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Reaching scale with finance: Fiscal policy and blended finance that mobilizes public and private capital for climate action
December 12, 2018 @ 12:30 pm - 2:00 pm
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:
- Nancy Saich, Senior Technical Advisor on Climate Change, EIB
- Idsert Boersma, Director of Partnerships for Development, FMO
- Hubert Ruzibiza, Chief Executive Officer, FONERWA, Rwanda
- Javier Capape, Sovereign Wealth Lab, IE Business School, Spain