DOCSLIB.ORG

Financing the Low-Carbon Future a Private-Sector View on  Mobilizing Climate Finance

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Financing the Low-Carbon Future a Private-Sector View on  Mobilizing Climate Finance Financing the Low-Carbon Future A Private-Sector View on Mobilizing Climate Finance September 2019 Table of Contents 3 Letter from the Climate Finance Leadership Initiative 4 Executive Summary 13 Introduction 15 Scope and purpose of this report 17 Chapter 1: The Financial Sector’s Role in the Global Response to Climate Change 18 Finance as an enabler of the low-carbon transition 20 Roles in the investment chain 25 Chapter 2: Trends in Climate Finance 26 Clean energy investment is growing rapidly, but a significant gap remains 28 Clean energy investment is not flowing to emerging markets at scale 30 Low-carbon investment in sectors beyond power is growing but needs to scale 32 Green finance is increasing, but its scope remains narrow 33 Climate is increasingly becoming mainstream for the financial sector and regulation 35 Chapter 3: Key Challenges & Solutions for Mobilizing Private Finance for the Low-Carbon Transition 38 Challenge 1: Proven investment models are not replicated at scale 46 Challenge 2: Risks in emerging markets constrain low-carbon investments 58 Challenge 3: Many low-carbon investments in key emitting sectors are not yet profitable 69 Challenge 4: The transition from carbon-intensive business models may create financial and social risk 78 Challenge 5: A lack of tools and incentives to align financial portfolios with a low-carbon future 90 Conclusion: Financing the Low-Carbon Transition Requires Strategic Partnerships 95 Appendix 1: CFLI Unlocking Capital – Investment Readiness Guidelines 99 Appendix 2: Glossary 103 Appendix 3: Abbreviations 105 Appendix 4: Table of Figures 2 Mr. António Guterres Secretary-General United Nations 760 United Nations Plaza New York, New York 10017 Dear Mr. Secretary-General, We are pleased to present the Climate Finance Leadership Initiative report in support of building a sustainable low-carbon economy. In accordance with the objectives of the initiative, this report outlines solutions for further mobilizing private-sector capital in line with the goals of the Paris Agreement. e need for climate action has never been more urgent, and nance can play a powerful role in the transition to a sustainable and inclusive global economy. To achieve this transition, the world requires a signicant shift in investments that make nancial ows consistent with pathways toward low greenhouse gas emissions and climate-resilient development. Meeting this goal will depend on the public and private sectors coming together to support an inclusive and orderly transition from high- to low-carbon assets on a global scale — and quickly. Although each member of this initiative brings a dierent expert perspective from across the investment chain, we have all seen that progress is not only possible but also presents signicant opportunities for our businesses and the clients and communities that we serve. is report highlights real-world examples of best practices and actionable solutions to the challenges that most often hinder sustainable low-carbon investment. Today, we have the knowledge, the capability, and the insight to further scale new investment in clean energy and other green opportunities and to support the transition of existing investments in reducing their emissions. While we are committed to action, our organizations cannot drive the necessary change alone. We call on our peers, as well as industry, public nance, and policymakers, to join together in harnessing the power of nancial markets and driving investment solutions to urgently address climate change. We must further catalyze eorts and work together to ensure sustainable and inclusive growth for our global economy. Sincerely, Michael R. Bloomberg Andreas Utermann Thomas Buberl Francesco Starace Founder Chief Executive Ocer Chief Executive Ocer Chief Executive Ocer and General Manager David M. Solomon Hiromichi Mizuno Noel Quinn Shemara Wikramanayake Chairman and Executive Managing Director Executive Director and Managing Director and Chief Executive Ocer and Chief Investment Ocer Group Chief Executive Chief Executive Ocer 3 Executive Summary Unmitigated, climate change will have span of roles across the investment value significant long-term impacts on people, chain, including an international power utility, ecosystems, and the global economy. commercial and investment banks, insurers, asset managers, and asset owners. The Intergovernmental Panel on Climate Change (IPCC) recently provided a vivid picture of how Informed by the deep expertise of CFLI 1.5°C and 2°C of warming are likely to affect institutions, this report offers insights into human populations and natural systems — with how to mobilize private