The World Bank (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Wa5 . 3 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION M G M Cable Address: INDEVAS December 20, 2013 Mr. Marco Berg Climate Cent Foundation Freiestrasse 167 8032 Zurich Switzerland Dear Mr Berg, Trust Fund Administration Agreement between Climate Cent Foundation and the International Bank for Reconstruction and Development concerning the Carbon Initiative for Development (Ci-Dev) Readiness Multi-Donor Trust Fund (No. 072039) 1. The International Bank for Reconstruction and Development (the "Bank") acting as trustee of the Carbon Initiative for Development (the "Trustee") acknowledges that the Climate Cent Foundation (the "Donor", and together with the Bank, the "Parties" and each a "Party"), accepts to provide the sum of Three Million United States Dollars (US$ 3,000,000) (the "Contribution") for the Carbon Initiative for Development Readiness Multi-Donor Trust Fund, No. 072039 (the "Trust Fund" or the "Ci-Dev Readiness Fund") in accordance with the terms of this Administration Agreement. Other donors have contributed or are also expected to contribute to the Trust Fund on the provisions specified in the Annexes to this Administration Agreement. 2. The Contribution will be used to finance the activities set forth in the "Ci-Dev Readiness Fund Description" attached hereto as Annex 1, and will be administered by the Bank as Trustee on behalf of the Donor in accordance with the provisions of this Administration Agreement, including the "Standard Provisions" attached hereto as Annex 2 and "Project Selection, Management and Monitoring" attached hereto as Annex 3. 3. As part of the Carbon Initiative for Development (the "Ci-Dev"), the Bank has also established the Carbon Initiative for Development Carbon Fund (the "Ci-Dev Carbon Fund"), which is governed by the Instrument establishing the Carbon Initiative for development Carbon Fund, dated November 15, 2013 (the "Instrument"). 4. The Donor shall deposit the Contribution in accordance in the currency specified in Section I above (the "Contribution Currency") into such bank account designated by the Bank (each amount deposited hereinafter referred to as an "Installment") upon submission of a payment request. The first Installment shall be Five Hundred Thousand United States Dollars (US$ 500,000) and shall be deposited within 60 days of signing of this Administration Agreement; subsequent Installments shall be made according to the schedule below and upon a payment request issued by the Bank. This payment schedule may be revised by agreement between the Bank and the Donor: RCA 248423. f. WUI 64145 LJ FAX (202) 477-6391 -2- a) on or before 31 January 2015: Five Hundred Thousand United States Dollars (US$ 500,000); b) on or before 31 January 2016: Five Hundred Thousand United States Dollars (US$ 500,000); c) on or before 31 January 2017: Five Hundred Thousand United States Dollars (US$ 500,000); d) on or before 31 January 2018: Five Hundred Thousand United States Dollars (US$ 500,000); and e) on or before 31 January 2019: Five Hundred Thousand United States Dollars (US$ 500,000) 5. When making any deposit, the Donor shall instruct its bank to include in its deposit details information (remittance advice) field of its SWIFT deposit message, information indicating: the amount deposited, that the deposit is made by the Donor for TF072039 (the Ci-Dev Readiness Fund), and the date of the deposit (the "Deposit Instructions"). In addition, the Donor shall provide a copy of the Deposit Instructions to the Bank's Accounting Trust Funds Division by e-mail sent to tfremitadvice@worldbank.org or by fax sent to +1 (202) 614-1315. 6. Except with respect to the Deposit Instructions, any notice, request or other communication to be given or made under this Administration Agreement shall be in writing and delivered by mail, fax or e- mail to the respective Party's address specified below or at such other address as such Party notifies in writing to the other Party from time to time: For the Bank (the "Bank Contact"): The Bank acting as Trustee of the Ci-Dev Readiness Fund CPFCF The World Bank 1818 H Street, NW Washington, DC 20433 U.S.A Tel: +1 202 458 9701 Fax: +1 202 522 7432 E-mail: bquesnel@worldbank.org For the Donor (the "Donor Contact"): Climate Cent Foundation Freiestrasse 167 CH - 8032 Zurich Switzerland Att: Dr Marco Berg Tel: +41-44-387 99 02 Fax: +41-44-387 99 09 E-Mail: marco.berg@stiftungklimarappen.ch 7. In the event any amounts are to be returned to the Donor under this Administration Agreement, the Bank shall transfer such amounts to the Donor's applicable donor balance account with the Bank. 8. All annexes hereto constitute an integral part of this Administration Agreement, whose provisions taken together shall constitute the entire agreement and understanding between the Donor and the Bank. -3- 9. Unless otherwise specified in an annex hereto, this Administration Agreement may be amended only by written amendment between the Bank and the Donor; provided, however, that any annexes to this Administration Agreement may be amended only by written amendment of all donors contributing to the Trust Fund. 10. Each of the Parties represents, by confirming its acceptance below, that it is authorized to enter into this Administration Agreement and act in accordance with these provisions. The Parties are requested to sign and date this Administration Agreement, and upon possession by the Bank of this fully signed Administration Agreement, this Administration Agreement shall become effective as of the date of the last signature. It is understood that this Administration Agreement is not an international treaty. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AS TRUSTEE OF THE CI-DEV By: Name: Simon Whit4house Title: Acting Manager, Carbon Finance Unit Date: t /2 C 3 Climate Cent Foundation Frelestrasse 167 CH-8032 Zurich CLIMATE CENT FOUNDATION P ne +41 44 387 99 00 By: _ [ Name: Marco Berg Lorena Pedalino Title: Managing Director Director Finance Date: /a/ 2P44 -4- ANNEX 1 Ci-Dev Readiness Fund Description This Annex shall be applicable to and form an integral part of all administration agreements for the Trust Fund (collectively, the "Administration Agreements" and each an "Administration Agreement") between the Bank and any entities that provide any funds to the Trust Fund (collectively, the "Donors"). 1. Objectives 1.1 The Ci-Dev Readiness Fund is part of the Ci-Dev initiative which aims at utilizing carbon market finance to play an important role in transforming quality of life for poor people in poor developing countries and least developed countries, as well as reducing carbon emissions to improve environmental conditions. It will do this by supporting the development of projects with high development benefits, such as making clean energy and other low carbon technologies more affordable for poor people, and by using the robust verification of the carbon market to deliver results based financing for the distribution of poverty reducing technologies. 1.2 The Ci-Dev Readiness Fund plans to achieve its objectives through four potential outputs, which are expected to increase the success of governments, financial institutions, private sector and civil society organizations to access carbon finance. These are: (i) developing new methodologies consistent with the criteria set out in Annex 3 to this Administration Agreement and improving existing methodologies and tools so that community and household projects can receive carbon market finance and that are approved for use internationally by the clean development mechanism (CDM) Executive Board; (ii) improving the capability and skills of communities, private sector and government to develop carbon market projects using aforesaid new and improved methodologies, and access the necessary funding for their implementation; (iii) developing and demonstrating business models for the practical use of new and improved methodologies, so reducing perceptions of project risk, as these methodologies are untested they are considered riskier by project developers; and (iv) to use Results Based Financing to purchase carbon credits through the CDM for projects with high development benefits that meet the Project Selection Criteria as set out in Annex 3 to this Administration Agreement, which will be met through the related Ci-Dev Carbon Fund. 2. Activities The activities to be financed by the Trust Fund are: 2.1 Bank-executed activities, for which the Bank has implementation responsibility: (a) development of standardized baselines, new methodologies, improved CDM procedures for sectors of relevance to the poorest countries; (b) providing capability and skills support to communities, governments and private sector organization in implementing new carbon finance methods; (c) developing and demonstrating business models for new carbon financing mechanisms; (d) carbon project or program development expenses, including associated validation, certification, monitoring reporting and verification activities, along with periodic supervision of the project/program by the Bank; and (e) Trust Fund administration and management. -5- 2.2 Recipient-executed activities, for which one or more Recipients (as defined in Annex 2) have implementation responsibility: (a) carbon program development, operation and carbon asset creation costs. 3. Eligible Expenditures 3.1 For Bank-executed activities, the Trust Fund funds may be used to finance: (a) staff costs with indirects; (b) travel expenses; (c) consultant fees individuals and firms; (d) contractual services; (e) associated overheads; (f) Equipment and Office Premises Lease Cost; (g) extended term consultants; (h) media, workshop, conference and meeting; and (j) temporary support staff costs. 