China will need investments in the order of $330 billion (RMB 2 trillion) a year from 2015-2030 to overcome its environmental challenges. Tapping the private sector can help scale up the country's green finance.
The excitement around clean energy access through distributed renewable energy has a good basis in real world experience. By creating the right policy and regulatory conditions, international clean energy access initiatives can help other countries benefit from greater access to electricity through distributed renewable energy.
How much money will the world need to protect itself from the impacts of climate change? By some estimates, about $300 billion a year by 2050.
The China-led Asian Infrastructure Investment Bank and other new multilaterals are becoming an important part of the development finance landscape. How they answer these five questions will have far-reaching implications.
The participation of the private sector in financing the transition to low-carbon, climate resilient (LCR) economies is critical. While public finance and policy interventions can mobilise significant levels of private finance, the ability to estimate such mobilisation is currently limited.
The value of sustainability is oftentimes misunderstood by businesses and investors seeking to quantify more immediate impacts on revenue growth. Goldman Sachs' director of environmental markets, Kyung-Ah Park, explains how businesses can better engage investors in their corporate sustainability efforts.
Citigroup's new five-year sustainability strategy could help shift global capital towards low-carbon development.
The International Development Finance Club (IDFC)—a group of international, national, and regional development banks based in the developed and the developing world—released its annual report on green investment (i.e. mitigation, adaptation and ‘other’ environmental finance which includes environmental protection and remediation related projects)—as the world’s climate negotiators were meeting in Lima, and its numbers are significant.
A recent UN report highlights the need to examine the role of development finance institutions in sustainable development, but it leaves open the question of whether member states should call for a review process.
Here’s a perspective on some of the outstanding negotiation challenges.
Adaptation finance accountability is key to addressing obligations of national governments and international organizations to provide support, but actual funding decisions are often made without involving the populations hit first and worst by climate change, or without understanding how communities are vulnerable.
So who is accountable for making good use of adaptation funds, and who should hold whom accountable?
Making the transition to a low-carbon, climate-resilient economy is going to take a lot of investment, and the limited budgets of the public sector can’t tackle it alone.
But by targeting their support, governments can create incentives for significant private investment into climate activities; in other words, they can “mobilize” private investment.
Why is the recent U.S. pledge to the Green Climate Fund important for a 2015 climate agreement?
The Green Climate Fund (GCF) has a big role to play. It’s expected to become the world’s main mechanism for securing and distributing finance to help developing nations tackle climate change.
The multi-billion dollar question is: Can it live up to this expectation?
China’s outward foreign direct investment (OFDI) has been increasing dramatically. During the 2008-2009 financial crisis, global foreign direct investment (FDI) decreased by 40%, whereas China’s OFDI increased by 8% (UNCTAD, 2013).
A new report from the International Monetary Fund (IMF), Getting Energy Prices Right: From Principle to Practice, argues that the costs of coal, natural gas, gasoline, and diesel fail to account for these fuels’ environmental and social impacts—such as greenhouse gas emissions, air pollution, and traffic deaths.
Setting prices that reflect these side effects—through taxes, licensing, or cap-and-trade systems—could reduce deaths from fossil fuel-related air pollution by 63 percent, decrease global carbon dioxide emissions by 23 percent, and generate revenues totaling about 2.6 percent of global GDP.
There’s a growing gap between current investment in low-carbon energy and what’s needed to meet world demand while avoiding the worst impacts of climate change. The good news is there’s sufficient capital and investor interest to close much of this gap.
However, policies that encourage market certainty and level the playing field between different energy sources are needed to attract the volume of investment required, according to a special International Energy Agency (IEA) report, the World Energy Investment Outlook, released this month.
The Green Climate Fund is holding its 7th Board meeting in Songdo, Korea this week. One of the most difficult questions that the GCF Board will grapple with is how entities will become “accredited” to receive GCF funds to help developing countries mitigate and adapt to climate change.
While investment from more developed countries has remained about the same in recent years, China’s flows to Africa have increased significantly, fueling excitement about development and concern about the effects on the environment and communities.
As China’s impact increases, it can take steps now to make sure it sets a new standard for responsible lending and investment in Africa.