International Environmental
Finance Tools
courtesy of: Peter Mason, Water for People
\
June 2011
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Financial tools are valuable resources to further environmental protection initiatives internationally.
These tools include information resources for financial decision making, cost saving mechanisms,
partnership ideas, and financing options such as grants and loans. The applicability of each tool varies
widely depending upon the conditions in a given country or region. These conditions include
creditworthiness of individuals and governments, cultural appropriateness, and level of development.
Several resources in this publication are international financial institutions (IFIs) that finance projects
in developing countries via loans and grants awarded to governments. IFIs are the largest sources of
development finance, typically lending thirty to forty billion U.S. dollars to developing and transitional
countries each year. Many projects funded through IFIs have environmental protection goals in areas
such as climate change, natural disasters, sustainable development, and promoting the sustainable use
of resources. Projects funded through IFIs are most likely to be effective in meeting environmental
protection goals if they are carried out with the informed participation of affected people, organizations
and, in some countries, legislative bodies. The World Bank and the International Monetary Fund are
IFIs, as are other multilateral development banks such as the African Development Bank.
This publication also features programs of governments and non-governmental agencies. Entries
include U.S. and foreign government entities, particularly the U.S. Environmental Protection Agency
and Canadian International Development Agency. The United Nations, nonprofits, and other non-
governmental organizations are also represented, including organizations offering grants, loans, and
microcredit to individuals for various environmental protection projects and initiatives.
To show how organizations can work together to finance environmental protection, some partnerships
are covered, including the Methane Markets Partnership and the Sustainable Cocoa Farming
Partnership between the United Nations Development Programme and Cadbury.
The financial tools in this publication can be used alone, or in combination with other tools, to finance
environmental protection initiatives and leverage funds for environmental protection.
Note: All monetary figures are in terms of U.S. dollars, unless otherwise noted.
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African Development Bank Group 4
Asian Development Bank 4
Canadian International Development Agency 5
Center for Global Development 5
Collaborative Labeling and Appliance Standards Program 6
Commission for Environmental Cooperation 6
Conservation International 7
Conservation International: Verde Ventures 7
Critical Ecosystem Partnership Fund 8
EcoSecurities 8
Energy Star International Partnerships 9
European Bank for Reconstruction and Development 9
European Commission: LIFE+ Financial Instrument for the Environment 10
European Commission: Operating Grants for European Environmental NGOs 10
Global Environment Facility 11
Global Environment Facility: Small Grants Programme 11
Global Heritage Fund 12
Grameen Shakti 12
Green Building Council Australia: Green Star Ratings 13
Inter-American Development Bank 13
International Monetary Fund 14
International Solar Energy Society Solar Cities Initiative: European Habitats of Tomorrow Project.. 14
Mecu goGreen Home Loans 15
Methane to Markets Partnership 15
Millennium Challenge Corporation 16
National Oceanic and Atmospheric Administration: Center for Sponsored Coastal Ocean Research... 16
Nordic Environment Finance Corporation 17
Overseas Private Investment Corporation: Foreign Investment Financing 17
Overseas Private Investment Corporation: Foreign Investment Insurance 18
Overseas Private Investment Corporation: Wolfensohn Renewable Energy Fund 18
Pacific Institute 19
Right Sharing of World Resources 19
The Clean Energy Initiative 20
The World Bank 21
The World Bank: Climate Investment Funds 21
The World Bank: International Development Association 22
The World Bank: International Finance Corporation 22
The World Bank: Multilateral Investment Guarantee Agency 23
United Nations Development Programme 23
United Nations Development Programme and Cadbury: Sustainable Cocoa Farming Partnership 24
United Nations Environment Programme 24
United Nations Environment Programme: Finance Initiative 25
United Nations Environment Programme: Sustainable Energy Finance Initiative 25
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U.S. Agency for International Development: African Urban Poor-Improved Water Supply and
Sanitation (AUP-IWS) Program 26
U.S. Agency for International Development: Clean Energy Technology Program 26
U.S. Agency for International Development: Global Climate Change Program 27
U.S. Environmental Protection Agency: Integrated Environmental Strategies Program 27
U.S. Environmental Protection Agency Office of International & Tribal Affairs: Programs in South
America, Central America, and the Caribbean 28
U.S. Trade and Development Agency 28
Water for People 29
World Green Building Council 29
World Heritage Local Ecological Entrepreneur ship Program (WH-LEEP) 30
International Environmental Finance Tools, 2011
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scription; The African Development Bank Group (ADB) is a multilateral development bank
dedicated to combating poverty and improving the lives of people in Africa. The ADB seeks to
improve the social and economic well being of its member countries in Africa by offering them a
diversified menu of financial products, including loans, guarantees, risk management products,
equity investments, and technical assistance. Examples of ADB-financed projects include "The
Institutional Support for Good Governance" in Kenya, designed to assist the Government of
Kenya with improving public financial management and fighting against corruption; a support
project for the control of communicable diseases in Madagascar; a railway rehabilitation project
in Morocco; and the "Cape Verde Sign Electricity Project Loan Agreement," a loan of $8 million
to help finance an electricity production and transmission project on Santiago Island. To
mainstream renewable energy and energy efficiency, the ADB is implementing the Financing
Energy Services for Small-Scale Energy Users (FINESSE) Africa Program. The objective is to
assist countries in Africa to formulate appropriate policy and regulatory frameworks and develop
capacity to generate a pipeline of investment projects in sustainable energy development.
Reference for Further Information: African Development Bank Group website:
http ://www. afdb. org/
Description: The Asian Development Bank (ADB) is an international development finance
institution that works to reduce poverty and improve the quality of life in its developing member
countries. ADB provides loans, technical assistance, and grants and furnishes expert advice and
knowledge, awarding most of its loans to governments and other public sector organizations.
ADB provides direct assistance to private enterprises in developing countries through equity
investments, guarantees, and loans. Much of the funding and assistance that ADB provides
furthers environmental protection, such as wastewater management, protected area management,
and wildlife conservation. Completed in 2005, ADB and the People's Republic of China
embarked on a $183 million program, called the Shanxi Environment Improvement Program, to
reduce coal use and lower energy costs in Taiyuan, Datong, and Yangquan, three highly polluted
cities in the Chinese province of Shanxi. The partners provided funds to build a manufacturing
plant in Taiyuan to supply the city with gas and coke to replace coal for industrial, commercial,
and residential use. This project and additional initiatives in the other two cities reduced coal use
by nearly 800,000 tons annually. ADB has also allocated $1 billion to a project to improve
access to clean water for three million families in Vietnam.
Reference for Further Information: Asian Development Bank website: http://www.adb.org/
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Description: The Canadian International Development Agency (CIDA) is Canada's lead agency
for development assistance. CIDA's mandate is to support sustainable development in
developing countries in order to reduce poverty and contribute to a more secure, equitable, and
prosperous world. The priorities of CIDA are poverty reduction, democratic governance, private
sector development, health, basic education, equality between women and men, and
environmental sustainability. Within CIDA's environment program, climate change is a major
area of focus. CIDA supports the efforts of its partners to meet their climate change
commitments under international agreements, primarily through the Canada Climate Change
Development Fund. This fund supports developing countries in their efforts to adapt to climate
change, reduce emissions, increase carbon dioxide absorbing vegetation, and raise research
capacity and awareness within governments and among the general public.
