The document discusses the Asia-Pacific Carbon Forum 2016. It outlines some of the challenges to mobilizing climate finance in the region, including a lack of appropriate financing instruments for long-term projects, information asymmetry between lenders and borrowers, and a lack of analytical capacity to assess climate-related credit risks and asset valuations. It also provides data on funding proposals approved by the Green Climate Fund, including the total amount, number of projects, and breakdown of funding by public versus private sources. Finally, it raises the question of whether the Green Climate Fund is ready to help address some of the knowledge and policy barriers to mobilizing more climate finance in the region.

1. Asia-Pacific Carbon Forum 2016

2. 2Asia-Pacific Carbon Forum 2016
Perspective…

3. 3Asia-Pacific Carbon Forum 2016
Aim …
Source: Decisions of the Board – Eleventh meeting of the Board, 2 – 5 November 2015
Source: Bowen (2011), Raising climate finance to support developing country action
- some economic considerations, Climate Policy, 11:3, 1020-1036.

4. 4Asia-Pacific Carbon Forum 2016
Challenges…
Banking Bond market
Institutional
investors
Externalities Inadequate compensations for positive externalities
Inadequate penalties for negative externalities
Inadequate price signals
Maturity mismatch Lack of appropriate financing instruments for long-term projects
Lack of clarity in
green definitions
Lack of green loan
definition
Lack of green bond
definition
Lack of green asset
definition
Information
asymmetry
Lack of info on
borrowers;
excessive risk
aversion
Lack of info and
monitoring on use
of proceeds
Lack of info on
assets
(environmental
impacts and risks)
Lack of analytical
capacities
Lack of capacity to
assess impact on
credit risk
Lack of capacity to
assess impact on
credit risk
Lack of capacity to
assess impact of
asset valuation
Source: G20 Green Finance Synthesis Report

5. 5Asia-Pacific Carbon Forum 2016
InvestmentFramework …
Source: Decisions of the Board – Eleventh meeting of the Board, 2 – 5 November 2015
Amount
(in million USD)
No. of Projects
Ave. Amount
(in million USD)
Instrument
Total (A) 424.3 17 25.0
Public 328.3 14 23.5 Grant
Private (B) 96.0 3 32.0 Equity, Guarantee, Loan
Weight (B/A) 22.6% 17.6%
Funding Proposals Approved by the Board of GCF

6. 6Asia-Pacific Carbon Forum 2016
Return …
Source: Consideration of funding proposals – Addendum 09 Funding proposal package for FP017

7. 7Asia-Pacific Carbon Forum 2016
Risk …
Source: Consideration of funding proposals – Addendum 09 Funding proposal package for FP017
Is the GCF ready for improved knowledge sharing, capacity building, stronger policy
signals and improved clarity in definitions of climate finance activities?

8. 8Asia-Pacific Carbon Forum 2016
Intermediaryof Last Resort …
Taking risk … Reducing transaction cost … Sending price signal …

9. Asia-Pacific Carbon Forum 2016
Thank You for Your Attention
Economic Program Evaluation Division
Director, Ick Jin (realwing@assembly.go.kr)
Senior Analyst, Yunhee Kim (yunhee.kim@assembly.go.kr)