sustainable finance collective asia (sfca)
TRANSCRIPT
Sustainable Finance Collective Asia | November 2016 1
Sustainable Finance Collective
Asia Launch Event | 22 November 2016
www.sfc-asia.com
Sustainable Finance Collective Asia | November 2016 2
Thematic panel discussion – Circular EconomyLeonie Schreve, Managing Director, Global Head Sustainable Finance, INGMatthew Toy, Water International Client Director, Atkins
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A circular economy is one that is restorative and regenerative by design,
and which aims to keep products, components and materials at their
highest utility and value at all times, distinguishing between technical and
biological cycles
- Ellen Macarthur Foundation
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Linear economy Technological innovations Circular economy
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Five circular business models by Accenture
Circular Supplies: Provide renewable energy, bio based or fully recyclable input material to replace single-life inputs
Resource Recovery: Recover useful resources/energy out of disposed products or by-products
Product Life Extension: Extend working lifecycle of products and components by repairing, upgrading and reselling
Sharing platforms: Enable increased utilization rate of products by making possible shared use/access/ownership
Product as a Service: Offer product access and retain ownership to internalize benefits of circular resource productivity
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Circular Supplies Resources RecoveryProduct Life Extension Sharing Platforms Product as a Service
Smurfit KappaFor production of paper and cardboard company uses waste from tomato production.
AvantiumTechnology firm producing PEF. PEF is a new polymer that is 100% plant based and 100% renewable.
BundlesRenting of laundry machines on a pay-per-use basis
Netflix24/7 access to movies and tv-series based on a pay-per-use model
CaterpillarDesigns and produces heavy use products based on effective and extensive use and ease of repair.
Examples of the circular economy
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The rise of Circular Economy in Asia
Used coffee grounds collected from Starbucks are turned into T-shirts, socks, and soaps by Taiwanese firm Singtex.
Lighting giant Philips give office landlords such as in Singapore free lights in return for a share of the energy saved.
discarded fishing nets are sold by local communities to carpet maker Interface to make fresh carpet tiles.
Home-sharing platforms Airbnb, PandaBed, car-sharing services Lyft,
Tripda and goods sharing apps SnapGoods and Rent
Tycoon
Initiatives to set up industrial parks that are
designed to create a circular economic system
that fully utilizes production-chain
resources.
Taiwan Singapore Philippines
OthersChina
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Financial implicationsBalance sheet extensionCash flowCredit riskFinancingReporting
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Financial industry’s role to playOther types of financing
Different view on collateral
End-of-life policy
Financing of the value chain
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Role of Financial sector
• Other financing models
• Different view on residual value
• End of life policy
• Financing the value chain
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Case Study – Ajman Wastewater
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Emirate of Ajman
300,000 populationIndustry around port and inland
Close inter-relationship with Sharjah and Dubai
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• City with growth of 7% per annum• 375,000 population in 10 years• New centralised wastewater system
• Sewers and interconnecting pumping stations• WWTP with outfall
• 95% connectivity to wastewater network• Tanker service for non-connected properties• Improvements to environment and City health
Conclusions
Sustainable Finance Collective Asia | November 2016
• WWTP located within a growing industrial area
• Industries require potable water for process and cooling
• High financial cost of potable water• Few water resources for developing
City• Variable quality of potable supply due to
high demand
Opportunity
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Solution• Tertiary treatment plant built adjacent to WWTP• Membrane filtration to potable standards• Supply to high demand nearby industries• Tariff saving on potable water supply• Improved reliability of service and ease pressure on natural resources• Closed loop back to WWTP• 20% effluent reused in this way• 40% effluent reused for irrigation• Unexpected benefit – improvement to stability of WWTP process
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Ajman Wastewater Concession is a great success story
Opportunity for wastewater re-use being realised
Exemplar for efficient wastewater treatment
Conclusions
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www.sfc-asia.com
Closing remarks and Q&A