Provisional programme Financing South East Asia's energy transition Wednesday 18 Friday 20 July 2018 WP1612

Transcription

1 Provisional programme Financing South East Asia's energy transition Wednesday 18 Friday 20 July 2018 WP1612 The 2015 Paris Climate Agreement created a global imperative to reduce emissions and deliver clean growth. South East Asia is on the cusp of transformational change as governments, business and individuals increasingly recognise the urgent need to reduce emissions and transition to clean growth by turning their Nationally Determined Contributions (NDCs) into viable investment plans for clean energy infrastructure. This dialogue will provide a forum for stakeholders to discuss building capacity for clean energy initiatives and the benefits associated with increased flows of green finance in the region. For South East Asian countries these include access to new pools of capital, diversified sources of energy, balanced economic growth, avoided health costs and mitigated environmental damage. However, like all countries, those in South East Asia face the energy trilemma: how to ensure secure, affordable and lower carbon energy supply. They also face a set of shared pressures. Economic growth and strong energy demand have placed considerable stress on the region s energy infrastructure and, thus, on ambitions to increase energy access while reducing fossil fuels and carbon emissions. In a region which is particularly vulnerable to the effects of climate change, tackling the energy trilemma will require increased investment in infrastructure and renewables. This will need significant resources, with the demand for additional green investment in South East Asia from 2016 to 2030 estimated at US$3 trillion. This investment requirement is far beyond the scale of governments or international donor institutions alone and represents a promising opportunity for private sector investors. Green finance, which entails both specific green financial instruments, such as green bonds, and ensuring investments are climate friendly, low carbon and socially responsible, can play a major role in meeting significant demand for investment. Yet, concerns about the risks associated with green finance, the broader investment environment in South East Asia and limited capacity in financial institutions could potentially restrict the region s potential. There is also a need to standardise definitions, deepen skills and knowledge in project development and policymaking communities and expand the number of bankable projects in the region. Despite some barriers, there is a strong appetite and ambition in the region to achieve clean growth, while supportive international agreements offer significant opportunities to align national development and poverty reduction goals with climate and sustainability objectives. In association with: SJH

2 In particular, there is a desire to engage with private sector actors to help deliver the clean energy infrastructure the region needs. Strong economic growth makes South East Asia an attractive destination for green investment and, on a wider level, there is a growing sense that the energy market is changing. Innovation means that renewables are now capable of competing with traditional energy sources, with renewable energy becoming cheaper than fossil fuels in many countries. Thus, as the region continues to open its market to investment, there is a pressing need to both make the business case for green finance and forge new partnerships between investors and regional stakeholders. More broadly, South East Asia stands to benefit from a more coordinated political vision and diplomatic strategy for achieving clean growth and this meeting hopes to build on that during the course of the dialogue. This senior-level Wilton Park dialogue will be held at a politically and economically opportune moment. It will bring ASEAN finance, energy and environment ministries together with project developers and with investors from the City of London and elsewhere to develop a roadmap towards full financing of the sector s needs. The event will also gather insights from other regions via bilateral partners and multilateral institutions. Building on the impetus of recent agreements and summits, we aim to create momentum for upcoming events, including COP24 and Governor Brown s Global Climate Action Summit and the One Planet Summit, which is taking place in September The circumstances, both globally and in South East Asia, are propitious for harnessing green finance to deliver sustainable green growth. Moreover, the UK Government is launching a new 15 million Prosperity Fund South East Asia Low Carbon Energy programme, running from 2018 to 2023 in Indonesia, Malaysia, Thailand, Vietnam, the Philippines and Burma. A major objective of the Prosperity Fund programme is to support economic development and poverty reduction by identifying and mitigating barriers to green finance and by supporting project developers and governments in the region to access the funding they need to move to a low carbon future. Philanthropies have also rallied around these opportunities and this dialogue provides a discreet space to shape the next steps, sharing understanding and ownership of the opportunities and identifying the key levers needed to expand levels of green finance in the region. The dialogue will shape a set of recommendations about how to strengthen the pipeline of finance into the region. In association with the Foreign and Commonwealth Office, European Climate Foundation and Growald Family Fund (Speakers invited and themes proposed. * denotes confirmed; ^ denotes expected to participate but not yet confirmed in this role) Wednesday 18 July Participants arrive and refreshments available Welcome and introduction *James Corré Programme Director, Wilton Park

