CENTRE FOR CLIMATE & SUSTAINABLE ENERGY FINANCE
PARTNERS
A COLLABORATION TO FACILITATE CLIMATE AND SUSTAINABLE ENERGY FINANCE Frankfurt School – the UNEP Collaborating Centre for Climate & Sustainable Energy Finance is a strategic cooperation between UNEP and Frankfurt School
Frankfurt School of Finance and Management (Frankfurt School) is a leading private business school based in Frankfurt am Main, with over 86 regional education centres spread across Germany and several joint ventures abroad. It is one of Germany’s foremost institutions of higher education with fulldegree awarding power. Frankfurt School advances and disseminates sustainable international business practices in finance and management through education, research, training and advisory services. Based on research and practical experience, the school educates its students and clients to be responsible experts and executives. Via its International Advisory Services (IAS) Frankfurt School implements consulting and training projects in emerging markets and developing countries. Its mandate is to build up and strengthen institutional capacities in the financial sectors of these countries. Historically, the IAS Compentence Centre “Sustainable Energy Finance“, has successfully implemented numerous energy efficiency and renewable energy projects worldwide, and notably provides technical support during the entire investment cycle. This includes project identification appraisal, implementation through operation, monitoring and evaluation of investment measures, as well as verification of energy savings and CO2 emission reduction. Close links to Frankfurt School’s academic programmes enable the team to draw on findings from the most up-to-date and latest research and provide tailor-made advisory to banks and financial institutions.
The United Nations Environment Programme (UNEP) is the designated authority of the United Nations system in environmental issues at the global and regional level. Its mandate is to coordinate the development of environmental policy consensus by keeping the global environment under review and bringing emerging issues to the attention of governments and the international community for current and future action. The support for low carbon and climate resilient development is at the core of UNEP’s climate change priorities, and links directly with the organization’s general political mandate where UNEP is charged with assisting developing countries in the implementation of the environmental dimensions of sustainable development. UNEP’s comparative advantage is in engaging industry, building capacities, and giving strategic advice and incentives to shift attitudes and help mainstream climate investment as an important complement to the broader financial mandates of the Multilateral and Bilateral Development Banks. Changing attitudes and helping mainstream financiers to consider climate-related and sustainable energy investments was the starting point for the UNEP Sustainable Energy Finance Initiative (SEFI). SEFI is being integrated into the new Frankfurt School - the UNEP Collaborating Centre.
THE CENTRE
A UNIQUE COMBINATION OF RESEARCH, EDUCATION & PROJECT IMPLEMENTATION Both partners recognize that the financial industry must play an important role in shaping the global response to climate change
CENTRE FOR CLIMATE & SUSTAINABLE ENERGY FINANCE Global warming is one of the most important challenges facing mankind. For decades to come, climate change will remain a fundamental challenge for both global and local economies and thus the financial industry in particular. The global consensus target of limiting global warming to 2°C above preindustrialized levels requires a substantial structural change in economies, and these structural changes require investments along a low-carbon growth path. In response to these needs Frankfurt School and UNEP have established the Frankfurt School – the UNEP Collaborating Centre for Climate & Sustainable Energy Finance (the Centre).
OUR VISION The Centre’s vision is to help develop and transfer cost-effective ways to reduce carbon emissions from existing energy supplies and use by mobilising and leveraging finance for climate and sustainable energy investments and strengthening of their associated markets.
ities, and the Centre’s staff conducts applied research and implements findings and instruments where they are most effective. Located in the financial heart of Germany, the Centre serves as UNEP’s main knowledge hub for sustainable energy and climate finance. It provides leadership in advancing policy-relevant knowledge about sustainable energy and climate finance. Through publications and policy discussions, workshops, seminars, training sessions and conferences, the Centre promotes innovative solutions to climate and sustainable energy finance. With the view to fostering long-term transformational change towards a low-carbon economy, the Centre’s work is designed to encourage and support the finance community in taking the first steps of active engagement - working with key actors in finance, government and industry to improve their capacities for mobilising investment in climate mitigation and adaptation technologies.
By working with the Centre’s established networks of financial institutions to develop and refine technical know-how, innovative financing approaches and new forms of entrepreneurial and end-user finance the Centre will enable a shift in the overall existing investment strategies to lowcarbon choices while minimizing investment risks. The Centre’s approach combines project implementation on the ground with think tank activ-
The Centre is located on Frankfurt School’s premises in Frankfurt am Main, Germany.
ACTIVITIES
THE CENTRE’S FIELDS OF ACTIVITY A strong link between applied research, information dissemination and successful project implementation maximizes the transformational power of the Centre’s work
The Centre’s mission is to facilitate private sector capital flow towards financing sustainable energy and climate change mitigation and adaptation around the globe. Our strength lies in integrating insights and research from stakeholders of various disciplines to help channel capital towards sustainable energy and climate finance. A range of activities organized in three different fields of action – Research, Education and Training and Project Implementation – also provides a platform of exchange for investors, financiers, policy makers and researchers.
RESEARCH Sustainable Energy Finance Summer Academy 2011.
The Centre combines academic research with an orientation towards practical applications in the form of concrete projects implemented on the ground. A key part of our research focuses on the consequences and impacts of policies and incentives on a macro scale – be it from carbon markets, feed-in-tariffs, policy-based financial incentives or the work of international institutions – for the investor’s financing decision. By linking our research activities with actual projects we provide results not only of interest to the private (and public) investor, but also to public policy. ”BRIDGING THE GAP BETWEEN INVESTORS AND POLICY MAKERS IS KEY TO BUILDING THE LOW-CARBON ECONOMY.” Ulf Moslener (Frankfurt School) Centre Head of Research
EDUCATION AND TRAINING Knowledge transfer is a crucial part of our work. We offer:
Tailor-made local and regional training and tools for financial institutions worldwide; Stakeholder consultations and workshops globally; Executive Education (Summer Academies, or two-year executive programmes); Specialized student courses within the Frankfurt School curriculum; Interactive learning through our E-learning platform;
PROJECT IMPLEMENTATION In addition to applying research results in the scope of the Centre’s educational activity, our experts implement them in projects. These projects are largely targeted at financial institutions, but also at governments and the industry. Our team offers solutions customized for the specific areas in which our clients operate.
