Fast-Start Financing and Clean Energy Initiatives

Canada’s fast-start financing supports greenhouse gas abatement opportunities and aims at catalyzing private sector financing for clean energy projects. Canada works with the International Finance Corporation (IFC), the Inter-American Development Bank (IDB) and other partners to achieving long-term financing and mitigation goals. Canada also supports activities to help developing countries strengthen their capacity to implement their obligations under the UNFCCC and works with partner countries to develop and implement Nationally Appropriate Mitigation Actions (NAMAs).

Funding Recipient/Project: Mexico/Peru/Costa Rica - Nationally Appropriate Mitigation Action (NAMA) in the Housing Sector in Collaboration with the Energy Efficiency Exporters Alliance(EEEA)
Canada’s Contribution: $3.5 million
Funding Period: 2011/12 and 2012/13
Targeted Country/Region: Latin America
Project Description: This initiative provides technical and financial support to Mexico, Peru and Costa Rica for the development and implementation of mitigation actions in the housing sector through capacity building, feasibility studies and pilot projects.
Results Achieved/Expected: Once implemented, greenhouse gas emissions from the housing sector will be significantly reduced.  As of May 2012, stakeholder and industry consultation was completed in each country which has led to the development of detailed workplans, terms of reference and project agreements.  EEEA has worked intensively with partners countries to (1) identify partner country priority mitigation actions in the area of low carbon housing; (2) conduct site assessments of existing projects to identify baselines and mitigation opportunities; (3) conduct capacity building workshops to provide training to government, academic and industry stakeholders that will contribute to the project; (4) establish Steering Committee and Issue Area Sub-Committees that have identified the NAMA vision, priority theme areas and commenced a multi-stakeholder consultation to define and evaluate program and policy actions at the national level to achieve low carbon housing; and (5) purchase equipment necessary for demonstration projects that will provide a capacity building opportunity for the projects including monitoring equipment that has been installed in Mexico to begin collecting data for MRV as part of Mexico's NAMA efforts.


Funding Recipient/Project: Mexico/Colombia/Chile/Dominican Republic - Nationally Appropriate Mitigation Action (NAMA) in the Waste Management and Landfill Sector in Collaboration with the Center for Clean Air Policy (CCAP)
Canada’s Contribution: $2.35 million
Funding Period: 2011/12 and 2012/13
Targeted Country/Region: Latin America
Project Description: This initiative provides technical and financial support to Mexico, Colombia, Dominican Republic and Chile for the development and implementation of mitigation actions in the landfill gas sector through capacity building, feasibility studies and pilot projects. 
Results Achieved/Expected: Once implemented, greenhouse gas emissions from the waste management and landfill sector will be significantly reduced. Stakeholder and industry consultation was completed in each country which has led to the development of detailed workplans. CCAP has worked intensively with partners countries to (1) define mitigation actions to take in each established priority area such as reduction of organics going to landfills, composting, increased recycling, flaring or energy recovery of landfill gas, etc.; (2) assess environmental benefits (including GHGE reductions)and other co-benefits; (3) define current prevailing practices in each of the focal areas of the integrated NAMA, (4) define and evaluate the policy actions at the national and local levels, and steps that need to be taken to achieve each action/result; and (5) identify relevant stakeholders who are key to the desired results.


Funding Recipient/Project: Mexico/Colombia – Nationally Appropriate Mitigation Action (NAMA) in the Oil and Gas Sector in Collaboration with the Petroleum Technology Alliance Canada (PTAC)
Canada’s Contribution: $3 million
Funding Period: 2011/12 and 2012/13
Targeted Country/Region: Mexico and Colombia
Project Description: This initiative provides technical and financial support to Mexico and Colombia for the development and implementation of mitigation actions in the oil and gas sector through capacity building, feasibility studies and pilot projects.  Once implemented, greenhouse gas emissions from the oil and gas sector will be significantly reduced.
Results Achieved/Expected: PTAC and its Canadian industry partners conducted several initial technical sites visits to systematically assess historical production accounting and energy utilization data to establish baselines. These holistic energy audits of several facilities in Mexico and Colombia also allowed Canadian expert to screen for potential opportunities to reduce emissions and energy consumption. Canadian equipment and Canada-made software have been deployed and emission baselines have been established for many upstream and downstream oil and gas facilities.


Funding Recipient/Project: Global Alliance for Clean Cookstoves
Canada’s Contribution: $1.8 million
Funding Period: 2011/12 and 2012/13
Targeted Country/Region: Colombia, Ghana, Mexico and Peru
Project Description: This contribution will support the development and implementation of plans and strategies for the deployment of clean cookstoves in key developing and vulnerable countries. It will also support the study and quantification of the benefits of climate-friendly cookstoves, including the development of emissions criteria and standards.                                      
Results Achieved/Expected: Detailed country-specific plans and strategies have been developed for four countries (Colombia, Ghana, Mexico and Peru) to support the deployment of clean cookstoves. The implementation of these strategies will start in 2012-2013. The Global Alliance also held a capacity building workshop in Amsterdam, Holland in February on the development of a globally recognized performance standard for cookstoves and fuel sources.  With renowned experts from all over the world, the Global Alliance started the standards development process supported by field testings, and detailed analyses of data from global testing facilities.  The Global Alliance also held a regional workshop in Bamako, Mali to support the development of its programme in Africa through the Economic Community Of West African States (ECOWAS) forum. A political coup prematurely put an end to the workshop.


Funding Recipient/Project:  International Finance Corporation (IFC) - Canada's Climate Change Program
Canada’s Contribution: $291.5 million
Funding Period: 2011/12 and 2012/13
Targeted Country/Region: Multiple countries and regions
Project Description: As part of Canada’s commitment to support mitigation efforts, Canada provided $291.55 million to IFC to support a broad portfolio of clean energy projects in developing countries. IFC uses this Fund for low-cost financing and grant-based technical assistance to address private clean energy investment barriers, and serves a catalytic role to enable clean energy initiatives to move forward.
Results Achieved to Date: As of March 31, 2012, 62 projects were reviewed by the IFC, with 8 projects approved, representing a total of US$36.4 million in direct project funding from the Canada Fund, levering US$435.3 million in funding from IFC’s core funding and other multilateral development banks, and US$82.3 million in private sector investment in developing countries. It is expected that these projects will lead to 689,000 tons of CO2 equivalent of reduced or avoided emissions per year. A further 30 projects are under development for potential consideration by the Fund.

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