In association with the ADB Institute
The Paris Agreement at COP21 marks a decisive turning point in our collective response to climate change. Each country must now spell out a credible roadmap for action consistent with the goal of holding the average temperature increase to well below 2°C above pre-industrial levels and pursuing efforts to limit the increase to 1.5°C. As countries formulate their strategies, it will be important to consider how policies can help investors seize opportunities presented by the transition to a low-carbon economy and overcome investment barriers.
Effective policies will unleash the transformational capacities and capital of the private sector and will allow investors and other actors including cities, to plan with confidence. The low carbon transition requires little more capital than the trillions that need to be invested anyway and comes with a wide range of returns. But it will require a massive shift towards low-carbon, energy efficient and climate-resilient systems.
Green finance and investment is becoming a mainstream theme for investors and policy makers globally, as underscored by the creation of the G20 Green Finance Study Group under the Chinese Presidency and the establishment of the Task Force on Climate-related Financial Disclosures by the Financial Stability Board.
AGENDA AND ISSUES FOR DISCUSSION
The OECD, as part of its extensive work on green finance and investment, convened the inaugural 2014 Green Investment Financing Forum (GIFF) and the 2nd GIFF in 2015 at OECD Headquarters. Building on the success of these events, this year, the OECD held the 3rd GIFF event in Tokyo, in association with the Asian Development Bank Institute (ADBI). This event, as in previous years, gathered senior policy makers and key actors in financing green investment from around the world for a targeted discussion under the Chatham House Rule.
This year’s edition focused on Asia – a region with rapidly growing economies, developing financial markets and colossal green investment needs. Policy makers in Asia are increasingly examining ways to promote investment in high-quality, green infrastructure in order to achieve sustainable growth while ensuring the transition to a low-carbon economy.