Switch Asia _ Access 2 finance

7/28/2019 Switch Asia _ Access 2 finance

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Engging with inncing institutins

r grEEning sMEs

H ngg H Fnnng

nun g nd lnlnd Fm H H- Pgmm

H-sia network Faciity

is e by the ropea uio.

H-sia network Faciity is ipeete by the oaborati etre

o staiabe osptio a Proctio a pperta stitte

or iate, viroet a ery.


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rEvitins

cP apacity bii prorae

cDM ea deveopet mechais

cEr ertife eissios rectios

EE ery efciecy

E&rE ery a resorce efciet

EuM-EnP u-maaysia Bioass trepreers nrtri Prorae

Eu-Pic u Project cbatio etre

Esc ery service copaies

i Fiacia istittios

ghg greehose as

iEM stria eqipet aactrer

ic teratioa Fiace ooperatioMEEt-is maistreai ery fciecy hroh Bsiess ovatio pport Vieta

(m-B Vieta)

PDD Project esi ocet

r&D esearch a deveopet

scP staiabe cosptio a proctio

sME a a ei-size eterprises

sscM staiabe sppy chai aaeet

SWITCH-Asia | ENGAGING WITH fINANCING INSTITuTINS f GEENING SmES

PuishEr

H-sia network Faciity

oaborati etre o staiabe

osptio a Proctio (P)

Haeaer trae 30

42107 pperta | geray

Phoe | +49.202.45 95 8.10

Fax | +49.202.45 95 8.31

www.switch-asia.e

aito:[email protected]

cPyright

he H-sia network Faciity

uthrs

sae mer a Brc er

with contribtions ro Jio res oso grizaes,

ybe grovestis a eco va tappershoe

suPErvisin nD guiDncEFras Verspeek (Tea Leader, the Network facility)

DEsign

ar aer

This pblication has been prodced or the SWITCH-Asia Prograe and the Eropean union. The contents o this pblication are the soleresponsibility o the Collaborating Centre on Sstainable Consption and Prodction (CSCP) and can in no way be taken to reect the viewso the Eropean union.
http://www.elmarsander.de/http://www.elmarsander.de/http://www.elmarsander.de/


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Table o Contents 3

Foreword 5

Summary o main fndings 6

1. Introduction 9

1.1 Accesstonanceadriverforeconomicdevelopment 10

1.2FinancingneedsofSMEs 11 1.3Financingsolutions 11

1.4Thenancinggap 14

2. Which strategies and tools do SWITCH-Asia projects implement

to close the fnance gap? 17

2.1Strategy1:AddressingtheEnablingEnvironmentforAccesstoFinance 18

2.2Strategy2:PromotingFinancialServices 20

2.3Strategy3:IncreasingCapacityofSMEstoAccessFinance 24

2.3.1 Raisingawarenessonnancialliteracy 25

2.4Strategy4:AddressingBanksfromAwarenesstoTechnicalAssistance 26

2.4.1Buildingrelationswiththenancialsector 26

2.4.2RaisingawarenessonSCP 27

2.4.3ExplainingtheBusinessCaseofEnergyEfciency/

ResourceEfciency(EE/RE) 28

2.4.4Showcasinginvestmentopportunities 30

2.5Strategy5:EnablingInvestmentLinkages 31

2.5.1 Creatingdialoguebetweendemandandsupply 31

2.5.2CreatingjointplatformsviaStudyTours 31

2.5.3BusinessMatchmaking 32

2.5.4Forminginstitutionalpartnershipswithnancialinstitutions,

banksandinvestors 33

3. What lessons have been learned by SWITCH-Asia projects? 35

3.1Opportunities 36

Reerences 39

TA

F CTTS

SWITCH-Asia | ENGAGING WITH fINANCING INSTITuTIoNS for GrEENING SmES


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hia motor

haee

co-riey

Baboo

Bioass-P

-PK

gree Phiippies

sas

m eb

tootive

m

m-B

ectric motor ystes ery-avi haee

provi the perati fciecy o hiese ectric

motor ystes

staiabe reviva o iveihoos i post-isaster icha:

haci eco-riey pro-poor baboo proctio sppy

chais to spport the recostrctio eort

staiabe Proctio o the Bioass stries i

maaysia: ptiisi cooic Potetia a moviowars Hiher Vae hai

staiabe a eaer Proctio i the maactri

stries o Pakista

reati gree Phiippies sas o staiabiity

m Bu: ms or viroeta ccotabiity,

esposibiity a rasparecy

greei ppy hais i the hai to a tootive

Parts stries

maistreai ery fciecy hroh Bsiess

ovatio pport Vieta

Pojee loao

hia

hia

maaysia

Pakista

Phiippies

Phiippies

haia

Vieta

switch-si PrEcts DDrEssing ccEss t inncE

r grEEning sMEs

bbeao Poje le



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key chaee or ay eveopet

prorae is to scae-p sccess ap-

proaches a ethoooies to spee

p the path to sstaiabe eveopet. the

ast ecae, a vast array o oo practices o ss-

taiabe proctio a cosptio have bee

eveope a eostrate.

he H-sia prorae ais to take

this oe step rther. he projects e er

the prorae sho epoy scai p ech-aiss to tipy, eare a sprea existi

oo practices. H-sia projects iht

scae-p horizotay a/or verticay. Hori-

zota scai-p (aso reerre as scai-ot)

reers to the raa ro-ot o activities withi

a sector or to a wier eoraphic area. Vertica

scai-p ocses ore o oraisatios a

raeworks at oca, reioa a/or atioa

eves, ivovi both the irect sppy chai ac-

tors as we as eabers sch as overet a

facia istittes.

Projects appy their ow approach to sca-

i-p, brii asti ipact to a wier eo-

raphic area tha oriiay aresse, to a criti-

ca portio o a sector, a to a are ber o

coser rops.

2010, the network Faciity ache a proc-

ess o aaysis, which ocse o how these

scai-p echaiss cotribte to the eec-

tive aistreai o sstaiabe cosptio

a proctio (P) i society. Five ajor areaseere:

ai with service proviers

Bii parterships with sppy chai

actors

liki with poicy-akers

ai with cosers towars ethica

prchase a se

abi access to face

his report ocses o access to face (2F) or

scai-p P. ms a over the wor beeft

whe they ipeet P strateies. may tar-

ete by the H-sia prorae ocs o

iprovi eery a resorce efciecy, a

the switch to ore efciet techooy which

eas kowee, eaership a, ost

o a, ivestet. may sia ms are cha-

ee by the iits o their iqiity to eet

short- a ie-ter coitets a i-

vestet pas. sch cases access to face

is crcia or aki ree rowth a reaity, sca-

i-p the aactri o a prooti theea, or ree procts.

o be abe to preset the strateies H-

sia projects are si to access face, this

report presets isihts base o project e-

orts towars eabi access to (ree) face

schees or ms. By ate 2012 oy a sa

ber o H-sia projects ha recoise

the iportace o provii access to face

a were si it to everae a shit i proc-

tio practices. most projects ocs o raisi

the capacity or ceaer proctio bt whe it

coes to ipeetatio, access to face has

bee o to be key. oe projects, thereore,

rear face as a spporti istret. his

report asses that eve spporti activities

ca eabe eari i how to pa, proote a

process access to face. he essos eare

ca provie crret a tre project a pro-

rae eveopers with erichi ioratio

a tips o how to iprove their ipact by e-

haci activities i the eveopet a ex-ectio o projects with ore eective 2F.

his report is the frst part i the aaysis o

P scai-p echaiss a ietifes iter-

esti areas that ca ake a ierece. Frther

research reports o scai-p echaiss are

proce by the H-sia network Faciity

a are avaiabe er www.switch-asia.e/

switch-ino/pblications.htl.

his sty wi be cotie as the projects a-

vace a as ew oes coe o-strea.

rEwrD

http://www.switch-asia.eu/switch-info/publications.htmlhttp://www.switch-asia.eu/switch-info/publications.htmlhttp://www.switch-asia.eu/switch-info/publications.htmlhttp://www.switch-asia.eu/switch-info/publications.htmlhttp://www.switch-asia.eu/switch-info/publications.html


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suMMry

Min inDings

iacia resorces iht be essetia or

their aoptio o eviroetay riey

practices a techooies by sia sa

a ei size eterprises (ms). o, i the

H-sia Prorae, ree face is a very

everae poit or the pscai o sstaiabe

proctio practices.

ms have a wie rae o faci ees

as they set to ree their bsiess. the short-

ter, ms reqire worki capita, or exapeto prchase eviroetay riey raw ate-

rias. the ei-ter, ms ee access to

aeqate faci or ivesti i eco-efciet

eqipet a cea techooies. the o-

ter ree faci wo be eee or

scai-p the ree bsiess oe to other

reios a sectors.

respose to these ees, ms ca f a

spectr o faci sotios i the arket.

hese co be rope i six cateories: ebt

faci (e.. coercia oas); eqity fac-

i (e.. vetre capita); istittioa i

(e.. pbic rats); easi a actori; tai-

ore facia istrets (e.. carbo face),

a spporti o-facia services (e..

capacity-bii o facia services). xperi-

ece ro H-sia has cofre that i

sia both creit a eqity faci sotios

are avaiabe, at varios staes o atrity o

ms. he it coes to ree s, these areaiy avaiabe as bak oas or cea eery

or eery efciecy sotios. Vetre capita

a start-p s are aso eteri the arket

a awaiti etrepreers, who ike to ake

a ipact throh faci resorce efciet

procts a services.

despite the easiy ietifabe faci

ees a a wie rae o faci sotios

i the arket, there is sti a isatch betwee

the ea a sppy sies. evera barriers

co be ietife o both sies ici:

lack o facia iteracy;

lack o facia trasparecy;

ervices o faci istittios perceive

too costy;

Poor arketi a coicatio

by facia istittios;

ms ack coatera;

Baks reqire ms trasparecy;

lack o eective chaes a oaities or

coicatio with creit proviers ori prposes;

Baks o ot cosier m ei as

proftabe bsiess.

ee, the roe o the H-sia Prorae

is to aress the barriers o both sies with

specifc strateies. hese ice: aressi

the eabi eviroet or ccess to Fiace;

prooti facia sotios; icreasi capac-

ity o ms to access face; aressi baks

ro awareess to techica assistace, a

eabi ivestet ikaes.