Reference for Further Information: Canadian International Development Agency website:
http://www.acdi-cida.gc.ca/home
Description: The Center for Global Development (CGD) is an independent, nonprofit think tank
working to reduce global poverty and inequality. CGD conducts rigorous research and actively
engages with the policy community geared toward encouraging positive change in the United
States and other developed countries. The Center's research covers a wide range of topics,
including aid effectiveness, education, globalization, health, migration, and trade. CGD's
research and analysis investigates the economic, political, and security implications of
environmental problems, such as global climate change, and offers pragmatic policy solutions. In
addition, the Center's research offers practical suggestions for making International Financial
Institutions (IFIs), such as the World Bank, the International Monetary Fund (IMF), and other
multilateral development banks, more responsive to the needs of developing countries, thus
increasing the positive impact of the IFIs' work on global development. CGD has put on the
global agenda concepts including selling IMF gold to write down the debt of many developing
countries and giving the World Bank a strong mandate for addressing global warming.
or Further Information: CGD website: http://www.cgdev.org/section/about/
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Description: The Collaborative Labeling and Appliance Standards Program (CLASP) is a
partnership, established in 1999, that helps policymakers and practitioners in the area of energy
efficiency standards and labels foster socioeconomic development, protect the environment,
stimulate global trade, and alleviate poverty. Energy efficiency standards and labels for
appliances, equipment, and lighting products are a cost-effective policy that gives people the
knowledge they need to conserve energy. The objective is for these standards and labels to lead
to a shift to energy efficient technology and to dramatically improve energy efficiency within
nations. The United States Agency for International Development (USAID) and the United
Nations (UN) Foundation provided the early funding to launch CLASP. Now, fifteen
organizations provide funding for CLASP, including the Australian Greenhouse Office (AGO),
Enova of Norway, the United Nations Development Program (UNDP), the U.S. Environmental
Protection Agency (EPA), the U.S. Department of Energy (DOE), the World Bank, and the
Energy Foundation. Since inception, CLASP has assisted with the implementation of 24 energy
efficiency standards and/or labels in over 50 countries. Energy consuming appliances, equipment
and lighting products are designed and manufactured for maximum energy efficiency. The
regulations governing the manufacture and distribution of these products worldwide are aligned
or harmonized in order to maximize the economic and environmental benefits to consumers. The
work done by CLASP is part of a world trend toward governments increasing their use of energy
efficiency standards and labels for the purpose of cost effectively developing and transforming
markets.
'' ;'', ; : < : \ ', '; i. >: ;>. .;:>'> Collaborative Labeling and Appliance Standards Program
website: http://www.clasponline.org/clasp.online.about.php
. ; . The Commission for Environmental Cooperation (CEC) was created by Canada,
Mexico, and the United States under the North American Agreement on Environmental
Cooperation (NAAEC). The NAAEC complements the environmental provisions of the North
American Free Trade Agreement (NAFTA). CEC was established to address regional
environmental concerns in North America, help prevent potential trade and environmental
conflicts, and promote the effective enforcement of environmental law, as mandated by the
NAAEC. The work of CEC falls into four program areas: 1) environment, economy, and trade;
2) conservation of biodiversity; 3) pollutants and health; and 4) law and policy. In the
environment, economy, and trade program area, CEC is working toward the goal of
strengthening its partnerships with the private financial services sector for the purpose of
addressing issues involving finance and the environment. One of CEC's projects is titled
"Financing in Support of Environmental Protection and Conservation." The project is exploring
the interrelation between finance and the environment, focusing on how environmental
information affects financial markets and investment opportunities in the environmental sector.
' . , , ' ; ; Commission for Environmental Cooperation website:
http://www.cec.org/home/index.cfm?varlan=english
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Co n s e rvat i o n II n te r n at i o n a 1
Description: Conservation International (CI) partners with governments, nonprofit
organizations, universities, businesses, and local communities to strengthen conservation efforts.
In 2009, CI provided more than $30 million in grants to local groups implementing strategic
conservation activities. Supported projects included protecting 3,200 square miles off the coast
of Colombia as part of a no-fishing zone, enabling communities to directly manage 267,000
hectares of wetlands in Madagascar, and creating 22 community businesses designed to benefit
people and conserve natural resources in South Africa. CI runs the Global Conservation Fund,
which funds CI programs around the world and projects by more than 40 partner institutions.
Partnering with the French Development Agency, the Global Environment Facility, the
Government of Japan, the MacArthur Foundation, and the World Bank, CI administers the
Critical Ecosystem Partnership Fund providing grants to protect biodiversity in developing
countries and transition economies. Conservation International manages an investment fund,
Verde Ventures, supporting small and medium-sized businesses that have restored more than
three hundred thousand hectares of land on four continents.
Reference for Further Information: Conservation International website:
http ://www. conservation. org/Pages/default. aspx
See "Global Environment Facility" on page 11.
1 ,', , -:, Conservation International (CI) manages an investment fund, Verde Ventures,
which finances small to medium sized businesses; these businesses protect biodiversity and
contribute to the welfare of their communities. Verde Ventures provides strategic grants, for
monitoring ecological and socioeconomic conditions, and loans, for most business growth
purposes such as infrastructure, working capital, trade finance, inventory purchases, and farm
land. Loans are typically between $30,000 and $500,000, averaging $125,000. Examples of
enterprises receiving funding are: rainforest ecotourism in Peru, sustainable coffee suppliers in
Latin America and Asia, and an organic clothing factory supporting a wildlife sanctuary in
Kenya. Eligible businesses must address CI's environmental priorities and have less than $5
million in assets. They must also be well-managed, able to repay investments within 5 years (in
US dollars), able to monitor relevant changes in biodiversity, and located in one of CI's priority
geographic areas. These priority areas support wildlife diversity and include the Amazon, the
Congo basin, and various transnational marine habitats.
Reference for Further Information: Conservation International website:
http ://www. conservation. org/sites/verdeventures/Pages/partnerlanding. aspx
See "Conservation International" on page 7.
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niptioii; The Critical Ecosystem Partnership Fund (CEPF) provides grants for
nongovernmental and private sector organizations to protect biodiversity in developing and
transitional countries. The fund is a partnership of the French Development Agency,
Conservation International, the Global Environment Facility, the Government of Japan, and the
MacArthur Foundation. The CEPF has committed $128.6 million in grants since 2001 and only
awards grants of less than $1 million. Eligible applicants must be legally independent of any
government and must be able to accept private, charitable contributions. Supported projects are
located in one of the areas CEPF considers to be both threatened and rich in biological diversity.
CEPF has created investment strategies for each of these areas and funds projects that meet the
needs of the local ecosystem and society. Examples of projects include: a sustainable
management initiative in South Africa, a small grants program conserving species in the
mountains of southwest China, the funding of park rangers for a natural reserve in Belize, and a
project reducing slash-and-burn agriculture in Madagascar.
Reference for Further Information: Conservation International website:
http ://www. conservation. org/sites/verdeventures/Pages/partnerlanding. aspx
See "Conservation International" on page 7.
Description: EcoSecurities is one of the world's largest developers and suppliers of greenhouse
gas emission reductions consulting services in developing and industrializing countries.
Consulting services provide initial assessments of greenhouse gas emissions, development of full
project documentation, steering projects through formal approval procedures, and monitoring
and verifying greenhouse gas emission reductions after project completion. EcoSecurities
provides integrated finance, technology, and development capabilities for projects in many
different sectors, including landfill gas capture and utilization, coal mine methane destruction,
and abatement of nitrous oxide. There are numerous ways that EcoSecurities assists its clients
with financing emission reduction credits, including advance payments to project owners for
future delivery of emission reduction credits and in-kind contributions such as purchase,
installation and operations of equipment at project sites. EcoSecurities also takes equity interest
in some projects and businesses.
