Creating Opportunity

in East Asia and the Pacific

Climate Change

Message from the Regional Vice President

Reducing poverty and fighting climate change are two of the greatest challenges facing our world today. In East Asia and the Pacific in particular home to two of the worlds largest greenhouse gas emitters we cannot tackle poverty without responding to the threat of climate change. For IFC, the member of the World Bank Group focused on private sector development in emerging markets, addressing these two challenges goes hand-in-hand. Large emitters like China and Indonesia need help in managing their economic growth such that they can continue to lift millions out of poverty while helping to protect the global climate. And many countries in East Asia and the Pacific need tools to adapt to a more challenging environment. In the Pacific, rising temperatures and sea levels endanger the livelihoods of fishermen and farmers, and threaten the very existence of extremely low-lying islands such as Tuvalu and Kiribati. This is why, over the last decade, IFC has been offering solutions in clean energy, energy efficiency, and cleaner production. We develop new business models and financing instruments that open up business opportunities for companies while helping to cut carbon emissions. We set and improve environmental and social standards for the private sector, leveraging labor and social capital, and preventing the loss of biodiversity. Climate change cannot be managed without strong engagement of the private sector. The UN Framework Convention on Climate Change has estimated that more than 80 percent of investments required for climate change mitigation and adaptation will have to be privately financed.

CLIMATE CHANGE

Between fiscal years 2008 and 2010, IFC invested around $1 billion in climate-related projects in East Asia and the Pacific. We direct financing towards private sector projects that conserve or generate energy in an environmentally friendly way. We encourage local banks to do the same by covering some of their risks when they invest in climate-friendly projects, such as improving energy efficiency in cement plants, steel mills, farms, and others. Going forward, IFC is pioneering financial solutions for the prudent management of water resources in China and elsewhere in East Asia, where water scarcity as a result of climate change is a growing development challenge. Conflict over water is a significant social and corporate risk that can affect growth, profitability, and long-term strategy and viability of businesses. This collection of stories shows what we have achieved by investing in renewable energy such as solar, wind, geothermal, and hydro power; by devising innovative risk-sharing models that direct funds to climate-friendly projects; by initiating policy reform that reward climate preservation as a public good while yielding returns for investors. Clients, entrepreneurs, and public and private partners together can make a difference by channeling money to where its needed most: alleviating poverty by putting East Asias emerging markets on a low-carbon growth path.

Karin Finkelston Vice President, Asia Pacific

IFCs Approach to Climate Change in East Asia & the Pacific

East Asia and the Pacific need access to reliable and affordable electricity to develop. The challenge is to source this energy sustainably, save energy where possible and adapt to a changing climate at the same time. There are major opportunities in the region for using renewable energy sources to reach the poor, such as a wind farm in Chinas northwestern Gansu province deep in the Gobi desert and one of the countrys poorest regions. These will require billions of dollars in investment each year, most of which will have to come from the private sector. The good news is that there is a strong business case for climate investments. The transition to a cleaner energy path is one of the great business opportunities of our time, and IFC supports pilot projects that can serve as models for success. This is particularly important in China where soaring economic growth, urbanization, and the predominance of coal-fired power have inflated greenhouse gas emissions at an unprecedented rate over the last 30 years.

An industry force in its own country after just three years in operation, China WindPower Group is now working with IFC to take its expertise into new markets (see p. 12). 2 CLIMATE CHANGE

IFC demonstrates through landmark transactions and innovative models that the private sector can play a central role in cutting carbon emissions in China and elsewhere. For example: IFCs China Utility-based Energy Efficiency (CHUEE) Program has proved the commercial viability of energy efficiency financing through technical assistance and guarantees (p.16). Similar Sustainable Energy Finance projects in the Philippines have opened up new business opportunities for banks and helped stem carbon emissions (p.18). A $45 million IFC loan and $10 million equity investment combined with a $95 million loan syndicated by IFC from commercial banks for China WindPower have shown for the first time that a commercial wind project can be financed in China using an internationally accepted project financing structure (p.12).

