USAID Green Invest Asia

Speeches Shim

​USAID Green Invest Asia helps agriculture and forestry businesses in Southeast Asia improve the sustainability and environmental stewardship of their operations by connecting them with like-minded investors and reducing barriers to investment.  USAID Green Invest Asia advances the U.S. Government’s Indo-Pacific Framework and its commitment to market-driven development by fostering private sector engagement on sustainable supply chains, and supports the USAID Climate Strategy by mobilizing finance to invest in the transition to a net-zero economy.

The commercial agriculture and forestry sector produce at least 40 percent of greenhouse gas emissions in Southeast Asia.  Companies are finding ways to sustainably decrease emissions, creating a more than $220 billion investment opportunity for sustainable financing.  However, logistical barriers facing both businesses and investors stand in the way of capitalizing on this opportunity.  USAID Green Invest Asia partners with businesses and investors alike to overcome these barriers through several approaches.

REDUCING BARRIERS FOR BUSINESS

USAID Green Invest Asia partners with agriculture, forestry, and other land use companies in Southeast Asia that have at least $2 million in capital needs, profit potential, and a demonstrated commitment to environmental and social stewardship.  USAID Green Invest Asia provides these companies with capital matchmaking, technical and business advisory services, access to financing with preferential terms, and/or transaction support, including investment-readiness counsel.  The program also works with businesses seeking to “green” their supply chains by helping them adopt low-emissions technologies.

REDUCING BARRIERS FOR INVESTORS

To encourage climate-smart financing, USAID Green Invest Asia builds the capacity of financial institutions to assess the risks associated with different types of land use.  The program also helps investors identify low-risk, climate-smart opportunities and conduct due diligence to ensure the environmental sustainability of their investments.  These solutions help them meet sustainable financing commitments, expand their business opportunities, and improve the readiness of existing and potential clients to make these kinds of investments.

STRENGTHENING BUSINESS NETWORKS FOR SUSTAINABLE FINANCING

USAID Green Invest Asia taps into existing networks of businesses interested in sustainable financing, thereby encouraging knowledge-sharing and business-to-business networking.  Strengthening these relationships is important for the long-term momentum of sustainable financing in Southeast Asia.

IMPACTS AND RESULTS

USAID Green Invest Asia has achieved a number of significant impacts and results, including:

  • Facilitated more than $40 million worth of investments into forest restoration/carbon markets as well as sustainable teak, rice, and rubber in Indonesia and Cambodia, covering 116,000 hectares of land.  These investments result in the reduction of nearly 8.7 million metric tons of carbon equivalent (CO2e).
  • Catalyzed investment through an in-depth carbon footprint assessment that secured capital for an Indonesian sustainable rubber plantation joint venture; created a revenue stream from sales of sustainable timber to H&M suppliers, conducted an environmental/social performance analysis, identified investors, and advised the lender on an equity investment in Cambodia’s first Forest Stewardship Council-certified plantation.
  • Convened and supported consultations to launch the coconut industry’s first sustainability charter in 2020, which aims to improve coconut cultivation and farmers’ livelihoods, as well as reduce coconuts’ carbon footprint.  Signatories accounting for at least 40 percent of global trade volume have already started aligning operations with the charter.
  • Supported top global buyers JDE Peet’s and Nestlé to meet their corporate carbon commitments to source carbon-neutral coffee from their regional supply chains, while reducing greenhouse gas emissions for the entire sector.
  • Supported Lionheart Farms Philippines to improve ESG qualifications and achieve a third-party certification by Carbon Care Asia.  As a result, Lionheart successfully received approval to issue a Certified Climate Bond.  Lionheart’s green bonds will raise capital to expand its sustainable coconut plantation and showcase immense investment opportunities for low-emission agriculture in Asia to the climate bond market.

Last updated: December 30, 2021

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