Transitioning to a green, climate resilient economy is paramount to ensure that the region can reduce its greenhouse gas (GHG) emissions, better hedge against climate change risks and thrive in the long-run.
It is estimated that around USD 03tn in green investments will be required between 2016 and 2030 to fill the funding gap needed for the region to achieve a low-carbon transition. The involvement of both public and private investors will be essential to meet these investment targets. Since the signing of the Paris Agreement, governments have become increasingly involved in the development of green infrastructure to meet their emission reduction targets. Public finance is currently responsible for around 75% of infrastructure investments in the World , with private capital flows coming largely in the format of commercial loans.

Private finance will have to scale up rapidly to achieve the financing levels needed to accomplish sustainable growth. Promoting the development of local currency capital markets by sourcing local currency funding
will be essential to attract capital from domestic institutional and retail investors, as well as reduce cross-currency risk exposure.

Green Finance is Developing rapidly

Green finance is developing rapidly Financial products such as green labelled bonds, sukuk and loans have become globally recognised as an effective means of directing investment capital towards climate change mitigation as well as climate change resilience and adaptation projects.
Green financing instruments are structured as their vanilla counterparts, except that proceeds are earmarked to fund low-carbon assets and projects.
Initiated in 2007 with a climate-awareness bond by the European Investment Bank, the green bond market has grown rapidly, with over USD500bn green bonds issued as the end of November 2018 … and counting.
To combat the effects of climate change, it is estimated that green bond issuance needs to reach USD1tn per annum in 2020. A significant amount is expected to finance green infrastructure and assets in developing countries.

Government support is unlocking green finance

Governments are increasingly involved in the development of green infrastructure to meet national emission reduction targets under the Paris Agreement.
Governments (central, local, cities) and government-related entities can seek to develop a green project pipeline and obtain funding through debt issuance in the capital markets. Subsidies, tax incentives and other
policy instruments can be put in place to promote green investments from both private and public entities.
They can partner with other public entities,e.g. multilateral development banks, or the private sector to reduce the pressure on national balance sheets and share the risks that can arise from infrastructure project development.

Banks play a key role

Local banks are a key source of funding, given their market expertise at a regional and country level. They can function as aggregators of green projects and refinance in the green bond market, or may be able to develop green securitisations. This would provide indirect capital market access for small- and medium-sized enterprises (SMEs), which cannot access debt capital markets directly due to limited project scale and lack of bond issuance expertise.
Green banks and dedicated green divisions within banks can contribute to accelerating private sector participation in green projects by offering dedicated green products in compliance with international definitions of green .

Development finance institutions (DFIs) have a mandate to support developing countries and can achieve this through blended finance and credit enhancement mechanisms, by reducing risk exposure and enhancing market incentives for investors to
mobilize private capital.

This is particularly relevant for large-scale project such as infrastructure development. DFIs, such as the International Finance Corporation (IFC), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and the World Bank, can subscribe to private placements or be anchor investors in debt issuance and IPOs to help the company seeking funding to build investor confidence and catalyse investments from a wider pool of private actors’

Specialised financing is emerging

Finance facilities and the Credit Guarantee Investment Facility, employ the blended finance approach to generate bankable project pipelines by providing technical support and facilitating access to funding. Specialised investment funds are also a source of financing support. Regional examples include the ASEAN Infrastructure Fund, the Indonesia Infrastructure Guarantee Fund (IIGF), and LEAP, Leading Asia’s Private Sector Infrastructure Fund.
International funds focused on green bonds include the Green Cornerstone Bond Fund, created by the IFC and Amundi and launched in March 2018. The fund is the world’s largest targeted green bond fund focused on investing in emerging markets.

Specialised finance facilities

Green finance facilities act as a bridge between governments, the private sector and communities to actively develop a suitable project pipeline that supports lending through green bond issuance.
A blended finance approach is adopted to channel capital flows into the pipeline, implementing risk cover and credit enhancement to improve the bankability of projects when required. Technical and knowledge support is also usually provided during the project preparation stage to improve project quality.

