Innovative Solutions for a Sustainable Future in South Asia Promoting Clean Energy Enhancing Food Security DONOR PARTNERS Australia Austria Canada Denmark European Finland Union Germany Italy Japan Netherlands Norway Sweden Switzerland United Kingdom United States of America Improving Resource Efficiency Stori es of Impa c t Climate Change: Innovative Solutions for a Sustainable Future in South Asia Partnering with Private Bangladesh 6 Sector To Address Climate Change Impacts 24 Helping Farmers Enhance Incomes, Raise Productivity Improving Resource Efficiency 26 Promoting Clean Energy Increasing 12 Facilitating Energy Access Competitiveness 30 India Reducing Costs, 16 India From Innovation to Market Boosting Output Transformation Enhancing Food Security 34 The Way Forward Our Priorities, Next Steps 20 Building Climate Resilience for Farmers 36 Sharing Knowledge Partnering with Private Sector To Address Climate Change Impacts Globally, average temperatures have risen almost one degree celsius[1] since the late 19th century with massive loss of arctic sea ice, extreme heat waves, rising sea levels and variable and extreme rainfall patterns creating droughts and floods. According to World Bank's Turn Down the Heat Report on Climate change climate change, while all nations will suffer the effects of a poses a threat to warmer world, the inhabitants of the world’s poorest countries people in developing are most vulnerable to risks from food shortages, water scarcity, countries, many of cyclones and droughts. whom depend on From melting Himalayan glaciers in India, Nepal and Bhutan agriculture, forestry, that pose the risk of outburst floods to the rise in sea levels and fisheries for that threatens the coastlines of Bangladesh and Maldives, and their livelihoods. abnormal monsoon in recent years in parts of India, South Asia is highly vulnerable to natural disasters. IFC plays a unique role in helping clients In this 'make-or-break' decade, actions taken now could make a address risks and difference on how warm our planet will become. identify investment A global problem, the solutions for addressing climate opportunities change are local. IFC is supporting private sector clients in South Asia move to a low-carbon growth path through investment and advisory support in renewable energy, energy efficiency and resource efficiency, and by promoting climate resilient development. [1] IPCC, 2007: Summary for Policymakers. In Climate Change 2007:The Physical Science Basis. Contribution of the Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change [Solomon, S.D. Qin, M. Manning, Z. Chen, M. Marquis, K.B. Averyt, M. Tignor and H.L. Miller (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. 6 emand of water sing d for e rea ner Inc gy and energy for water Water Energy Food versus More water biofuel trade-off needed for more food + Increasing energy + intensity of Increasing water food intensity of food Food Energy, Food and Water Climate change impacts every sector - primarily water, IFC recognizes that climate-related interventions led energy and food security - and these are all IFC by the private sector are critical. IFC is leveraging its priorities today. expertise and scaling up climate change-related products to assist clients in implementing While the role of the public sector is essential to climate-smart and sustainable projects in a establish a supportive policy framework, the private changing environment. sector must also play a leading role in adopting a clean and green growth path. Current levels of investment in climate-related projects in developing countries falls far short of what is needed. According IFC's advisory services is making a to Climate Policy Initiative[2], the contribution to global climate finance by private investors is almost three difference by helping mitigate climate times greater than public finance. change and increase resilience through first-of-its-kind innovative and market [2] Out of the estimated climate finance of $97 billion a year, $55 billion is transforming initiatives provided by the private sector and $21 billion by public budgets Climate Policy Initiative 2011. The Landscape of Climate Finance. Venice. 7 Inclusive growth, global integration and addressing climate change impacts are IFC's three strategic pillars in South Asia. IFC addresses the challenges on climate change through: ●● Promoting Clean Energy ●● Enhancing Food Security Multiple ●● Improving Resource Efficiency challenges create significant IFC’s investments and advisory services help the private opportunities for sector reduce carbon footprints, increase agricultural productivity, and manage scarce natural resources IFC in the areas despite adverse climate events. of clean energy, food security and IFC’s activities spur efficiencies, improve competitiveness and, above all, ensure sustainable resource efficiency growth by supporting innovative technology applications and scalable business models. IFC is helping private sector promote more sustainable management of water resources. 