Date post: | 16-Jan-2016 |
Category: |
Documents |
Upload: | prudence-jordan |
View: | 213 times |
Download: | 0 times |
Green Finance for Green Growth ~ Public Private Financial Partnership ~
17 November 2010
Takashi HongoSpecial Advisor and Head of
Environment Finance Engineering Department
Japan Bank for International Cooperation
22
Green Finance for Green Growth
3
Financial Crisis
Environment Constraint
Energy Constraint
Green Stimulus
Green Growth
Economic Growth of Asia
Technology DrivenPrivate DrivenMarket-base MechanismLevel Playing FieldsAccess to Clean Energy
Triple Threats
4
0
200
400
600
800
1 000
1 200
2015 2020 2025 2030
Billio
n do
llar
s (2
008)
そOther
Emerging
OECD+
Source IEA WEO2009
From OECD to non-OECD
低炭素社会実現のための追加投資~資金需要と資金供給~
0
100
200
300
400
500
Demad Supply
Supply from non-OECD
Supply fromOECD+
Demad from others
Demad of Emerging
Demad of OECD+
Demand and Supply of Additional Investment
0
500
1,000
1,500
2,000
2,500
3,000
3,500
DevelopingAsia
US J apan
AseanIndiaChina
USD billion
Source IEA
Additional Investment Demand 2010-2030
55
Source: UNFCCC
Keep the increase in global temperature below 2 degrees. Emissions targets of Annex I Parties for 2020 are to be submitted
by 31 January 2010. Nationally appropriate mitigation actions (NAMAs) by Non-Annex I
Parties are to be communicated every two years. NAMAs seeking international support are to be recorded in a registry.
Crucial role of REDD-plus Additional funding to developing countries:
• USD 30 billion (2010-2012) • Mobilizing USD 100 billion a year by 2020 (public & private, bilateral &
multilateral)• Copenhagen Green Climate Fund
Technology mechanism to accelerate technology development and transfer
Assessment of the implementation of this Accord is to be completed by 2015.
Copenhagen Accord
6
Green Banking/Green Financing
Greening of Operation
Greening of Finance
Contribution for New Mechanism
Minimum Requirement
Proactive Financing
3R, Low Carbon Operation
Environment Guideline
-Commercially Viable BAT-Measurement of CO2 Reduction (MRV)
Voluntary actions-Carbon Offset-Sustainable Forest Rating-Weather Index Insurance for Agriculture
CSR to New Business Model
77
JBIC’s Green Finance
8
JBIC
Negative impact Positive contribution
FinanceFinanceConsideration
of future system
Consideration of
future system
Project Project
FinanceFinance
Environment Guideline
(Avoid, minimize )
OrganizationalOperation
OrganizationalOperation
・ 3R・ CO2 reduction
plan
・ Study・ Proposal
Environment Finance
( LIFE, GREEN)
Knowledge contribution
JBIC for Environment and Bio Diversity(4 arrows approach)
9
“LIFE” (Leading Investment to Future Environment) Initiative by JBIC
●LIFE will … ・ support both public and private sectors, ・ cooperate with multilateral development banks (MDBs) and mobilize private financing. ●JBIC’s financial support under the Initiative will be around 5 billion USD for the next 2 years.
Four main targeted sectors of the Initiative are ... ・ Clean power generation - Solar, geothermal, wind power, clean coal power plant, etc ・ Energy efficiency improvement - Upgrading of existing transmissions and distributions, modernization and heat recovery of steel furnaces and cement
kilns, ESCO (energy service companies), etc. ・ Water - Water purification and supply, sewage system, wastewater treatment, desalination and water processing, etc ・ Urban transportation - Modal shift in densely populated areas, etc
Cooperation(Co-finance, information sharing, etc)
Loans /
Loans, etc
Catalytic role
Loans, etc
MDBs(ADB, World Bank Group, etc)Private financial
institutions
J B I C
Equity Investment
10
JBIC “GREEN”
Futurecarbon market
Finance
J-MRV
Commercially viable BAT
(best available technology)
Deployment
Possibility
・ Industries・ Carbon Players・ Host Government
Dialogue
Share
GHG emission reduction projects
GHG emission reductions
JBIC will review the followings 1. Climate change policy of the host country 2. Technology to be used 3. Reduction amount by J-MRV
J-MRV・ Scaling up low carbon investment・“ simple, practical and internationally acceptable” guideline・ Following investor’s decision making process
(MRV: Measurement, reporting and verification)
Reduction amount
Ownership
New Financial Program (GREEN) and J-MRV(Global action for reconciling economic growth and environmental preservation)
11
・ Scaling up low carbon investment・“ simple, practical and internationally acceptable” guideline
・ Following investor’s decision making process
Baseline amounts = Emissions in the case without investment
Option of Baselinea/ Actual emissions before investment,
b/ Emissions from similar installations in operation in the country or in the region
c/ Emissions from similar installations recently invested in the country or in the region
