Japan’s efforts in introducing nextgeneration projects and innovative
business models throughthe Green Climate Fund
7 November 2017 @ Japan Pavilion

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Contents
 Opening remarks (5 min)Mr. Ryuzo Sugimoto, the Ministry of the Environment, Japan
 Keynote speeche (15 min)
“Perspectives for enhancement of GCF project/programme development” (TBC)
Mr. Alastair Morrison, GCF Secretariat
 Panel discussion (50 min) Facilitator: OECC “Development of next generation GCF projects:
Essential elements for defining a paradigm shift and introducing innovative
business/financial models”
Framing presentation (10 min) Enhancement of capacities: Access to GCF finance anddevelopment of next generation projects” Mr. Makoto Kato, OECC
Panel discussion (40 mins):
GCF secretariat. AEs (FAO, SPREPS. JICA), NDAs (Maldives, Mongolia), GCF board member
 Q&A session (20 mins):
Light refreshment will be served after the event

2Opening remarks

Mr. Ryuzo Sugimoto,
the Ministry of the Environment, Japan

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Keynote speech

Mr. Alastair Morrison, GCF Secretariat
Perspectives for enhancement of GCF
project/programme development”

4Framing presentation:
Development of next generation GCF projects:
Essential elements for defining a paradigm shift
and introducing innovative business/financial
modelsEnhancement of capacities:
Access to GCF finance and development of next
generation projects
5Programme on facilitation of project
development utilizing the Green Climate
Fund in JFY2017
 Fund: the Ministry of the Environment, Japan Aim:• Facilitation of GCF project development• Building sufficient capacities to develop concept note/funding
proposalCountry
programmeResults &learning

Entityprogramme

 How?
Basic survey on access to GCF
MUMSSStudy Group on access to GCF
finance

Capacity-building support for next
generation project development

Project
implementation

Pipelinedevelopment
Funding
proposals

Information dissemination and CB
support on access to GCF

MUMSS6

Overviews of GCF activities
Investment criteria
 Since 2015, 58 GCF projects/programmes are approved 8 strategic results area 6 Investment criteria
 59 AEs, 144 NDAs/focal points

Impact potential•Potential to contribute to achievement of Fund's objectives and result areas

Paradigm shift potential•Long‐term impact beyond a one‐off investment

Sustainable development
potential

strategic results area

•Wider economic, environmental, social (gender) co‐benefits

Country ownership•Country ownership and capacity to implement (policies, climate
strategies and institutions)

Efficiency & effectiveness•Economic and, if appropriate, financial soundness, as well as costeffectiveness and co-financing for mitigation

Responsive to needs of recipients•Vulnerability and financing needs of beneficiary
7 in targeted groupLesson and Challenges identified by GCF secretariat
Focus on climate results

Clear benefits in terms of emission reductions (e.g. substitution of fossil fuels) or improving theresilience of infrastructure or livelihoods against climate change

Transformative and innovative

Using innovative financing models, technical solutions, improving regulatory framework, or
allowing projects that could not happen

Creating an enabling environment

Creating a regulatory framework conducive to public and private sector investment is key toachieving transformational outcomes.
• Laws and policy,• regulatory bodies,• contracts,• incentives (subsidies, tax breaks…)
Provision of cofinancing by other donors, Government or local private partners
Concessionality benefitting final userse.g. accessing cheaper loans, lower electricity tariffs

8Investment Criteria – Attention Points
Viability and Sustainability

Efficiency and effectiveness• Is the proposal
economically andfinancially sound?

• Impact vs funding (e.g.
$/tCO2)• Can results besustained after GCF
funding ends?

• Justification forproposed financial
instrument and funding
amount• Is there a plan andbudget for operations
and maintenance?

• Co-financing andcrowd-in additionalsource of financing

Climate Impact Potential•

Is the linkage to climatechange relevant, clearand strong?

•Is the methodology tocalculate emission
reductions robust?

•Is there a strong
justification forincreased resilience,
based on evidence ofclimate impacts?
9Development of next generation GCF projects:
Essential elements for defining a paradigm shift
and introducing innovative business/financial
modelsIdentify current barriers and challenges in country environment
Find essential element to overcome the barriers

Engage key stakeholders
Confirm sustainability
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Paradigm shift

Image of a “next generation project” withimpact/paradigm shift potentials…..
Case of Global Mobility Service Philippines

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Ref: GMS overseas business model http://www.global-mobility-service.com/en/service/domestic.html

Capacity-building support for next
generation project development
 Training Programme on Developing Project Proposals for Climate Change
Date: 10 days training program in January - February 2018
Place: SE asia
Training content:
Module 1 – Understanding GCF operations from a project development point of view;
Module 2-4 – Developing a GCF Project Concept note by Elaboration of a logical framework, defining result areas and choosing a suitable
Accredited Entity;
 Complying with the GCF Investment Framework; Elaboration of implementation arrangements, ensuring stakeholder engagement,complying with regulatory requirements, and carrying out risk analysis
Module 5 – Developing next steps (road map)
 Tailored mentoring services
 Individual online support Desk
 Knowledge product Webinar on special topics on proposal development

12Panel discussion
Development of next generation GCF projects:
Essential elements for defining a paradigm shift andintroducing innovative business/financial models
 Accredited Entities
Mr. Espen Ronneberg, SPREPMr. Ichiro Sato, JICA
Mr. Nicholas Ross, FAO (TBC) National Designated Authorities
Mr. Amjad Abdulla (Maldives)
Mr. Batjargal Zamba (Mongolia)
 GCF Board
Ms. Diann Black-Layne (TBC)

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Panel discussion
Guiding question part 1
1. Given more than 50 projects approved, how do you evaluate this developmentby the GCF so far?
2. In order to take one step forward for a paradigm shift, what kind of aspectshould we take account in project design? (e.g. modes of finance, proposing a
new business models, involvement of stakeholders and partners etc.)
3. Some GCF Board members and relevant key stakeholders expressed concernsthat many of the approved GCF projects do not fully meet the requirement todemonstrate a paradigm shift potential. What should be done by the GCF
community and other interested parties to rectify this situation?
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Panel discussion
Guiding question part 1

1.Given more than 50 projects approved,

how do you evaluate thisdevelopment by the GCF so far?
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Panel discussion:
Guiding question part 2
4. How do we ensure a value-added climate actions by mobilizing the GCF
finance?
5. What should be done to ensure that a paradigm shift or a transformationalchange induced by a GCF project is sustainable and long-lasting and it will not
be reverted upon the project completion?
6. The GCF Governing Instrument stipulates that “…the Fund will promote theparadigm shift towards low-emission and climate-resilient developmentpathways”. What are the key differences between such a paradigm shift andtraditional climate change adaptation and mitigation projects?
16Thank you for your attentions!
Contact information
OECC:
Makoto Kato (kato@oecc.or.jp)
Emiko Matsuda (matsuda@oecc.or.jp)
AIT/RRC.AP:
Alla Metelitsa (Alla.Metelitsa@RRCAP.AIT.ASIA)
Lyan Villacorta (Lyan.Villacorta@RRCAP.AIT.ASIA)

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