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strtEgy 1:

DDrEssing thE Ening EnvirnMEnt

r ccEss t inncE

he reatory raework pays a critica roe i

iprovi the faci ascape or ms.

oo ea raework a facia irastrc-

tre ca set the ecessary pre-coitios oreabi ms to access face. Few H-

sia projects sch as SCI-Pak ocs o ietiy-

i potetia opportities to iprove existi

poicies a aki recoeatios or ew

poicy istrets or eabi facia access

towars sstaiabe proctio. other ap-

proach observe was to ocs o avocati a

particar poicy istret. For exape, base

o ipts ro ti-stakehoers, the Bioass-

SP project evisios eveopi poicy reco-

eatios or a Bioass ctio Pa. co-crete easre co ice reevat ecooic

istrets to proote the coerciaizatio

o bioass.

strtEgy 2:

PrMting innci sutins

most H-sia projects that are crrety

aressi the topic access to face are i-

ci the topic i raisi awareess activities.

depei o the project, teas icorporate

ioratio o facia optios i roa shows,

awareess ors or workshops. For exape,

Bioass-SP project presets avaiabe faci

assistace or existi aactri bioass

copaies, especiay throh the aciity o

sot oas, or creit aratee ri the oa

hows. workshops a project exhibitios,

the mEET-BIS project ivites a represetative o

a oa aratee , a speaker ro itera-

tioa faci istittio a a represetative

o a m bak to exchae o facia serv-ices to ehace m access to eery efciet

techooy.

strtEgy 3:

incrEsing cPcity sMEs t ccEss

inncE

o sccee i etti facia resorces, m s

ee to coicate the bsiess case or P

to facia istittios a ivestors by show-

i the the copetitive avataes o ipe-

eti P strateies i their operatios. lack

o bsiess kowee a aaeet abiity

ca icrease facia barriers or ms. low ev-

es o facia iteracy ca prevet ms ro

aeqatey assessi a erstai i-

eret faci optios. t the sae tie, the

act that ms accoti recors a facia

stateets are ote either cear or eviet.

For exape, SmAT Ceb project appies i-ivia coachi to ms or attei their

facia ees.

strtEgy 4:

DDrEssing nks rM wrEnEss

t tEchnic ssistncE

vestors a faci istittios base their

faci ecisio o the expectatio that the

ivestet wi bri abot rear icoes.

heir evaatio o ms perorace is oe

prey o the basis o ecooic risk. te theyhave very iite kowee o erstai

eviroeta risk a ack the iaostic toos

to evaate ms oa reqests or resorce

efciecy a ceaer aactri projects.

Fiaci istittios have reat potetia to

iprove their risk aaeet systes a

processes with rears to m s eviroeta

projects. most ote observe approach ao

the H-sia projects has bee the expaa-

tio o the bsiess case o resorce a eery

efciecy to baks.

strtEgy 5:

Ening invEstMEnt inkgEs

o proote ivestets ivestors reqire ore

ioratio abot taret ms. H-sia

projects take varios steps to eabe co-

icatio betwee ms a faciers. ty

tors or ivestors a atchaki evets

were ietife as the ost coo activities.



8/398

he chaee o etti access to face or

reei ms operatios iht be e to both

ea- a sppy-sie actors. H-siaprojects reviewe or the sty have showe

that ay o the ca be aresse as part o

the o-oi H-sia Prorae. How-

ever, there are sti tappe opportities

reaii:

sale-p ee ed le ad ba loa

reit faci sotios with a cosieratio

o eviroeta, socia a overace criteria

ao traitioa facia etrics are sti sa

i size. ve deveopet Fiaci stittios

(dFs) that have a aate to provie face

to the private sector or ivestets that pro-

ote eveopet have ot yet strateicay

aistreae sstaiabiity isses ito their

operatios. here is sti a ot o potetia or

iterati sstaiabiity isses ito the bak-

i operatios ro procreet to creit risk

assesset.

mpa e o lreit faci sotios are ti ow the ost

reqety observe cateory o sotios cov-

ere by the H-sia projects. Bt what

abot other faci istrets that co

be reevat or reei o ms? ther cateo-

ries especiay ipact ivestet piar eserve

attetio as it oers exceet opportities or

scai-p sstaiabe cosptio a pro-

ctio. pact ivesti sotios cocetrate

o copaies, whose priary oa is eiveri

socia a eviroeta oo, whist aso e-

iveri copetitive arket retrs.

impoe dead ad fomao

proveet o ms erstai behi

resorce efciecy opportities a their

reach-ot to ioratio o avaiabe s sti

reais to be both a bi chaee a a reat

opportity. itia avice o reci iora-

tio efcits abot resorce savi optios a

etaie costi o resorce savi eas-

res a ivestet optios are essetia. hese

services ca be ice as techica assistace

or via costi copoets i specia m

s.

sppo mao odo eeded

t the icro eve, worki o the opportities

behi sppy a ea sie o faci is

essetia bt it is ot sfciet. utiizatio or

creatio o spporti acro eve coitios is

aso eee. Havi spporti poicy oas aeviroet proraes i pace iisptaby

cotribtes to eective se o ree s or

ms. For exape, dFs ici eveopet

baks a oca eveopet aecies ee

to eveop iovative faci sotios i

respose to the eveopet oas set at the

atioa a reioa eve. atioa eve-

opet pas o ake reerece to oas or

faci o cea techooies a/or eabi

ree m faci, the eveopet baks

wo esi a ipeet reevat faci

procts to serve these oas.



9/399

intrDuctin

sms pay a ajor part i ree ecooic

eveopet, above a i eeri ar-

kets. Fiacia resorces iht be key

or their aoptio o eviroetay riey

practices a techooies. hereore, access to

face (2F) has becoe a iportat topic

o the iteratioa eveopet aea. 2F

or sa a ei-size eterprises (ms)

say ecopasses the avaiabiity, accessi-biity, aorabiity a eective istribtio o

facia services.

he H-sia prorae recoises that

eabi 2F ca catayse the ptake o P

practices i reater bers across sia. Havi

face avaiabe ca aow a aster a wier

repicatio o resorce-efciet sotios that

have a positive cost beeft ratio.

his sty coects essos eare ro the

H-sia projects operati ri 2012

that ha activities ike to 2F. he H-

sia network Faciity cocte extesive esk

research a iterviews with the projects, be-

efciaries, facia istittios, a poicy-ak-

ers i orer to raw ot the essos. his ior-

atio wi provie crret a tre project

eveopers with erichi ioratio a tips

o how to iprove the ipact o projects by

icorporati ore eective 2F which, i tr,

ehaces project activities.

he specifc objectives o this theatic sty are:

o ather a overview o faci ees oms especiay those tarete by the

H-sia prorae;

o provie a overview o facia sotios

or ms;

o aayse the ap betwee facia ees

a facia sotios; a

o coect a copie iitia essos eare

a sotios to facia chaees as

ipeete by H-sia projects.

he sty is ivie ito fve chapters. he frst

chapter hihihts the reevace o ree f-

ace or sstaiabe eveopet. he seco

chapter ooks at 2F ro the perspectives o

ms o oe ha, a ro baks o the other

ha. t expais the areas where m access to

ree face bris abot positive ecooic,

eviroeta a socia ipact a why it is

iportat to joi has i orer to eabe it.

his chapter aso provies a overview rear-

i the facia ees o ms a the fa-cia sotios avaiabe to the. Base o the

overview, the chapter characterises a isatch

betwee ea a sppy. he thir chapter

o the sty eas with the strateies that the

H-sia projects are epoyi to aress

2F. t hits at approaches a ethos se

by seecte projects to eae with facia

istittios a poicy-akers ro the fa-

cia sector. the fa chapter, iitia essos

are presete a opportities ietife or

the H-sia prorae i the area o ea-

bi 2F.

1



10/3910

Access to finAnce

A driver for economic

development

SMEs play a major role in the economic andsocial development of emerging markets. In

society, they are an important source of employ-

ment and income generation for low-income

groups. The economic relevance of SMEs is even

greater when informal businesses are taken into

account.

Studies indicate that the role of SMEs in an

economy appears to increase with a countrys

average income level. This might indicate that

SMEs are themselves a driver of economic

growth1. In Asia, many SMEs are part of localand global supply chains. Improving their per-

formance, as well as that of local entrepreneurs,

can help increase business, and employment. As

such, SMEs access to nancial services is a cru-

cial factor for economic development. Adopting,

and investing in, up-to-date and resource-ef-

cient technologies requires nancial resources

but nancing SMEs is risky for banks and other

nancial institutions.

Especially in emerging markets, access to nan-

cial services for SMEs frequently remains a chal-

lenge. According to the World Bank Enterprise

Survey, SMEs in developing countries are more

likely to report constraints in accessing nance

than SMEs in developed countries2 (see Figure 1).

From the bankers perspective, SMEs remain vul-nerable, with evident weaknesses. Their size can

limit their market approach. A small number of

staff might mean limited management capac-

ity. With limited resources, SMEs lack the ability

to expand their capacity. They face tough com-

petition especially from larger enterprises that

might be able to offer better deals due to their

lower production costs. Financial institutions

and investors who offer debt nancing, equity

nancing, leasing and factoring instruments are

mainly interested in doing business with SMEsthat can deliver transparent accounts and show

operational and market consistency to lower

the risk of defaulting of loans.

Figure 1: Percentage of firms viewing access to finance as a major obstacle by firm size and country income group

(Source: World Bank Enterprise Surveys 2006-2009)

Note: The Enterprise Surveys defne small frms as having ewer than 20 employees and medium-sized frms as having

between 20 and 100 employees. Data are or the most recent year available or each country, ranging rom 2003 to

2009. Statistics by country income group are simple averages o the countries in each group.

45

40

35

30

2520

15

10

5

0

Percent(%

)

Low Income Middle Income High Income

Small (


11/3911

inncing nEEDs sMEs

e o the streths o ms ies i their abiity

to respo qicky to opportities a to o-

er ew oos a services as arkets chae.

Bt to prae their processes, to expa a

iovate, they ee access to facia serv-ices (creit, israce, payet aciities), a to

have a heathy cash ow (access to bak creit,

aratees, vetre capita, easi, trae creit,

etc.).

i e o-em, sME eqe o apal

to cover the aiy proctio a aiistra-

tio costs associate with ri the bsiess,

or exape payro, ret, a copeetary

services or proctio processes sch as water

a eery. ree approach or eabi ac-

cess to the ecessary face co be i theprovisio o face or eviroetay riey

raw aterias, or i capacity bii or sta i

ceaer proctio practices.

i e medm-em, sME eed ae o ade-

qae a fo eqpme ad mae

inncing sutins

or its prchase, aiteace a repair.

looki at eviroeta perorace, access

to ree face co ea to ivestet i ef-

ciet eqipet a services as we as i cea

techooies so the ms ca stay copetitive

i the ei ter.

Fiay, lo-em a pmal efeo mae expao. For istace, a eterprise

iht wat to expa its aciities to icrease its

proctio voe, or to ope ew sbsiiaries

i other reios becase o the attractiveess

o ew arket opportities. hs, facia

resorces are eee to efciety prae ex-

isti aciities. ypicay, the aite o sch

ivestets is hih a the retrs, i ost

cases, o-ter. Fro a sstaiabe proctio

perspective, o-ter ree faci iht

ea scai-p the ree bsiess oe it-se to other reios or sectors.

ith this pictre o tepora facia ees

i i, it is se to exaie what sitabe

facia istrets (procts a services)

iht be avaiabe i sia arkets.

1.2

1.3


Fiaci istrets ca be ivie ito six

broa cateories accori to the short-, ie-

a o-ter facia ees o ms (ee

Fire 2):

debt faci: coercia oas,

cocessioa oas, icrocreit;

qity faci: private eqity, vetre

capita, ezzaie face;

stittioa i: pbic rats, tax

icetives, oa aratees; ther facia istrets: easi,

actori;

aiore facia istrets or eery

a resorce efciecy: arraeets with

the eery a service copaies (s)

(ro s itera s or by the cstoer,

or by a thir party i), carbo face

sch as throh the ea deveopet

mechais (dm), a

pporti o-facia services

(e.. capacity-bii o facia services).

Bak faci eeray reais the ost i-

portat sorce o extera face to ms. debt

faci coprises ei activities to ms,

where the m sis a cotract with a bak to

receive a certai aot o oey with the

coproise o payi the borrowe aot

back to the bak with aitioa arket iterest

rates or the tie spa o the cotract. he ie

spa ca be short-, ie-, or o-ter. debt

faci ices a variety o types o oas.

oercia oas say ea coatera,

sch as a specifc property to be pee as a

secrity or the repayet o the oa. oces-sioa oas are sbsiise by pbic creit ies

kow as pbic or sot oas or rats, which

rece the cost o iterest. micro-creits are

sa-scae oas or icro-eterprises. ms

iht avor icro-oas sice icro-eers

o ot ecessariy reqire physica coatera.

the case o eqity faci, private eqity

is capita provie by private a/or istittioa

ivestors who asse a owership stake i a

rowi m or a iite perio o tie (co-

oy 5 to 10 years). qity faci ices

private eqity ivestets, vetre capita a


12/3912SWITCH-Asia | ENGAGING WITH fINANCING INSTITuTINS f GEENING SmES

Figure 2:

The spectrum

of financing

solutions for

SMEs

Financing

Solutions

Debt

financing

Spporting non-

nancial services

Eqity

financing

Tailored nancial

instrents

Instittional

fnding

Leasing,

factoring

for exaple: eceivables anageent

to iprove short-tercash ows o SmEs

Contracts between twoparties where the lessonprovides an asset orsage to another party

or a period o tie, inretrn or specied

payents

for exaple: Pblic grants Tax incentives Loan garantees

for exaple: Coercial loans Consessional loans micro-credits

for exaple: Private eqity Ventre capital mezzanine capital

for exaple: Capacity bilding oninancial literacy

for exaple: Arrangeent withEnergy and ServiceCopanies (ESCs)(ro its internal ndsor by the coster, or bya third party nding

Carbon finance (CDm)

ezzaie capita. Vetre capita is a o-ter

faci istret everae by aaeet

a bsiess eveopet spport (icba-

tio) to iste, iovative, a potetiay

hih rowth eterprises i a eary eveopet

stae. vestets are characterise by a hih

risk o aire bt, i tr, eqay hih rates o

retr. mezzaie capita cobies characteris-

tics o ebt a eqity faci. he ierece

is that ivestors are ot rate owership i

the m. mezzaie oas are say o shorter

ratio a are ore expesive or ms.

stittioa i ices pbic rats,

tax icetives, a oa aratees. grats are

facia cotribtios provie by overets,eveopet facia istittios, iteratioa

eveopet oraisatios a oatios.

grats ca be provie or ay prpose that the

rator a the ratee aree o. ax icetives

ici tax ectio a tax rectios seek

to ive specia coitios to ms or specifc

prposes, or exape, to proote P practices.

oa aratee is a facia proct avaiabe

to ms or a chare as a partia sbstitte or

coatera a track recors. he arator wi,

y or party, asse the ebtors oa obia-

tio i the case o eat a this provies se-

crity to the bak. ther facia istrets

ice actori a easi. Factori is a or

o receivabes face whereby a bsiess ses,

or assis its accot receivabes (i.e. ivoices)

to a face copay (cae a actor) at a is-

cot, i exchae or ieiate oey with

which to face cotie bsiess. Factori

iers ro a oa i three ai ways. Firsty, the

ephasis is o the qaity o the receivabes a

ot oy o the ms creit worthiess. eco-

y, actori is ot a oa it is a avace o a

ms otstai ivoices. hiry, a bak oa

ivoves two parties whereas actori ivoves

three (borrower byer- actor).

likewise, easi appears as a iportatcopeetary sorce o ivestet face,

especiay i cotries where the coatera re-

ie a the ioratio irastrctre are

weak. leasi is broay efe as a cotract be-

twee two parties where oe party (the essor)

provies a asset (achiery, eqipet, vehi-

ces, a/or property) or sae to aother party

(the essee) or a specife perio o tie, i re-

tr or specife payets. leasi is base o

the propositio that profts are eare throh

the se o assets, rather tha ro their ower-

ship. t ocses o the essees abiity to eerate


13/3913

Figure 3: Figure 3: Availabilit of green financing solutions along different maturit stages of a SME

Sorce: http://ec.eropa.e/enterprise/policies/nance/nancing-environent/index_en.ht

Risk Capital Loan Finance+

+SmE developent stage

SmErevenue

Pre-seed phase Seed phase Start-up phase Emerging Growth Development

faily & friendsBsiness Angels

Seed & Early StageVentre Capital fnds

Bank Loans & Garantees

foral Ventre Capital fnds

Pblic Stock markets

Most availabilit

of green SME financing


cash ow ro bsiess operatios to service

the ease payet, rather tha o the baace

sheet or past creit history.

s oer taiore facia services. hese

are private copaies with techica expertise

which assess, esi, a ipeet eery ef-

ciet sotios or pbic a private ciets. de-pei o the s bsiess oe, they ay

face (share savis) or assist i arrai

faci (aratee savis) or the iprove

operatio o a ciets eery syste. ost

cases, the reeratio o the epes o

the aot o savis that their iproveets

are abe to eerate or the cstoer. he ik-

ae o perorace a payet is cooy

efe as perorace cotracti.

aiore facia services aso ice car-

bo face. arbo face provies a iopportity that heps to rece potio a

reehose as (gHg) eissios by ivesti i

reewabe eery or eery efciecy iprove-

ets. arbo projects have becoe icreas-

iy iportat sice the ipeetatio o the

ea deveopet mechais (dm) er the

Kyoto Protoco. he dm ecoraes eery co-

servatio a the aoptio o reewabe eery

by issi certifcates or verife a recore

eissios rectios (certife eissios rec-

tios) that ca be so to overets, are-

scae copaies a carbo s to eet project

ivestet costs or to ehace project revees.

pporti o-facia services ca be

essetia or iprovi access to face. net-

works, or exape, hep to f a ersta

sotios by eai ieret ebers iiscssios a ecorai the exchae o

experieces, both sccess a sccess.

ooperatio betwee etwork ebers is es-

setia or sstaiabe eari. his ices

techooy iovatio, which is ostere by the

coi toether o experts a ieret stake-

hoers ro isie a otsie the etwork.

xperiece ro H-sia, a other,

projects has cofre that i sia both creit

a eqity faci sotios are avaiabe, at

varios staes o atrity o ms, a i re-spose to their particar faci ees (see

Fire 3). he it coes to ree s, these

are aiy avaiabe as bak oas or cea eer-

y or eery efciecy sotios. Vetre capita

a start-p s are aso eteri the arket

a awaiti etrepreers, who ike to ake

a ipact throh faci resorce efciet

procts a services. he fre shows that,

especiay i the eary staes o bsiess eve-

opet, access to face reais a chaee.


14/3914

thE inncing gP

here is sti a isatch betwee the ea

a the sppy or face, especiay ree

face; a severa actors are at pay i eve-

opi cotries, which ake it ifct or ms

to access it. s ca be see i Fire 4, these ac-tors ca be cassife ito two ai cateories:

sppy-sie a ea-sie. aki a aciitat-

i roe, H-sia projects try to aress oe

or ore o these isses.

thE DEMnD siDE wht rriErs

cE sMEs?

a of aal lea

ms with iite aiistrative capacity ote

o ot keep facia recors a ay have o

so accoti syste. hey ack capacity or

pai a beti their operatios. his is

very coo i ms tarete by the H-

sia prorae. ve the H-sia projects

that are ot irecty aressi the isse o

access to face report sch shortcois.