Green Projects Funding Principles

The Green Projects Funding Principles (GBP) are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond. The GBP are intended for broad use by the market: they provide issuers with guidance on the key components involved in launching a credible Green Bond; they aid investors by promoting availability of information necessary to evaluate the environmental impact of their Green Bond investments; and they assist underwriters by moving the market towards expected disclosures that will facilitate transactions.
We recommend a clear process and disclosure for issuers, which investors, banks, underwriters, placement agents and others may use to understand the characteristics of any given Green Bond. The GBP emphasise the required transparency, accuracy and integrity of information that will be disclosed and reported by issuers to stakeholders.
The GBP have four core components:
1. Use of Proceeds
2. Process for Project Evaluation and Selection
3. Management of Proceeds
4. Reporting

Use of Proceeds

The cornerstone of a Green Bond is the utilisation of the proceeds of the bond for Green Projects, which should be appropriately described in the legal documentation for the security. All designated Green Projects should provide clear environmental benefits, which will be assessed and, where feasible, quantified by the issuer.
In the event that all or a proportion of the proceeds are or may be used for refinancing, it is recommended that issuers provide an estimate of the share of financing vs. re-financing, and where appropriate, also clarify which investments or project portfolios may be refinanced, and, to the extent relevant, the expected look-back period for refinanced Green Projects.
We explicitly recognise several broad categories of eligibility for Green Projects, which contribute to environmental objectives such as: climate change mitigation, climate change adaptation, natural resource conservation, biodiversity conservation, and pollution prevention and control.
The following list of project categories, while indicative, captures the most commonly used types of projects supported by or expected to be supported by the Green Bond market. Green Projects include other related and supporting expenditures such as R&D and may relate to more than one category and/ or environmental objective. Three environmental objectives identified above (pollution prevention and control, biodiversity conservation and climate change adaptation) also serve as project categories in the list. As such, they refer to the projects that are more specifically designed to meet them.

The eligible Green Project categories, listed in no specific order, include, but are not limited to:

• Renewable energy (including production, transmission, appliances and products);• Energy efficiency (such as in new and refurbished buildings, energy storage, district heating, smart grids, appliances and products);
• Pollution prevention and control (including reduction of air emissions, greenhouse gas control, soil remediation, waste prevention, waste reduction, waste recycling and energy/ emission-efficient waste to energy);
• Environmentally sustainable management of living natural resources and land use (including environmentally sustainable agriculture);
• Environmentally sustainable animal husbandry; climate smart farm inputs such as biological crop protection or drip-irrigation; environmentally sustainable
  fishery and aquaculture);
• Environmentally-sustainable forestry, including afforestation or reforestation, and preservation or restoration of natural landscapes);
• Terrestrial and aquatic biodiversity conservation (including the protection of coastal, marine and watershed environments);
• Clean transportation (such as electric, hybrid, public, rail, non-motorised, multi-modal transportation, infrastructure for clean energy vehicles and reduction of harmful emissions);
• Sustainable water and wastewater management (including sustainable infrastructure for clean and/or drinking water, wastewater treatment, sustainable urban drainage systems and river training and other forms of flooding mitigation);
• Climate change adaptation (including information support systems, such as climate observation and early warning systems);
• Eco-efficient and/or circular economy adapted products, production technologies and processes (such as development and introduction of environmentally sustainable products, with an eco-label or environmental certification, resource-efficient packaging and distribution);
• Green buildings which meet regional, national or internationally recognised standards or certifications.

Process for Project Evaluation and Selection

• The issuer of a Green Bond should clearly communicate to investors:
• The environmental sustainability objectives;
• The process by which the issuer determines how the projects fit within the eligible Green Projects categories identified above;
• The related eligibility criteria, including, if applicable, exclusion criteria or any other process applied to identify and manage potentially material environmental and social risks associated with the projects.
• Issuers are encouraged to position this information within the context of the issuer’s overarching objectives, strategy, policy and/or processes relating to environmental sustainability.
• Issuers are also encouraged to disclose any green standards or certifications referenced in project selection.
• We encourage a high level of transparency and recommend that an issuer’s process for project evaluation and selection be supplemented by an external review.