Reference for Further Information: EcoSecurities website:
http ://www. ecosecuri ties. com/Horn e/default.aspx
Finance Tools, 2011
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i i Energy Star is ajoint program of the U.S. Environmental Protection Agency (EPA)
and the U.S. Department of Energy (DOE) that has many partners in the United States and
abroad. The program helps businesses, households, and individuals protect the environment and
save money through improved energy efficiency. Energy Star's energy efficiency labeling
recognizes products that meet strict energy efficiency guidelines. In addition, Energy Star has a
system for certifying homes that meet stringent energy efficiency standards. Internationally,
Energy Star's partners include Australia, Canada, the European Union, Japan, New Zealand, and
Switzerland. Some implement both components of the Energy Star program, Energy Star
labeling for a broad range of products and Energy Star energy efficiency guidelines for new
homes. Other international partners limit implementation of Energy Star to the labeling of office
equipment and consumer electronics products, which is strongly recommended in some partner
countries and is mandatory in others.
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l'f<;<;: i-((Mi- in-* SVr HinlM r iHr/nHi'Him: European Commission website:
http ://ec. europa. eu/environment/life/funding/lifeplus.htm
DG Environment Programme website: http://ec.europa.eu/dgs/environment/index en.htm
l';M:-;-j'n.i.-(HM!: Under the authority of the LIFE+ Regulation, the European Commission
Directorate-General (DG) Environment Programme awards operating grants to European
environmental nonprofit, non-governmental organizations (NGOs). The main role of the DG
Environment Programme is to initiate and define new environmental policy and legislation,
promote integration of environmental protection measures into other policy areas, and ensure
that agreed policy measures are implemented effectively in the European Union (EU) Member
States. To be eligible for funding, NGOs must have projects and members in at least three EU
Member States. Operating grants are awarded yearly. Awardees included 32 organizations in
2010, such as: Butterfly Conservation Europe, Climate Action Network Europe, Danube
Environmental Forum, Europe International Network for Sustainable Energy, and Pesticides
Action Network Europe.
Kd'i-r./s = ;,: i\iv I psnlK-r h.t(.V:-rMs:MiiH!; European Commission website:
http ://ec. europa. eu/environment/ngos/index_en.htm
DG Environment Programme website: http://ec.europa.eu/dgs/environment/index en.htm
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Description: The Global Environment Facility (GEF) is an independent financial organization
that provides grants to developing countries for projects that help protect the global environment
and promote sustainable livelihoods in communities. Projects funded by GEF address six global
environmental issues: biodiversity, climate change, international waters, land degradation, the
ozone layer, and persistent organic pollutants. Since it was established in 1991, GEF has
allocated $9.2 billion in grants and generated over $40 billion in co-financing from other sources.
This funding has supported more than 2,700 projects in 165 developing countries and countries
with economies in transition. All of GEF's funds are contributed by donor countries. The GEF
Trust fund has received a total of $10.885 billion. An example of a GEF funded project is the
"Coral Reef Rehabilitation and Management Project Phase II (COREMAP II) in Indonesia,
which is supported by a multi donor group. The development objective of COREMAP II is to
establish viable reef management systems in at least six priority districts within five eastern
Indonesian provinces, through a financially sustainable program, to empower and support coastal
communities in sustainably co-managing the use of coral reefs and associated ecosystem
resources.
Reference for Furllier Information: Global Environment Facility website:
http ://www. gefweb. org/
Description: The Small Grants Programme (SGP) is funded by the Global Environment Facility
(GEF) and implemented by the United Nations Development Programme (UNDP). The SGP has
awarded more than 12,000 grants supporting projects of community and non-governmental
organizations in developing countries. The maximum size of a grant is U.S. $50,000. Eligibility
criteria depend on the Country Programme Strategy for the project's country of operation. SGP
grants focus on one of six areas, including: biodiversity, climate change, sustainable land
management, international waters protection, and pollution prevention. Funded activities include:
community-based assessment and planning; pilot demonstration projects; monitoring and
analysis, and; dissemination, networking, and public policy dialogue efforts. As examples, the
SGP has supported sustainable agro-forestry in Guinea-Bissau, alternative energy in Uzbekistan,
sea turtle habitat protection in Dominica, sustainable tourism in the Philippines, and biodiversity
research in Botswana.
Reference for Further Information: United Nations Development Programme website:
http://sgp.undp.org/
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The Global Heritage Fund (GHF) is a nonprofit, international conservancy that
works to protect archaeological and cultural heritage sites in developing countries. Through
conservation and planned development, GHF offers new long-term economic development
opportunities in the countries where it operates, which span several continents to include
Guatemala, Peru, Libya, Russia, and China. GHF utilizes a global network of experts and makes
timely investments to create a "cycle of success" for sites that have high potential for sustainable
preservation, tourism, and economic development. These places are called Global Heritage sites.
The goal of GHF is to invest $20 million over the next ten years in 40 Global Heritage sites
threatened by neglect, destruction, mass tourism, and urban sprawl. Through its Site
Conservation Plan, GHF provides a living framework to guide conservation of cultural heritage
sites within the context of their urban and natural surroundings. For example, GHF is working
with the Guatemalan government, other local organizations, and community leaders to establish
a 525,100 acre archaeological and wildlife preserve, called the Mirador Archaeological and
Wildlife Preserve, in the heart of the Maya Biosphere in Northern Guatemala. GHF is working to
secure United Nations Educational, Scientific, and Cultural Organization (UNESCO) World
Heritage designation for the preserve and aims to make it a sustainable protected area within 10
years.
for Global Heritage Fund website:
http://www.globalheritagefund.org/home.html
Grameen Shakti, initiated in 1996, was created to help rural communities in
Bangladesh gain access to energy resources. The organization's goal is to link renewable energy
technology and microcredit in order to improve quality of life for residents while generating
income. Through the use of microcredit, Grameen Shakti reduces project costs to take advantage
of economies of scale. Programs include biogas, organic fertilizer, solar photovoltaic, and wind
energy projects. The organization has a special focus on gender inequality. Through the
Grameen Technology Center program, more than 1,000 women technicians have been trained
and about 300 are now working in some capacity in fields related to energy technology. Some
female technicians are marketing solar systems; others are promoting and constructing energy
efficient stoves called improved cook stoves. Grameen Shakti has a vast rural network with 300
unit offices and 904 branch offices.
for Grameen Shakti website: http://www.gshakti.org/
Grameen website: http://www.grameen-info.org/ See "Microcredit" in Guidebook Section 10B.
Finance Tools, 2011 12
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^ ,>',. The Green Building Council Australia (GBCA), launched in 2002, is a national,
nonprofit organization that works to develop a sustainable property industry for Australia by
encouraging the adoption of green building practices. GBCA developed Green Star, a
comprehensive environmental rating scheme for the property industry. This scheme is used
across Australia to evaluate the environmental design of buildings. The Green Star rating
includes the following nine categories for assessing environmental impact: management, indoor
environment quality, energy, transport, water, materials, land use and ecology, emissions, and
innovation. There are seven Green Star rating tools available; they cover retail centers,
educational facilities, office design, construction and procurement of office buildings, and office
interiors. Green Star certification benefits property owners in two ways: certified buildings are
more marketable to future buyers, and they cost less to operate because they are more energy
efficient.