8 Measuring IFC's Impact on Climate Change in Last Three Years ●● Improved access to services for around 300,000 people ●● Reduced greenhouse-gas emissions by nearly 160,000 tons carbon dioxide per year ●● Helped in water savings of 3.7 million cubic meters per year In the last three years, IFC South Asia has committed around $800 million in climate-related investments. This represents close to 21 percent of its total commitments. During the same period, IFC has spent around $14 million (nearly 18 percent of our total program spending) in advisory services-related engagements promoting climate-smart initiatives. This strategy has already led to the achievement of significant impacts. IFC works with clients to develop competitive and replicable clean energy business models to support projects that provide energy access in underserved regions. 9 South Asia is among the most vulnerable regions to climate change impacts. It is the poor who are the most affected. This situation will not improve if business-as- usual continues Promoting Clean Energy Reducing Greenhouse-Gas Emissions, Energy Poverty IFC partners with private sector clients, governments, and local financial institutions, including regional rural banks and microfinance institutions, to scale up energy access through off-grid appliances, roof top solar, and grid-connected wind and solar projects. IFC’s advisory services facilitate private sector investments in clean energy to reduce greenhouse-gas emissions and help countries shift to green paths for growth. In a major transformational initiative, IFC, through the Lighting Asia/India program, aims to bring modern, clean lighting services to two million people by the end of 2015. 10 Enhancing Food Security Improving Resource Efficiency Sustainable Agribusiness, Improving Productivity Savings Costs, Increasing Competitiveness In regions where climate-related risks of floods, droughts, IFC enables the development of profitable and saline intrusion, and landslides are endemic, IFC works environmentally sound projects, business models, with leading seed companies to increase production, and sector-wide engagements to change market distribution, and adoption of stress-tolerant and high- behavior and support environmentally sustainable, yield seed varieties. Many farmers lack awareness of low carbon economic growth. the availability of seed varieties or the farming practices required to maximize yields. Over the past few years, IFC has carried out water and energy assessments for clients at their Within agribusiness, IFC works with clients to manufacturing plants across sectors like pulp and promote improved agricultural and water management paper, cement, resorts, and dairy among others. This practices and introduce new technologies to small has led to nearly $7 million in annual savings with an farmers growing rice, vegetables, maize, and sugarcane investment of over $11 million. to adapt to climate change. 11 Promoting Clean Energy Facilitating Energy Access Over 700 million people in South Asia do not have access to electricity. About 90 percent of them live in rural areas. IFC works towards eradicating energy poverty and focuses on both grid connected and off-grid energy through innovative and market transforming initiatives. IFC improves access to energy by: ●● Advising firms on the commercial IFC is committed and technical aspects of renewable to working with technologies and business models different partners ●● Helping build capacity at the sector and stakeholders level and promoting best practices and to increase energy standards access to India’s ●● Facilitating access to finance along the under-served rural clean energy value chain population ●● Working with governments on initiating regulatory and policy reforms and facilitating investments through public private partnerships Our endeavor has been to move towards replicating and scaling up the success of our innovative projects and business models across the region. 12 Measuring IFC's Impact on Clean Energy in Last Three Years ●● Improved access to services for around 330,000 people ●● Reduced greenhouse-gas emissions by nearly 93,000 tons carbon dioxide per year Solar lanterns are a cleaner and safer renewable energy source for low-income people in off-grid areas. Wind energy is increasingly becoming a viable option to A mini powergrid enables off-grid households to have access to meet energy needs in South Asia. electricity supply. 13 Some of IFC’s innovative advisory interventions* in South Asia in the clean energy segment are: Expected Reduction in Greenhouse-Gas Expected Number Project Description Emissions of People (in carbon dioxide Reached tons per year) India With support from IFC and other partners, ‘Hariyali’, the green finance program of Self Employed Women’s Association (SEWA) 100,000 250,000 is enabling rural women to buy energy-efficient cook stoves and solar lanterns India OFF-GRID IFC is partnering with Micro Energy Credits (MEC), a carbon offset aggregator, to extensively engage with banks on lending 40,000 84,000 for solar home lighting systems and energy-efficient cook stoves. The project involves providing technical assistance to regional rural banks to develop their clean lending portfolio India Lighting Asia/India program is a market-transforming initiative 62,000 2,000,000 that aims to promote safe, affordable and modern off-grid lighting to people in rural India Sri Lanka IFC is working with financial institutions to develop a market 100,000 _ for power generation from renewable energy sources as an alternative to fossil fuels Public Private Partnership, India ON GRID IFC supported Gujarat state to structure and implement on public-private partnership basis an innovative small-scale 7,154 10,000 5 megawatt grid connected solar rooftop power project in Gandhinagar, the state capital The public private partnership solar rooftop project in Gandhinagar is now being replicated in five other cities of 30,000 36,000 Gujarat - Rajkot, Mehsana, Vadodara, Bhavnagar and Surat *These are ongoing projects 14 Top: Solar lanterns under Lighting Asia/India program give quality light and do not generate unhealthy fumes unlike the kerosene lamps traditionally used in rural India. Bottom: Solar energy is replacing diesel as a more efficient and cost effective energy source for operating telecom towers. 15 Case Study | India From Innovation to Market Transformation Gujarat state, located in western India, gets over 300 days of sunlight. The state government is committed to mitigating climate change challenges, and is willing to tap into its renewable energy resources, especially solar, while promoting development of sustainable and commercially viable decentralized plants at consumer premises. IFC is addressing technical and regulatory challenges by partnering with private sector to tap into the solar segment. Solar panels on rooftops of buildings in Gandhinagar, the capital of Indian state of Gujarat, are helping generate clean energy. 16 IFC is Supporting First-of-its-kind Solar Rooftop Pilot Project In 2011, the Government of Gujarat better installation of the system through replication in five more cities requested IFC’s assistance in and long- term operation and (projects of 5 megawatt each). The structuring a first-of-its-kind pilot maintenance. With IFC’s support, a tendering process for these five grid-connected solar rooftop pilot project of 5 megawatt (two 2.5 cities is going on. In addition, based power project as a public-private megawatt systems) in Gandhinagar on lessons learned from the pilot partnership. Using rooftops of public was successfully awarded through project, IFC is working on a policy buildings and private residences, a competitive tender to two private framework at the state and national the project seeks to avoid using developers in April 2012. levels, to incentivize future large- scarce and economically viable scale replication, and prepared a land. Although the concept exists Building on the success of the white paper on solar rooftop projects in developed markets like the US, pilot project, the state government for knowledge dissemination in India the pilot project in Gandhinagar, requested IFC to help disseminate and internationally. Gujarat’s capital, is the first in India. the concept across the state IFC worked on defining an innovative structure that would address the challenges of developing the solar rooftop market. Under the model developed by IFC, large third-party developers own the solar generation systems installed on the rooftops of public or private buildings. The key advantage of this model is that the third party developer is a specialized solar industry player with a better understanding of the solar photo-voltaic systems, thus ensuring IFC is helping Gujarat in implementing a pilot solar rooftop project on public private partnership basis. 17 Impact Expected Reduction Expected to in Greenhouse-Gas Improve Access to Gujarat Solar Rooftop Emissions Services Program (in carbon dioxide (in terms of tons per year) number of people) Pilot project (5 megawatt) 7,154 10,000 Replication projects in five 30,000 36,000 cities (25 megawatt) The public private partnership a conducive regulatory expertise of its staff from approach adopted here is framework. Additionally, the different departments in an effective means to bring model is replicable across the offering an integrated solution policymakers, regulatory country and internationally. to help achieve Gujarat bodies and utilities together to IFC is currently assessing Government's objectives of devise feasible frameworks for the feasibility of rooftop solar adding power generating future market transformation. programs in other Asian and capacity and mitigating African countries. climate change impacts. In Based on the lessons learned addition to advisory support, from the program, IFC is The Gujarat Solar Rooftop IFC has also financed supporting regulators at the Program is an innovative two developers for the national level to prepare example of IFC utilizing Gandhinagar project. 18 Top Left: IFC client SEWA is helping low- income women in Gujarat buy energy efficient cookstoves that require less fuel and produce fewer emissions. Right: Lack of access to reliable energy is a significant obstacle to economic development in emerging markets, particularly for people living and operating outside of the large urban centers. 