-
To what extent can a financier be green?
Kazunori MIURAJapan International Cooperation Agency
-
Presentation outline
JICA at a Glance How can a Financier promote green
economy? Think Green Implement Green ProcureGreen?
Conclusion
-
JICA at a Glance (JICAs Activities in Numbers)
3
An overview of results for the past 10 years is used where there
are no references to dates.
Source: JICA Annual Report
-
I. Overview of JICA Three main arms of cooperation
ODA Loans are provided by the GOJ through JICA atconcessional
conditions, namely low interest rates and a longmaturity period, to
developing countries to finance investment fordevelopment.
Japans technical cooperation aims to nurture the humanresources
who will lead economic and social development in developing
countries by passing on Japans technologies and expertise.
Japan is providing assistance in the form of grants with no
repayment obligations to provide the goods and servicesnecessary
for projects for economic and social development in developing
countries.
Delhi Mass Rapid Transport System Project
in India
Assistance in agricultural production
in Uganda
Rural water supply in Ethiopia
Cooperation through Finance and Investment
Technical Cooperation
Grant Aid *
* Note : JICA carries out a substantial part of the budget for
Grant
Aid operations, while the rest is left for MOFA.
Foreign exchange rate:
USD/JPY = 80
In FY 2012, approximately 75% of JICAsoverall budget is
allocated to Finance andInvestment.
See also Appendix I. (p.26, FY 2012 Budget).
*
*
145(1.8)
162(2.0)
880(11.0
)
FY2012Budget
JPY bn(USD bn)
4
-
5Country Balance (JPY tn (eq. USD bn))1 Indonesia 2.11 (26.4)2
China 1.71 (21.4)3 India 1.44 (18.0)4 Vietnam 0.91 (11.4)5 The
Philippines 0.91 (11.4)6 Pakistan 0.57 (7.1)7 Thailand 0.47 (5.9)8
Sri Lanka 0.37 (4.6)9 Egypt 0.29 (3.6)10 Turkey 0.28 (3.5)
I. Overview of JICA Exposure to Asia Over 80%
Geographical distribution (as of March 31, 2012)
10 major debtor countries (as of March 31, 2012)
Accumulated Total ODA Loan:JPY 28.5 trillion (eq. USD 356bn)
Foreign exchange rate:
USD/JPY = 80
-
6Example of projects financed by Japanese ODA Loans
Photo/JICA
Highway Construction Project Thailand 2nd Bangkok International
Airport Construction Project Thailand
Transmission Improvement Project IndiaHydroelectric Dam
Construction ProjectThailand
-
How can a financier promote green economy?
Think green Implement green Procure.green?
In addition, Be green..
JICA has ISO 14000 since 2002.
-
Think GreenInitiatives taken by the Government of Japan
Cool Earth Partnership (January 2008): Financial assistance (US$
10 billion over 5 years) to developing countries for reduction of
GHGs emissions
Hatoyama Initiative (September 2009): Mobilization of financial
resources (US$ 15 billion over 3 years) for developing countries to
cope with the climate change
-
Think Green (continued) Projects to cope with the climate
change
- mass transit (India, Thailand, Vietnam, etc.)- renewable
energy
Projects to improve environment- wastewater treatment-
afforestation/forest protection, etc.
Programs to reinforce the institutional framework of the partner
countries
- Climate change program loan (Indonesia, Vietnam)
-
JICA emphasizing Environmental issues (climate change)
JICAs climate change policy is broadly classified into
mitigation measures(1)(2) and adaptation measures(3). JICA has been
tackling climate change in developing countries as a critical part
of development issues. As a part of the United Nations Environment
Programme Finance Initiative (UNEP FI), JICA cooperates with AFD
(Agence
Franaise de Dveloppement ), KfW (KfW Bankengruppe), EIB
(European Investment Bank) and NEFCO (Nordic Environment Finance
Corporation) in financing related to climate change as a bi-lateral
development finance institution.
Senegal, Mozambique, Nigerand Ethiopia: Programmesfor Emergency
Water Supply
Zambia: Increased Access to Electricity Services Project
Egypt: Zafarana Wind Power Plant Project
Egypt: Gulf of El Zayt Wind Power Plant Project
Kirgizstan: Biogas Technology DisseminationSupport Project
India: Delhi, India Mass Rapid Transport System Project
Vietnam: Support Program to Respond to Climate Change
(SP-RCC)
Vietnam: Development Study on Capacity Development for AR-CDM
Promotion
Finance and Investment
Technical Cooperation
Grant Aid
Indonesia: Climate Change Program Loan 1-3
Tanzania: Transmission and Distribution Facilities
Reinforcement
Kenya: Olkaria Geothermal Development Project
Kenya:Transmission line project
Technical Cooperation
Technical Cooperatio
n
Vietnam: Energy Saving/ Renewable Energy Project
Bangladesh
Rural Electrification Project
Bangladesh: Combined Cycle Power Plant Project
Indonesia: Lumut Balai Geothermal Power Plant Project
Brazil: Utilization of ALOS Images toSupport Protection of the
BrazilianAmazon Forest and Combat againstIllegal Deforestation
Finance and
Investment
Finance and
InvestmentFinance
and Investment
Finance and
Investment
Finance and
Investment
Finance and
Investment
Finance and
Investment
Finance and
Investment
Finance and
InvestmentFinance and
Investment
Finance and
Investment
Finance and
Investment
8
Outline of JICAs climate change policy and its achievements
(1) Reducing emissions and increasing absorption of greenhouse
gases which causes climate change(2) Mitigation measures include
REDD+ (Reducing Emissions from Deforestation and Forest Degradation
in Developing Countries).(3) Climate change at present and the
future, and mitigating and addressing the damage from the effects
of climate change
-
Implement GreenTraditional Safeguard and Built-in Mechanism
JICAs Environmental Guidelines
http://www.jica.go.jp/english/operations/social_environmental/guideline/pdf/guideline100326.pdf
Protection of the environment during the construction works
- contractual requirements (by the Contractor)- construction
supervision (by the Engineer)
-
Procure Green ?Who will benefit from it?
Select Greener Contractors Promote use of Greener products
Difficulties- How to define greener?- How to evaluate greenness
- Then, who will benefit from it?
-
Procure Green ? (continued) It was once proposed to JICA:
- environmental friendly equipment (e.g. pumps) should be
procured under Japanese ODA Loans.
- Environmental Friendliness should be evaluated by CO2 emission
to produce such equipment
Questions- Can all the manufacturers trace the CO2 emission?-
How to make sure the CO2 emission declared by bidders is true and
correct?
- Is the Employer ready to accept higher prices for that?
-
Conclusion Financiers can play a leading role to promote
green economy through their operations Traditional safeguard and
conventional
mechanism built in the contract/supervision help projects to
remain green, at least not brown.
Concept of green procurement may deserve more consideration.
But, it should be developed so as to be more beneficial to the
Employer.
-
Thank you for your attention!