Reference for Fur I her information; Green Building Council Australia website:
http://www.gbca.org.au/green-star/ and http://www.gbca.org.au/about/world-green-building-
council/ See "World Green Building Council" on page 29.
- , " The main source of financing for sustainable economic, social, and institutional
development in Latin America and the Caribbean, as well as for regional integration, is the Inter-
American Development Bank (IDB). Established in 1959, the IDB provides loans, grants,
guarantees, policy advice, and technical assistance to various entities in the public and private
sectors in its Latin American and Caribbean borrowing member countries. The IDB obtains its
financial resources, which include an Ordinary Capital of U.S. $101 billion, from its members,
money it borrows on the financial markets, trust funds it administers, and co financing ventures.
The Infrastructure and Environment Sector of the IDB conceptualizes, prepares, and supports the
execution and supervision of Bank operations related to infrastructure and environmental issues
and develops Bank policies, strategies, and operational guidelines in those areas. Trust funds,
established with donations from 18 countries held by the IDB for various purposes, are a critical
source of financing for technical assistance addressing environmental issues.
- , Inter-American Development Bank website:
http://www.iadb.org/
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Description: The International Monetary Fund (IMF) is an international organization of 185
member countries that was established in 1944 to promote international monetary cooperation.
The IMF does economic research and statistical analysis in support of all its work and, in the
area of environmental protection, the IMF has resolved to contribute to better ways of
understanding and dealing with the macroeconomic, fiscal, and financial challenges of global
climate change. The IMF's work supports and complements climate change related work
undertaken by other organizations, particularly the United Nations and the World Bank.
Reference for Further Information:
International Monetary Fund website main page: http://www.imf.org/external/
Articles of Agreement of the International Monetary Fund:
http://www.imf.org/external/pubs/ft/aa/index.htm
Society Cities Initiative:
of Tomorrow Project
Description: The International Solar Energy Society (ISES) Solar Cities Initiative: Habitats of
Tomorrow Project is aimed at promoting the increased use of renewable energy within the
context of long-term planning for sustainable urban development. ISES is a United Nations (UN)
accredited non-governmental organization (NGO) that operates in more than fifty countries,
supporting the advancement of renewable energy technology, implementation, and education.
The first project under the ISES Solar Cities Initiative was the European Habitats of Tomorrow
Project, financially supported by the European Commission. Through this project, ISES
presented practical information to European cities and towns to assist them in identifying and
implementing strategies and activities to reduce harmful emissions (specifically carbon dioxide),
moving them toward sustainable and secure energy provisions using local resources. Providing
that guidance involved disseminating information on European solar city networks and
initiatives, presenting good practices for cities, and presenting methodologies for accessing
carbon dioxide reduction potential in cities. The European Habitats of Tomorrow Project is one
of many ISES projects established to address the issue of global climate change.
wilier Information: International Solar Energy Society website: http://ises.org/
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Home
Mecu Intelligent Banking is an Australian financial cooperative that offers
goGreen Home Loans to encourage people to purchase, construct, or renovate homes that are
energy efficient. Mecu is a member-owned financial cooperative that is committed to enhancing
the financial well being of its customers in a socially responsible way. GoGreen Home Loans
reward consumers with low interest rates for choosing to enhance their homes' energy and water
efficiency. These loans are available to finance members with homes that qualify with ratings of
six stars or more per the Nationwide House Energy Rating Scheme (NatHERS) (managed by the
Australian Greenhouse Office). Each loan applicant provides Mecu with an energy efficiency
report produced by an accredited energy assessment tool such as Building Energy Rating
Scheme (BERS) Pro or FirstRateS. The reports provide zero to ten star ratings for the heating
and cooling energy performance of homes. For new owner occupied home construction loans,
Mecu will offset an equivalent amount of land into its Conservation Landbank located in the
western region of Victoria in order to offset any loss of biodiversity.
Reference for Further Information: Mecu website:
http://www.mecu.com.au/Borrowing/Loans/Home-Loans/goGreen-Home-Loan.html
Nationwide House Energy Rating Scheme website: http://www.nathers.gov.au/index.html
Description: The Methane to Markets Partnership, established in November 2004, is an
international initiative that advances cost-effective, near-term methane recovery and use as a
clean energy source. Twenty-four countries, including the United States, Canada, and China
participate in the Partnership, as well as the European Commission. The Partnership includes
countries accounting for approximately sixty percent of global methane emissions. The
Partnership focuses on methane recovery and use opportunities in the following sectors:
agriculture (animal waste management), coal mining, landfills, and oil and gas. Private sector
organizations participate in the Partnership by joining the Project Network. The benefits the
Partnership yields include enhanced economic growth and energy security, improved air quality
and industrial safety, and reduced greenhouse gas emissions. Six major agencies and
departments across the U.S. government, including the U.S. Environmental Protection Agency
and the U.S. Department of State, provide technical expertise and leadership on the Partnership's
Steering Committee.
Reference for Further Information: U.S. Environmental Protection Agency website, Methane
to Markets Partnership page: http://www.epa.gov/methanetomarkets/partnership.htm
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Description: The Millennium Challenge Corporation (MCC) is a United States government
corporation set up to work with some of the poorest countries in the world. The mission of MCC
is to reduce global poverty through the promotion of sustainable economic growth. The work
MCC does is focused specifically on investments in areas such as transportation, water
infrastructure, industrial infrastructure, agriculture, education, private sector development, and
mitigation of global climate change. Through the use of objective indicators, MCC selects
countries to receive assistance based on their performance in governing justly, investing in their
citizens, and encouraging economic freedom. Each country that receives financial assistance
enters into an agreement with MCC, called a Compact. The Compact includes a multi-year plan
for achieving development objectives and identifies the responsibilities of each partner in
achieving those objectives. Plans are designed to enable continuation of sustainable progress
after funding under the Compact has ended, usually within five years. As part of its work to
promote environmentally and socially sound projects within its Compacts, MCC requires its
projects to meet specifications under its Environmental Guidelines. These Guidelines define
environment broadlyinvoluntary resettlement, human health and safety, and the natural
environment. If loss of access to resources or acquisition of land or assets may occur, MCC
applies international good practices and employs the World Bank's Involuntary Resettlement
Policy. Further, each project is expected to comply with country laws, regulations and standards,
as well as requirements by which a country is bound under international agreements.
Reference for 1-iirther Information: Millennium Challenge Corporation website:
http://www.mcc.gov/
Description: The U.S. National Oceanic and Atmospheric Administration (NOAA) Center for
Sponsored Coastal Ocean Research (CSCOR) develops and improves predictive capabilities for
managing coastal resources through competitive research programs. Working with partners
within NOAA and other organizations responsible for coastal resources, CSCOR helps to
advance the scientific understanding needed to protect coastal resources and ensure their viability
for future generations. CSCOR provides grants for and enters into cooperative agreements with
coastal resource management initiatives in the United States and abroad. A current project is
CSCOR's solicitation of funding proposals for projects contributing to the Regional Ecosystem
Prediction Program on Coral Reef Ecosystem Studies (CRES). The objective is to utilize existing
scientific tools and approaches within a social, cultural, and economic framework for the purpose
of developing and implementing effective coastal ecosystem management practices in the Pacific
Islands.
