Project Title

APEC Green Energy Finance Capacity Building Program 

Project Year

2017   

Project Number

EWG 04 2017A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EWG 04 2017A 

Project Title

APEC Green Energy Finance Capacity Building Program 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Energy Efficiency 

Project Year

2017 

Project Session

Session 1 

APEC Funding

49,860 

Co-funding Amount

56,980 

Total Project Value

106,840 

Sponsoring Forum

Energy Working Group (EWG) 

Topics

Energy 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

Small and Medium Enterprises Working Group (SMEWG) 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Chinese Taipei 

Co-Sponsoring Economies

Australia; Japan; United States 

Expected Start Date

30/06/2017 

Expected Completion Date

31/12/2017 

Project Proponent Name 1

Chuang Cheng-Hsuan 

Job Title 1

Officer 

Organization 1

Bureau of Energy, Ministry of Economic Affairs 

Postal Address 1

No 2 Fuxing N Rd, Zhongshan District, Taipei 

Telephone 1

886-2 27757714 

Fax 1

Not Applicable 

Email 1

chchuang@moeaboe.gov.tw 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Chuang Cheng-Hsuan 

Project Summary

In response to the challenges of climate change and energy security, APEC Leaders have made region-wide commitment of reducing aggregate energy intensity in the region by 45% by the year 2035, over the level in 2005, and doubling renewable energy in the regional energy mix by the year 2030, as compared to the level in 2010. To achieve these goals, financial sustainability of renewable energy and energy efficiency projects is the key to the success of transformation to low carbon economy and requires more policy consistency, higher certainties of cost and return, and the stronger participation of private sectors. 

APEC Green Energy Finance Initiative was endorsed by APEC EMM12 declaration of 2015, aiming to provide a framework and platform for dialogue and cooperation specifically for green energy finance in the APEC region. Under this Initiative, a capacity building program that engages experts from energy and finance fields across the region will be held in late 2017 to accelerate the dissemination of best practices of green energy finance.

Relevance

In response to the challenges of climate change and energy security, APEC leaders have reaffirmed the commitment to develop green energy, including doubling renewable energy in the regional energy mix by 2030, as compared to the level in 2010, and reducing aggregate energy intensity in the region by 45% by 2035, over the level in 2005. According to Asia-Pacific Energy Research Center (APERC)’s study, these goals cannot be achieved in BAU, yet can be met in high renewables and improved efficiency scenario, if supportive policies and necessary investment are in place. 

Although a majority of APEC economies have been actively supporting green growth, difficulties remain in terms of maintaining the pace of growth in investment in low-carbon energy sources and in attaining the level of investment needed to realize a green economy. High upfront costs, subsidies on fossil fuels, lack of coherent and stable policy and regulatory framework, insufficient objective information and shortage of improved analytical tools of risks can influence the sustainability of investment in renewable energy and energy efficiency. Such barriers are commonly shared by member economies around the region and need to be properly addressed by policy makers and private sectors. It is especially important to channel the financial resources to the investments that are favourable for green energy in developing economies where infrastructure is rapidly built to shape the development direction of its own. 

This project is a part of APEC Green Energy Finance Initiative which was endorsed by energy ministers in EMM12 in 2015. Through educational programs and the exchange of best practices, this project is expected to engage public and private stakeholders from energy and finance fields with the focus on how the barriers to green energy finance can be mitigated。Experts from developing economies will be invited to the Capacity Building Workshop to share their individual financing opportunities and challenges in terms of green energy development and to benefit from the comments and expertise provided by experts of relevant international organizations and developed economies. A roundtable session will also be designed in the Capacity Building Workshop to accommodate dialogue on how joint efforts of developed and developing economies can be conducted to secure appropriate and sufficient funding for the region’s low carbon transition. 

This project directly falls under Rank 2 to support the APEC Strategy for Strengthening Quality Growth, where energy efficiency, energy security and energy resiliency including the development of low carbon technology and alternative energy sources are valued. This project also follows criteria under Rank 1, as the best practices sharing of green energy finance and Public-Private Partnership (PPP) in the fields of energy and finance will contribute to the trade and investment facilitation and liberalization as well as next generation trade and investment issues.

