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Asia – Pacific Regional Meeting

Bangkok, Thailand, 21-22/01/2019

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Session 1

Reports from members on SDGs

implementation + Report from 2018

UN-ESCAP SDGs Forum

3

Asia Pacific Regional CSO Engagement Mechanism (APRCEM)

Julius H. Cainglet

Vice President, Federation of Free Workers

Focal for Workers and Trade Union, APRCEM

Where APRCEM is present

• Wider reach in terms of constituencies

• = not only the nine (9) Major Groups

• = not only the ”Other Stakeholders”

• = 17 Constituencies

• 600+ organizations across Asia-Pacific have enlisted for the 17 constituencies

APRCEM has farther reach

• Main CSO Platform in Engaging the UNESCAP

• Co-organizes the CSO Forum on Sustainable Development

• Coordinator of CSOs at the Asia Pacific Forum on Sustainable Development (APFSD), the regional counterpart of HLPF

• Part of Screening Committee for CSO pax to APFSD and CSO Forum

APRCEM has farther reach

• Evolving Role as CSO Platform Engaging the UN Environment

• Regional UN Environment Summit in Singapore later this week

• Major Groups and Other Stakeholders Forum to happen prior to the Ministerial Meeting in coordination with APRCEM

• One of the partners of the UNDP in the region

APRCEM is looking at ways to improve

• APRCEM evaluation• Two-track evaluation as to its processes, quality of

engagement, representation, efficacy

• APRCEM in transition• New APRCEM Regional Coordination Committee (RCC)

elected; fresh mandate for workers and trade union focal

• 6 other constituencies have yet to select a focal after failing to achieve the threshold

• Strategic Planning and election of Co-Chairpersons will be done once the RCC is complete, right after APFSD

APRCEM immediate plans

• Campaign for the online registration of ITUC affiliates to the APFSD and CSO Forum (12 hours ago)

*Hopefully there will be an extension

• CSO Forum = 24-26 March

• APFSD = 27-29 March

• APRCEM Planning = 30-31 March

• CSO Forum Agenda & APFSD up for discussion in a few weeks

APRCEM immediate plans

• ITUC/ GUFs/ Workers Groups can suggest Sessions at the APFSD and CSO Forum

• APFSD Plenary Sessions, Parallel Sessions and Side Events

• Suggest/ Volunteer as speakers, reactors

• CSO Forum Plenary Sessions and Workshops

• Lead in the Conduct

• Suggest/ Volunteer as speakers/ reactors

• Co-organize Sessions, Side Events, especially with the ILO

APRCEM new formations

• New “Constituency” will probably be created in March

• Dalits

• We can suggest a Just Transition Working Group

• New “Working Group” will be created in March

• Education Working Group

ITUC Role in APRCEM

• APRCEM asks if ITUC can co-host the CSO Forum

• Help organize Events

• Perform Secretariat Tasks

• Hopefully, another trade union can take on the focal organization role next term

Thank You!

Julius H. Cainglet

Vice President, Federation of Free Workers

Focal for Workers and Trade Union, APRCEM

14

BREAK

UN Reform process and the role of trade unions

Pong-Sul Ahn

ILO Regional Specialist in Workers’ Education

ILO ROAP Bangkok

The 2030 Agenda for Sustainable Development

UN Reform initiativeReiterate the reform initiative by the UNGA Resolution concerning “Repositioning of the United Nations development system in the context of the quadrennial comprehensive policy review of operational activities for development of the United Nations system” adopted on 31 May 2018

To enhance the capacity of UNDS to better support member states to implement the 2030 agenda

To provide guidance to the SG and the UNDA

The Resolution is binding for UN entities but not for specialised agencies like ILO

Member states anticipate its implementation by all UN agencies – funds and programmes

UNSDG results groups

SDG implementation

Strategic financing

Business innovation

Strategic partnerships

SDG Results Group

UN Reform

Agenda

Development

reformManagement reform

Peace & Security reform

Gender disparity

Dept of management strategy, policy and

compliance

Dept of operational support

Reform agenda

Preparing the transition

Transition team under the responsibility of Deputy SG

Time period

• Some operational from January 2019

• To be completed within 2 – 4 years (by 2022)