IFC also supports first movers that champion new technologies long before they enter the mainstream: IFC made $1.7 million equity investment in Solar Power Companys Korat 1, the largest utilitybased solar project in Southeast Asia, supporting a charismatic woman entrepreneur (p. 6).

IFC also facilitates the introduction of new technologies in the clean tech and green building sectors where commercial banks typically perceive high risks and invest less. IFCs role is to help governments set parameters and incentives that encourage industry to choose lower carbon options, such as: Investment climate advisory support for eco-cities and green buildings that can cut transaction costs and carbon emissions, such as in Indonesias capital Jakarta (p. 24). Support for Chinas Green Credit policy, which channels investments to less polluting industries (p. 22).

Since 2005, IFC has financed more than $2.4 billion in renewable energy projects globally. In East Asia and the Pacific, we supported around 2.5 gigawatts of renewable energy between July 2007 and June 2010.
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Expanding its low-carbon geothermal energy generation, EDC is becoming a leading world player in its industry, thanks to its partnership with IFC (see p.14).

CLIMATE CHANGE

Contents
Solar
Thailand Utility-Scale Power.............................................................................................................................................. 6

Solar Makes Sense

China Solar Components............................................................................................................................................... 8

Lowering the Costs Hydro Power

Philippines Large-Scale Hydro............................................................................................................................................. 10

Hydro Power in a SNAP Wind

China China Wind Power........................................................................................................................................... 12

Emerging Players Geothermal

Philippines A Growing Force................................................................................................................................................. 14

Power from Beneath the Earth Energy Efficiency

China China Utility-based Energy Efficiency Finance.................................................... 16

Greasing the Wheels

Philippines The Energy Efficiency Market ...................................................................................................... 18

A Growth Business for Banks

Vietnam Power Savings . ......................................................................................................................................................20

Energy Efficiency Gets Prize Setting Standards

China Green Banking. ......................................................................................................................................................22

A Time for New Thinking

Indonesia Green Buildings . ................................................................................................................................................. 24

Cutting Jakartas Greenhouse Gases

THAILAND

UTILITY-SCALE POWER Solar Makes Sense

Women entrepreneurs are the hidden force behind many great companiesincluding Thailands early leader in solar power.
6.1 megawatts from the same top-quality Kyocera modules used in Spain, home of the worlds largest solar PV installations. Under SPCs business model, each plant would sell power to government utilities and be project-financed as stand-alone entities involving the parent firm and other outside investors. But the financing still needed to be raised.
Wandee Khunchornyakong, the trailblazing entrepreneur behind Thailands first commercial solar power plants. IFC is helping her finance an initial 34 installations over the next two years.

There the local first mover is called simply Solar Power Co. (SPC). It is the brainchild of its CEO Wandee Khunchornyakong, a tireless solar proponent who has spearheaded the industry in her country for nearly 30 yearstaking SPC to the point that it now is selling power to national utilities for the first time. Early in her career, long before solars commercial viability had been established, Wandee built her knowledge working on donor-financed projects. Then she founded Thailands leading solar cell production company, Solartron, taking it public in Bangkok in 2005. Next she launched SPC, which soon became the first Thai firm licensed to build grid-connected solar photovoltaic (PV) power plants. By 2008 she had government approval to build 34 of them, each generating
6 CLIMATE CHANGE - Solar

When SPC began developing its first plant in 2009, few in the Thai business community saw the commercial potential of grid-connected solar power. Seeking a trusted partner who would carry weight with local investors, it contacted IFC. IFC made a $1.7 million equity investment in its first project, Korat I. This helped SPC attract a $12 million local currency financing package for its solar plants from Bangkoks Kasikornbank, Euromoney magazines 2010 Best Bank in Thailand. The $22 million Korat I project opened in April 2010, becoming the largest utility-based solar project not just in Thailand, but in all of Southeast Asia. Later the same year, IFC invested an additional $1.1 million in two more of SPCs 6-megawatt grid-tied solar power projects in northeast Thailand. The operation of these solar power plants will contribute to the implementation of the governments plan to generate at least 20 percent of Thailands energy from renewable sources by 2022.

