Resource Efficient Industries and Cities: Exploring Opportunities for Austrian Companies and Experts in Emerging Markets WORKSHOP INTRODUCTION Daniel James Crabtree February 21 st, 2018
A member of the World Bank Group Provides investment, advice, resource mobilization AAA credit rating; owned by 184 countries Present in nearly 100 countries IFC is the largest global development institution focused on the private sector in emerging markets. 2
DEVELOPMENT FINANCE TODAY Major opportunities for mobilizing private capital to: End Poverty Boost Shared Prosperity Tackle Climate Change Advance Gender Equality 3
CREATING MARKETS A comprehensive approach to tap the power of the private sector through: Establishing regulatory and policy frameworks that improve public governance and enable markets to thrive Promoting competition and innovation Achieving demonstration effects that encourage replication Introducing new solutions driven by improved technology and logistics Building capacity and skills to open new markets INVESTMENT + ADVICE (WITH MOBILIZATION) Cote d'ivoire 4
THE POWER OF PARTNERSHIPS Host Country Governments IFC S GLOBAL NETWORK FOR SOLUTIONS Financial Institution Clients 30+ IFIs/DFIs Sovereign Wealth Funds/ Institutional Investors 2,000+ Clients Civil Society Bilateral Donors/ Private Foundations 5
Speakers - IFC Milagros Rivas Saiz Head, Advisory Solutions Jane Henley Global Operations Lead, Green Buildings Viera Feckova Resource Efficiency Lead, Europe, Central Asia, Middle East and North Africa Denis Obarcanin Operations Lead, Urban Infrastructure, Europe and Central Asia 6
Speakers Austrian Companies Horst Muller CEO, Müller Abfallprojekte GmbH Rudolf Zauner Head, Hydrogen Center, Verbund Christine Vieira Paschoalique Corporate Sustainability Officer, Wienerberger AG 7
Daniel James Crabtree Head, Strategic Partnerships T: +1 202 458 9150 Email: dcrabtree@ifc.org 2121 Pennsylvania Ave. NW Washington, DC 20433 USA 8
BREAKING INTO EMERGING MARKETS WITH RESOURCE-EFFICIENT TECHNOLOGIES AND EXPERTISE: IFC S Experiences and Future Perspectives Milagros Rivas Saiz February 21 st, 2018 9
Outline 1) IFC: Creating markets for Climate Business 2) IFC Advisory Solutions: Energy, Water & Green Buildings 3) Workshop Focus: IFC in Resource Efficiency Industrial & Urban 4) Global footprint, Increased Focus on Frontier Markets 5) Leveraging IFC Advisory for Investment in Resource Efficiency 10
FY 17 Snapshot IFC: Creating Markets for Climate Business 28% by 2020 IFC corporate goal (for climate business) $3 billion IFC s Climate Investments totaled $3 billion (~25%), covering 90 projects in 41 countries 1.8 billion IFC mobilized an additional $1.8 billion in Climate Investment 6.7 million >$25 billion During FY17, IFC investment and advisory projects reduced more than 6.7 million metric tons of greenhouse-gas emissions, equivalent to taking 1.4 million cars off the road. Since 2005, > $25 billion in long term climate financing for renewable power, energy efficiency, sustainable agriculture, green buildings and private sector adaptation projects (including $15.3 billion from IFC s own account and $10.1 billion in mobilization of other private investment) $23 trillion Size of climate business opportunity in developing countries (in energy, green buildings, cities, etc.) IFC (2017) Climate Investment Opportunities Report 11
IFC Advisory Solutions: Energy, Water & Green Buildings ENERGY WATER GREEN BUILDINGS On-grid renewables (solar, wind, hydro, and hybrid systems such as floating solar on hydro reservoirs) Off-grid renewables (particularly through distributed generation technologies and energy storage systems) Energy efficiency (focusing on sectoral and supply chain interventions). Promoting sustainable industrial and urban water and waste management, e.g. textiles, cement, chemicals, municipal waste Enabling environment for Green Buildings (e.g. policies, regulations, incentives) Certification of new and existing buildings (e.g. offices, homes, schools, etc.) Analysis and innovation Facilitating financing IFC has build a successful long-term (15 year) Advisory partnership with Austrian government in these areas 12
