-
Sovereign wealth funds: the catalyst for climate finance?
June 5, 2017 Editor 0
Following the Paris deal on international climate change, governments are beginning to explore new financing mechanisms for investing in the growing low carbon economy. Over the next decade sovereign wealth funds (SWFs) could become an important game changer in green investing
. Recognizing the untapped potential of SWFs, two key questions emerge: how can SWFs increase their exposure to green asset classes? And what are the constraints?
Investors and financial institutions are becoming increasingly aware of the risks associated with fossil fuel projects and are showing growing interest in green bonds and other financing tools that facilitate investment in low-carbon energy solutions.
Being patient investors, with longer term investment horizons than many others in the financial services sector, SWFs could become catalysts for implementing the December 2015 Paris Climate Agreement
. In the November 2016 annual meeting of the International Forum of Sovereign Wealth Funds in Auckland, participants highlighted that SWFs are particularly well-positioned to become trailblazers in green investment. The majority of members are oil-based SWFs which are looking to economic diversification of their finite carbon wealth into industries and sectors that would yield broader societal, economic and financial benefits.
Related Posts
Four ways of addressing pluralism for CSR
- Tackling the menace of poverty by capacity building: case-based evidence on multi-sectoral partnerships in India
Capturing the Innovation Mindset at Bally Technologies
Energy efficiency and waste reuse: A solution for sustainability in poor West African countries? Case study of the shea butter supply chain in Burkina Faso
Ascend Your Innovation Plateau: Think Leadership
Angola: Huawei, Angola’s Ministry of Education to Connect the Youth
Categories: World Bank PSD
Tags: Sovereign wealth funds
Incentivizing equality: Investment-led development as a win-win for all Corruption, income and business development
Subscribe to our stories
Recent Posts
- Entrepreneurial Alertness, Innovation Modes, And Business Models in Small- And Medium-Sized Enterprises December 30, 2021
- The Strategic Role of Design in Driving Digital Innovation June 10, 2021
- Correction to: Hybrid mosquitoes? Evidence from rural Tanzania on how local communities conceptualize and respond to modified mosquitoes as a tool for malaria control June 10, 2021
- BRIEF FOCUS: Optimal spacing for groundnuts in smallholder farming systems June 9, 2021
- COVID-19 pandemic: impacts on the achievements of Sustainable Development Goals in Africa June 9, 2021
Categories
Archives
Popular Post-All time
- A review on biomass-based... 1k views
- Apply Now: $500,000 for Y... 798 views
- Can blockchain disrupt ge... 797 views
- Test Your Value Propositi... 749 views
- Prize-winning projects pr... 722 views