Thailands Korat 1 solar power station, owned by IFC client Solar Power Co.

CHINA

SOLAR COMPONENTS Lowering the Costs

Heavy industrial growth, urbanization, and the use of coal-fired power have seen Chinas greenhouse gas emissions grow alongside its economy at an unprecedented rate in the last 30 years.
time. It helped Suntech continue to develop increasingly efficient new technologies and deliver more than 12 million photovoltaic panels to over a thousand customers in more than 80 countrieslarge-scale utilities in Europe, homeowners in China, rural schools in Lebanon, remote villages in Indonesia, and others.
Engineers of Suntech, a client of CHUEE program, inspecting solar modules on Chinas National Stadium

In response, the Chinese government has been aggressively addressing these energy and environmental challenges. It quickly ramped up its renewable energy use and is now the worlds largest generator of renewable energy and a leading equipment supplier in this growing sector. And still, China requires help in tackling its enormous climate challenge as de-coupling emissions growth from economic growth is extremely challenging, yet crucial, for both China and given Chinas size and effect on the global atmosphere the rest of the world. During the global financial downturn in 2009, when private capital was especially hard to come by, IFC invested $50 million in Chinas Suntech, one of the worlds largest producers of solar cells and modules. The financing strengthened the research and development-driven firms base at a critical
8 CLIMATE CHANGE - Solar

We like to think beyond buildings, says Suntech CEO Shi Zhengrong. Its about having a tangible, positive impact on the future of our planet. In the Philippines, IFCs $75 millon loan to U.S.-based SunPower Corporations highefficiency solar cells manufacturing plants supported the scaling-up of renewable energy sources. And it also proved that the Philippines, with its high electricity costs, can be competitive in those manufacturing sectors where power cost components are relatively small and skilled labor is of the essence. Similar to Suntech, IFCs long-term funding allows SunPower to continue to provide competitive solar products to solar power plants in developed markets. Investing in the solar photovoltaic supply chain is a critical part of IFCs climate change strategy, as solar energy is a reliable source of carbon-free electricity that can be used both in grid-connected and off-grid applications.

Strengthened by IFC financing, Chinas Suntech is one of the worlds most sophisticated manufacturers of solar industry components.

Philippines

LARGE-SCALE HYDRO Hydro Power in a SNAP

In 2007, the Philippines struggling economy needed more power, but the government could not afford much new construction. The hydropower Magat plant changed that.
Magat matched our investment criteria, says SN Powers Erik Knive. Wed be the first foreign mover into the Philippine power market. But we took a chance. Thats what were set up to do. When IFC gave the venture its stamp of approval with a $105 million, 15-year loan, it didnt take long for local and foreign investors to come on board. Soon HSBC and the Nordic Investment Bank joined in, and Magat earned Deal of the Year awards from Project Finance International and other industry publications. Now SNAP is adding up to another 180 megawatts at Magat. Further bolstering the privatization program, IFC financed two other larger hydro plants that SNAP acquired in 2008 as turnarounds. One, 100-megawatt Binga, was producing power at less than half of its capacity at the time. Under its new owners, it is now fully operational and being expanded. The other, 75-megawatt Ambuklao, was closed in 1990 due to earthquake damage. It has since undergone rehabilitation using North Sea oil rig technology, and is set to reopen at 105 megawatts in the second half of 2011. Since the landmark Magat deal, private sponsors have pledged to invest more than $6 billion in the Philippine power sector avoiding electricity shortages by adding new capacity, much of it from clean hydro power.

