CTI side event at the UNFCCC 34th meeting of the Subsidiary Bodies (SB34)

<Details>"The CTI’s objective is to promote more rapid development and diffusion of climate friendly and environmentally sound technologies and practices. In order to achieve the objective, the CTI works closely with the UNFCCC Secretariat, the private sector as well as various governmental and intergovernmental agencies such as UNEP and UNDP. The CTI was deeply involved in the consultative process which led to the development and formulation of the UNFCCC technology transfer framework, and supported various activities of the Expert Group on Technology Transfer. Since 2002, the CTI has been sponsoring and supporting capacity building workshops on the preparation and sharing of best practices for Technology Needs Assessments (TNA), including the one held on 1-2 June 2011. The CTI also contributed expert input on preparing project proposals for private sector financing during and after the UNFCCC Workshops on Innovative Options for Financing the Development and Transfer of Technologies held in 2004 and 2005, which led to the launch of the Private Financing Advisory Network pilot programme in 2005." 

<Details>"Among various issues associated with financing of renewable energy (RE) projects, well-established government policies and regulations are essential in mitigating the risks and fostering enabling environment. The other issues include high upfront capital costs and low capacity factor during operation, relatively low return, credit risks of off-taker, and intermittent resource. The business due diligence factors that need to be addressed before involving private sector financing for RE projects include market analysis, engineering verification, corporate governance, environmental and social safeguards, in addition to financial and legal aspects. Simply attending a workshop or taking a training course would not be sufficient to prepare a proposal that incorporates all these conditions to make private capital flow. Therefore it is key to involve credible advisors and co-sponsors who understand the intricacy of private sector financing, and to engage them in stakeholder consultation processes. According to the IEA, in order to fulfill the current energy needs of developing countries it requires USD 46 trillion of investment which can hardly be assumed by public funding alone. The governments need to focus on mitigating risks that the market cannot assume at a reasonable cost by providing early project preparation support in order to allow the private sector to come forward. In order to move projects efficiently through development stages to implementation, experienced advisors should be engaged at an early stage. The Public Private Partnership (PPP) should be viewed as a tool available to serve the policies of governments, not a replacement for good public financial policies. " 

<Details>"CTI PFAN is a network of experienced investors and consultants who provide professional guidance to the project developers in addressing barriers identified and helping them raise necessary financing for their clean energy projects. CTI PFAN is a multilateral initiative offering free project development consultancy and investment matchmaking services to project developers. Besides the funding being provided by the sponsors, the CTI PFAN network members, currently numbering over 40, contribute to the CTI PFAN programme by providing their services at a discounted rate which is one of the unique features of the programme. Introduced recently is a concept of success fees to be charged upon successful financial closing and be shared between the programme and the involved consultants, which would provide further incentive for the consultants to stay involved in the programme as well as eventually enable the programme provide support to additional number of projects in a sustainable manner. CTI PFAN is technology neutral, i.e., the technology employed in the projects supported by the programme may come from any source or country. CTI PFAN currently has regional networks in Latin America, Asia and Africa with further expansion planned in Central America and Caribbean, West Africa, CIS and Central Asia during 2011-12."

"CTI PFAN is working on 116 projects representing USD 2.6 billion of required investment with over 5.5 million tonnes of CO2 equivalent reduction potential per annum. CTI PFAN has successfully raised USD 369 million of investment for 28 projects representing 280MW of clean capacity installed, 94.5GWhrs of energy savings, and 1.7 million tonnes of CO2 equivalent reduction per annum. Further to this, five more projects are currently under negotiations with investors. During 2010, seven Financing Fora have been organized in various regions attracting 1,100 participants in total and CTI PFAN helped 13 projects reach financial closure raising USD 168 million of investment."

"One of the benefits that CTI PFAN could bring to the mechanism under the Convention process is a “filtering role” to identify projects with commercial aspects and take them out of the public sector process at an early stage to guide them to private sector financing. In this respect CTI PFAN is currently working with UNEP and selected countries from the Poznan Strategic Programme process. By applying the methodology and resources available through the private sector knowledge, CTI PFAN could help developing country Parties in taking projects emerging from their TNA processes and identifying projects capable of raising private sector financing, and work with them to raise private sector financing."

<Details>"CTI PFAN will determine whether it is possible to utilize the same methodology and / or adjust it to be a successful tool for adaptation related projects as well as to identify features of adaptation projects that would make them suitable for private sector financing. CTI PFAN will start working with a number of selected adaptation projects to examine if it is possible to go through the same development process involving private sector and bring those projects through to financial closing. A position paper that will provide a guide to adaptation for the uninitiated, will be published, which will feed into an adaptation and financing workshop to be held in late August or September 2011. The workshop will convene the stakeholders from public and private sectors to investigate and address the questions concerning adaptation related projects. Towards the end of 2012, CTI PFAN will report back on this adaptation process through a recommendation paper, which will form a basis for designing and launching a PFAN scale-up programme for adaptation related projects."