Objectives

1)  To build capacity in the field of green energy finance by inviting in-depth discussion and knowledge sharing on policy measures, regulation frameworks, and financial instruments related to green energy finance;

2)  To create a platform where stakeholders from public and private sectors can exchange expertise on technology roadmaps, data on risks or returns, market forecasts and analytical tools where risk can be properly assessed; and

3) To seek dialogues and collaboration between EWG and other stakeholders under APEC, like ABAC, and SMEWG on green energy finance for greater synergy among APEC on this issue.

Alignment

This project is in alignment with APEC Leaders’ commitments to:

· reducing APEC’s aggregate energy intensity by 45 percent by 2035, over the level in 2005;

· enhancing the proportion of renewable energy – to double the share of renewables by 2030 in APEC’s energy mix, as compared to the level in 2010;

· pursuing sustainable growth by achieving sustainable and resilient energy development in Asia-Pacific region. 

It is also in alignment with EWG’s workplan/ strategic plan to: 

·  meeting instructions from APEC energy ministers (EMM12) to implement APEC Green Energy Finance Initiative in support of the financial sustainability of renewable energy and energy efficiency.

·  supporting EWG’s five-year strategic plan as well as Work Plan for 2016 to promote energy trade and investment.

·  coinciding with EWG’s increasing focus in working with relevant multilateral fora and organizations on cross-cutting energy issues.

TILF/ASF Justification

In face of the increasing concern on energy security, energy access and climate change, green energy development has and will become more crucial in APEC developing economies. The capacity building program will support APEC developing economies in a way of reinforcing their knowledge in promoting green energy finance, by including enlightening sessions on market information, policy trends and experience sharing, as well as in-depth discussion on the challenges and possible solutions for green energy finance in each participating APEC developing economies.

Beneficiaries and Outputs

Outputs: The output of this project will include:

1)  Capacity Building Workshop: A two-day capacity building workshop will be held in late 2017. Experts from APEC and relevant international organizations will be invited to share diverse expertise and experience on green energy finance from global and regional level, including green energy policies and incentives and actual practices of green energy project financing.  Delegates from member economies will also be encouraged to exchange their views on barriers of green energy finance and potential solutions to them.

2)  Policy Recommendation Paper: The Workshop will be finalized with a roundtable discussion through which a policy recommendation paper will be generated as the conclusion and be reported to EWG members in EWG54 meeting.

3)   Project Report: A final project report will include meeting materials and member economies’ feedback to the workshop, as well as analysis of regional policies on green energy finance. 

Outcomes: In the medium-term, the outcomes are expected to achieve including: 

1)  This project will enhance member economies’ capacity by exploring the full spectrum of green energy finance issue, including global and regional green energy market outlook, major barriers of green energy finance, legislative and policy framework needed for supporting green energy development, and etc. It can be helpful for member economies in designing suitable policy framework and mechanisms, based on the lessons learnt from their peers.

2)  The policy recommendation paper based on knowledge exchange and best practices shared in the workshop will provide guidance for APEC economies, research centers, and sub-fora of EWG to further identify potential gaps in accelerating green energy finance and to consider further works under APEC Green Energy Finance Initiative, including enhanced partnership with industries and further cooperation with other APEC working fora.

3)  The project will provide basis for future joint work on cross-fora knowledge, data, and experiences exchange sharing and partnership with international organizations and non-APEC experts in terms of green energy finance. 

Beneficiaries: This is a triple win project that will benefit green energy industries, financial institutions and energy consumers. Affordable financing sources are important for project developers to carry out stable and sustainable development of green energy project. Nevertheless, risk premiums to renewable energy projects can be overestimated as financial institutions are generally not acquainted with the construction and operation of renewable energy projects. In terms of energy efficiency projects, high upfront costs usually prevent business and consumers from getting involved in. By policy and experience sharing of this project, stakeholders’ knowledge gap on green energy project can be mitigated, while green energy industries and consumers can secure sufficient investment in green energy projects and financial institutions can acquire reliable financing opportunities. 

To be more specifically, policy makers, financial institutions, research institutes and green energy industries across the APEC region will be invited to share and benefit from best practices in green energy finance, in accordance with the guidelines on non-member participation. These will include experts from OECD, FS-UNEP, ASEAN Centre for Energy (ACE) and Asia Pacific Energy Research Centre (APERC) to highlight global and regional green energy development outlook; G20 Green Finance Study Group to share research on accelerating green finance in a global scale, with the observation and implementation experience on framing policy measures for renewable energy and energy efficiency fields from International Renewable Energy Agency (IRENA) and World Energy Council (WEC) respectively; multilateral financial institutions including World Bank and Asia Development Bank (ADB) to contribute by providing insight into green energy project financing. In addition, APEC Small and Medium Enterprises Working Group (SMEWG) will be invited to enrich the discussion from the perspective of business circle on what roles small and medium enterprises can play in regional green energy development and how it can sustain. 

