Presentació de Sonia Medina, Directora de Canvi Climàtic. Children’s Investment Fund Foundation en el marc del Side Event “Practical approach to climate finance" organitzat per l'Oficina Catalana del Canvi Climàtic i ACCIÓ de la Generalitat de Catalunya durant la Carbon Expo 2015

1. ciff.org
Practical approach to climate finance
View from the donors: CIFF´s experience
Side event, Carbon Expo
Sonia Medina, Director, Climate Change, The Children’s Investment Fund Foundation
28th May 2015 1

2. Total levels climate investment is not enough to limit temperature increase to 2°C
2
Sources: Climate Policy Initiative, 2014; World Economic Forum, 2013; OECD DAC, 2013; Joint Report on MDB Climate Finance, 2014
Domestic
development
banks, 69
Bilateral
flows; 14
Others; 11
Other
multilateral
flows; 24
Multilateral
development
banks; 19
25%
23%
15%
22%
4%1%
10%
Renewable energy
Energy efficiency
Other energy
Transport
Land Use
Waste and water
Cross cutting
17%
12%
14%
17%
11%
26%
3%
EU
Latin America
Africa and
Middle East
East Asia and
Pacific
South Asia
Non EU Europe
and Central Asia
Regional
Public climate finance has better data available. Bilateral and
multilateral finance is concentrated in renewable energy and
energy efficiency. Africa and South and Central Asia receive
most bilateral climate finance, while Eastern Europe and
Central Asia receive most multilateral climate finance.
by region
by sector
6%
19%
29%15%
31%
Europe
Latin America
Africa and
Middle East
East Asia and
Pacific
South and
Central Asia
30%
25%
13%
9%
23%
Transport and
storage
Energy generation
and supply
General
environmental
protection
Land use
Other
Public:
$137bn
Private:
$193bn
PUBLIC CLIMATE
FINANCE:
$137bn
Bilateral
climate
finance: $14bn
by region
by sector
Multilateral
DB climate
finance: $19bn
• Bilateral figures from OECD DAC include the full value of interventions tagged with climate change mitigation both as a
‘principal’ and as a ‘significant’ objective.
• Multilateral Development Banks – a group comprising AfDB, ADB, EBRD, EIB, IDB, WB fand IFC – figures identify the climate
component of projects only.
• Other multilateral flows include other regional development banks and the EIB financing for ‘old ‘EU member states.
• Other public climate finance sources comprise direct public contributions from government agencies and ministries and
national and multilateral climate funds.
• CPI estimate that an additional $60bn of domestic climate finance is provided by government budgets (not included here).
Private climate finance is poorly understood – the figures
here include renewable energy investment only.
$331billion
Global climate finance in 2013
$5-6 trillion
Needed for energy sector alone through 2020.

3. Capital is available, it just needs to be unlocked
3
There a number of key barriers to private sector investment:
• Viability / cost gap: Green technologies cost more and have lower
returns
• Knowledge gap: Developers, investors and users do not understand
the opportunities
• Risk gap: Investors perceive a range of risks in green investments, and
not all risks are covered by existing risk coverage

4. CIFF’s Climate Change Strategy aims to accelerate high value decarbonisation
by supporting and replicating large-scale leadership efforts
Mission:
• Recognising that children living in poverty in developing countries have the greatest vulnerability to climate
change, CIFF aims to accelerate high value decarbonisation by supporting and replicating large-scale
leadership efforts.
Purpose:
• Demonstrate that ambition in tackling climate change is politically and economically feasible and desirable.
Approach:
CIFF’s focus on ambition implies the following:
• We are not seeking incremental improvements, we are seeking systems change
• We start by backcasting from where we need to be in 2050, not by forecasting from where we are today,
so that we can escape inertia and change trajectory
• We have a high appetite risk where we think we can deliver transformational impact
Large-
scale
leadership
efforts
Accelerate
action
High value
decarbonis
ation
CIFF’s climate strategy emphasises an ambitious, high-risk,
cutting edge approach to achieving systemic change 4

5. Climate philanthropy is only <0.1% of total climate finance:
At $0.3bn, the large climate philanthropies comprising the Funders
Table are a rounding error!
However, philanthropy is uniquely positioned to help
address the climate finance gap by pulling powerful finance
levers that other stakeholders cannot.
Philanthropy can therefore use its relatively small resources
to play a catalytic role to create transformational change by:
• Opening pools of capital
• Being a catalyst to climate policy
• Helping to speed up innovation
• Motivating finance ministers
5
Philanthropy is a tiny fraction of climate finance, so why can CIFF and other
funders help to overcome these barriers and unlock vital climate finance?
Public finance: is
addressing some gaps but
lacks innovation,
appropriate tools, speed,
and sometimes “crowds
out” private capital.
Philanthropy: can test
innovative approaches,
take risks, be nimble and
react quickly to windows
of opportunity, and is an
honest broker that is not
politically driven.