3 *Athena Ballesteros Director, Asia Finance, Growald Family Fund, Brookline, USA Financing the transition Tea/coffee The opening session will set out objectives for the dialogue, by examining the role of finance in the context of climate action and the Paris Agreement, and within the framework of the Sustainable Development Goals (SDGs). What are the common goals and investment needs? What are the specific investment landscapes in the countries represented? Chair: *Sharmila Nebhrajani Chief Executive, Wilton Park *Christiana Figueres Convenor, Mission 2020; Former Executive Secretary, UN Framework Convention on Climate Change (UNFCCC) *Yulanda Chung Head of Sustainability, Institutional Banking Group, DBS Bank, Singapore UK Ministerial keynote Senior ASEAN Government speaker Powering growth What are the core renewable energy opportunities and the potential within the region? What policy and regulatory frameworks are needed to enable that investment? What needs to change for renewables in South East Asia to enjoy the competitive pricing that is transforming the energy sector elsewhere? What are the perceived and actual risks for investors, and how can they be overcome? Chair: *Melissa Brown Energy Finance Consultant, Institute for Energy Economics and Financial Analysis (IEEFA), Hong Kong *Allard Nooy Chief Executive Officer, InfraCo Asia Development Pte Ltd, Singapore *Esther Lew Principal Assistant Secretary, Renewable Energy Sector, Ministry of Energy, Green Technology & Water, Kuala Lumpur, Malaysia *Jadi Manurung Deputy Director of Policy Analysis and Harmonisation, Center for Policy Analysis and Harmonisation, Office for Finance Minister, Ministry of Finance, Jakarta, Indonesia *Arjun Guha International Renewable Energy Agency (IRENA), Abu Dhabi, UAE 1915 Reception followed by dinner Thursday 19 July Breakfast

4 Financial instruments as tools for change How can a joined-up approach to green finance unlock private capital? Which innovative financial instruments can be deployed? What role can they play in financing the transition? Where are the gaps? How best can public policies be targeted to de-risk investments? The world café table hosts will briefly present a tasting menu of the financial levers to be discussed in the following session. ^Ben Caldecott Founding Director, Sustainable Finance Programme, University of Oxford, UK 1. Green Bonds *Sean Kidney Chief Executive Officer, Climate Bonds initiative, London, UK 2. Blended finance *Suzanty Sitorus Director, Climate Policy Initiative Indonesia (CPI), Jakarta, Indonesia 3. Venture capital and equity investment ^Simon Horner Head of Innovation, City of London Corporation, UK 4. Certification/benchmarking/standards *Nikki Bartlett Director of Climate Change, CDP Worldwide, London, UK 5. Corporate off-takers *Nirarta Samadhi Country Director, World Resources Institute (WRI), Jakarta, Indonesia 6. Green stock markets ^Vu Chi Dung Director General, International Cooperation Department, State Securities Commission, Hanoi, Vietnam 7. Fintech and regulatory innovation ^Michael Sheren Senior Advisor, Bank of England, London, UK Tailoring solutions for South East Asia: world café Building on the previous session, this deeper exploration of financial instruments will take the world café format. Each table will be hosted by an expert in a particular investment approach (e.g. green bonds); each participant will have the opportunity to join the conversation at up to three tables of their choice to ask questions about approaches of particular interest, to share examples of best practice and models in deploying innovative financial tools. Includes tea/coffee Scaling private finance through philanthropy and concessional finance Given the scale of investment needed and the urgency of climate change, how can philanthropic donors and development actors contribute and best target their limited funds to unlock the greater volumes of private capital required? Which types of intervention are best suited to leveraging private capital? Where can philanthropy and concessional finance fill gaps to leveraging finance for public goods where private sector may fall short of delivering the investment needed. How will the UK's new Low Carbon Energy Prosperity Fund Programme for South East Asia model this catalysing effect?