Transfer of the UN Development Operations Coordination Office (UNDOCO) from UNDP by 1 Nov 2018

Two UN regional architecture by May 2019

• One of UN multi-country offices

• UN regional architecture – ECOSOC Operational activities

Repositioning of the UN development system (UNDS)

Strengthening a new generation of United Nations country teams

Reinvigorating the role of the resident coordinator (RC) system

Revamping the regional approach

Mobilising Funds to support the United Nations development system

1

2

3

4

Collaborative leadership capabilities

Knowledgeable on policy, data, innovation and

partnerships

Deep understanding of

national policy and institutions

Decision making over UNDAF priorities and

UNDAF implementation

Strong sustainable

development background

Decision-making over in-country pooled and joint funds

Ability to work across the

Nexus

Abreast of emerging and

frontier issues and their implications

for the SDGs

RC

• The RC system managed by the UNDOCO operational as of 1 Jan 2019

• Significantly underfunded; a phased approach to the staffing and the expansion of UNDOCO, requiring US$255 million per year

• At the 1st phase, RCO will be staffed with RC, 3 national professionals positions and 2 GS staff

• ILO recognises the leadership role of the RC

Reinvigorated RC system

Business Innovation Group

Mutual Recognition Statement

• UN country team (UNCT) common back office

• Formation of common service centers

• Increase the number of UN common premises

Business operations strategy

• To facilitate the administrative support activities

• Create cost-saving

• Foster collaboration across UN entities

• Ensure appropriate consistency and compatibility

Objectives

• According to the best practices in terms of policies and procedures

Coherence between DWCP and UNDAF

1. Delivering the UN as One

2. Management structure

- One Leader

- One budget

- One UN House

3. Programming

- UN Development Assistance Framework (UNDAF) as a single country

programme

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One UN House

• A goal for 50% of UN premises to relocate in common UN premises by 2021 (non mandatory)

• Establish common back offices for all UN country teams by 2022

• ILO assesses the feasibility of relocation on the case by case basis (like CO-Hanoi)

- Constituents’ access and identity issues- Suitable consultation space - Maintaining the ILO identity

Source mobilisation & partnerships• UNDAF is central for the implementation of SDGs and the

reformed UNDS

• An increased use of UN pooled funds at country and global level

• UNSDG trust funds being set up for joint initiatives and programmes in January 2019

• Private sector engagement and PPPs [ILO field offices encouraged to engage with employers’ and business organisations to mobilise funds

31%

25%

18%

10%

9%7% Asia and the Pacific

Africa

Global

Americas

Asia-Pacific as the region of the largest portfolio out of 538 DC projects of ILO in 2018

UN partnerships

Revamping regional approachLong-term re-profiling and restructuring of UN

regional assets

• Rationalising certain functions of UN Regional Economic Commissions

• a wider group of UN presence

Implications of the UN reform for ILO

• ILO GB (Oct 2018) decided to review implications, challenges and opportunities of UN reform for ILO to preserve:

a. ILO’s tripartite governance structure- The specific role of social partnersa. Normative mandate for standard-setting and supervisory

mechanismsb. Programmatic priorities (DWCP)

• Requested the DG to organise regular consultations with the constituents on the implication of the UN reform

• To review the demands of ITUC and IOE to be granted as observer status in the UNGA

• Approved a doubling of ILO’s co-sharing up to US$4.35 million for 2019

Opportunities and challenges for ILOOpportunities for ILO

• To demonstrate its unique mandate and value-added of tripartism and social dialogue to a wider audience

• To expand its influence to promote decent work and ILS

• To engage constructively with the reform process – new RC system and new partnership opportunities

Challenges for ILO

• ILO’s tripartite governance structure and the specific role of social partners in decision-making

• Independent functioning of ILO supervisory mechanisms at country level

• Programmatic priorities (DWCP)

ILO work where is no office

• As of August 2018, UN has UNCTs in 136 countries [ILO is a member in 99 out of these

• ILO has 36 country offices, plus 21 national coordinators (NCs) and operation of DC projects (CTAs) in some countries

• To participate NCs and CTAs in UNCT meetings

Normative work of ILO• Decent work for all as a means

- Forthcoming UNDAF guidance (Jan 2019) expected to provide an opportunity for ILO and its DW agenda

