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Promoting Green Finance with EBRD

Promoting Green Finance with EBRD

Globally, green finance, or green and sustainable investment has become a trend. More and more assets are labeled as green and sustainable in Europe, USA, Australia and New Zealand. Since 2016, the total size of green and sustainable fund investment has grown. In recognizing the importance of green and sustainable economic development and to echo the relevant climate change and environmental targets set in the SDGs, the International Cooperation and Development Fund (TaiwanICDF) and European Bank for Reconstruction and Development(EBRD) have been working on green and environmental projects over the last ten years. The successful green finance cooperation experience will be among the topics to be shared with commercial banks and relevant insurance companies in Taiwan.

On September 3, 2019, at the EBRD Syndication Forum held in Taipei, Mr. Christian Kleboth, EBRD head of Loan Syndication, presented the syndication opportunities in EBRD’s countries of operation to Taiwanese financing institutions. In his speech, he emphasized EBRD’s contribution to green projects. In 2018 alone, green economy related projects constituted 36 percent of EBRD’s annual business volume. In all, EBRD has financed 1970 green projects in a total amount of more than 30 billion euros. Deputy Secretary General of the TaiwanICDF, Mr. Alex L.J. Shyy, explained how the TaiwanICDF’s participation in green projects with EBRD has brought environmental impact. One of the examples is the provision of a loan to a heat and power (CHP) plant originally associated with ArcelorMittal Zenica steel plant in Zenica, the fourth largest city in Bosnia and Herzegovina. The loan is to increase energy efficiency of the facilities and build a cleaner environment for the city through the modernization and upgrade of the CHP station, which has been operating since the Soviet era.

Elsewhere in Lebanon in West Asia, the TaiwanICDF and EBRD are collaborating on another green financing project, the Green Economy Financing Facility Lebanon project. Challenges in attracting renewable energy investment are huge, among which are legal barriers caused by outdated environmental law. On the other hand, water shortage due to climate change is a pressing future concern and has increased pressure on national water security. The immediate needs for investment in green economy projects are relatively large. The TaiwanICDF began cooperating with EBRD on the pilot GEFF Lebanon program with Bank Audi, providing a loan to their corporate and SME clients to implement energy efficiency, renewable energy and resource efficiency investment. The pilot project has been such a big success that it has drawn the interest of more participating banks. It also helps to address critical issues for Lebanon’s sustainable development, such as the supply of electricity and the diversification of energy supply from imported fossil fuels.

During the last week of September, at the invitation from EBRD, Deputy Secretary General Shyy will also participate in a Green Economy Financing Facility Lebanon workshop, and serve as a panelist in a green finance section in the International Beirut Energy Forum. He will be happy to present to the local and regional financial institutions and energy companies about the TaiwanICDF’s work with EBRD in contributing to green financing projects.

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  • Date:2019/9/27