Mr. Kosuke Sho, Senior Vice President and Mr. Yorikazu Kitae, Vice President of Regional Planning Department of the Development Bank of Japan Inc. (DBJ), were invited to present new and innovative approaches related to green infrastructure (GI) and financing of urban flood risk reduction investments, particularly green bonds and public-private partnerships at the workshop “Towards Innovative Urban Flood Risk Management in Indonesia” held from 27th to 28th of August 2018 in Bogor, Indonesia. This workshop, organized by Bappenas (Indonesian Ministry of National Development Planning) in collaboration with the World Bank East Asia and Pacific Disaster Risk Management team, is part of an ongoing technical assistance program on Urban Flood, Disaster Risk Management, and Drainage. The World Bank Tokyo Disaster Risk Management Hub supported the identification and deployment of the Japanese experts.
Together with speakers from Indonesia, Netherlands and Singapore, DBJ presented within Session II, “Innovation in Urban Flood Risk Management” as well as engaged directly with Indonesian stakeholders in small-group discussions. Through DBJ’s presentation, Mr. Sho and Mr. Kitae highlighted various options and mechanisms of financing GI through sharing specific projects implemented in Japan financed by the local government, including issuance of green bonds, as well as through public-private partnerships.
DBJ emphasized that: 1) GI design and implementation require engagement of various stakeholders – both the local governments and private sectors; 2) There is significant potential for public sectors to encourage integration of GI within new large-scale private development through targeted incentives in exchange for public benefits; and 3) City governments can play a major role to explore and lead various ways of financing new green initiatives including GI, through financial instruments such as green bonds.
The collaboration catalyzed through the workshop sparked further interest in collaboration between Indonesia and Japan, as well as other global expertise, to further explore green infrastructure and innovative financing opportunities for urban flood risk management.