• Rights-based approach of the 2030 agenda

- Not changing ILO mandate and responsibility to promote ILS

• ILO/Turin developing a training package for RCs

DWCP and its relation to UNDAF• DWCP as a tripartite process and a strategic

document for ILO delivery;

• Tripartite expression of national priorities in the world of work, which contributes to UNDAF;

• Constructive engagement of ILO in UNDAF processes to ensure coherence

UN reform and ILO

ILO DG – member of the UNSDG core group, which provides strategic governance and oversight, composed of the heads of 12 largest UNSDG entities

ILO DG – co-chair UNSDG Strategic Partnerships Results Group

ILO – member of the UNSDG Advisory Group for the UNDS repositioning

ILO is one of five UN agencies represented on the UN Joint Fund’s Executive Board

ILO is supportive for the UN reform

THANK YOU

40

Session 33.1 UN AP Forum on Sustainable

Development 2019by

Riccardo Mesiano Environment and Development Division UN-ESCAP

3.2 Cooperation with AP-RCEM and next plans for 2019 +Trade union

Engagement Strategy HLPF 2019

6th Asia Pacific Forum on Sustainable Development (APFSD)

Riccardo MesianoEDD/ESCAP

I. The High-Level Political Forum - HLPF

» Global platform for follow-up and review of the SDGs

2019 Empowering people and ensuring inclusiveness and equality

PROGRESS: on addressing poverty, hunger & malnutrition

CHALLENGES REMAIN: environmental stressors impact health; lack of social inclusion; public & private resources must be leveraged; lack of official statistics, data and effective monitoring systems; access to science and technology must improve.

II. Asia Pacific Forum on Sustainable Development (APFSD)

FUNCTION

OF THE

FORUM

Support preparations for the HLPF Support countries & enhance their capacity for

implementation of the 2030 Agenda

INCLUSIVE &

INTERGOVERNMENTAL

• contributions of UN agencies & organizations at (sub)regional level

• inter-agency support through UN AP RCM• space for multi-stakeholder engagement, civil society & youth

Provide regional perspective, identify regional trends, share best practices and lessons learned

Support follow-up and review, assess progress and enable peer learning related to HLPF themes

Support presentation of VNRs, review progress of regional road map

strengthen regional cooperation on priority issues

enable continued and more efficient and coordinated support

facilitate more effective knowledge sharing

III. APFSD : A Regional Road Map

EXPECTATION

PRACTICAL MEANS OF IMPLEMENTATION

Data and statistics Technology Finance Policy coherence

North-South, South-South, international & regional partnerships

THEMATIC AREAS

OF COOPERATION

WITH MULTISECTORAL IMPACTS

Leave no one behind DRR & resilience Climate change

Natural resource management Connectivity Energy

IV. APFSD 2019: sustainable & resilient societies

27-30 March 2018, Bangkok

“Empowering people for a more inclusive and equal Asia-Pacific”

5 goals under review

Support to VNR Preparations

•Organized in all 5 sub-regions of ESCAP – in September and October 2018

•Facilitated dialogue among experts, public servants, researchers, other stakeholders and the UN system

•Link national, sub-regional, regional and global processes

•Enhance awareness and understanding of the theme of the upcoming HLPF

•Strengthen follow up and review – peer learning sessions on the VNR process

V. SUB-REGIONAL PREPARATORY MEETINGS

6th APFSD

Preparatory meeting to the HLPF, inclusive and intergovernmental

Thematic review of progress based on the theme: “Empowering people and ensuring inclusiveness and equality”

In-depth review of the cluster of goals:

◦ Roundtables:

◦ Review Goal 17on the means of implementation – every year

◦ Address interlinkages across goals

Follow up and review of national progress and achievements through VNR session (and panel discussions and innovative spaces such as the VNR Café) and Roadmap session

Engagement space

Pavilion of partnerships and Side Events

https://www.surveygizmo.com/s3/4748158/Call-for-Proposal-APFSD-2019-Side-Event

http://www.unescap.org/events/apfsd6

To be preceded by a series of events (SIDA, UNV, RCM)

March 27-29, 2018

Bangkok

Thank you

Trade Union engagement on SDGs

OCM 2018 50

Context (I)

Milestones

• In 2015, countries adopted the 2030 Agenda for SustainableDevelopment and its 17 Sustainable Development Goals;

• In 2015, as well, countries adopted the Addis Ababa Action Agendathat established a strong foundation to support the implementationof the 2030 Agenda for Sustainable Development, by aligning allfinancing flows and policies with economic, social and environmentalpriorities.

