Japanese perspective Takejiro Sueyoshi CEO Green Finance Organization Japan Special Advisor to UNEP FI 25 th October 2016 0 Natural Capital Round Table in Tokyo Photo credit Secretariat at Principles for Financial Action for the 21 ID: 524824
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Slide1
Investing in and building environmental assets: Japanese perspective
Takejiro SueyoshiCEO, Green Finance Organization JapanSpecial Advisor to UNEP FI25th October, 2016
0Slide2
Natural Capital Round Table in Tokyo
(Photo credit: Secretariat at Principles for Financial Action for the 21
st
Century)
“What are the
risks
and
opportunities
of Natural Capital to Japanese
Corporations and Financial Institutions?”
1Slide3
Satoyama landscape & Satoumi
seascape
Satoyama
is a properly managed land by people. It has a
mosaic feature
of different land uses, woodland, grassland, paddy field, farmland, irrigation, and human settlements.
People used to live in
good harmony with nature.
2Slide4
Japan’s Import Dependent Economy
About
50%
of total material inputs into Japan’s Economy are imported from
overseas
.
(Source:
http://www.cjc.or.jp/data/pdf/book2016.pdf
)
Heavily dependent on
Energy and
Food import.
Yet, due to limited conservation activities
in overseas countries,
Japan is exposed to significant
supply chain risks
.
3Slide5
What are the implications?
Supply chain risk managementRisk assessment tools - how, and how much impact?
Risk map - where?
New
business opportunities
Who to reveal
hidden value
of nature from
multidimensional
aspects?Who to finance, private and/or public? Any innovative financing solution?
What are the existing Japanese
Best Practices
?
Corporations -
Oji Paper, AEON,
and
Suntory
Financial Institutions -
SMBC, DBJ, SMTB,
and
Green Finance Association
4Slide6
Case of
Oji Paper
Promoting biodiversity conservation and Supply of Eco-friendly Products
(
Source
:
http://
www.ojiholdings.co.jp/content/files/english/ir/annual/e_2015_all.pdf
)
Forest Management
FM Certification
Manufacturing/Processing
COC
ertification
Sales
COC
ertification
Oji Group’s Integrated Management
Case of Retail sector:
AEON
promoting sustainable fishing by certifications
Case of Beverage sector:
Suntory
(Source:
https://www.aeon.info/export/sites/default/common/images/en/environment/report/e_2016pdf/16_eng.pdf
)
(Source:
http://www.suntory.com/csr/environment/forest/index.html
)
(Source:
https://www.aeon.info/export/sites/default/common/images/en/environment/report/e_2016pdf/16_eng.pdf
)
committing to “Water Sustainability” and reducing environmental impact
They signed long-term contracts with forest owners and in 2003 began water resource cultivation and preserve biodiversity in their natural water sanctuary.
5Slide7
Food and Agriculture Assessment
Loans and Private Placement BondsNADESHIKO Loan and Private Placement Bond
Green Bond in 2015.
Sumitomo Mitsui Banking Corporation
Case of
Financial sector:
Development Bank of Japan (DBJ)
Environmentally Rated Loan Program
since 2004.
Sustainability Bond
issued in 2015 investing only into projects with a high value for the environment and society.
Sumitomo Mitsui Trust Holdings
Environmental Rating Loans
with the Evaluation of Natural Capital Preservation
(
Source
:
http://smth.jp/en/csr/report/2015/NC-E-all.pdf
)
6Slide8
Green Bank Congress 2016
Participants:
UK Green Investment Bank plc (UK)
Clean Energy Finance Corporation (Australia)
Connecticut Green Bank (USA)
Malaysian Green Technology Corporation (Malaysia)
Green Finance Organisation (Japan)
Energy Action Network, Vermont (USA)
Organisation
for Economic Co-operation and Development (OECD)
The Coalition for Green Capital (USA)
The Natural Resources Defense Council (USA)
Korea Environmental Industry & Technology Institute (Korea)
Green Climate Fund
Bank of Japan (Japan)
Government Pension Investment Fund (Japan)
Climate Action Network International
Climate Works
7Slide9
Launched :
May 2013Mission: To accelerate green finance towards a low carbon society in Japan by supporting renewable energy projects
Funding source:
Climate Chang Mitigation Tax
Fund Scale
:
15.3b JPY (approx. 153 mil USD)
Green Fund of Japan
8Slide10
Support projects which
reduce CO
2
emissions
and
revitalize local communities
Create a new stream of private green capitals
a low carbon society in Japan
We aim to…..
9Slide11
Loan
Debt
<
Financial Structure
>
Invest
Financial institutions
etc
Sponsor
Invest
Green Fund
Climate Change Mitigation Tax
Green Fund
Equity
A funding structure
Equity
Low Carbon Project
* Our investment is limited to 1/2 of the total
equity amount.
*
10Slide12
More Opportunities in Green SMEs
for Regional Economy (re)vitalization
Renewable energy
Green infrastructure
Mitigation bank
Relocation
Eco tourism
Biodiversity and genetic resource
A country of
“Blessing Nature”
Kikuchi Gorge, Kumamoto
..more room to build
“environmental assets”
11Slide13
Thank you very much!
شكرا جزيلاご清聴、有難うございました。
12