climate finance at the a notable escalation of economic and ecosystem scale and speed needed to support an orderly impacts between these two temperatures. The IPCC and inclusive transition to a low-carbon global report found that achieving the 1.5°C target economy. The report considers challenges to — would require emissions to decrease to net zero and solutions for — financing the low-carbon by 2050, necessitating far-reaching transitions future across both developed and emerging across the global economy in energy, land, urban, economies. In recognition of the opportunity 1 infrastructure, and industrial systems. Private- to act in the near to medium term, emphasis is sector institutions, in partnership with the public given to readily available and scalable solutions sector, can help facilitate these transitions by and technologies, examples of successful mobilizing capital at the required scale and pace. low-carbon investments and transitions, and policy actions with proven track records of Recognizing the important role private-sector attracting private-sector capital across sectors capital can play in expediting this transition, with the largest emissions reduction potential. United Nations Secretary-General António Chapter 1, The Financial Sector’s Role in Guterres asked Michael R. Bloomberg, UN the Global Response to Climate Change, Special Envoy for Climate Action, to lead a private-sector initiative to “support a global frames two key pillars for financing an effective mobilization of private finance in response to the low-carbon transition: (1) increasing low-carbon challenge of climate change.” Senior executives investment and (2) supporting the transition of of seven major private-sector institutions — carbon-intensive sectors. To provide a deeper Allianz Global Investors, AXA, Enel, Goldman understanding of how private finance influences Sachs, HSBC, Japan’s Government Pension change in the real economy, this chapter describes Investment Fund (GPIF), and Macquarie — how the investment chain of private institutions joined Bloomberg as chair in creating the works in practice. FIGURE ES-1 illustrates the flow Climate Finance Leadership Initiative (CFLI). of capital within the financial system and the various These leading institutions represent a diverse roles of private- and public-sector institutions. _____________________________________ 1 IPCC, “Special Report: Global Warming of 1.5°C: Summary for Policymakers,” Geneva, 2018. 4 EXECUTIVE SUMMARY FIGURE ES-1: FIGUREThe investment 3: The investment chain: chain: The The interaction interaction of the of privatethe private sector, public sector, sector, public and real sector, economy and real economy Central banks Asset owners & financial regulators: Supervise financial Other Insurance Sovereign Pension institutions institutional companies wealth funds funds investors Delegate assets Asset managers Direct ownership, Passive funds ownership through Active funds (index tracking) shares & lending through bonds Sell shares & bonds Banks Credit rating agencies: Assign credit ratings Commercial Investment banks banks Exchanges & Index providers: trading platforms: Set index Handle trading composition Co-lend in shares & bonds Lend Underwrite bonds & shares Development finance institutions List shares Lend and provide risk-sharing tools Ownership in emerging markets Corporations Governments Project Other Listed developers corporations corporations Subsidies, incentives, policies influence investments Build, own & operate Public sector Private non-finance Private finance Supporting entities Assets in the real economy Source:Source: C FCFLI.LI. 5 EXECUTIVE SUMMARY Chapter 2, Trends in Climate Finance, Aggregate global energy demand, however, takes stock of the state of low-carbon investment has grown at a faster rate than renewable energy today. While global investment in clean power supply. In 2018, increased use of renewables generation, electrified transportation, and avoided 214Mt of emissions — a significant, building efficiency has increased significantly, yet insufficient, amount in light of the 1.25Gt of new energy-sector emissions attributed to low-carbon investment in other sectors is lagging. 5 Cumulative solar and wind capacity installed economic growth. Coal retains the largest share of global power generation, with 37% compared worldwide exceeded 1TW in 2018 — 6 roughly the size of the entire power system in with 7% for wind and solar. The IPCC estimates 2 the United States. Provided sufficient revenue that annual investments in clean energy and certainty and policy stability are present, energy efficiency would need to increase by a factor of six by 2050 compared with 2015 developers in most markets can now deliver 7 electricity generated by mainstream renewables levels to limit warming to 1.5°C. at a lower cost than coal-fired power, on a 3 levelized cost basis.