Binga hydropower plant

Unless it could attract significant private investment, the country was faced with crippling energy shortages. Its privatization program had brought no foreign investors over six years. Then came the gamechanger: the $530 million sale of the Magat hydroelectric plant. Located in northern Luzon, Magat was an attractive 360-megawatt asset. But the market had just been deregulated, moving to a wholesale system that was a step forward but was untested in Asia. The lack of long-term supply contracts created initial uncertainty. In came SN Power Invest, a Norwegian renewable energy specialist that had succeeded in other deregulated markets. It teamed up with a top local conglomerate, Aboitiz Equity Ventures, to bid for Magat in a new joint venture called SN Aboitiz Power (SNAP).
10 CLIMATE CHANGE - Hydro

When social and environmental issues are properly managed, large-scale hydroelectric power is a clean, reliable renewable energy option. Ambuklao (above) is one of three major IFC-financed hydro privatizations in the Philippines sponsored by SN Aboitiz Power (SNAP).

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CHINA

CHINA WIND POWER Emerging Players

China is now the worlds largest wind market. IFC is helping build its industry pioneers, China WindPower Group and Xinjiang Goldwind.
in 2010 to bolster the firms bid to become a leading wind turbine generator manufacturer. China WindPower, listed in Hong Kong in 2007, makes wind turbine towers and designs, constructs, and maintains wind farms for itself and other developers.
China WindPower: A growing force in the renewable energy industry

In China, it is particularly important to replace fossil fuel-generated electricity with renewable energy as the country continues to grow at close to 10 percent. Outside of hydro power, wind is among the most viable alternatives to coal-based energy generation. Therefore, China has doubled its wind power capacity every year for the last four years and shows no sign of stopping, committed to getting 15 percent of its power from renewable sources by 2020. Yet, the countrys wind turbine makers and wind farm operators need international know-how and capital to expand and tap into international markets. Both China WindPower and Goldwind sought IFCs assistance to reach the next level. IFC invested $75 million in Goldwind equity as a cornerstone investor during the companys initial public offering in Hong Kong

Having developed wind farms in partnership with large state-owned enterprises, IFC is now financing China WindPowers first wholly owned project: the 201-megawatt Xiehe plant in northwestern Gansu province, deep in the Gobi desert and one of Chinas poorest regions. IFC is providing a $45 million loan for the project, and mobilizing up to $95 million more from leading foreign commercial banks. And we have taken a $10 million equity stake to help China WindPower at the corporate level. Xiehe is expected to offset more than 421,000 tons of carbon emissions annually over the next 20 yearsthe equivalent of taking more than 85,000 cars off U.S. roads every year. Both China WindPower and Goldwind are exploring opportunities outside China, such as in India and Africa. As more and more developing countries move to utilize their wind power potential, both firms can play a major role in helping them go green.

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CLIMATE CHANGE - Wind

A Chinese technician monitoring the performance of wind turbines. Vast wind resources are a major new source of electricity in China, supporting economic growth while offsetting greenhouse gas emissions.

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Philippines

A GROWING FORCE Power from Beneath the Earth

Geothermal energy driving electrical turbines with underground heat is a high-potential natural power source. IFC is helping expand its use, beginning in the Philippines.
corporate governance, strong social and environmental standards, and fair labor practices, EDC President Richard B. Tantoco recalls. Having that seal of approval from a financial institution that maintains the highest standards was really a positive signal for us at the beginning of our privatization process.
EDC is turning the Philippines vast subterranean steam reserves into low-carbon renewable energy.

There businesses pay the second-highest electricity rate in Asia after Singapore and households pay the highest rate in the region. This is a major driver for the ongoing scramble to harness cheap, renewable power, such as geothermal energy. The industry leader, Energy Development Corporation (EDC), has found an early and consistent supporter in IFC. The Philippines has vast subterranean steam reserves, including one on Leyte Island that is considered near-perfect, able to produce cheap, emission-free energy for hundreds of years. EDC was originally a state-owned enterprise. In 2006, authorities decided to privatize the power sector and listed EDC on the local stock exchange. IFC took a $49 million early equity stake, boosting investor confidence at the critical pre-IPO stage. Everyone here knows that IFC stands for financial discipline, good
14 CLIMATE CHANGE - Geothermal

