On 10-13 October 2017 a workshop was organized within the framework of joint project of the United Nations Development Programme in Uzbekistan, Center for Hydrometeorological Service under the Ministry of Emergency Situations of the Republic of Uzbekistan and United Nations Environment Programme "Green Climate Fund Readiness Programme in Uzbekistan" dedicated to climate investments and climate financing. Its aim was raising awareness and building capacity of national financial institutions on the issues of climate financing and investments and financial analysis of the projects in the field of climate.
In the four-day workshop, conducted jointly with the representatives of the International Center for Clean Air Policy participated about 40 representatives of ministries and departments, banking institutions, non-governmental non-profit organizations of Uzbekistan.
The workshop consisted of 8 interrelated parts and was accompanied by a group work. In the first part of the workshop, the participants got acquainted with the requirements of the Green Climate Fund, its processes and types of funded projects. It was noted that projects financed by the Fund could be aimed at both mitigating climate change by reducing or preventing greenhouse gas emissions and adapting to climate change by adjusting to current or expected climatic influences and conditions. In addition, brief information was presented on the results of the GCF Board Meeting, which had been held on October 2, 2017 in Cairo, Egypt.
In the second part key financial mechanisms and instruments relevant to climate change programs and projects were examined. In particular, as Mr. Stan Kolar of the Clean Air Policy Center noted, climate financing includes many mechanisms, funds and instruments of the UNFCCC, multilateral banks, individual countries and the private sector. However, from among the climate financial institutions the most notable one is the Green Climate Fund. The purpose of the fund is to assist developing countries in transitioning to low-carbon and climate-resilient development path by financing programs and projects for climate change adaptation and mitigation.
The third part of the workshop was dedicated to the study of examples of financial mechanisms as appear in the projects implemented in such countries as the Philippines (installation of distributed solar energy) and Morocco (development of Argan orchards in degraded environment).
Within the framework of the fourth part, the participants studied the issues of selecting and developing financial mechanisms for project proposals submitted to the GCF. It was noted that the main financial instruments used in the GCF are grants, loans, equities and liabilities. In most project proposals submitted to the GCF, as experience shows, these financial instruments are often combined. For example, it can be in the form of grants and loans. When assessing project proposals, the GCF pays special attention to financial information (expenses) and investment performance criteria (including efficiency). Another important factor in the evaluation of proposals is co-financing. The GCF does not have definite and established thresholds for co-financing, but nevertheless, it prefers projects that attract large amounts of co-financing.
The fifth and sixth parts of the workshop were dedicated to financial evaluation and risk assessment in climate-related projects. The last part of the workshop participants discussed specific aspects of the financial mechanisms as appear in project ideas in Uzbekistan.
This workshop was the last in a series held jointly with Clean Air Policy Center. In the previous two thematic workshops (which took place on July 26-28 and August 22-25, 2017), participants were able to familiarize themselves in detail with the requirements and procedures of the GCF, methods and instruments of financing, and also increased their knowledge and skills in preparing project proposals that meet requirements of the GCF, for obtaining funding.
For reference: "Green Climate Fund Readiness Programme in Uzbekistan" is being implemented to assist the Government of the Republic of Uzbekistan in strengthening its national capacities to effectively and efficiently plan for, access, manage, deploy and monitor climate financing, in particular through the GCF. One of the main objectives of the project is to assist in the preparation of project proposals submitted to the GCF for financing.