Climate change has financial implications for investors – presenting significant portfolio risks as well as new market opportunities. This paper explores the landscape of climate exposure and examines the strengths as well as some of the current limitations of ESG data, tools, and financial products.
This report provides an overview of PFMs that mobilise and leverage commercial financing, build commercially sustainable markets, and increase capacity to deliver clean energy and other climate-mitigation technologies, projects and businesses. These mechanisms can play a prominent role in the implementation of an international mitigation strategy.
The report is based on a substantial body of experience in a wide variety of developed and developing countries. It suggests ways in which PFMs could be used at the national and international scale, offers scale up and replication strategies, and identifies how they might fit into a new financial framework under the UNFCCC.
Annual deforestation rates in Brazil’s Amazon fell by almost 80% between 2004 and 2012 due in large part to conservation policies Brazil introduced in 2004. While this is welcome news to policymakers intent on combating forest clearings, a new challenge has emerged: deforestation now occurs on smaller tracts of land, which is more difficult to detect and remains unaddressed.
The study provides a review of the most innovative financing mechanisms employed by public entities in a range of countries around the world. These public institutions may invest in, or provide financial support to, companies and / or individuals who contribute to the reduction of carbon emissions through cleaner energy usage.
This chapter describes a range of financial instruments increasingly used by public development finance providers to mobilise resources for investment in developing countries. It focuses on the functioning of pooling mechanisms, guarantees and equity investments, and their potential to mobilise private investment in key sectors such as infrastructure.This chapter also includes two opinion pieces. The first is by Pierre Jacquet, President of the Global Development Network, on how official development assistance should be used to enhance risk sharing between the private and public sectors. The second is by Owen Barder of the Center for Global Development on stimulating private investment by ensuring genuine returns for success.