MOBILIZING PRIVATE RESOURCES FOR
FINANCING INCLUSIVE GREEN
GROWTH
Philippine Experience
Jerry Clavesillas
Director, BMSMED
Department of Trade and Industry
8
About the
PHILIPPINES
•
7,000 islands,
30,000 km2
•
GDP 6.2%
(2012)
7.6%
Gross Domestic Product
(GDP)
6.2%
6
3.9%
4
2
0
•
•
Employment
generation:
997,000 (2012)
Gains in
industry sectors,
particularly
services
2010
2011
2013
Source: National Statistical Coordination Board
National Income Accounts, Growth Rates (in %)
Industry Origin
2010
2011
2012
Agriculture, hunting, forestry,
fishing
(0.2)
2.7
0.8
Industry
11.6
2.3
5.4
Services
7.1
5.1
7.7
Source: National Statistical Coordination Board
Overview of Philippine Micro, Small and
Medium Enterprises (MSMEs)
Assets =
Eu 52,000
Employees =
1 to 9
Contribution of MSMEs
•
99.6% of total firms
•
61% of employment
35.7% of value added
•
Micro - 90.6%
(743,250)
MSMEs - 99.6%
(816,759)
Small - 8.6%
(70,222)
RP Enterprises
(820,255)
Large - 0.4%
(3,496)
Source: 2011 List of Establishments, NSO
Medium - 0.4%
(3,287)
Philippines and Climate Change
World Risk Report 2011
1 Vanatu
2 Tonga
3 Philippines
Typhoon Ondoy
(September 2009):
350M Euros
(World Bank, 2013)
4 Solomon Islands
5 Guatemala
Storm surges will affect
14% of the total
Typhoon Pedring (September
2011) and
Typhoon Quiel
(October 2011):
population
and 42% of
10M Euros, 80 dead,
500,000 population
persons
the coastal
displaced
(World Bank, 2013)
Figure 1 Most Vulnerable Areas to
Potential Climate Hazards in the
Philippines
Typhoon Sendong
4oC  = 50cm
sea level rise
Typhoon Pablo
Source: Department of the
(December
2011):
Environment
and Natural
Resources (December 2012 ):
2010:Euros,
Philippine
Strategy
for Climate
75M
1,200
dead,
670m EUR
Change
Adaptation,
2010 - 2022 1,067 Dead, 834 missing
1M
persons
displaced
2,066 Injured
Annual cost of damage
due to extreme weather
events =
1 percent of GDP/yr
(1990-2008)
Public Policy frameworks
• Policies to promote a
Globalization
green economy
• Solid Waste
•
•
•
•
Management Act
Clean Air Act
Clean Water Act
Renewable Energy Act
National Climate Change
Action Plan
BE
A2F
MSME
P&E
A2M
Market System
Development
Green Finance in the Philippines
Green Investments
• Renewable energy (solar,
biomass, mini hydropower)
• Cleaner production
• Water conservation
• Proper waste management
• Energy efficiency
RELENDING FACILITIES
SUSTAINABLE ENERGY FINANCE
PROGRAM (SEF)
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
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
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.
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