Transcript Document

financing
sustainable
development
Association of Development Financing Institutions in Asia and the Pacific
Role of Financial Institutions for Climate
Change and Business Opportunity:
Public Private Financial Partnership
“Alliance of Development Financing
Institutions for Climate Finance”
Nihal Fonseka
CEO, DFCC Bank
Chairman, ADFIAP
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
AGENDA
ADFIAP’s Mission & Focused Areas
The Business Case for Climate Finance
ADFIAP & DFIs in Action – Case Studies
Concluding Remarks
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
ADFIAP’s Mission & Focus Areas
“Financing Sustainable Development”
•MSMEs
•Trade
•Agriculture
•Industry
•Technology
•Infrastructure
•Services
•Financial Inclusion
•Social Housing
•Education & Health
Economic
Social
Governance
•Climate change
•Environment finance
•CDM
•Carbon finance
•Others
Environment
•Corporate Governance
•Institutional Integrity
The Business Case for Climate Finance
Climate change effects on financial institutions
As early as 2006, a report analysing greenhouse gas emissions of the 500 world’s
largest publicly-traded companies found that businesses will not be immune to the
predicted changes and may experience disturbance to their operations and
profitability.
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
The Business Case for Climate Finance
Climate change effects on financial institutions
it makes good business sense for financial
institutions to start accounting for their own
greenhouse gas emissions, according to a report
issued by the World Resources Institute.
The benefits include:
- identifying reduction & subsequent money-saving
opportunities;
- cutting the company’s regulatory risks that may
result from more stringent regional, national, or
international efforts to curb global warming; and
- enhancing reputational status in the eyes of the
consumers.
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
The Business Case for Climate Finance
Direct financial gains
• cost savings (in energy/water use, paper, etc.)
• cost-consciousness among employees
• lower future compliance costs
Reputational / Image benefits
• attract & retain customers
• attract & retain good employees
• better recognition in society & public in general
Work place benefits
• proper facility management
• accident-free environment
• healthier working environment
Environmental / Ecological Gains
• clean environmental services & access to natural resources
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
Starting from within:
The Environmental Governance Project
www.egs-asia.com
The issue of environmental
governance has been and will
always be in the forefront of
ADFIAP’s activities.
ADFIAP’s “Greening of DFIs”
Project is its collective and
responsive effort to pursue
sustainable development through
its adherence to the principles of a
safe and clean environment, not
only as part of good corporate
citizenship, but more importantly,
as an integral part of sound
business practice.
- ADFIAP Board of Directors
•About 300 CEOs and senior staff were involved in the project in ADFIAP
regional, sub-regional and national meetings & conferences;
•A new ADFIAP publication, Greenbank, was developed and produced
for dissemination to members and other networks; and
•An Environmental Category has since been included in the annual
ADFIAP Awards program for outstanding achievements of member
banks.
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
Starting from within:
The “Greening of DFIs” Project
Water Financing
Sustainability Report
Carbon Offset
Certificate
Project Partners
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
Green Banking Book Launch
www.dfccbank.com
Renewable Energy for Rural Economic
Development (RERED) Project
To expand the commercial provision and utilization of
renewable energy resources and improve the quality
of life in rural areas in Sri Lanka.
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
Cumulative Approvals &
Disbursements of Credit under
RERED & RERED-Additional
Financing as at 30 Sept. 2008
www.devbankphil.com.ph
DBP Forest: Greening the countryside by planting
high-yielding fruit trees, reducing GHG emissions
Clean Development Mechanism* (CDM):
The CDM is an arrangement under the Kyoto Protocol
which allows industrialized countries with a
greenhouse gas reduction commitment to invest in
initiatives that lessen emissions in developing
countries as an alternative to more costly emission
reduction measures.
Environmental Development Project* (EDP)
Local government units, water districts, private
corporations and private water service providers can
access long-term funds through DBP and its
participating financial institutions to mobilize,
encourage, and support activities and investments in
environment-friendly projects.
* With the Japan Bank for International Cooperation (JBIC)
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
The Green Technology Financing Scheme
(GTFS) – to promote investments in green technology, a sector
that is envisaged to be one of Malaysia’s emerging drivers of
economic growth.
For products, equipment, or systems which:
minimizes degradation of the environment
has zero or low green house gas (GHG) emission
safe for use and promotes healthy and improved environment
for all forms of life;
conserves the use of energy and natural resources; or
promotes the use of renewable resources.
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
Green Finance of other ADFIAP Members:
A Sampling
SME Development Bank of Thailand – provides loans for hire-purchase of
natural gas vehicles
Bank of Khyber – assists small entrepreneurs to finance purchase of /conversion to
natural gas auto rickshaw
Lankaputhra Development Bank – to open avenues for small farmers to move
towards new technology, techniques and market opportunities
Land Bank of the Philippines – provides financing for bio-fuel projects sourced
from a kind of plant called jatropha curcas
Bank of Maharastra – provides loans for adoption of renewable energy
practices and use of solar home systems
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
Concluding Remarks
Excerpts from ADFIAP’s Policy Statement on Climate Change
“As an international community of development finance institutions, ADFIAP
takes a long view of the importance and impact of the climate change issue,
as this is not only a global phenomenon as it is local; an institutional
concern as it is personal. Climate change and its effects is the responsibility
of all to tackle now and in the future.”
“As development organizations, DFIs have a natural mandate and catalytic
role to play in climate change initiatives. To deal with climate change, it is
necessary to work at two levels: to seek for the reduction in greenhouse gas
emissions and to be fully engaged in global efforts to stem the rate of
climate change.”
As financial intermediaries, DFIs are in a strategic position to help mitigate
climate change’s impact, not only as a source of funds of projects that may
contribute to the degradation of the environment but also as an advocate of
it to project proponents themselves in the course of doing their businesses.
These actions also need to be coordinated with programs to address other
urgent priorities, such as reducing poverty, improving education and public
health, investing in water and sanitation projects, and raising general living
standards. Reliable, renewable and affordable supplies of energy are also
essential in meeting these challenges.
* Approved by the ADFIAP Board
in 2007 in Hanoi, Vietnam.
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010
Thank you for your attention!
Let’s all help save our Earth!
www.adfiap.org
ADFIAP/JBIC Joint Program on Environmental Cooperation Framework
Siem Reap, November 17, 2010