Download Climate Risk Management for Thailand

Climate Change Connection
to Profitability
Outline:
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Jitendra (Jitu) Shah, World Bank, July 15, 2009
Climate Change
• High awareness – Responses to-date
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Profitability Angles
• Financial, Social Responsibility,
Environmental, Sustainability, etc.
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Examples
• What has been done: success and profits
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Role of the World Bank
• How can we help
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Conclusions
Responses To Date
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Long term planning now usually includes CC
New institutions (Climate Cord. Committee, Thailand
Greenhouse Gas Management Organization - TGO)
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New energy conservation measures and
promotion of Renewable Energy
Stabilized forest cover (in most areas)
Research on methane emissions, models, etc.
CDM projects (10+ registered, 20+ submitted,
38+ approved)
EE and RE project experience growing
Profitability Dimensions:
Difficult Balancing Act?
6
Profit or Effectiveness
5
2
6
41
54
36 1
2
5
6
43
3
Pollution Reduction
3
5
1
2
1
2
4
Net Profit
Political viability
Financial feasibility
Social Responsibility
Business Opportunities in Asia
 Clean mass transport systems
 Solar energy
 Wind energy
 Hydro-electricity
 Green buildings
 Energy Service Companies
 Climate proofed infrastructure
 Climate adapted crops and livestock
 Methane capture from landfills and livestock operations
 Recycling and re-use
Etc…..
Example of Business
Opportunities in Asian Countries:
Solar Energy
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Suntech Solar was founded in 2001 in Wuxi (China)
It’s already a worldwide leader in solar energy:
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Sales offices in North America, Europe, Asia, and Australia
4 production sites
8,000 global employees
Revenues: USD 1,348 million
Net Income: USD 171.3 million
Net margin: 12,7%
Total Assets: USD 1,957 million
364 MW installed, good forecast
Example of Business
Opportunities in Asian Countries:
Wind Energy
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Suzlon began in 1995 with just 20 people.
In a little over a decade has become a global leader:
• 5th World turbine manufacturer (market share of 10.5%)
• Asian leader (50+% market share in India).
• Operations in 20 countries and manufacturing units across
America, Asia, Australia and Europe
• Order book of $4,304 million (equivalent to 3,454 MW)
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Employees: nearly 14,000
Revenues: USD 2,808 million
Net Profit: USD 291.3 million
Net worth: USD 479.8 million
Carbon Compliance Markets
Up 56%
2008
Source: State and Trends of the Carbon Market 2008, www.carbonfinance.org
World Bank Group’s Role
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Multi-sectoral perspective;
Financial resources and leveraging power;
Working with the private sector through IFC;
Building partnerships with a wide range of
institutions and stakeholders;
Knowledge base and policy advice;
Convening power, global reach, and local
presence; and
Fiduciary, environment, and social safeguards.
Evolving New Financial Architecture
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Current
• IBRD, IDA, Investment Guarantees
• Global financing mechanisms: GEF, CF
• Bilateral TFs: e.g. AUSAid – Infrastructure for Growth TF;
PHRD Climate Change Window, TFESSD, ESMAP, EASTE…
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New/planned
• Climate Investment Funds – UK, US, Japan, >$5 billion total
capital for Clean Technology
• Carbon Partnership Facility ($5b/5yrs)—programmatic CF
investments
• Forest Carbon Partnership Facility ($300m initially)—TA and
CF for REDD
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UNFCCC Process (approved in Bali)- funds in GEF:
• Technology Transformation Fund— focus in MICs, support of
low carbon economy strategies)
• Adaptation Fund ($80-300m)— from 2% tax on CDM deals
Leveraging: GEF, CTF, & CPF can Result in
Transformation of a Clean Energy Market
Saturation %
Adoption of Innovation
Market Take-off- Phase II
CPF
CTF
GEF
Time
Early Entry-Phase I
Market Saturation or MaturityPhase III
Concluding Remarks
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CC is a reality
Thailand is going to be affected
Think Big, Take Small Steps
Actions to combat Climate Change can
be a profitable business
The World Bank can help
We have to act now: the
Green Planet is in our
hands
Thank You
For further information and suggestions
contact:
Jitendra (Jitu) Shah
Country Sector Coordinator, EASES, SE Asia
The World Bank
30th Floor Siam Tower,
989 Rama I Rd, Pathumwan,
Bangkok Thailand 10330
' DIRECT LINE ++ 66 2 686 8360
' Cell phone ++ 6689 9214223
7 ++66 2 686 8301
[email protected]
www.worldbank.org/eapenvironment