Mobilising Long-Term Finance for Green Investments

Event Type
Workshop

Location / Date
Bonn, 08.11.2013

German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)

The workshop brought together policy makers, regulators, researchers, and investors to initiate result-oriented discussions of relevant stakeholders about concrete proposals to mobilise long-term green finance. The focus was on institutional investors and possibilities to overcome their investment barriers, but also a more holistic perspective had been considered.
Background: There is international consensus about the necessity of a green transformation, which entails, first of all, huge investments in green infrastructure. Estimations of actual financing needs vary, but in most cases, amount to an annual USD 1 to 2 trillion for the upcoming years. As industrialized countries are confronted with depressing budget constraints, it seems clear that public budgets alone will not meet the challenge. Public interest has therefore concentrated on private investors who might have the capacity to close the financing gap. Institutional investors in particular, like pension funds, insurance companies and sovereign wealth funds, seem to be adequate sources as they have assets of over USD 70 trillion under their management. Unfortunately, the relevance of this group of investors for green projects is remote and private investors are reluctant to engage in green investments. 

For this reason, the international community discusses possibilities to mobilize capital for long-term green investments. The 2012 G20 Leader's Declaration mandated the Development Working Group to further explore ways to mobilize private funds for green investments in developing countries and emerging markets, including through the public-private Dialogue Platform for Inclusive Green Investments. The International Finance Corporation (IFC) has been asked to deliver two rounds of stock-takings and various other researchers have contributed mappings of finance flows and case studies in the area of green finance. A number of international discussion / consultation forums have been running in parallel, some of them have focused more on green and sustainable investments, others more on long-term infrastructure investments. 

After several years of stocktaking and consultations it is now time to move forward and implement concrete and focused approaches to mobilise capital for green and long-term investments.

For further information please contact Nannette Lindenberg.

Hinweis

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