3.2 For Recipient-executed activities, the Trust Fund funds may be used to finance eligible expenditures in accordance with the Bank's applicable policies and procedures. These include: Civil Works, Consulting, Goods, Operating Costs and Training. -6- ANNEX 2 Standard Provisions Applicable to the Multi-Donor Trust Fund for Ci-Dev Readiness Fund This Annex shall be applicable to and form an integral part of all Administration Agreements between the Bank and the respective Donors. 1. Administration of the Contributions 1.1 The Bank shall be responsible only for performing those functions specifically set forth in this Administration Agreement and shall not be subject to any other duties or responsibilities to the Donors, including, without limitation, any duties or obligations that might otherwise apply to a fiduciary or trustee under general principles of trust or fiduciary law. Nothing in this Administration Agreement shall be considered a waiver of any privileges or immunities of the Bank under its Articles of Agreement or any applicable law, all of which are expressly reserved. 1.2 Each Donor's Contribution (collectively, the "Contributions") shall be administered in accordance with the Bank's applicable policies and procedures, as the same may be amended from time to time, including its procurement, financial management, disbursement and safeguard policies, its framework to prevent and combat fraud and corruption and its screening procedures to prevent the use of Bank resources to finance terrorist activity, in line with the Bank's obligations to give effect to the relevant decisions of the Security Council taken under Chapter VII of the of Charter of the United Nations. The Donors acknowledge that this provision does not create any obligations of the Bank under the anti-terrorist financing and asset control laws, regulations, rules and executive orders of an individual member country that may apply to a Donor. 2. Management of the Contributions 2.1 The funds deposited in the Trust Fund shall be accounted for as a single trust fund and shall be kept separate and apart from the funds of the Bank. The funds deposited in the Trust Fund may be commingled with other trust fund assets maintained by the Bank. The Bank, in its capacity as trustee, has legal title to the funds deposited in the Trust Fund. 2.2 The currency in which the funds in the Trust Fund shall be held is United States Dollar (the "Holding Currency"). 2.3 Donors accept to deposit their Contributions in the Contribution Currency stated in their respective Administration Agreements. In the case of deposits received in a Contribution Currency other than the Holding Currency, promptly upon the receipt of such amounts and the accompanying Deposit Instructions, the Bank shall convert such amounts into the Holding Currency at the exchange rate obtained by the Bank on the date of the conversion. Where deposits prove to be insufficient to complete activities as a result of exchange rate fluctuations, neither the Bank nor the Donor shall bear any responsibility for providing any additional financing. 2.4 The funds deposited in the Trust Fund may be freely exchanged by the Bank into other currencies as may facilitate their disbursement at the exchange rate obtained by the Bank on the date of the conversion. -7- 2.5 The Bank shall invest and reinvest the funds deposited in the Trust Fund pending their disbursement in accordance with the Bank's applicable policies and procedures for the investment of trust funds administered by the Bank. The Bank shall credit all income from such investment to the Trust Fund to be used for the same purposes as the Contributions. 2.6 The Bank shall exercise the same care in the discharge of its functions under the Administration Agreements as it exercises with respect to its own affairs and has no further liability to the Donors. 2.7 The Donor will not be responsible for the activities of any person or third party engaged by the Bank as a result of this Administration Agreement, nor will the Donor be liable for any costs incurred by the Bank in terminating the engagement of any such person. 3. Trust Fund Fees and Costs 3.1 The Bank may deduct and retain for its own account, as a deduction from each Installment, an amount equal to two percent (2 %) per Installment as an administrative fee for the Trust Fund. 3.2 In addition, costs incurred by the Bank for other expenses, such as for program management and Trust Fund administration, that are (i) not covered by the percentage deduction specified above as an administrative fee and (ii) not included under Annex 1 of the Administration Agreements in accordance with the Bank's applicable policies and procedures shall be charged to the Trust Fund on an actual basis up to a maximum of three percent (3%) of the total Contributions under all Administration Agreements. 