Refe ire n ce fo r Pu r 1 In e ir I n fo r ni a 1 i o in:
NOAA Center for Sponsored Coastal Ocean Research website: http://coastalscience.noaa.gov/
Announcements of NOAA CSCOR funding opportunities are available at http ://www. grants, gov/
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Description: The Nordic Environment Finance Corporation (NEFCO) is an international finance
institution that supports a wide range of environmental projects in Central and Eastern European
countries, including Russia, Belarus, and Ukraine. NEFCO was established in 1990 by five
Nordic countries: Denmark, Finland, Iceland, Norway, and Sweden. To provide the capital
necessary to support projects, NEFCO administers six funds, along with several project specific
funds, each set up for a different purpose. The primary six funds are: the NEFCO Investment
Fund, the Nordic Environmental Development Fund, the Testing Ground Facility Carbon Fund,
the Barents Hot Spots Facility, the NEFCO Carbon Fund, and the Arctic Council Project Support
Instrument. Loans, equity financing, grants, and other forms of financing are provided through
these funds. NEFCO's portfolio comprises nearly 300 small and medium-sized projects in many
sectors, including chemical, mineral, metals, food and engineering, agriculture, water treatment,
power utilities, municipal services, waste management, nuclear remediation, environmental
management, and environmental equipment manufacturing. In most cases, NEFCO projects are
run in partnership with the enterprises that "own" the projects. NEFCO leverages its funds by
acquiring financing from a wide range of interested parties and financial institutions through its
network of partnerships.
Reference for Fur I. tier Information: Nordic Environment Finance Corporation (NEFCO)
website: http://www.nefco.org/
Description: The Overseas Private Investment Corporation (OPIC) Foreign Investment
Financing program provides medium to long-term funding through direct loan and loan
guarantees for eligible investment projects in developing countries and emerging markets
worldwide. Loans are guaranteed and insured. Projects financed through this program are
sponsored by private U.S.-based businesses. The projects promote competitiveness with a goal to
create American jobs and increase U.S. exports. OPIC requires the guaranteed investor be a U.S.
Citizen and ensure significant U.S. involvement in the projects it supports. In order to be eligible
for a direct loan, the project must be sponsored by or significantly involve a U.S. small business
or cooperative. Generally, this test is satisfied if a U.S. small business owns at least 25 percent of
the equity in the project, although other significant involvement in the project by U.S. small
businesses will be considered for purposes of eligibility determination. The program focuses on
U.S. businesses with annual revenues of over $250 million and finances large-scale capital
projects in areas such as infrastructure, telecommunications, power, water, housing, airports,
hotels, high-tech, and natural resource extraction industries. Power projects tend to have energy
efficiency or renewable energy goals. OPIC offers direct loan and loan guarantee financial
assistance up to $250 million for a single project; the average award is approximately $12
million. Since 1971, OPIC has supported more than $164 billion in U.S. investments overseas
that are expected to generate $69 billion in U.S. exports and support more than 264,000 U.S.
jobs.
Reference for Further Information: OPIC website: http://www.opic.gov/fmancing
This program is number 70.002 in the Catalog of Federal Domestic Assistance at
https://www.cfda.gov
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Description: The Overseas Private Investment Corporation (OPIC) provides political risk
insurance to United States investors, contractors, exporters, and financial institutions involved in
international transactions. This insurance protects subscribers against the political risks of
inconvertibility, expropriation, and political violence. Some subscribers to this political risk
insurance carry out activities supporting environmental protection related projects, such as
construction of power plants operating on renewable energy resources and construction of
wastewater and drinking water treatment facilities. OPIC insurance contracts can be offered at
fixed rates for up to twenty years. Special programs offered under this political risk insurance
include: 1) insuring contractors and exporters against arbitrary drawings of letters of credit
posted as bid, performance, or advance payment guarantees, 2) petroleum exploration,
development, and production, 3) leasing operations, and 4) debt fmancials, including securities.
OPIC designs risk insurance to encourage investment in developing countries and emerging
economies.
Reference for Further Information: OPIC website: http://www.opic.gov/insurance
This program is number 70.003 in the Catalog of Federal Domestic Assistance at
https://www.cfda.gov
Description: The Wolfensohn Renewable Energy Fund ("the Fund") was approved by the
Overseas Private Investment Corporation (OPIC) Board of Directors in 2008. Good Energies,
Inc. and Wolfensohn Partners jointly own the Fund. The Fund's purpose is to make global
investments in the expansion of businesses that manufacture, develop, supply, or support
renewable energy products or services in OPIC-eligible developing countries. These investments
are made in the equity of start-up companies, small and medium enterprises, and large
corporations involved in solar energy, biofuels, geothermal energy, small hydroelectric dams,
wind energy storage, and consumer energy solutions projects worldwide. The Fund targets 8 to
15 investments each between $15 million and $40 million that have low or no technology risk.
The proposed OPIC loan guarantee for these projects is up to $100 million plus accrued and
accreted interest. The target fund capitalization is $300 million, including the $100 million OPIC
loan. The term of the Fund is up to 10 years, with two one-year extensions. The Fund helps
portfolio countries to access financing, utilize state-of-the-art technology, establish business
relationships, and leverage government support. The Fund's investments are expected to help
reduce greenhouse gas emissions in the host countries.
Reference for further 1 nforrnation: Overseas Private Investment Corporation website:
http://www.opic.gov/projects click on "Good Energies- Wolfensohn Renewable Energy Fund"
under "2008." See "Overseas Private Investment Corporation: Foreign Investment Financing"
on page 17.
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The Pacific Institute is a nonprofit organization that conducts interdisciplinary
research and partners with stakeholders in an effort to create solutions that advance
environmental protection, economic development, and social equity, nationally and
internationally. The Institute's three main research areas address the following programs:
1. The Water Program seeks to transform the way societies perceive, manage, and use
freshwater resources;
2. The Community Strategies for Sustainability and Justice Program aims to advance
environmental health, justice, and Sustainability in low-income neighborhoods and
communities; and
3. The Globalization Program seeks to understand and affect the growing influence of
standardization and certification as instruments of corporate accountability and sustainable
development.
Encompassed in these research areas, the Pacific Institute conducts research on privatization of
drinking water and wastewater treatment plants.
for Pacific Institute website: http://www.pacinst.org/about us/
See "Privatization" in Section 4A of this Guidebook.
The following Pacific Institute Reports are available at http://www.pacinst.org/publications/
Gleick, Peter H.; Wolff, Gary; et al., "The New Economy of Water: The Risks and Benefits of
Globalization and Privatization of Fresh Water," 2002. Wolff, Gary; Hallstein, Eric, "Beyond
Privatization: Restructuring Water Systems to Improve Performance," 2005.
Right Sharing of World Resources (RSWR) supports grassroots projects for
economic development by providing grants to new, small, grassroots organizations in developing
countries. Grants are awarded to organizations for the purpose of implementing income
generating projects, providing a means of establishing self sufficiency for people living in
poverty. Grants are provided for up to $5,000 per year, for three to five years. Grant proposals
must demonstrate how projects can become self-supporting or be financed through local sources
after funding from RSWR ends. Grants may be used for seed money, start-up supplies and
equipment, and training. Some grants awarded by RSWR fund environmental protection
projects. One such project is the Integrated Farming and Organic Food Processing project in
India, involving 50 women from ten village self-help groups. The women will engage in various
income-generating projects including vegetable and fruit sales, compost production, calf-rearing,
and organic pest management over three years.
for Right Sharing of World Resources website:
http://www.rswr.org/ The grant proposal writing guidelines are on the web site.\
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nil " Ener»i III idative
Description: The U.S. government launched the Clean Energy Initiative at the World Summit on
Sustainable Development in 2002 with a $42 million commitment. The Clean Energy Initiative is
a multi-agency U.S. government partnership set up to provide millions of people in the
developing world with access to affordable, reliable, clean, healthy, and efficient energy
services. This multi-year initiative includes three partnership programs:
1. Efficient Energy for Sustainable Development (EESD) Partnership: Led by the Department
of Energy, this partnership is set up to improve the productivity and efficiency of current
operating systems, while reducing waste, saving money, improving reliability, and delaying
the need for expensive new generating capacity. This partnership encompasses more than 70
organizations (government, industry, and civil society).
