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2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
2 pablo obrador 2010 11-1 bancoldex-kurz
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2 pablo obrador 2010 11-1 bancoldex-kurz

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Sesión III: Experiencias con los mercados de carbono y el financiamiento de proyectos de reducción de emisiones GEI / Presentación: Pablo Obrador, Fondo de carbono KFW, Alemania

Sesión III: Experiencias con los mercados de carbono y el financiamiento de proyectos de reducción de emisiones GEI / Presentación: Pablo Obrador, Fondo de carbono KFW, Alemania

Published in: Economy & Finance, Technology
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  • 1. KfW Carbon Fund Mobilizing capital for CDM projects and programs from the perspective of a development bank: the experience of KfW Carbon Fund Bogotá, November 18, 2010 KfW Carbon Fund
  • 2. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 1. The KfW Carbon Fund 2. Carbon Finance Structures 3. Cooperation with financing institutions
  • 3. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 KfW Carbon Fund Our Mandate  German Government Mandate (BMU) and European Dimension • Promote the use of carbon credits for compliance (focus on EU-Emission Trading Scheme, ETS) • Promote the use of carbon credits for project and programme development • Lead carbon market development with innovative approaches  Basic KfW approach: mitigate market imperfection • Enable / simplify access to the carbon market for buyers and sellers • Assume carbon market risk as appropriate • Mitigate regulatory risks (e.g. post-Kyoto, EU-ETS III) • Give special support to projects/programmes with high development impact (small projects, programmes of activities (PoA)
  • 4. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 KfW Carbon Fund KfW Carbon Programmes  KfW Carbon Fund (1st Tranche) • Volume: EUR 84 million, closed 31 December 2007  EIB-KfW Carbon Programme I • Volume: EUR 88 million, closed 30 June 2009  Post-2012 Carbon Credit Fund (together with EIB, CDC, ICO and NIB) • Volume: EUR 125 million, external fund manager  EIB-KfW Carbon Programme II • Volume EUR 100 million  Government of Belgium Carbon Programme • Volume: EUR 20 million  Syndication activities (sales back-to-back)  KfW owned CDM portfolio and participations on carbon funds (e.g. CDCF)
  • 5. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010  KfW's portfolio of carbon credits as at 30 June 2010 • Number of contracted projects: 78 • Number of contracted carbon credits: some 34,5 million Portfolio by sector Portfolio by country 26% 19% 17% 17% 7% 4% 4% 3% 3% Landfill gas Renewable energy: wind energy Renewable energy: hydropower Energy efficiency Fuel switch Renewable energy: biogas Renewable energy: biomass Mine gas Rest 35% 27% 19% 5% 2% 1% 3% 5% 3% China Brazil India Poland Egypt Nepal Philippines Mexico Rest KfW Carbon Fund KfW's portfolio of carbon credits
  • 6. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 KfW Carbon Fund KfW's portfolio of carbon credits in LAC Project Name Country Status CERs Bandairantes and Sao Joao Landfill Gas Projects Brazil Registered 3.200.000 Gramacho Landfill Gas Project Brazil Registered 1.200.000 Electric Power Co-Generation by LDG Recovery – CST Brazil Registered 350.000 Switching coal to palm oil mill biomass waste residues at INOLASA Costa Rica Registered 150.000 Santo Domingo Wind Energy Project Mexico Registered 2.400.000 Bii Stinu Wind Energy Project Mexico Registered 2.100.000 Guaracachi Combined Cycle Project Bolivia Registered 150.000 Comodoro Combined Cycle Project Argentina Registered 100.000 TOTAL Registered Projects 9.650.000 Puebla Landfill Gas Project* Mexico Validation 1.200.000 Clinker Reduction and EE Projects at CENOSA Cement Plant Honduras Validation 500.000 MAGESA Waste Water Treatment Project* Guatemala PDD dev. 750.000 TOTAL LAC 12.100.000
  • 7. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 7 KfW Carbon Fund PoA Support Center Advice on: - Identification of pCDM opportunities; - Check with CDM requirements; - First economic assessment. Development of the PINs + PDDs - Technical support - Financial support Advice during decision-making progress  Dissemination of Information, Workshops and Publications “Blueprint book”
  • 8. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 KfW Carbon Fund KfW's PoA Support Center in LAC Feasibility study / PoA-DD under developement PoA Approach Country Managing Entity Type of Organization CER Potential PDD Consultant PoA SHP Central America Central America (5 countries) Grupo Financiero de Occidente commercial bank 500.000 South Pole PoA wastewater treatment at tequila industry (dairy, sugar and mescal under review) Mexico FIRA state-owned development bank 1.400.000 Ecosecurities PoA manure treatment and biogas utilization Mexico Financiera Rural state-owned development bank 1.500.000 MGM PoA SHP Mexico Mexico Banco Santander / Abengoa commercial bank / tech. provider 1.000.000 Zeroemissions PoA Energy Efficiency Mexico SENER ministry under review South Pole
