To push green operations Giz vows to link MSMEs with financial institutions

CEBU, Philippines - Following the official launch of the Promotion for Green Economic Development (ProGED), the project implementer Deutsche Gesellschaft für Internationale Zusammenarbeit (German Agency for International Cooperation, GIZ), vowed to link Cebu and Bohol micro, small and medium  enterprises (MSMEs) to the various institutions that provide financing access to green-related projects.

This was announced by GIZ ProGED project manager Volker Steigerwald who said identified beneficiaries of the three-year project will be matched with different financial institutions that are offering assistance for companies implementing green operations.

“We’d like to link up MSMEs with all these green financing institutions; there are many but are not known. Internally, there are also other financial institutions that are willing to finance and support green initiatives,” said Steigerwald.

The project, which got an allocation of three million Euros from Federal Ministry for Economic Cooperation and Development (BMZ), identified the health and wellness sector as the primary beneficiary in Cebu and the eco-tourism sector in Bohol.

In spite of the threat of climate change and environmental stress, ProGED looks at green economic development as a driver for competitiveness, innovation, new markets and jobs which will contribute to inclusive growth and poverty reduction.

According to Steigerwald, the project will focus on three important dimensions in shifting the economic system away from carbon footprint—in massive information awareness, business matching/facilitation, and providing green framework activities.

The initiative, which is in partnership with the Philippine government through the Department of Trade and Industry (DTI), aims to pursue its objective along these three intervention lines and will build on gains and experiences of the previous Private Sector Promotion (SMEDSEP) program jointly implemented by GIZ and DTI which ended in December 2012.

In the green framework activity, he said the program will work closely with the local government units so government officials would know the importance of greening the business ecosystem and that policies and ordinances will be approved to support or encourage this kind of initiative from the private sector players.

Steigerwald said the chances of the Philippines to lead in the green economic transformation is very high, considering its good economic performance.    

“We use this opportunity—that economy is doing very well in the Philippines—as a step to improve competitiveness among MSMEs. The Philippines, being seen to be the next economic tiger in Asia in five years, can learn from Germany [in terms of adopting green economic development],” said Steigerwald.

Adopting green operation, Steigerwald said, is not just to “save the earth,” but also a “business case for MSMEs to be competitive and profitable. In Germany, for instance, investors are asking for sustainability initiatives of the Philippines. 

The implementation of ProGED will complement the upswing economic performance and positive impression of international investors to the Philippines, he added.

Meanwhile, DTI Cebu provincial director Nelia Navarro said the project will be working closely with the Cebu Health and Wellness Council (CHWC) to promote green development members, which include spa operators, hospitals, hotels and restaurants, and food sector, among others.

DTI-7 regional director Asteria Caberte on her part said ProGED will also recognize the existing champions in implementing green operation initiatives that are not known to the public, but need to be used as examples and benchmarks.  (FREEMAN)