1. MOBILIZING PRIVATE RESOURCES FOR FINANCING INCLUSIVE GREEN GROWTH Philippine Experience Jerry Clavesillas Director, BMSMED Department of Trade and Industry

2. About the PHILIPPINES 7,000 islands, 30,000 km 2 GDP 6.2% (2012) Employment generation: 997,000 (2012) Gains in industry sectors, particularly services Gross Domestic Product (GDP) 7.6% 3.9% 6.2% Source: National Statistical Coordination Board National Income Accounts, Growth Rates (in %) Source: National Statistical Coordination Board Industry Origin201020112012 Agriculture, hunting, forestry, fishing (0.2)2.70.8 Industry11.62.35.4 Services7.15.17.7

3. Source: 2011 List of Establishments, NSO RP Enterprises (820,255) MSMEs - 99.6% (816,759) Large - 0.4% (3,496) Contribution of MSMEs 99.6% of total firms Micro - 90.6% (743,250) Small - 8.6% (70,222) Medium - 0.4% (3,287) Overview of Philippine Micro, Small and Medium Enterprises (MSMEs) 61% of employment 35.7% of value added Assets = Eu 52,000 Employees = 1 to 9 Assets = Eu 52,000 Employees = 1 to 9

4. Philippines and Climate Change World Risk Report 2011 1 Vanatu 2 Tonga 3 Philippines 4 Solomon Islands 5 Guatemala Typhoon Pedring (September 2011) and Typhoon Quiel (October 2011): 10M Euros, 80 dead, 500,000 persons displaced Typhoon Sendong (December 2011): 75M Euros, 1,200 dead, 1M persons displaced Typhoon Ondoy (September 2009): 350M Euros Typhoon Pablo (December 2012 ): 670m EUR 1,067 Dead, 834 missing 2,066 Injured Annual cost of damage due to extreme weather events = 1 percent of GDP/yr (1990-2008) Figure 1 Most Vulnerable Areas to Potential Climate Hazards in the Philippines Source: Department of the Environment and Natural Resources 2010: Philippine Strategy for Climate Change Adaptation, 2010 - 2022 Storm surges will affect 14% of the total population and 42% of the coastal population (World Bank, 2013) 4 o C  = 50cm sea level rise (World Bank, 2013)

5. Public Policy frameworks Policies to promote a green economy Solid Waste Management Act Clean Air Act Clean Water Act Renewable Energy Act National Climate Change Action Plan Globalization Corporate Social Responsibility Green Growth Business Opportunities from Migration Gender Responsiveness Market System Development Sector Competitiveness Local and Regional Competitiveness A2F P&EA2M BE MSME

6. RELENDING FACILITIES Green Finance in the Philippines SUSTAINABLE ENERGY FINANCE PROGRAM (SEF) Green Investments Renewable energy (solar, biomass, mini hydropower) Cleaner production Water conservation Proper waste management Energy efficiency

7. Challenges of Financing Inclusive Green Growth Consciousness and responsibility towards the environment Understanding the economic benefits of going green Documented success stories Availability, accessibility of technology and expertise on greening business operations

8. Measures to Overcome the Challenges International level Revitalize the clean development mechanism (CDM) and carbon trading market National architecture for green finance In the Philippine setting, enterprise level interventions are critical to have a larger impact on the national economy Enhancing the knowledge and awareness of MSMEs on the benefits of going green, technology and expertise available Incentives for enterprises to go green Adopt greening practices that require zero or minimal investments Reduce documentary requirements, lower interest rates, collateral substitutes and cash-flow based lending

9. Final Message Green finance plays an important role in greening the national economy In the Philippines, we need to approach it from a bottom- up perspective, looking at the importance of the MSMEs for a Green Economy For MSMEs Green Finance should come in only where it is appropriate and economically beneficial for the MSME in the medium term.

10. Thank you very much for your attention Maraming salamat Po! Jerry Clavesillas Director Bureau of Micro, Small and Medium Enterprise Development Department of Trade and Industry (BMSMED-DTI) jtclavesillas@yahoo.com