• In 2016, the Paris Agreement on climate change entered into force,addressing the need to limit the rise of global temperatures.

Premised on the recognition of a mutual dependence of environmental,economic and social sustainability, the above 3 provide the frameworkfor achieving sustainable and resilient societies by 2030.

At the corridors of the UN more and more the Agenda 2030 is referredas the new Global Social Contract.

Meeting Name 51

Context (II)

BUT…

• Three years down the line, countries are not on track to achievethe Sustainable Development Goals by 2030 - obstacles remain ineradicating poverty and reducing inequalities, addressing climatechange, ensuring decent work and building peaceful and inclusivesocieties for all.

• Increased involvement of the Private Sector - Governments andthe UN are striving for increased commitment of the private sector tofinance the SDG implementation. Along with this, many governmentsexpect the SDG engagement of companies to lead to greater socialand environmental awareness in business strategies.

Thus, the urgent need for an active engagement of progressivevoices and visions such as the trade unions one.

OCM 20158 52

The 2019 High Level Political Forum (I)

• The High Level Political Forum (HLPF) in 2019 will address thetheme, 'Empowering people and ensuring inclusiveness andequality' and will conduct an in-depth review of the followinggoals (in addition to SDG 17 which is reviewed every year):

• In 2019, 3 out of the 6 priority SDGs for ITUC/TUDCN will beunder review. But the critical moment for us, trade unions,comes with the review of SDG 8 on promoting sustained,inclusive and sustainable economic growth, full andproductive employment and decent work for all.

OCM 20158 53

SDG8 – Key Targets

• 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services;

• 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value;

• 8.7: Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms;

• 8.8: Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment.

OCM 20158 54

HLPF 2019 Engagement Strategy

Building blocks:

Objective:• Influence the narratives of the HLPF 2019 related

processes, including the HLPF 2019 Ministerial Declaration, around the goals under review.

National implementationand monitoring


OCM 20158 55

HLPF 2019: Outcomes and related activities

At NATIONAL Level:

• Trade Unions are invited to national consultations on the Agenda 2030 → Active engagement with national governments and demanding trade unions involvement in 2030 Agenda national plans implementation;

• Trade Union priorities and demands receive echo in the government’s initiatives on Agenda 2030

→ Foster social dialogue as a way to implement the SDGs with governments and employers → Engage with the International Labour Organisation (ILO) and with other international agencies in your country;

• Trade Unions are invited to join the official governmental delegations to HLPF 2019

→ Trade Unions are involved in government preparations towards the 2019 HLPF, namely in the run up for the reporting process;

• Other relevant policy actors (i.e. broader civil society organisations) are interested and support the Trade Union priorities and demands

→ Participate in multi-stakeholder platforms and alliances for 2030 Agenda implementation;

• Trade Unions contribute to SDGs implementation → SDGs county reports produced, showing challenges and trade unions actions.

OCM 20158 56


At REGIONAL Level:

Outcomes & Activities:

• Trade Union priorities and demands receive echo and are incorporated in the regional UN mechanisms on Agenda 2030:

→ Support trade union delegations and participation in UN regional mechanisms for 2030 Agenda monitoring, review and follow-up;

→ Take part in regional CSOs coordination mechanisms on 2030 Agenda implementation;

→ Advocate trade union priorities to regional bodies dealing with 2030 agenda (ECLAC, UNECA, ESCAP, UNECE).

OCM 20158 57


At GLOBAL Level (I):

Outcomes & Activities: Trade Unions key priorities are visible and their engagement in the

lead up to 2019 HLPF is ensured:→ Trade Unions submission to 2019 HLPF;→ ILO led Experts Group Meeting, April 2019: Multi-stakeholder thematicdialogue.

