Green Investment Opportunities
A session by Ministry of Environment and Forestry
Date : Wednesday, 8 November 2017
Time : 14.30 – 16.00
Venue : Indonesia Pavilion at COP 23, Bonn Zone, Bonn, Germany
Governments around the world are striving to increase their economies while reducing emissions as agreed by the global community under the Paris Agreement. Environmental degradation and climate change are making it clear that the investment model meeds to change. Investment activities need to focus on projects that are committed to sustainable development and environmentally conscious business practices.
Bangladesh is the first country globally to develop a Country Investment Plan for Environment, Forestry and Climate Change (CIP-EFCC). It will enable Bangladesh to monitor and assess the state of the environment as well as investments in the context of climate change. The Plan provides an avenue for multi sector policy dialogue and coordination for investment in CIP-EFCC – where state agencies, private sector, and civil society are able to advance areas of common interest, including in the forestry and timber sector.
Relevant to bringing forward a multi stakeholder effort to promote investment in the forestry sector, Timber Legality Assurance System is introduced in Indonesia. SVLK (Sistem Verifikasi Legalitas Kayu) is a mandatory legality and sustainability certification system built on a national multi stakeholder consensus. The system indicates that timber products comply with law and regulations related with forest management and environmental aspects. Thus, the system supports sustainable forestry business practices in Indonesia. A study was carried out to see the correlation between the growth in numbers of companies being SVLK certified with deforestation, forest degradation trend and Green House Gasses emission reduction.
A multi stakeholder investment plan or initiative such as the Bangladesh CIP-EFCC and Indonesia’s SVLK requires a comprehensive financing support. It is therefore critical for financial services industry to be involved in a wide range of financing and investment activities span all sectors of the economy, including those that are suspected having a climate change-related risk impact. Financial services industry can take initial step in promoting green investment by financing industries with sound environmental and social risk management practices. A thorough screening in financial appraisal process is required – where both credit risk and environmental risks should be taken into account.
This session is a forum to discuss on how investment plans for the environment, forestry and climate change can be developed as an integral part of development efforts of a country and are used to prioritize investments to achieve development objectives and SDGs.