The Green Fiscal Policy Network organizes regional workshops and other events on topics related to the role of fiscal policies in the transition to an inclusive green economy. Information on upcoming, recent and past events organised by the Network, our partners and other organisations can be found below.
The Paris Agreement calls for all financial flows to be “consistent with a pathway towards low GHG emissions and climate-resilient development.” In practice, scaling up private finance and redirecting public investment will be key. Two promising areas to incentivise private investment are blended finance and fiscal policy. On the one hand, by using a combination of sources of concessional funding to leverage private investment, blended finance instruments are delivering both attractive returns to private investors and climate outcomes. On the other hand, effective fiscal policy and the mobilization of Sovereign Wealth Funds can channel significant flows of public resources for climate finance, while incentivizing private finance. Care needs to be taken not to crowd out the private sector.
This side event at the COP24, jointly organized by the Green Fiscal Policy Network, Climate Policy Initiative (CPI), and the Institute for Climate Economics (I4CE), highlighted several examples of mobilizing public and private capital for climate action, discussed some of the challenges faced and how to scale up these types of approaches to ensure a wider low-carbon transition.
The event was opened by Ian Cochran, Senior Advisor at I4CE. Tiza Mafira, Associate Director at CPI gave a scene-setting presentation on blended finance and fiscal policy. This was followed by a panel discussion with:
The event was moderated by Dr. Angela Falconer, Associate Director, Climate Policy Initiative.
Some key issues raised in the discussions include the need for further cooperation and partnerships especially with local partners to increase impact; the need for better sharing of lessons learned, including between development banks; and the importance of avoiding crowding out effects. Panellists also highlighted some of the information and measurement challenges faced; discussed the role of fiscal incentives in mobilising investment and supporting climate targets; and the need to align policy objectives and ensure a just transition.