5 Lunch Free time Chair: *Rebecca Collyer Director, International Energy Systems, European Climate Foundation, The Hague, Netherlands ^Christie Ulman Director, Children's Investment Fund Foundation (CIFF), London, UK *Camilla Fenning Head, South East Asia Climate Change and Energy Network, British High Commission, Singapore *Norbert Gorissen Head, International Climate Finance Division, Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMU), Bonn, Germany *Gavin Templeton Head, Sustainable Finance, Green Investment Group What are private investors looking for? What are investors looking for when selecting target markets and projects? What affects their assessment of risk? What does the ideal enabling environment look like from an investor's perspective? How do the needs of large institutional investors differ from those of equity investors? Put these questions and more to a quick-fire style panel of investors representing different parts of the finance pipeline. Chair: *Bill Weil Climate Finance Specialist, Tempest Advisors, San Francisco, USA *Eunjoo Park Minc Chief Adviser, Banco de Oro, Makati City, Philippines *Gavin Smith Director of Clean Development Investments, Dragon Capital, Ho Chi Minh City, Vietnam *Ittiporn Intravisit First Vice President, Kasikornbank PCL, Bangkok, Thailand Representative of major UK financial institution TBC Perspectives from project developers Does the renewable energy sector in South East Asia have the business models and practices that investors seek? Where are the opportunities for the project developers? What policy and regulatory frameworks will enable transition at scale? What are the barriers and how can they be overcome? A panel of developers will briefly present their projects followed by discussion. Chair: *Peter du Pont Associate, Asia Centre, Stockholm Environment Institute, Bangkok, Thailand *Arthit Vechakij Managing Director, Excellent Energy International Company Limited, Bangkok, Thailand *Hong Long Nguyen Senior Expert on Sustainable Product Innovation and Green Product, Director of Centre for Creativity and Sustainability, Hanoi, Vietnam *Ernest Navaratum Chief Executive Officer, Cenergi SEA, Petaling Jaya, Malaysia

6 *Paul Butarbutar Head of Policy, Regulation and Advocacy Division, Indonesia Renewable Energy Society, Jakarta, Indonesia Photograph followed by tea/coffee Green financial diplomacy: a political strategy for meeting the two degree target How can governments work together to massively scale up investment? What are the shared goals for green finance? How can international and other diplomatic efforts be best leveraged? Chair: *Athena Ballesteros Director, Asia Finance, Growald Family Fund, Brookline, USA *Ephryo Amatong Commissioner, Securities and Exchange Commission, Pasay City, Philippines ^Andrea Guerrero Senior Energy Advisor, Mission 2020, Bogota, Colombia *Nick Bridge Special Representative for Climate Change, Foreign and Commonwealth Office, London, UK ASEAN government representative TBC 1900 Reception followed by Conference dinner 2100 Fireside chat hosted by: Athena Ballesteros, Director, Asia Programs, Growald Family Fund Friday 20 July Breakfast and checkout Reflections ^Sara Jane Ahmed Energy Finance Analyst, Institute for Energy Economics and Financial Analysis (IEEFA) Workshops: mapping the way to a new energy system Tea/coffee Facilitators will have grouped the barriers to investment identified over the course of the event into thematic clusters, each of which may be unique to a certain country or common to several markets represented in the room. Participants will be invited to select one of these clusters and join others to begin mapping pathways to overcome the associated barriers and open up flows of investment. Groups will be asked to identify recommendations for various stakeholders including governments, regulatory agencies, international financial institutions, philanthropists, project developers and project financiers Evaluation survey Completion of online survey

7 Next steps: towards a roadmap for green finance in SE Asia 1300 Lunch 1400 Participants depart Brief reports from the workshop groups followed by an opportunity for all to offer closing reflections and action commitments identifying the interventions that will enable green finance to be scaled up across SE Asia and point out the windows of opportunity that could be harnessed to move the energy transition up the political agenda across the region. Chair: *Camilla Fenning Head, South East Asia Climate Change and Energy Network, British High Commission, Singapore ASEAN government representative TBC Kate Hampton Chief Executive Officer, Children's Investment Fund Foundation (CIFF), London, UK This conference is open to those with expertise to share or an interest in the theme; our aim is to have a broad spread of nationalities and institutions represented. The full cost of participation is 1,460. This covers two nights accommodation, all meals during the conference and attendance at all sessions. Special rates may be available for those from non-oecd countries and also academics and NGO representatives. Enquiries about participation to: Sarah-Jane Holtam, Project Manager T: +44 (0) F: +44 (0) E: sarah-jane.holtam@wiltonpark.org.uk Enquiries about the programme to: James Corré, Programme Director T: +44 (0) F: +44 (0) E: james.corre@wiltonpark.org.uk