It is estimated that transitioning to a low-carbon, and climate resilient economy, and more broadly “greening growth” over the next 20 years to 2030 will require significant investment and consequently private sources of capital on a much larger scale than previously. With their USD 28 trillion in assets, pension funds - along with other institutional investors - potentially have an important role to play in financing such green growth initiatives.
Green projects - particularly sustainable energy sources and clean technology - include multiple technologies, at different stages of maturity, and require different types of financing vehicle. Most pension funds are more interested in lower risk investments which provide a steady, inflation adjusted income stream - with green bonds consequently gaining interest as an asset class, particularly - though not only - with the SRI universe of institutional investors.
Quoting a joint analysis undertaken by the OECD and the IEA, G-20 leaders committed in September 2009 to "rationalize and phase out over the medium term inefficient fossil-fuel subsidies that encourage wasteful consumption." This report draws on previous OECD work to assess the impact on international trade of phasing out fossil-fuel consumption subsidies provided mainly by developing and emerging economies. The analysis employed the OECD’s ENV-Linkages General-Equilibrium model and used the IEA’s estimates of consumer subsidies, which measure the gap existing between the domestic prices of fossil fuels and an international reference benchmark. It shows that a co-ordinated multilateral removal of fossil-fuel consumption subsidies over the 2013-2020 period would increase global trade volumes by a very small amount (0.1%) by 2020. While seemingly negligible, this increase hides the large disparities that are observed across countries (or regions) and products. Under the central scenario, which assumes a multilateral subsidy removal over the 2013-2020 period, trade in natural gas would be most affected, with a 6% decrease by 2020.
Denmark’s green growth strategy focuses on moving the energy system away from fossil fuels and investing in green technologies, while limiting greenhouse gas (GHG) emissions. On the whole, current policies should allow Denmark to reach near-term climate change targets, but may not be sufficient to achieve its most ambitious targets. The challenge is to achieve objectives in a cost-effective manner and to ensure that these ambitions contribute as much as possible to global GHG emissions mitigation and to stronger and greener growth in Denmark. Better exploiting interactions with EU and international policies, finding the appropriate way to support green technologies and reducing GHG emissions in sectors not covered by the EU emission trading scheme are key issues which need to be addressed to meet this challenge. This Working Paper relates to the 2012 OECD Economic Survey of Denmark.
This plan, produced by Climate Works Australia, sets out emissions reductions opportunities for Australia, the challenges faced in capturing them, and actions required to succeed. The report identifies opportunities available to businesses as well as guiding the actions required for Government and consumers to achieve the emissions reductions for Australia at the lowest possible cost. The report is not a national strategy of the Australian Government per se, but it was funded through the Australian Carbon Trust and regional and national governmental departments.
The ‘Building a Low‐Carbon Indian Economy’ report, by the Confederation of Indian Industry, recognises that although India is undergoing a phase of rapid industrial development there are clear signs that ‘industry in India has adopted an approach that can help India leapfrog to a low‐carbon economy’. The report asserts that this can be done by adopting suitable policies to promote non‐carbon intensive fuels, renewables and state‐of‐the‐art technologies to promote energy efficiency.
The strategy identifies 12 priority areas with the potential to mitigate India’s carbon emissions and put the country on the path to a low‐carbon economy. These are: Renewable Energy, Energy Efficiency, Cleaner Conventional Energy Technologies, Hydrogen Fuel Cells, Free and Open Markets, Green Buildings, The Aviation Sector, Water Efficiency, Agriculture, Afforestation, Research & Development and Financing.
The document concludes by providing specific actions to be undertaken by government, industry and civil society independently, that will put India on a path to a low‐carbon economy.