2. Global Village Energy Partnership: Led by the Agency for International Development, the
goal of this partnership is to increase access to modern and affordable energy services in
areas currently not served or under-served by energy delivery systems. More than 300
organizations, government, industry, and civil society, participate. The GVEP website offers
a complete listing of partners, http://www.gvepinternational.org/
3. Healthy Homes and Communities Partnership: Led by the Environmental Protection Agency,
this partnership promotes clean transportation fuels, such as unleaded gasoline, and healthier
indoor cooking and heating practices. More than 60 organizations have joined the Partnership
for Clean Fuels and Vehicles and more than 40 have joined the Partnership for Clean Indoor
Air. A complete list of partners can be found at http://www.unep.org/pcfv/ (Partnership for
Clean Fuels and Vehicles) and at http://www.epa.gov/iaq/pcia/index.html (Partnership for
Clean Indoor Air).
Reference for Further Information:
World Summit on Sustainable Development website: http://www.un.org/events/wssd/
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Description: The World Bank, also known as the World Bank Group, is a public international
financial institution established in 1944 whose mission is to provide loans and credits to
developing countries for projects that alleviate poverty and promote social and economic
development. These loans and credits are typically awarded to governments for projects in areas
such as environment and natural resource management, disaster risk management, health
services, education, and corporate governance. The World Bank Group consists of five
organizations: The International Bank for Reconstruction and Development, The International
Development Association, The International Finance Corporation, The Multilateral Investment
Guarantee Agency, and The International Centre for the Settlement of Investment Disputes. The
World Bank is a trustee of 11 funds focused on climate action. During fiscal years 2005-2010,
the World Bank loaned nearly $2.5 billion dollars for environment and natural resources
management.
Reference for Further The World Bank website: http://www.worldbank.org/
See the financial tools on organizations that are part of the World Bank Group in this section of
the Guidebook. See "Global Environment Facility" on page 11.
- ' ' ' ''
i: In 2008, the World Bank Board of Directors established Climate Investment Funds
(CIFs) in recognition of deliberations on climate change under the United Nations Framework
Convention on Climate Change (UNFCCC). These ongoing discussions deliberate future
financial architecture and funding strategies to address climate change. Specifically, the UNFCC
recognizes the need for financing to help developing countries respond to the challenge of
climate change with mitigation and adaptation measures. Donors pledged over $6.1 billion for
the CIFs in 2008. The CIFs were developed by multilateral development banks, developed
countries, developing countries, and other stakeholders as an interim measure to scale up
assistance to developing countries. The CIFs are managed by the World Bank and are
implemented jointly with regional development banks, which include the African Development
Bank, the Asian Development Bank, the European Bank for Reconstruction and Development,
and the Inter-American Development Bank.
Reference for Further Information: The World Bank website on CIFs:
http ://www. climateinvestmentfunds.org/cif/
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Description: The International Development Association (IDA) is a lending arm of the World
Bank Group. IDA lends money (known as credits) on concessional terms to provide financing
for basic social services for 80 developing countries, 39 of which are in Africa. "Concessional
terms" means that IDA credits have no interest and repayments are stretched over 35 to 40 years,
including a 10-year grace period. IDA also provides grants to countries at risk of debt distress.
Since the IDA was founded in 1960, it has awarded credits and grants totaling $182 billion,
averaging $10 billion a year in recent years. About 50 percent of the funding is directed to
Africa. An example of an IDA-funded environmental protection project is the Coastal Wetlands
Protection and Development Project in Vietnam, which was completed in 2007 and was funded
with a credit from IDA of $31.8 million and a technical assistance grant of $7.3 million from the
Danish International Development Agency (DANIDA). Through this project, forestry staff
reversed coastal erosion by planting 400 acres of mangrove trees along the coastline of
Vietnam's Southern Mekong Delta. During 2000-2010, IDA financed improved water sources
for 113 million people and improved sanitation for 5.8 million people.
Reference for 1-iirthcr Information: See "The World Bank" on page 21.
World Bank website, International Development Association page:
http ://www. worldbank. org/ida/
Description: The International Finance Corporation (IFC), part of the World Bank Group,
works to promote sustainable economic growth in developing countries by financing private
sector investment, mobilizing capital in international financial markets, and providing advisory
services to its clients. IFC serves companies, financial institutions, and governments in
emerging markets, investing in enterprises that are majority-owned by the private sector and
which are located in developing countries across Africa, Asia, Europe, Latin America, the
Caribbean, and the Middle East. Through its Environmental and Social Sustainability
Department, the IFC provides its clients with expertise in four areas: 1) risk management and
insurance services to reduce and manage environmental, social, and business risks; 2)
sustainability innovation to create innovative business models, products, and business lines; 3)
global environmental and social standard setting to minimize project impacts on the
environment and on affected communities, and 4) thought leadership to diffuse its expertise in
the environmental and social areas and demonstrate the viability of private sector interventions
in sustainability.
Reference for Further Information: International Finance Corporation website:
http://www.ifc.org/ See "The World Bank" on page 21.
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Description: The Multilateral Investment Guarantee Agency (MIGA) works to promote foreign
direct investments in developing countries to help support economic growth, reduce poverty,
and improve peoples' lives. Three key services are provided by MIGA: 1) political risk
insurance for foreign investments, 2) technical assistance to improve investment climates and
promote investment opportunities, and 3) dispute mediation services to remove possible
obstacles to future investment. MIGA's guarantee program provides non-commercial
guarantees (insurance) for investments made in developing countries. Since establishment in
1988, MIGA has issued nearly 900 guarantees worth more than $17.4 billion for projects in 96
developing countries. MIGA promotes socially, economically, and environmentally sustainable
projects. For example, MIGA has issued $870,000 to International Home Finance and
Development, LLC for fiscal year 2008, covering its equity investment in and shareholder loans
to Geo Building Technologies in Afghanistan. This investment helps Geo Building
Technologies meet Afghanistan's demand for inexpensive building materials with the
production of durable building blocks, called "Geo Bricks", that are manufactured in a way that
is energy efficient compared to the kiln-fired mud bricks typically used in the country.
for Further Multilateral Investment Guarantee Agency website:
http://www.miga.org/ See "The World Bank" on page 21.
Description: The United Nations Development Programme (UNDP) is the United Nations'
(UN) global development network, an organization connecting countries to knowledge,
experience, and resources to help people build better lives. UNDP is on the ground in 166
countries, working with them on their own solutions to global and national development
challenges while helping them attract and use aid effectively. UNDP's focus is on helping
countries develop and share solutions to the challenges of democratic governance, poverty
reduction, crisis prevention and recovery, environment and energy, and HIV/AIDS. As the
countries UNDP works with develop local capacity, they draw on the people of UNDP and its
partners, which include the United Nations Environment Programme (UNEP) and the World
Bank. In 2007, the UNDP, UNEP, and the World Bank expressed commitment to strengthening
cooperation on improving energy access for developing countries. The UNDP is also increasing
its involvement in work related to climate change; on May 29, 2008, UNDP and the government
of Japan unveiled a new $92.1 million program for climate change adaptation in Africa.
