Private Financing Advisory Network (PFAN)

PFAN is an existing multilateral public private partnership, initiated by the Climate Technology Initiative (CTI), a technology cooperation mechanism under the International Energy Agency, and the Expert Group on Technology Transfer (EGTT) of the UNFCCC. To scale up operations for larger impact by a factor of two to five times from the current budget level of USD 2 million, PFAN is making governance changes, including the move to UNIDO as a new host organization, and developing a partial cost-recovery business model in order to expand its contributors base, decrease dependence on donor resources, and provide greater visibility, financial sustainability, and ease of funding. PFAN matches private financing with innovative low carbon, climate resilient projects in developing countries and emerging economies with a small public investment through a low-risk, low overhead networking model based on fixed fee project development, transaction advisory services, and investor forums, meeting a need recognized in international development and climate circles. PFAN supports companies for low carbon, climate resilient projects in the areas of upstream technology development and downstream technology deployment for renewables, energy efficiency and climate adaptation. It mobilizes the expertise of private sector companies in financing climate-friendly projects and technologies to screen business plans and select the most economically viable and environmentally and socially beneficial projects. For the entrepreneurs and businesses selected, PFAN provides guidance on economic feasibility, project structure, investment and financing, preparation of the business plan, and introductions to investors. PFAN serves three functions: 1. Capacitate entrepreneurs and businesses to develop bankable projects 2. Mitigate investor risk 3. Facilitate project funding to increase and mainstream investments in low carbon, climate resilient projects for sustainable development This contribution is to support a request for a 1-year extension of the Sida PFAN Initiative on Clean Energy Financing (SPICEF) activity program that has been implemented in Sub-Saharan Africa in the countries of Uganda, Kenya, Tanzania, Rwanda, Ethiopia, Zambia, Mozambique and Zimbabwe.