For exape, the project Jte: An Eco-friendly

Alternative or a Sstainable ftre in Bangla-

desh, reporte that ost ms tarete by the

project say they ack access to face. Bt whe

aaysi their sitatio, the project o that

ms ack kowee o costi a prici.

he project saw a ee to frst strethe fa-

cia iteracy a bsiess pai. ith sch

capacity, it the becoes easibe or ms to

access bak oas. other project, Encoraging

and Ipleenting Sstainable Prodction and

Consption o Eco-friendly Batik in Indonesia

and malaysia, aso cosiers that capacity o

1.4

The demand side

What are the barriers aced

by SmEs?

The suppl side

What are the barriers aced

by nancing instittions?

Lack o nancial literacy

Lack o nancial transparency

Services o nancing instittions

perceived too costly

Poor arketing and

conication by nancial

instittions

SmEs lack collateral

Banks reqire SmEs transparency

Lack o eective channels and

odalities or conication

with credit providers or nding

prposes

Banks do not consider SmE

lending as protable bsinessSWITCH-Asias role

Addressing the legal raework

or A2f

Prooting nancial soltions

Increasing capacity o SmEs to

access nance

Addressing banks ro awareness

to technical assistance

Enabling investent linkages

Figure 4: The role of the SWITCH-Asia Programme in addressing demand and suppl side barriers



15/3915

costi a prici is essetia or a ms pro-

itabe operatio. he project oers sch sessios

or tarete ms i its arketi copoet.

maaysia, the Sstainable Prodction o the

Bioass Indstries in malaysia: ptiising Eco-

noic Potential and moving Towards Higher Val-

e Chain (Bioass-SP) project fs that ost otheir tarete ms o ot keep proper recors

a ack a so aaeet syste.

a of aal apae

sia, a proprietor, or her or his aiy, say

operates oe icro-eterprise. he SmAT Ceb

project o that ote a etrepreer o a

tarete m tee to ake itte istictio

betwee the faces reate to their bsi-

ess activities a those o their ow persoa

hoseho trasactios. oe ms operate othe basis o two books, so that profts are re-

cacate owwars to evae taxes. However,

whe these ms appy or a oa o the basis o

their acta bsiess (i.e. profts) their oa ap-

picatio oes ot atch their facia recors.

ch aaeet a o-trasparet

practices have e to ms bei see as risky

borrowers a aki the ess appeai to

eers.

see of a o ae peeed

a oo ol

te facia istittios oer oas oy at

hih ees or iterest rates. ms are ote ot

abe or wii to pay sch hih ees. For ms

i Vieta, or exape, the iterest rates or

a bak oa reach 15%. ter iterest rates, the

ms ee to cover the costs or easibiity st-

ies a trasactio costs chare by the baks.

utiatey, facia services o at the bak

are perceive to be too cbersoe a tootie-cosi by ms.

Poo mae ad ommao b a-

al o

Poor arketi a ieective coicatio

betwee baks a etrepreers are ajor ob-

staces or ms seeki bak face. his is the

case i Pakista where the H-sia project,

Sstainable and Cleaner Prodction in the man-

actring Indstries o Pakistan (SCI-PAK), o

that ms ack ioratio o the beefts a

coitios o a baks facia sotios.

thE suPPy siDE wht rriErs

cE inncing institutins?

sME la ollaeal

he baks rat oas or creit, their eci-

sios are osty base o the avaiabiity o

fxe assets as coatera. may ms caot

provie coatera as they caot ispose oeqipet, achiery, or a. Freqety,

baks o ot accept a persoa arator ike

ay icro-faci istittios o. ms i

the H-sia project SmEs or Environental

Accontability, esponsibility and Transparency

(SmAT Ceb) ote ser ro bak eas

or coatera. hey iht ask or hih aots

o coatera, 150% or ore o the oa vae.

he SmAT Ceb etrepreers cosier sch

eas too striet. hereore, these baks

with sch physica coatera reqireets wiot accept the ms as ciets, a the ms

caot access face ro the baks.

a eqe sME apae

most facia istittios a baks ack i-

oratio o ms a their ikey cash ows

or creit histories. he baks the obt the

ms capacity to repay a oa. hey aso reqire

facia stateets a recors bt sch oc-

etatio is aso reqety acki. he a-

jority o sa a icro-eterprises tarete

by H-sia projects, a reviewe i this

report, ack corporate overace, a this is a

ajor hre or the baks.

a of effee ael ad modale fo

ommao ed pode fo

fd ppoe

ms are ote ot aware o facia sotios

provie by the baks, especiay i the area o

ree face, or o the proceres to oowto ai access to face. his co be the case

o a o-trasparet baki syste as the

H-sia project mainstreaing Energy E-

ciency throgh Bsiness Innovation Spport

Vietna (mEET-BIS) reports. he H-sia

project Sstainable and Cleaner Prodction in

the manactring Indstries o Pakistan (SCI-

PAK) o that baks o ot have the capacity

to eae a ior ms o accessibe fa-

cia sotios, or o they have the kowee

or assessi ceaer proctio ivestets.



16/3916

a do o ode sME led a poable

be

de to their size ms are ote oy ooki or

a sa ivestet bt baks o ot f sch

sa trasactios proftabe. Hih operati

costs or m ei a cotract eorce-

et reai a obstace eve at ow eatrates. he mEET-BIS project i Vieta o

that baks are ote ot itereste i servi

m ciets eei sa oas to boost P or

eery efciecy. aer copaies i Vieta

that wat to ivest i eery efciecy p-

raes, sch as a u$ 15,000 soar water heater

syste, have ore ifcties fi a bak

that faces sch ivestet. By tareti

the facia ees o arer eterprises, baks

te to o better bsiess tha by aressi

ms. may facia istittios across sia oot ake eoh proft with ms as their soe,

or ajor, ebt cietee, espite chari a pre-

i o the iterest becase o the hih risk

a trasactio cost.

med ompeo fo aloed ee

ae sME

s arer copaies a their ees or i-

vestet oer better bsiess, ost facia

istittios o ot oer taior-ae services

or ms. de to the ow eree o copetitio

ao baks or m ciets, there is a shortae

o iovative facia procts aressi the

ees o ms.

a ode sME led

loas respoi to facia reqests ro

ms are ote cosiere hih risk by the baks.

he weak capacity iheret i ms or raw-

i p bsiess pas a eveopi bsiess

projectios ea that baks f it ifct to

assess proftabiity a, at the sae tie, coace a icrease facia risk as a eer i

case o eat. he SmAT Ceb project beieves

that baks o ot y ersta the eviro-

et srroi m ei. hey aso o ot

appear to have appropriate toos to hep the

assess the risk o ei to ms or particar

ivestets, sch as ceaer proctio eas-

res. he H-sia Bioass-SPproject sees a

probe with the capacity o baks. maaysia

a Vieta, the project o that the baks

ack reevat skis to evaate ew, ree bsi-ess ieas especiay i the coerciaisatio

o bioass. Bakers are ot aiiar with the

ree techooy arket copare with a-

tre arket procts sch as ortae oas.

here creit evaators o ot ersta the

bioass bsiess, they are ikey to cosier

ei as hih risk.

Fiaci probes ace by ms are e to

both ea a sppy actors. hese ac-

tors ca be aresse by the H-sia

prorae as istrate by the oowi case

sties.



17/3917

the m face ap is the otcoe o a

isparity betwee the ees o the ms

a the sppy o facia stittios.

rrety, a ber o H-sia projects are

worki towars cosi the ap. heir activities

ca be cateorize i the oowi strateies:

strtEgy 1: ressi the abiviroet or ccess to Fiace

strtEgy 2: Prooti Fiacia otios

strtEgy 3: creasi apacity o ms

to ccess Fiace

strtEgy 4: ressi Baks ro

wareess to echica ssistace

strtEgy 5: abi vestet likaes

which strtEgiEs nD ts D

switch-si PrEcts iMPEMEnt

t csE thE inncE gP?2Table 2: SWITCH-Asia projects activities aiming at enabling access to finance for sustainable production in SMEs

Strateg

Project

SMART Cebu

Biomass-SP

Eco-friendl

Bamboo

SCI-PAK

MEET-BIS

Green Philippines

Islands

China MotorChallenge


3 4 521Addressing the

Legal Framework

for Access to Finance

Policy recoendationsor a Bioass ActionPlan incldingeconoic instrents

Policy recoendationsor enabling SmEsaccess to nance;mlti-stakeholderdialoges

Increasing Capacit of

SMEs to Access Finance

Providing nancialliteracy to the eberso the Bms and indi-

vidal coaching

Individal coaching orCDm project develop-ent; EntreprenersNrtring Prograe(EumBENP)

Assisting to prepareInvestent Plans

Awareness Session withBms

Cooperation withESCs

Addressing Banks

from Awareness to

Technical Assistance

SCP Awareness orbanks (advocacy, stdytors, workshops)

Awareness on resorceand energy eciency

Bilding relationshipwith banks, edcingtransactions cost orbanks

Inclsion o bank intotraining prograe

Enabling Investment

Linkages

match-making byjoint ora

match-making onlineand oine plators

match-making:Investors Stdy Tor,Bsiness Directories

ond Table

Instittionalpartnership witha SmE bank

Promoting

Financial Services

Awareness raisingaong SmEs on nan-cial options available

Prootion o Greenfnds, Prootion oCDm

Prootion o CDm

market-scan o nancialinstittions/soltionsand integration o theino and nancial insti-ttion representativesto the trainings, exhibi-tions; feasibility Stdy

or ESC developent

Envisioned trainingpackage on nancialsoltions

Cooperation withESCs


18/3918

strtEgy 1

DDrEssing thE Ening

EnvirnMEnt r ccEss

t inncE

he reatory raework pays a critica roe

i iprovi the face ascape or ms.

oo ea raework a facia irastrc-

tre ca set the ecessary pre-coitios or

eabi ms to access face.

