The number of investors coalitions dedicated to climate solutions is growing fast prior to COP21 next December in Paris. Novethic’s Research Center gives keys to understanding why investors are turning to climate change and to disentangling the links between carbon risk, stranded assets, divestment and ESG integration into asset management. It explains key concepts such as Carbon risk, Stranded Assets, Carbon footprint, Go Fossil Free, Divest/Invest and Divest/Engage.
The frequency and severity of natural catastrophes and extreme events has radically increased since the turn of the century, causing major economic losses and human suffering. Societal resilience and loss mitigation requires the involvement and cooperation of multiple players: governments, corporations, individuals, as well as the insurance sector. The Geneva Association analyses the existing and potential role of insurance and risk management in tackling the challenges posed by climate risk and extreme events.
Green bonds were created to fund projects that have positive environmental or climate benefits. In 2014, the green bond market rocketed with $35bn issued, triple the amount issued in 2013 ($11bn). Find out more with the Green bond Initiative:
The Green Bond Principles are voluntary process guidelines that recommend transparency and disclosure, and promote integrity in the development of this fast-growing market by clarifying the approach for issuance of a Green Bond.
At the occasion of the Climate Finance Day, Paris EUROPLACE published a brochure on “Green Bonds : the French Expertise” that you can download here
According to the Green investment report published by the World Economic Forum, experience demonstrates the potential for closing the green investment gap by mobilizing private finance through the smart use of targeted public finance. Evidence from climate-specific investment illustrates that the targeted use of public finance can scale up private financial flows into green investment through measures such as guarantees, insurance products and incentives, combined with the right policy support.
Prevailing rules and incentives governing financial markets can disadvantage long-term, sustainable behaviour. Long-term environmental risks are not being effectively counted and green opportunities are inadequately valued. Such distortions can lead to a misallocation of capital and a danger of systemic risks to the economy and the natural environment. The UNEP Inquiry identifies best practice, and explores financial market policy and regulatory innovations that would support the development of a green financial system.