The Covid 19 pandemic reduced an emerging Philippines economy to a standstill and reversed most of the economic gains achieved over the last few years. In 2020 GDP declined by 9.5%, foreign direct investments reduced by nearly 25%, revenue collection fell by 9% and the national debt increased by 26.7% leading to increased inflation and unemployment. The Asian Development Bank implemented a Rapid Emergency Supplies Provision program to address the immediate adverse impact of the pandemic – loss of income and food security. Global Best Practice Group’s expert was retained to design a longer term innovative and sustainable financing solution for the Government of Philippines to consider as a funding mechanism for pandemics and related disaster related emergencies. A review of the socio-economic impacts of the Covid-19 pandemic, assessment of the government response and a comparison of its recovery strategy with international recovery actions provided a clear understanding of the areas for intervention. Clear objectives for a Covid-19 Fund with a focus on financing SMEs by providing climate smart solutions and green transformation investments were developed to seek financial support from climate and other international funding agencies. Innovative financing options including bond and fund mechanisms were evaluated for kickstarting the economy and building resilience. A Trust Fund architecture was recommended as the next step to strengthen financial preparedness against socio-economic crises and build resilience to impacts of climate change.

Infrastructure investment is key to economic growth and yet the world is facing a widening infrastructure deficit. The existing pace of infrastructure development has been unable to meet the demands of a growing population. On the one hand it is positively influenced by globalization, higher literacy levels, digital transformation and economic and social initiatives to raise living standards; but, on the other hand, it is adversely impacted by climate change and the increased threat of natural and weather-related disasters. Investments in infrastructure will require a paradigm shift both in the mind-set and in the conception of developmental initiatives so that they are not viewed as the sole responsibility of the public sector but as a viable opportunity for the private sector to partner and share in its financial and social benefits. Global Best Practice Group’s expert was retained to research and develop a Green Finance Innovative Finance knowledge publication for the Asian Development Bank as a publicly available resource for leveraging public resources to catalyze private capital for climate resilient sustainable infrastructure.  The knowledge product, Reinvigorating Financial Approaches for Sustainable and Resilient Infrastructure in ASEAN+3, provides an overview of the infrastructure financing outlook and infrastructure financing needs and gaps assessment in SE Asia and the Pacific. It not only highlights the growing infrastructure and resource requirements, but also shares ingenious financial approaches that have been adopted in different geographies. It fulfills the need for a knowledge product that creates awareness on structuring project financing, strategic use of public funds, de-risking of investments and creating a green investment-enabled environment. A cross-section of global innovative financing mechanisms, both existing and evolving, ranging from blended finance structures to bonds are included, together with case studies, to illustrate how traditional financing systems have been remodeled to achieve project objectives and can be utilized to bridge the infrastructure gap.

Agriculture and natural resources (ANR) are an integral component of a nation’s wealth. They provide the foundation for human sustenance, livelihood and economic development activity. Global Best Practice Group’s expert was retained by the Asian Development Bank to undertake a study to provide justification for agriculture and natural capital investments made by multilateral development banks. The sustainability of ANR ecosystems can be achieved through a perpetual stream of investments that restore, revive, replenish and replace expended and utilized resources. The study reviewed empirical evidence of returns in the context of poverty reduction potential of ANR investments and creation of infrastructure for sustainability and social protection concerns. The relevance of natural capital valuation methodologies and quantification of ecosystem services was examined. Existing ground realities, approaches, and actions taken by policy makers and developmental agencies, including Multilateral Development Banks, towards investments in natural capital were reviewed in the context of the role of ANR ministries and the influence that they exerted on development agendas of government. Developed a framework for making ANR investments justifiable in terms of returns, tangible results, benefits, and positive impacts, that are acceptable to policymakers and investors. An ecosystems approach to integrated management and planning was suggested for natural resource utilization and conservation. Existing financing mechanisms for ANR projects and services were evaluated in terms of the investment strategy and expectations of the investors and new funding sources for the sector were proposed through an investment framework for specific investor groups.

Accelerated and substantial investment in adaptation and mitigation technologies are required to address the challenges of climate change and secure a low carbon and sustainable energy future. Active participation and investment of the private sector is critical for the transition to low carbon footprint, high resource sustainability, high energy efficient and climate-resilient economies. Global Best Practice Group’s expert was retained by the Asian Development Bank to identify a range of appropriate financing instruments to be applied to promote green growth in the agriculture, environment and natural resources sectors of SE Asian countries. Following a review of existing global and regional environmental capital markets and ADB’s public and private sector financing instruments, an Environment Sector PPP and private sector Investment Opportunities and financing options report was developed. A Strategic Financing Framework was proposed to support private sector involvement in climate change adaptation measures, technologies, and initiatives that provide sustainable solutions. Natural resource management, creation of climate resilient infrastructure, food security and GHG emission reduction were identified as the core concentration areas. Pilot projects for clean tech, capacity building and improvements in the regulatory framework were recommended. All pilots included a sustainable private sector investment component. Options and opportunities to introduce and scale up Public Private Partnerships for financing environment sector operations were also assessed and an Environment Investment Fund structure was recommended to finance climate proof and disaster risk resilient projects.

Global Best Practice Group’s expert was retained by the Asian Development Bank to evaluate financing options for climate – friendly agribusinesses in the GMS, determine needs, gaps, and key challenges for financing options for green infrastructure and technologies. Priorities were identified for action over the next five years on a regional basis. A comprehensive paper was presented at the GMS Climate Change & Environmental Sustainability Program and GMS Sustainable Agriculture & Food Security Program Consultative Workshops with GMS country partners to provide innovative financial mechanisms and resource mobilization initiatives for funding projects.