3.3 Each Donor acknowledges and accepts that the percentage deductions for fees in this Trust Fund Fees and Costs section are estimated on the basis of anticipated Contributions. If actual Contributions significantly differ from what was originally anticipated at the time of signature of the first Administration Agreement, or if other circumstances affecting Trust Fund fees or costs change, the Bank reserves the right to request a change to the terms of this Trust Fund Fees and Costs section, which would be effectuated by amendments made to the Administration Agreements of all Donors and which would thereafter be applicable to all new Contributions that are provided either as amendments to supplement existing Administration Agreements or from new Donors under new Administration Agreements. 4. Accounting and Financial Reporting 4.1 The Bank shall maintain separate records and ledger accounts in respect of the funds deposited in the Trust Fund and disbursements made therefrom. 4.2 The Bank shall furnish to the Donors current financial information relating to receipts, disbursements and fund balance in the Holding Currency with respect to the Contributions via the World Bank's Trust Funds Donor Center secure website. Within six (6) months after all commitments and liabilities under the Trust Fund have been satisfied and the Trust Fund has been closed, the final financial information relating to receipts, disbursements and fund balance in the Holding Currency with respect to the Contributions shall be made available to the Donors via the World Bank's Trust Funds Donor Center secure website. 4.3 The Bank shall provide to the Donors via the World Bank's Trust Fund Donor Center secure website, within six (6) months following the end of each Bank fiscal year, an annual single audit report, comprising (i) a management assertion together with an attestation from the Bank's external auditors concerning the adequacy of internal control over cash-based financial reporting for all cash-based trust -8- funds as a whole; and (ii) a combined financial statement for all cash-based trust funds together with the Bank's external auditor's opinion thereon. The cost of the single audit shall be borne by the Bank. 4.4 If a Donor wishes to request, on an exceptional basis, a financial statement audit by the Bank's external auditors of the Trust Fund, the Donor and the Bank shall first consult as to whether such an external audit is necessary. The Bank and the Donor shall accept on the appropriate scope and terms of reference of such audit. Following acceptance on the scope and terms of reference, the Bank shall arrange for such external audit. The costs of any such audit, including the internal costs of the Bank with respect to such audit, shall be borne by the requesting Donor. 4.5 The Bank shall make available to the Donors copies of all financial statements and auditors' reports received by the Bank from Recipients pursuant to any Grant Agreements (as defined below) in accordance with the Bank's Access to Information Policy. 5. Progress Reporting and Meetings 5.1 The Bank will provide the Donors with periodic reports not less than annually, from the date of the Administration Agreement, on the progress of activities financed by the Contributions. Within six (6) months of the End Disbursement Date (as defined below), the Bank shall furnish to the Donors a final report on the activities financed by the Trust Fund. 5.2 The Bank will facilitate annual meetings of the Donors to take decisions regarding some of the following issues: (i) reviewing the operation of the Readiness Fund; (ii) progress towards meeting the program's objectives, as described in the Readiness Fund work plans; (iii) providing operational guidance; (iv) setting priorities for the upcoming year; (v) agreeing the work plans for the next year. The Bank will report results attributable to each Donor's contribution. Decisions will be made by consensus of the Donors. Consensus is a procedure for adopting a decision when no Participant in the decision- making process blocks a proposed decision. 5.3 During the first years of operation of the Readiness Fund the Bank will also facilitate semi-annual meetings with the Donors to review and take decisions concerning items under paragraph 5.2. Semi- annual meetings shall be held as long as the Donors deem it necessary. 5.4 The Bank will inform the Donors quarterly, including through a written report, on the general operation of the Trust Fund and the development of the projects, including any material development that may occur from time to time. The Bank shall consult the Donors on pipeline development, their anticipated results and financing of projects in the portfolio, including the share of private sector, donor and public finance. 5.5 Donors who are also participants in a tranche of the Carbon Fund will be consulted about the operations of that tranche during annual meetings and/or semi-annual meetings in accordance with Section 6 of the Instrument. This will include the business plan for the tranche and the selection and progress of projects in achieving Ci-Dev objectives including the development benefits. Decisions will be made in accordance with Section 6.5 of the Instrument. 