Participation and Visibility of trade unions is ensured in the review inthe 2019 HLPF:

→ Coordination delegation to the 2019 HLPF;→ Speaking slots during both thematic and ministerial segments ensured;→ Conceptualise and organise at least two-side events during the 2019 HLPFs –one of them being the Workers and Trade Unions constituency official side-event;→ Dissemination of the national SDGs trade union reports;→ Possible thematic report on Goal 8.

OCM 20158 58


At GLOBAL Level (II):

Outcomes & Activities:

• Trade Unions have a prominent role in the Major Group and Other Stakeholders mechanism:

→ Engage in the preparations of the HLPF 2019, including, engagement in the MGoS VNR process, in which collective statements are produced;

→ Actively engage in the ECOSOC’s review of the HLPF mechanism.

• Trade Union priorities are incorporated in the Ministerial Declaration:→ Coordinate national and global advocacy towards the drafting and negotiations around the HLPF 2019 Ministerial Declaration, as well as with GUFs;

→ Participation in the MGoS advocacy task force: monitoring of the negotiations, sharing intelligence with affiliates and gathering inputs.

OCM 20158 59

HLPF 2019: Deliverables

Key deliverables:

• At least 15 national SDGs trade union reports, and, eventually,additional updated reports. The TUDCN Secretariat suggestion is to atleast prioritise the following countries and trade unionrepresentatives within:Burkina Faso, Cambodia, Chad, Central Africa Republic, Chile, Congo (Republic

of), Côte d’Ivoire, Fiji, France, Ghana, Guatemala, Indonesia, Israel,Kazakhstan, Lesotho, Mauritius, Mongolia, Nauru, New Zeland, NorthernIreland, Pakistan, Palau, Philippines, Tanzania (United Republic of), Timor-Leste, Tonga, Tunisia, Turkmenistan, United Kingdom of Great Britain andNorthern Ireland, Vanuatu, South-Africa.

• A report on Goal 8 – trade unions review of Goal 8 targets on decentwork;

• An HLPF 2019 submission – trade unions position paper;

• One trade-union side-event in the official agenda.

OCM 20158 60

HLPF 2019: Calendar of Engagement

Activities Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19

Contribute to HLPF review

Ongoing work with the MGoS

Ongoing work with the ITUC-TUDCN members

around Agenda 2030 (lobby and advocacy work

at national level)

Develop HLPF 2019 submission

Dissemination of HLPF 2019 submission

Webinar with TUDCN interested Members

Coordination of the drafting of the national

SDGs trade union reports

Contributions to the FFD Inter-Agency Task

Force report (chapter on Private Finance may

address Future of Work issues, in line with

SDG8)

Participation at High-Level Committee meeting

on SDG8 - Decent Work / Future of Work

High-Level Meeting of the PGA (ILO's 100th

Anniversary / SDGs)

ILO Conference 2019 (Philadelphia Declaration +

new Declaration on the Future of Work)

Coordination of ITUC delegation to HLPF 2019

(logistics and engagement)

Monitoring and contributions of the Ministerial

Declaration text

Contribution to VNR statements from MGoS

Conceptualisation and submission of ITUC side-

event initiatives

Trade Union participation at the 2019 HLPF

Participation to the High-Level Segment on SDGs

+ Summit on the Future of Work at Ford

Foundation

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62

Session 4Presentation of the trade union SDGs

country report template

63

Trade union priority SDGs

64

Trade union FOCUS on SDGs

65

Global

Regional

National

Levels of Involvement

HLPF, NYmid-July

UN-ESCAP, BKK26-27 March

UN-ECLAC, MX22-26 April

UN-ECA, Addis16-18 April

UN ECE, GVA21-22 March


66

Trade union country reports on SDGsSDG1 End poverty in all its forms everywhere

1.1 By 2030, eradicate extreme poverty for

all people everywhere, currently measured

as people living on less than $1.25 a day

1.1.1 Proportion of population below the

international poverty line (1.9 USD), by sex,

age, employment status and geographical

location (urban/rural)

1.1.T1 Employed persons living below the

nationally-defined poverty line by sex and

age

1.1.T2 Percentage of people living in poverty

on 3,2 USD a day

67

Trade union country reports on SDGsSDG5 Achieve gender equality and empower all women and girls

