (name deliverable and provide brief description):
 List implementers (if consultant, provide name of institution responsible for
hiring the consultant):
 Timeline, including delivery date(s) for deliverable(s):
This Initiative for scaling up financing for SLCP mitigation is structured around four Components that
represent the first steps of a broader and longer-term initiative aimed at SLCP mitigation. As this is still a
relatively new and fragmented field, this Initiative will explore areas where there is already some
experience and momentum that it can help crystalize to accelerate SLCP mitigation. The four
Components concentrate their efforts on the comparative advantages of the two lead institutions to
propose concrete solutions for scaling up financing for SLCP mitigation and promote their
implementation by working closely with governments, financing institutions and other potential
implementers through existing initiatives (both under the CCAC and other fora).
Financing SLCP mitigation encompasses a wide range of pollutants, of emission sources, of public and
private stakeholders, of sectors, and of solutions that include the application of a wide set of technologies
and of policy and financing instruments. It is therefore critical that links are created between the crosscutting CCAC Finance Initiative and the sector-focused Initiatives of CCAC (see below for examples of
how the Finance Initiative would aim to do that). However, finance also a ‘generic’ issue, and while
exploring financing solutions for SLCP mitigation projects of all types two generic types of variables will
particularly be considered: (i) project economics, and (ii) the general mandates and roles of public and
private actors, including public policy and regulation. For instance, there may be (unexpected) parallels,
and similarities, between the challenges to financing SLCP mitigation through the recovery and utilization
of vented associated gas, in the oil and gas sector, and the challenges to financing SLCP mitigation
through recovery and utilization of landfill methane at the municipal level. The reason is that project
economics in each case may be similar, as well as the natural roles of private and public actors in
achieving emissions reductions. As an analogy: financing GHG mitigation more broadly encompasses a
similarly wide set of GHGs, emission sources, sectors, technologies, etc. Still, innovative and generic
financing solutions (such as the CDM, or cap-and-trade schemes at the national level) have mobilized
private finance for emission reduction project categories as diverse as renewable energy; energy
efficiency; industrial gases; transport and reforestation.
Against this background, this Initiative is structured around four Components that map the economics of
SLCP mitigation projects, and provide an initial and logical way of structuring an agenda for unlocking
private finance:
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
Component 1: lifting barriers to, and promoting, commercially viable and financeable SLCP
reduction projects (or reaping the so-called “low-hanging” fruits of SLCP mitigation for quick
and effective impact);

Component 2: facilitating greater uptake of existing mechanisms for SLCP mitigation financing
(including both mechanisms associated with the climate benefits of SLCP mitigation as well as
the broader menu of public finance mechanism for green investment);

Component 3: monetizing the non-climate benefits of SLCP mitigation to mobilize new
resources;
The fourth component looks at the issues raised in the three prior Components but with a special focus
on methane. This is to ensure that the Finance Initiative is set-up to effectively coordinate, collaborate,
engage with, and capitalize on, the many other methane initiatives/projects within and outside of CCAC.
As such the three first Components are closely linked to, and will inform the fourth Component, and vice
versa.
UNEP-FI and the World Bank will team up for this Initiative to combine their unique and complementary
profiles, skills, experience and networks1 in the areas of green finance and investment to propose ways
and channels to mobilize private sector flows for scaled-up SLCP mitigation. Most importantly, the four
Components of this Initiative will aim to forge strategic, high-level alliances between key public and
private stakeholders at CEO level (the CCAC; national governments; national industry associations;
national banking, insurance and investment associations; ‘polluter’ companies; banks; institutional
investors such as pension funds; technology providers; infrastructure developers and project sponsors).
These Alliances will aim to formulate concrete emissions-reduction, financing or technology deployment
commitments by these different stakeholder groups.
Ultimately, the CCAC Action Roadmap on Finance will draw on the knowledge gained as well as the
strategic partnerships forged, for the design and initiation of – possibly public-private – SLCP emission
reduction programmes on the ground; in selected sectors and countries; and in support of CCAC’s
sector/technology-focused Initiatives. Though focus is on private finance, it also relates to the role of
public intervention to unlock and leverage private flows through policy incentives and financing
instruments (notably to de-risk projects), thus opening a window on experience from the use of, and
opportunities for the application of, public financing mechanisms by governments and bi- and multilateral as well as national development partners.
Activities under the four components will be implemented through a series of multi-stakeholder
workshops, including preparatory analytical work to identify and catalogue best practice and to address
knowledge gaps, and subsequent workshop reports. These workshops would address, explore,
conceptualize and detail the list of activities above and prepare for their implementation under the abovementioned Roadmap.
The implementation of all activities will be steered and overseen by a CCAC ‘Task Force on Finance’
which will convene expert representatives of all relevant stakeholder groups. The CCAC ‘Task Force on
Finance’ can be seen as the Steering Committee of the Finance Initiative, and as an advisory body to both
CCAC and the CCAC Steering Committee on issues related to the mobilization of private financial
resources.
1
Including UNEP FI’s network of members: over 200 financial institutions across banking, insurance and
investment, predominantly from the private sector.
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COMPONENT 1:Solutions for financing and implementing SLCP reduction projects which are, in
principle, commercially viableand financeable.
This Component looks at zero- and negative-cost options. This includes: Replacing traditional
brick kilns with more efficient kilns; Replacing traditional coke ovens with modern recovery ovens ;
Clean burning stoves instead of conventional stoves and/or - clean fuel (LPG/biogas) instead of
biomass stoves; Household anaerobic digesters;Recovery and utilization of vented associated gas
during gas production; etc.)
Differentiating between types of SLCP reduction project and taking into account lessons learnt from
other agendas with similar difficulties, such as the challenges around financing energy efficiency
projects, work under component 1 will include activities such as:

The preparation of a CCAC-convened forum of relevant company, bank and investor CEOs,
for the formulation of concrete emissions-reduction, financing or technology deployment
commitments. This effort could engage with and build from other on-going initiatives in the
private sector, such as the Investor Statement and Initiative on ‘Controlling fugitive methane
emissions in the oil and gas sector’ which already calls on oil and gas companies to move to,
and disclose on, best practice in methane emissions control (more information can be found
here: http://www.iigcc.org/__data/assets/pdf_file/0017/15371/Methane-emissionsStatement.pdf). This type of activity would be particularly suitable for zero- and negative
cost SLCP mitigation options, but could also be explored across all SLCP mitigation
options (see further Pillar 1 Activity Areas below).

The conceptualization and start ofcollaboration with institutional investors in an effort of
broad ‘shareholder engagement’ vis-à-vis listed, polluter companies in the relevant sectors.
Here, Pillar 1 would make use of the ‘Engagement Clearinghouse’ of the UN Principles for
Responsible Investment (UNPRI), an initiative of UNEP FI and the UN Global Compact,
whichprovides a platform for institutional shareholders to convene and collaboratively exert
pressure on investee companies on environmental, social and governance issues (more
information
on
the
‘Engagement
Clearinghouse’
can
be
found
here:
http://www.unpri.org/collaborations/). This type of activity would be particularly suitable
for zero- and negative cost SLCP mitigation options, but could also be explored across
all SLCP mitigation options (see further Pillar 1 Activity Areas below).

In the first phase, the exploration and promotion of national and regional SLCP-service
companies (in analogy to the ‘energy-service-company’ (ESCO) model), either public or
private, which would identify, finance and implement negative- and zero-cost SLCP
reductions in the economy. In subsequent phases, and under the umbrella of a then
formulated ‘CCAC Action Roadmap on Finance’ (see below), this activity area will move to
facilitate and pilot such companies in selected countries and sectors.

The conceptualization and preparation of a major information, capacity building and
mobilization campaign targeted at companies, investors and financial institutions on
opportunities to finance SLCP mitigation opportunities (in the case of zero-cost opportunities
this could be achieved through a Corporate Social Responsibility angle). This type of activity
would be particularly suitable for zero- and negative cost SLCP mitigation options, but could
also be explored across all SLCP mitigation options (see further Pillar 1 Activity Areas
below).
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Links to other CCAC Initiatives: This activity area of the CCAC Finance Initiative will be
particularly relevant to the following Initiatives:

CCAC’s Brick Kilns Initiative where synergies could be seized in efforts to mobilize private
finance from local partner banks in the envisaged project demonstration outlines (through
CEO commitments by banks in the countries concerned; UNEP FI has active bank networks
in Colombia, Mexico, Nigeria, South Africa, Kenya, Brazil, China and Peru). Furthermore, a
financial dimension could be added to the capacity building workshops on how private
finance can be secured for the replacement of traditional brick kilns with more efficient ones.

In the context of CCAC’s Initiative on HFC Alternative Technology and Standards, the above
mentioned company, bank and investor CEO forums, as well as approaches of investor
collaborative engagement with investee companies (through the ‘Engagement
Clearinghouse’), could play strong catalytic roles in the industries concerned.

In the context of accelerating methane and black carbon reductions from oil and natural gas
production, the above mentioned company, bank and investor CEO forums, as well as
approaches of investor collaborative engagement with investee companies through the
‘Engagement Clearinghouse’, could play strong catalytic roles in the sector. This effort could
engage with and build from other on-going initiatives in the private sector, such as the
Investor Statement and Initiative on ‘Controlling fugitive methane emissions in the oil and
gas sector’ which already calls on oil and gas companies to move to, and disclose on, best
practice in methane emissions control (more information can be found here:
http://www.iigcc.org/__data/assets/pdf_file/0017/15371/Methane-emissions-Statement.pdf).
COMPONENT 2:Solutions for facilitating greater uptake of existing mechanisms for SLCP
mitigation financing.
This component looks at all options for which financial support mechanisms exist, particularly,
but not exclusively, via international carbon markets. This includes:Oxidation of ventilation air
methane including improvements in ventilation air systems in coal mines; Recovery of pre-mine
degasification emissions in coal mines; Feed changes for dairy and non-dairy cattle; Reduced leakage
during gas pipeline transmission; Recovery and utilization of vented associated gas during gas
production; Farm-scale anaerobic digestion on large farms with liquid manure management; etc.
Work under Component 2 will include drawing lessons from experience with offset mechanisms such
as the Clean Development Mechanism (CDM) as well as with the financing mechanism under the
Montreal Protocol for addressing ozone depleting substances, to conceptualize, design and implement
additional incentives and mechanisms to expand project pipelines where relevant for SLCPs and to
inform the proposal for new financing mechanisms. This activity area will create a public-private
Expert Group on Existing Mechanisms (EGEM) tasked with:

Exploring how to boost the effectiveness of the CDM and PoAs in mobilizing funding
specifically for SLCP reduction projects. The group would not act on the CDM itself but
rather explore and conceptualize additional incentives and mechanisms (including
performance-based payments) to expand and accelerate CDM/POA pipelines where relevant
to SLCPs.