19 Enhancing Food Security Building Climate Resilience for Farmers The agriculture sector in South Asia is impacted by increasing global temperatures, rising sea levels, saline intrusion, drought, and land submergence, affecting agricultural productivity and leaving millions of farmers vulnerable to global climate change. IFC partners with agribusiness companies to provide solutions in some of the most vulnerable regions in South Asia. IFC is enhancing food security by: ●● Advising agribusiness firms and their supply chains (traders, processors, and aggregators) on improved agricultural practices and opportunities to introduce climate-smart knowledge, products and technologies to small farmers ●● Training farmers to enhance agricultural yields and revenues of farmers and small and medium enterprises ●● Strengthening market linkages and supply chains Improved agricultural practices optimize use of scarce resources like water. for climate-smart products and technologies Our experience shows that farmers need capacity building and training on adoption of climate-resilient seeds and high-yielding varieties to enhance agricultural productivity and income 20 ●● Working with financial institutions to increase lending to farmers and other supply chain members ●● Facilitating investments through public private partnerships for expanding capacity and improving management of grain silos and warehousing Helping small farmers increase their productivity and linking them to markets is an important focus for IFC. 21 Some of IFC’s innovative advisory interventions in South Asia in climate resilience are: Expected Improvement in Expected Productivity (in percent)/Water Number Project Description Savings (in million cubic meters of People per year) Benefited Climate-Resilient Seeds Help Reduce Climate Change Impacts, Bangladesh* IFC is working with Bangladesh’s four largest At least 14.4 percent incremental private seed companies to enhance production, increase in yield for project-supported 80,000 distribution and adoption of high-yielding and farmers stress-tolerant seed varieties in poverty-stricken and climate vulnerable areas Building Climate Resilient Communities, Nepal IFC is working with leading agribusiness firms Productivity differential of 20 percent in Nepal to promote improved agricultural and between project- trained farmers 15,000 water management practices and introduce new and those without training over a technologies among small farmers producing rice, multiyear period maize and sugarcane to adapt to climate change Promoting Water Efficient Agricultural Production to Address Food Security, India* IFC is working with Indian companies to introduce water use efficiency technologies in their basmati 1.1 million cubic meters of water rice supply chain in state of Haryana. Through savings 1,100 promotion of technologies such as laser leveler and (achieved till date) direct seeded rice, the initiative has demonstrated substantial water savings potential over water- intensive transplanted rice cultivation methods Weather Index Insurance for Sri Lankan Farmers to Mitigate Risks* IFC is partnering with Sri Lanka's SANASA - 6,652 Insurance to help farmers minimize the impact of crop losses due to floods or droughts through weather-based agricultural insurance products *These are ongoing projects 22 IFC is working with agribusiness firms in Nepal to promote improved IFC is assisting private sector in Bangladesh develop new climate- agricultural and water management practices. resilient seeds. Direct seeding eliminates the laborious process of planting rice seedlings by hand and reduces water requirements significantly. 23 Case Study | Bangladesh Helping Farmers Enhance Incomes, Raise Productivity Climate change poses a serious challenge to Bangladesh's agricultural output and puts its food security at risk. As a low-lying country with large delta areas, Bangladesh experiences extreme weather events, which result in flooding and land inundation. Bangladesh is already losing 1.75 percent of its arable land each year – faster than its population growth of 1.5 percent. By 2025, its agricultural sector will have to feed an additional 19 million people with considerably less land. Soil and water salinity and drought intensity have increased across the country, while crop yields remain low due to inefficient agricultural practices. IFC is helping women in Bangladesh become micro-entrepreneurs by using stress- tolerant and hybrid seeds. 24 Increased Availability of Stress-Resistant Seeds for Farmers The agri-seed project contributes ●● Identification and Impact to food security and helps promote addressing of critical resilient agricultural practices by sectoral policy constraints Of the 66,120 farmers trained in adoption of strengthening the private sector’s new seed varieties and modern agricultural capacity to enhance production, As part of the project, IFC is practices distribution and adoption of high- working with: ●● Over 67 percent adopted project- yielding, hybrid and stress-tolerant ●● Bangladesh's largest recommended practices. seed varieties. Working with lead firms, private seed companies IFC works to enhance incomes of ●● 44,000 reported improved (Energypac Agro-G rice and vegetable farmers and seed performance, including better Limited, Supreme Seed, growers in Bangladesh where farmers productivity and business outcomes. ACI Limited, and Lal Teer face greater challenges due to climate Limited) to demonstrate change and low crop productivity. Key ●● 26,000 implemented changes related the business case for components of the project are: to climate change adaptation. stress-tolerant