France underlines the importance of Green Finance to promote sustainable development [fr]
On 14th of October, the Economic Section of the French Embassy and the French Development Agency jointly hosted a forum on Green Finance at the Galle Face Hotel. Six speakers from local and international financial institutions involved in Green Finance were invited to share their views and their respective financial instruments to achieve a low-carbon economy. Representatives from the government, banks, think tanks and independent power producers participated in the conference and drew insights from different aspects of this new brand of finance aiming at fostering sustainable development.
This forum was the latest event organized by France in Sri Lanka in preparation for the 21st Conference of the Parties (COP21) to the UN Framework Convention on Climate Change. The COP21 will be held in Paris at the beginning of December. France hopes that delegates from the 195 (+ the European Union) Member States will reach a legally binding agreement to curb global warming to less than 2°C and will set in motion a global dynamic to mobilize USD 100 billion a year against climate change.
According to the World Bank Colombo office, Sri Lanka will need USD 2 billion over the next decade to reach a share of 20% in Non-Conventional Renewable Energy (NCRE), a target set earlier by the government. In view of the future investment requirements, the World Bank wants to develop a strong regulatory framework with the Sri Lankan Government to attract more Private Public Partnerships. In Sri-Lanka, DFCC Bank (Development Finance Corporation of Ceylon) already boasts an extensive and successful experience in green finance that was shared during the Forum. Sri Lanka can also count on the support of Proparco and IFC, the private arms of the French Development Agency and the World Bank respectively, which have introduced innovative financial instruments to catalyze private investments in the field of NCRE. India, who has set a target at 24% of NCRE by 2030 was represented by Mr. Popli, Chairman and Managing Director of Indian Renewable Energy Development Agency. Mr. Popli has presented the successful and innovative model of this public financial institution created in 1987 and fully dedicated to financing NCRE.