6. 6

7. Transformational change requires interventions throughout the value chain:
Enforcement

8. Transformational change requires interventions throughout the policy-making
process:
Enforcement
Leverage

9. Research-based
advocacy
16%
Technical
Assistance
17%
Advocacy
7%Collaborative
research and
technical
assistance
27%
Global leverage
6%
Litigation
5%
Research
>1%
Regranting
22%
CIFF’s climate programme ($155m) has primarily funded technical assistance
and research- based advocacy with NGOs
NGO
80%
NGO - private
sector
partnership
12%
Government
partnership
8%
Government
>1%
Approved funds
by grantee
category
Approved funds
by primary
intervention type
European Climate Foundation
2008-15; $44m
Latin American Regional
Climate Initiative
2012-15; $4.1m
Client Earth
2014-17;
$11.5m
C40 Cities Climate
Leadership Group
2011-16; $12.6m
HFCs Campaign
2009-17; $13.9m
2015 Strategy: Climate
Briefing Service &
Climate Justice
2014-15; $1.4m
China Air Quality
2014-17; $9.2m
China Carbon
Pricing
2012-18; $20.3m
China Grids
2014-19; $12.8m
Mobility Brazil
2015-18; $9.8m
Reconciling food
production and
forest protection
in Brazil
2015-18; $9.9m
China Sustainable
Cities Program
2012-20; $33.2m
21CPP Mexico
2014-17; $4.4m
2015 Strategy: UNSG
2014-15; $0.6m
21CPP Mexico
2014-17; $4.4m
China Grids
2014-19; $12.8m 2015 Strategy: UNSG
2014-15; $0.6m
China Carbon Pricing (Phase 2)
2015-18; $17.4m
Reconciling food production
and forest protection in Brazil
2015-18; $9.9m
All other grants
2008-19; $179.6m
Recent investments have increasingly emphasised
‘actionist’ interventions and partnerships with
government and the private sector
2015 Strategy:
Deep
Decarbonisation
& Evaluating
National Offers
2014-15; $3.7m
CDP
2014-17; 6.8m
China Coal Cap
2013-16; $8.8m
Mitigation
Action Plans &
Scenarios
2010-16; $17.0m
China Coal Finance
2014-15; $0.3m
9

10. Case study
Climate finance for Cities: CIFF’s role
10
Philanthropy can help to create an enabling environment that encourages private
sector investment in urban infrastructure
Intervention opportunities for philanthropy:
Support for cities to prepare projects for
investment, including the development of a
pipeline of low carbon infrastructure and climate
smart investment plans
Helping to secure access to capital, including
international climate finance and power to raise
capital at the city-level (e.g. take on debt and issue
bonds)
Increasing cities credit worthiness: improving
access to private capital by demonstrating that cities
are unlikely to default on their debts
Development of innovative financing
mechanisms: to attract large sale institutional
investors to finance city climate investments
Existing CIFF programme
Credit worthiness in cities with C40
Aim: to tackle barriers relating to investor confidence in cities, lack of
bankable projects, and investor bias to least cost projects.
Approach:
• training for 20 cities on climate –smart capital investment planning
• technical assistance to 8 cities to gain a credit rating
• Encourage sharing of best practice
• re-shape city investment projects to make them bankable
• promote assessment of co-benefits in investment decisions, not just low
cost
• Research to develop infrastructure finance exchanges that provide
better product offerings for cities
The world bank estimates that ʺevery dollar invested in creditworthiness of
a developing county is likely to mobilise more than US $100 in private
sector financing for low-carbon and climate resilient infrastructure”
Programme-Related Investments (in pipeline)
Example: seed-fund or guarantee first loss in a green infrastructure fund
dedicated to cities