The IPO was a success, and in 2007, the Lopez Group of Companies, a leading infrastructure conglomerate, took a controlling interest in EDC and began steering it to new heights. When the global credit crunch threatened to halt EDCs momentum in late 2008, IFC again stepped in, providing a $86 million local currency loan. No one else was lending to us at the time, Tantoco says. That one took us over the tipping point, opening up our access to local bond markets and major banks that wouldnt have shown interest in us before. Today EDC is a profitable company that has won awards for its social and environmental responsibility. It has revived its existing Philippine geothermal sites, begun new ones, and launched international operations in promising markets such as Indonesia, Chile, and Colombia. Within a few years, it expects to surpass Chevron as the world leader in its industry, using a low-carbon business model to help meet global energy demand.

Advanced cooling towers are just part of the impressive technology at the Philippine geothermal plants owned by EDC, a key player in this important form of renewable energy.

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CHINA

China Utility-based Energy Efficiency Finance Greasing the Wheels

Chinas economy is powering ahead at an impressive speed as production, trade, and commerce have helped lift millions of Chinese out of poverty while racking up growth rates of around 10 percent over the last decade.
However, Chinas economic rise also poses significant challenges. The country is today one of the worlds largest emitters of heattrapping greenhouse gases. Chinas Ministry of Finance and IFC realized that banks can play a key role in cutting carbon emissions by financing innovative uses of energy: energy-saving production facilities do get built if banks are willing to lend more money to such projects. Therefore, IFCs China Utility-based Energy Efficiency Finance program, or CHUEE for short, shoulders some of the financial risk by guaranteeing commercial bank loans for energy efficiency projects and assists in assessing and implementing energy efficiency projects. For example, DQY Agricultural Technology, a farm of 3 million chickens outside of Beijing, started to explore alternatives to treating hundreds of tons of chicken manure every day. With IFCs help, DQY designed a biogas power generation plant, which now turns chicken poop into 14 million kilowatt of electricity annually. The plant, financed with a 5-year loan under IFCs CHUEE project, is not only profitable it also reduces greenhouse gas emissions by 84,000 tons per year.
16 CLIMATE CHANGE - Energy Efficiency

Chinese banks have realized that financing green projects such as DQYs is not only the right thing to do it makes good business sense, too. At the beginning, we saw energy efficiency financing as a constraint, but increasingly we felt that these constraints actually presented a business opportunity to build a competitive advantage for our bank and enhance our brand, says Li Renjie, President of Industrial Bank, IFCs first CHUEE partner bank. Results are impressive. By end-March 2011, the CHUEE partner banks had facilitated around $1.3 billion in energy efficiency and renewable energy investments across China. These investments have reduced greenhouse gas emissions by around 16.5 million CO2 tons per year - roughly the equivalent of annual emissions of 25 medium-sized coalfired power plants. IFC aims to help reduce 100 million tons of carbon dioxide in the coming years. And in the future, the successful CHUEE model may also be used to address the severe water challenge in China.

The Independent Evaluation Group (IEG) of the World Bank Group concluded that CHUEE has significantly raised energy efficiency finance among banks, energy-management companies, and small businesses that typically have difficulties obtaining loans due to collateral requirements. In fact, companies that participated in the program had a 31 percent higher chance of securing bank loans than those that did not. According to IEG, the expected quantifiable benefits from the guaranteed loans are in excess of $38 million over a 10-year period since program inception. The evaluation was carried out during the second half of 2009.

We solved the pollution problem by turning the chicken manure into gas and then providing energy to the farmers. This process is a model for how generating commercial returns can go hand-in-hand with benefits for local communities, says Pan Wenshi, Vice President, DQY Agricultural Technology

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Philippines

THE ENERGY EFFICIENCY MARKET A Growth Business for Banks

Lito Hizon owns and manages Corfarm, a 15,000-head pig farm north of Manila. To minimize power costs from the grid, he decided to construct a methane capture and electricity production facility.
The facility, which uses rice hull and other agricultural by-products usually burned or dumped as waste, is expected to save 6,000 tons of fuel oil and avoid a total of 19,000 tons of carbon dioxide emissions annually, according to Pepsi. Pepsi is making remarkable efforts to develop a sustainable supply chain platform, paving the way for the development of the local industry along the way, says Janamitra Devan, IFC-World Bank Vice President, Financial and Private Sector Development. This work is likely to have a big impact, not just locally but worldwide, because Pepsi is quickly gathering lessons and spreading them internationally. IFC Philippines Sustainable Energy Finance program, implemented through partner financial institutions since 2008, has facilitated some $119 million loans in the country as of March 2011, mostly for energy efficiency projects. The projects are expected to result in the avoidance of around 101,000 tons of carbon dioxide emissions per year. For helping small and medium enterprises finance sustainable energy projects in the Philippines, BPI won the first Group of 20 SME Finance Challenge Award at the G-20 summit in Seoul in November 2010.

Pig farmer Lito Hizon (right) is making environmental upgrades with IFC-supported financing from BPI.

Needing financing, he applied for and got a $1 million loan from the Bank of the Philippine Islands (BPI) under a Sustainable Energy Finance window that the Manila lender had opened in January 2008 with IFC assistance and financial support from the Global Environmental Facility. The program is based on the idea that financing sustainable energy projects is both good business and useful in fighting climate change. It works with banks, technology and equipment vendors, end-users, regulatory agencies, and market-awareness partners to promote sustainable energy. A Pepsi-Cola plant in Metro Manila is now sourcing steam needed for its bottling operations from an energy service provider, RED Corporation, which set up a biomass power facility with the help of a $1.1 million loan from BPI through the same program.
CLIMATE CHANGE - Energy Efficiency

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Bank of the Philippine Islands: One of the countrys leading banks, and IFCs partner in sustainable energy financing

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VIETNAM

POWER SAVINGS Energy Efficiency Gets Prize

As East Asias industrializing emerging markets consume ever more energy, resources for investments in less carbon-intensive new and alternative power generation often remain scarce.
Therefore, IFC is supporting the countrys Energy Conservation Center in designing training programs to raise company directors, energy managers, and technicians awareness of energy efficiency solutions and principles. Effective factory energy management systems help businesses reduce production costs, increase profits, and improve competitiveness. Following a year of development and piloting, the Ho Chi Minh City-based center set up a training unit and committed resources to marketing and delivering classes to small and midsized enterprises and other firms. I was impressed with the courses professional and easy-to-understand presentation, which provided insights on good practices of energy management systems, their benefits, and most importantly, solutions to operating such systems effectively, says Dao Hoang Lien, Deputy General Manager of Hotel Continental Saigon. The training motivated the hotel to strengthen its current energy management system following energy audit recommendations, which contributed to 2 million kilowatt hours saved over eight years. The efforts earned Continental Saigon a second prize in the Vietnam Energy Management in Industry and Buildings 2010 competition.

Dao Hoang Lien from Hotel Continental Saigon discusses energy-saving solutions at an energy efficiency training supported by IFC.

IFC is taking first effective steps in reining in greenhouse gas emissions by helping to make the use of energy more efficient in Vietnam, Cambodia and elsewhere in East Asia. Vietnams impressive economic growth has seen energy demand more than double between 2001 and 2011, and it is likely to double again in the following 10 years, if economic growth remains robust. At the same time, Vietnam promises huge energy savings potential.

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CLIMATE CHANGE - Energy Efficiency

Applying energy efficiency solutions has helped Hotel Continental Saigon save 2 million kWh over eight years and earned it a second prize in the Vietnam Energy Management in Industry and Buildings 2010 competition.

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CHINA

GREEN BANKING A Time for New Thinking

China may be one of the worlds largest sources of greenhouse gas emissions. But it has taken a landmark step toward finding a solution.
managing projects and their requirements for receiving and retaining our support. IFC also advised on the Equator Principles, a set of principles for social and environmental risk management in project finance that more than 70 financial institutions have adopted worldwide and that are based on IFCs Performance Standards.
With IFCs support, Bank of Beijing has implemented energy efficiency finance as a profitable business.

