Financing the Sustainable Development Agenda de Zoysa_Sri Lank… · Chair, Global Sustainability Solutions / Executive Director, Centre for Environment & Development Uchita de Zoysa

Sustainable Development Advisor, Ministry of Sustainable Development & Wildlife, Sri LankaChair, Global Sustainability Solutions / Executive Director, Centre for Environment & Development

Tel: +94 112879118 Fax: +94 112885492 Mobile:+94777372206 Email: [email protected] de Zoysa

Financing the Sustainable Development AgendaReport on the Preliminary Scoping Study on Climate Financing in Sri Lanka and

Evolving a Policy Coherence & Institutional Coherence Mechanism for SDGs

Regional Seminar on Innovative Climate Finance Instruments for Financial Institutions

19 – 20 June 2017, CR-4, UNCC, Bangkok, Thailand

A Strong Case for Climate Financing in Sri Lanka

Uchita de Zoysa - Sustainable Development Advisor, Ministry of Sustainable Development & Wildlife, Sri Lanka

“Heavy rains were received on 25th May within 12 hours in the South-western watersheds in the country up to 619mm leading riverine floods of the Kalu, Nilwala and Gin rivers.”

Goal 13

• 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

Goal 01

• 1.5 By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters

Rebuilding

Cost LKR 8 Billion =

USD 52.5 Million

“A total of 849,752 individuals belonging to 243,683 families in eight districts in the north and east had been affected by the severe drought condition across the country.”

Low Disaster Preparedness

Broken Resilience

Poverty Up

Over 19,900 cases of climate induced disease issues among the livestock are reported from 18 districts by May 2014Over 1.8 million Sri Lankans are affected by drought since 2013Sri Lanka’s economic loss from floods alone -USD 1 billion for 10 years (Humanitarian Bulletin, Sri Lanka, Issue 03 | Aug 2014).87,281 ha of paddy lands were affected in Maha 2013/14Most agriculture ‐based livelihoods in the Dry and Intermediate Zones were affected.(Rapid Food Security Assessment in Districts Affected by

Erratic Weather Conditions in Sri Lanka: Preliminary findings April 2014)

Financing for Adaptation:• Adaptation Fund (2012) USD 8.5 million

• Global Environmental Facility, Special Climate Change Fund (2013) USD 3.2 million

• Green Climate Fund (2016) USD 38.1 million

Sri Lanka’s Access to Climate Finance


Financing for Mitigation:• Global Environmental Facility: Mitigation Funds for Renewable

Energy

• UNREDD Programme

• Community-Based Adaptation (AusAID 2010-2014)

Green Financing Tools for Financing Institutions


Financial Tools Status Comments1. Disclosure of climate-related financial risks

No Currently not available in Sri Lanka

2 Credit ceilings and Climate Related Stress Testing

No

Sri Lankan banks currently do not provide ceiling for carbon intensive polluting activities. The national legislative and policy framework must provide strict guidelines in order for financing sustainable development in Sri Lanka. In fact, incentive for low carbon projects must be provided by the policy framework to create a market demand, as no exemptions are available also for low carbon projects in banks.

3. Directed Green Credit Policy InstrumentsNo

Not yet commenced. However, most banks in Sri Lanka at their discretion have initiated Green Banking initiatives and some have made use of international credit lines for green energy.

4. Green Differentiated Reserve Requirements

NoNo requirement in Sri Lanka yet

5. Green Differential Capital Requirements No No such system in Sri Lanka yet

6. Acceptance of Carbon Certificates as part of Commercial Banks’ Legal Reserves

NoNo system in Sri Lanka yet

7. Green Quantification Easing and Reserve Management

No Not system in Sri Lanka yet

8. Green Finance Guidelines and Frameworks Yes

However, Sri Lanka Banks' Association is in the process of formalizing a standard procedure to follow the internationally recognized principles of sustainable banking in the banking sector.

9. Signatory to UN Principles on Responsible Investing or any other social impact investment standard?

NoThe https://www.unpri.org/directory/ does not identify Sri Lanka as a signatory country?

10. Other financial tools (e.g. Risk sharing) No -11. Other low carbon, climate resilience related products and services Yes

Various products and initiatives have been launched by banks at their discretion including funding for green projects, E-waste programmes, private sector investment in renewable energy and energy efficiency projects, etc.

https://www.unpri.org/directory/

Overview of NDCs - Sri Lanka


• NDCs of Sri Lanka were prepared based on the Readiness Plan for the Implementation of the Intended Nationally Determined Contributions (INDCs) 2017-2019.

