Browsing by Subject "Climate finance"

Now showing 1 - 3 of 3

Open Access
An Exploration of Uncertainties in Translating CO2 Emissions Data for the Evaluation of Private Investment Risk
(2016-04-29) Chin, Seunghee
Socially Responsible Investment (SRI) is a financial behavior that incorporates ethical, environmental and economic (SEE) risk criteria into private investment decision making. Investor demands for SRI has grown at a rapid pace in the last decade, tenfold in US alone with $6.20 trillion-worth of domiciled assets. However, as a priori links between some socio-environmental aspect of corporate activities and investment risk are yet explicitly identified, while more corporate entity-level environmental data are becoming available, some causal interactions of environment, social risks with investment risk are often too complex to define, significantly uncertain or else non-quantifiable. Using the expert elicitation (7 panels of experts from IFC, ADB, and private consulting and investment companies), this project explores how and what investment risks are actually perceived through environmental indicators; what and where spatial and temporal feedback mechanisms exist in the investment community in a way presumably different from the purely physical, natural environment. It also finds which corresponding investment behaviors would likely take place in response to their perceptions.
Open Access
Financing the Green Hydrogen Economy
(2023-04-28) Mullen, Elizabeth
Hydrogen is expected to play a critical role in the decarbonization of the global energy system, as the IEA projects that in order to reach net-zero emissions by 2050, low-carbon hydrogen use will need to grow six times from today’s levels to meet up to 10% of total energy consumption (IRENA, 2022). Amidst growing concerns around energy security, governments and private industry are showing an appetite for tapping green hydrogen as an energy source, committing an unprecedented amount of financing to stand up a robust market in the next decade. While projects worth nearly $240 U.S. billion in the low-carbon hydrogen pipeline have been put forward in 2022, only about 10% of these have reached final investment decision (McKinsey Sustainability, 2022). To meet decarbonization goals, investment in green hydrogen facilities at a MW and above scale will need to rapidly increase. Yet, investors are faced with significant challenges and risks. Based on an analysis of large-scale green hydrogen projects that have successfully secured financial commitment, this paper sets out a framework for evaluating potential investment opportunities.
Open Access
Mobilizing Domestic Private Capital for Nature-Based Solutions in Emerging Economies
(2023-04-18) Olutoke, Jide
Achieving the Net Zero commitments set by nations requires adequate financing from multiple sources. In developing countries, finance for climate and nature, thus far, has primarily been mobilized from the domestic public sector and international financial institutions. In contrast, contributions from the domestic private sector have been minimal. While equity has been at the core of the argument for mobilizing climate finance primarily from developed countries, the failure to muster a paltry USD 100 billion proves that alternative options must be explored. The domestic private market in many developing countries has the potential to support climate and nature investment, but it remains largely untapped. With the bulk of low-cost Nature Based Solutions (NbS)potential in the global south, investment in NbS provides the rare opportunity to directly impact the lives of low-income communities disproportionately affected by climate change. Mobilizing investment for NbS within the domestic economy has the potential to provide a predictable source of capital for NbS projects, deepen the domestic capital and carbon market, and, more importantly, reduce the country’s reliance on international support anchored on conditionalities.