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 Introduction to CTI Private Financing Advisory Network (CTI PFAN) [CTI PFAN General Introduction and Update .pdf] CTI PFAN Project Proposals - Check List and suggested Guidelines for project developers
The Private Financing Advisory Network (CTI PFAN) is a multilateral public-private partnership that nurtures promising, innovative clean and renewable energy projects by bridging the gap between investors and clean energy entrepreneurs and project developers. CTI PFAN brings together private sector companies with experience in financing climate-friendly projects and technologies to screen business plans and select the most economically viable and environmentally beneficial projects. For those entrepreneurs and businesses selected, CTI PFAN provides guidance on feasibility, project structure, investment and financing, preparation of the business plan and introductions to investors. In order to expand access to private capital markets to supplement the increasingly short supply of public resources, CTI PFAN was initiated by the Climate Technology Initiative (CTI) in cooperation with the Expert Group on Technology Transfer (EGTT) of the UN Framework Convention on Climate Change (UNFCCC). CTI PFAN is designed to be an “open source” network to fit seamlessly with existing global and regional initiatives and to be inclusive of all stakeholders with an interest in clean energy financing. CTI PFAN’s goals are to accelerate technology transfer and diffusion under the UNFCCC, reduce greenhouse gas emissions, promote low-carbon, sustainable economic development, and help facilitate the transition to a low-carbon economy by increasing financing opportunities for promising clean energy projects. CTI PFAN accomplishes this by building a network of investors, entrepreneurs, technical experts and government representatives with a common goal of increasing the viability of clean and renewable energy.
CTI PFAN is an alliance of private sector companies, gathered under the umbrella of the CTI, all experienced in providing financing and financing services to climate-friendly projects. Participants include specialist investment funds, institutional investors, philanthropic and developmental investors, strategic and industrial investors, banks as well as financing advisory consultants, all of whom are interested in triple bottom line investments that account for social and environmental values along with financial returns. CTI PFAN identifies promising clean energy businesses and projects at an early stage and provides mentoring for development of a business plan, preparation of an investment pitch, sourcing investment and growth strategy, significantly enhancing the possibility of financial closure. Projects are selected based on seven key criteria – that they are competently managed, technically viable, economically viable, sustainable, environmentally beneficial, socially responsible and contribute to a reduction in green house gas emissions. For those clean energy businesses that are selected, CTI PFAN offers a number of specific services, all of which are provided without charge:
In order to qualify for CTI PFAN support, a project first undergoes a rigorous review process based on an initial application that includes a detailed project description, underlying project economics and other readily available relevant information. Once accepted into the programme, a project is assigned a CTI PFAN advisor or “coach” from the Network who steers the project through further review stages that are designed to guide the project sponsors through the financing process to financial closure. The exact structure of the review stages is tailored to the individual project, but the second stage concentrates on the project economics and underlying viability, while the third stage focuses more on technical and engineering aspects. The final two stages are aimed at problem solving, fine-tuning of the cash flows and fulfilling the necessary conditions required by the potential investor for converting offers into committed deals.
CTI PFAN activities commenced in early 2006 and were conducted as a pilot programme up to September 2008. During this period 65 projects underwent initial review, with ten of these projects being formally accepted for receiving CTI PFAN support and inducted into the development pipeline. During the pilot phase, three projects were guided to financial closure (a small run-of-river hydro-electric power station in Mexico, a bio-diesel refinery in Brazil and biomass pelletization in South Africa) raising a total of US$ 40 million. The development pipeline is currently being expanded aggressively (see below) and further financial closures are anticipated in the near future. At the end of 2008 CTI PFAN embarked on a major scale-up programme, which will run until the end of 2012, enabling a rapid expansion of the development pipeline and establishment of regional and in-country Networks and project development operations. Based on the proven track record and current leverage rate CTI PFAN aims to raise between US$ 500-700 million of investment and financing for clean energy projects in economies in transition and developing countries over the next 3 years.
CTI PFAN generally targets projects that require total investment in the range of US$ 1-50 million, though projects outside that range may be considered. All businesses must be able to demonstrate that the investments they seek will result in greenhouse gas (GHG) reductions and social and environmental benefits. CTI PFAN is technology-neutral, and works in a range of sectors, including but not limited to biomass, wind, waste-to-energy, geothermal, hydropower, tidal, solar, clean transport, and distributed generation. Energy-efficiency programs for the industrial or commercial sectors are also eligible. Outside the Clean Energy Financing Forums, free-form project proposals may be submitted to CTI PFAN at any time. Further information on submitting proposals is available at www.cti-pfan.net.
Call for Proposals / New Members Free form project proposals may be submitted to the Global Coordinator or to the Head of the CTI Secretariat at the addresses below. Proposals may be submitted as executive summaries and / or full business plans dependent on the project development status. Guidelines for preparing executive summaries and business plans can be found at [CTI PFAN Project Proposals]. We would also be pleased to hear from investors and advisors interested in becoming members of the Network.
CTI PFAN Project Proposals - Check List and suggested Guidelines for project developers [CTI PFAN Check List for Preparation of Executive Summaries, Project Proposals / Investment Memoranda .pdf]
Related Events: - CTI side events at the COP15 - December 2009: "Mobilizing private sector financing for mitigating climate change and promoting development using CTI PFAN", and "Accelerating cooperation and financing for climate technology: Innovative programs and experiences" - CTI side event at Bonn Climate Change Talks - June 2009: "Implementing & Accelerating Technology Transfer for the Transition to a Low Carbon Economy -- Lessons from the work of CTI and UNDP -- " - CTI Side Event at COP13: "Technology Transfer - Moving Towards Implementation" - CTI Side Event at COP12: "Broadening the base of financing for technology transfer - a progress report on the Private Financing Advisory Network (PFAN)"
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