1、ASEAN CATALYTIC GREEN FINANCE FACILITY An ASEAN Infrastructure Fund Initiative February 2020Operations Plan 20192021 ii About this Document This document outlines the operations strategy and plan for the ASEAN Catalytic Green Finance Facility pilot phase (20192021). It details the approach and targe

2、ts of the pilot phase, and serves as a guide for the ASEAN Infrastructure Fund administration team and the ACGF project structuring team in the Asian Development Bank (ADB). The document was prepared under the oversight and leadership of the ADB Southeast Asia Departments Alfredo Perdiguero, adminis

3、trator of the ASEAN Infrastructure Fund, and Anouj Mehta, ACGF Unit Head. Naeeda Crishna Morgado, Camille Bautista-Laguda, Nguyen Ba Hung, and Duncan McLeod made up the ADB team that developed this document. iii ASEAN CATALYTIC GREEN FINANCE FACILITY Operations Plan 20192021 Contents ABBREVIATIONS i

4、v I. INTRODUCTION 1 II. OBJECTIVES AND SCOPE OF THE ASEAN CATALYTIC GREEN FINANCE FACILITY 5 III. PROJECT ORIGINATION AND SELECTION 7 IV. FINANCING PRODUCTS AND ELIGIBILITY CRITERIA 11 V. KNOWLEDGE AND AWARENESS BUILDING 14 VI. FUNDING AND IN-KIND CONTRIBUTIONS TOWARDS ACGF PROJECTS 16 VII. IMPLEMEN

5、TATION ARRANGEMENTS 20 APPENDIX: ACGF TIMELINE AND IMPLEMENTATION TARGETS FOR THE PILOT PHASE 23 (20192021) TABLES 1 ACGF Lending Terms 12 2 ACGF Cofinancing Partners 18 3 ACGF In-Kind Partnerships 19 FIGURES 1 Project Preparation Stages and Phasing of ACGF Support 8 2 Origination and Project Select

6、ion Process for ACGF Projects 10 3 Proposed Structure of Overall Framework of Support for ACGF Projects 17 iv Abbreviations ACGF ASEAN Catalytic Green Finance Facility ADB Asian Development Bank AIF ASEAN Infrastructure Fund ASEAN Association of Southeast Asian Nations GHG greenhouse gas PIM project

7、 information memorandum PST project structuring team Note In this report, “$” refers to United States dollars and “” refers to Euros, unless otherwise indicated. 1 ASEAN CATALYTIC GREEN FINANCE FACILITY Operations Plan 20192021 I. INTRODUCTION Photo Credit: Asian Development Bank 2 Background The AS

8、EAN Infrastructure Fund (AIF) was established by Association of Southeast Asian Nations (ASEAN) member states and Asian Development Bank (ADB) in 2011. Using equity from its shareholders, AIF commenced its lending operations in 2013, offering financing for infrastructure projects to its member count

9、ries. In November 2018, the AIF Board of Directors approved the creation of a “Green and Inclusive Infrastructure Window” on a 3-year pilot basis as a means of leveraging the funds remaining equity resources and creating a value added proposition for its future direction.1 This window includes the A

10、SEAN Catalytic Green Finance Facility (ACGF) and a smaller Inclusive Finance Facility that will offer limited concessional loans to Cambodia, the Lao Peoples Democratic Republic (Lao PDR), and Myanmar only.2 The ACGF was launched on 4 April 2019 in Chiang Rai, Thailand during the 23rd ASEAN Finance

11、Ministers Meeting as one of the first regional green financing initiatives in Southeast Asia. It is an innovative financing initiative that can accelerate progress toward Southeast Asian countries climate change and environmental sustainability goals by developing a pipeline of green infrastructure

12、projects and helping to catalyze private capital and other resources for these projects. The ACGF provides loans from AIF equity, ADB, and cofinancing partners, as well as technical assistance, to originate, structure, and bridge the viability gap for green infrastructure projects. Rationale Southea

13、st Asia needs to transition to greener development pathways. ASEAN member states have seen rapid economic growth and development in recent years, and this trend is expected to continue, with projected gross domestic product (GDP) growth rates of 5.2% during 20182022.3 Infrastructure is critical to i

14、mproved connectivity in Southeast Asia, and is also important in reducing poverty and achieving development outcomes. While infrastructure is the backbone of economic growth in the region, its environmental costs remain high. Currently, large-scale infrastructure development continues to be associat

15、ed with social and environmental impacts, such as fragmentation of ecosystems, increasing waste, and air and water pollution, which in turn affects the health and well-being of people throughout the region. At the same time, the climate is changing, and Southeast Asia is particularly vulnerable. ADB

