DFIs to invest in climate change opportunities in Sri Lankan firms
The Solidaridad Network, an international civil society organisation advocating sustainable supply chains, has plans to bring investors to Sri Lanka, specifically addressing opportunities in climate change.
“We aim to bring in Development Financial Institutions (DFIs) to address the issue of carbon, creating awareness amongst plantations, and agro-processing companies about climate change,” Dr. Shatadru Chattopadhayay, Managing Director Solidaridad Asia told the Business Times in an interview recently.
He said in this process, the Sri Lankan companies will have multiple windows and opportunities to meet their financial commitments through DFIs such as International Financial Corporation (IFC), FMO (the Dutch Entrepreneurial Bank), and the Rabobank, a cooperative bank headquartered in the Netherlands embracing innovation, growth, and sustainability. “These entities are already in discussion with us. They will explore the role the Sri Lankan companies can play to reduce their emissions and to explore if they can monitor the work these firms are doing on this behalf,” Dr. Chattopadhayay added.
Solidaridad is also trying to sensitise the local companies from an environmental, social, economic perspective and emission transmission perspective going forward.
Dr. Chattopadhayay said Solidaridad is currently collaborating with companies that understand their current level of emissions, and what technology and practice they should adopt so that those emissions can reduce while also building their capabilities to implement these initiatives.
“These companies will also require investors to work on these aspects. We are working with development financial institutions, multilateral financial institutions, banks, and other impact investors to put in the money and show that there is an opportunity to get commercial returns and an environmental/social impact.” Through this, Solidaridad aims to help create new market access for the produce or products of these companies.
Dr. Chattopadhayay also said that Solidaridad is working with the government on policy initiatives. “There may be tax incentives for these companies etc. The bottomline of this initiative is a special anchor to meet Nationally Determined Contributions, or NDC targets for mitigating the greenhouse gas emissions that cause climate change, for adapting to climate impacts, and also to help generate profits for the companies. We are also looking out for the workers who are rarely entrenched by the benefits of this climate financing while ensuring a monetary return to the smallholders.”