Identify, highlight and socialize existing concepts and mechanisms which monetize the nonclimate benefits of SLCP reduction activities, both at national and international levels.
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
Explore how existing instruments and operations of development banks (multilateral,
bilateral, national) that aim to leverage private finance for infrastructure and technology
investment in developing countries, can be used more explicitly in the area of SLCP
mitigation.
As such, this Expert Group will closely follow, and engage in, the discussions –under Component 4
of this Initiative – of the Methane Finance Study Group, ensuring that insights in the methane area are
fed into the work on other SLCPs, and vice versa.
Links to other CCAC Initiatives: While not limited to methane as an SCLP, this component will
specifically include a review of lessons learned from carbon finance projects in the solid waste
management sector (either landfill gas or composting), looking at institutional, financing and
regulatory barriers that are relevant in the context of SLCP mitigation. This study will be done in
close collaboration with the Financing work stream of the Municipal Solid Waste Initiative of the
Coalition, thus strengthening partnerships and maximizing synergies among activities supported by
the Coalition.
COMPONENT 3:Solutions for the monetization of the non-climate benefits of SLCP mitigation, at
both local and global levels.
This Component looks at positive-cost options with non-climate co-benefits that cannot be
monetized as of yet. This includes: All options under 2. if implemented in developed countries; Euro
VI/6 standards for heavy duty vehicles; Pellet stoves and boilers replacing current wood burning
technologies in industrialized countries; Ban of field burning of agricultural waste; Elimination of
high-emitting vehicles; Intermittent aeration of continuously flooded rice paddy fields; etc.
Activities under Component 3 will include assessing roles going forward of, as well as possibly
commitments for, (particularly corporate) polluters, technology providers, financiers, institutional
investors, national policy-makers, sector regulators, as well as the CCAC as an international coalition
of countries in this important area. The fundamental notion that underpins this area of activity is that
SLCPs, in addition to contributing to global warming, have adverse effects on local climate, human
health and agricultural productivity. The resulting co-benefits of SLCP mitigation should be drawn
upon, in a finance context, in a similar way to how the climate change mitigation benefits of emission
reduction projects are drawn upon under the Kyoto Protocol’s Clean Development Mechanism.
Links to other CCAC Initiatives: This activity area of the CCAC Finance Initiative would be
particularly relevant to CCAC’s Initiative on Reducing Black Carbon Emissions from Heavy Duty
Diesel Vehicles and Engines Initiative, as it could add a financing component to it. For instance, the
‘CCAC Action Roadmap on Finance’ in this activity area could foresee the piloting of schemes, in
partner countries, that aimed to monetize the health-benefits of higher fuel sulphur standards.
COMPONENT 4:Devising new financing mechanisms to deliver the climate and non-climate cobenefits of SLCP mitigation.
Component 4 will consider methane as a test case for devising new financing mechanisms to deliver
the climate and non-climate co-benefits of SLCP mitigation.Methane is the second largest cause of
climate change after carbon dioxide and reducing a ton of methane has over 70 times the cooling
effect of reducing a ton of carbon dioxide over a 20-year time frame. Given low carbon prices
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prevailing today, there are not any longer strong financial incentives for firms and governments to
reduce methane emissions at scale. This leaves a void that can be filled with pay-for-performance
mechanisms, potentially containing market elements that could overcome this investment gap with
appropriate financial engineering.
Drawing on the experience of the members of the Methane Study Group convened by the World
Bank, it will assess financing options, with particular attention to performance-based approaches.
With an explicit focus on how to achieve mitigation scale-up, Component 4 will review the potential
catalytic effect public resources (including through ODA and MDBs’ instruments) can have on
leveraging other sources of private finance. There are significant synergies between activities carried
out under the different components of this initiative: for instance, insights from work under
Component 2 (lessons learned from carbon finance projects in the solid waste management sector)
can inform discussions under Component 4 while options examined under Component 3 can benefit
from advances in Component 4.
The target size of the Study Group is 25 participants. All G8 countries will be invited to participate,
as will other countries with a known interest in pay-for-performance and/or strong programs in
methane abatement, for example, Australia, China, European Commission, Indonesia, Mexico,
Norway and Sweden. Interested CCAC partner countries will be prioritized for invitation to the
Study Group. Selected experts from academia, NGOs, and the investor community will be invited
including experts involved in the Global Methane Initiative, Methane Blue Ribbon Panel, the Global
Methane Group and the Global Gas Flaring Partnership
At the first Methane Study Group meeting, participants will agree on objectives and be educated on
the topic. Topics to be discussed include 1) methane abatement generally, with an overview of the
different type of activities and relevant financing tools available, 2) the World Bank’s experience with
carbon finance in methane abatement, and 3) orientation to pay-for-performance instruments,
including definitional questions (e.g., Results Based Finance, Pay for Performance, etc.)
The second meeting of the Study Group will focus on presenting and discussing the various financing
instruments and their positive and negative features. At this second meeting, the Study Group will
review the commonalities and differences between financing mitigation of methane and that of other
SLCPs and the opportunities for building on methane-focused financing solutions. To that end (and
to capitalize on thinking under both Pillars), the second meeting of the Methane Study Group will be
held alongside a meeting of the CCAC Task Force on Finance. The World Bank will lead in the
drafting of an options paper for circulation and comment. Based on this paper, the World Bank will
lead the drafting of a Study Report outlining the recommendations of the Study Group. The Study
Report will be discussed and finalized at a third meeting in early 2013. In addition to being shared
with Coalition partners, the report will also be forwarded to G8 ministers/leaders under the U.K.
presidency.
The Report will build on the presentations and discussions during the three meetings. It will provide
an overview of financing constraints facing methane abatement projects, review common financing
arrangements for these types of projects, and assess what types of innovative approaches, especially
pay-for-performance mechanisms (e.g., Put option pay-for-performance mechanism, Public Finance
pay-for-performance facility, Carbon Market Top-Up, or a combination of all of the above in a Global
Methane Fund).
The Study Report will inform the discussion on new, dedicated financing mechanisms for SLCPs by
providing concrete inputs for methane financing. The recommendations of the Study Group would
feed into both the Climate and Clean Air Coalition’s targeted sectoral work to reduce methane
10
emissions as well as its cross-cutting discussions on financial mechanisms and leveraging private
finance for SLCP reductions.Key findings (including concrete options and identification of possible
pilots) from work under Component 4 can also provide critical insights on opportunities to leverage
ODA and MDB finance. Depending on demand and catalytic resources available, MBDs and
bilateral development partners can have a significant role in facilitating the emergence of pay-forperformance schemes (e.g., through piloting) and in putting in place SLCP mitigation programs in
their portfolio of development activities. Lessons from the Methane Study Group on opportunities for
blending ODA and results-based financing with methane mitigation potential can play here a key role
in driving this effort.
Links to other CCAC Initiatives: The Methane Finance Study Group plans to inform the discussion
on new, dedicated financing mechanisms for SLCPs by providing concrete inputs for methane
financing early-on in the CCAC Finance Initiative. The Study Group discussions will build on
existing expertise and understanding in the methane abatement field, including the work under two
CCAC Initiatives, Mitigating SLCPs from the Municipal Solid Waste Sector and Accelerating
Methane and Black Carbon Reductions from Oil and Natural Gas Production. It will also link with
related efforts such as the Methane Blue Ribbon Panel, the Global Methane Initiative, the Global Gas
Flaring Partnership and others. The recommendations of the Study Group would ideally feed into
both the Coalition’s targeted sectoral work to reduce methane emissions as well as cross-cutting
discussions on financial mechanisms and leveraging private finance for SLCP reductions. The
findings of the Study Group will also be shared widely through existing networks and organizations
including the Global Methane Initiative which holds its annual Expo in Vancouver in March of 2013.
4. THEORY OF CHANGE (Explain how the initiative and its related components, or new
component of an existing initiative, will contribute to the achievement of SLCP emissions
reduction in the following terms)
a) Ability to contribute to targeted long-term goals:
Both UNEP FI and the World Bank have an extensive track record, proven expertise, and relevant
networks in the areas of green finance. The nature and focus of both organisations is, however,
complementary:
 UNEP FI is a public-private partnership with a network of over 200 financial institutions,
predominantly from the private sector. Therefore, UNEP FI focuses on facilitating behavioral
change on financial markets, as well as on the design of policy frameworks, incentives, sanctions,
and public finance mechanisms, which are aimed at mobilizing private debt, equity, and
shareholder engagement for, for instance, low-emissions activities. UNEP FI not only has the
track record, convening power, and analytical expertise, to build public-private agendas around
these issues; furthermore, UNEP FI has shown its ability to effectively engage with private sector
decision-makers in the formulation of behavioral principles and corresponding commitments at
CEO-level. The ‘Principles for Responsible Investment’ (http://www.unpri.org/), a normative
charter for institutional investors now backed by over 1000 investors worldwide, as well as the
recently launched ‘Principles for Sustainable Insurance’ (http://www.unepfi.org/psi/), signed by
over 30 CEOs from the insurance industry, demonstrate this ability. This means that the Initiative
subject to this Proposal is well equipped to convene, through UNEP FI, the high-level, publicprivate, and commitment-based alliances required to achieve the long-term SLCP mitigation
targets of CCAC.
 The World Bank, a multilateral development bank, plays an important role in mobilizing and
leveraging resources for green development through policy and institution dialogue, investment
on the ground, innovation and readiness. Its recently approved new Environment Strategy
(Toward a Green, Clean, and Resilient World for All: A World Bank Group Environment
11
Strategy 2012 – 2022) identifies mobilizing additional resources as an important cross-cutting
objective to advance the green, clean, and resilient agenda. In support of this proposed joint
Initiative with UNEP-FI for scaling-up financing for SLCP mitigation, the World Bank will
leverage (teaming up as relevant with the International Finance Corporation) its extensive
capacity and experience in areas such as i) economy-wide support to governments for sustainable
development and policy reforms (e.g., energy sector); ii) pioneer of financial innovation for
green growth, as evidenced by its catalytic role for the deployment of carbon markets or through
innovative use and combination of financing sources and instruments to leverage private finance
for low-emissions development; iii) provider of cutting-edge knowledge and support for
readiness and capacity-building in the area of green, clean and resilient development (e.g.,
including to private sector audience, such as through the Climate Technology Program to
facilitate the uptake of green technologies by companies in developing countries); iv) convening
power and extensive partnerships for green investment and finance (e.g., the recently established
Green Growth Action Alliance, geared at mobilizing private finance).
b) Ability to complement, scale up and accelerate existing efforts to address SLCP emissions:
The mitigation of SLCP is a relatively new and fragmented field, with a number of incipient or on-going
initiatives targeting each some component of the challenge (e.g., specific mitigation opportunity, specific
sector or geography, specific financing instrument). To mobilize financing at scale and accelerate SLCP
mitigation investment, this Initiative will maximize momentum of such initiatives by interacting with
them for faster knowledge exchange and innovation and for larger momentum and commitment on the
ground (see below for an overview of how the different Components of this Initiative are relevant to, and
should interact, with other CCAC Initiatives). Beyond CCAC, this Initiative will engage, and seek to
seize synergies with other SLCP-related initiatives, particularly in the private sector and in financial
markets, such as the Investor Statement and Initiative on ‘Controlling fugitive methane emissions in the
oil and gas sector’ which already calls on oil and gas companies to move to, and disclose on, best practice
in
methane
emissions
control
(more
information
can
be
found
here:
http://www.iigcc.org/__data/assets/pdf_file/0017/15371/Methane-emissions-Statement.pdf).
This
Initiative is undertaken by the Institutional Investor Group on Climate Change (IIGCC), the Investor
Network on Climate Risk (INCR), and the Investor Group on Climate Change (IGCC), which are all
partner networks of UNEP FI already.
UNEP FI, by its own public-private nature, and by its potential role as an interface between CCAC, the
investment community and financial markets, can particularly seize synergies between the activities of
CCAC and its members, on the one hand, and SLCP-related activities in the private sector on the other.
Similarly the World Bank is engaged in SLCP-related initiatives, both under the CCAC (e.g., on solid
waste management or agriculture) or in other fora (e.g., through work recently commissioned by the G-8
or through the Global Gas Flaring Partnership and others) and will actively broker knowledge and
innovation among its extensive networks and partnerships in support of this proposed joint Initiative with
UNEP-FI for scaling-up financing for SLCP mitigation.
c) Ability to catalyze new actions to address SLCP emissions:
Drawing on the complementary expertise, mandate and networks of the Lead Partners (highlighted in a)
and maximizing synergies with existing efforts for SLCP mitigation (discussed in b), this Initiative is
well-positioned to foster an action-oriented community of practice on SLCP mitigation, at both technical
and high levels, is an important feature of this initiative. It ambitions to forge new strategic partnerships
and public-private alliances at CEO-level to formulate emission reduction, financing, and technology
deployment commitments, including by private sector actors.
12
d) Describe how the participation of the CCAC will improve the chances for success:
Mobilising private sector engagement, and financing, will not happen by itself. Market forces alone do
not seem to be strong enough yet to unlock private finance and engagement for SLCP mitigation; not
even in the case of negative- or zero-cost mitigation options. What is needed is an integrated publicprivate approach to address the problem, whereby public actors help to put in place policy frameworks,
regulations, incentives, sanctions, and financing instruments conducive to generating private finance.
Alternatively: already by creating a high-level agenda and a public discourse with political weight behind
it, can public actors effectively bring an issue like SLCP mitigation to the attention of private sector
decision-makers, and facilitate their engagement on the problem.
The participation of CCAC, as the most significant public effort on SLCPs at the international level, in
this effort to mobilize particularly private finance is, therefore, as essential to its success, as the
participation of decision-makers from the investment community, financial markets, and the private sector
more broadly.
5. EXPECTED BENEFITS (Describe the expected benefits in terms of the following
criteria)[Please note: this critera could be replaced with revised criteria agreed on by the
Coalition]
This Initiative is about catalyzing change by laying out an action-oriented roadmap and mobilizing
committed stakeholders to pave the way for implementation in subsequent phases. Therefore direct
benefits from the Initiative are mostly related to awareness raising and capacity building while longerterm benefits (linked to the implementation of the Roadmap in subsequent phases) will likely include all
of the below categories.
a)
b)
c)
d)
e)
f)
Economic:
Technical:
Health:
Gender:
Social:
Capacity building:
Effective knowledge management (addressing gaps, identifying and cataloguing best practice, raising
awareness, and enhancing readiness) is critical to ensure maximum impact for this Initiative. Among its
activities features the organization of educational meetings and platforms (webinars, briefings) aimed at
sharing the knowledge gained from experts with CCAC members and stakeholders and at catalyzing
change. The conduits to do so could include the already extensive capacity building programs of
development partners, notably to address readiness gaps and needs for the implementation of the CCAC
Action Roadmap on Finance, for instance around financing solutions and potential pilots.
g) Awareness raising:
Together with building capacity, the proposed Initiative will work towards raising awareness on benefits
of, and solutions for, mitigating SLCP both for stakeholders within its community of practice and for a
more general audience. This will take several forms including kick-start collaborative shareholder
engagement campaigns, by institutional investors, vis-à-vis listed, polluter companies; as well as
communications and media campaigns on commercially viable SLCP mitigation opportunities;organize
media campaigns highlighting the leadership taken.
13
h) Environment
a. Air quality:
b. Climate benefits:
c. Ecosystem health:
d. Natural resources conservation:
6. EXPECTED RESULTS (Describe, in qualitative and quantitative terms to the extent possible,
expected results)
The ultimate deliverable of this Initiative is the CCAC Action Roadmap on Finance, an informed, actionoriented Roadmap that will detail what the CCAC – alongside key strategic partners in the public and
private sectors – should do in subsequent phases to mobilise finance for SLCP mitigation at the required
pace and scale; in specific sectors, industries and countries; and in support of CCAC’s sector/technologyfocused Initiatives.
The CCAC Action Roadmap on Financewill be informed by the activities and results of this Initiative
which will include:





The set-up of multi-stakeholder expert groups such as the CCAC Task Force on Finance, the
Methane Finance Study Group, as well as the Expert Group on Existing Mechanisms.
The formulation of CCAC recommendations, by each of these groups, on their respective
mandates and areas of expertise.
The organization of corresponding expert group workshops, including preparatory analytical
work to identify and catalogue best practice and address knowledge gaps.
The organization of educational meetings and platforms (webinars, briefings) aimed at sharing
the knowledge gained from experts with CCAC members and stakeholders.
The involvement of, and engagement with, critical stakeholders, particularly from the private
sector (lenders, investors, polluters, technology providers, and their corresponding collective
bodies such as associations), at CEO level. This engagement will, explore, conceptualize and
prepare, strategic and action-oriented alliances which could: formulate concrete emission
reduction, financing and technology deployment commitments at CEO-level; organize aggressive
media campaigns highlighting the leadership taken; kick-start collaborative shareholder
engagement campaigns, by institutional investors, vis-à-vis listed, polluter companies; as well as
communications and media campaigns on commercially viable SLCP mitigation opportunities.
As such – and in addition to the CCAC Action Roadmap on Finance – this Initiative will facilitate the
emergence of a large community of practice (governments and public agencies, financial institutions,
institutional investors, polluters, technology providers, development partners, and NGOs), through new
strategic partnerships and public-private alliances at CEO-level, to leverage expertise, sparkle innovation,
formulate action plans and, as such, pave the way for implementation.
7. IMPLEMENTATION (Describe implementation of the initiative and its related components or
new component within an existing initiative, according to the following categories):
a) List and describe implementers of the components:
UNEP-FI, World Bank
14
b) Assistance desired from the Coalition (Specify any non-financial assistance requested from
State and Non-state Partners, Science Advisory Panel, and Secretariat):
c) Interrelation with other existing efforts (Describe any ongoing and/or planned efforts that the
proposed initiative will build upon, link with, and/or scale up):
Component 1 could inform stakeholders/help identification/implementation of pilots in relation with the
following initiatives:

CCAC’s Brick Kilns Initiative where synergies could be seized in efforts to mobilize private
finance from local partner banks in the envisaged project demonstration outlines (through CEO
commitments by banks in the countries concerned; UNEP FI has active bank networks in
Colombia, Mexico, Nigeria, South Africa, Kenya, Brazil, China and Peru). Furthermore, a
financial dimension could be added to the capacity building workshops on how private finance
can be secured for the replacement of traditional brick kilns with more efficient ones.

In the context of CCAC’s Initiative on HFC Alternative Technology and Standards, the above
mentioned company, bank and investor CEO forums, as well as approaches of investor
collaborative engagement with investee companies (through the ‘Engagement Clearinghouse’),
could play strong catalytic roles in the industries concerned.

In the context of accelerating methane and black carbon reductions from oil and natural gas
production, the above mentioned company, bank and investor CEO forums, as well as approaches
of investor collaborative engagement with investee companies through the ‘Engagement
Clearinghouse’), could play strong catalytic roles in the sector. This effort could engage with and
build from other on-going initiatives in the private sector, such as the Investor Statement and
Initiative on ‘Controlling fugitive methane emissions in the oil and gas sector’ which already calls
on oil and gas companies to move to, and disclose on, best practice in methane emissions control
(more
information
can
be
found
here:
http://www.iigcc.org/__data/assets/pdf_file/0017/15371/Methane-emissions-Statement.pdf).
Component 2:While not limited to methane as an SCLP, this component will specifically include a
review of lessons learned from carbon finance projects in the solid waste management sector (either
landfill gas or composting), looking at institutional, financing and regulatory barriers that are relevant in
the context of SLCP mitigation. This study will be done in close collaboration with the Financing work
stream of the Municipal Solid Waste Initiative of the Coalition, thus strengthening partnerships and
maximizing synergies among activities supported by the Coalition.
Component 3:Activites under component 3 would be particularly relevant to CCAC’s Initiative on
Reducing Black Carbon Emissions from Heavy Duty Diesel Vehicles and Engines Initiative, as it could
add a financing component to it. For instance, the ‘CCAC Action Roadmap on Finance’ in this activity
area could foresee the piloting of schemes, in partner countries, that aimed to monetize the health-benefits
of higher fuel sulphur standards.
Component 4:The Methane Finance Study Group plans to inform the discussion on new, dedicated
financing mechanisms for SLCPs by providing concrete inputs for methane financing early-on in the
CCAC Finance Initiative. On the margin of one of the Study Group meetings the Lead Partners will
organize a wider SLCP mitigation workshop in order to provide cross fertilization between experts and
15
information between methane and other SLCP ideas. The Study Group discussions will build on existing
expertise and understanding in the methane abatement field, including the work of the Methane Blue
Ribbon Panel, the Global Methane Initiative, the Global Gas Flaring Partnership and others. The
recommendations of the Study Group would ideally feed into both the Coalition’s targeted sectoral work
to reduce methane emissions as well as cross-cutting discussions on financial mechanisms and leveraging
private finance for SLCP reductions. The findings of the Study Group will also be shared widely through
existing networks and organizations including the Global Methane Initiative which holds its annual Expo
in Vancouver in March of 2013.
d) Risks and mitigation: (Describe the main risks and obstacles of the initiative and its
components, or new component of an existing initiative, and proposals for overcoming and
mitigating these risks. Rate each risk/obstacle “low”, “moderate” or “substantial”):
Perceived Risk (rating)
Proposed mitigation action
Limited engagement of key
stakeholders, given novelty of field,
perceived costs and risks and low
benefits of SLCP mitigation
(moderate)
At their kick-off meeting, the Task Force on Private Finance
and expert groups of each component will identify areas (and
related stakeholders) where there is already interest to build on
such momentum and ensure maximum impact of efforts under
the Initiative
Major awareness raising/outreach activities planned such as
collaborative shareholder engagement campaigns, high-level
Summit, communications and media campaigns on
commercially viable SLCP mitigation opportunities,
campaigns highlighting the leadership taken
Task force and expert groups of each component will also
work with Lead Partners and CCAC bodies to maximize
convening power and obtain high level participation and
commitments
Preliminary discussions with private sector representatives in
the UNEP FI network have already shown strong interest, and
willingness to participate in this Initiative, among member
organizations of UNEPFI.
Change in some governments’
priorities, with less posterior interest in
activities of the Coalition (low)
The Coalition is already extending its reach, with broader
participation or interest from governments (and other
partners). Larger membership should help mitigate the risk of
realignment in the environmental priorities of some partner
governments
Low amount of catalytic public
resources (e.g., ODA) available to help
implement pilots in subsequent phase
(moderate)
In a related effort, the World Bank is looking into integrating
SLCP mitigation opportunities in its portfolio of development
activities at the request of the G8. Key findings from this
work (of relevance to bi- and multi-lateral development
finance institutions) can provide critical insights on
opportunities to leverage MDB finance for SLCP mitigation
and mitigate (to a certain extent only) lack of catalytic public
resources.
16
e) Sustainability: (Describe the ability to sustain the initiative and its components, or new
component of an existing initiative, to scale-up over time, and to replicate in different
contexts):
This initiative is about catalyzing change by laying out an action-oriented roadmap and mobilizing
committed stakeholders to pave the way for future implementation. Depending on future availability of
catalytic resources in a second phase of the initiative, a number of pilots could be undertaken contributing
to increased private sector financing and broader and more active engagement of stakeholders.
f) Outreach and awareness raising: (Outline the outreach and awareness raising activity that
will support the achievement of expected benefits and results – noting that a detailed
outreach plan should be prepared for major initiatives and components with the following
information: outreach objectives, target groups, key messages and communication tactics):
Fostering an action-oriented communityof practiceon SLCP mitigation, at both technical and high levels,
is an important feature of this proposal. All due efforts will be made to ensure inclusive participation, to
benefit from cutting-edge knowledge and experience of a wide range of stakeholders and, to raise the
awareness of, and strengthen synergies among, existing initiatives for faster dissemination and
implementation. Additional outreach/awareness raising will include:

Workshops and/or information-sharing mechanisms and platforms to disseminate findings and
inspire change (for instance building on events from particular CCAC initiatives, or leveraging
the capacity building programs of development partners);

Awareness raising campaigns on benefits of, and solutions for, mitigating SLCP both for
stakeholders within its community of practice and for a more general audience. This will take
several forms including kick-start collaborative shareholder engagement campaigns, by
institutional investors, vis-à-vis listed, polluter companies; as well as communications and media
campaigns on commercially viable SLCP mitigation opportunities; organize media campaigns
highlighting the leadership taken;

High-level engagement – via events and fora – featuring the participation of heads of financial
institutions, companies and ministers to formulate commitments and mobilise resources for
mainstreaming SLCP considerations in their activities (for instance in Dec. 2013 in the margins
of the COP or World Economic Forum Summit in Davos in Feb. 2012).
8. TIMELINE (Provide a detailed timeline for implementation (e.g. with Gantt chart):
Components 1-3
Component 4
17
Dec 2012
Kick-off Meeting of the CCAC
‘Finance Task Force’ to detail the
composition and objectives of each
of the components
Kick-off Meeting of the Methane
Finance Study Group with the CCAC
‘Private Task Force’ in tandem
Jan/Feb 2013
Second meeting of Methane Finance
Study Group
Feb/Mar 2013
World Bank drafts Methane Finance
Options Paper
Mar-May 2013
First set of public-private
workshops in the order and with the
focus agreed on by the CCAC Task
Force on Finance, and following
the logic provided by the structure
of the Components.
Final meeting of Methane Finance Study
Group
Submit Recommendations on Methane
Finance Study Report
April/May 2013
May - July 2013
Based on the initial set of workshops and the Methane Finance Study
Report,the World Bank and UNEP FI draft the CCAC Action Roadmap on
Finance, and submit a first draft to the CCAC Task Force on Financeand the
CCAC Steering Committee for discussion.
July – December
2013
Consultation and socialisation process of the draft CCAC Action Roadmap on
Finance with relevant public and private stakeholders (among polluters and
technology providers, their associations, etc.), including in the finance sector
and the global investment community, within and outside of CCAC.
18
January - April
2014
June 2014
Second and final set of publicprivate workshops in the order and
with the focus agreed on by the
CCAC Task Force on Finance, and
following the logic provided by the
structure of the Components. Aim
is to validate and agree, with the
CCAC Task Force on Finance as
well as the CCAC Steering
Committee, on a final draft of the
CCAC Action Roadmap on
Finance.
Final draft of the CCAC Action Roadmap on Finance is submitted and
presented to CCAC.
9. RESULTS, MONITORING AND EVALUTION (List performance indicators to measure
progress, using SMART criteria (specific, measurable, achievable, relevant, and time-bound).
Include the following indicators, if relevant:
This initiative is about catalyzing change by laying out an action-oriented roadmap and
mobilizing committed stakeholders to pave the way for future implementation. Its ultimate
deliverable is the CCAC Action Roadmap on Finance, and the main evaluation criteria will be its
endorsement by the members of the Coalition. The longer-term success of this Initiative (linked
to implementation in subsequent phases) will be measured by the incorporation of its
recommendations into other initiatives of the Coalition and its partners, as well as the leading to
subsequent phases of development and implementation of the CCAC finance initiative.
Therefore, UNEP-FI and the World Bank will seek to monitor the key indicators including the
number of domestic policies modified based on the results of the report, and the number of report
recommendations translated into action by the Coalition and/or other stakeholders.
10. BUDGET
For initiatives: Provide a two-year budget envelope, with any known costs and financing options
required for implementing this initiative. To the extent possible, indicate priorities and sequencing of
funding components. Add additional rows as necessary. (If long-term budget projections are
available, e.g. on a five or ten-year timescale, please provide a short paragraph with this
information).
For Components: Provide a two-year budget with costs for each component and activity to be
undertaken as part of this component, breakdown activity cost by type of expenses (personnel, travel,
etc.). Please note, one component may have multiple activities. Indicate priorities and sequencing of
funding components. Add additional rows as necessary.(If long-term budget projections are
available, e.g. on a five or ten-year timescale, please provide a short paragraph with this
information).
19
TO BE MERGED INTO 1 TABLE
Components 1-3
Activities
CCAC
Costs
Other
Costs -
Financing
Sources
% CCAC
Financing
Senior
supervision
by UNEP
FI:
Concept, agenda-building and
organisation of a first set of publicprivate workshops (3), in the order
and with the focus agreed on by the
CCAC Task Force on Finance, and
following the logic provided by the
structure of the Components
$100,000
$5,000
CCAC / UNEP
FI
95%
Venue and catering for the first set
of public-private workhops
$20,000
$0,00
CCAC
100%
Concept, design, development and
darfting of the CCAC Action
Roadmap on Finance
$100,000
$5,000
CCAC / UNEP
FI
95%
Consultation and socialization
process of the draft CCAC Action
Roadmap on Finance across public
and private constituencies and fora:
discussion fora, presentations,
webinars, online presence
$150,000
$5,000
CCAC / UNEP
FI
97%
20
Second and final set of publicprivate workshops (3) in the order
and with the focus agreed on by the
CCAC Task Force on Finance, and
following the logic provided by the
structure of the Components. Aim
is to validate and agree, with the
CCAC Task Force on Finance as
well as the CCAC Steering
Committee, on a final draft of the
CCAC Action Roadmap on Finance.
$100,000
$5,000
CCAC / UNEP
FI
95%
Venue and catering for the second
set of public-private workshops
$20,000
$0,00
CCAC
100%
Organisation and holding of 3
meetings of the CCAC Task Force
on Finance
$25,000
$5,000
CCAC / UNEP
FI
83%
Travel of developing country
participants
$75,000
$0,00
CCAC
$590,000
$25,000
Total budget
21
CCAC / UNEP
FI
96%
Component 4
Actions
Developing country participants
1x
external
venue and catering
Travel
Expenses
2 x WB venue as ‘in-kind’
Staff
and consultant travel
Contribution
Event coordination
Report research and publication
Contingency
Total Budget
CCAC
Costs
$64,500
$9,000
$0
$17,500
$12,000
$79,000
$18,000
$200,000
22
Other
Costs
$0
$0
$1,000
$0
$0
$0
$0
$1,000
Financing
Sources
CCAC
CCAC
World Bank
CCAC
CCAC
CCAC
CCAC
% CCAC
Financing
100%
100%
0%
100%
100%
100%
100%
ANNEX 1
COMPILATION OF COMMENTS RECEIVED FROM PARTNERS ON THE DETAILED PROPOSAL
Comments from Denmark
In general we find the intiative both relevant and focused.
It is therefore more as a matter of principle, that we would sugest to change the title of the initiative to :
"Analysing options for Scaling-up Financing for SLCP Mitigation through Knowledge, Innovation and
Strategic Partnerships"
The suggested change reflects that we do not want to create the expectation, that there will be a separate
financial structure to be build around the initiative. At this stage a number of partners, such as
Denmark, are planning to come forward with a contribution that can get coalition activities up and
running. Only a few countries have so far set out their level and priorites for climate finance after 2012 and no decision for longer-term financial contributions to the initiatives have been considered.
On that basis, the desciption under "primary objectives" on the first page, should read:
"As such, the Initiative subject to this Proposal is the first, necessary, and [analytical] preparatory phase
of a [possible] longer-term, action-oriented effort by CCAC on scaling-up private and public financing for
SLCP mitigation."
Comments from the United Kingdom
We are very supportive of research being carried out to identify how finance can be mobilised to tackle
short-lived climate pollutants, as this is a worthwhile task.
However, many of the issues referenced are generic climate finance issues rather than specific only to
SLCPs. While some issues are specific to these gases and sectors, it would be good to see more details as
to how this work links in with wider research conducted by others into mobilising climate finance.
There is a huge literature already out there on mobilizing climate finance.
Therefore there is a real risk of reinventing the wheel here and commissioning further research which will
sit on the shelf. This is particularly the case if the CCAC ends up doing generic research into mobilizing
climate finance, rather than specifics on a particular policy/technology/ sector. The first 3 components of
the proposed work looks rather generic.
Even component 4 which is looking at Methane could be considered too broad ¨Methane covers
agriculture, extractives and waste among others, with relatively little overlap in issues between sectors.
Therefore 3 separate studies would be ideal to do this. It should be noted that the time and budget is
available to do this.
The proposal still suggests that CO2 mitigation doesn’t carry any co-benefits. While this isn’t necessarily
an issue for this work, it could be if they start examining how to redirect existing climate finance flows
rather than looking at how to mobilize additional climate finance.
On the costs, the actual research again forms a relatively small share of the total costs, with developing
country participation, venues, management and stakeholder engagement all representing a significant
proportion of costs. While they are all important aspects of the research, it would be useful to emphasise
the need to keep a check on the costs of these wider elements.
23