Seizing Climate Change Opportunities in Africa

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Seizing Climate Change Opportunities in Africa
UNEP Training to Financial Institutions at the UNEP FI Global Roundtable

Hotel Southern Sun The Cullinan – 21 October 2009 – one day session

Background Reading The implications of climate change and the resulting regulatory responses are having and will increasingly have considerable implications for companies, including financial institutions. While new risks are emerging, so are opportunities; those financial institutions which manage to understand these and act early will be at a competitive advantage. This applies to financial institutions in Africa which – via the Clean Development Mechanism (CDM) of the Kyoto Protocol – are provided with an attractive entry point to carbon reduction projects and, with it, to the generation and export of a new commodity: carbon credits. The aim of this training workshop is to enhance the understanding and skills of credit/risk managers, investment officers and analysts in Africa on why climate change is material to their institutions and on how to best seize the business opportunities. Specifically the workshop will help financial institutions identify business opportunities in renewable energy and carbon credit trading, and help them to better manage the risks linked to related investments or lending activities. Please note that there is no attendance fee attached to the workshop, and that the cost for lunch and refreshments will also be covered. Partial scholarships are available to cover part of your travel expenses. Please note that, furthermore, all training participants will get free access to the UNEP FI Global Roundtable on 22 and 23 October.

Target audience

Investment managers, credit / risk officers and analysts from both private and public financial institutions as well as investment vehicles with operations in Sub-Saharan Africa.

Training Objectives

The training will enhance the participants’ understanding and skills in the following areas:

  • New business risks and opportunities linked to climate change and the international climate change regime: carbon trading, energy efficiency, renewable energy, reforestation, etc.
  • Effective approaches to identify viable carbon credit projects, to navigate the CDM project cycle and required documentation, to understand the financial impact of the carbon component on project investments
  • Risk management strategies with a focus on clean energy projects, requiring innovative methods, products and solutions

Structure: 3 modules

Module 1 – An introduction to climate change and the international climate regime (120 mins)

  • The science behind climate change
  • The international climate regime – Kyoto, Bali, Copenhagen
  • Carbon Trading and the Clean Development Mechanism (CDM)
  • An African perspective: risks and opportunities

Module 2 – Green House Gas abatement and carbon finance: opportunities in Africa (140 mins)

  • Understanding carbon reduction projects
    • Developing a technically credible CDM and offset asset creation project
    • Investment analysis of emission reduction projects
    • Carbon markets: pricing trends, factors influencing carbon credit pricing
    • Carbon contracts and Emissions Reduction Purchase Agreements (ERPAs)
    • Key risks in a CDM project
    • Financing CDM projects
  • Strategies to maximize value from carbon reduction projects
    • Role of the public and the private sector in CDM financing
    • Mainstreaming carbon finance into Banking and Finance
    • Messages to policy makers and project developers

Module 3 – Clean energy projects: managing investor risks (90 mins)

  • Identifying and assessing the risks
    • Clean energy specific risks
      • Mid to large size projects
      • Small scale projects
    • Risk assessment and due diligence
  • Risk mitigations and Risk transfer
    • Due diligence; assessment methodology
  • Dealing with the risks
    • Insurance and financial products
    • Weather covers
    • Carbon products
    • Innovative instruments, quanto structures

Trainers

  • Glenn Hodes, Senior Energy Economist, UNEP Risoe Center, Denmark
  • Ben Lashkari, Swiss Re, United Kingdom
  • Guy Midgley, South Africa National Biodiversity Institute, South Africa
  • Nikolaus Schultze, First Climate, Switzerland
  • Geoff Sinclair, Standard Bank, South Africa

With the financial support of the UNEP and the BMU African Carbon Asset Development (ACAD) Facility.

   

,,,

Seizing Climate Change Opportunities in Africa
UNEP Training to Financial Institutions at the UNEP FI Global Roundtable

Hotel Southern Sun The Cullinan – 21 October 2009 – one day session

Background Reading The implications of climate change and the resulting regulatory responses are having and will increasingly have considerable implications for companies, including financial institutions. While new risks are emerging, so are opportunities; those financial institutions which manage to understand these and act early will be at a competitive advantage. This applies to financial institutions in Africa which – via the Clean Development Mechanism (CDM) of the Kyoto Protocol – are provided with an attractive entry point to carbon reduction projects and, with it, to the generation and export of a new commodity: carbon credits. The aim of this training workshop is to enhance the understanding and skills of credit/risk managers, investment officers and analysts in Africa on why climate change is material to their institutions and on how to best seize the business opportunities. Specifically the workshop will help financial institutions identify business opportunities in renewable energy and carbon credit trading, and help them to better manage the risks linked to related investments or lending activities. Please note that there is no attendance fee attached to the workshop, and that the cost for lunch and refreshments will also be covered. Partial scholarships are available to cover part of your travel expenses. Please note that, furthermore, all training participants will get free access to the UNEP FI Global Roundtable on 22 and 23 October.

Target audience

Investment managers, credit / risk officers and analysts from both private and public financial institutions as well as investment vehicles with operations in Sub-Saharan Africa.

Training Objectives

The training will enhance the participants’ understanding and skills in the following areas:

  • New business risks and opportunities linked to climate change and the international climate change regime: carbon trading, energy efficiency, renewable energy, reforestation, etc.
  • Effective approaches to identify viable carbon credit projects, to navigate the CDM project cycle and required documentation, to understand the financial impact of the carbon component on project investments
  • Risk management strategies with a focus on clean energy projects, requiring innovative methods, products and solutions

Structure: 3 modules

Module 1 – An introduction to climate change and the international climate regime (120 mins)

  • The science behind climate change
  • The international climate regime – Kyoto, Bali, Copenhagen
  • Carbon Trading and the Clean Development Mechanism (CDM)
  • An African perspective: risks and opportunities

Module 2 – Green House Gas abatement and carbon finance: opportunities in Africa (140 mins)

  • Understanding carbon reduction projects
    • Developing a technically credible CDM and offset asset creation project
    • Investment analysis of emission reduction projects
    • Carbon markets: pricing trends, factors influencing carbon credit pricing
    • Carbon contracts and Emissions Reduction Purchase Agreements (ERPAs)
    • Key risks in a CDM project
    • Financing CDM projects
  • Strategies to maximize value from carbon reduction projects
    • Role of the public and the private sector in CDM financing
    • Mainstreaming carbon finance into Banking and Finance
    • Messages to policy makers and project developers

Module 3 – Clean energy projects: managing investor risks (90 mins)

  • Identifying and assessing the risks
    • Clean energy specific risks
      • Mid to large size projects
      • Small scale projects
    • Risk assessment and due diligence
  • Risk mitigations and Risk transfer
    • Due diligence; assessment methodology
  • Dealing with the risks
    • Insurance and financial products
    • Weather covers
    • Carbon products
    • Innovative instruments, quanto structures

Trainers

  • Glenn Hodes, Senior Energy Economist, UNEP Risoe Center, Denmark
  • Ben Lashkari, Swiss Re, United Kingdom
  • Guy Midgley, South Africa National Biodiversity Institute, South Africa
  • Nikolaus Schultze, First Climate, Switzerland
  • Geoff Sinclair, Standard Bank, South Africa

With the financial support of the UNEP and the BMU African Carbon Asset Development (ACAD) Facility.