kazunori miura japan international cooperation agency€¦ · jica emphasizing environmental issues...
TRANSCRIPT
To what extent can a financier be green?
Kazunori MIURA
Japan International Cooperation Agency
Presentation outline
� JICA at a Glance
� How can a Financier promote green economy?
� Think Green
� Implement Green
� Procure…Green?
� Conclusion
JICA at a Glance (JICA’s 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 at
concessional conditions, namely low interest rates and a long
maturity period, to developing countries to finance investment for
development.
� Japan’s technical cooperation aims to nurture the humanresources who will lead
economic and social development
in developing countries by
passing on Japan’s technologies
and expertise.
� Japan is providing assistance in
the form of grants with no repayment obligations to
provide the goods and services
necessary 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 JICA’s
overall budget is allocated to Finance and
Investment.
� See also Appendix I. (p.26, FY 2012 Budget).
*
*
145(1.8)
162(2.0)
880(11.0
)
FY2012
Budget
JPY bn(USD bn)
4
5
CountryBalance
(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
6
Example 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 Project–Thailand
How can a financier promote
green economy?
� Think green
� Implement green
� Procure….green?
In addition, “Be green”…..
JICA has ISO 14000 since 2002.
Think Green~Initiatives 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)
� JICA’s 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
Française de Développement ), 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, Niger
and Ethiopia: Programmes
for 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 Dissemination
Support 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 to
Support Protection of the Brazilian
Amazon Forest and Combat against
Illegal Deforestation
Finance
and
Investment
Finance
and
Investment
Finance
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
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Outline of JICA’s 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 Green~Traditional Safeguard and Built-in Mechanism
� JICA’s Environmental Guidelineshttp://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!