Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies, and Chair of the CFLI said that investments that cut greenhouse gas emissions and fight climate change also spur economic growth.
April 09, 2021. By Manu Tayal
Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies, and Chair of the CFLI said that, investments that cut greenhouse gas emissions and fight climate change also spur economic growth.
He was speaking during the release of the report ‘Unlocking Private Climate Finance in Emerging Markets: Private Sector Considerations for Policymakers’ by Climate Finance Leadership Initiative (CFLI) in partnership with the Association of European Development Finance Institutions (EDFI), and the Global Infrastructure Facility (GIF).
He said “this report outlines steps emerging markets can take, with support from business and the international community, to attract more private capital for green projects, create new public-private partnerships, and ensure a strong recovery from the pandemic.”
The report outlines key factors for fostering the public-private collaboration necessary to close the climate finance gap in emerging markets. It also highlights policies governments in emerging markets can advance to attract investment to projects in key areas: clean energy, low-carbon mass transit, climate-friendly water and waste systems, green buildings, and sustainable land use.
Going forward, the CFLI will seek to design, launch, and coordinate a series of “country pilots” in collaboration with local governments, and leading private international and domestic financial institutions. The first pilots are planned for India and Indonesia, with the goal of replicating this model in other countries in the years ahead. This work will drive forward capital mobilization to accelerate the energy transition and will build upon the policy considerations released today to drive policy changes in pilot countries.
With energy transition finance topping $500 billion in 2020, this new report provides emerging markets with potential policy considerations to help attract private capital. These considerations reflect the experience of investors that have deployed billions in clean energy in emerging markets and the progress countries around the world have made in stimulating investment in support of sustainable growth.
Private Sector Considerations for Policymakers makes clear the factors that investors consider when evaluating investments in sustainable infrastructure projects in emerging markets. These factors – the Policy Considerations–offer a menu of potential policy changes available to all countries, regardless of their current investment environment, or position on the path to a low-carbon, resilient economy. The report also offers examples of how different enabling environment mechanisms have succeeded in accelerating the transition across a diverse range of economies.
The Policy Considerations were informed by a two-month public consultative process and direct outreach to over 6,000 global experts and stakeholders representing business, government, and civil society perspectives.
“Development in emerging markets funded by private capital can be fully sustainable. To achieve this, it is necessary to adopt financing best practices that are now available and engage the private sector with clarity of vision, full transparency of aims and a partnership attitude,” said Francesco Starace, CEO and General Manager of Enel.
“Moving to a low-carbon economy will be that much harder until private capital finances far more sustainable infrastructure in emerging markets. This report offers many policy options the public sector can use to attract the private capital that these countries need,” said David M. Solomon, Chairman and Chief Executive Officer of Goldman Sachs.
“Collaboration between private investors and publicly-backed institutions - like the European DFIs - can support reforms in emerging and frontier markets. We believe that this model has immense potential to mobilize climate finance where it’s needed most,” said Bruno Wenn, Chairman, Association of European Development Finance Institutions.
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