and hybrid ●● Adaptation to climate seeds in climate vulnerable ●● 19,200 adopted new practices change by farmers through and high-risk areas related to productivity improvements. promotion and distribution ●● Seed growers, dealers, Supporting Micro-entrepreneurs of stress- tolerant seeds by and retailers to expose private seed companies Helped 1,200 women become them to new seed varieties by supporting field micro-entrepreneurs by growing and ●● Productivity improvement by demonstrations selling seeds. enhancing the production, distribution and promotion of Eight new stress-tolerant seed varieties ●● Bangladesh’s Ministry high-yielding variety/hybrid were launched by the government of Agriculture and other seeds through private of Bangladesh to private sector for government departments seed companies production and multiplication. and agencies to ●● Capacity building and training encourage public-private Market Linkage of seed companies and dialog and improve the their supply chains such regulatory environment for One lead firm and three additional as dealers, retailers and seed companies buyers sourcing seeds from established aggregators seed growers. 25 Improving Resource Efficiency Increasing Competitiveness The impact of climate change on ●● Assessing potential for water availability will affect several increased energy, water, and sectors including energy production resource efficiency at the firm and manufacturing, which are level critical sectors for growth. IFC’s ●● Developing and undertaking resource efficiency team works with sector benchmarking of firms to save costs, prevent waste, resource efficiency indicators and reduce greenhouse-gas emissions for certain resource-intensive through more efficient use of energy, sectors to overcome water, and raw materials. At the knowledge gaps sectoral level, IFC promotes wider adoption of good practices through ●● Collaborating with financial case studies and benchmarking use of institutions, industry groups, energy, water, and raw materials. and other market aggregators to scale up investment IFC works with private and public ●● Promoting resource-efficient stakeholders to promote efficient use of best practices and standards natural resources by: like green building standards ●● Analyzing and supporting IFC's resource efficiency teams work with firms policy and regulatory needs to ensure optimal and efficient use of energy, on energy/water efficiency and water and other natural resources. waste prevention/recycling Supply of resources is limited today, and our natural resource base is being eroded. The efficient use of natural resources is critical for sustainable private sector development 26 Measuring our Resource Efficiency Growth in Last Three Years ●● Reduced greenhouse-gas emissions by 66,300 tons carbon dioxide per year ●● Helped in water savings of 2.6 million cubic meters per year IFC's Cleaner Production Program in South Asia includes initiatives that contribute to significant savings of water and energy. 27 Some of IFC’s innovative advisory interventions in South Asia that help optimize use of natural resources are: Expected Expected Reduction in Water Savings Greenhouse-Gas Project Description (in million Emissions cubic meters (in carbon dioxide per year) tons per year) Cleaner Production Program for South Asia The project directly supports cleaner production assessments with existing and potential IFC investee clients in paper and pulp, 74,300 1.3 cement and other sectors. Cleaner production is a key instrument for carbon dioxide emission reductions and an effective way to mitigate risks known to cause or accelerate climate change Corporate Water Program* IFC partnered with the Tata Group to develop a water sustainability framework for group companies -Tata Steel, Tata Power, Tata Motors and Tata Chemicals - based on Water Footprint Network’s globally acknowledged water footprint India methodology. The project calibrated water usage at eleven facilities and identified investments in water conservation -- 6.8 technologies and solutions. Following the project, the Tata Group, one of the premier conglomerates in India, will develop and implement a group-wide water policy and strategy, starting with the replication of water footprint assessments across all group companies. The group will also partner with IFC and other stakeholders to catalyze water security solutions for farmers in the north Indian state of Uttar Pradesh Municipal Street Lighting in Bhubaneshwar* IFC is supporting the Indian state of Odisha in upgrading the 6,800 -- street lighting network in the capital of Bhubaneswar through a public private partnership approach *These are ongoing projects 28 Expected Expected Reduction in Water Savings Greenhouse-Gas Project Description (in million Emissions cubic meters (in carbon dioxide per year) tons per year) Low Carbon Special Economic Zones This project will lower carbon emissions within the Chittagong 11,728 -- Export Processing Zone and provide a roadmap to a low-carbon Bangladesh growth path for other export processing zones inside and outside Bangladesh Partnership for Cleaner Textile IFC has engaged with ten apparel brands to harmonize procurement guidelines related to water efficiency in the 20,000 2.5 supply chain, 200 textile factories to identify resource efficiency measures, and 150 factories on best textile processing and effluent treatment technology investments IFC’s innovative $10 million Partnership for Cleaner Textile initiative is paving the way to reduce water use and pollution in Bangladesh’s textile sector. 