5.6 Any Donor may review or evaluate activities financed by the Trust Fund at any time up to six (6) months following the End Disbursement Date. The Donor and the Bank shall decide on the scope and conduct of such review or evaluation, and the Bank shall provide all relevant information within the limits of the Bank's applicable policies and procedures. If necessary the project will be adjusted according to the findings of reviews. All associated costs, including any costs incurred by the Bank, shall be borne by -9- the Donor. It is understood that any such review or evaluation shall not constitute a financial, compliance or other audit of the Trust Fund. 6. Disbursement; Cancellation; Refund 6.1 It is expected that the funds deposited in the Trust Fund shall be fully disbursed by the Bank by 31 December 2025 (the "End Disbursement Date"). The Bank shall only disburse funds deposited in the Trust Fund for the purposes of this Administration Agreement (other than returns to Donors) after such date to the extent such date is changed in accordance with amendments made to the Administration Agreements of all the Donors. Following the End Disbursement Date, the Bank shall return any remaining balance of the Trust Fund to each Donor in the Holding Currency in the manner specified in its respective Administration Agreement on a pro rata basis with regard to the total funds deposited in the Trust Fund by such Donor relative to the total funds deposited in the Trust Fund by all Donors, all calculated as Holding Currency amounts. 6.2 Subject to Section 12.4(c) of the Instrument, any Donor may cancel all or part of such Donor's pro rata share, and the Bank may cancel all or any Donors' pro rata shares, upon three (3) months' prior written notice, of any Contributions (paid and not yet paid) that are not committed pursuant to any agreements entered into between the Bank and any consultants and/or other third parties for the purposes of this Administration Agreement, including any Grant Agreements, prior to the receipt of such notice. In the event of a cancellation, the Bank shall return to the relevant Donor or Donors in the Holding Currency in the manner specified by each such Donor in its respective Administration Agreement the pro rata share(s) of any such uncommitted balance of the Trust Fund, in accordance with any additional terms that may be accepted between the Bank and each such Donor. 7. Disclosure; Dispute Resolution 7.1 The Bank shall disclose the Administration Agreements and related information on this Trust Fund in accordance with the Bank's Policy on Access to Information. By entering into Administration Agreements, the Donors consent to such disclosure of their respective Administration Agreements and such related information. 7.2 In providing funds under the Administration Agreements, the Donors do not intend to accept any responsibility or liability towards third parties for any claims, debts, demands, damage or loss as a result of the implementation of activities under the Trust Fund. 7.3 The Donors and the Bank shall use their best efforts to amicably settle any dispute, controversy, or claim arising out of or relating to the Administration Agreements. 8. Grants to Recipients 8.1 The Bank shall, as administrator of the Trust Fund on behalf of the Donors, enter into one or more grant agreements (the "Grant Agreements") with recipients (the "Recipients") consistent with the purposes of this Administration Agreement and on the terms and conditions set forth in the Grant Agreements. Grant Agreements may be entered into up to the maximum amount of the Contributions that all Donors have accepted to make available under the Administration Agreements between the Bank and the Donors. -10- 8.2 The Bank shall be responsible for the supervision of the activities financed under any Grant Agreements. Subject to the consent of any relevant Recipients, representatives of the Donors may be invited by the Bank to participate in Bank supervision missions related to the Trust Fund. 8.3 The Bank shall promptly inform the Donors of any significant modification to the terms of any Grant Agreements and of any contractual remedies that are exercised by the Bank under any Grant Agreements. To the extent practicable, the Bank shall afford the Donors the opportunity to exchange views before effecting any such modification or exercising any such remedy. -11- ANNEX 3 CRITERIA FOR CI-DEV PROJECT SELECTION The criteria will guide the selection of projects to receive funding through Ci-Dev (for work completed through both the Readiness and Carbon Funds). Project selection criteria will be reviewed annually to ensure that it remains relevant. Objectives/Introduction Ci-Dev shall support low carbon initiatives that deliver strong development benefits in poor developing countries, especially LDCs. The projects should be transformational, replicable, innovative, and leverage others to increase the impact of Ci-Dev. The projects should also be sustainable (i.e. have a lasting impact beyond the lifespan of the project). The chances of bringing sustainable change can be increased by the support of national and local actors (lending them political will and local ownership). Ci-Dev will provide capacity and capability to local actors. Ci-Dev will strive to provide multiple, high quality development benefits that can transform people's lives, through low carbon projects that have the potential to be scaled up across many LDCs and poor developing countries. In order to help raise the flow of carbon finance in the longer term Ci-Dev should encourage and maximise private sector involvement. The extent to which projects could benefit from other public finance and donor support (such as World Bank IDA finance) will be determined on a case by case basis. World Bank cooperation and consultation with key stakeholders will also be key to successful project delivery'. Funds will be used for the following focal areas. Project Categories: * Renewable energy projects that create new energy connections or address suppressed demand, such as mini-hydro power, household solar, and biogas. * Projects in other underrepresented sectors that meet overall selection criteria, and can be shown to be innovative and provide transformational benefits, such as other electrification projects, improved energy efficiency projects with strong contribution to sustainable development, and waste management and treatment projects. Projects will be assessed against the following characteristics: * Projects must deliver development benefits alongside emissions reductions savings and result in financial savings or welfare improvements at household or community level. * Projects must become registered CDM projects or result in carbon credits that are recognized by UNFCCC. * Projects must adhere to the World Bank's appropriate environmental and social safeguards. * Projects will include local community involvement in the development, implementation and monitoring of progress. This relates to how projects will produce benefits for local people and the poor. -12- * Projects that demonstrate how carbon finance will directly benefit poor or vulnerable households/communities will be prioritized. * Projects will be prioritized that require no additional donor finance, beyond that provided through Ci-Dev. * Projects using new methodologies" that are deemed to contribute to the development of CDM in poor developing countries (e.g. standardised baselines and programmatic approaches) will be prioritized. * Projects eligible for approval should represent project types which have not already been successful" in the region (in countries with a similar development level)'v. * Projects that would scale up existing successful pilot activities in eligible host countries may also be supported. Other Guidance: * Small to medium scale projects will be prioritized to ensure that a reasonable number of projects can be financed overall. No project should use more than 25% of the total resources of the carbon fund. The Participants may also choose to purchase only a share of the CERs from a project, such as initial CPAs of a Program of Activities'. The number and range of projects should also be sufficient to have a demonstration effect and promote wider scale uptake of standardised baseline and programmatic approaches. * A CER price will be set based on an assessment of proposed project financials and set at a level which will make projects viable for development". Additionally, to create replicable demonstrations, projects funded must be willing for the WB to share certain information regarding the project's finances. * Project developers will be encouraged to apply for a single 10 year crediting period, except where it is clear that access to 2 crediting periods would allow the project to be scaled up and deliver new emissions reductions, or when Ci-Dev would not be in a position to purchase credits over this 10 year period. Strategic guidance for origination of projects for Ci-Dev: * Projects that are presented by the World Bank to the participants for project selection within the first project category - renewable energy projects that create new energy connections or address suppressed demand - will be prioritized and make up the majority of selected projects for the portfolio. * Projects eligible within Ci-Dev are located in International Development Assistance (IDA) designated countries in Africa or Least Developed Countries (LDCs), as defined by the UN, in Asia. * A minimum of 75% of all projects within the final portfolio are or were in UN designated Least Developed Countries (LDCs) at the time of their selection. * Around 80% of all projects are in Africa. * Projects selected through Ci-Dev should represent a range of project types and be distributed across eligible countries. * 60% or more of the projects that are presented by the World Bank to the participants for project selection represent new projects (i.e. projects in the early phases of the CDM