Consilium Capital Senior Adviser Ian Callaghan has been instrumental in a call by a worldwide group of global climate finance organisations for coordinated action to scale up climate investment ‘infrastructure’ and financial flows following the COP21 Paris Conference in early December.
Reflecting the growing debate around conversion of national INDC commitments into targeted investment, the group has put forward a three-point framework of measures to encourage long term capital allocation from financial markets alongside public finance.
The plan seeks to build on the national priorities and accompanying data contained with each INDC to help build investment pipelines that have a climate policy rationale, regulatory support and the underlying features and transparency required for markets and finance providers to make multi-billion, long-term investment decisions.
The call is for three core actions:
Establishing detailed “Climate Investment Plans” (CIPs) at a country level, based on the country’s intended INDC actions as submitted pre-Paris. These CIPs will set out “investment ready” commercial projects alongside proposals for concessional financing.
Backing these CIPs – and all other climate finance initiatives – with improved information, including through the creation of standard data on climate projects and finance.
Establishing a global network for climate investment, housing essential climate finance infrastructure and bringing together major participants including market research, policy makers and intermediaries as well as institutional investors, in active partnerships to facilitate transaction flows.
The 3 Point Plan has attracted support from Rachel Kyte, former World Bank Group Vice President and Special Envoy for Climate Change:
“The UN has calculated that the INDCs put us on track for 2.7 degrees warming – better than where we were headed but still perilously high. However, to turn them from words to low carbon growth, jobs and opportunity, we have to mobilize the finance needs laid out and put in place the sensible macroeconomic and fiscal policy packages that support this new trajectory.”
“Alongside those, we need to create infrastructure for the climate finance sector itself to work effectively. I therefore commend this initiative as the means for finance practitioners to make progress in promoting deal flows at both global and country levels.”
The Call to Action, and an invitation to support it, can be found at www.calltoactiononclimatefinance.net
The organisation founded by another Consilium Capital Senior Adviser, Mark Campanale, Carbontracker.org, is among the supporters of the Call to Action.