PLENARY 1 – “Visioning the Strategic Role of DFIs” Takashi Hongo Special Advisor and Head of Environment Finance Engineering Department Japan Bank for International Cooperation 34th ADFIAP Annual Meeting April 20 to 23, 2011 Acapulco Beach Club & Resort Hotel, Kyrenia, North Cyprus Green Finance ~ Business Opportunities and Role of Financial Institutions
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PLENARY 1 – “Visioning the Strategic Role of DFIs”
34th ADFIAP Annual Meeting April 20 to 23, 2011 Acapulco Beach Club & Resort Hotel, Kyrenia, North Cyprus. PLENARY 1 – “Visioning the Strategic Role of DFIs”. Green Finance ~ Business Opportunities and Role of Financial Institutions. Takashi Hongo Special Advisor and Head of - PowerPoint PPT Presentation
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PLENARY 1 – “Visioning the Strategic Role of DFIs”
Takashi HongoSpecial Advisor and Head of
Environment Finance Engineering DepartmentJapan Bank for International Cooperation
Takashi HongoSpecial Advisor and Head of
Environment Finance Engineering DepartmentJapan Bank for International Cooperation
34th ADFIAP Annual Meeting April 20 to 23, 2011 Acapulco Beach Club & Resort Hotel, Kyrenia, North Cyprus
Green Finance~ Business Opportunities and Role of Financial Institutions
2
Reduction Potential
After 2020, the share of energy efficiency in total abatement declines,while more costly options like biofuels and CCS increase their share
World energy-related CO2 emissions savings in the 450 Scenariocompared with the Current Policies Scenario, by measure
Source: IEA WEO 2010Source: IEA WEO 2010
-400
-350
-300
-250
-200
-150
-100
-50
0
SteelIndustry
Cement Paper & Pulp Refrigerator AirConditioner
Lighting
Developed Countries Developing Countries
Source: IEEJ CO2 emission reduction potential by using Japanese BAT
(‘000 ton/Y )
Reduction Potential of Proven Technology( Commercially Viable Best Available Technology)
Reduction Potential of Proven Technology( Commercially Viable Best Available Technology)
1.5 Billion ton CO2 saving per year >1.3 billion ton CO2 emission a year in Japan
1.5 Billion ton CO2 saving per year >1.3 billion ton CO2 emission a year in Japan
4
Energy saving and CO2 reduction 18,410Kwh120,000 ton/y(China, 5000ton X2 units)
Cooling Tower
PHBoiler
Demineralizer building
AQC Boiler
Turbine / GeneratorBuilding
Source Kawasaki
Heat Recovery System of Cement PlantHeat Recovery System of Cement Plant
0
200
400
600
800
1 000
1 200
2015 2020 2025 2030
Bill
ion d
olla
rs
(20
08
)
Other Countries
Other Major Economies
OECD+
0
500
1,000
1,500
2,000
2,500
3,000
3,500
DevelopingAsia
US J apan
AseanIndiaChina
USD billion
Source IEA
Additional Investment Demand 2010-2030
Low Carbon Investment
Financial Institutions
InvestorsInvestment
Projects
Affluent society
Mission of Financial Institutions
Mission of Financial Institutions
Financial Institutions should support economic growth to realize affluent society under environment constraint. Balancing economy and environment is crucial.
Risk Mitigation
Improve economic return
Improve investment climate
Role of Public Finance for Climate Change
Mobilizing private funding is a key role
Guarantee/InsuranceCo-financing
Low cost funding for co-financingMezzanineInterest subsidies
Policy dialogue for incentive/regulationInformation service/business matching
8
Green Growth and Technology CycleGreen Growth and Technology Cycle
Population without access to electricity (million)
MalawiUgandaBurkina FasoDR of CongoTanzaniaMozambiqueMyanmarAfghanistanKenyaEthiopiaAngolaCameroonSudanYemenBangladeshNigeriaPakistanIndonesiaIndiaOthers
Average electrification rate in developing countries = 72%
Taking into account of the capacity increase of the facility by the investmentIn case of new facility, CO2 emission amount of new facility will be compared with the national average of the same type of facility
CO2 emission amount
J-MRV Methodology- Rehabilitation of Coal Fired Power Plant (J-MRV002) -
Reductions
National Average
New Plant
CO2 emission
National Average
J-MRV Methodology- New Coal Fire Power Plant (J-MRV004) -
PrinciplePrinciple
National Average
New Plant
PrinciplePrincipleUnder
ConstraintUnder
ConstraintUnder
RegulationUnder
Regulation
National Average
(Coal)
Regulation,De facto standard
ReductionsReductions
Taking into account constraints, such as energy security, supply and investment economicsAccepting and endorsing establishment of global de facto standard and regulation