Load more

Recommended publications
  • Carbon Finance Guide for Local Governments
    The Community Development Carbon Fund (CDCF) provides carbon finance to projects in the poorer areas of the developing world. The Fund, a public/private initiative designed in cooperation with the International Emissions Trading Association and the United Nations Framework Convention on Climate Change, became operational in March 2003. The first tranche of the CDCF is capitalized at $128.6 million with nine governments and 16 corporations/organizations participating in it and is closed to further subscriptions. The CDCF supports projects that combine community development attributes with emission reductions to create “development plus carbon” credits, and will significantly improve the lives of the poor and their local environment. Carbon Finance Guide for Local Governments The World Bank Carbon Finance Unit’s (CFU) initiatives are part of the larger global effort to combat climate change, and go hand in hand with the World Bank and its Environment Department’s mission to reduce poverty and improve living standards in the developing world. The CFU uses money contributed by governments and companies in OECD (Organization for Economic Co-operation and Development) Coordinated by countries to purchase project-based greenhouse gas emission reductions in developing countries and countries with economies in transition. Haddy J. Sey Task Team Leader, World Bank The International Institute for Environment and Development (IIED) is one of the world’s top policy research organisations focusing on sustainable development. With partners on five continents, IIED is helping to tackle 21st-century challenges ranging from climate change and cities to the pressures on Written by natural resources and the forces shaping global markets.
    [Show full text]
  • Moving to a Low-Carbon Economy: the Financial Impact of the Low- Carbon Transition
    Moving to a Low-Carbon Economy: The Financial Impact of the Low- Carbon Transition Climate Policy Initiative David Nelson Morgan Hervé-Mignucci Andrew Goggins Sarah Jo Szambelan Julia Zuckerman October 2014 CPI Energy Transition Series October 2014 The Financial Impact of the Low-Carbon Transition Descriptors Sector Renewable Energy Finance Region Global, United States, European Union, China, India Keywords Stranded assets, low-carbon, finance, renewable energy Contact David Nelson, [email protected] Acknowledgements The authors gratefully acknowledge input from expert reviewers, including Billy Pizer of Duke University, Karthik Ganesan of CEEW, Michael Schneider of Deutsche Bank, Nick Robins of UNEP, and Vikram Widge of the World Bank. The perspectives expressed in this paper are CPI’s own. We also thank our colleagues who provided analytical contributions, internal review, and publication support, including Ruby Barcklay, Jeff Deason, Amira Hankin, Federico Mazza, Elysha Rom-Povolo, Dan Storey, and Tim Varga. About CPI Climate Policy Initiative is a team of analysts and advisors that works to improve the most important energy and land use policies around the world, with a particular focus on finance. An independent organization supported in part by a grant from the Open Society Foundations, CPI works in places that provide the most potential for policy impact including Brazil, China, Europe, India, Indonesia, and the United States. Our work helps nations grow while addressing increasingly scarce resources and climate risk. This is a complex challenge in which policy plays a crucial role. About this project The reports were commissioned by the New Climate Economy project as part of the research conducted for the Global Commission on the Economy and Climate.
