Transcript GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013

GREEN FINANCING FORUM
TAGBILARAN, BOHOL 29 APRIL 2013
The Costs of Going Green
and the Role of Financing MSMEs
Dr. Wolfram Hiemann
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Problem
Climate change, in particular global warming,
provoked by human activities
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Global warming
Temperatures of pavements without trees and sunshine protected
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Going Green
A common definition for green financing has still to be developed.
For example: Green finance relates to financing activities and investments
that reduce man-made effects on
climate change
 growing green house gas emissions and CO2 level
 measures: EE, RE, (re-) forestation
environment deterioration
 e.g. pollution and degradation of air, water and soil
 measures: cleaning effluents, flaring methane gas, terracing, mulching,
organic farming, etc.
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Reward
For investor
Subsidy, tax exemptions
Preferential loans: lower interest rate, longer gestation period, reduced
collateral requirement
Technical assistance (TA)
For banks and other financial institutions
Image gain as an environment-conscious institution
Attracting new medium- to long-term oriented customers (lower risk of
revoking the business permit or conflicts with the neighboring community)
Access to long term funds
Access to consultancy and training
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Inputs required to go green
Consciousness and individual responsibility towards our joint environment
Knowledge about feasible options (research, information, consultancy)
Knowledge management (applying knowledge, investment not required:
switching off the electricity consumer the engine, selecting paint,)
Availability or accessibility of equipment, after sales service
Finance
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Consciousness
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Examples for green measures for MSMEs
Non assets related
• Consultancy (walkthrough)
• Training
• Smart electricity management
• Waste reduction and segregation
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Examples for EE equipment for MSMEs
Major fields of investment in EE
• Lighting: outphasing of incandescent light bulb, fluorescence light, and
compact fluorescence light (CFL) for LEDs
• Refrigerating and air conditioning: Inverter technology, heat absorbers
for heating water (simultaneously: replacement of ozone depleting
substances)
• Heating (using process heat)
• Green transport: reduced fuel consumption and lower CO2 emission, use
of LPG, LNG
• Green building architecture and environment
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Equipment: Selecting the right color: transport
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Building design and material
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Building design and material
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Examples for RE equipment for MSMEs
Warm/hot water generation:
Solar heat collectors
150 l = about Ᵽ 30,000 to Ᵽ 60,000
without/with electric heater
serves two to three hotel rooms
Savings: about 3 kWh/day x Ᵽ 11
or about Ᵽ 10,000 per year
(Smaller and larger capacities available)
In Bohol only available at Citi Hardware,
Tagbilaran City
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Examples for RE equipment for MSMEs and cooperatives
• Agricultural waste converting to electricity (rice husks, melasse, etc.)
• Biodigester
• Micro-hydropower: 100 kW, investment Ᵽ 10,000,000 and more
depending on civil construction (dam) and distribution grid, serves more
than 100 rural households
• Photovoltaic electricity generation: 100 kWp, investment Ᵽ 10,000,000 to
Ᵽ 20,000,000 or more depending on battery capacity + 1,000 m2 land
Annual income: 1.2 kWh/Wp x 100,000 Wp x Ᵽ 7/kWh = Ᵽ 840,000
(Income is higher when based on feed-in tariffs)
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LED lamp, rechargeable battery, solar panel : Ᵽ 8,000
(Edward Marcs, Cebu)
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Promoting energy efficient LED lamps
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Replacement lighting Calculation model
Replacing 100 tube type lamps in shop and in office
Old:
Tube type 8, 36 W, magnetic ballast
Replacement:
2 LED 7 W, bulb
Investment/tube: Ᵽ 1,200 + Ᵽ 1,000 for new fittings, total Ᵽ 2,200
Investment:
Ᵽ 220,000 to replace 100 tubes
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Replacement lighting Calculation model
Savings
36 W – 2 x 7 W = 22 W x 12 hours/day x Ᵽ 11 / kWh = Ᵽ 2.9/day per tube
Total savings/year: Ᵽ 2.9 x 360 days x 100 tubes = Ᵽ 104,400/year
Payback period: 2.1 years
Further savings:
Less electricity consumption for AC: LEDs emit less heat
Replacement period for bulbs about 5 times longer
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Efficiency of air conditioners (AC)
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13.6 for inverter / 9.2 = 1.48
= 48% higher EER
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Replacement of air conditioner for office/home
Model
conventional
inverter
900
700
Consumption
W/h
Savings of inverter
W/h
200
Running time
h/day
8
Savings per day/year
kWh
1.6 / 584
Electricity tariff
Ᵽ/kWh
11.0
Savings
Ᵽ/year
6,424
Price of new AC
Ᵽ
Payback period of difference (Ᵽ9,000)
16,000
25,000
Less than 1.5 year
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Biogas from piggeries
Biogas/methane capture and electricity production facility
Investment cost: about Ᵽ 7 million for 1,000 sow level farm
Savings replacement of electricity from grid: 80% or Ᵽ 0.5 million (7.1%)
Carbon credits
1,000 sow level = 10,000 heads = 18,000 t CO2 equivalent/year
18,000 t x EUR 0.5 – 5.0 / t CO2 = EUR 9,000 – 90,000
or Ᵽ 0.45 – 4.5 million per year
This income has to be shared with the carbon credit arranger, e.g. bank.
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Access to financing institutions is easy, but access to green finance?
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Suggestion
Act environmentally consciously
Support environment friendly activities
We have only this planet, the next one is too far away
Thank you!
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