The Green Climate Fund recently explored how to break through market barriers and forge new climate finance pathways in developing countries by tapping the experiences of some of the world’s top financial firms.
GCF Executive Director Yannick Glemarec and the GCF’s Private Sector Facility Director Ayaan Adam met with representatives of sovereign wealth funds, pension funds, asset managers and global banks holding more than USD 8 trillion in total assets during GCF’s Private Investment for Climate Conference.
The roundtables, held during GCF’s second Private Investment for Climate Conference, explored ways in which GCF can help shift global capital flows to drive climate action in developing countries. Participants shared their experiences in the business world on how to accelerate private sector investments for the transition to a low carbon economy.
The first roundtable, “Private Sector Leadership for Climate Action,” identified ways in which GCF can work with major financial players to support the Climate Finance Leadership Initiative led by Michael Bloomberg, the UN Special Envoy for Climate Action.
The second roundtable, “Mobilising Institutional Investors for Climate Action,” progressed earlier discussions led by GCF and the Qatar Investment Authority (QIA) during last month’s UN Climate Action Summit in New York to encourage institutional investors to fund climate initiatives. Participants discussed the barriers hindering private sector-led climate finance and the deployment of innovative business models.
The roundtable discussions concluded that here is strong demand for GCF co-investment solutions and catalytic capital to de-risk climate investments and unlock private capital at scale. There was also broad agreement about the urgent need for investment readiness to accelerate the origination of bankable climate projects in developing countries. In addition, several participants highlighted the importance of mainstreaming climate change into investment decisions.
Included among those attending the GCF roundtables were representatives from MUFG Bank, Macquarie, HSBC, Credit Suisse, Standard Chartered Bank, Allianz, ING, Swiss RE, the Hong Kong Monetary Authority, Korea Investment Corporation, Temasek Holdings, Meridiam Infrastructure Finance, Africa 50, Copenhagen Infrastructure Partners, and the African Infrastructure Investment Managers.
As the world’s largest dedicated climate fund, the GCF reiterated its commitment to support private sector climate action for the implementation of the Paris Agreement.