Through this project, the participants from APEC or non-APEC fora will be able to explore opportunities for further cooperation with integrated efforts and resources on green energy finance development. This project will also assist developing economies in formulating the policy framework, designing suitable incentives, and seeking the opportunities of building further partnership based on the expert network provided by this project. Policy makers will have a better understanding of global and regional green energy market trends and promotional framework as well as supporting mechanism that are suitable for facilitating green energy finance. For financial institutions such as banks and investors, it will increase their confidence in participating in green energy projects by providing the access to knowledge for identifying, estimating and managing the risk of green energy projects. For green energy industries and business, especially for small and medium enterprises who play important role in the supply chain, it will help them improve credibility of their green energy projects by introducing various financial resources and life cycle management of green energy project.

Dissemination

1) The information on the Capacity Building Workshop will be disseminated in hosting economy through media exposure as well as through APEC platform as PO will provide news materials for APEC Secretariat and media of interested economies for press release.

2) A policy recommendation paper will be shared with APEC members in EWG 54 meeting scheduled in November 2017, as well as be submitted to SMEWG and ABAC for comments and inputs in appropriate manner. The final report is planned to be submitted by the end of 2017 and seek publication in accordance with APEC publication Guidelines.

3) The outcome of this project, including all materials of the Capacity Building Workshop, will be sent to all EWG members through APEC Secretariat. 

The target audience, as mentioned above, will come from both public and private sectors including APEC or non-APEC fora, policy makers, banks, financial institutions, and green energy industries. Essential stakeholders such as various types of investors, research institutes, NGOs, or entities from non-APEC economies may also be included within this project.

Gender

This project will encourage female participation by inviting female experts and participations. It will also do a statistical analysis of gender participation, and compile assessment and self-review in the final report. As the women's role and employment in service sector has been increasing in APEC region, this project will benefit women by strengthening their ability to participate in green energy projects generally. More importantly, as energy poverty is prevailed in some APEC developing economies where energy access is limited to general public, traditional biomass are usual major energy sources which requires great efforts from women to utilize; also, traditional biomass energy is typically polluting and can be harmful to women’s health. Therefore, one positive influence of facilitating green energy finance to prevail green energy deployment in developing economies is to liberalize women from heavy daily labor by providing modern energy access, which will improve their livelihood and enable them to have greater opportunity in getting education.

Work Plan

Timeline

Key Activities

Participants Involved

Outputs

Jun-July. 2017

ž Analyze issues and compose meeting agenda

ž Invite advices on workshop arrangement from APEC secretariat, EWG members and other APEC fora to provide ideas by circulating General Information

ž Draft agenda and list of participants

July-Aug. 2017

ž Invite experts from public and private sectors as speakers

ž Call for participants

ž Invite member economies and APEC fora to participate in the workshop

ž Contact developing economies and provide considerable support such as travel expenses

ž Workshop arrangement

ž Promotional materials

Sep-Oct.2017

ž Host the workshop

ž All participants from both public and private sectors attend this workshop

ž Make policy recommendation paper in the final session

ž Capacity building workshop

ž Policy recommendation paper

Nov-Dec.2017

ž Share project outcome and policy recommendation paper with member economies in EWG54 meeting

ž Compose final report including research analysis and follow-up recommendation for green energy finance in the APEC region

ž Member economies provide comments and feedback on project outcome and policy recommendation paper in EWG54 meeting and out of session

ž Final report

Risks

1) Lower rate of participation from members, especially from developing economies: The rate of participation may turn out to be low if issues addressed in this workshop do not correspond to the needs and interests of member economies or because of budgetary limits of individual economy. To manage the risk, this project will incorporate members’ advice and opinions on the agenda and communicate closely with interested economies on financing their trip.

2)  Confusing theme: This project aims to explore various approaches of promote green energy finance. As finance is core to the project, the discussion will include but not be limited to promotional policies of green energy, Besides, as “green energy” in this project refers to both renewable energy and energy efficiency, perspectives for both fields will be provided, instead of focusing on renewable energy or energy efficiency alone. To manage the risk, this project will carefully design the theme for each session in the workshop and ensure full communication with expert speakers.

