Transcript Calvin Xu - World Bank

Financing A Cleaner
Future in Thailand
Bangkok, Thailand
July 15, 2009
Defining Characteristics of IFC
 Owned by 179 member countries
 Provides loans and equities for private sector projects
 Does not accept government guarantees
 Shares same risks as other investors
 Is commercially oriented
 Driven by risk-reward considerations
 Market leader in environmental & social performance
standards
 Equator Principles
 Rated AAA (S&P) and Aaa (Moody’s)
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IFC has over 100 country and regional
advisory services offices worldwide
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IFC’s Products and Services
Senior Debt
Structured
Finance
Mezzanine
Finance
• On-lending
• Partial credit guarantees
• Convertible debt
• Liquidity
management
• Securitization
• Subordinated debt
• Bond underwriting
• Other Tier II instruments
• Acquisition financing
• Warehousing facilities
• Global Trade Finance
Program
• Syndicated loans
Private Equity
Advisory Services
Sustainable
Finance
• Common shares
• Corporate governance
• Carbon finance
• Preferred
shares
• Risk management
• Renewable energy
• Small and medium
business banking
• Supply chain financing
• Housing finance
• Energy efficiency finance
• Energy efficiency
• Cleaner production
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IFC has been successfully assessing and assuming
risks in emerging markets for the last 50 years…
Latin America & the
Caribbean, 27%
East Asia & the
Pacific, 14%
Sub-Saharan Africa,
11%
Europe & Central Asia,
28%
Middle East & North
Africa, 10%
South Asia, 10%
Global, 1%
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…spread across several sectors
Health & Education, 2%
Subnational Finance,
1%
IT & Communications,
4%
Private Equity &
Investment Funds, 4%
Agribusiness, 7%
Financial Markets, 37%
Oil, Gas, Mining &
Chemicals, 11%
Global Manufacturing &
Services, 21%
Infrastructure, 15%
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3 Scenarios for Thailand
GHG Emissions in 2005
(Million Tons of CO2 Equivalent)
GDP Carbon Efficiency
(Tons of CO2 /$1000
GDP)
Per Capita Carbon
Capacity
(Tons of CO2 / Person)
Thailand
226.67
1.36
3.34
World
27,136
0.50
4.22
2005 Emissions
Unconstrained
Growth
2030 Frozen Tech
Scenario
In million tons of CO2 equivalent greenhouse gases emissions
227M
11,741M
11,968M Tons of CO2
Policy Scenario
Reduction
2030 Policy
Scenario
5,250M
6,500M
Abatement
Potential
2030 Abatement
Scenario
Technologies and their penetration frozen at 2005 level
6,200M
300M
Assume existing energy, energy efficiency and transportation policy
Increase renewable energy in total energy mix, improve energy efficiency in industrial,
commercial and residential sectors, mass transportation and fuel efficiency
Full technical abatement potential realized, with support of CTF and other mechnisms
Sectors and Barriers
Energy
• Geothermal
• Wind
• Biomass
• Hydro
• Solar
Technical
• Technical feasibility
• Projects using such
technologies
Energy Efficiency
• Waste-to-energy
• Industrial, commercial
and residential
• Green lighting
• Building energy efficiency
Commercial
• Laws and regulations
• Private sector players’
willingness
• Economic viability
Transportation
• Public transportation
• Fuel efficiency
• Fuel switching
Financial
• Equity
• Structured finance:
mezzanine, bridge loans,
construction loans, etc.
• Bank loans
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Improving Access-to-Finance By Mobilizing Local Financing
IFC
 Provide FI partners risk sharing facilities &
line of credit to encourage lending to
projects of energy efficiency, renewable
energy and cleaner production
Marketing Partners
 Utility companies
 Equipment vendors
 ESCOs / EMCs
 Use on–the-ground and global advisory
teams to support banks’ internal capacity
building
 Facilitate the establishment of cooperation
between banks and marketing partners
 Provide policy advices to local government
to create better legal and regulatory
environment
 NGOs
 Government
 Focused private equity
& other FIs
 Promote lessons-learned sharing among
FIs globally
 Carbon funds
 Commercial Banks
 Special investment
entities
 Private equity funds
with climate change
focus
 Leasing companies
 Other financial
institutions
Marketing partnership
 International supply
chains
FI Partners
Borrowers
 ESCOs
 End-users
 Project developers
Project implementation
Project 1
Project 2
Project 3
Project 4
Project 5
Project 6
Project N
Sample Financing Mobilization Schemes
Energy Efficiency
Financing Risk
Sharing Facility
• Term: Up to 5
years
• Size of loans: Up
to $5 million
• Eligible Projects:
Industrial,
commercial and
residential EE
improvements;
Green lighting;
Waste treatment,
etc.
Small Renewable
Energy Project
Financing
• Term: Up to 10
years
• Size of Loans: Up
to $10 million
• Hydro
• Wind
• Geothermal
• Distributed
generation utilizing
renewable energy
• Biomass
ESCO Financing
Facility
• Term: Up to 5
years
• Size of loans: Up
to $5 million
• Credit-worthy endusers
• Revenues: Fixed +
variable (fixed
portion sufficient to
cover debt service)
RE/EE/CP
Mezzanine
Financing Facility
• Term: Up to 10
years
• Size of loans: Up
to $5 million
• Borrowers:
Developers of
small to mediumsized renewable
projects
Cleantech Private
Equity
• Participation: IFC
as an LP
• Up to 20%
contribution
• Fund has to be
have clearlydefined focus in
cleantech project
Energy Efficiency
Leasing
• Term: Up to 5
years
• Size of loans: Up
to $5 million
• Eligible Projects:
Industrial,
commercial and
residential EE
improvements;
Green lighting;
Waste treatment,
etc.
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Seeking Partners…
Financial
institutions
(banks, leasing
companies,
funds, etc.)
Line of credits,
risk sharing
facilities,
mezzanine
facilities
Renewable
energy, energy
efficiency, cleaner
production
Developers of
renewable
energy projects
Equity, structured
finance,
mezzanine
finance
Renewable
energy, energy
efficiency, cleaner
production
ESCOs &
companies
implementing
EE/CP projects
Equity, structured
finance,
mezzanine
finance
Renewable
energy, energy
efficiency, cleaner
production
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Calvin Q. XU
Jasper B. Virola
Senior Industrial Specialist
Energy & Climate Change
IFC East Asia & Pacific
Department
Investment Officer
Infrastructure
IFC East Asia & Pacific
14th Floor, One Pacific Place
88 Queensway, Hong Kong
Tel: +852-2508-8196 | Fax:
+852-2509-9363
[email protected]
11th Floor, Tower One
Ayala Triangle, Ayala Avenue
Makati City, 1226
Philippines
E-mail: [email protected]
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