structure, ALTÉRRA challenges all of us – MDBs [multilateral development banks], philanthropies and private capital – to maximise total climate financing to emerging markets by cre- atively combining first loss structures, guarantees, FX [foreign exchange] hedging and securitisation. This starts with getting incentives right. MDBs should use all their capacities – oper- ational, financial, and technical – to maximise total financing to address climate change. G20 countries as the main shareholders should adopt as their Key Performance Indicators the total impact of MDB actions rather than narrow measures of balance sheet exposures. Maximising total impact will require much greater and more effective use of guarantees, insurance, and blended finance … MDBs can help address barriers to scaling private investment such as inadequate country-level invest- ment roadmaps, and the uncertainties around whether investments can be considered transition-aligned … The decommissioning of (new) coal plants in Asia will not be feasible without the combination of blended finance, and critically, Energy Transition Credits centred in high integrity VCMs [vol- untary carbon markets]. That is the brutal math of what it takes to address over $4 trillion of stranded assets. And it will be the reality if we want to address nature-based solutions at scale. That’s why now is the time for the G20 to grasp the nettle to create global [VCMs]. … VCMs can provide hundreds of billions of dollars of annual cross bor- der capital flows to emerging markets. Most companies making net-zero com- mitments are in advanced economies, and the most efficient emission reduc- tion projects will be in emerging and developing economies. VCMs can play important roles in retiring high emit- ting assets and preventing new coal generation. And voluntary carbon
Global clean energy invest- ment has grown over 40% since 2020 and stands at $1.8 trillion. That is almost double the amount for fossil fuels. 40 % $ 1.8 tr
markets can create significant financing for biodiversity and indigenous peoples … Authorities must establish stand- ards for end-to-end integrity in carbon credits … The World Bank and the IDB [Inter-American Development Bank] can help monitor social integrity … This points to the next fron- tier of innovation in transition finance: addressing the nature climate intersection. Climate change is becoming the dominant cause of nature and biodiversity loss. Con- versely, agriculture, forestry, and land use currently account for a fifth of GHG [greenhouse gas] emissions, they represent the sole sink for almost 60% of human-generated carbon emissions, and they could be the most cost-effective form of emissions reductions … Financing nature positive solutions must become a major focus of climate finance innovation. No emerging or devel- oping economy can shoulder the entire burden of financing their transitions … Finance must move as readily across bor- ders as emissions. This requires public catalytic capital that can accelerate and amplify private flows, high integrity car- bon markets, and the pooling of global demand for new green products to scale financing for heavy emitting sectors. Finally, we need innovation in finance that recognises that we are part of nature not apart – or separate – from it. Financial Innovation for Climate Investment and Develop- ment, Inter-American Development Bank, 28 February 2024
Æ MARK CARNEY ÈÖçà¾ÖçãÚîÞèéÝÚÐãÞéÚÙÉÖéÞäãèÎåÚØÞÖáÀãëäîäã¾áÞâÖéÚ¼ØéÞäãÖãÙÁÞãÖãØÚØÝÖÞçäÛ½çääàěÚáÙ¼èèÚéÈÖãÖÜÚâÚãéÖãÙÝÚÖÙäÛéçÖãèÞéÞäã ÞãëÚèéÞãÜÖé½çääàěÚáÙ¾äçåäçÖéÞäãÃÚÖáèäØäØÝÖÞçèéÝÚÂáä×ÖáÁÞãÖãØÞÖá¼ááÞÖãØÚÛäçÉÚéÕÚçäÃÚìÖèÜäëÚçãäçäÛéÝÚ½ÖãàäÛÀãÜáÖãÙÛçäâ éä ÖãÙéÝÚ½ÖãàäÛ¾ÖãÖÙÖÛçäâ $éä ÃÚØÝÖÞçÚÙéÝÚÁÞãÖãØÞÖáÎéÖ×ÞáÞéî½äÖçÙ $ÖãÙéÝÚÂáä×ÖáÀØäãäâîÈÚÚéÞãÜ ÖãÙÀØäãäâÞؾäãèêáéÖéÞëÚ¾äââÞééÚÚäÛéÝÚ½ÖãàÛäçÄãéÚçãÖéÞäãÖáÎÚééáÚâÚãéè $ ÖãÙèÚçëÚÙÖèěçèéëÞØÚØÝÖÞçäÛéÝÚÀêçäåÚÖã ÎîèéÚâÞØÍÞèà½äÖçÙ
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