What is it about?
A large financing need challenges climate-adjusted infrastructure in developing Asia, estimated at $26 trillion till 2030. This necessitates crowding-in private sources to meet financing, efficiency, and technology gaps. However, a lack of bankable projects is a major hurdle. This publication suggests one possible innovative financing approach. The Green Finance Catalyzing Facility (GFCF) proposes a blended finance framework for governments and development entities to better leverage development funds for risk mitigation, generate a pipeline of bankable green infrastructure projects, and directly catalyze private finance. The GFCF provides useful inputs for the current debate on mainstreaming green finance into country financial systems.
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Why is it important?
There is a clear need to translate recommendations and ideas from multiple fora into a clear model for green finance capable of leveraging the much-needed private sector investment into green infrastructure. This can help in addressing the core problem of degrading ecosystems, constrained bankability, and discontinuous investment pipelines, which are adversely affecting the quality of growth. The proposed model is not described as an all-encompassing solution, but regarded as a concept to motivate further thought, create localized green finance solutions and vehicles to drive green growth toward green economy transformations.
Perspectives
The publication is organized into four parts, which helps to target audiences' different interests in a variety of key topics: Part A: The Green Finance Priority -> How do environmental degradation, international development agendas, and the green growth paradigm relate to financing needs and gaps? Part B: The Green Bankability Conundrum -> What are public and private sources of green finance and the problems and opportunities in linking these to green projects? Part C: The Emerging Lessons from Green Finance Initiatives -> Which recommendations for a green finance mechanism can be drawn from existing initiatives? Part D: The Green Finance Catalyzing Facility (GFCF) -> What are the objectives and suggested scope of the facility? How do the twin-pillars of financial and environmental sustainability principles guide the facility? What financial design mechanics are developed for the facility? Which institutional structure and operating guidelines are suggested for the facility?
Mr Renard Teipelke
Asian Development Bank
Read the Original
This page is a summary of: Catalyzing Green Finance:, July 2017, Asian Development Bank,
DOI: 10.22617/tcs178941.
You can read the full text:
Resources
Infrastructure Provision in Developing Asia's Giants
This paper provides a comparative perspective on infrastructure provision in developing Asia’s three largest countries: China, India, and Indonesia. It discusses their achievements and shortfalls in providing network infrastructure (energy, transport, water, and telecommunications) over the past two decades.
A Region at Risk: The Human Dimensions of Climate Change in Asia and the Pacific
The report discusses the most recent projections pertaining to climate change and climate change impacts in Asia and the Pacific, and the consequences of these changes to human systems, particularly for developing countries. It also highlights gaps in the existing knowledge and identifies avenues for continued research.
Meeting Asia's Infrastructure Needs
This report examines developing Asia’s infrastructure—defined as transport, power, telecommunications, water supply and sanitation. It examines how much the region has been investing in infrastructure and what will likely be needed through 2030. It also analyzes the challenges shaping future infrastructure investment and development.
Policies and Practices for Low-Carbon Green Growth in Asia: Highlights
The goal of this study is to share with developing nations the experiences of advanced Asian economies and the lessons they have learned, while widening and deepening actions in both. The study reviews and assesses the low-carbon and green policies and practices taken by Asian countries while identifying gaps and examining the new opportunities for low-carbon green growth.
GrEEEn Solutions for Livable Cities
Practical ways on how urban managers, development practitioners, businesses, and citizens can engage to make cities more livable by building on the city’s unique physical, social, cultural, economic and human resource assets.
The Financial System We Need: Aligning the Financial System with Sustainable Development
http://www.unep.org/ourplanet/december-2015/unep-publications/financial-system-we-need-aligning-financial-system-sustainable
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