• Sri Lanka’s NDCs comprise of following four areas;

1. Mitigation2. Adaptation 3. Loss and Damage 4. Means of Implementation

0%

5%

10%

15%

20%

25%

Energy (20%) Transport (10%) Industry (10%) Forest (10%) Waste (10%)

NDC SRI LANKA - GHG emission reduction targets

Conditional unconditional

4%

3%3% 3% 3% “Sri Lanka intends to reduce the GHG emissions against Business-As-Usual scenario unconditionally by 7% and conditionally 23% by 2030”

Preliminary Stakeholder Mapping of Green Financing


Note: this is only a preliminary response mapping from the National Workshop on Climate Finance and not an accurate description of institutions engaged in climate financing

Institutional Architecture for SDG13


05 Targets

93 Agencies

28 Ministries

NDCs SDGs

A coherent and coordinated inter-agency institutional architecture for convergence planning and integrated implementation is necessary


Challenges: Complexity, Comprehension, Coherence & Convergence

[work in progress]

• Countries are trying to fit the SDGs into their national frameworks

• Agencies are competing for roles –fragmentation is obstructing the transition

• Redefining SDGs for political, sectoral or silo administrative conveniences will confuse the monitoring and reporting process and compromise the transformation.

Planning an Inclusive Transformation & Financing the SD Agenda

2016-2020

• Legislative, Institutional & Policy Framework established

2021-2025

• Investment for sustainable infrastructure and systems in place

2026-2030

• Coherent and convergent sustainable systems in motion


1. Environmental Sustainability Standards SCS 1: Integrate the value of Natural Capital and Conservation of BiodiversitySCS 2: Reduce Ecological Footprints and Enhance Ecosystem Services SCS 3: Conserve and Restore Forests, Parks, Wetlands, Farm Lands and Plantations SCS 4: Conserve and Restore Inland Fresh Water, Coastal and Ocean Resources SCS 5: Integrated Management of Air, Land, Water, and Natural Processes and Resources SCS 6: Mitigation and Adaptation Interventions towards Climate Change SCS 7: Adopt and Adhere to Air, Water, Soil and Noise Quality standardsSCS 8: Prevent, Minimize and Manage Waste, Emissions and PollutionSCS 9: Improve Resource Efficiency, Urban and Industrial EcologySCS 10: Demonstrate Respect for Environmental Justice and the Commons

2. Social Sustainability StandardsSCS 11: Ensure Equality of Opportunity, Eradicate Poverty and Deprivation , and Advance Wellbeing SCS 12: Advance Happiness, Contentment and MindfulnessSCS 13: Strengthen Social Justice, Human Rights, Gender Equality, Community Peace and Ethnic Harmony SCS 14: Preserve Cultural Heritage, Values, Lifestyles and Knowledge SystemsSCS 15: Facilitate Leisure, Recreation and Spiritual AdvancementSCS 16: Facilitate Education, Lifelong Learning, Skills and Human Development SCS 17: Ensure Health, Sanitation, Nutrition, Safety, and Security SCS 18: Ensure Access to Clean Water, Clean Modern Energy, and Public UtilitiesSCS 19: Ensure Access to Justice, Decent Jobs and Economic Development BenefitsSCS 20: Ensure Food Security and Safety

4. Good Governance StandardsSCS 31: Adhere to Rule of Law, Institutional Mandate, Policies & RegulationsSCS 32: Posses Requisite Capacity, Resources, Financing and Partnerships StrategiesSCS 33: Ability to Avoid, Mitigate, and Manage Risks and ImpactsSCS 34: Uphold Human Rights, Labor Laws and Working ConditionsSCS 35: Transparent, Responsive, Effective and Efficient SCS 36: Ensure Equitable, Inclusive and Participatory Stakeholder Engagement SCS 37: Generates Consensus, Public Acceptance and Community GoodwillSCS 38: Incorporate Accountability, Transparency, Audit and Disclosure ObligationsSCS 39: Recourse for Acquisition, Disruption, Displacement and ResettlementSCS 40: Eliminate Marginalization, Discrimination and Injustice

3. Economic Sustainability StandardsSCS 21: Leads to Poverty Eradication, Income Equity, Productive Employment, and Quality of LifeSCS 22: Promote Inclusive Growth, Green Economy, and Sustainable EnterprisesSCS 23: Advance Sustainable Consumption and Production SystemsSCS 24: Adopt Carbon Neutral Technologies, Energy Efficiency Systems and Sustainable InnovationsSCS 25: Promote Social Responsibility, Ethical Investment and Responsible BusinessSCS 26: Assure Consumer Protection, Affordability, and Fair TradeSCS 27: Safeguards Small and Medium Enterprises and Support Local Industries SCS 28: Planned for Resilience, Sustenance & Longevity SCS 29: Designed for Investment, Cost Recovery, Profitability, and ContinuitySCS 30: Integrate Environmental Economics and Full-Cost Accounting Considerations

Measuring Sustainability: Sustainability Compliance Standards Framework[a composite index for measuring sustainable development plans and projects]


Sustainable Development Advisor, Ministry of Sustainable Development & Wildlife, Sri LankaTel: +94 112879118 Fax: +94 112885492 Mobile:+94777372206 Email: [email protected]

Uchita de Zoysa

Documents

Financing the Sustainable Development Agenda de Zoysa_Sri Lank… · Chair, Global Sustainability Solutions / Executive Director, Centre for Environment & Development Uchita de Zoysa