29 Case Study | India Reducing Costs, Boosting Output Helping Clients Save Resources With increasing globalization, manufacturing units are looking for innovative ways to be sustainable on all fronts. Energy costs, as a percentage of manufacturing costs have increased due to higher fuel prices, which impact both production and distribution costs and erode long-term competitiveness and profitability. Implementation of resource efficiency recommendations by IFC client JK Paper led to significant savings of water and energy. 30 Energy, Water Savings Contribute to Improved Bottom Line As part of its Resource Efficiency Broadly, the recommendations program for South Asia, IFC has encompass the optimization Impact provided technical assistance of electric drives and motors, on cleaner production to five IFC steam and pumping systems, In aggregate, IFC's investee companies across the and cooling and lighting systems. resource efficiency initiatives sectors of pulp and paper, cement, Following IFC’s intervention, the in South Asia have enabled resorts and food processing. company identified additional investment opportunities of The assessments helped these improvements and has secured $11 million, annual water companies identify energy, water, a $3 million loan from IFC to savings of 1.3 million cubic and other types of resource savings, implement these. meters (equal to annual water reduce greenhouse-gas emissions consumption of 7,600 Indian in operations, and, consequently, IFC’s engagement with our households), and reductions improve profitability. client in the Maldives — the in annual greenhouse-gas Universal Group — to conduct emissions of 54,500 tons. In the case of JK Paper, one of India’s a clean production assessment biggest branded paper producers, in four of its resorts identified IFC conducted an assessment at around 15 percent savings in the company’s manufacturing plants electricity and 5 percent in water in the states of Odisha and Gujarat. consumption. This translates to Following this, the company agreed 5,000 tons of greenhouse-gas to implement IFC’s recommendations, emissions reduction per year. which are expected to result in IFC extended a $2.5 million annual savings of over 17,000 tons of loan to Universal Group to help greenhouse-gas emissions, around implement the recommendations 3 million cubic meters of water and of assessment report. around 15 gigawatt of electricity. 31 IFC and IFC investee client Attero, an eWaste asset management and recycling company, are working on a joint initiative to collect and responsibly recycle eWaste through an inclusive approach that integrates informal waste collectors. 32 After successful engagements with individual Sustainability Initiative of the World Business clients, IFC’s Cleaner Production Program Council for Sustainable Development and in South Asia has been expanded to include the International Energy Agency with the initiatives that can have a wider impact support of cement manufacturing companies in and influence standards and policy. IFC India and IFC, demonstrating the critical role of has supported the World Business Council partnerships. for Sustainable Development to develop a technology roadmap for the Indian Cement As part of the program, IFC is also supporting Industry. This is the first ever national these companies undertake resource efficiency level greenhouse-gas emissions road map assessments at their manufacturing units. The for any energy intensive manufacturing assessments will identify specific areas where sector. The roadmap looks at various future investments related to energy efficiency, raw scenarios facing the Indian cement industry material conservation (clinker substitution), and suggests a pathway up to 2050 for the waste heat recovery, use of alternative fuels reduction of direct greenhouse-gas emissions. and new technologies can lead to greenhouse- The roadmap was developed by the Cement gas emissions reductions. IFC is helping cement companies undertake resource efficiency assessments at their manufacturing units. 33 The Way Forward Our Priorities, Next Steps Climate change is a key In some extreme cases, climate IFC recognizes there are challenges priority for IFC in both its change is a threat to development and obstacles to climate-smart investment and advisory progress made over the past growth. The current economic work. Our future strategy decades. Climate change mitigation environment has put pressures on seeks to: and adaptation efforts must align many governments to focus on more with poverty alleviation and other immediate concerns. There has • Reinforce agribusiness supply development objectives. been a slowdown in government chains aimed at improving frameworks, regulations, and food production, storage, IFC is committed to promoting pro- investments geared towards the and distribution, save energy poor climate-smart development green economy. The private sector, and limit greenhouse- globally. In South Asia, IFC’s overall while recognizing the risks and gas emissions while assisting strategy emphasizes on strengthening opportunities associated with climate in jobs creation climate resilience in frontier markets change, needs new business models • Improve access to energy such as Nepal and Bangladesh, and and financing to access these for the masses through large in India’s low income states in the opportunities and reduce risks. This scale replication of proven on- next three years. grid and off-grid applications • Work closely with governments to develop the renewable energy sector • Explore opportunities to introduce IFC EDGE 'Excellence in Design for Greater Efficiencies', a green buildings design and certification system for emerging markets. 