Sids Dock Risk Financial Facility for Projects

Sids Dock Risk Financial Facility for Projects

SIDS DOCK
Third Meeting of the Executive Council
Via Teleconferencing
30 November 2016

 

                                                     SIDS DOCK WORK PROGRAMME BRIEFING NOTE
                                                 SIDS DOCK RISK FINANCIAL FACILITY FOR PROJECTS

SIDS DOCK, in partnership with regional development banks and the Caribbean Community Climate Change Centre (CCCCC/5Cs) and the Secretariat of the Pacific Environment Programme (SPREP), is preparing a funding proposal for the Green Climate Fund (GCF), to support a cross-cutting risk mitigation project initially focused on the Caribbean Community (CARICOM). In this connection, SIDS DOCK intends to seek a grant from the GCF’s Project Preparation Facility.

As a catalyst for sustainable development, SIDS DOCK is developing a Risk Mitigation Platform to address sustainable energy and climate change challenges and mobilize private investment for renewable energy and efficiency projects in CARICOM. The Platform will be built on three pillars:

  • Risk Mitigation Facility: providing credit enhancement and risk mitigation instruments to enable bankability of renewable energy and efficiency projects;
  • Co-Financing Facility: providing co-financing of project equity and debt to support small standalone projects and the participation of local developers;
  • Technical Assistance Facility: providing technical assistance to address regulatory and legal bottlenecks, institutional capacity deficits and the shortage of risk capital.

The Platform is a public-private partnership (PPP) that will leverage international donor, multilateral and climate-focused stakeholders to crowd-in direct private investment. By helping CARICOM Member States to overcome financial, technological and regulatory obstacles, the Platform will play a critical role in facilitating the transition to a sustainable energy economy.

The Platform is both scalable and replicable. Although the initial geographic focus will be on the Caribbean region, the Pacific and Africa and Indian Ocean regions will be considered in subsequent phases of work. Further, as a SIDS-owned project that takes a risk mitigation approach, the Platform represents a paradigmatic shift from existing financing for climate mitigation in SIDS.

SIDS DOCK is preparing a funding proposal for the GCF to support the Platform with anchor equity. To this end, SIDS DOCK proposes to submit a [USD 500,000] grant from the GCF’s Project Preparation Facility, to finalize the project design and structuring and complete due diligence.

 


SIDS DOCK Secretariat
C/o Caribbean Community Climate Change Centre

2nd Floor, Lawrence Nicholas Building                                                   Tel: (501) 822-1104 or 1094
P.O. Box 563, Bliss Parade                                                                         Fax: (501) 822-1365
Belmopan, BELIZE                                                                                       www.sidsdock.org
interimsec.sidsdock@caribbeanclimate.bz