Brief Summary on Regional Workshop: “Scaling Up Climate Finance in Asia-Pacific”
“Scaling Up Climate Finance in Asia-Pacific”
Organised by Ministry of Foreign Affairs, Singapore, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Lee Kuan Yew School of Public Policy
With the support of Climate Development Knowledge Network (CDKN)
Mon-Wed, 22-24 April 2013
National University of Singapore
On 22-24 April 2013 the Alliance for Public Private Climate Finance Asia-Pacific (jointly established by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Asia Investor Group on Climate Change) in collaboration with the Ministry of Foreign Affairs in Singapore and supported by the German-ASEAN Programme on Responses to Climate Change conducted a regional workshop on climate finance to address the demand for capacity development and for cross-country dialogue between relevant government and financial stakeholders from the region.
The workshop’s goals were to:
· facilitate dialogue on developments in climate finance particularly in the Asia-Pacific region,
· exchange information and experience,
· develop and strengthen ideas for collaboration and
· provide a platformforenhancing the capacity of governments in the region to access, manage, mobilise, measure, report and verify climate financial flows.
Around 50 participants attended the meeting and jointly discussed strategies for scaling up climate finance in the Asia-Pacific region.Participantsincluded representatives of responsible line ministries from the Association of Southeast Asian Nations (ASEAN) member states and Small Island Developing States, experts from international and regional organizations (e.g. United Nations Framework Convention on Climate Change (UNFCCC), Alliance of Small Island States (AOSIS), Secretariat of the Pacific Community (SPC), and ASEAN Secretariat), think tanks, multilateral development banks and the private sector.
Key messages expressed in the discussions during the three-day workshop include:
· Climate finance is still small in scale. For example, there are approximately 70 times more brown investments as compared to green investments in Asia.
· There are approximately 71 trillion USD in assets under management from pension funds, insurance companies and investment funds. This provides a large potential for growth in the private climate finance sector, which currently only accounts for approximately 250 billion USD according to some reports.
· While climate change adaptation is a main priority for many Asia-Pacific countries, the majority of climate financing still goes into mitigation projects.
· The forthcoming regulations in the financial sector (Basel III and Solvency II) will make it more difficult for private sector investors to scale-up investments in long-term infrastructure projects with climate benefits (for example renewable energy projects).
· Aligning climate policy and financial regulatory frameworks is key to attract private sector investments.
· Private sector investors prefer clear and consistent policies and legal frameworks for long-term investments with climate co-benefits.
· There is a need for intensifying the dialogue between both the public and private sector as well as the climate and financial sector in order to scale up climate finance in the Asia and the Pacific.
· Increasing climate finance readiness for public and private financing requires additional long-term capacity building. Without increased readiness, scaling up climate finance in developing countries in Asia and the Pacific will be challenging.
· For countries to attract international public and private climate finance,demonstrating climate finance readiness, particularlyensuring low-risks by reliably delivering projects and providing MRV of climate finance, is likely to become a decisive competitive factor.
· Some developingcountries alreadypossess tested in-country systems for channelingmoderate volumes ofclimate finance. Representativesmade a strong call for development partners to use and up-scalethese systems rather than creating parallel structures.
· It is necessary to develop common accounting rules and standard reporting formats suited to recipient countries’ needs and priorities to reduce the complexity of the international public climate finance landscape.
· The international debate on climate finance mainly focuses on input measurements, such as the volume of money flowing into adaptation and mitigation, and neglects the importance of measuring the impact of investments.
· Fostering South-South cooperation and dialogue is an important means to enhance capacities and close existing knowledge gaps in the region.
For further information, please contact:
Mr. Thorsten Giehler, Alliance for Public Private Climate Finance Asia-Pacific, GIZ China,thorsten.giehler.@giz.de
Mr. Stefan Bundscherer, Alliance for Public Private Climate Finance Asia-Pacific, GIZ China,firstname.lastname@example.org
Mr. Roman Roehrl, German-ASEAN Programme on Responses to Climate Change, GIZ Indonesia,email@example.com