16、 estimates that the impact of climate change on the region could be as much as 11% of GDP by 2100 due to impacts on agriculture and tourism, health, ecosystems, and labor productivity, and because of catastrophic risks.4 1 The available resources for the window could vary from time to time, dependin

17、g on disbursements and repayments, and is subject to a cap set by the AIF Board (based on the recommendation of the Administrator). 2 The objective is to offer an opportunity to lower middle-income member countries who are otherwise unable to access AIF resources due to its pricing, in the spirit of

18、 ASEAN solidarity. 3 OECD. 2018. Economic Outlook for Southeast Asia, China and India 2018: Fostering Growth through Digitalisation. Paris. www.oecd.org/ dev/SAEO2018_Preliminary_version.pdf. 4 ADB. 2016. Southeast Asia and the Economics of Global Climate Stabilization. Manila. January. www.adb.org/

19、publications/southeast-asia-eco- nomics-global-climate-stabilization. ADB estimates that the impact of climate change in the region could be as much as 11% of GDP by 2100 3 ASEAN CATALYTIC GREEN FINANCE FACILITY Operations Plan 20192021 ASEAN countries are making progress on climate and environmenta

20、l policy, however, considering the urgency of changing development pathways to achieve the goals of the Paris Agreement and the Sustainable Development Goals, there is a need to spur the development of green infrastructure projects in the region. All 10 ASEAN member states have ratified the Paris Ag

21、reement, and submitted nationally determined contributions (NDCs) to the United Nations Framework Convention on Climate Change. Most members have committed to mitigation targets in their NDCs (e.g., percentage reduction in greenhouse gas GHG emissions or emission intensity), and infrastructure secto

22、rs are key across ASEAN NDCs.5 Despite these commitments, more needs to be done. ASEAN member states have committed to increasing renewable energy to 23% of the regions energy mix by 2025,6 and renewable energy supply has increased in recent years. At the same time, the most rapid relative increases

23、 in the energy mix has come from carbon- intensive fuels such as coal.7 ADB estimates that GHG emissions in several ASEAN member states have increased at the same pace as economic growth over the last decade, driven by the high energy intensity of growth. Much of the investment in Southeast Asia wil

24、l be in new infrastructure with long lifespans and investing in environmentally sustainable infrastructure will help ASEAN member states avoid locking-in unsustainable development pathways for the medium- to long-term future. The rising momentum on green finance in the region offers an opportunity.

25、Financing for environmentally and socially sustainable investments (i.e., green finance) especially from commercial banks, financial and strategic investorscan help ASEAN member states bridge the investment gap and transition to greener infrastructure investment choices. DBS Bank and the United Nati

26、ons Environment Inquiry estimate that the size of the “green finance opportunity” in Southeast Asia is $3 trillion from 2016 to 2030 from four sectors: infrastructure, renewable energy, energy efficiency and food, agriculture and land use.8 Investment will be required throughout Southeast Asia, with

27、 the greatest volumes in Indonesia, Thailand, and Viet Nam. The current annual flow of green finance supply in Southeast Asia to support all economic sectors is estimated at $40 billion.9 Approximately 75% of current flows come from public finance and 25% from private finance, largely in the form of

28、 commercial loansthis balance implies a greater effort is needed to mobilize and catalyze private resources into projects. The Climate Bonds Initiative estimates that green bonds are on the rise in the region, with a total issuance of $5 billion as of 2018 but that the overall share of ASEAN issuanc

29、es are still low, estimated at 1% of global green bond issuance.10 5 J. Amponin and W. Evans. 2016. Assessing the Intended Nationally Determined Contributions of ADB Developing Members, ADB Sustain- able Development Working Paper Series No. 44. Manila. https:/www.adb.org/sites/default/files/publicat

30、ion/189882/sdwp-044.pdf. 6 ASEAN Centre for Energy. RE in the Context of ASEAN Clean Energy Corridor. http:/www.aseanenergy.org/programme-area/re/ (accessed 18February 2019). 7 Footnote 4. 8 DBS Bank and United Nations Environment Inquiry. 2017. Green Finance Opportunities in ASEAN. November. images

31、/sustainability/img/Green_Finance_Opportunities_in_ASEAN.pdf. 9 Footnote 8. 10 Climate Bonds Initiative. 2018. ASEAN Green Finance State of the Market 2018. green-finance-state-market-2018. Green finance can help ASEAN bridge the investment gap and transition to greener infrastructure choices 4 ASEA