Reference for Further Inforniiition: United Nations Development Programme website:
http://www.undp.org/ See "United Nations Environment Programme" and "United Nations
Environment Programme Finance Initiative" on pages 24 and 25.
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Description: The Cadbury Cocoa Partnership is a public-private partnership between the United
Nations Development Programme (UNDP), the Ghanaian Government, Cadbury (now a part of
Kraft Foods), and other partners. The Partnership is designed to secure the sustainable
livelihoods of one million farmers in cocoa-growing communities across Ghana, India,
Indonesia, and the Caribbean. Cadbury committed to invest seed funding of $2 million in 2008
to establish the Partnership, with annual funding levels rising to $10 million by 2010. Seventy
percent of the funds will be invested in small farming communities in Ghana, which provides the
cocoa beans for Cadbury's IK chocolate. The Cocoa Farming Partnership is set up to augment
the income of cocoa farmers by helping them to increase their yields and produce top quality
beans, to introduce new sources of rural income through microfinance and business support, and
to invest in community-led development projects supporting schools, libraries, biodiversity
protection projects, and clean water wells.
'';'.; ; \ ::,-*. '..!.,,:,,,:,. United Nations Development Programme, Cadbury
Schweppes, "Cadbury, UNDP team up for sustainable cocoa farming," 28 January 2008,
available through the United Nations Development Programme website at:
http://content.undp.org/go/newsroom/2008/ianuarv/cadbury-undp-ghana-20080128.en See
"United Nations Development Programme" on page 23.
- , " The United Nations Environment Programme (UNEP) is the designated entity
within the United Nations for addressing environmental issues at global and regional levels.
UNEP's mandate is to coordinate the development of environmental policy consensus through
continual review of global environmental issues and by bringing emerging issues to the attention
of governments and the international community for action. The mission of UNEP is "to provide
leadership and encourage partnership in caring for the environment by inspiring, informing, and
enabling nations and peoples to improve their quality of life without compromising that of future
generations." UNEP has six regional offices, located in Kenya, Thailand, Switzerland, Mexico,
Bahrain, and the United States. UNEP partners with other United Nations entities such as the
United Nations Development Programme (UNDP), international organizations, national
governments, non-governmental organizations, businesses, industry, the media, and civil society.
UNEP develops international agreements and national environmental instruments, integrates
economic development and environmental protection, encourages partnerships, strengthens
institutions, and facilitates the transfer of knowledge and technology for sustainable
development.
I1.; ,,,, , , i ,'':; ' ,'. ' ,".-. ".. ": United Nations Environment Programme website:
http://www.unep.org/ See "United Nations Development Programme" on page 23 and "United
Nations Environment Programme Finance Initiative" on page 25.
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The United Nations Environment Programme Finance Initiative (UNEP FI) is a
public-private partnership between UNEP, over 160 financial institutions in the private sector,
and a range of organizations that work to develop and promote linkages between the
environment, sustainability, and financial performance. Before working with UNEP FI, every
financial institution must sign either a UNEP Statement by Financial Institutions on the
Environment and Sustainable Development or a UNEP Statement of Environmental
Commitment by the Insurance Industry. UNEP FI conducts core activities in climate change,
insurance, investment, property, and sustainability management and reporting. Within its climate
change activity, UNEP FI has a working group focused on carbon finance, national and
international policy and regulation debates, and renewable energy. UNEP FI is also active in the
areas of biodiversity and ecosystem services, finance and conflict, finance and water, and human
rights and finance.
'' ;-:'> ; ;';,:.-: '.;. i. > i :> .;:>', United Nations Environment Programme Finance
Initiative website: http://www.unepfi.org/index.html See "United Nations Environment
Programme" on page 24 and "United Nations Development Programme" on page 23.
. ; , The United Nations Environment Programme (UNEP) Sustainable Energy Finance
Initiative (SEFI) is a joint initiative of the UNEP Finance Initiative, the UNEP Energy Branch,
and the Basel Agency for Sustainable Energy. This platform provides financiers with tools,
support, and a global network to help them conceive and manage investments in the rapidly
changing marketplace for clean energy technologies. The goal of SEFI is to foster investment in
sustainable energy projects by providing up-to-date investor information and facilitating
origination of deals. The SEFI platform uses modest amounts of capital to convene financiers,
engage them to do jointly what they may have been reluctant to do individually, and catalyze
public-private alliances that together share the costs and lower the barriers to sustainable energy
investment. SEFI provides financiers with current and targeted information. In addition, SEFI
facilitates new economic tools that combine social and environmental factors, both risks and
returns, as integral measures of economic performance. SEFI provides innovative financial
engineering to enable sustainable energy sources to increasingly meet the global energy
challenge. One current SEFI project is the Rural Energy Enterprise Development (REED)
initiative, which is a flagship UNEP effort focused on enterprise development and seed financing
for clean energy entrepreneurs in developing countries.
Reference for Furl her InfornuUion: United Nations Environment Programme (UNEP)
Sustainable Energy Finance Initiative website: http://www.sefi.unep.org/ UNEP Finance
Initiative website: http://www.unepfi.org/ UNEP Energy Branch website:
http://www.uneptie.org/energy/ Basel Agency for Sustainable Energy website:
http ://www. energy-base, org/
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^ ,>',. Through the African Urban Poor-Improved Water Supply and Sanitation (AUP-
IWS) Program, the U.S. Agency for International Development (USAID) awards grants or enters
into cooperative agreements for demonstration projects in Sub-Saharan Africa. Projects may be
funded for amounts between $1.5 and $4.5 million for the life of the proposed projects. The core
objective of AUP-IWS is to increase equitable access to water supply and basic sanitation
services for the urban poor in Sub-Saharan Africa by promoting innovative cooperative
initiatives between civil society organizations, local service providers, and governments.
Program activities aim to contribute toward decreasing the prevalence of diseases related to
water contamination among the urban poor and improving associated local governance. AUP-
IWS Program demonstration projects are expected to complement USAID and other donor-
sponsored utility reform programs. Projects focus on safe water access, basic sanitation, and
water sanitation policy and governance.
Reference for Furl her information; This program is funding opportunity number MO A A-
EGATPEP-09-645 at http://www.grants.gov USAID website:
http://www.usaid.gov/locations/sub-saharan africa/
- , " The U.S. Agency for International Development (USAID) promotes economic
growth in developing countries while also seeking to reduce greenhouse gas emissions that lead
to climate change. USAID promotes sustainable development and works to build technical
expertise in the application of climate-friendly technologies. In pursuit of these goals, USAID
undertakes activities in the urban, industrial, and transport areas of the energy sector. For
example, with USAID support in the areas of demand-side management and renewable energy
use, the Center for Power Efficiency and Environment Protection (CenPEEP) works to increase
the generation capacity of coal-fired power plants while reducing the quantity of fuel consumed
per unit of output and reducing the price of electricity for end users. CenPEEP, which carries out
much of its work in India, has helped prevent the release of over 7.4 million tons of carbon
dioxide emission equivalents cumulatively since 2007. Another USAID initiative is its work to
limit the growth of transportation-related greenhouse gas emissions. The initiative has resulted in
the establishment of a number of sustainable transportation systems, including the first bus rapid
transit system in Asia, established by the City of Jakarta, Indonesia.