    [Show full text]
  • IFC Carbon Neutrality Committment Factsheet
    Carbon Neutral Commitment for IFC’s Own Operations IFC, along with the World Bank, are committed to making our internal business operations carbon neutral by: IFC’s Carbon Neutrality 1. Calculating greenhouse gas (GHG) emissions from our operations Commitment is an integral 2. Reducing carbon emissions through both familiar and innovative conservation measures part of IFC's corporate 3. Purchasing carbon offsets to balance our remaining internal carbon footprint after our reduction efforts response to climate change. IFC’s carbon neutrality commitment encourages continual improvement towards more efficient business operations that help mitigate climate change. It is also consistent with IFC’s strategy of guiding our investment work to address climate change and ensure environmental and social sustainability of projects that IFC finances. This factsheet focuses on the carbon footprint of our internal operations rather than the footprint of IFC’s portfolio. IFC uses the ‘operational control approach’ for setting its CALCULATING OUR GHG EMISSIONS organizational boundaries for its GHG inventory. Emissions are included from all locations for which IFC has direct control over IFC has calculated the annual GHG emissions for its internal business operations, and where it can influence decisions that impact GHG operations for headquarters in Washington, D.C. since 2006, and for emissions. IFC’s global operations since 2008 including global business travel. IFC’s annual GHG inventory includes the following sources of The methodology IFC formally used is based on the Greenhouse Gas GHG emissions from IFC’s leased and owned facilities and air Protocol Initiative (GHG Protocol), an internationally recognized GHG travel: accounting and reporting standard.
    [Show full text]
  • The Financial Impact of the Low- Carbon Transition
    Moving to a Low-Carbon Economy: The Financial Impact of the Low- Carbon Transition Climate Policy Initiative David Nelson Morgan Hervé-Mignucci Andrew Goggins Sarah Jo Szambelan Julia Zuckerman October 2014 CPI Energy Transition Series October 2014 The Financial Impact of the Low-Carbon Transition Descriptors Sector Renewable Energy Finance Region Global, United States, European Union, China, India Keywords Stranded assets, low-carbon, finance, renewable energy Contact David Nelson, [email protected] Acknowledgements The authors gratefully acknowledge input from expert reviewers, including Billy Pizer of Duke University, Karthik Ganesan of CEEW, Michael Schneider of Deutsche Bank, Nick Robins of UNEP, and Vikram Widge of the World Bank. The perspectives expressed in this paper are CPI’s own. We also thank our colleagues who provided analytical contributions, internal review, and publication support, including Ruby Barcklay, Jeff Deason, Amira Hankin, Federico Mazza, Elysha Rom-Povolo, Dan Storey, and Tim Varga. About CPI Climate Policy Initiative (CPI) works to improve the most important energy and land use policies around the world, with a particular focus on finance. We support decision makers through in-depth analysis on what works and what does not. CPI works in places that provide the most potential for policy impact including Brazil, China, Europe, India, Indonesia, and the United States. Our work helps nations grow while addressing increasingly scarce resources and climate risk. This is a complex challenge in which policy plays a crucial role. About this project The reports were commissioned by the New Climate Economy project as part of the research conducted for the Global Commission on the Economy and Climate.
    [Show full text]
  • Carbon Finance & Cattle Externalities in the Brazilian Amazon
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by OpenCommons at University of Connecticut University of Connecticut OpenCommons@UConn Honors Scholar Theses Honors Scholar Program Spring 5-9-2010 Carbon Finance & Cattle Externalities in the Brazilian Amazon: Pricing Reforestation in terms of Restoration Ecology Christian T. Hofer University of Connecticut - Storrs, [email protected] Follow this and additional works at: https://opencommons.uconn.edu/srhonors_theses Part of the Finance and Financial Management Commons Recommended Citation Hofer, Christian T., "Carbon Finance & Cattle Externalities in the Brazilian Amazon: Pricing Reforestation in terms of Restoration Ecology" (2010). Honors Scholar Theses. 166. https://opencommons.uconn.edu/srhonors_theses/166 Carbon Finance & Cattle Externalities in the Brazilian Amazon: Pricing Reforestation in terms of Restoration Ecology Undergraduate Thesis presented to the University of Connecticut Honors Program April 30, 2010 Christian Hofer School of Business, B.S. Finance Candidate Faculty Advisor: Robert J. Martel, Ph.D. Department of Economics Abstract This paper evaluates land-use conflict between cattle pasture and tropical rainforest in the Brazilian Amazon and attempts to reconcile negative production externalities within the framework of carbon finance. Specifically, it analyzes the price per metric ton of CO 2e that would make reforestation projects, in terms of restoration ecology, a viable land-use alternative. Regional information on opportunity, implementation, and transaction costs is used to develop a partial equilibrium cost-benefit analysis, in which carbon sequestration is the only benefit. Financing is employed through Kyoto’s Clean Development Mechanism and long-term certified emission reductions (lCERs) are the carbon financial instrument modeled.
    [Show full text]
  • Finance Guide for Policy-Makers: Renewable Energy, Green Infrastructure
    FINANCE GUIDE FOR POLICY-MAKERS: RENEWABLE ENERGY, GREEN INFRASTRUCTURE 2016 UPDATE Kirsty Hamilton, Low Carbon Finance Group, Chatham House and Ethan Zindler, Bloomberg New Energy Finance (BNEF) have written and produced this updated guide. Grateful acknowledgment for their insight and expertise is made to the following individuals, including practitioners from the Low Carbon Finance Group, BNEF and others, whose financial experience has been invaluable to understanding and translating finance practices and concepts, and identifying key elements of the investment environment relevant to policy-makers: Will Blyth, Andrew Buglass, Germana Canzi, Mike Clark, Catherine Craig, Anna Czajowska, Charlie Donovan, Felix Fallasch, Steven Fawkes, Antony Froggatt, Nick Gardiner, Mark Knox, Silvie Kreibiehl; Aleksi Lumijarvi, Seb Meaney, Ben Moxham, Liam O’Keeffe, Brian Potowski, Julian Richardson, Allison Robertshaw, Joe Salvatore, Martin Schoenberg, Virginia Sonntag O’Brien, Peter Sweatman, Ian Temperton, Mike Wilkins, Henning Wuester, Eugene Zhuchenko. First edition written and produced by Kirsty Hamilton and Sophie Justice, 2009. Kirsty Hamilton has more than 25 years’ experience in climate and energy policy. She initiated work with renewable energy finance practitioners in 2004, as an Associate Fellow at Chatham House, examining ‘investment grade’ policy, and then led the policy work of the Low Carbon Finance Group from 2010 to 2015. [email protected] Sophie Justice, PhD is a financial consultant with extensive international banking experience. August 2016 Bloomberg New Energy Finance Bloomberg New Energy Finance provides unique analysis, tools and data for decision-makers driving change in the energy system. BNEF helps clients stay on top of developments across the energy spectrum with a comprehensive web-based platform.
    [Show full text]
  • Going Clean – the Economics of China's Low-Carbon Development
    SEI - Africa Institute of Resource Assessment University of Dar es Salaam P. O. Box 35097, Dar es Salaam Tanzania Tel: +255-(0)766079061 SEI - Asia 15th Floor, Witthyakit Building 254 Chulalongkorn University Chulalongkorn Soi 64 Phyathai Road, Pathumwan Bangkok 10330 Thailand Tel+(66) 22514415 SEI - Oxford Suite 193 266 Banbury Road, Oxford, OX2 7DL UK Tel+44 1865 426316 SEI - Stockholm Kräftriket 2B SE -106 91 Stockholm Sweden Tel+46 8 674 7070 SEI - Tallinn Lai 34, Box 160 EE-10502, Tallinn Estonia Tel+372 6 276 100 SEI - U.S. 11 Curtis Avenue Somerville, MA 02144 USA Tel+1 617 627-3786 SEI - York University of York Heslington York YO10 5DD UK Tel+44 1904 43 2897 The Stockholm Environment Institute Going Clean – The Economics of China’s SEI is an independent, international research institute.It has been Low-carbon Development engaged in environment and development issuesat local, national, regional and global policy levels for more than a quarterofacentury. Stockholm Environment Institute and SEI supports decision making for sustainable development by the Chinese Economists 50 Forum bridging science and policy. sei-international.org Going Clean – The Economics of China’s Low-carbon Development Stockholm Environment Institute and the Chinese Economists 50 Forum Editorial Board: Fan Gang Lord Nicholas Stern Ottmar Edenhofer Xu Shanda Klas Eklund Frank Ackerman Lailai Li Karl Hallding Stockholm Environment Institute Kräftriket 2B SE 106 91 Stockholm Sweden Tel: +46 8 674 7070 Fax: +46 8 674 7020 Web: www.sei-international.org Head of Communications: Robert Watt Publications Manager: Erik Willis Layout: Richard Clay Cover Photo: © David Schroeter This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes, without special permis- sion from the copyright holder(s) provided acknowledgement of the source is made.