5.4 Recognize and value unpaid care and

domestic work through the provision of public

services, infrastructure and social protection

policies and the promotion of shared

responsibility within the household and the

family as nationally appropriate

5.4.1 Proportion of time spent on unpaid

domestic and care work, by sex, age and

location

5.4.T1 Informal employment as percentage of employment by sex (See: female total informal employment Labour Force Survey)

68

Trade union country reports on SDGsSDG8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

8.8 Protect labour rights and promote safe and

secure working environments for all workers,

including migrant workers, in particular

women migrants, and those in precarious

employment

8.8.1 Frequency rates of fatal and nonfatal

occupational injuries, by sex and migrant status

8.8.2 Level of national compliance of labour

rights (freedom of association and collective

bargaining) based on International Labour

Organization (ILO) textual sources and national

legislation, by sex and migrant status

8.8.T1 Number of trained labour inspectors as a

ratio of workforce

8.8.T2 Ratification of ILO Conventions Freedom

of Association and CB

8.8.T3 Collective bargaining coverage

8.8.T4 Trade union density

69

Trade union country reports on SDGsSDG10 Reduce inequality within and among countries

10.4 Adopt policies, especially fiscal, wage and

social protection policies, and progressively

achieve greater equality

10.4.1 Labour share of GDP, comprising wages

and social protection transfers

10.4.T1 Share of top 10% income earners in

overall GDP

10.4.T2 Share of bottom 20% income earners in

overall GDP

10.4.T3 Minimum wage as % of the median

wages

= minimum wage / median wage x 100

70

Trade union country reports on SDGsSDG13 Take urgent action to combat climate change and its impacts

13.2 Integrate climate change measures into

national policies, strategies and planning

13.2.T1 Integrated policy/strategy/plan to adapt

to:

1) the adverse impacts of climate change

2) low greenhouse gas emissions

13.2.T2 Existence of national and/or sectoral

dialogues engaging social partners to achieve a

Just Transition.

71

Trade union country reports on SDGsSDG16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

16.10 Ensure public access to information and

protect fundamental freedoms, in accordance

with national legislation and international

agreements

16.10.1 Number of verified cases of killing,

kidnapping, enforced disappearance, arbitrary

detention and torture of journalists, associated

media personnel, trade unionists and human

rights advocates in the previous 12 months

72

Trade union country reports on SDGs: independent monitoring system

→ Mobilize national organisations’ involvement on

SDGs implementation with their governments

→ Provide evidence, collecting relevant data, using

indicators and analysis

→ Exposing weak compliance to trigger policy

change

73

Examples

→ Venezuelan trade unions undertake awareness-raising activities among its

members and liaises with government authorities and parliamentarians to advocate

about trade union priorities for SDG implementation;

→ Zimbabwe unions held a National Stakeholders Conference on SDGs attended by

critical Ministries implementing SDGs, ILO, trade unions, UN Agencies, members of

Parliament and employers organisation, which lead to the creation of a national

dialogue platform for learning and sharing on the role of various national

stakeholders in mainstreaming SDGs in national processes and national

development plans and policies;

→ Costa Rican trade unions signed a National Pact with the national government, with employers and civil society to advance SDG implementation , committing contribution to SDG achievement.

74

Closing of first day

Day 2!

Asia – Pacific Regional Meeting


76

Session 5The role of private sector in development: the Asian Development Bank approach on

blended finance to foster Agenda 2030by

Smita Nakhooda and Lesley Lahm, ADB Strategy Department, and Haidy Seang Ear-

Dupuy, ADB Sustainable Development and Climate Change Department

Blended finance for Agenda 2030

ADB’s Approach

TUDCN ASIA-PACIFIC MEETING22 Jan 2019

ADB’S APPROACH TO BLENDED FINANCE

To achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

ADB’sSTRATEGY 2030 VISION

What is Blended Concessional Finance?

“Combining concessional finance from donors or third parties alongside DFIs’ normal own account finance and/or commercial finance from other investors, to develop private sector markets, address the Sustainable Development Goals (SDGs), and mobilize private resources”

- DFI Working Group (October, 2017)

What is Blended Concessional Finance?