IN ITS PROJECT WORK THE CENTRE:
Assists in developing products for different business segments; Assists in incorporating new types of finance into their product lines; Builds financial awareness and capacity through on-site and targeted training courses in energy finance; Promotes innovative finance delivery channels; Provides technical assistance to manage local investment funds; Prepares feasibility studies for sustainable energy finance in specific countries;
PLATFORM OF EXCHANGE The Centre’s website forms the basis of this platform as it:
functions as meeting point for our network; publishes our newest findings and developments in research; offers educational measures in shape of e-learning programmes and distance learning;
provides news and information on our latest projects;
www.fs-unep-centre.org
FIELDS OF ACTIVITY
RESEARCH
PLATFORM / OUTREACH
EDUCATION
PROJECT IMPLEMENTATION
In applying the continuum from research to project implementation the Centre builds a knowledgebase directly benefiting its partners and the wider community. This is supported by the dissemination of project results and lessons learned.
PROJECTS
MOBILISING FINANCIAL FLOWS INTO CLIMATE CHANGE SOLUTIONS By implementing and recording findings and instruments in the field where they are most effective we maximize our knowledge base to become a leading think tank SEED CAPITAL ASSISTANCE FACILITY (SCAF) SCAF helps clean energy entrepreneurs access enterprise development support and early stage seed capital financing from commercial energy investors. Entrepreneurs can transform markets, however the environment for entrepreneurship is poor in many developing countries, particularly in the energy sector. For new business ventures there is a lack of available entrepreneur support services and seed financing is hard to secure, with most investors reluctant to engage too ear“HELPING CLEAN ENERly. This means GY ENTREPRENEURS GAIN that even high ACCESS TO SEED FINANCING CAN QUICKLY SCALE potential renewUP EARLY GROWTH OF able energy and THESE SECTORS.” energy efficiency sectors develop Eric Usher slowly. The two (UNEP) Project Manager for largest challengSCAF es that investors face in providing seed capital financing to early stage projects and companies are the higher transaction costs and increased risks of these small, less mature business ventures. The SCAF facility is designed to address these two hurdles, offering clean energy investment funds two types of cost-sharing support for those willing to include a seed window within their overall investment strategy. www.scaf-energy.org
NATIONAL CLIMATE FINANCE INSTITUTIONS SUPPORT PROGRAMME (NCFISP) Developing countries are exploring ways to access and manage finance for climate mitigation and adaptation activities via emerging funding channels. With the country-driven approach in mind, some of these countries are already establishing or operating “national funding entities” and institutions to address finance needs with the objective to mobilize private investment. The National Climate Finance Institutions Support Programme provides a experience and information exchange for the purpose of helping domestic financial actors build institutional capacities and skills to be able to facilitate increased investment in climate mitigation and adaptation activities. For countries planning new climate finance institutions the Programme will provide demanddriven hands-on technical support that includes building capacity to access climate finance and piloting new finance approaches.
financing), capacities of local cooperation partners, and most appropriate support mechanisms.
CLIMATE FINANCE INNOVATION FACILITY (CFIF)
Centre staff members at an on-site visit for CFIF.
FINANCE FOR ACCESS TO CLEAN ENERGY TECHNOLOGIES IN SOUTHEAST ASIA (FACET) Access to modern, clean energy is essential to improve overall living conditions. However, many Southeast Asian households cannot afford to purchase clean energy technologies. While financing is generally needed, many financial institutions have not yet realized these new credit opportunities. The FACET project aims at mobilizing financial access to clean energy by combining temporary financial support mechanisms (e.g. interest rate softening, partial guarantees) with technical assistance and capacity building measures. The UNEP/FS team is currently assessing the feasibility of individual country programmes in terms of market potential (clean energy technologies,
The Climate Finance Innovation Facility (CFIF) supports finance-industry engagement in the new climate sectors such as renewable energy (RE), energy efficiency (EE) and sustainable forestry. The Facility provides developing country financial institutions with technical assistance and funding for the development of climate focused financial products and services. A broad range of activities are eligible for support, ranging from feasibility studies, to market assessments and legal reviews. The overall aim of CFIF is to help mobilise a scaling up of financial flows into climate change solutions. More broadly, by encouraging early action within the finance community, the facility helps cultivate on-theground leadership amongst financial actors that can have replication effects across markets and geographies. www.climate-finance.org “WE SUPPORT INNOVATION IN CLIMATE FINANCE AND SUSTAINABLE ENERGY FINANCE.� Jan G. Andreas Senior Project Manager CFIF
UNEP Collaborating Centre Frankfurt School of Finance & Management Sonnemannstrasse 9–11 60314 Frankfurt am Main www.fs-unep-centre.org Projects: Jan G.Andreas Senior Project Manager j.andreas@fs.de Tel.: +49 (0) 69 154008-626 Fax: +49 (0) 69 154008-670 Coordination Marketing, Communications and PR: Sabrina Heckler Project Assistant s.heckler@fs.de Tel.: +49 (0) 69 154008-604 Fax: +49 (0) 69 154008-670 Research and Education: Prof. Dr. Ulf Moslener Head of Research u.moslener@fs.de Tel.: +49 (0) 69 154008-831 Fax: +49 (0) 69 154008-4831