Regional: Scaling Up Private Sector Participation and Use of Market-Based Approaches for Environmental Management

Agriculture, natural resources and rural development / Forestry

Public sector management / Public administration

Water and other urban infrastructure and services / Urban policy, institutional and capacity development

The TA will build on RDTA 41273-1: Preparation of the 2010 Asia Environment Outlook, which reviewed the country policy frameworks in the region in the context of the preparation of the Green Growth Resources and Resilience Report.

First the TA will undertake a global and regional review/stocktaking of the development and application in both advanced and developing countries of (i) market-based instruments for environmental management such as green taxes, pollution charges, targeted subsidies, tradable permits, liability rules, bonds, and deposit refunds schemes among others; and (ii) other flexible policy instruments, quasi standards and voluntary arrangements for environmental management such as environmental management standards, codes of conduct, sustainability reporting, public disclosure of corporations' environmental performance, the ISO 14000 series, and others. Policy dialogue and preparation of roadmaps for the development of MBIs and other flexible policy instruments will also be supported in a 2-3 participating DMCs. The aim is to analyze experience, document and share lessons and good practices and understand the applicability and potential expansion of different policy instruments in the Asia-Pacific region.

Second, the TA will prepare and organize the first Green Business Forum, a flagship event and the first specifically on green business in ADB, which will be held in 2017 at the ADB headquarters. In anticipation of the Forum the TA will also conduct a review of green business sectors operating globally and in particular those in the region. The findings will be organized into a Green Business Stocktaking Report based on 6-8 background papers which will be developed on how best to promote green business investments in the Asia- Pacific region.

1. Knowledge products developed and disseminated

2. Pilot country road maps toward greater use of market-based approaches for 2 or 3 DMCs developed

3. Flagship event on green business held

Output 1: Knowledge products

(1.1a) Stocktaking/review on the global and regional experience and applicability of market-based approaches for environmental management in Asian countries completed. Draft analytical findings and recommendations were disseminated and discussed with DMC officials, development partners, and technical experts at 2 international knowledge sharing events in Sweden and Viet Nam and reviewed at the Regional Workshop for Market-Based Approaches for Environment Management last 10 and 11 July 2018 at ADB HQ. The final report is scheduled for publication by end of 2019.

(1.1b) Inventory of market-based instruments for environmental management in Asia completed and to be shared with OECD.

(1.2a) A Sustainable Development Working Paper, The Business of Greening: Policy Measures for Green Business Development in Asia, was published in January 2019. Three explainers (Making Green Business Work; Green Finance, Explained; and How Can Policy Makers Promote Green Business?) and a blog (Promoting green business: 3 priorities for action) were published. Findings were disseminated and discussed with DMC officials, development partners, and technical experts at 2 international conferences in Thailand and Viet Nam. A full review on the status and trends of green businesses in Asia is completed and scheduled for publication by end of 2019.

(1.2b) Multimedia proceedings of the 2016 Green Business Forum, including a detailed summary report as well as presentations and videos, have been published online.

Output 2: Pilot country road maps toward greater use of market-based approaches for 2 or 3 DMCs:

(i) Position papers with recommendations for scaling up innovative economic instruments for ecosystem services protection and rural wastewater management in the PRC's 14th Five Year Plan completed.

(ii) Study with recommendations for mainstreaming standards for sustainable cashmere production in Mongolia completed.

Output 3: Flagship event on green business:

(i) ADB successfully hosted the first Green Business Forum for Asia and the Pacific in November 2016 with participation of business executives and DMC officials, civil society and financial institutions representatives, national and international experts, and other stakeholders who shared knowledge and identified avenues for promoting green business solutions in the region. The Forum had 19 sessions, including 6 plenaries, and was attended by about 450 participants including 86 speakers, and 16 exhibitors from across the region and other member countries.

(ii) The Forum has provided further impetus to enhance ADB operations supporting sustainable agriculture and rural enterprises, investments in natural capital, and sustainable tourism, among others, and helped identify opportunities for green finance, knowledge management, technology development, business innovation and support to DMCs to create the necessary enabling policy environment for green business development. The Forum confirmed strong interest and demand from DMCs and private sector entities for support in the promotion of green business.