Blended Finance

Sponsors / Investors

Concessional Fund

Donor / Contributor

Commercial Banks / Lenders

Development Finance

Institutions (DFIs)

Public and Private Commercial Finance

Projects / Companies

Debt, equity, guarantees, mezzanine, equity EquityDebt, equity, guarantees, mezzanine

Asian Development

Bank

Concessional Commercial Commercial Commercial Commercial

Public Private Private

Mobilized Finance

Blended Concessional Finance Principles

Additionality – transactions should demonstrate a need for BF, and should not be able to proceed solely on a commercial basis

1

Development Finance Institution principles have been adopted for the use of blended concessional finance

Crowding-in – BF should attract additional financing (private sector / DFIs / other)

2

Commercial sustainability – interventions should lead to improved commercial viability, not permanent subsidy

3

Reinforcing markets – BF should address market failures, and minimize the risk of disrupting/ distorting markets or crowding out private finance

4

Promoting high standards – the use of public funds should support high standards of corporate governance, environmental impact, social inclusion, transparency, integrity, and disclosure

5

“Private Sector Development Institutions Roundtable DFI Guidance for Using Investment Concessional Finance in Private Sector Operations”, 12 March 2013. Accessed online (5 March 2018) at: http://www.ebrd.com/downloads/news/roundtable.pdf

Why use Blended Concessional Finance?

• Achieving development impact through:• Blending concessional capital with regular OCR to bring

high development impact projects to market

• Mobilizing private capital for individual projects, and demonstrates proof of concept for longer term mobilization

• Encouraging private sector to invest in innovative projects and catalyzes transactions that would not proceed in the absence of concessional finance

Blended Concessional Finance Facilities

ADB

Market-Priced Financing

Canadian Climate Fund for the Private Sector in Asia II (2017)

($150 million concessional debt facility for climate and gender, pan-Asia)

Concessional Financing

Leading Asia's Private Sector Infrastructure (LEAP) Fund (2016)

($200 million of concessional co-financing vehicle for private sector infrastructure, Pan-Asia)

Climate Investment Funds (2012)($350 million concessional financing programs in

Indonesia, Thailand, Philippines, India)

geothermal

renewables

off-grid solar

agribusiness

Canadian Climate Fund I for the Private Sector in Asia (2013)

($82 million concessional debt facility for climate mitigation and adaptation, pan-Asia)

Projects

Blended Concessional Finance Programs

• ADB’s Private Sector Operations Department manages $735 million of concessional financing through nine blended finance funds and programs.

• Since 2012, PSOD has financed 15 transactions using a blended finance approach, including renewable energy projects in Cambodia, Georgia, India, Indonesia, Samoa, Thailand, Vietnam and a Southeast Asia regional project.

Project Examples

Samoa: Solar Power Development Project (2018)

Provided financing up to $3 million to expand the existing 2.2 MW solar farm in operation since 2015.

The expansion is expected to increase energy yield of up to 6 million kWh per year.

Blended finance components:

• Concessional loan ($1 million) and project preparatory technical assistance grant ($0.225 million) from the Canadian Climate Fund for the Private Sector in Asia alongside ADB financing,

Approved by ADB in 2017

Project Examples

Cambodia: Solar Power (2017)

The Project supports construction and operation of the first utility-scale solar power project in Cambodia with capacity of 10 MW

.The project is the first utility-scale solar power plant in Cambodia, and the first competitively tendered renewable energy IPP project in the country.


• ADB provided long-term concessional debt financing ($3.25 million) from the Canadian Fund for the Private Sector in Asia alongside its own financing.

Approved by ADB in 2016

Project Examples

Indonesia: Rantau Dedap Geothermal Power Project - Phase 1 (2013)

$174 million project targeting early stage geothermal drilling and exploration

Supported Supreme Energy Rantau Dedap, a geothermal IPP in South Sumatra, during high risk resource exploration phase


• $50 million concessional loan from the Clean Technology Fund (CTF) accessed by ADB

• Max 4 year tenor with bullet repayment

Approved by ADB in June 2014

Strategy 2030 and the SDGs

Making cities

more livable

Promoting rural

development and food

security

Strengthening

governance and

institutional capacity

Addressing remaining

poverty and reducing

inequalities

Accelerating progress

in gender equality

Tackling climate change,

building climate and

disaster resilience, and

enhancing environmental

sustainability

Fostering regional

cooperation and

integration

“ADB’s future operations will be designed to help developing member countries meet the SDGs”

Strategy 2030 priorities and integrated approaches reflect SDGs.