    [Show full text]
  • Pigouvian Principles of Externalities and Cap and Trade
    Pigouvian principles of externalities and cap and trade Remarks Delivered before 2014 A&WMA Conference October 29, 2014 Dr. Joseph R. Mason EPA ozone policy – and environmental policy, generally, is a mix of Pigouvian principles and policy objectives. But the combination of those can have unanticipated distortionary effects. To begin with, it is important to understand the economic nature of the problem of externalities. In the graph, the market equilibrium obtains at the intersection of marginal benefits and marginal costs. But with externalities, the marginal social cost is greater than the marginal personal cost, reflecting the fact that the externality affects others more than oneself. Since the marginal personal cost of the activity is lower than the social cost, more persons consume the good at a lower cost than if the two marginal costs were the same. 1 The policy issue, therefore, is how we price to the marginal social cost in order to reduce consumption. The solution originally offered by Arthur Pigou in his 1920 work The Economics of Welfare. In that work, Pigou recommended that consumption be taxed so that the price of the good rose, with the goal that the price and quantity of consumption reach P-star and Q-star, the non-externality equilibrium. In that case, the personal marginal cost would equal the social marginal cost so that the consumer would bear the full cost of the externality. The problem, of course, is that in order to use this framework for policy one must settle on Q-star and/or P-star in order to set the policy goal.
    [Show full text]
  • Report: a Green New Deal
    A Green New Deal Joined-up policies to solve the triple crunch of the credit crisis, climate change and high oil prices The first report of the Green New Deal Group This report is the fi rst publication of the Green New Deal Group. Meeting since early 2007, its membership is drawn to refl ect a wide range of expertise relating to the current fi nancial, energy and environmental crises. The views and recommendations of the report are those of the group writing in their individual capacities. The report is published on behalf of the Green New Deal Group by nef (the new economics foundation). The Green New Deal Group is, in alphabetical order: Larry Elliott, Economics Editor of the Guardian Richard Murphy, Co-Director of Finance for the Future and Director, Tax Research LLP Colin Hines, Co-Director of Finance for the Future, former head of Greenpeace International’s Ann Pettifor, former head of the Jubilee 2000 debt Economics Unit relief campaign, Campaign Director of Operation Noah Tony Juniper, former Director of Friends of the Earth Charles Secrett, Advisor on Sustainable Development, former Director of Friends of the Earth Jeremy Leggett, founder and Chairman of Solarcentury and SolarAid Andrew Simms, Policy Director, nef (the new economics foundation) Caroline Lucas, Green Party MEP The global economy is facing a ‘triple crunch’. It is a combination of a credit-fuelled financial crisis, accelerating climate change and soaring energy prices underpinned by an encroaching peak in oil production. These three overlapping events threaten to develop into a perfect storm, the like of which has not been seen since the Great Depression.
    [Show full text]
  • Finance, Sustainability and Negative Externalities. an Overview of the European Context
    sustainability Article Finance, Sustainability and Negative Externalities. An Overview of the European Context Magdalena Ziolo 1,*, Beata Zofia Filipiak 1, Iwona B ˛ak 2 , Katarzyna Cheba 2 , Diana Mihaela Tîrca 3 and Isabel Novo-Corti 4 1 Faculty of Economics and Management, University of Szczecin–Poland, 71 101 Szczecin, Poland 2 Faculty of Economics, West Pomeranian University of Technology Szczecin, 71-270 Szczecin, Poland 3 Faculty of Economics, “Constantin Brâncusi” University of Târgu-Jiu, 210185 Targu-Jiu, Romania 4 Economic Development and Social Sustainability Research Group (EDaSS), Department of Economics—Universidade da Coruña—Spain, Campus de Elviña, s/n, 15071 A Coruña, Spain * Correspondence: [email protected]; Tel.: +48-914442170 Received: 8 July 2019; Accepted: 30 July 2019; Published: 6 August 2019 Abstract: The goal of the paper is to examine the relation between finance and sustainability, with a special emphasis on the impact of negative externalities. Sustainable development as a concept aims to mitigate negative externalities. Conventional finance offers no room for the environment and society. Therefore, three-dimensional sustainable finance has appeared. This paper is the first original attempt to examine the relationship between: financial, economic, environmental and social development indicators from the sustainability perspective, with a special focus on externalities. To study the disparities between the European Union (EU) countries belonging to the OECD in the field of sustainable development and sustainable finance, the multi-criteria taxonomy was used. The basis of the analyses was the indicators transformed according to the relative taxonomy method. The database, based on Eurostat, contains indicators describing pillars of sustainable development such as: economic (12 indicators), social (28), environmental (7) and sustainable finance (16).