Eablme of aal meam

ed fo sME

he H-sia project Sstainable and Clean-

er Prodction in the manactring Indstries o

Pakistan (SCI-Pak) sets a ocs o the eabipoicy eviroet or prooti sstaiabe

Proctio i the textie a taery sector

i Pakista. he SCI-Pak project cocte a

assesset sty to ietiy potetia oppor-

tities to iprove existi poicies er the

raework o P. he sty presete the ex-

isti eisatio a ietife opportity ar-

eas that co beeft ost ro iproveets

o the oa o icreasi sstaiabe proctio

with a ocs o resorce efciecy i ms.

Fro their aaysis the SCI-Pak project coc-

e there are a reat ber o opportities i

the poicy area icreasi access to face that

wo beeft ms to iprove their proctio

towars sstaiabe proctio. new facia

echaiss or m ipeetatio o ef-

ciecy easres sho be estabishe. ptios

ice vetre capita i or start-ps,

trasparet a copetitive &d rats shobe provie a ivoice base faci, where

borrowers provie accepte ivoices (or receiva-

bes) as coatera to the coercia bak, that

co be proote by the tate Bak as a a-

terative to coatera base ei (natioa

stria Poicy, 2010).

the sty, it was seste that ew f-

acia echaiss or ms ertaki the

efciecy easres sho be estabishe. c-

cori to the project parters, perorace

cotracti is aother aterative to prooteeery a resorce efciecy i Pakista. his

wo eabe risk shari betwee the cotrac-

tor, the bak, a ms ipeeti iova-

tive sstaiabiity vetres. aitio, m

faci sho be icorporate ito the -

a reit Pa o the tate Bak o Pakista.

Proraes or creit aratee a creit i-

srace aecies co provie the icetives as

we as risk coverae or baks sho be estab-

ishe. Fiacia istittios sho be spport-

e i esii a achi istry base

prora-ei schees (m Poicy, 2007).

2.1



19/3919

other cocsio was that

a wae sbsiy prorae

sho be estabishe to sp-

port o the oor traii o

workers. Firs sho pay, or

istace, sevety percet o

the ii wae to theworker with the reaii

thirty per cet bei pai by a

overet cotribtio pay-

abe throh a traii orai-

satio irecty to the worker.

itioay, eai frs

sho sposor a traii it

withi a pbic sector istitte, where traiees

ca be traie specifcay o their achies

a accori to their reqireets a sta-

ars (natioa stria Poicy, 2010).he assesset sty was se as back-

ro or a orietatio sessio or poicy

akers o the Poicy Fraework or staiabe

Proctio (P) i Pakista. ith the orietatio

sessio, the project soht to eveop a ae-

a or the scceei poicy iaoe ao

ieret stakehoers ro overet, ms,

Bsiess ssociatios, Fiacia stittios a

qipet maactrers. miistry o natioa

disaster maaeet aree to host a to

ea the sbseqet activities i poicy area.

Pol ieeo a Eoom ime

he project Sstainable Prodction (SP) o the

Bioass Indstries in malaysia: ptiising Eco-

noic Potential and moving Towards Higher

Vale Chain (Bioass-SP) ais to eveop the

bioass istry base o the pricipe o

sstaiabe cosptio & proctio (P).

maaysia has a abace o bioass avai-

abe a its potetia or coerciaisatio

reais tappe. he project itervees withreater arket access a ree sppy chai

opportities ro the u. he project stratey

ices the eveopet a appicatio o

eective ecooic istrets that ehace

P.

Base o ipts ro ti-stakehoers, the

Bioass-SP project evisios eveopi poicy

recoeatios or a Bioass ctio Pa.

cocrete easre co ice reevat eco-

oic istrets to proote the coercia-

isatio o bioass. ch istrets wi hep

poicy akers to iprove crret raete

overet eorts i spporti the eveop-

et o aactri o eco-riey procts,

bioass techooies a resorce efciecy

i maaysia. o eveop sch istrets the

project evisios cocti workshops which

iscss the se o ecooic istrets i -

rope aressi bioass is-

ses. Participats wi aayse

case sties o the sccessse o ecooic istrets

aressi bioass a ie-

tiy proisi se o ecooic

istrets i maaysia. hese

activities were sti at the pa-

i stae whe this sty

was writte so esso eare

wi be obtaie i 2013.



20/3920

strtEgy 2

PrMting innci

sErvicEs

Baks ee to provie ioratio o the ters

a coitios o their facia services toms. he avaiabiity a accessibiity o sch

ioratio provies the basis or iteractio

betwee baks a ms. o icrease avaiabi-

ity a accessibiity o ioratio o facia

procts ost H-sia projects that are

crrety aressi the topic access to face

are ici the topic i raisi awareess ac-

tivities. depei o the project, teas icor-

porate ioratio o facia optios i roa

shows, awareess ors or workshops.

rD shws crEtE wrEnEss

in Mysi

t the heart o the Bioass-SPproject is a co-

pietary traii to strethe ms fa-

cia, techica a eviroeta copiace

capacities to icrease export copetitiveess

o bioass procts, services a techooies.

its frst year, the project cocts a series o

roa shows to raise awareess o the potetia

o coerciaisatio o bioass ao h-

res o ms. Fiacia sotios or icreas-

i bioass bsiess were aways part o the

aea o the roa shows as accori to the

projects aaysis access to face is a crcia

botteeck or the ms.dri the oa hows the project presets

the avaiabe i echais. Fiacia i-

stittios preset their avaiabe faci as-

sistace or existi aactri bioass

copaies, especiay throh the aciity o sot

oas, or creit aratee. he project hihiht-

e that bio-base copaies are aso expose

to icetives oere as we as vetre capita

opportities.

he Bioass-SP project aso provies ms

with a overview o i opportities o-ere by the maaysia goveret ecies.

he project aso provies ioratio o the

varios i optios a rat schees by

iistries er ieret aecies, a aso

ethoooy to tap these opportities i ie

with the 10th maaysia Pa. he project seeks to

ivite miistry o ciece, echooy & ova-

tio (m) / miistry o rictres (mo),

2.2

Figure 5: Biomass-SP project interventions aiming to enable access to finance for SMEs

Assumptions

Strateg 1: aise awareness

o bioass SmEs

Strateg 2: Link SmEs wit &D

Strateg 3:Address banks and

nancial instittions

Strateg 4: Enable access to

nance by coaching SmEs

Strateg 5: Linking SmEs to

Eu Spply Chains

Inoration on pricing

and arket is accessible

and available

SmEs are aware and

know how to apply or

access to nance

Access to nance or

bioass ventres isaccessible and available

SmEs access private

nds

Local bioass &D

is coercialised

SmEs access

Governent nds

and grants

SmEs innovate with

local esearch and

Developent knowledge

Bsiness odels or bioass

ventres are developed

Pblicity on deo projects inedia and internet



21/3921

deveopet orporatio (md)s coer-

ciaisatio o & d s, rae F 500, ma-

aysia lie ciece F (V F), maaysia debtVetres Bh (ebt faci base o project

a o-coatera approach), gree echooy

Fiaci chee (sot oa or ree techo-

oy projects), m Baks (sot oa or ms e-

veopet), rats oere by Biotechorp or

biotech projects stats to preset their facia

sotios.

ith the seve wareess oa how ei-

ar, the project aae to reach ot to ore

tha 800 stakehoers ivove i the bioass

sppy chai. Besies isseiati project i-

oratio, the prpose o this otreach exercise

is to proote their traii prorae ao

bioass ms. he Bioass-SP project seects

a coaches 50 ms to iprove the bsiess

a eviroeta perorace with varios

capacity bii proraes a avisory

avice. o the coachi services oere

are: access to overet rats, sot oas, i-

vestet icetives, vetre capita, a other

project faci echaiss (or ore ior-atio see tratey 3).

in-sEssins n thE cEn DEvEPMEnt

MEchnisM in Pkistn

so the H-sia project Sstainable and

Cleaner Prodction in the anactring inds-

tries o Pakistan (SCI-Pak) prootes facia

sotios. he SCI-Pak project oraize three

workshops to itroce bsiess a istria

represetatives to the opportities o opt-

i or ea deveopet mechais (dm).

he dm is a arraeet er the Kyoto

Protoco which aows istriaize cotries

with a reehose as rectio coitet

to ivest i iitiatives that esse eissios i

eveopi cotries as a aterative to ore

costy eissio rectio easre. Pakista is

ai behi the eveopi wor to captre

the carbo arket. Pakista has oy 9 projectsthat have bee reistere by the dm exective

boar whie this ber or hia a ia is

969 a 534 respectivey. Pakista has oy 26

projects i pipeie or dm whie the sae

ber or hia a ia is 2,536 a 1,825

respectivey. hereore, there is a ee to catch

p with the wor. his sceario reects the ack

o awareess abot dm a scarcity o fa-

cia icetives. eak istittioa capacity a

a o project cyce are the reasos that have

hiere the dm peetratio i oca istry.o ior ms ike to the project abot dm,

the SCI-Pak project presete case sties o i-

eret dm projects i extie a aery sec-

tors i ia. he workshops itroce techi-

ca presetatio o writi the Project desi

docet (Pdd), which is the ost iportat

part o the dm process. t was hihihte that

Project desi docet serves as the basis

or the dm project evaatio by the dm ex-

ective boar. qaity Pdd wi esre sooth

vaiatio, positive vaiatio report, qick reis-

tratio o the project with dm exective boar

a o tie copetio o verifcatio a iss-

ace o s by the dm exective boar.