Monitoring and Evaluation

1)  The success of Capacity Building Workshop will build on diversified expertise and cross-cutting dialogue presented by invited speakers from governmental, business and academic circles.

A) Feedback form and emails: The Capacity Building Workshop expects to invite around 120 participants from all member economies and will develop a feedback form distributed to all participants. All opinions obtained will be integrated into the final report of this project.

B) Analysis on participants: This Project will construct an analysis on participants with several elements, e.g., economy, sector, type of stakeholder, gender, and etc. to examine whether the workshop is well attended by diversified audience. Major quantifiable indicators are as follows:

Elements

Indicator

Target

Economies

Quantity/Percentage

16/75%

(including 50% of Developing Economies)

Sector

Percentage

Energy Sector (50%)

Financial Sector (40%)

Others (10%)

Stakeholder

Percentage

Policy Makers (40%)

Institution (20%)

Business (30%)

Others (10%)

Gender

Percentage

40-50% of female participants

2)  Policy recommendation paper: A policy recommendation paper will be reported to the EWG meeting as a recommendation for next-step cooperation in green energy finance. The recommendation will also be shared with other business fora such as ABAC or sub-forum of other APEC working groups if feasible.

3) Final report and contact list of experts: A final report including research analysis and follow-up recommendation for cooperation on enhancing green energy finance in the APEC region will be submitted with contact list of experts.

Linkages

This project will seek to cooperate with potential stakeholders who also engage in green energy project promotion and capacity building, such as:

1) APEC: SMEWG, APERC; and

2) Non-APEC: International or regional forums, e.g., the OECD, IEA, IRENA, WEC, ACE, World Bank, ADB.

The Project Overseer will ensure close and practical cross-fora collaboration with APEC fora with common interests. As the project is co-sponsored by SMEWG, this project will also submit policy recommendation paper to SMEWG in an appropriate manner to seek feedback and co-endorsement, as well as request inputs from SMEWG in terms of generating final report. 

As a part of work under APEC Green Energy Finance Initiative, in the preparation process, this project has reviewed previous projects implemented within EWG and other fora. Most of the related projects have fruitful outputs in policy review, broad dialogues, and issue mapping in green energy finance. This project is an extension to these efforts and focuses especially on capacity building, including best practices sharing on designing of incentive policies, risk management and assessment, and green energy project governance. To avoid duplication with previous efforts, this project has communicated with member economies under EWG prior to Concept Note submission. 

Currently, APEC is the one of the most diverse regime for regional and international cooperation. In terms of energy, APEC is comprised of largest energy exporting economies and importing economies, as well as most advanced economies in terms of green energy technology and most needed economies in terms of energy transition. Therefore, APEC will be the best sources for funding this project to address the common interest and challenges shared in this region.

Sustainability

1) To ensure project sustainability, this project will create a learning network for capacity building to support knowledge sharing among member economies.

A)  An expert list will be compiled and shared with member economies to support further consultation in terms of green energy financing and project development.

B) PO will keep track of the feedbacks collecting from member economies regarding Capacity Building Workshop, policy recommendation paper and draft final report, and to incorporate the opinions into future cooperative actions under APEC Green Energy Finance Initiative.

2)  As part of the work under APEC Green Energy Finance Initiative which is to support the financial sustainability of renewable and energy efficiency in APEC region, this project will directly contribute to member economies’ capacity building and enhance following activities on green energy finance under this initiative. This project will work with EWG-related expert groups (Expert Group on New and Renewable Energy, and Expert Group on Energy Efficiency and Energy Conservation) to delve into the knowledge gap and issues identified in the Capacity Building Workshop.

3)  This project will create the opportunities for APEC and non-APEC fora to build further partnership on green energy finance. It may urge EWG to conduct further cooperation on in-depth efforts on data collection, case studies, capacity building programs and further research, in alliance with SMEWG. The learning network built by this project may have multiplier effects on peer collaboration so that to mitigate some green energy finance barriers from private stakeholder side.

Project Overseers

The Project Overseers is Ms. Cheng-Hsuan Chuang, the Officer of Planning Division, Bureau of Energy, Ministry of economic Affairs, Chinese Taipei. The main point of contact responsible for this project is Ms. Janet Song, assistant research fellow of Taiwan Institute of Economic Research.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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