The GIZ is expanding its business model from technical assistance (TA) provider as well as management and deployment of grants only to development, deployment and management of blended climate finance instruments. To develop its internal capacity in blended climate finance, GIZ contracted Econoler to design and deliver a three-day training session focused on the full cycle design, implementation and evaluation of climate finance programs. The COVID-19 pandemic imposed a change in training delivery from in-person (planned in April 2020) to virtual over six half-day sessions (September-October 2020).
Description of services:
Econoler designed a detailed training program on the financing of climate projects that took into consideration the needs of GIZ and its strategic positioning in the climate finance space. Econoler developed the content in close coordination with GIZ staff to ensure it covered all topics of interest to GIZ. The following main topics were covered in the training material:
Module 1. Introduction
- Overview of climate finance, including: climate finance flows and definitions; sources and uses of climate funds; Green Climate Fund investment criteria and project cycle; blended finance and de-risking investments; carbon finance; and the mechanisms of Article 6 of the Paris Agreement.
Module 2. Idea, Concept, Design, Proposal and Funding of Climate Finance Programs
- Market barrier analysis and selection of financial instruments including: how to choose the right blended financial mechanism in the right set of circumstances (pros and cons of different types of mechanisms); relationship between financing mechanisms and the level of market development; adaptation to market conditions as a prerequisite for effective and efficient deployment; and sustainability requirements;
- Defining impact requirements to achieve the strategic objectives and result areas including: definition of market baselines; selection of impact indicators; effectiveness and efficiency trade-offs (impact vs. market penetration, speed of deployment vs. additionality, concessionality vs. impact and market momentum);
- Financial mechanism analysis and design.
Module 3. Climate Finance Program Implementation
- Creating a high value TA support package alongside the program;
- Expert terms of references (TORs) and tendering for TA implementation;
- Prospecting/origination of a sub-project pipeline;
- Oversight, climate-related risk management and opportunities;
- Optimizing operation during implementation (effectiveness and efficiency);
- Communications, marketing and promotion (enhancing market readiness);
- Institutionalization of the funding mechanism (sustainable development and mainstreaming, sustainable practices, gender management).
Module 4. Wrap-Up Program Examples
- Practical examples of design implementation and evaluation of a number of climate finance programs in countries where GIZ operates;
- Lessons learned;
- Concluding remarks to wrap up the training session.
Econoler had to reorganize the training material by dividing each module (initially planned to be delivered in one day) into different sessions of three to 3.5 hours each. Econoler trainers delivered a total of six virtual training sessions via MS Teams. The training used PowerPoint presentations, quizzes, Q&As and topic discussions.
The vast majority of participants rated the training as “excellent” and the remainder rated it “very good”. The training resulted in a number of ideas from GIZ staff for new programs and initiatives in the countries of operation, which were discussed between the participants and training team in the weeks after the training.