32、N member states face a major investment gap for infrastructure, and public finance will not be enough. ADB estimates that Southeast Asia will require $184 billion per year from 2016 to 2030 to support needed investment in infrastructure, and this increases to $210 billion per year when considering t

33、he additional costs required to ensure all new infrastructure is climate-compatible.11 Infrastructure investment, particularly from private capital sources, is far below the levels needed, with an estimated gap of between 3.8% to 4.1% of GDP (when taking climate change into account) in selected ASEA

34、N member countries for 20162020. Public budgets continue to remain the major source of financing for infrastructure in ASEAN countries, especially for transport and water supply and sanitation, but the magnitude of the investment gap and constrained public budgets means greater levels of private inv

35、estment will be needed. The way public funds are spent will have to change to enable and catalyze greater volumes of private investment. Bankable projects are needed to enable the scaling up of green private capital flows. Greater private investment for green infrastructure in Southeast Asiathrough

36、instruments such as green bondsis hindered by a lack of commercially bankable projects with attractive risk-return profiles. This occurs for several reasons: renewable energy or sustainable transport projects often entail higher up-front costs than conventional alternatives and are based on technolo

37、gies that are relatively new to many ministries and regulators in the region. Revenue streams, especially for utilities, are often influenced by broader questions around affordability and are dependent on public policies and regulations. This can increase the risk profiles of such projects, especial

38、ly if coupled with more expensive technologies or financing costs. Developers lack access to long-term capital and exchange rate volatility hinders overseas investment. Value-added of the ASEAN Catalytic Green Finance Facility. Creating and financing bankable green investments i.e., those with risk-

39、return profiles that are attractive to commercial and institutional investors, will require public finance, especially concessional finance, to be used strategically to de-risk the riskiest aspects of a green project. There is also a need for green projects to be better structured. While there are s

40、everal climate and other environment- related funds available to ASEAN member states, currently, sources of this finance do not necessarily provide the structured finance or advisory assistance needed to help develop bankable projects that are clearly linked to green targets and catalyze private res

41、ources. On the other hand, generic project preparation support often focuses on the technical preparation of projects and do not incentivize change toward greener alternatives. The ACGF has been developed to bridge this gap by providing (i) support for the development of project pipelines, (ii) capa

42、city building for green and innovative finance approaches, (iii) project financial structuring support to create bankable projects, and (iv) an innovative use of concessional funds to de-risk projects. As a facility, in contrast to a project, the ACGF facilitates the development of a portfolio of pr

43、ojects with common criteria and themes, as well as efficiency in financing administration. 11 ADB. 2017. Meeting Asias Infrastructure Needs. Manila. www.adb.org/sites/default/files/publication/227496/special-report-infrastructure.pdf. Bankable projects are needed to enable the scale up of green priv

44、ate capital flows. The ACGF combines financial structuring support to create bankable projects with the innovative use of concessional funds to de-risk projects 5 ASEAN CATALYTIC GREEN FINANCE FACILITY Operations Plan 20192021 II. OBJECTIVES AND SCOPE OF THE ASEAN CATALYTIC GREEN FINANCE FACILITY Ph

45、oto Credit: Asian Development Bank 6 The ACGF Design Approach The ACGF approach is based on the concept of a “green finance catalyzing facility” proposed by ADB in 2017,12 and subsequently tested in discussions with governments of the ASEAN member states, financial institutions, and investors in 201

46、8. The design of the ACGF is based on the following principles: Catalytic. The ACGF will help source private finance in the long term by directing funds to de-risk and improve the bankability of projects. Beyond the impact of the projects themselves, the ACGF will help to build robust, green infrast

47、ructure pipelines in ASEAN member states by working with governments and partners to develop project opportunities, provide advice and technical assistance to structure these, and raise development and private resources for projects. Green. The ACGF will support green infrastructure projects i.e., e

48、nergy, transport, water, urban and multisector projects that actively contribute to environmental sustainability and climate goals. Examples of green infrastructure include, but are not limited to, renewable energy, energy efficiency, sustainable transport systems, sustainable water supply and sanit

49、ation, etc. Leveraging facility. The ACGF will use the remaining AIF equity provided by ASEAN members and ADB, alongside support from ADB and other development partners. As a leveraging facility, it will help governments in the region use public and concessional funds better, so that each dollar can mobilize commercial funds for projects which are currently not attracting these sources of finance. Aims and Objectives The mission of the ACGF is to accelerate the development of green infrastructure in Southeast Asia by better utilizing public fun