Financing the SDGsAccelerating SDGs progress in Southeast Asia

Ms. Tientip Subhanij Chief of Financing for Development

14 October 2020

SDGs in Asia-Pacific

* Source: Asian and the Pacific SDG Progress Report 2020

Asia-Pacific is making good progress onquality education (Goal 4) and affordableand clean energy (Goal 7)

The Asia-Pacific region has struggled themost in advancing responsibleconsumption and production (Goal 12)and climate action (Goal 13)

SDGs in Asia-Pacific

▪ The Asia-Pacific region will likely miss most of the

SDGs by 2030 at the current pace of progress.

▪ Goal 17 is the key to enable the success of SDGs.

▪ Thus, Asia-Pacific region must accelerate the progress

of strengthening partnerships for the Goals.

SDGs in Southeast Asia

With the current pace of progress, the Southeast Asia

economies are on track on quality education (Goal 4)

and industry, innovation and infrastructure (Goal 9)

* Source: Asian and the Pacific SDG Progress Report 2020

SDGs in Southeast Asia

* Source: Asian and the Pacific SDG Progress Report 2020

Southeast Asia is making slow progresson Goal 13 Climate action

Financial Sector & SDGs

• To accelerate the progress in Southeast Asia,

public funding alone is not enough to achieve

the SDGs. There is a need of mobilizing capital

market to leverage private investments.

• Enhancing sustainable financing strategies and

investments in the region, financial institutions

play a critical role in directing the funding for

critical activities to achieve the SDGs.

Financial Institutions & SDGs

213

Financial institutions have

an exact role in ensuring

access to finance to enable

sustainable development

FIs must be transparent, and

align with the environmental and

social (E&S) objectives to target

potential climate and green

banking opportunities effectively

Policymakers need to

restrict FIs and enhance

their understanding of

and capacity to affect

E&S performance factors

Source: Factors Affecting the Environmental and Social Performance of Financial Institutions in Developing Countries in Asia and the Pacific

MPFD Working Paper WP/20/09

Our Work –Sustainable Banking

Country Local Partner FrameworkIssue

Time

The Philippines

• ADFIAP

• Climate Change Commission (CCC)

• To support: Bangko Sentral ng Pilipnas (BSP)

Sustainable Finance FrameworkMarch

2020

Indonesia

• Indonesian International Chamber of Commerce (ICC)

• Kemitraan

• To support: OJK, Indonesian Financial Service authority

Regulation on Sustainable

Finance2017

Pakistan

• Sustainable Development Policy Institute (SDPI)

• Bahria University

• To support: State Bank of Pakistan

Green Banking Guidelines 2017

Sri Lanka

• Development Finance Corporation of Ceylon (DFCC)

Bank

• International Chamber of Commerce

• To support: Central Bank of Sri Lanka and Bankers

Association

Sri Lanka Sustainable Banking 2015

Initiative (SL-SB) Roadmap for

Sustainable Finance2019

I. Strengthening regulatory framework on sustainable banking

Our Work –Sustainable Banking

Financial Awareness Index:

Environment and Social Risk Management (ESRM)Linked Loan Performance Index:

Environment and Social Risk Management (ESRM)

II. Mainstreaming green banking and ESG in the operation of financial institutions.

Our Work –Capital Market

Since 2017, ESCAP is providing technical and advisory services to

selected member States in Asia-Pacific

• Identify and support the development of financial instruments

• Leverage domestic investments to meet implementation needs

• Bridge financing gaps for low carbon climate resilient development

Our Work –Capital Market

3 Strategic Approaches

Our Work –Capital Market

▪ Since 2017, ESCAP has been actively engaged

in assisting the Royal Government of Bhutan

(RGoB) in developing capital market

• Consultations

• Capacity building workshops

• Research products

▪ Outcome: The RGoB issued the first sovereign

bond with a 3-year duration of US$ 41 million

at an annual coupon rate of 6.5%, which

resulted in over 300% oversubscription.

Our Work –SME Financing

To better understand the challenges of MSMEs

to access finance and the key mechanisms and

strategies that can help them, ESCAP developed

A Framework for Country Studies on MSMEAccess to Finance in Asia and the Pacific and

prepared a series of detailed national studies

based on it.

The national studies contribute to ESCAP’s

capacity building activities in the countries

where they were implemented.

Our Work –FinTech for SMEs

Our Work – Infrastructure Financing and PPP

The Infrastructure Financing and PPP Network of Asia and the Pacific provides support to countries

to develop PPP projects and infrastructure financing strategies by:

1. Help countries gain an understanding of PPP concepts and alternative financing

mechanisms

2. Build up the capacity to develop infrastructure regulatory frameworks, implement

sustainable and resilient infrastructure policies

3. Disclose infrastructure project pipeline and regulatory framework in member states

to facilitate transaction matchmaking

4. Exchange domestic and global best practices that fosters capacity building and

development of successful pilot projects

Our Work – Infrastructure Financing and PPP

30 Network members in

Asia-Pacific and beyond

30

Showcase 23 early-stage and

pilot project demonstrations

from 19 countries

23

Our Work – Infrastructure Financing and PPP

InfraPPPnet. org

Partnership Approach

Government

Private sector

United NationsInternational Organizations

CSOs