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www.thegreenwerk.net | [email protected] | Große Theaterstraße 14 | 20354 Hamburg | Germany © 2017 the greenwerk.
Technical Session: Innovative Climate Finance approaches for Green Banking in Sri
Lanka2nd National Workshop on Innovative Climate Finance Mechanisms for
the Financial Institutions in Sri Lanka, 7-8 November 2017
www.thegreenwerk.net | [email protected]
Objective: Informing the discussion and group work on further advancing CF & green banking in SL
Presentation on “Introduction to climate finance instruments for green banking” by Ms. Subhi Shama, ESCAP
Video Message from Pakistan
Presentation on “Blending green banking with International Climate Finance” by Mr. Bjoern Dransfeld, the greenwerk
Response on “Experiences and challenges for green banking in Sri Lanka” by Mr. Nalin Karunatileka, DFCC Bank
Discussion 2
Agenda: Innovative Climate Finance approaches for Green Banking in Sri Lanka
www.thegreenwerk.net | [email protected] | Große Theaterstraße 14 | 20354 Hamburg | Germany © 2017 the greenwerk.
Blending green banking with International Climate Finance
2nd National Workshop on Innovative Climate Finance Mechanisms for the Financial Institutions in Sri Lanka, 7-8 November 2017
I. Sri Lanka and intl. Climate Finance
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Examples for intl CF in Sri Lanka (2015 data CFU)
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Fund Name of Project Focus Implementing Agency
Approved year Grant
Adaptation Fund (AF) Addressing Climate Change Impacts on Marginalized Agricultural Communities Living in the Mahaweli River Basin of Sri Lanka
Adaptation WFP 2012 7,99
Global Environmental Facility (GEF4)
Portfolio Approach to Distributed Generation Opportunity (PADGO) (Phase 1)
Mitigation -general
IBRD 2007 3,60
Global Environmental Facility (GEF4)
Promoting Sustainable Biomass Energy Production and Modern Bio-Energy Technologies
Mitigation -general
UNDP 2010 2,00
Global Environmental Facility (GEF4)
TT-Pilot (GEF -4): Bamboo Processing for Sri Lanka Mitigation -general
UNIDO 2010 2,36
Global Environmental Facility (GEF5)
Appropriate Mitigation Actions in the Energy Generation and End-Use Sectors in Sri Lanka
Mitigation -general
UNDP 2015 1,79
Special Climate Change Fund (SCCF)
Resilient and Integrated Urban Development for Greater Colombo
Adaptation 2015 4,20
Special Climate Change Fund (SCCF)
Strengthening the Resilience of Post Conflict Recovery and Development to Climate Change Risks in Sri Lanka
Adaptation UNDP 2011 3,18
Strategic Priority on Adaptation (SPA) (from GEF4)
Participatory Coastal Zone Restoration and Sustainable Management in the Eastern Province of Post-Tsunami Sri Lanka
Adaptation IFAD 2,10
UNREDD Program Direct support to the design and implementation of UN-REDD National Programmes
Mitigation -REDD
FAO / UNDP / UNEP 2012 4,00
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Examples for intl CF in Sri Lanka (ctd)
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The imagGCF:
• 1 adaptation project
• UNDP, irrigation management, FP16 „Strengthening the resilience of smallholderfarmers in the Dry Zone to climate variability and extreme events through an integrated approach to water management, UNDP, Sri Lanka“
• Improving the community irrigation water infrastructure, scaling-up decentralizeddrinking water systems, and strengthening early weather warnings, flood-response, and water management
• USD, 52 million with a USD 38 million grant from GCF, and co-finance from SL Gvtof USD 14 million grant
• National Designated Authority (NDA): MINISTRY OF MAHAWELI DEVELOPMENT AND ENVIRONMENT
• Readiness Proposal in Pipeline: NDA strengthening and country programme
• Readiness Partner: UNEP, Purpose: Amount: USD 0.8 million
II. Examples from other countries
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Train-the-Trainer Seminars atRENAC‘s Training Centre in Berlin
Trainings in India, Indonesia, Philippines, Thailand and Vietnam
Delegation tours & B2B meetingsin Germany
“Green Finance Specialist” program
Online trainings
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Example: Indonesia
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Indonesian Climate Change Trust Fund (ICCTF)
