Tag Archives: risk

Climate policy in 2014

February 14, 2014 |

 

Around the world, nations are striving to use increasingly scarce resources more productively, meet energy security goals, and reach economic growth targets, all while reducing climate risk. These are complex and urgent challenges, and policy plays a critical role in addressing them.

Since our inception in late 2009, Climate Policy Initiative has been working hard to answer pressing questions posed by decision makers through in-depth, objective analysis on some of the most significant energy and land use policies around the world, with a particular focus on finance.

As we continue to tackle these important and complex issues, your feedback on how we’re doing is extremely important. We hope you’ll help us reflect on the past, as we ring in a new year, by participating in a five-minute survey about our work.

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Why risk coverage matters and what can be done to scale up green investment

December 6, 2013 |

 

Risk, whether real or perceived, matters. It is the biggest barrier preventing private capital from flowing into investments and, given the enhanced risk profile of low-carbon technologies, it is even more crucial for climate finance investments. Higher risks demand higher returns and higher financing costs, making low-carbon technologies even less competitive.

While not all risks need to be reallocated, whenever risk falls onto a party not suited or not willing to bear it, risk coverage instruments (such as guarantees) can be key to unlocking private resources without depleting public budgets.

CPI has observed this phenomenon time and time again in our case studies.

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The role of risk in renewable energy deployment: A video overview

June 10, 2013 |

 

In this brief video, CPI senior director Barbara Buchner discusses the role of risk  in renewable energy deployment. She identifies opportunities for the public sector and development financial institutions to unlock capital for green investments.

Learn more about the role of risk in climate finance here: http://climatepolicyinitiative.org/publication/risk-gaps/

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Climate finance untangled

February 20, 2013 |

 

This piece originally appeared on the World Bank blog and is cross-posted here.

Landscape-LargeGlobal leaders have spoken strongly on the urgent need for climate action, putting it back on top of the 2013 agenda. During his inaugural address and State of the Union speech, President Obama gave clear signals about his intentions to address this issue in his second term. At the World Economic Forum in Davos, president of the World Bank Group Jim Yong Kim reminded economic leaders about the potentially devastating impacts that could occur in a world 4°C warmer by the end of the century.

Unlocking finance is an essential part of avoiding that future. But, before leaders can determine how much more money is needed, they need to establish how much is already flowing, what the main sources are, and where it’s going.

These are the key questions my team and I at Climate Policy Initiative aimed to answer with the release of the “The Landscape of Climate Finance 2012”. Our analysis estimated global climate finance flows at an average $364 billion in 2011. To put this in context, according to the International Energy Agency, the world needs $1 trillion a year over 2012 to 2050 to finance a low-emissions transition, so current finance flows still fall far short of what is needed.

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