Principal Strategic Documents:
- Investment strategy 2019-2023, presenting the investment strategy on climate change:
“Over the strategy period, BIO will develop its assessment of risks and vulnerabilities associated with climate change and how they can be best mitigated through appropriate mitigation or adaptation measures. BIO will work on four dimensions:
1) Engage our clients to go beyond IFC performance standards compliance and identify solutions for increased efficiency in the use of natural resources. To achieve this, BIO shall:
– Make a “Climate scan” per investment sector and geography to understand where risks and opportunities lie in BIO portfolio.
– Propose an audit to select higher-risk clients to identify potential for mitigation and/or adaptation actions. BIO would support such audits with the Business Development Support Fund.
– Create a concise climate change check list per investment sector in order to facilitate the communication with the client, investigate prevention / mitigation measures that are taken or can be taken by the client regarding climate change impacts and raise awareness on efficient and sustainable use of natural resources (water, energy, raw material…) and waste management
– Propose technical assistance to financial institutions to structure green financing instruments and hence facilitate the end beneficiaries in their energy transition.
– Increase staff awareness through trainings and case study presentations; The Business Development Support Fund will play a role in providing subsidies or direct support programmes to help prospective and portfolio companies to undertake measures to mitigate their emissions or increase climate change resilience.
2) Pursue our investment in clean energy projects with an objective to invest at least €150M in 15 projects over the strategy period. This would include renewable energy projects and funds (including hydro, solar, wind, geothermal based energy) as well as energy efficiency projects. It is important to note, however, that an important level of capital is currently available from other public funders, including blended financing, and that well-developed projects at market conditions are increasingly difficult to find. The role of BIO is therefore not only contained on € volume but also on supporting small projects (up to 10MW), that raise less appetite from other funders in view of their size and complexity, yet still meet an acute need in our targeted countries.
3) Expand our investment scope in sectors combating climate change. BIO will, in particular, expand its investment scope to:
– Off-grid renewable energy projects which, in view of the low maturity of the industry and lack of return, would probably fall under the code 5 vehicle;
– Sustainable forestry projects (including reforestation and sustainable forest management) that capture carbon emissions and avoid their release;
– Investments to improve the use of natural resources as well as smart technology.
4) Mitigate financial risk of projects highly sensitive to natural disasters (for instance, in agribusiness and renewable energy) by identifying insurance covers, creating buffers in financial projections to allow for an adaptation period after a natural disaster (typhoon, drought, etc), supporting emergency measures (new liquidity lines and standoff period for loan repayment) as well as sensitise financial institutions and funds in taking adequate measures for their end-beneficiaries.”
Key reports and other materials published by the institution: