To what extent can a financier be green? Japan International Cooperation Agency

Transcription

1 To what extent can a financier be green? Kazunori MIURA Japan International Cooperation Agency

2 Presentation outline JICA at a Glance How can a Financier promote green economy? Think Green Implement Green Procure Green? Conclusion

3 JICA at a Glance (JICA s Activities in Numbers) Source: JICA Annual Report An overview of results for the past 10 years is used where there are no references to dates. 3

4 I. Overview of JICA Three main arms of cooperation Cooperation through ODA Loans are provided by the GOJ through JICA at concessional conditions, namely low interest rates a long maturity period, to developing countries to finance investment for development. Delhi Mass Rapid Transport System Project in India Technical Cooperation Japan s technical cooperation * aims to nurture the human resources who will lead economic social development in developing countries by passing on Japan s technologies expertise. Grant Aid * * Assistance in agricultural production in Uga 145 (1.8) 162 (2.0) 880 (11.0 ) FY2012 Budget JPY bn (USD bn) Japan is providing assistance in the form of grants with no repayment obligations to provide the goods services necessary for projects for economic social development in developing Rural water supply in Ethiopia countries. * Note : JICA carries out a substantial part of the budget for Grant Aid operations, while the rest is left for MOFA. In FY 2012, approximately 75% of JICA s overall budget is allocated to. See also Appendix I. (p.26, FY 2012 Budget). Foreign exchange rate: USD/JPY = 80 4

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) Country Balance (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 Thail 0.47 (5.9) 8 Sri Lanka 0.37 (4.6) 9 Egypt 0.29 (3.6) 10 Turkey 0.28 (3.5) Foreign exchange rate: USD/JPY = 80 5

6 Example of projects financed by Japanese ODA Loans Highway Construction Project Thail 2 nd Bangkok International Airport Construction Project Thail Hydroelectric Dam Construction Project Thail Photo/JICA Transmission Improvement Project India 6

7 How can a financier promote green economy? Think green Implement green Procure.green? In addition, Be green.. JICA has ISO since 2002.

8 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

9 Think Green (continued) Projects to cope with the climate change - mass transit (India, Thail, 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)

10 JICA emphasizing Environmental issues (climate change) Outline of JICA s climate change policy its achievements JICA s climate change policy is broadly classified into mitigation measures (1)(2) 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 Initiative (UNEP FI), JICA cooperates with AFD (Agence Française de Développement ), KfW (KfW Bankengruppe), EIB (European Bank) NEFCO (Nordic Environment Corporation) in financing related to climate change as a bi-lateral development finance institution. (1) Reducing emissions increasing absorption of greenhouse gases which causes climate change (2) Mitigation measures include REDD+ (Reducing Emissions from Deforestation Forest Degradation in Developing Countries). (3) Climate change at present the future, mitigating addressing the damage from the effects of climate change India: Delhi, India Mass Rapid Transport System Project Egypt: Zafarana Wind Power Plant Project Kirgizstan: Biogas Technology Dissemination Support Project Technical Cooperatio n Egypt: Gulf of El Zayt Wind Power Plant Project Kenya:Transmission line project Kenya: Olkaria Geothermal Development Project Indonesia: Lumut Balai Geothermal Power Plant Project Indonesia: Climate Change Program Loan 1-3 Bangladesh: Combined Cycle Power Plant Project Bangladesh : Rural Electrification Project Vietnam: Energy Saving/ Renewable Energy Project Brazil: Utilization of ALOS Images to Support Protection of the Brazilian Amazon Forest Combat against Illegal Deforestation Technical Cooperation Tanzania: Transmission Distribution Facilities Reinforcement Vietnam: Support Program to Respond to Climate Change (SP-RCC) Senegal, Mozambique, Niger Ethiopia: Programmes for Emergency Water Supply Grant Aid Zambia: Increased Access to Electricity Services Project Vietnam: Development Study on Capacity Development for AR-CDM Promotion Technical Cooperation 8

11 Implement Green ~Traditional Safeguard Built-in Mechanism JICA s Environmental Guidelines ne/pdf/guideline pdf Protection of the environment during the construction works - contractual requirements (by the Contractor) - construction supervision (by the Engineer)

12 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?

13 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 correct? - Is the Employer ready to accept higher prices for that?

14 Conclusion Financiers can play a leading role to promote green economy through their operations Traditional safeguard 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.

15 Thank you for your attention!