34 continues to make green growth slow required investments, IFC is interventions, but also uncover and difficult. focusing on managing resources new opportunities and identify in a sustainable way. For instance, cutting edge advisory services To scale up activities, IFC is new business models for area based and investment products to collaborating with the World Bank, participatory watershed management address evolving needs of clients. donors, public and private stakeholders to ensure sustainable distribution so that the impacts can be meaningful. of resources to communities are IFC is in a strong position to under consideration. address these challenges IFC’s actions and policies over the next by demonstrating viable three years span a range of ground- IFC’s response to the challenges investment strategies, shaping breaking climate change mitigation and of climate change impact is markets through regulatory and adaptation initiatives focusing on food, driven by market need and policy advice, and providing water and energy security. client’s requirements. leadership to the donor and the international community. Through appropriate and efficient In an ever changing environment, delivery of services in water and IFC must not only scale up existing 35 Sharing Knowledge IFC’s knowledge products in climate change Lighting Asia: Solar Off-Grid Lighting, Market Analysis of India, Bangladesh, Market analysis of : india, Bangladesh, nepal, pakistan, 1 indonesia, CaMBodia, and philippines Nepal, Pakistan, Indonesia, Cambodia and Philippines Lighting Asia: Solar Off-Grid Lighting Nearly 800 million people in Asia live in Market analysis of: a state of near darkness, coping with india, Bangladesh, nepal, pakistan, indonesia, CaMBodia and philippines unreliable or non-existent or no access to electricity on a daily basis. There is a strong demand among off-grid consumers in Asia for reliable, clean and cost-effective alternatives to fuel-based lighting. This report provides an overview of the off-grid lighting market in seven nations across south Asia – India, Bangladesh, Nepal, Cambodia, Indonesia, Pakistan and the Philippines – and presents an opportunity for investors and industry players to make a real and necessary impact by serving communities that lack access to reliable electricity. 36 From Gap to Opportunity: Business Models for Scaling Up Energy Access From Gap to Opportunity: This report breaks new ground by estimating Business Models for that there is a $37 billion market opportunity Scaling Up Energy Access for improved energy services at the base In partnership with Austria of the pyramid. It profiles companies with innovative business models and explores in detail what it takes for them to succeed. More specifically, the report sizes the commercial opportunity for lighting, basic electricity and cooking services, and explores in depth how companies are capturing this potential around the world. With a view to scaling up market-based successes, it offers a series of recommendations for operating firms, social and commercial investors, policy-makers and donors. 37 CREDITS Photography J.K. Paper (front cover) Dominic Sansoni Curt Carnemark Emmanouela Markoglou Shehzad Noorani Gujarat Power Corporation Limited Sattyakee D’com Bhuyan Sustainability Knowledge Network S. Jain Zahidul Naim Zaharia A. Jacobson This publication may contain advice, opinions, and statements of various information providers and content providers. IFC does not represent or endorse the accuracy or reliability of any advice, opinion, statement or other information provided by any information provider or content provider, or any user of this publication or other person or entity. IFC South Asia, 2014 About IFC IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. Established in 1956, IFC is owned by 184 member countries, a group that collectively determines our policies. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. IFC leverages the power of the private sector to create jobs and tackle the world’s most pressing development challenges. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. Contact Information Stay Connected International Finance Corporation www.ifc.org/southasia Maruti Suzuki Building www.facebook.com/IFCsouthasia 3rd Floor, 1 Nelson Mandela Road, www.twitter.com/IFC_SouthAsia Vasant Kunj, New Delhi - 110070 www.ifc.org/facebook India www.twitter.com/IFC_org T: +91 11 4111-1000 www.youtube.com/ifcvideocasts F: +91 11 4111-1001 www.ifc.org/SocialMediaIndex www.ifc.org