IFC – Canada Climate Change Program

 

 

 

The IFC-Canada Climate Change Program, established in 2011, is a partnership between the Government of Canada and IFC to promote private sector financing for clean energy projects, through the use of concessional funds to catalyze investments in renewable, low-carbon technologies that would not otherwise happen.

 

The program, managed by IFC, received $291.6 million Canadian dollars from the Government of Canada, as part of Canada’s $1.2 billion Canadian dollars contribution to the Copenhagen Accord fast-start financing to support climate change action in developing countries. Additional CN$60.3 million were contributed in 2013 as part of Canada’s investment in the IFC Catalyst Fund.

 

The program’s funds, invested at concessional, or below market, terms are blended alongside IFC’s own funds to enable climate change investments that would not otherwise happen, due to market barriers preventing sponsors or other financiers from making those investments, and aims at demonstrating the viability of similar projects that can later be financed on fully commercial terms.

 

A portion of the program funds is also used to fund advisory services work to build local capacity, fill information gaps in the market, and enable countries to adopt regulatory and business environments that encourage the private sector to invest in renewable energy, energy efficiency, and cleaner technologies.

 

Status of the Program:

 

The IFC-Canada Climate Change Program: June 2016 Donor report, provides an overview of the program’s activities and results. 

As of end-October 2016, IFC has approved the use of some US$180 million to support 19 active investment and 20 advisory services projects, which are expected to leverage US$1.2 billion from IFC’s core funding, other multilateral development banks and the private sector. In addition, US$76.5 million have been invested in the IFC Catalyst Fund.

 

Investment projects:

 

Project

Country

Project Cost (million)

Sustainable Energy Finance

SasFin EE

South Africa

US$ 10

Atlantida Loan

Honduras

US$ 50

HSBC Bank Armenia

Armenia

US$ 30

Credins Bank EE/RE

Albania

US$ 5

Fransabank 

Lebanon

US$ 10

Lebanese LC

Lebanon

US$ 3

Fransabank Tranche II

Lebanon

US$ 20

Lebanese LC Tranche II

Lebanon

US$ 7

Unicredit Mostar

Bosnia and Herzegovina

US$ 6

Renewable Energy

La Huayca II

Chile

US$ 67

Kabeli

Nepal

US$ 100

BMR Wind

Jamaica

US$ 90

Arpico Retail

Sri Lanka

US$ 20

FRV Solar Jordan

Jordan

US$ 85

Thomas Lloyd RE

Philippines

US$ 192

Green Buildings

 

 

Urbi Verde I

Mexico

US$ 105

Housing Finance Bank

Kenya

US$ 108

Energy Efficiency

 

 

TICO

Ghana

US$ 360

Sisecam

Bosnia and Herzegovina

US$ 70

Private Equity

 

 

IFC Catalyst Fund

Global

US$ 418

Total Investments

 

US$ 1,756

 

 


 

Advisory projects:

 

Project

Country

Project Cost (million)

Solid Waste Management

Kampala Solid Waste

Uganda

US$ 1.3

Albania Solid Waste

Albania

US$ 0.6

Belgrade W2E PPP

Serbia

US$ 0.7

Sustainable Energy Finance

Bancatlan Sustainable Energy Finance

Honduras

US$ 0.1

MENA SEF

MENA

US$ 2.0

Energy and Resource Efficiency Solutions in Africa

Sub-Saharan Africa

US$2.4

Partnership for Cleaner Textiles

Bangladesh

US$9.8

Renewable Energy

Nygak III Mini Hydro PPP

Uganda

US$ 1.1

Thailand Clean Energy Development

Thailand

US$ 1.8

Orissa Rooftop Solar

India

US$ 0.5

Gujarat Solar

India

US$ 0.7

Odisha Solar PPP

India

US$ 0.5

Nepal Sustainable Hydropower

Nepal

US$2.0

Lighting Africa Nigeria Program

Nigeria

US$5.0

Lighting Pakistan

Pakistan

US$3.9

Green Buildings

 

 

Green Buildings Product Development

Global

US$ 4.3

Energy Efficiency

 

 

Brazil Hotels Energy Efficiency (Pro-Hoteis Program)

Brazil

US$ 0.8

ECA Energy & Water Solutions for Corporates

Europe and Central Asia

US$4.4

Adaptation

 

 

Climate Risk Management

Global

US$ 1.0

PPCR Nepal Agri

Nepal

US$2.5

Total Advisory Services

US$ 45.3

 

 


 

The program is funding three investment and four advisory projects in Africa:

 

TICO

Loan to expand a gas-fired power plant in Ghana by 50%, without additional fuel consumption, through waste heat recovery technology.

 

Housing Finance Company

Loan to support Housing Finance Company, a Kenyan mortgage and housing development finance bank, enter the country’s emerging green housing market.

 

Sasfin EE

Loan to South Africa’s Sasfin Bank to support the development of a sustainable energy financing business.

 

Nyagak III Mini Hydro PPP

Advisory services to help the Uganda Electricity Generation Company conduct a bidding process to build the Nyagak small hydropower plant in the rural West Nile region of Uganda.

 

Kampala Solid Waste

Advisory services to support the city authority in Kampala, Uganda in implementing an integrated solid waste management project.

 

Energy and Resource Efficiency Solutions in Africa

Advisory services to catalyze the uptake of resource efficiency and clean energy solutions in companies across the manufacturing, agribusiness and services sectors in select African countries.

 

Lighting Africa Nigeria Program

Advisory services to catalyze the development of a commercially viable market for clean, modern and affordable off-grid energy products serving consumers at the base of the pyramid in Nigeria.

 


 

 

The program is funding one investment and one advisory project in East Asia:

 

Thomas Lloyd RE

Loan to support the development of two biomass power plants with 45MW combined capacity in the Philippines, the first facility worldwide to use sugar cane trash as feedstock.

 

Thailand Clean Energy Development

Advisory services to assist the government of Thailand in implementing solar and wind energy policies that would encourage private sector investment in the solar and wind energy sectors.

 


 

The program is funding two investment and seven advisory projects in South Asia:

 

Kabeli-A

Loan to finance a 37.6MW run-of-river hydropower plant in Nepal.

 

Arpico Retail

Loan to support the installation of rooftop solar PV panels and implementation of green building measures on a chain of 18 supermarkets in Sri Lanka.

 

Gujarat Solar

Advisory services to assist the Government of Gujarat, India in developing a rooftop solar project in five cities.

 

Orissa Rooftop Solar

Advisory services to assist the Government of Odisha, India in the implementation of a grid connected megawatt scale rooftop/distributed solar power project.

 

Odisha Solar PPP

Advisory services to assist the Government of Odisha, India in the structuring and implementation of a PPP transaction to develop a 40-60MW solar park.

 

PPCR Nepal Agri

Advisory services to support smallholder farmers to adopt climate resilient practices in Nepal, such as water management and improved resilient seed varieties.

 

Nepal Sustainable Hydropower

Advisory services to assist the Government of Nepal in building a pipeline of bankable hydro power projects in the country.

 

Partnership for Cleaner Textiles

Advisory services to enhance the long-term competitiveness and sustainability of the Bangladeshi textile’s sector through implementation of energy efficiency measures.

 

Lighting Pakistan

Advisory services to increase access to modern and clean energy services for lighting and associated services in Pakistan.

 


 

 

The program is funding four investment and three advisory projects in Europe and Central Asia:

 

Sisecam

Loan to support energy efficient investment in heavy industry in Bosnia through renovation and equipment upgrades.

 

HSBC Bank Armenia

Loan to HSBC Bank Armenia to support the development of a sustainable energy financing business.

 

Credins Bank EE/RE

Loan to Albania’s Credins Bank to support the development of a sustainable energy financing business.

 

Unicredit Mostar

Loan to Bosnia’s Unicredit Mostar Bank to support the development of a sustainable energy financing business.

 

Albania Solid Waste

Advisory services to assist the municipality of Tirana, Albania in the structuring and implementation of a PPP transaction to improve waste management services.

 

Belgrade W2E PPP

Advisory services to assist the City of Belgrade, Serbia in the structuring and implementation of a PPP transaction for waste treatment and waste disposal services.

 

ECA Energy & Water Solutions for Corporates

Advisory services to catalyze uptake and increase investment in energy and water efficient solutions in companies and municipalities in Eastern and Central Asia to increase productivity and competitiveness.

 


 

 

The program is funding four investment projects and two advisory projects in Latin America:

 

BMR Wind

Loan to finance the development of a 36.3MW wind farm, the first renewable IPP developed by the private sector in Jamaica.

 

La Huayca II

Loan to finance expansion of the first merchant solar photovoltaic plant from 1.4MW to 30.5MW in Chile.

 

Urbi Verde I

Loan to Urbi, one of Mexico’s leading homebuilders, to support the installation of solar photovoltaic technology in energy efficient low-income housing.

 

Atlantida Loan

Loan to local financial intermediary in Honduras to support lending to small-scale renewable energy and energy efficiency projects.

 

Bancatlan Sustainable Energy Finance

Advisory services to support Banco Atlantida in Honduras develop its capacity to identify, analyze, and finance sustainable energy projects. This project will complement the sustainable energy credit line also provided to Banco Atlantida.

 

Energy Efficiency in Hotels/Pro-Hotels Program

Advisory services to develop the energy-efficiency market in the Brazilian hotel sector by stimulating the growth of Energy Service Companies and by supporting hotels committed to reducing energy consumption.

 


 

 

The program is funding five investment projects and one advisory project in Middle East and North Africa:

 

Fransabank

Loan to Fransabank to support the development of a sustainable energy financing business in Lebanon.

 

Fransabank Tranche II

Follow-on loan to Fransabank to support the development of a sustainable energy financing business in Lebanon.

 

Lebanese LC

Loan to the leasing arm of Frasabank Group, Lebanese Leasing Company, to support the financing of sustainable energy projects to corporate and SME clients.

 

Lebanese LC Tranche II

Follow –on loan to the leasing arm of Frasabank Group, Lebanese Leasing Company, to support the financing of sustainable energy projects to corporate and SME clients.

 

FRV Solar Jordan

Loan to support the construction of a 50MW solar PV power plant in Jordan at one of the most competitive solar PV tariffs in a developing country.

 

MENA SEF

Advisory services to catalyze sustainable energy investments through local financial intermediaries in Middle East and North Africa. This project complements the sustainable energy credit lines provided to the Fransabank Group.

 

 


 

 

The program is funding a global fund of funds and two knowledge products:

 

Catalyst Fund
Fund of funds investing in emerging markets private equity funds providing growth capital to companies whose business activities contribute to addressing climate change.

 

 

Climate Risk Management
Development of tools to incorporate climate risks in the analysis of investments in climate sensitive sectors.

 

 

Green Buildings Product Development
Development of tools to enable construction companies and housing developers identify technical solutions that help reduce energy and water consumption in their projects.