Results framework targets reflect SDGs

Deepening ADB’s contribution to Agenda 2030 through Strategy 2030

Enhance tracking and quantification of ADB contribution to SDGs

Deeper engagement with

countries on SDG priorities

and opportunities to

accelerate progress

Possible special financing

e.g. SDG Bonds, Special

Funds and/or Technical

Assistance programs

RAISING ENVIRONMENTAL AND SOCIAL STANDARDSADB’s APPROACH

Overarching Objectives

• Avoid adverse impacts of projects on the environment and people, where possible;

• Minimize, mitigate, and/or compensate forimpacts when avoidance is not possible; and

• Help borrowers/clients to strengthen systems and capacity to manage environmental and social risks.

Scope

• Applies to all ADB-financed and/or ADB-administered projects and components (sovereign and non-sovereign) regardless of the source of financing

ADB’s Safeguard Policy Statement

• Environmental Impact Assessment/ Initial Environmental Examination/ Environmental Management Plan, Resettlement Plan, Indigenous People Plan

Standard Project

• Environmental Assessment and Review Framework, Resettlement Framework, Indigenous people planning framework

Sector, Multi-tranche Finance Facility,

Emergency Assistance

• Matrix of potential impacts of policy actionsPolicy based lending

• Environmental and social management system ++Financial Intermediaries

• Program safeguard assessment and Project affected person assessment Results based lending

Lending Modalities and Safeguard Requirements

Environmental Safeguards

Objectives

• Ensure the environmental soundness and

sustainability of projects.

• Support the integration of environmental

considerations into the project decision-

making process.

Scope and triggers

• Environmental safeguards are triggered if a

project is likely to have potential

environmental risks & impacts.

11 principles

Involuntary Resettlement (IR)

Objectives

• Avoid IR, wherever possible

• Minimize IR by exploring alternatives

• Enhance or at least restore livelihood in real terms

• Improve standards of living of poor/ vulnerable.

Scope and triggers

• Covers physical displacement

& economic displacement as a result of:

a) involuntary acquisition of land, or

b) involuntary restrictions on land use or access to

legally designated parks and protected areas.

• Covers losses and involuntary restrictions that are full or

partial, permanent or temporary.

12 principles

Indigenous Peoples (IP)

Objectives

• Projects foster full respect for IP identity, dignity, human rights,

livelihood systems, & cultural uniqueness, so IPs:

a) Receive culturally-appropriate social

& economic benefits,

b) Do not suffer adverse impacts

c) Participate actively in projects

Scope and triggers

• Project that directly or indirectly affects the dignity, human

rights, livelihood systems, or culture of IPs; or

• affects the territories or natural or cultural resources

that IPs own, use, occupy, or claim as an ancestral domain or

asset.

9 Principles

ADB's Commitment to Labor

• Strategy 2030’s commitment to Core Labor Standards (CLS)

• Social Protection Strategy (2001) • Social Protection Operational Plan (2014-2020)

• OM C3: Incorporation of Social Dimensions into ADB Operations(2010)—Subject to compliance review

-IPSA and SPRSS reports on CLS due diligence

• Safeguard Policy Statement (2009)• ADB and CLS in Practice

• RRP• PAM• Loan Covenant• Bidding Documents• FIDIC Conditions of Contract (2010)• Gender Action Plan – as it pertains to labor discrimination• For FI-ESMS

www.adb.org

• Lesley Lahm, Advisor and Head, Interagency Relations and Nonsovereign

Operations Unit, Strategy Policy and Review Department (SPD)

• Smita Nakhooda, Senior Results Management Specialist, SPD

• Haidy Seang Ear-Dupuy, Senior Social Development Specialist (Core Labor

Standards), Sustainable Development and Climate Change Department (SDCC)

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100

Session 6Criteria for Private Sector Engagement

102

Session 7Discussion on HLPF 2019 Workers and Trade

Unions submission+

Breakout groups

103

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104

Session 8Next global and regional initiatives of the

AP-TUDCN + Final Conclusions

See you soon!

Thank you!

TUDCN Open Coordination Meeting