Its banking and environmental regulators Green Credit Policy encourages local banks to lend less to enterprises with high levels of pollution and energy consumption and more to those favoring energy efficiency and emissions reduction. The policy is part of the governments response to problems of pollution and unsustainable energy use that it saw potentially threatening the countrys economic and social development and global reputation. To flesh it out, the government and leading Chinese banks looked for internationally recognized good practices in environmental policies and implementation standards. IFC has collaborated in the initiative since late 2007, helping regulators and banks devise and implement the policy by sharing experience with IFCs Performance Standards, guidelines that define IFC clients roles and responsibilities for
22 CLIMATE CHANGE - Setting Standards

China Banking Associations data show that in 2009 all major Chinese banks reduced their credit for high energy consumption and pollution industries while increasing investments related to energy efficiency and emissions reductions. Around 2,300 companies from high energy consumption and polluting industries were turned down, a more than 50 percent increase from 2008. Green credit loans worth 856 billion Chinese renminbi were extended, accounting for around 9 percent of total bank lending in China for the year. One of the most actively engaged bank is IFCs client Industrial Bank, which in October 2008 became the first Chinese bank to adopt the Equator Principles and was recognized by the Financial Times with a regional Sustainable Banking Award. Another IFC client, Bank of Beijing, is moving in the same direction. The successful model of China-IFC cooperation is also being expanded within the region as IFC enters into similar partnerships with Vietnam and Bangladesh, facilitating South-to-South cooperation to build on Chinas expertise and experience.

Working with the government and banks in China, IFC is helping make green banking a reality in the worlds largest emerging market. Industrial Bank was the first Chinese bank to adopt the Equator Principles in 2008.

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INDONESIA

GREEN BUILDINGS Cutting Jakartas Greenhouse Gases

Indonesia is one of the worlds largest greenhouse gas emitters and its building sector is the countrys third-largest energy consumer, accounting for more than a quarter of total energy use in 2004 a number thats expected to rise to nearly 40 percent in the next two decades.
watering plants; and adding meters to water pumps to minimize water run-offs and consumption. Other recommendations aim at improving indoor air quality and hiring contractors for disposal, recycling, and composting of hazardous waste. What may yield small gains if implemented in a health clinic will make a huge difference if applied to large commercial properties across Jakarta and, potentially, all over Indonesia. To help achieve [the national target of cutting carbon emissions by 26 percent by 2020], Jakarta has been working on a number of sustainable city initiatives since 2008, said Jakartas Governor Fauzi Bowo at the launch of the project. With effective implementation of the green buildings code in Jakarta, the city can serve as a model for implementation in other cities in Indonesia. IFC is evaluating the feasibility of various measures under the draft green building code and is hosting a series of consultation workshops with key private sector players. IFC also supports the local government through a series of training and capacitybuilding initiatives and the private sector by reviewing financing needs and incentives for firms to retrofit existing buildings.

Bright, open-air reception at a public health clinic in Jakarta. The clinic adopted the energy efficiency requirements to comply with the green buildings code.

In response, IFC is helping the government of the capital province, Jakarta, to develop a green buildings code that will reduce energy consumption in residential and commercial buildings, potentially cutting around 140 million tons of carbon dioxide per year. The code will set energy and water efficiency requirements for buildings, and will require that climate change adaption practices are included in building designs. For instance, the government of Jakarta is retrofitting a public health clinic to adopt the energy and water efficiency requirements recommended by IFC as part of the green buildings code. Recommendations include replacing the current lighting with energyefficient light bulbs; developing a system that collects rain water for cleaning and
24 CLIMATE CHANGE - Setting Standards

Setting energy-saving requirements for commercial buildings can significantly help reduce carbon emissions. Indonesias capital is adopting recommendations from IFC as part of the Green Buildings Code by retrofitting a public health clinic facility.