nEtwrk t incrEsE ccEss t

inrMtin n innci sutins

o proote facia sotios, the SCI-Pak

project evisios estabishi a ery a

esorce fciet (&) network to aress

the facia ees o a a mei ter-prises. he ecisio to eveop sch a etwork

was take toether with the tate Bak o Paki-

sta (BP) a coercia baks at a ro ta-

be. he ro tabe coce that the probe

o access to face i Pakista was ot the ack

o facia resorces bt the ack o iteractio

toos a echaiss to cose the sppy a

ea o facia resorces. For that reaso,

the participats wecoe the appropriate o-

et o the ach o the & network.

he parties evisio that & etwork is

base o a web pator that provies ior-



22/3922

atio o reevat & poicy itervetio

a aitioa faci opportities irecty

taiore to ms wii to icrease their eery

a resorce efciecy sho aso be a oa o

the etwork. Fiay, the etwork sho acii-

tate the traser a eveopet o techoo-

ies, which are rety eee to icrease e-

ery a resorce efciecy o ms.

innci sutins s Prt trinings,

wrEnEss PrgrMMEs nD Ehiitins

Vieta, the H-sia project main-

streaing Energy Eciency throgh Bsiness

Innovation Spport (mEET-BIS) prootes e-

ery a water efciecy or ms by biithe arketi a saes capacity o techica

proct sppiers. he project has bit capacity

with the techooy sppiers to serve the m

eery a water efciecy arket throh

arket research, seiars, (booths o) exhibi-

tios, saes traii sessios, workshops a

bsiess cb eetis, attracti ore tha

700 participats so ar. Besies bii capa-

city i the proct sppy chai, mEET-BIS ais

to ehace m access to face or ivest-

et i eery efciecy by worki with oca

facia istittios. hereas the ocs o the

awareess prorae ies o eery efciet

sotios, facia sotios have aso bee

part o the aea. workshops a project

exhibitios the project ivite a represetative

o a oa aratee , a speaker o F a a

represetative o a bak to exchae o fa-

cia services to ehace m access to eery

efciet techooy.

he H-sia project Green Philippines Is-

lands o Sstainability (GPIoS) ais to iiise

the eviroeta ipact o ms i metro ma-

ia a the lBZn reio. he project

cetres o workshops i ceaer proctio a

iivia costi by experiece cost-

ats. he project ais to traser kow-howthroh traii workshops a coachi, co-

bie with a syste o qaity assrace a

oitori. he coercia m bak Paters-

bak is a project parter a a project beef-

ciary at the sae tie. s project beefciary

Patersbak is taki part o the traii a is

eroi ceaer proctio aits toether

with ay other ms ro iverse sectors. s

project parter Patersbak has the vee r-

i the GPIoS traii prorae to proote

their faci prorae to the participati

copaies.

Figure 6: SCI-Pak project strateg on how to create a network to increase access to information on financial solutions

Educational and financial institutes,

government organisations

Consumers / RetailersIEMS(Indstrialeqipent

anactrer)

SMEs

Provide inoration

and knowledge

IEms provide technical

soltions or SmEs

er their prodcts

Increased Energ and Resource Efficienc



23/3923

PrMtin unDs vi EnErgy sErvicE

cMPniEs

For the ree ivestet arket to peror

better, aecies or istittio that have kow-

ee a techica capacity o the techooy

a cost-savi potetia ee to hep ietiy

opportities, cocts cost beeft aaysis oroo easibiity sties. ery service copa-

ies (s) are private copaies with techi-

ca expertise, which assess, esi a ipe-

et eery efciecy iproveets or pbic

a private ciets. heir ai is to iprove the

eery efciecy sotios. next to eveop a

esi eery efciet, s aciitate fac-

i o eery efciecy project.

hia, the H-sia project China mo-

tor Challenge aciitates iproveet o the

operati efciecy o eectric otors i coop-eratio with s. ver 400 ajor istria

sers o eectric otor systes have prae

otors their systes. o ecorae otor ser

to prae to ore efciet otors, the project

iks otor syste sers with s, who ca

sppy kow-how, eqipet a faci to

reaize the prae. ery ervice opaies

(s) are a reativey ew type o ervice o-

pay i hia. rrety severa hre s

are operati cotry-wie, avisi copaies

how to iprove their eery efciecy. he typi-

ca arraeet i hia is that the takes

o a p-rot costs o the eery ait a

eqipet prchase, a is pai a proportio

o the eery savis achieve. his cotract-

i etho is kow as ery Perorace

otracti a eectivey reces the risk or

the cstoer. thoh this provies a cove-

iet echais or otor sers to save eery

a cost, the cocept o services is ew so

that i ay sectors they have yet to ai trst.

By traii a bii capacity o s, the

project China motor Challenge project cotrib-

tes to rther eectricity savis o istria

otor syste sers beyo the irect project

ipacts. Vieta, eery service strctres are sti

eveopi. he law o ery fciecy a

oservatio cae ito eect oy o Jaary

1, 2011. he aw ecoraes the eveopet o

eery coservatio techooy a the pro-

ctio o eery efciet procts, a itro-

ces obiatory abei staars or eery

cosptio o procts he law has aso e-

coraes the eveopet o eery service

copaies (s).

he mEET-BIS project i Vieta tarets tech-ooy sppiers. ber o these techooy

sppiers are itereste i tri ito ery

ervice opaies to provie service so-

tios to ei a are size copaies.

However, ti a stro eery service strc-

tre is eveope, barriers a chaees ee

to overcoe as techooy sppier iht -

erestiate the ctio o a especiay

whe it coes to faci a the facia

risk. For eery service proviers to operate

sccessy i the arket aio skis are

reqire ici: bsiess eveopet a

arketi, eieeri, eery-savis a

process optiizatio techooies, project a

cotract aaeet, facia a accot-

i, as we as oitori a vaiatio. mEET-

BIS is crrety assisti oe o her parter co-

paies with a pre-easibiity sty or a .


Upgrading of

such electric

Motors is

financed b

ESCO.


24/3924

strAtegy 3

increAsing cApAcity of

smes to Access finAnce

To succeed in getting nancial resources, SMEs

need to communicate the business case for SCPto nancial institutions and investors by show-

ing them the competitive advantages of imple-

menting SCP strategies in their operations. Lack

of business knowledge and management ability

can increase nancial barriers for SMEs. Low lev-

els of nancial literacy can prevent SMEs from

adequately assessing and understanding dif-

ferent nancing options. At the same time, the

fact that SMEs accounting records and nancial

statements are often neither clear nor evident.

rAising AwAreness on finAnciAl literAcy

The inadequate level of nancial literacy con-

stitutes a major constraint to the economic

growth of SMEs in developing countries. In this

study nancial literacy generally refers to the

ability to understand nance. This understand-

ing initially includes knowledge to take personal

decision on nance and extends to questions of

corporate governance. Lack of such nancial lit-

eracy often results in poor planning, underesti-

mating market volatility, and/or inadequate ac-

counting, which can lead to nancial losses for

many SMEs. Especially among small and emerg-

ing businesses the deciency of the nancial

literacy is a challenge, while medium and large

enterprises are less likely to struggle with it.

SWITCH-Asia projects can help SMEs over-

come this burden by providing support and/

or capacity building. The capacity building of

SMEs can include providing technical and busi-

ness support services such as training, businessdevelopment services, assistance in formalis-

ing nancial statements, and loan application

preparation. Such services could be potentially

provided by appropriate associations such as

SME development agencies, SME associations,

or chambers of commerce.

In Pakistan, SMEs constitute 90 per cent of

businesses, playing a critical role in the manu-

facturing sector by providing 80 per cent of in-

dustrial employment, constituting about 30% of

GDP, and generating one-fourth of the sectors

export earnings3. Pakistani SMEs lack of access

to nancial resources to support the implemen-

tation of E&RE-oriented strategies and achieve

the appropriate upgrade of environmental-

sound technologies. In order to address SME the

SCI-Pak project developed and disseminated in

July 2011 two workshops on A2F in Karachi and

Feisalabad with Business Member Organisa-tions. Recognizing the fact that Pakistani SMEs

lack capacities for the reliable proper delivery of

information to banks, the project focused the

workshops on to answer the following ques-

tions: How can BMOs support SMEs to deliver

quality and relievable information for nancial

institutions? What are the capacities and tech-

nologies needed to ensure the collection and

preparation of reliable data? The project devel-

oped guiding materials to show business mem-

bership organisation and SMEs how to identifythe best nancial instruments in order to reduce

administrative costs related to the production

process and to develop an effective and quality

nancial reporting through the elaboration of

sustainable-oriented business plans.

The SWITCH-Asia SMART Cebu project aims to

increase the competitiveness and sustainabil-

ity of SMEs in three exporting sectors in Cebu

in Southern, Philippines. In order to increase -

nancial literacy, the project has taken to two tier

strategy. In the rst stage, the project provided

an overview on nancial literacy topic including

corporate governance and operational manage-

ment to the members of the BMOs. In a second

step, the project aims to attend to the actual

nancial needs of the SMEs, which were iden-

tied in the cleaner production audits by the

project. With individual coaching, the project

aims to support companies with their business

plans, their business projection and application

to the banks. The project decided that providingdetailed nancial literacy input at the beginning

of the project would be too abstract and only

confuse the SME partners.

the entrepreneurs nurturing

progrAmme coAching by biomAss-sp

Also the Biomass-SPoffers support to SMEs in

its agship initiatives the Entrepreneurs Nur-

turing Programme (EUMBENP). The project se-

lected 50 small and medium enterprises (SMEs)

to receive complimentary environmental and

business coaching facilities related to biomass

2.3

3 SCI-Pak: Business Industrial Associations fostering the Access to Finances for Energy and Resource EfciencyConceptual Material, accessed under www.sci-pak.org/LinkClick.aspx?fleticket=FOIowy5R2M4%3d&tabid=76


