Page 1 The Costs of Going Green and the Role of Financing MSMEs Dr. Wolfram Hiemann GREEN FINANCING...
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Transcript of Page 1 The Costs of Going Green and the Role of Financing MSMEs Dr. Wolfram Hiemann GREEN FINANCING...
Page 1
The Costs of Going Green
and the Role of Financing MSMEs
Dr. Wolfram Hiemann
GREEN FINANCING FORUM TAGBILARAN, BOHOL 29 APRIL 2013
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Problem
Climate change, in particular global warming,
provoked by human activities
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Global warmingTemperatures of pavements without trees and sunshine protected
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Going Green
A common definition for green financing has still to be developed.
For example: Green finance relates to financing activities and investments that reduce man-made effects on
climate change growing green house gas emissions and CO2 level measures: EE, RE, (re-) forestation
environment deterioration e.g. pollution and degradation of air, water and soil measures: cleaning effluents, flaring methane gas, terracing, mulching, organic farming, etc.
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Reward
For investorSubsidy, tax exemptionsPreferential loans: lower interest rate, longer gestation period, reduced collateral requirementTechnical assistance (TA)
For banks and other financial institutionsImage gain as an environment-conscious institutionAttracting new medium- to long-term oriented customers (lower risk of revoking the business permit or conflicts with the neighboring community)Access to long term fundsAccess to consultancy and training
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Consciousness and individual responsibility towards our joint environment
Knowledge about feasible options (research, information, consultancy)
Knowledge management (applying knowledge, investment not required: switching off the electricity consumer the engine, selecting paint,)
Availability or accessibility of equipment, after sales service
Finance
Inputs required to go green
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Consciousness
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Examples for green measures for MSMEs
Non assets related
• Consultancy (walkthrough)
• Training
• Smart electricity management
• Waste reduction and segregation
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Examples for EE equipment for MSMEs
Major fields of investment in EE
• Lighting: outphasing of incandescent light bulb, fluorescence light, and compact fluorescence light (CFL) for LEDs
• Refrigerating and air conditioning: Inverter technology, heat absorbers for heating water (simultaneously: replacement of ozone depleting substances)
• Heating (using process heat)
• Green transport: reduced fuel consumption and lower CO2 emission, use of LPG, LNG
• Green building architecture and environment
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Equipment: Selecting the right color: transport
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Building design and material
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Building design and material
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Examples for RE equipment for MSMEs
Warm/hot water generation:
Solar heat collectors
150 l = about Ᵽ 30,000 to Ᵽ 60,000 without/with electric heaterserves two to three hotel rooms
Savings: about 3 kWh/day x Ᵽ 11 or about Ᵽ 10,000 per year
(Smaller and larger capacities available)
In Bohol only available at Citi Hardware, Tagbilaran City
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Examples for RE equipment for MSMEs and cooperatives
• Agricultural waste converting to electricity (rice husks, melasse, etc.)
• Biodigester
• Micro-hydropower: 100 kW, investment Ᵽ 10,000,000 and more depending on civil construction (dam) and distribution grid, serves more than 100 rural households
• Photovoltaic electricity generation: 100 kWp, investment Ᵽ 10,000,000 to
Ᵽ 20,000,000 or more depending on battery capacity + 1,000 m2 landAnnual income: 1.2 kWh/Wp x 100,000 Wp x Ᵽ 7/kWh = Ᵽ 840,000
(Income is higher when based on feed-in tariffs)
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
LED lamp, rechargeable battery, solar panel : Ᵽ 8,000(Edward Marcs, Cebu)
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Promoting energy efficient LED lamps
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Replacement lighting Calculation model
Replacing 100 tube type lamps in shop and in office
Old: Tube type 8, 36 W, magnetic ballast
Replacement: 2 LED 7 W, bulb
Investment/tube: Ᵽ 1,200 + Ᵽ 1,000 for new fittings, total Ᵽ 2,200
Investment: Ᵽ 220,000 to replace 100 tubes
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Replacement lighting Calculation model
Savings
36 W – 2 x 7 W = 22 W x 12 hours/day x Ᵽ 11 / kWh = Ᵽ 2.9/day per tube
Total savings/year: Ᵽ 2.9 x 360 days x 100 tubes = Ᵽ 104,400/year
Payback period: 2.1 years
Further savings:
Less electricity consumption for AC: LEDs emit less heat
Replacement period for bulbs about 5 times longer
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Efficiency of air conditioners (AC)
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
13.6 for inverter / 9.2 = 1.48
= 48% higher EER
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Model conventional inverter
Consumption W/h 900 700
Savings of inverter W/h 200
Running time h/day 8
Savings per day/year kWh 1.6 / 584
Electricity tariff Ᵽ/kWh 11.0
Savings Ᵽ/year 6,424
Price of new AC Ᵽ 16,000 25,000
Payback period of difference (Ᵽ9,000) Less than 1.5 year
Replacement of air conditioner for office/home
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Biogas from piggeries
Biogas/methane capture and electricity production facility
Investment cost: about Ᵽ 7 million for 1,000 sow level farm
Savings replacement of electricity from grid: 80% or Ᵽ 0.5 million (7.1%)
Carbon credits
1,000 sow level = 10,000 heads = 18,000 t CO2 equivalent/year
18,000 t x EUR 0.5 – 5.0 / t CO2 = EUR 9,000 – 90,000
or Ᵽ 0.45 – 4.5 million per year
This income has to be shared with the carbon credit arranger, e.g. bank.
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Access to financing institutions is easy, but access to green finance?
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GREEN FINANCING FORUM - TAGBILARAN 29 APRIL 2013
Suggestion
Act environmentally consciously
Support environment friendly activities
We have only this planet, the next one is too far away
Thank you!