SCOPING STUDIES ON CLIMATE FINANCE Indonesia, Philippines, - - PowerPoint PPT Presentation
SCOPING STUDIES ON CLIMATE FINANCE Indonesia, Philippines, Pakistan 2 N D N A T I O N A L W O R K S H O P O N I N N O V A T I V E C L I M A T E F I N A N C E M E C H A N I S M S F O R T H E F I N A N C I A L I N S T I T U T I O N S
2 N D N A T I O N A L W O R K S H O P O N I N N O V A T I V E C L I M A T E F I N A N C E M E C H A N I S M S F O R T H E F I N A N C I A L I N S T I T U T I O N S I N S R I L A N K A , 7 - 8 N O V E M B E R 2 0 1 7 N A T A L I E H A R M S - U N E S C A P
mobilize domestic private finance to implement (Intended) Nationally Determined Contributions central & national development banks are key players assess capacity gaps - strategic priority areas - scope institutional policy landscape - identify stakeholders & project champions - entry points
unconditional 29% GHG reduction by 2030
N D C Bappenas MoEF MoF OJK Climate Change Trust Fund (ICCTF) Millennium Challenge Account (MCA) DirGen for CC (Ditjen PPI) - Adapt. Fund Fiskal Policy Agency (BKF) - NDA GCF guidelines for banks & FIs to achieve NDC
Financial Services Authority, independent state institution: regulate, oversee, inspect, investigate ! New regulation to restrict banks’ lending to environmentally damaging projects by 2018 lack of capacity lack of awareness of sustainable business practices lacking coordination & enabling environment O J K Roadmap for Sustainable Finance 2015 – 2019 Pilot project on Sustainable Banking with WWF involving 8 commercial and state banks Bali Center for Sustainable Finance OJK Regulation on Sustainable Finance barriers to green investment
20% emissions reduction target by 2030 Climate Change Act Climate Change Fund CC Council & Authority advocacy & awareness for climate responsive business Green Banking promotes sustainable banking practices Green Banking Guidelines for private sector investment Refinancing Scheme for Renewable Energy in 2016 N D C State Bank of Pakistan Pakistan Business Council Ministry of Climate Change
access to international & regional finance insufficient institutional arrangements, unclear roles & responsibilities of different ministries little monitoring of impact & cost attribution barriers to green investment
way forward
strengthen data & analytical capacity in MoCC & MoF link climate change & banking industry understanding of required investment for adaptation / mitigation develop technical tools to estimate GHG emissions dedicated sections in commercial banks for green financing portfolio & green product development
conditional reduction target of 70% by 2030 national policies & strategies for mitigation & adaptation understanding & awareness for green investment de-risking to mobilize private finance adaptation & resilience projects at local level N D C People's Survival Fund CC Commission Bangko Sentral ng Pilipinas (BSP)
C L I M A T E C H A N G E A C T
no policy incentivizing banks at the national level no national financial products to incentivize low carbon investments absence of a regulatory policy mandating banks to embed environmental & social safeguards barriers to green investment way forward BSP encourages increase in portfolios on green finance lessons learned from central banks of other countries
build capacity of FIs to identify climate risks & green technologies & how to prepare viable proposals tripartite partnership: CCC - BSP - ADFIAP for a charter for green finance
Natalie Harms United Nations Economic and Social Commission for Asia and the Pacific natalie.harms@un.org