Ceo forum vii siem reap jbic session

f i n a n c i n g

d e v e l o p m e n ts u s t a i n a b l e

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 Alliance of Development Financing Institutions for Climate Finance” Institutions for Climate Finance”

Nihal FonsekaCEO, DFCC Bank

Chairman, ADFIAP

ADFIAP/JBIC Joint Program on Environmental Cooperation Framework Siem Reap, November 17, 2010

AGENDAAGENDA

ADFIAP’s Mission & Focused Areas

The Business Case for Climate Finance

ADFIAP & DFIs in Action – Case Studies

Concluding Remarks


ADFIAP’s Mission & Focus AreasADFIAP’s Mission & Focus Areas

Economic Social

Environment

GovernanceGovernance

•Financial Inclusion•Social Housing•Education & Health

•MSMEs•Trade•Agriculture•Industry•Technology•Infrastructure•Services

•Climate change•Environment finance

•CDM•Carbon finance•Others

•Corporate Governance •Institutional Integrity

“Financing Sustainable Development”

The Business Case for Climate FinanceThe Business Case for Climate Finance

Climate change effects on financial institutionsAs 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.



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.



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


Starting from within:The Environmental Governance ProjectThe 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.


Starting from within: The The “Greening of DFIs”“Greening of DFIs” Project Project

Sustainability Report Water Financing Carbon Offset

Certificate Green Banking Book Launch

Project Partners


http://www.adfiap.org/docs/ADFIAP_WATER_REPORT_AUGUST_2009.pdf

http://www.st-andrews.ac.uk/

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.

Cumulative Approvals & Disbursements of Credit under RERED & RERED-Additional

Financing as at 30 Sept. 2008


www.devbankphil.com.ph

DBP ForestDBP Forest: Greening the countryside by planting high-yielding fruit trees, reducing GHG emissions

Clean Development MechanismClean Development Mechanism* (CDMCDM):

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 ProjectEnvironmental Development Project* (EDPEDP)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)


The Green Technology Financing SchemeThe 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 environmenthas zero or low green house gas (GHG) emissionsafe for use and promotes healthy and improved environment

for all forms of life; conserves the use of energy and natural resources; orpromotes the use of renewable resources.


SME Development Bank of ThailandSME Development Bank of Thailand – provides loans for hire-purchase of natural gas vehicles

Bank of KhyberBank of Khyber – assists small entrepreneurs to finance purchase of /conversion to natural gas auto rickshaw

Lankaputhra Development BankLankaputhra Development Bank – to open avenues for small farmers to move towards new technology, techniques and market opportunities

Land Bank of the PhilippinesLand Bank of the Philippines – provides financing for bio-fuel projects sourced from a kind of plant called jatropha curcas

Bank of MaharastraBank of Maharastra – provides loans for adoption of renewable energy practices and use of solar home systems

Green Green Finance of other ADFIAP Members: Finance of other ADFIAP Members: A SamplingA Sampling


Concluding RemarksConcluding 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.

Thank you for your attention!Thank you for your attention!


Let’s all help save our Earth!www.adfiap.org

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Ceo forum vii siem reap jbic session