The global financial crisis has pushed 14 million more people into poverty in East Asia and the Pacific (EAP).

Recovery from this shock will depend largely on goods and services sold at home rather than abroad. To

support a shift from East Asia’s export-driven economies to domestic growth, IFC backs microfinance initiatives, helps

governments simplify business regulations, and helps domestic companies improve their corporate governance and

competitiveness. We also teach farmers to adopt sustainable farming practices and support the tourism industry in the

Pacific Islands.

IFC focuses on the poorest countries and regions when tackling our four strategic goals: creating inclusive rural growth, supporting urban and domestic-led growth, fostering competitive markets, and fighting climate change. Two of the world’s three largest greenhouse-gas emitters—China and Indonesia— are located in East Asia. IFC therefore puts a strong emphasis on advising banks and other companies in the region on how to direct funds to climate friendly projects and reduce their greenhouse-gas footprint.

IMPACTS ON THE GROUND

In China and the Philippines, IFC supported banks in lending $487 million for energy efficiency projects, enabling companies to •avoid generating the equivalent of 12.5 million metric tons of heat-trapping carbon dioxide in 2008/2009.

IFC advised governments on 10 legal reforms and 55 policy and institutional reforms last year to improve companies’ ability to •do business and create jobs.

In Cambodia, IFC helped the government streamline procedures firms must go through to obtain registration certificates and •operating licenses, reducing the number of days required for business entry procedures from 22 to 14.5 days.

IFC helped financial institutions in the region provide more than $5 billion in loans to small and medium enterprises (SMEs) in 2009.•

Our advisory work in the infrastructure sector in 2008/2009 provided or improved basic services for over 14 million people in •the region.

IFC was instrumental in helping Industrial Bank become the first Chinese bank to adopt a set of international principles for •environmental and social sustainability (the so-called Equator Principles).

CORE SERVICES

Investment Climate: Removing policy and administrative barriers to starting and running a business are central to boosting the economy and creating jobs in poor and middle-income countries. Alternative dispute resolutions such as mediation in the Pacific island of Tonga, for example, have cut the number of days to settle commercial disputes to 50, down from more than 300 if pursued through the courts. Creating business regulations conducive to attracting tourism is equally critical in the Pacific as vacationers generate jobs, government income, and boost other sectors of the economy.

Infrastructure: Experts estimate that East Asia and the Pacific need around $200 billion annually to finance basic infrastructure, such as roads, ports, power, and water systems. IFC aims to increase access to infrastructure services, facilitate private investments, and improve government finances. Our largest programs in the region focus on power generation and distribution as well as off-grid systems and renewables. Air transport is another focus. IFC’s completed transactions have improved access to services for one million people, reduced government subsidies by $100 million, and facilitated $50 million in private investment. In the future, IFC intends to support the improvement of water supply and distribution.

East Asia and the Pacific

IFC ADVISORY SERVICES

IN PARTNERSHIP WITH

IFC Advisory Services in East Asia and the Pacific

14th Floor, One Pacific Place | 88 Queensway, Admiralty | Hong Kong, China

T: +1.852.2509.8100 (Hong Kong); +1.202.458.5613 (Washington, DC)

Contact: Hannfried von Hindenburg | hvonhindenburg@ifc.org

ifc.org/eastasia

EAST ASIA AND THE PACIFIC

2010

Access to Finance: IFC’s advice on access to finance aims to make basic banking available to more households atlower rates. Our largest programs in the region focus on SME finance, sustainable energy finance, and microfinance. IFC also supports the development of credit bureaus, movable assets registries, and new payments systems (such as mobile phone banking services) that reduce costs for banks serving smaller clients. For example, the Wing mobile phone-based money transfer system in Cambodia, which IFC designed and launched with Australian bank ANZ, has reached 50,000 customers in its first year of operation. By using text messages, the cost of transferring funds to family and friends has been cut from $2-$3 to only 20-40 cents.

Corporate Advice: IFC helps boost the contribution larger, often international, corporations can make to the local economy in poor countries. We support companies in raising the quality of local firms’ products to a level where they become eligible suppliers. Once these small producers operate to internationally recognized quality and safety standards, opportunities open up to sell their products as part of larger supply and distribution chains. For instance, in the Philippines, IFC partnered with multinational banana exporter Unifrutti-Chiquita and the nongovernmental organization Rainforest Alliance to certify sustainable farming practices of three banana farms. Environmental and Social Sustainability: East Asia and the Pacific struggles with countless environmental and social challenges. In response, IFC partners with companies and governments to transform markets to be more equitable and less carbon intensive. We focus on three areas: addressing climate change, leveraging labor and social capital, and preventing biodiversity loss. In Indonesia, for example, we help forestry companies cope with costs associated with planting on degraded and difficult to access land. Such reforestation helps to quell one of the biggest sources of greenhouse gases—the cutting down of trees.

CHUEE – Financing the Fight Against Climate Change

IFC’s China Utility Energy-Efficiency Finance program was launched in 2006, the same year China’s soaring demand for electricity from coal-fired power plants and a surge in cement production made it the world’s largest emitter of carbon dioxide (CO2). Most Chinese industries are inefficient in their energy use. The Chinese government has recognized this as a major risk and has made energy efficiency a national priority. The CHUEE program, is aimed at stimulating energy efficiency investments by giving bank guarantees for energy efficiency loans and through technical assistance to help implement energy efficiency projects for banks, utilities, equipment vendors, and energy service companies.

Appetite for the program is huge. As of December 2009, the program’s participating banks provided loans totaling 3.9 billion Chinese Yuan ($551 million). The loans financed 116 energy efficiency and renewable energy projects, such as waste heat recovery power generation and the introduction of efficient production systems and renewable energy projects like wind and biogas. The steel, chemical, and cement industries are the largest beneficiaries.

Independent calculations have shown that these investments reduced greenhouse-gas emissions by 14 million CO2 tons per year, exceeding initial targets. The goal is now to reduce 80 million tons of CO2 each year at the end of 2011 by supporting projects in energy efficiency, renewable energy, and cleaner production. In the future, the successful CHUEE model also will be used to address the severe water challenge in China. A concept for “CHUEE – Water” foresees a risk- sharing facility and advice to improve water efficiency.