project cycle or project implementation). Others can be more advanced but stalled because levels of innovation or other circumstances prevent progress, however not just lack of buyers for CERs. -13- * The focus on rural electrification with renewable energy will give a priority to off-grid and mini- grid energy projects The CDM is a market mechanism and the supply of viable projects is dependent on the support of projects owners, CDM developers and investors/lenders. "By methodologies, we mean: 1/ new methodologies for calculating the emission reductions for different technologies including suppressed demand; 2/ standardized baselines; and 3/ proposals for improvement in CDM regulations for project registration and ER verification - all three for EB consideration and approval. The term "methodologies" throughout the document refers to these 3 dimensions. At this time successful means at least 2 or more projects with similar characteristics within a project type that have issued CERs. This definition may be subject to change over time. We recognize that project types which work in Asian countries may face significantly different challenges in African countries, but do not want to develop project types which have already been demonstrated to work in comparable countries. When purchasing only a portion of CERs from a project Ci-Dev must ensure that in any specific round of purchasing it is not subsidizing the CER purchase of other compliance buyers outside of this fund. " For example, it is well known that the vast majority of the to-date existing CDM projects and programs were developed based on primary market prices between E4 / ton and E10 / ton. Prices significantly outside of this range would need to be carefully considered to ensure the additionally of the carbon finance or the value for money of the investment. -14- ANNEX 4 Current Indicators This Annex shall be applicable to and form an integral part of all Administration Arrangements/Agreements between the Trustee and the respective Donors. Baseline, data sources and milestones will be finalised with 6 months of the start of the programme and further annual milestones will be agreed on a rolling basis. PROJECT Carbon Market Finance (CMF) NAME IMPACT Impact Indicator 1 Baseline 2014 2015 2016 2019 2022 2025 KPI Indicator 2013 Carbon M tonnes C02 reduced by Planned 0 0 0 0 0.1 1.7 7.6 financing all international carbon Achieved reduces finance projects drawing Source greenhouse on CMF developed UNFCCC CDM database information on projects drawing on CMF programme replicated projects gas emissions methodologies. and poverty in less developed Impact Indicator 2 Baseline 2014 2015 2016 2019 2022 2025 countries. KPI Indicator 2013 t Number of people with Planned 0 0 0 0 280,000 23,000,000 31,000,000 increased access to clean Achieved energy, as a result of international carbon financed projects drawing UNFCCC CDM database information on projects drawing on CMF programme replicated projects on CMF developed methodologies. Impact Indicator 3 Baseline 2014 2015 2015 2019 2022 2025 KPI Indicator 2013 ___________I Level of installed capacity Planned 0 0 0 0 27 450 800 of clean energy (MW) Achieved -15- from all international Source carbon finance projects L 1NFCCC CDNI database information on prolects dra%% in on CAlMI provrammie replicated projects 2 drawing on the new methodologies. OUTCOME Outcome Indicator 1 Baseline 2014 2015 2016 2019 2022 2025 Assumptions KPI Indicator 2013 Increased Ex of private/public finance Planned 0 0 0 f 13m f 40m f 40m f 40m International carbon mobilised for investment in (public) carbon market finance flows CDM projects that use the Planned 0 f 6m f 12m f 180m f 550m f 550m f 550m recovers to to poor new methodologies (private) replicate countries for directly supported by the Achieved demonstrated low carbon CMF programme. Achieved CMF energy and programme other poverty projects reducing WB data and reporting - taken from finance mobilised for CMF programme projects New technologies. Outcome Indicator 2 Baseline 2014 2015* 2016* 2019 2022 2025 methodologies KPI Indicator 2013 can generate M tons C02 reduced Planned 0 0 TBA TBA 0.5 1.6 2.6 high through projects directly Achieved supported by the CMF Source poor po programme. po epe prorame.UNFCCC CDM database; WB data and reporting on number of CERs purchased from CMF Governments _______________programme proects ___________________ ______and partners Outcome Indicator 3 Baseline 2014 2015* 2016* 2019 2022 2025 continue to KPI Indicator 2013 engage in low Level of installed capacity lanned 0 0 TBA TBA 55 130 165 carbon of clean energy (MW) in Achieved - development. CMF programme directly Source ________ PlneI lm f0 4mf0 nentoa -16- supported locations. WB data and reporting taken from monitoring of CMF programme projects Outcome Indicator 4 Baseline 2014 2015* 2016* 2019 2022 2025 KPI Indicator 2013 Number of people with Planned 0 0 TBA TBA 1,700,000 3,700,000 4,300,000 increased access to clean Achieved energy from all projects in Source CMF programme directly WB data and reporting taken from monitoring of CMF programme projects supported locations. INPUTS (L) DFID £15m and DECC E35m Other (f): Public E40m JTotal (): £90 m DFID AND DECC SHARE 56%. INPUTS DFID (FTEs) 0.4 total, advisers & project officer, DECC (FTEs) 0.5 total (HR) *Note: Some Outcome indicator milestones for 2015 and 2016 to be agreed (TBA) OUTPUT 1 Output Indicator 1.1 2014 2015 2016 2019 2022 2025 Assumptions Baseline 2013 New Number of new Planned 0 0 2 2 5 5 5 New methodologie methodologies Achieved methodologies s submitted by the Source can be applied (standardised programme and UNFCCC CDM website and CDM EB reports in practice; and baselines and approved by CDM facilitate access programmatic Executive Board of increased approaches) Output Indicator 1.2 2014 2015 2016 2019 2022 2025 LDCs to the and Baseline carbon market streamlined 2013 processes Number of new Planned 2 4 5 5 6 6 6 approved by methodologies and Achieved the CDM other reform measures Source RISK Executive developed. RATING Low Board. WB reports Medium INPUTS (f) DFID £2 million Govt £0 Other £O Total £2 million DFID SHARE 100% -17- INPUTS DFED & DECC _____R)___ V ;~. ~.$ I 't~ (R)(ETEs) TBAC IMPACT 15% (provisional) WEIGHTIN G OUTPUT 2 Output Indicator 2.1 Baseline 2014 2015 2016 2019 2022 2025 Assumptions 2013 Communities, Number of activities Planned 0 3 5 6 8 10 10 Capability is private sector (e.g. workshops, key Achieved maintained and and publications) to Source strengthened government disseminate W through with increased programme experience. experience. capability to Output Indicator 2.2 Baseline 2014 2015 2016 2019 2022 2025 use 2013 standardised Number of Designated Planned 0 0 1 2 3 3 3 baselines and National Authorities programmatic (DNAs) submitting Achieved approaches. standardized baselines Source for approval by the EB WB CMF programme reports and UNFCCC CDM website -18- in target countries. RISK RATING Low INPUTS (E) DFID £2 million Go%i ETBA (e.g. in kind, can be expected). Other £O Total £2 million DFID SHARE % TBA INPUTS DFID & DECC (FTEs) TBA (HR) IMPACT 20% (pro% isional) WEIGHTIN G OUTPUT 3 Output Indicator 3.1 2014 2015 2016 2019 2022 2025 Assumption Baseline 2013 Practically Number of CDM projects Planned 0 0 1 1 8 10 10 Demonstrations demonstrate registered with the CDM Achieved are attractive financial Executive Board in focus Source enough for viability of countries that use the new replication and standardised CDM methodologies. scale up; and baselines (SB) their more and Output Indicator 3.2 2014 2015 2016 2019 2022 2025 widespread use. programmatic Baseline Replicated approaches 2013 projects can (PoAs). Number of project models Planned 0 TBA TBA TBA TBA TBA TBA attract sufficient developed that apply new capital for their _______ methodologies. Achieved implementation. -19- Source WB reporting Output Indicator 3.3 Baseline 2014 2015 2016 2019 2022 2025 2013 . CDM projects developed Planned 0 Guidelines All Updated All All and registered with the agreed developed guidelines developed developed CDM Executive Board are projects projects projects consistent with guidelines consistent All consistent consistent for stakeholder developed engagement projects consistent Achieved F Source RISK RATING Documented WB and donor agreed guidelines on stakeholder engagement Low INPUTS (1) DFID £6 million Govt: £O Other: £0 Total: E6 million DFID SHARE 100% INPUTS DFID & DECC (FTEs) TIA (HR) IMPACT 25% (provisional) WEIGHTIN G OUTPUT 4 Output Indicator 4.1 Baseline 2014 2015 2016 2019 2022 2025 Assumptions 2013 RBF Value of CER credits Planned 0 f 2m f 5m E 12m f 33m f 33m f 33m Projects provide effectively contracted from Achieved verifiable incentivises projects supported Source development -20- private through CMF using the WB CMF reporting and contracts for purchasing credits through CMF programme Emission Reduction benefits: and investment in RBF mechanism. Purchase Agreements (ERPAs) . sufficient technologies Output Indicator 4.2 Baseline 2014 2015 2016 2019 2022 2025 project supply that deliver 2013 for CER emission purchase. reductions Number of events to Planned 0 2 4 6 7 7 7 and poverty engage potential Achieved reduction. project developers for Source RISK CER contracting. RATING Low _ WB reporting Medium INPUTS (f) DFID L5 million. DECC £35 million Govt (f) Other C40million Total f80million DFID SHARE 6%. DECC SHARE 44% INPUTS DFID & DECC (FTEs) TBA (HR) IMPACT 35% (pro,isional) WEIGHTIN G Notes Milestones based on an illustrative portfolio. To be refined in programme implementation *Output indicators will be finalised by September 2013 All results are attributable to UK funding, calculated on the basis of total results and attributed UK funding Annual milestones from 2016 will be set in advance on a rolling basis, on the, drawing on annual reviews and progress Impact weightings for Outputs are provisional and to be agreed by March 2013