  • 9. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 1. The KfW Carbon Fund 2. Carbon Finance Structures 3. Cooperation with financing institutions
  • 10. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 10 Advance payment Carbon Monetization Carbon Collateralization Structuring carbon equity
  • 11. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 KfW Carbon Fund Upfront Payments Financing Facility for Preparatory Measures • Costs in connection with the preparation of CDM projects (e.g. PDD, validation reports registration fees) can be financed. • Support can not exceed €100.000 for individual projects and €300.000 for POAs • Support is provided on a repayment basis plus 10% lump sum fee • Grants for PoAs (PIN and PDD development) Advance Payment for future receivables under ERPA • Upfront payments for a “secure” stream of CERs based on objective empirical data and expert opinion • No fixed repayment schedule but a discount rate on the purchase price that factors in security buffers for potential delays
  • 12. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 12 Carbon Monetization IFI SellerKfW Advance Payment Primary ERPA Guarantees Payment on delivery Sales ERPA KfW Promotional Loan
  • 13. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 13 Cabon Collaterization Banco Santander Eolia Renovables 324 MW Wind Farm KfW Carbon Fund 1 Loan agreementPayment on Delivery Emission Reduction Purchase Agreement 4,5 millions CERs 3 NEFCO 2 SERPA 4
  • 14. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 Carbon Collaterization - PoA Bos Bank (Poland) Interest Subsidy Fund Carbon payment KfW Carbon Fund Carbon credits 1,5 Million ERUs End Users (1000 JPAs)Loan Advice PoA Coordinator Redemption Interest subsidy Carbon title 1,5 Million ERUs Carbon credits Carbon revenues KfW (Global Loan Dept) Loan €30 million
  • 15. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 15 SPV – POA Managing entity $ Project Promoters 100% equity in Projects 50% Equity + $ O&M Agreement $ EPC Contract SPV Administrator $ CDM Consultant $CDM Development Senior Debt $ SPV Admin Contract $ 50% Equity Equity providers -Commercial Bank - Technology Provider -Development Bank Technology Provider Technology Provider National Development Bank Multilateral Financial Institution Carbon Buyer CERs $ Equity Carbon - PoA
  • 16. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 1. The KfW Carbon Fund 2. Carbon Finance Structures 3. Cooperation with financing institutions
  • 17. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 KfW Carbon Fund Cooperation with financial institutions  Inter-Cooperation with KfW branches (FC, DEG, IPEX)  Focus: Integrated financial solutions for carbon projects, maximizing both project output and revenues.  Challenges: structuring carbon as a reliable asset.  Cooperation with multilateral institutions (CAF, BCIE, IIC)  Focus: joint efforts to match better Sellers requirements, actions to promote carbon markets (TA).  Challenges: cooperation vs. competition, inter-department coordination.  Cooperation with national development banks (FIRA, FR, Bancomext, BNDES, COFIDE, BMI, etc)  Focus: national capital for carbon projects and promotional activities.  Challenges: carbon deemed as political goal itself rather than a reliable asset.  Cooperation with commercial banks (Banco Santander, Deutsche Bank, Grupo Occidente, Caixa, etc)  Focus: development of commercially attractive and bankable financial solutions for carbon projects.  Challenges: present carbon markets as a real challenges despite political uncertainties.
  • 18. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 Conclusions The role of a (development) financial institution at the carbon markets: ● Going beyond „payment on delivery“. ● Structuring capital at risk. ● Carbon futures receivable as security for (complementary) debt financing. ● Facilitating the involvement of domestic financial sector. ● Active participation in the development and implementation on domestic market – solutions.
  • 19. © KfW • KfW Carbon Fund • Frankfurt am Main • November 2010 Pablo Obrador Senior Project Manager KfW Carbon Fund KfW Bankengruppe Palmengartenstrasse 5 – 9 D-60325 Frankfurt Tel: +49-69-7431-4351 Fax: +49-69-7431-4775 carbonfund@kfw.de ¡Muchas gracias por su atención!

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