Database / Climate Finance Database / FP025 / risk_structure
risk_structure
GCF-EBRD SEFF Co-financing Programme
| risk_id | canonical_project_id | financing_component_id | risk_type | risk_bearer | risk_severity | mitigation_mechanism | mitigation_instrument_id | residual_risk_level |
|---|---|---|---|---|---|---|---|---|
| GCF_FP025_RISK_001 | GCF_FP025 | — | implementation | EBRD (European Bank for Reconstruction and Development) | High | Strong marketing campaign, skills transfer aimed at building durable skills and capacity within local banks and key stakeholders, and targeted selection of financial institutions dedicated to mainstream energy efficiency lending in their business lines. | — | — |
| GCF_FP025_RISK_002 | GCF_FP025 | — | other transaction risk | EBRD and Partner Financial Institutions (PFIs) | Medium | Technical support component including SEFF operation team support with technical eligibility assessments and financial analysis of project cash-flow; on-the-job training to loan-officers; development of Operations Manuals, standard application forms and other tools; PFIs conduct credit risk assessments on clients and structure security as necessary. | — | — |
| GCF_FP025_RISK_003 | GCF_FP025 | — | political | EBRD (European Bank for Reconstruction and Development) | High | EBRD closely monitors market events and potential impacts on PFI financial performance; PFIs have an obligation to regularly report on financial performance, financial covenants and implementation of the Facility; EBRD coordinates closely with the SEFF operation team and receives regular updates and reports on project implementation. | — | — |
| GCF_FP025_RISK_004 | GCF_FP025 | — | other transaction risk | EBRD (European Bank for Reconstruction and Development) | Medium | Scope of each project defined and agreed between SEFF operation team and clients (final beneficiaries) and must meet eligibility criteria of the respective Facility; project completion validated by SEFF operation team with non-meeting projects excluded from portfolio; frequent monitoring of progress by EBRD through project monitoring reports. | — | — |
| GCF_FP025_RISK_005 | GCF_FP025 | — | regulatory | EBRD (European Bank for Reconstruction and Development) | Medium | EBRD established oversight and control practices throughout the entire project lifecycle; majority of PFIs have existing relationships with EBRD and their compliance tested via SEFF/other financial products; EBRD has filed existing PFI track record and exposure to risks with regards to AML/CFT, E&S and other corporate practices; robust due diligence assessments for new PFI clients. | — | — |
| GCF_FP025_RISK_006 | GCF_FP025 | — | FX | EBRD (European Bank for Reconstruction and Development) | Medium | EBRD can hedge currency risks by providing local currency loans through procuring local currency funding or hedging, and entering into currency swaps with third party providers such as the Currency Exchange Fund (TCX). EBRD's Local Currency and Capital Markets Development (LC2) initiative also addresses currency risks at a systematic level. | — | — |
Field Evidence
implementation
EBRD (European Bank for Reconstruction and Development)
High
Strong marketing campaign, skills transfer aimed at building durable skills and capacity within local banks and key stakeholders, and targeted selection of financial institutions dedicated to mainstream energy efficiency lending in their business lines.
—
other transaction risk
EBRD and Partner Financial Institutions (PFIs)
Medium
Technical support component including SEFF operation team support with technical eligibility assessments and financial analysis of project cash-flow; on-the-job training to loan-officers; development of Operations Manuals, standard application forms and other tools; PFIs conduct credit risk assessments on clients and structure security as necessary.
—
political
EBRD (European Bank for Reconstruction and Development)
High
EBRD closely monitors market events and potential impacts on PFI financial performance; PFIs have an obligation to regularly report on financial performance, financial covenants and implementation of the Facility; EBRD coordinates closely with the SEFF operation team and receives regular updates and reports on project implementation.
—
other transaction risk
EBRD (European Bank for Reconstruction and Development)
Medium
Scope of each project defined and agreed between SEFF operation team and clients (final beneficiaries) and must meet eligibility criteria of the respective Facility; project completion validated by SEFF operation team with non-meeting projects excluded from portfolio; frequent monitoring of progress by EBRD through project monitoring reports.
—
regulatory
EBRD (European Bank for Reconstruction and Development)
Medium
EBRD established oversight and control practices throughout the entire project lifecycle; majority of PFIs have existing relationships with EBRD and their compliance tested via SEFF/other financial products; EBRD has filed existing PFI track record and exposure to risks with regards to AML/CFT, E&S and other corporate practices; robust due diligence assessments for new PFI clients.
—
FX
EBRD (European Bank for Reconstruction and Development)
Medium
EBRD can hedge currency risks by providing local currency loans through procuring local currency funding or hedging, and entering into currency swaps with third party providers such as the Currency Exchange Fund (TCX). EBRD's Local Currency and Capital Markets Development (LC2) initiative also addresses currency risks at a systematic level.
—