Management of Proceeds

The net proceeds of the Green Bond, or an amount equal to these net proceeds, should be credited to a sub-account, moved to a sub-portfolio or otherwise tracked by the issuer in an appropriate manner, and attested to by the issuer in a formal internal process linked to the issuer’s lending and investment operations for Green Projects.
So long as the Green Bond is outstanding, the balance of the tracked net proceeds should be periodically adjusted to match allocations to eligible Green Projects made during that period.
The issuer should make known to investors the intended types of temporary placement for the balance of unallocated net proceeds.
We encourage a high level of transparency and recommend that an issuer’s management of proceeds be supplemented by the use of an auditor, or other third party, to verify the internal tracking method and the allocation of funds from the Green Bond proceeds.

Reporting

Issuers should make, and keep, readily available up to date information on the use of proceeds to be renewed annually until full allocation, and on a timely basis in case of material developments.
The annual report should include a list of the projects to which Green Bond proceeds have been allocated, as well as a brief description of the projects and the amounts allocated, and their expected impact. Where confidentiality agreements, competitive considerations, or a large number of underlying projects limit the amount of detail that can be made available, we recommend that information is presented in generic terms or on an aggregated portfolio basis (e.g. percentage allocated to certain project categories).
Transparency is of particular value in communicating the expected impact of projects. We recommend the use of qualitative performance indicators and, where feasible, quantitative performance measures (e.g. energy capacity, electricity generation, greenhouse gas emissions reduced/avoided, number of people provided with access to clean power, decrease in water use, reduction in the number of cars required, etc.), and disclosure of the key underlying methodology and/ or assumptions used in the quantitative determination. Issuers with the ability to monitor achieved impacts are encouraged to include those in their regular reporting.
Voluntary guidelines aiming at a harmonized framework for impact reporting exist for energy efficiency, renewable energy, water and wastewater projects, and waste management projects .
The guidelines include templates for the format of impact reporting at a project and at a portfolio level that issuers can adapt to their own circumstances.
We encourage further initiatives, to help establish additional references for impact reporting that others can adopt and/or adapt to their needs and Guidelines for additional sectors are under development.

Green Projects Finance & Green Business expansion.

We have investors who are interested in green financing projects of large volume. The procedures are as follows:-

1. The client needs to send a brief summary of the project. This must include the total amount required for the project, estimated return on investment, loan repayment period this must not be more than 10 years.
2. The client will need to insure the said project with an insurance company of the total loan sum to guarantee the loan as collateral.
3. The interest rate will be liber +1 annually.
4. Repayment duration will be 10 Years + 2 years grace period.
5. Funding will take approximately 21 banking days from the day you present the insurance certificate.
6. You will pay us 1% commission after funding.

If you are satisfied with the above procedures send us a letter of intent writing on your company letterhead.

For further details about purchasing a loan of user-friendly respond immediately on our email: projectfinance@aajpglobal.com

Applicants’ companies and their projects should meet the criteria below to be eligible for support:

• Fewer than 100 employees and less than EUR 10 million in turnover, also at group level

• Registered in any country and at least three year of operations with clear proven financial track record and contribution in green economy

• Established business with commercialised eco friendly products or eco friendly services (i.e. sales revenue)

• Relevant industry experience and other resources for internationalisation and boost up green and emerging economics development

Criteria for projects eligible for funding:

• The project aims at green and eco friendly investment in commercial scale demonstration or sustainable green pilot projects.

• The project’s target country is outside the EU and Efta.

• Clearly defined green and sustainable project objectives

• Verifiable direct or indirect positive environmental or climate impact as per climate change convention and policies

• International and Regional interest, e.g. contributes to increased competitiveness, employment, economic growth, transfer of skills and technology, or involves green cooperation partners

• An identified local partner in the jurisdictions where the project will be implemented is required

For further more information’s concerning Intellectual Property Registration and acquisition, please contact us by E-mail: projectfinance@aajpglobal.com