The Role of Sovereign and Strategic Investment Funds in the Low-carbon Transition
Sovereign wealth funds manage a large share of the world’s invested capital. The action
or inaction of these funds on climate finance is of crucial importance to the world’s
ability to reach the goals of the Paris Agreement, and restrain global warming to
below 2 degrees Celsius. However, sovereign wealth funds have so far played a very
limited role in climate finance. This report provides guidance on how governments
can support their sovereign wealth funds in becoming climate-aligned commercial investors.
The establishment of synergies between sovereign wealth funds and strategic investment
funds can help scale up investments in clean-energy infrastructure.