Nneka Chike-Obi’s Post

Join Bloomberg on June 25th at our second Sustainable Finance Forum during London Climate Action Week, where regulators, industry experts and financial markets participants will discuss how they are navigating the evolving sustainable finance landscape. Register your interest here: https://bloom.bg/3wKT4jK #LCAW2024 #ClimateAction #SustainableFinance

"Green finance cannot be viewed as a cyclical trend," writes Dr Rhian-Mari Thomas OBE chief executive of the Green Finance Institute and chair of the National Wealth Fund Taskforce in an op ed for Sustainable Views. "Leading financial institutions have quit the world’s largest climate coalition and boardrooms are increasingly turning their attention to the opportunities presented by artificial intelligence, as though the need to redirect capital to achieve climate goals is last year’s fad," she says. "We are entering a new era of global politics and technological advancement with all its resulting unpredictability, but there are still prevailing certainties. The climate challenge remains existential, and the need for capital is significant." Read more below. #greenfinance #climatefinance #climatechange https://lnkd.in/eXjHVgkk

Climate finance serves as a crucial support system for projects combating climate change. At its core is "price," a fundamental concept that shapes our endeavours profoundly. Pricing mechanisms like carbon taxes and cap-and-trade systems incentivize emission reductions and promote investment in cleaner technologies. They guide financial resource allocation for climate projects, assess investment viability, and inform policy decisions. These mechanisms also drive market development for carbon credits and renewable energy certificates, fostering innovation while ensuring fairness and resilience in climate finance. Carbon pricing integrates the true cost of emissions into our economic framework, employing taxes or cap-and-trade systems to guide companies towards environmentally sound choices. It transcends mere financial considerations; it reflects our commitment to safeguarding tomorrow.   Instruments such as green bonds symbolize optimism, assessing risks and rewards in our pursuit of sustainability. The social cost of carbon quantifies our impact, informing policies that safeguard our planet. These prices serve as beacons, directing us towards a future of cleaner, more vibrant possibilities.  Equity serves as our guiding principle, ensuring fairness in distributing benefits across all communities, fostering resilience in the face of challenges. Our pricing strategies must be equitable, nurturing progress while protecting the most vulnerable. In these principles, we chart a course towards a world where every investment secures a future we can proudly inherit. #Climatefinance #Investmentbanking

Driving finance to the green infrastructure we need - to future-proof our economies, creating growth and energy security - doesn't come down to commitments. Capital will flow where it generates attractive risk-adjusted returns - fossil fuels continue to present such an opportunity over the short-term to the world’s financial institutions. Banks want to lend to commercially viable projects, irrespective of the seismic political shifts happening all around them.   As the #WorldEconomicForum convenes this week in #Davos, I'm looking forward to sharing the work we've done at the Green Finance Institute to develop financial models to accelerate the green transition and how public private partnerships can be scaled to create investable opportunities globally.   Read more in my Sustainable Views opinion piece below 👇

Investors urge policymakers to unlock finance for a 'green and competitive UK IIGCC sets out investor priorities for the next government to help accelerate transition to a competitive, energy-secure, resilient, and climate-neutral economy The Institutional Investors Group on Climate Change (IIGCC) has today listed a series of investor priorities for the next government which could unlock investment and deliver a "green and competitive UK". Business Green full article: https://lnkd.in/eRZGbv_n

Voluntary carbon markets - a quick refresh 🍸 on why they are so important: 🦖The reality is that public finance and the multilateral system are not delivering the required levels of climate ambition, and more innovative sources of finance are urgently needed. 🦖Due to the high compliance costs involved in deploying large sums of government money, DFIs are structurally unsuited for investing in small projects of $5m and below, and prefer to devote their limited manpower and resources to a few larger projects, rather than many small ones. 🦖Access to VCMs is therefore an important source of financing to help provincial governments in the Global South get small – but potentially high-impact – projects off the ground. 🦖Carbon credits have also begun to feature in novel financing mechanisms that seek to address some of the most complex obstacles to a green transition (e.g. early retirement of coal assets). 🦖Notably, carbon credits originated in the Global South can offer an immense range of co-benefits beyond carbon emissions reductions, due to the Global South's disproportionate vulnerability to climate risks. 🦖One encouraging trend that has emerged despite a broader slump in voluntary carbon credit prices in 2023 was that carbon credits delivering co-benefits have continued to fetch a premium over credits that do not. 🦖This suggests that there is a lot more to be gained by bringing more carbon finance to the Global South! VCMs must be seen as part of any inclusive climate finance architecture. Thank you Peter Cripps for publishing my first article for Environmental Finance 😊 https://lnkd.in/gtcP5tJv

Join Bloomberg at our second Sustainable Finance Forum during London Climate Action Week, where regulators, industry experts and financial markets participants will discuss how they are navigating the evolving sustainable finance landscape. Register your interest here: https://bloom.bg/44NSGO7 #LCAW2024 #ClimateAction #SustainableFinance

Join Bloomberg at our second Sustainable Finance Forum during London Climate Action Week, where regulators, industry experts and financial markets participants will discuss how they are navigating the evolving sustainable finance landscape. Register your interest here: https://bloom.bg/4aqzjvv #LCAW2024 #ClimateAction #SustainableFinance

A great article by Mark Kenber of VCMI in BusinessGreen that highlights the transformative potential of carbon markets to accelerate net zero progress, particularly in developing economies.   As global leaders convened at the World Bank Spring Meetings last month, the consensus was clear: scaling the carbon markets is essential to mobilising finance for climate action across the globe. With the potential to unlock up to $300bn in annual investment by 2030, the growth of voluntary carbon markets is crucial.   Kenber points out that even the most ambitious companies are struggling to meet their Scope 3 emission reduction targets. This is a complex issue that demands more than just effort; it requires a systemic shift in how businesses operate and engage with their value chains. He emphasises that "carbon credits can help companies not just catch up – but step up: take responsibility for more emissions today – and in doing so bring global emissions down more quickly."   Read the full article here: https://lnkd.in/dNX9MP9N #VCMI #VCM #WorldBank #ClimateAction

Important innovation for mobilizing private climate finance