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Credits
Creating Opportunity in East Asia and the Pacific

Climate Change Produced by IFC Communications in East Asia and the Pacific. Photography China WindPower Group (page 2) EDC (page 4) Solar Power Co. (pages 6-7) Suntech (page 8) Nitol Solar (page 9) SN Power Invest (pages 10-11) China WindPower Group (page 12) Zhu Shiliang/Xinhua/Landov (page 13) EDC (pages 14 -15) DQY Agricultural Technology (page 17) Bank of the Philippine Islands (pages 18-19) IFC (page 20) Patrick Daneri Carpenter/IFC (page 21) Stephen Shaver/UPI/Landov (page 22) IFC (page 23) Ariavita Purnamasari/IFC (pages 24-25)

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CLIMATE CHANGE

How to Contact Us
IFC has 16 offices in East Asia and the Pacific. Please contact us the nearest country office for further information.
Hong Kong - Regional office 14th Floor, One Pacific Place 88 Queensway, Admiralty Hong Kong Tel: (85 2) 2509 8100 Cambodia Phnom Penh 70 Norodom Blvd., Sangkat Chey Chumnas Dun Penh District, Phnom Penh Tel: (855 23) 210 922 China Beijing 15th Floor, China World Tower 2 No.1 Jian Guo Men Wai Ave. Beijing 100004 Tel: (86 10) 5860 3000 Chengdu 10th Floor, Hongda International Plaza No.2, Xianan Road, Chengdu, Sichuan Province China 610041 Tel: +86 (28) 6552 2836 INDONESIA Jakarta Indonesia Stock Exchange Building Tower 2, 9th. Fl. Jl. Jend. Sudirman Kav 52-53 Jakarta 12190 Tel: (62 21) 2994 8001 JAPAN Tokyo 10th Floor, Fukoku Seimei Building 2-2-2, Uchisaiwaicho, Chiyoda-ku Tokyo 100-0011 Tel: (81 3) 3597 6657 LAO PDR Vientiane 90 Phonexay Rd Tel: (856 21) 450 017 9 MONGOLIA Ulaanbaatar MCS Plaza Building, 4th Floor, 4 Seoul Street 210644 Ulaanbaatar Tel: + (976 11) 312694 PACIFIC ISLANDS Sydney Level 18/14 Martin Place Sydney NSW 2000 Tel: (61 2) 9235 6519 Papua New Guinea Port Moresby 13th Floor, Deloitte Tower Port Moresby, NCD, Tel: (675) 321 7111 PHILIPPINES Davao Unit 90 & 92 Landco Corporate Center J.P. Laurel Avenue Bajada, Davao City Tel: (63-82) 228 6682 Manila 11th Floor, Tower One Ayala Triangle, Ayala Avenue Makati City, 1226 Tel: (63-2) 848 7333/38 THAILAND Bangkok 30th Floor, Siam Tower 989 Rama 1 Road, Patumwan Bangkok 10330 Tel: (66 2) 686 8300 Timor-Leste Dili Rua Dos Direitos Humanos World Bank Group Building, Licidere Tel: (67 0) 332 4649 VIETNAM Hanoi 3rd floor, 63 Ly Thai To Building 63 Ly Thai To St., Hoan Kiem Dist Tel: (84 4) 3824 7892 Ho Chi Minh City 3rd floor, Somerset Chancellor Court Building 21-23 Nguyen Thi Minh Khai St. Dist.1 Tel: (84 8) 3823 5266

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Our vision is
The people should have the opportunity to escape poverty and improve their lives.

Our core corporate values are

Excellence Commitment Integrity Teamwork

Our purpose is
To create opportunity for people to escape poverty and improve their lives by: Promoting open and competitive markets in developing countries Supporting companies and other private sector partners where there is a gap Helping to generate productive jobs and deliver essential services to the underserved Catalyzing and mobilizing other sources of finance for private enterprise development In order to achieve its purpose, IFC offers development impact solutions through: firm level interventions (direct investments, advisory services and the Asset Management Company); standard-setting; and business enabling environment work.

Creating Opportunity Where Its Needed Most

www.ifc.org/eastasia

2011

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CLIMATE CHANGE