25/3925

sppy a tiisatio activities. he nrtri

Prorae is oe o the core eeets o the

project. he prorae cosists o a series o

ie apacity Bii Proraes (BPs) o

sbjects reevat to bioass coerciaisatio

e.. rat appicatio opportities, ea de-

veopet mechais (dm), carbo ootprit

a sstaiabe cosptio a proctio

(P), ecooic becharki o bioass a

bioass procts, u ree arket access op-

portities a peeti/briqetti techoo-

ies a arket opportities. he BPs have

bee ri parae with um-BnPs coach-

i activities. he project has bee seecti

the ms i a etaie process. next to writte

appicatios the ms ha to ero iterview

processes. he project was abe to ietiy the

type o bioass tiisatio taki pace, the

ms capacity, ocatio a eestock avaiabi-ity, as we as to ietiy the type o assistace

reqire ro Bioass-SP. he project kew

ro the start how the ms aie to eveop

a what ki o facia ivestet were e-

visio. this way, the ms co atte the

eee awareess proraes or coachi o

facia echaiss. s part o the nrtri

Prorae, the Bioass-SP project cocts a

capacity bii prorae or ms to ex-

pose the to faci avees avaiabe or

bioass coerciaisatio. Fro the eort o

costat otreach exercise a awareess o

project brai, Bioass-SP has captre the

attetio o dm ivestors. he project Bioass-

SPoers irect coachi to projects that seek to

tap the ea deveopet mechais (dm).

orer to be eiibe or certifcatio, eissios

rectio projects have to be reistere i a-

vace i the dm desiate natioa thor-

ity. e iportat actor i reaizi carbo

vae is the reqireet o aitioay, which

ipies that the project st eostrate that

it is aitioa to arket activity that wo

have occrre ayway. For bsiesses a ms,

dm oers a aterative eas o revee or

ree projects that ices bioass tiisatio

o reewabe power eeratio, bioas, e-

switchi projects, pa oi i eet (Pm)

ethae captri, as we as bio-coposti

projects. he Bioass-SP project oers a coach-

i prorae or ms who have bsiessieas to expoit the oca bioass resorces. he

coachi is provie at zero cost with expert

costacy services or the eveopet o

dm projects ro Project ea note (Pn) stae

p to Project desi docet (Pdd) stae. he

Bioass-SP project ca aciitate dm project

owers by atchi the with the avaiabe

dm project ivestors, costats a techo-

oy proviers ivovi i co-faci or eqity

participatio o gree Projects. his capacity

bii prorae is ri parae with

um-BnPs coachi activities.

Obstacles identified SMART Cebu actions

SmEs are intiidated by banks.

SmEs lack knowledge o nancial soltions.

SmEs do not know what technical pgrades

are necessary and nder- or overestiate

investents.

SmEs are consed with the dierent nancial

options on oer. Entrepreners tend to opt

or zero interest soltion oered by the local

governent even thogh these options nds

eqipent not reqired.

SmAT Ceb partner ADfIAP condcts eeting and

workshop to prepare dialoge sessions with banks.

SmAT Ceb partner ADfIAP condcted overview o

nancial literacy to the ebers o targeted bsinessebership organisation that are part o the projects.

SmAT Ceb condcts CP adits and provides recoen-

dation to increase environental perorance inclding

the speci-cation o necessary investents.

Based on the technical recoendation ater the CP

adits SmAT Ceb partner ADfIAP provide coaching or

each individal SmEs how to prepare a bsiness plan,

and a application to get a loan or the reqired technical

pgrade.

Table 3:

The actions

identified b

the SWITCH-

Asia project

SMART Cebu

to address the

challenges

that SMEs

have for

access to

finance



26/3926

strtEgy 4

DDrEssing nks

rM wrEnEss t

tEchnic ssistncE

vestors a faci istittios base their

faci ecisio o the expectatio that the

ivestet wi bri abot rear icoes.

heir evaatio o ms perorace is oe

prey o the basis o ecooic risk. te they

have very iite kowee o erstai

eviroeta risk a ack the iaostic toos

to evaate ms oa reqests or resorce e-

fciecy a ceaer aactri projects.

Fiaci istittios have reat potetia to

iprove their risk aaeet systes aprocesses with rears to ms eviroeta

projects.

uiDing rEtins with thE innci

sEctr

he Vietaese facia sector cosists o

abot a hre baks either state-owe,

private or orei bak braches. he sector is

sti ereveope i ters o its service oer-

i to the popatio o Vieta, as we as iters o efciecy a aaeet practices.

he probe that ms i Vieta have i ac-

cessi faci or eery efciecy ivest-

ets see to be siiar to ms i ay other

cotries. difcties ice ack o coatera

a iaeqate facia recors. m face is

ote reerre to as the issi ie i the

facia services arkets i eeri ecoo-

ies.

here are severa eery efciecy creit ies

operatioa i Vieta. Vietaese facia i-stittios sch as echoBak, VietBak a

others have receive capacity bii spport

o eery efciecy face a operate iter-

atioa eery efciecy creit ies extee

by teratioa Fiace ooperatio (F), the

wiss deveopet ooperatio () a

2.4

Obstacles identified MEET-BIS actions

MEEt-is ao

Energy Eciency is beyond their noral bsiness. I the

bsiness as sal scenario oers prots and growth,

there is little incentive or a bank to invest in soething

new. The arket or nancing EE projects perceived as

sall, it is not worthwhile or banks to develop a par-

ticlar nancial prodct. market developent reqires

an p-ront investent, which the coercial banks

were not willing to ake.

Banks preer to lend to state-owned /large enterprises,

SmE lending is not protable becase o high transac-

tion costs

Banks expressed their concern with the qality o

energy ecient installations; how can the bank and the

client be sre that the identied savings are realised?

market research to bild / explain the bsiness case

to the Bank.

Explore possibilities o redcing transaction costs with

a credit scoring tool, or by groping transactions

Spport developent o the Bankss network o energy

adit copanies who can provide a second opinion

Training bank sta on energy eciency eqipent

and related qality standards

Explore possibility o Energy Service Copanies

(ESCs) targeting the SmE segent

Table 4: SWITCH-Asia project MEET-BIS' actionsaiming at enabling access to finance for sustainable production in SMEs



27/3927

others. he mEET-BIS kicke o, eery ef-

ciecy creit ies i Vieta were hihy -

ertiise. the oe ha, reasos or er

perorace ice cear a/or very ex-

tesive appicatio proceres, o perorace

icetive or the Vietaese baks, a iite

capacity i the private sector to eiver tr-keysotios. the other ha, baks abiity to

aeqatey ersta a appraise eery e-

fciecy projects were very iite. Frtherore,

baks preer arer projects tha the saer e-

ery efciecy projects (eery efciecy pro-

ct face) that ms wo ee.

he mEET-BIS project works towars bi-

i reatios a potetiay parterships with

these facia istittios a the oca pri-

vate sector sppy eery efciecy eqipet.

he mEET-BIS experts cotacte baks a ex-chae with the to expore how the project

co cotribte to bii a pipeie o pote-

tia eery efciecy ivestet projects or the

baks. s a seco step, the project cocte

a hih eve workshop i partership with F,

where techooy sppiers ha the chace to

eet with key parter facia istittios.

dri the workshop, Vietaese techooy

sppiers a bak aaeet iscsse the

barriers or ms to access face a toether

ooke or sotios to overcoe the barriers (see

abe 4).

rising wrEnEss n scP

s sias rowi ecooies are ptti pres-sre o atra resorces, baks a other f-

acia istittios sho take the eviro-

eta perorace o ms ito accot whe

they take ivestet ecisios. o icrease the

erstai o facia istittio o P,

severa H-sia projects coct activities

to icrease awareess o baks.

he SmAT Ceb project cosorti ices

the ssociatio o deveopet Fiaci -

stittios i sia a the Pacifc (dFP).

the SmAT Ceb project, dFP is oeri ex-pertise o sstaiabe faci echaiss.

dFP provies spport to ms a avocate

with baks to ree their facia services a

aapt the to the ees o ms. he la-

bak o the Phiippies a the deveopet

Bak o the Phiippies are ebers o dFP:

hroh their ebership i the associatio,

the SmAT Ceb project has areay estabishe

Figure 7: The structure of the SWITCH-Asia SCI-Pak project training targeting financing institutions

gs innci institutins

Adding vale to their shareholders and increasing prots

ne alternative:

Integral Systes or Environental manageent

The bsiness case or E&E

Access to nance (A2f) strategies and instrents

ecognition osstainable-

oriented SmEs as

a bsiness driver

Increase ointernal resorce

and energy

eciency

Integration oenvironental

risks anageent

instrents



28/3928

cotacts a reatioship with the two baks.

he project ietifes these two baks as the e-

try poit ito the arket o facia istittio

i the Phiippies. ccori to the project bothbaks as eveopet baks have a eai roe

i the arket o facia istittio i the Phi-

ippies. he assptio is oce the eveop-

et baks have aapte their services to ree

ms other baks wi oow.

he project bit p cose reatioship with

the two baks. t takes a twoo avocacy stra-

tey: the oe ha, it prootes ersta-

i o the baks o the isse o ms ei.

SmAT Ceb creates awareess with the baks

o ms ifcties rai ro facia

stateet to provii coatera. the other

ha, the otost oa o this avocacy is to

eveop facia toos that are aapte to the

ees o ms.

