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 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

objective & scope 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

Indonesia N D C unconditional 29% GHG reduction by 2030 - 41% reduction with international support Climate Change Trust Fund (ICCTF) Bappenas Millennium Challenge Account (MCA) MoEF DirGen for CC (Ditjen PPI) - Adapt. Fund MoF Fiskal Policy Agency (BKF) - NDA GCF guidelines for banks & FIs to achieve NDC OJK

O J K Financial Services Authority, independent state institution: regulate, oversee, inspect, investigate 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 ! New regulation to restrict banks’ lending to environmentally damaging projects by 2018 barriers to green investment lack of capacity lack of awareness of sustainable business practices lacking coordination & enabling environment

Pakistan N D C 20% emissions reduction target by 2030 Ministry of Climate Change Pakistan Business Council Climate Change Act advocacy & awareness Climate Change Fund for climate responsive CC Council & Authority business State Bank of Pakistan Green Banking promotes sustainable banking practices Green Banking Guidelines for private sector investment Refinancing Scheme for Renewable Energy in 2016

barriers to green investment access to international & regional finance insufficient institutional arrangements, unclear roles & responsibilities of different ministries little monitoring of impact & cost attribution 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

The Philippines conditional reduction target of 70% by 2030 N D C C L I M A T E C H A N G E A C T CC Commission People's Survival Fund national policies & adaptation & resilience { } strategies for mitigation & projects at local level adaptation Bangko Sentral ng Pilipinas (BSP) understanding & awareness for green investment de-risking to mobilize private finance

barriers to green investment 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 way forward BSP encourages increase in portfolios on green finance lessons learned from central banks of other countries on risk-sharing schemes 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

thank you! Natalie Harms United Nations Economic and Social Commission for Asia and the Pacific natalie.harms@un.org