    [Show full text]
  • Green Finance for Low-Carbon Cities
    Green Finance for Low-Carbon Cities June 2016 Over its thirty years of reform and opening up, China has seen unprecedented economic growth, leading it to become the world’s second largest economy. But its extensive mode of growth, combined with poor protection of the environment, has resulted in grave problems: resource shortages, severe pollution and weakened ecosystems. There is an urgent need for a change in that mode of economic growth. As the world’s two largest economies, the United States and China play a Meanwhile China has, as a responsible power, committed as part of the critical role in confronting climate change. Both countries are taking action – Paris Agreement to bring carbon emissions to a peak in or around 2030 and in both countries, cities are helping to lead the way. and to strive to do so earlier if possible. Cities account for most of the world’s carbon emissions, but they are also It is clear that China needs to change its mode of growth and bring where the greatest progress is being made. But despite forward-thinking about a green, low-carbon transition: both to increase sustainable policies and support from the central government, they still face obstacles domestic demand under the new economic normal and to realize the to making the kinds of investments that both protect public health and commitments it has made as part of the international response to Michael R. improve the economy. climate change. Bloomberg This new report series, a product of the collaboration between Bloomberg Cities are the centers of economic activity, as well as the main consumers UN Secretary-General’s Philanthropies and the Green Finance Committee of China Society for of energy and emitters of greenhouse gases.
    [Show full text]
  • The Fiscal Implications of the Low-Carbon Transition
    2019 Greening heavy #GGSD and extractive 26 & 27 November OECD, Paris Forum industries Issue Paper Conference version The fiscal implications of the low-carbon transition Assia Elgouacem, Håvard Halland, Enrico Botta and Gurtegh Singh, OECD 2 | OECD GREEN GROWTH AND SUSTAINABLE DEVELOPMENT FORUM The GGSD Forum is an OECD initiative aimed at providing a dedicated space for multi-disciplinary dialogue on green growth and sustainable development. It brings together experts from different policy fields and disciplines and provides them with an interactive platform to encourage discussion, facilitate the exchange of knowledge and ease the exploitation of potential synergies. By specifically addressing the horizontal, multi-disciplinary aspects of green growth and sustainable development, the GGSD Forum constitutes a valuable supplement to the work undertaken in individual government ministries. The GGSD Forum also enables knowledge gaps to be identified and facilitates the design of new works streams to address them. AUTHORSHIP & ACKNOWLEDGEMENTS This issue note was prepared for the 2019 GGSD Forum to steer discussion around the theme of Session 1 on “Fiscal implications of the low-carbon transition”. This paper was drafted in collaboration with various OECD staff members. The first chapter was drafted by Assia Elgouacem, with inputs from Gurtegh Singh and Enrico Botta, all from the Environment Directorate. The second chapter was drafted by Håvard Halland, Senior Economist at the OECD’s Development Centre, and the third chapter was drafted by Enrico Botta and Gurtegh Singh. This paper benefited from support by the German Federal Ministry of Environment, Nature Conservation and Nuclear Safety (BMU). The opinions expressed herein do not necessarily reflect the official views of the OECD member countries.
    [Show full text]