! : ::: '.'.,:'.. {;;..:.:.-:: USAID web site:
http://www.usaid.gov/our work/environment/climate/policies prog/ghg.html
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' .. ' For over a decade, addressing the causes and effects of climate change through the
Global Climate Change Program has been a key focus of the U.S. Agency for International
Development's (US ADD) development assistance. US AID has funded environmental programs
that have reduced growth in greenhouse gas (GHG) emissions while promoting energy
efficiency, forest conservation, biodiversity, and other developmental goals. USAID places a
strong emphasis on partnerships with the private sector and on working with local and national
authorities, communities, and non-governmental organizations to create alliances. These
alliances build on the relative strengths of each participant and help prevent unnecessary
duplication of activities. The Global Climate Change Program helps developing and transition
countries to address climate-related concerns while still achieving economic development.
Through training, tools, and other means of capacity building, the program integrates activities to
address global climate change into a broad range of development and assistance activities in
more than 40 countries. As an example, USAID developed a Climate Change Adaptation
Guidance Manual to provide other donor organizations and developing country planners with the
tools to understand how climate change may affect their projects. The manual draws on lessons
learned in four pilot projects in Honduras, Mali, South Africa, and Thailand. The projects
assessed vulnerability to climate change variability and change. In addition, the projects
developed adaptation implementation plans for urban and coastal flooding, municipal water,
agriculture, and fisheries.
< : . ; . USAID Global Climate Change Program website:
http://www.usaid.gov/our work/environment/climate/
. / The Integrated Environmental Strategies (IBS) program promotes integrated
planning to address local environmental concerns and reduce associated global greenhouse gas
emissions in developing countries. The U.S. Environmental Protection Agency implements the
IBS program with support from the U.S. Agency for International Development (USAID) and
the U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL). With
support from the IES program, in-country research teams, guided by policymakers and assisted
by U.S. counterparts, identify key policy objectives and technology and infrastructure measures
with multiple public health, economic, and environmental benefits. The IES research teams
work toward the common goal of identifying cost-effective policies and technologies that
produce the desired co-benefits. The findings of IES research teams are used to develop funding
proposals for environmental protection projects. Government agencies and research institutions
in Argentina, Brazil, Chili, China, India, Mexico, the Philippines, and South Korea have
participated in the IES Program.
. . . U.S. Environmental Protection Agency website:
http://www.epa.gov/ies/basicinfo.htm USAID website: http://www.usaid.gov/ National
Renewable Energy Laboratory website: http://www.nrel.gov/
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, The U.S. Environmental Protection Agency (EPA) Office of International & Tribal
Affairs (OITA) sponsors programs and activities in South America, Central America, and the
Caribbean and provides financing in the form of grants and cooperative agreements for these
programs. OITA-fmanced programs improve partners' capacity to implement environmental
laws and programs, advance greater use of economic incentives, and promote stakeholder
involvement in environmental decision-making. For example, the Urban Air Quality
Management Program in Central America is an OITA-sponsored international financial
assistance project designed to improve urban air quality management in Central America and the
Dominican Republic. The four key components under the agreement are air quality monitoring,
public outreach and information on air quality, air quality management, including emission
inventory, and development of control strategies for promoting the use of clean fuels and clean
vehicle technologies in the region.
Reference for Further Information: U.S. Environmental Protection Agency website:
http://www.epa.gov/oia/regions/sa/index.html and http://www.epa.gov/oia/grants/index.html
U.S.
. / The U.S. Trade and Development Agency (USTDA) works to advance economic
development and U.S. commercial interests in developing and middle income countries and
funds various forms of technical assistance: early investment analysis, training, orientation visits,
and business workshops that support the development of a modern infrastructure and a fair and
open trading environment. The hallmark of USTDA development assistance involves building
partnerships between U.S. companies and overseas project sponsors to apply proven private
sector solutions to development challenges. USTDA provides grant funding to project sponsors
outside the U.S. for project planning and operates in Asia, Europe, Eurasia, Latin America, the
Caribbean, the Middle East, and Africa. USTDA has a program in China that focuses on trade
capacity building initiatives and projects in environmental protection (air and water pollution),
clean energy, and aviation safety/security sectors; one of the projects is the Shandong Water
Quality Improvement Project. This $343,480 grant is financing a study of a water quality
improvement and watershed pollution assessment project in northeastern China.
> - - - ; - . . U. S. Trade and Development Agency website:
http ://www.ustda. gov/
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Water for People, an international nonprofit development organization established
in 1991, assists people in developing countries by supporting the improvement and expansion of
locally sustainable drinking water resources, sanitation facilities and health and hygiene
education programs. In 2006, Water for People partnered with non-governmental organizations
and communities in 43 countries around the world and provided more than 98,000 people with
safe drinking water resources and/or improved sanitation facilities. Water for People operates in
Bolivia, Guatemala, Honduras, India, and Malawi. Sanitation projects carried out by Water for
People in Bolivia have typically involved the construction of dry-composting latrines, pour-flush
and/or conventional flush toilets, and household bathrooms, including some with showers.
Almost all Bolivian projects have leveraged some partner funding, usually including 30% from
the local government or municipality and 5-10% from the benefiting communities.
for Water for People website: http://www.waterforpeople.org
n
The World Green Building Council (World GBC) is a union of national Green
Building Councils that provides leadership and a global forum to accelerate market
transformation from traditional, inefficient building practices to high-performance buildings.
Global awareness of the urgent need to reduce greenhouse gas emissions and other
environmental degradation is driving the need for rapid formation of Green Building Councils
around the world. The World GBC works to accelerate the development of green building rating
systems and provides organizational tools, such as advocacy, facilitation, information, and a non-
partisan approach, to help people take action locally. National Green Building Councils can
benefit from the expertise of the World GBC as these organizations train professionals in their
countries and set country standards for green buildings nationally.
for World Green Building Council website:
http://www.worldgbc.org/
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WH-LEEP is a partnership between Verde Ventures, Daiwa Securities Co. Ltd., the
Global Environment Facility's Small Grants Programme, and the United Nations Foundation.
The program provides development support in the form of grants and loans. Funds can be used
for agro-forestry, ecotourism, and wild-harvest product enterprises. Eligible businesses are
community-based, are near a World Heritage site, be identified by a Community Management of
Protected Areas Conservation Programme (COMPACT) coordinator, meet legal and structural
requirements, be able to generate revenue, support biodiversity conservation, and address rural
poverty. The partnership was launched in 2009, and as of 2010, 12 projects have received
development support grants and one has been approved for a Verde Ventures loan. The grants
(up to U.S. $10,000) are provided as in-kind services, such as marketing assistance, finance
training, and certifications. Supported enterprises include: a recycling company in Kenya, a
honey cooperative in Mexico, and eco-tourism operations in Mexico and Tanzania.
for Conservation International website:
http://www.conservation.org/sites/verdeventures/loans/wh leep/pages/wh leep.aspx
List of World Heritage sites: http://whc.unesco.org/en/list See "Conservation International:
Verde Ventures" and "Global Environment Facility: Small Grants Programme" in this section of
the Guidebook.
Finance Tools, 2011 30
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United States
Environmental Protection Agency
Office of the Chief Financial Officer
Center for Environmental Finance
1200 Pennsylvania Ave. NW
Washington, DC 20004
EPA-190-K-11-001
June 2011
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