Workshop Focus: IFC in Resource Efficiency 1. INDUSTRIAL Towards responsible industries and increased competitiveness for the private sector IFC invests in process improvements and other technology to reduce energy, water and other resource use in sectors such as cement, metals, textiles, pulp and paper, chemicals, construction, manufacturing, and power generation, transmission, and distribution. As advisory, we work in: Water & Energy efficiencies and wastewater management in the textile industry Captive energy, alternative fuels and other technologies in the cement sector REF in other manufacturing industries Waste-to-energy / renewable energy for firms 2. URBAN Supporting the Circular Economy IFC work with cities, which with their growing urban populations, provide a strong platform for promoting sustainability and circular economy. As part of its focus on cities, IFC s Green Buildings Program stimulates demand for green buildings and boosts the capacity of developers and banks to build and finance environmentally friendly construction. As advisory, we work in: Green Buildings Eco/Smart Cities, Municipal Services, Waste Management, Street Lighting, Transport 13
Global Footprint, Increased Focus on Frontier Markets Presence in 100+ developing countries brings impact and innovation Latin America and the Caribbean REF in LAC Industrial and Cement (Mexico, Guatemala, Argentina, Brazil) Europe and Central Asia Cities (Turkey) Industrial REF (Bulgaria, Turkey) Green Buildings in LAC region Middle East and North Africa Green supply chains in textile (Pakistan) Cement REF (Egypt) Sub-Saharan Africa Green Buildings Edge certification (South Africa) Industrial & Cement REF (South Africa, Nigeria and others) Loss reduction in Transmission and Distribution Networks (Kenya) South Asia Green Buildings (India) Partnership for Clean Textiles (Bangladesh) Cities and efficient street lighting (India) Cement REF (India, Nepal) East Asia and the Pacific Green Buildings Regulation & promotion (Vietnam, Indonesia, China, Philippines) Green textile & apparel supply chains (Vietnam, China) 14
Leveraging IFC Advisory for Climate-Smart Investment ENGAGE UPSTREAM to prepare the ground (prior to identifying potential projects or clients) DEVELOP PROJECTS to get investments off the ground (potential project identified) SUPPORT FIRMS to become investment ready (in challenging markets) IFC Investment Services in climate-friendly resource efficiency projects Direct loans and equity investments Credit facilities to banks Support in structuring and attracting off-balance sheet financing supported by Advisory Services Assessments, pre/feasibility studies and implementation support for: thermal and electric energy efficiency, waste heat recovery, alternative fuels, solar PV and wind captive power solutions etc. Promote the broad adoption of emerging technologies and good practices through case studies and benchmarking Market intelligence and sector analysis Regulatory Reforms ~ $1 billion ~$500 million IFC investments in Industrial Energy Efficiency and Green Buildings projects in FY17 (including funds mobilized from others) IFC long-term climate-smart investments with Austrian sponsors (e.g. power, textiles, chemicals), e.g. Lenzing in Brazil, Indonesia and Pacific. IFC also partners with Austrian experts in climate-smart technologies & business models. 15
In sum Climate is a growing business for IFC IFC has global reach, with increased focus on more difficult markets Emphasis on catalyzing innovation and investment Plentiful opportunities to partner with Austrian companies (and to extend successful partnership with Austrian government) 16
Milagros Rivas Saiz Global Head, Advisory Services T: +1 202 473 8750 Email: Mrivassaiz@ifc.org 2121 Pennsylvania Ave. NW Washington, DC 20433 USA 17
ANNEX 18
IFC is demonstrating big opportunities for private capital to invest in climate business. 4.500 4.000 3.500 3.000 2.500 2.000 1.500 18% IFC Climate Business (Own Account Only) 25% 22% FY17 Target: 22% 19% 18% 28% 30% 25% 20% 15% 10% IFC exceeded its FY17 target by 14% CATALYZING EXTERNAL FINANCE In FY17, IFC reached $1.8bn in core mobilization, which leveraged ~$5 billion in external capital through cofinancing. 1.000 500 5% - FY13 FY14 FY15 FY16 FY17 FY20 Target 0% Vol: Own Account LTF % of Total IFC Own Account Highlights: 95 committed projects in FY17 Blended finance has been essential to building what is now IFC s commercial IFC s climate business is now business, supporting on average 10% of increasingly diverse, with most of climate own account since FY12 FY17 s $4.8 billion* coming from green buildings, green bonds, and climatesmart agribusiness Over $18bn in own account commitments and over $10bn in core mobilized finance since FY05 *includes own account and core mobilization 19