EPining thE usinEss csE EnErgy

EiciEncy/rEsurcE EiciEncy (EE/rE)

Baks are se to eai with risks as a bak

ei ecisios are say expose to soe

eree o risk. Baks ace the chaee to priceoas accoriy. s i every bsiess, facia

istittios aso epe o the qaity o the f-

acia perorace o their parters to achieve

their oas. hs expaii the bsiess case

P is a iportat etry poit to iterest baks

i faci ree ivestets o ms. he SCI-

Pak project i Pakista eveops traii ate-

rias or baks to icrease baks erstai

o the beefts o /. he traiis packae

seeks to preset the ew bsiess atosphere

or facia istittios a to itroce te-

ra yste or viroeta maaeet as

a stratey to rethik bsiess oe i facia

istittios. next to the proper treatet a

se o atra resorces i the ms the trai-

i poits to baks to irect facia ais i-ci cost savis, cost-cosciosess ao

epoyees, ower tre copiace costs a

better bsiess opportities with sstaiabi-

ity-oriete ciets. ith the traii aterias

SCI-Pak aso hihihts the reptatioa/iae

beefts o /. /e attracts a retais cs-

toers a parters a attracts a retais

oo epoyees. Proraes prooti /

oer better recoitio i society a pbic i

eera.

ea fom ee sd o o scP

SmAT Ceb prootes the beefts o sstai-

abe proctio practices ao ms to baks.

he two baks tarete by the project joit a

sty tor to rope i orer to ersta how

eviroeta perorace iproveets ca

be qatife ito ecooic savis. eior rep-

resetatives o the project parters toether

with seecte poicy-akers a represetatives

o baks visite the netheras a gerayto aiiarise theseves with how P is i-

peete i rope. he costatio r-

i the tor ocse particary o staars,

ree proct esi a iovatios, atest

eveopets i the area o ceaer proctio,

a trae show tres. o reach ot to ai-

tioa facia istittios, the SmAT Ceb i-

vite 28 participats ro faci istittios

ici pbic a coercia baks a the

oaitio o ociay esposibe ms i sia

(m) attee a exective brief o

sstaiabe cosptio a proctio (P).



29/3929

Baks i the Phiippies reqire their borrowers

to sbit a eviroeta copiace certif-

cate to show that they copy with the crret

ea raework. Fiacia stittios are e-

viroeta coscios. However, accori to

the project they ack erstai o how to

eectivey iterate sstaiabe cosptioa proctio (P) thiki ito their aiy

processes. he project evisios that i sstai-

abiity thiki is iterate ito both ms

a baks operatios, ecooic rowth wo

i itse becoe ore sstaiabe. dri the

SmAT Ceb sessio, the bakers showe kee

iterest i P a potetia bsiess oppor-

tities. Participats aso sai that sstaiabe

eveopet isses ike P, which baaces

ecooic, socia a eviroeta iesios

provies baks a facia istittios theeverae to proote ree pricipes a prac-

tices to existi a potetia m ciets.

udead ee eolo

he H-sia project Bioass SPcocte

a brief sessio or facia istittios (Fs)

a eveopet facia istittios (dFs)

o ree techooy. he project aie to show

that ree techooy ay very we be the ew

river or tre ecooic rowth. t the evet,

the project icrease awareess o facia isti-

ttios a eveopet facia istittios

o the rowi bioass istry i maaysia

a the icreasi ea i the oba arket

or bioass-base procts. ccori to the

project, the sessio was a steppi stoe a

a oo way to isseiate facia ees o

m a ms potetia rowth. t serve as a

pator or bsiess opportities to be ae,

kowee a ioratio bei share, a

etworks as we as rieships bei ore.

Fro the brief sessio, the project coce

that it is iportat to ecate ot oy the Fs

a dFs o what they ca o to hep the ree

bsiesses to row, bt aso aress the ms.ms ee to kow the risks ivove whe they

vetre ito the bioass istry. he project

reaize that there sho aso be a two-way

coicatio betwee the ms a the f-

aciers so that both wi have a ta er-

stai o the isses a risks ivove, which

is ater hope to ea to a wi-wi areeet:

itioay, the project reporte that ore

capacity bii proraes ee to be co-

cte or Fs a dFs to iprove their techi-

ca kowee or i easibe ree tech-ooy projects.

red aao o

he probe that ms i Vieta have i ac-

cessi faci or eery efciecy ivest-

ets see to be siiar to ms i ay other

cotries. difcties ike ack o coatera or i-

aeqate facia recors, the mEET-BIS project

caot tacke i the crret project set-p i a

coprehesive aer. o sti spport iivi-

a ms the project is crrety expori the

optio whether saes aets o techooy sp-

piers ca provie aitioa spport to ms.

aes aets ea with m o rear basis,

a co i pricipe 1) provie ioratio

o existi m eery efciecy creit ies;

2) peror a frst assesset o the creitwor-

thiess o the fr, a the proftabiity o the

eery efciecy ivestet;

a 3) assist eiibe ms

copeti the oa appica-tio. ptiay, the echica

ppier sbits batches o

e.. 10 copete oa appica-

tios o ms, a therewith

ake m face ch

ore attractive to the bak.

he project crrety bis

o parterships betwee the

techica sppiers a the

baks, a arraes or saes

aets to be traie i the

creit appicatio procere


MEET-Bisenvisions

sales agents

to disseminate

information

on financial

options


30/3930

by the oca bak. However, saes sta is osty

techica experts with o backro i bsi-

ess face. hereore, mEET-BIS is aso eve-

opi a set o toos that hep the saes aet as-

sess the costs a beefts o staarise meery efciecy procts. his too wi aow

techica saes sta to assess the creitworthi-

ess o the fr, bt aso o the ivestet ow

whether a bak oa or eery efciecy wi

otweih the creit costs (15% iterest rate).

shw csing invEstMEnt PPrtunitiEs

lack o ivestet ote a ajor actor respo-

sibe or ms sow rowth. his is aso tre

or the baboo sector i icha, hia. t

preset, oy 10% o Baboo ms i icha

receive ay or o ivestet, with ivest-

et i sei-processi ms o-existet.

o ior ivestors a baks abot the sector

the H-sia project Sstainable revival o

livelihoods in post-disaster Sichan: Enhancing

eco-riendly pro-poor baboo prodction spply

chains to spport the reconstrction eorteve-

ope a ivestet pa or the icha m

baboo sector. ith the ivestet pa the

project strives to provie ior-atio to potetia ivestors

abot the opportities a

risks o baboo ivestets

i icha. he ivestet

overview athere basic ior-

atio abot the possibiities

o baboo ici existi

baboo proct specifca-

tios. moreover, the pa as-

sesses the crret oestic

ivestet ciate or the

sector a ietifes streths,

weakesses, opportities a threats. he pa

was eveope po costatio with oca

baks that hepe to ietiy faci echa-

iss, which ca be accesse by baboo tar-

et ms. meetis were aso he with repre-

setatives ro the costrctio a ritre

sectors ro withi a withot the provicei orer to assess potetia sector-rive i-

vestet. he vestet pa hihihts the

actors that ake icha a the baboo i-

stry attractive or ivestets sch as poicy

spport (ici tax ectios a exep-

tios, ea restrictio o tiber avori ba-

boo a avaiabe techica spport. he vest-

et Pa was wiey isseiate to reevat

poicy-akers, etrepreers o baboo eter-

prises a ivestors, which provie a pictre o

crret sitatio o icha baboo istrya provie se ioratio to ivestors or

taki ivestet ecisio.

Dele o ae o l e be

ae of scP o ba

he project Green Philippines Island o Sstain-

ability (GPIoS) takes reat care to ocet the

sccess o the projects itervetio with co-

pay reports. he hih-eari easres oc-

ete i their eviroeta reports serve as

showcases or the beefts o ceaer proctio

as we as to expai to baks a ivestors the

potetia o efciecy possibe by ipeeti

sstaiabe proctio practises.

he show case series ocets how copa-

ies participati i the -H traii

have iprove their eviroeta peror-

ace. itioay, the actsheets which cotai

the acta qatife eviroeta a eco-

oic savis are share to the bak as shii

showcases o the participati copaies. hisserves as a bsiess case or recoeatios

provie by the project, with qatife rests

ici the etr o vestet. rrety,

the GPIoS project ais to bi a series shi-

i showcases o the participati copaies

withi the etwork o the Paters Bak o o

the baks attache to the project with a eo-

ra o erstai. s the bak is aso

oe o the beefciaries o the projects ceaer

proctio prorae, bak aaers wi et

a i-epth erstai o what the -

H approach is abot.



31/3931

strtEgy 5

Ening invEstMEnt

inkgEs

o proote ivestets ivestors reqire ore

ioratio abot taret ms. H-siaprojects take varios steps to eabe coi-

catio betwee ms a faciers.

crEting DiguE EtwEEn DEMnD

nD suPPy

e stratey to rece the isatch betwee

sppy a ea is to create stroer rea-

tioships betwee facia istittios a

ms is to eabe iaoe. Varios projects

have take easres to bri the toether.

he H-sia project Sstainable revivalo livelihoods in post-disaster Sichan: Enhanc-

ing eco-riendly pro-poor baboo prodction

spply chains to spport the

reconstrction eort proce

a bsiess irectory. he i-

rectory ais at icreasi

cotact betwee taret ms

a potetia ivestors ro

istry, facia istittios

a goveret. he irec-

tory is ivie ito sectios o

ieret baboo istries,

with a ocs o the ai i-

stries taret by the actio

(boar, oori, ritre, a

costrctio), as we as arer

sei-processi ms. he biia irectory, i

hiese a ish, coecte ioratio o

cotact etais or ms ao with their pro-

ct rae.

he H-sia project Sstainable andCleaner Prodction in the anactring inds-

tries o Pakistan (SCI-Pak) broht baks a

ms toether to ietiy strateies to oster the

coicatio a iteractio betwee fa-

cia istittios a ms. SCI-Pak starte their

rotabe by hihihti the bsiess be-

efts o eery a resorce efciecy or ms

a facia istittios as they are easres

to rece the cosptio o eery a re-

sorces a iiize waste a greehose

gas eissios. fciecy easres at the sae

tie strethe the ecooic perorace a

copetitiveess o ms throh cost rec-

tios. he participats ecie that awareess

capais or ms sho be ache at the

rass root eve to ecate the asses reari

ieret facia istrets eveope by tate

Bak o Pakista or the oerisatio o ms.

he SCI-Pak project cooperate with the tateBak o Pakista (BP) to ietiy strateies to

oster the coicatio a iteractio be-

twee BP, facia istittios a a &

mei terprises (ms) i aciitati ms

access to face (2F) to ertake eery a

resorce efciet (&) proctio.

he cooperatio was trace i a work-

shop, which ivite hih-eve represetatives

o aro 12 oca baks, a 4 irectors o bsi-

ess eber oraisatios a the repre

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