• Purpose and organisation: created in 2009 to deliver international finance to national strategies
► funding decisions are at country level, UNDP was interim Trustee (now local Bank)
• First phase: Innovation Fund
o mostly grant funding from public & international sources (development partners, i.e. bilateral and
multilateral donors)
o channelled to line ministries for climate-change related projects
o by end 2015: US$16.71 deposited, US$ 7.69 million disbursed to 16 projects
• Second phase planned: Transformation Fund
o public-private partnerships, loans, and world capital markets to increase
private-sector finance
So far, the ICCTF remains at first stage
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Example: Viet Nam
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Green Investment Facility (GIF)
• established in 2015 as part of the Low Carbon Transition in Energy Efficiency Sector (LCEE) program
and under the lead of the Vietnamese Ministry of Industry and Trade (MOIT) with financial support
from the Government of Denmark (GoDK) ► supports local SMEs in getting access to funding for
EE projects by offering guarantees and Energy Saving Awards (performance-based grants)
• Features:
o concentrates on a limited number of sectors (food industry, ceramics industry, brick industry) and prioritizes
certain technology solutions
o apart from SMEs, Energy Service Companies (ESCOs) are also eligible for GIF support, in case they are
providing solutions to SMEs within the target sectors
• Currently in its pilot phase (2015-17): GIF is equipped with a total funding volume of USD 5.2 mio
o Guarantee: VND 200 million - VND 4 billion (USD 10.000 to USD 200.000)
o Energy Saving Awards: up to 30 percent of the principle value of the
loan requested by the SME
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Example: Philippines
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Example: Sustainable Energy Finance (SEF) Program
• launched in 2009 as a cooperation between the International Finance Corporation (IFC) and
the Bank of the Philippine Islands (BPI) ► designed to encourage local enterprises (e.g.
industrial/manufacturing companies, equipment vendors/integrators, agri-business) to invest in
RE and EE solutions
• Investment options: capital expenditure, working capital financing, equipment leasing ► BPI
offers market-rate loans (max. USD 4 mio) and IFC provides guarantees (50% of loan amount
requested)
• BPI put an emphasis on a client-oriented application process (e.g. free walkthrough energy
audit and a validation of financial and technical data)
• Results: between 2009 and 2015 the SEF Program has provided loans for projects
worth USD 698 mio in total, leading to a reduction of GHG emissions by up to
1.9 mio tons/year
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Sustainable Energy Finance (SEF) Program
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Introductorymeeting
Submission ofenergy
consumption and equipment
data/projectinformation
memorandum
Conduct walk-through energyaudit/valdiatefinancial and
technical data
Computepotential savingsfor EE project and prepare financingrecommendation
for RE projec
Presentation ofresults to client Loan Packaging
Source: BPI 2014
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Thank you very much!
Björn DransfeldFounding Partner
the greenwerk. Climate Advisory Network
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Discussion
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Discussion: Innovative Climate Finance approaches for Green Banking in Sri Lanka
A - Understanding your experiences with climate finance / sustainable finance / green banking:
1. What examples can you share from your daily work?2. Are there specific positive highlights / success factors?3. Are there specific barriers preventing work in this context?
B - What is required to mainstream success factors (Roadmap, SBI), what is required to overcoming barriers?
C - Where and how could international climate finance support Sri Lanka?
Group Work
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Group Work: Innovative Climate Finance approaches for Green Banking in Sri Lanka
Format: Small break out groups, you have 20-30 minutes
Task:
What are the TOP 5 needs you identify to move forward towards sustainable banking (What & how)?
Document it on paper!