Reduction amounts = Baseline emissions - Emissions from projects
Taking into account of・ investment climate such as economy, energy,
technology, regulation.・ availability and reliability of data
Sampling and theoretical value may be applicable
http://www.jbic.go.jp/en/about/news/2010/0730-01/100730_mrv_guideline.pdf
J-MRV
1212
-400
-350
-300
-250
-200
-150
-100
-50
0
SteelIndustry
Cement Paper &Pulp
Refrigerator AirConditioner
Lighting
Developed Countries Developing Countries
Source: IEEJ CO2 emission reduction potential by using Japanese BAT
(‘000 ton/Y )
Reduction Potential of Proven Technology
1313
Energy saving and CO2 reduction 18,410Kwh120,000 ton/y(China, 5000ton X2 units)
Cooling Tower
PHBoiler
Demineralizer building
AQC Boiler
Turbine / GeneratorBuilding
Source Kawasaki
Heat Recovery System of Cement Plant
14
Environment Guideline
JBIC’s Environment Guideline・ Pollution control, Natural Environment, Social Environment・ Risk Analysis Department and Independent Third Party・ ECA Common Approach・ Alliance with more than 20 institutions
・ Sustainability of Projects (Risk Mitigation)・ Responsibility of Financial Sector・ International Standard and Custom Local Regulation
Equator Principle・ Project Finance in developing countries・ Around 60 institutions
1515
Innovative Instrument for Green Finance
16
Stock Market
Network
RatingEvaluationAdvisory
The GoodBankers
FundManager
Investment Fund
Institutional and
Individual Investors
Rating System
Forest-friendly Assets
Investment
Advisory Board Financial
Review
InvestmentReviewing
Forest Friendly Activities of companies
Businesses Finances AcademiaPoliciesCitizens
Forest Eco Fund
190 items reviewed
ServiceContract Management
Contract
Source : The Good Bankers Co., Ltd.
Forest Eco Fund
17
最低降雨量(契約上)
降雨量
降雨量
降雨量チェック対象期間
月
降雨不足の場合保険金支払い
降雨量が契約以上保険金支払いなし
農業天候保険の仕組み
Farmers BAAC
JBIC
Sonpo Japan
Study(2008)
Premium
Payment
Development of]WIIA
MOUHost
Participation
Weather Index Insurance for Agriculture (WIIA)
Rain Fall
Minimum Rain Fall (Contract)
Rain Fall
No Insurance Payment
Insurance Payment(Compensation of drop of income)
Monitoring Period month
18
We enjoy biodiversity services.
We need to maintain biodiversity for future generations.
・ Many medicines originate through or were developed by studying biodiversity services.・ Fishing and agriculture depend on biodiversity services.
Today we enjoy biodiversity freely because of its externalities, but without sustainable usage it would be exhausted. Biodiversity
must be internalized to the economy
・ They will need to use biodiversity services just as now, such as genetic businesses developed through science and
technology.
Value of biodiversity
19
Financial risk Financial risk
Financial losses realized on projects because of inadequate
management of biodiversity-related risk
Financial losses realized on projects because of inadequate
management of biodiversity-related risk
Reputation and funding risk
Reputation and funding risk
Mission risk Mission risk
Loss of reputation and financial strength through improper management of
biodiversity-related risk
Loss of reputation and financial strength through improper management of
biodiversity-related risk
Failure to realize sustainable growth through project
financing
Failure to realize sustainable growth through project
financing
Short term risk
Short term risk
Long term risk
Long term risk
Environmental due diligence including
biodiversity
Environmental due diligence including
biodiversity
Proactive finance for projects with
biodiversity components
Proactive finance for projects with
biodiversity components
CSR activities for biodiversity components
CSR activities for biodiversity components
Contribute to mechanism for
BES
Contribute to mechanism for
BES
Risk MitigationRisk Mitigation
Biodiversity-Related Risk for Financial Institutions
20
Estimation of precipitation by the integrated satellite monitoring systemCan we use this system for dam operation or weather derivative?
New Technology and Finance
21
Biomass stock monitoring systemCan we use this for forest management and forest credit system?
New Technology and Finance
2222
Green Finance Proposal
23
Awareness of Environment Constraint
Review of environment impact
Green Finance Alliance(consideration and proposal)
Climate Finance (with MRV)Water Finance
Environment Guideline (safe guard)・ Pollution control
・ Natural environment・ Social environment
Proactive Action Risk Mitigation
System for the future Creating new market
(Forest, Biodiversity etc)
Green Finance
2424
Public Sector(Improvement of investment climate)
Private Sector(Driving force)
Financial Sector (Push last one mile)
Capacity of Our Planet
Change of Lifestyle
Better investment climate, More investment
Use of Technology
Public Private Financial Partnership