NARASIMHAN KASTHURI
COLOMBO/BENGALURU, OCT 15
The UN Sustainability and Program discussed the need for policy cohesion in building opportunities for sustainable growth and on harnessing the power of sustainable infrastructure for an equitable and resilient future.to drive financial inclusion. The conference was held in Colombo, Sri Lanka, in parallel to the fifth Forum of Ministers and Environment Authorities of Asia Pacific.
- If marginalized farmers must adopt solutions which enable safer alternatives to reduce impact on the climate, then there has to be innovations in financial solutions: Vijayaraghavan Palat, CEO of the Ooty based Lawrencedale Agro Processing India Pvt Ltd (LEAF)
- Agri-digitalization program can support financial and digital inclusion of the rural farmers community, provide greater market access and pricing transparency and encourage more sustainable farming practices: Kok Kee Lim, Mastercard’s Public Sector lead for Asia Pacific
This was discussed at the UN Science-Policy-Business Forum on the Environment for the Asia-Pacific Region (AP-SPBF), “Putting Sustainability into Gear In The Asia-Pacific Region”, organized by the UN Science-Policy-Business Forum (UNSPBF) and the UN Environment Program, in association with the Ministry of Environment of Sri Lanka recently.
According to Earth Negotiations Bulletin (ENB), part of the International Institute for Sustainable Development, the discussions focused on need for policy cohesion in building opportunities for sustainable growth and on harnessing the power of sustainable infrastructure for an equitable and resilient future.
Participants engaged on regulatory frameworks; how to finance equitable green growth in a changing environment; the economic and social impact of climate risk for enterprises; the future of energy transitions; digital infrastructure and transformation; and building strong foundations for circular economy infrastructure, the ENB highlighted.
At the Forum, Vijayaraghavan Palat, CEO of the Ooty based Lawrencedale Agro Processing India Pvt Ltd (LEAF) along with LEAF’s strategic partner Mastercard, said financial inclusion and agri-digitization solutions for marginalized farmers were being implemented which will enable the agriculture sector to adopt various climate change solutions.
“Agri-digitization is an important aspect for sustainability and inclusion for equitable green growth. There is a pressing need for financial institutions to bite the bullet in respect to the agriculture sector. If marginalized farmers must adopt solutions which enable safer alternatives to reduce impact on the climate, then there has to be innovations in financial solutions. The time is now,” Vijayaraghavan said.
Kok Kee Lim, Mastercard’s Public Sector lead for Asia Pacific, emphasized that agri-digitalization program can support financial and digital inclusion of the rural farmers community, provide greater market access and pricing transparency and encourage more sustainable farming practices. All these benefits are in line with the UN SDGs.
Speaking on the state of sustainable infrastructure investment in the Asia Pacific region, Erik Berglof, Chief Economist, Asian Infrastructure Investment Bank (AIIB), highlighted climate-performance linked debt and financing in local currencies among creative financing solutions and called for state-owned enterprises to lead by example in decarbonization and switching to renewable energy.
LEAF in partnership Mastercard has launched LEAF Farmer Network, which is engaging with millions of marginalized farmers in India and is bringing in sustainable and comprehensive livelihood financial inclusion solutions.
“LEAF was happy to be part of this important initiative and contribute towards financial inclusion solutions,” according to Vijayaraghavan.
The ENB further added that the participants welcomed the wide consultation processes facilitated by the UN-SPBF allowing industry, finance, government and civil society to address topics related to the green structural transformation, underscoring that a whole-of-society approach is required and much needed.
From the government perspective, representatives noted proactive measures taken by their governments, including on setting decarbonization goals, industry certifications, dialogue with industries, and initiatives for sustainable practices.
A discussion on pathways to overcome challenges and build opportunity through financing took up the need to ensure that financing for green growth doesn’t exacerbate existing socio-economic inequalities. Participants noted gaps in granular level data that organizations, as well as Small Island Developing States and the Least Developed Countries, can use. The discussion also highlighted the need for: public sector investment in capacity building; public-private partnerships to address the cost of financing and risk; and sharing of better practices and success stories amongst the private sector. Discussions included on the huge potential for green investment in the region, particularly on renewables, mobility, circular economy, and all aspects of the energy transition.
Speaking from the private sector perspective, participants spoke on the need for both incentives and compliance measures, and emphasized the need for comprehensive whole-of-government approaches, long-term thinking accompanied by short-term implementation plans, voluntary reporting frameworks, region-wide coordination and harmonization of policies across countries and effective policy tools such as carbon pricing accompanied by just transition measures that compensate low-income groups.
(Narasimhan Kasthuri was a veteran journalist with The Hindu and Financial Express covering business, IT etc. Now, in the US West Coast, he covers technology for NE. He can be contacted at @narasimhan.kasturi@yahoo.com, Mobile: +1 (650) 793-0056)
