Session 4.2: The Role of Governments in Enabling Clean Energy Financing

May 22nd, 2019

Facilitating the region’s energy transition to a low-carbon economy will require innovative public finance mechanisms, particularly those that can be structured to leverage private sector financing. This session will include discussions of how the public sector can support the expansion and development of clean energy financing. The session will also include an overview of green public procurement and how to scale up green financing, as well as a result from IEA’s recent World Energy Outlook 2018, which highlight the fact that 70% of energy infrastructure is financed through public sector investments.

Moderator: Pradeep Tharakan, Principal Climate Change Specialist, ADB

Presenters:

UK's Support for Green Finance
Camilla Fenning, Head of the South East Asia Climate and Energy Network, FCO, UK

Camilla Fenning will present how the UK and City of London has established itself as a predominant centre for green finance, by establishing the right policy framework and ambition. Her presentation will give the particular example of offshore wind – the UK, thanks to green finance, produces nearly 40% of global output. Camilla will also cover how the UK contributes to the international green finance landscape, such as thought leadership and development funding, including in Asia. The presentation will share examples and lessons from the UK experience and establish read-across and ideas for Asia as it takes on the huge challenge of shifting to a low carbon future to try to avoid the impact of dangerous climate change.

Scaling Renewable Energy Investments
Gavin Templeton, Head of Sustainable Finance, Green Investment Group, Macquarie

A pioneer in green investment, the Green Investment Bank was established by the UK Government in 2012 and was the first institution of its kind in the world. Now renamed the Green Investment Group (GIG), and part of Macquarie Group, it finances infrastructure projects which are green and profitable. It’s track record, expertise and capability makes GIG a global leader in green investment dedicated to supporting the global green economy. Gavin Templeton, Head of Sustainable Finance at GIG, will discuss the history and design of the institution, and how the green investment bank model could be applied in Asia.

Malaysia: Measures by the Public Sector to Support Financing for Renewables
Wei-nee Chen, Chief Corporate Officer, Sustainable Energy Development Authority, Malaysia

This presentation will describe measures taken by Malaysian government to support financing of renewable energy, including the feed-in tariff (FiT), net energy metering, and large-scale solar. The presentation will also describe a Renewable Energy Transition Roadmap (RETR) 2035, which is being developed by SEDA and will lay out a plan to further decarbonize Malaysia’s electricity sector.

Financing Green Energy Infrastructure in Indonesia
Darwin Djajawinata, Project Development and Advisory Director, PT Sarana Multi Infrastruktur

Overview of Energy Efficiency Financing Mechanisms in ASEAN and an Innovative Streetlighting Example from the Philippines
Rustico Noli D. Cruz, Head, Program Development and Management I Department, Development Bank of the Philippines
Verena Streitferdt, Green Finance Consultant, Pertiwi-Consulting

The ASEAN Center of Energy initiated a project funded by the Japan ASEAN Integration Fund (JAIF) to support the exchange among ASEAN member states of innovative energy efficiency (EE) financing mechanisms. This presentation will provide an overview of EE finance mechanisms in the region and will share the example of an award-winning LED streetlighting lending approach in Tacloban City, Philippines, which uses energy service providers and maintenance service contracts. The lessons learned from the JAIF programme provide some ideas to other Asian countries how to support EE finance.