CCXG Global Forum March 2018, Financing Climate Futures – Rethinking Infrastructure by A. Cox

CCXG Global Forum March 2018, Financing Climate Futures – Rethinking Infrastructure by A. Cox

• 2.
  G20 Hamburg Climateand Energy Action Plan for Growth OECD, UN Environment and the World Bank are requested to shed more light on Article 2.1.c of the Paris Agreement by “compil(ing) ongoing public and private activities within the G20 for making financial flows consistent with the Paris goals and, building on this, to analyse potential opportunities for strengthening these efforts.”
• 3.
  Towards a transformativeagenda The initiative provides guidance for countries on how to move beyond an incremental approach to financing low-emission, resilient infrastructure systems towards the transformational agenda needed for decisive climate action.
• 4.
  High-level Discussion inNYC • Held alongside the UN General Assembly in New York • High-level panel with around 100 participants, including: • Ministers from Fiji, Poland, Ethiopia, Japan • High representation from IGOs: Patricia Espinosa, UNFCCC; Erik Solheim, UN Environment; Laura Tuck, World Bank Group; Angel Gurría, OECD Secretary General • Focused on the synthesis report and key messages from the project, ahead of the launch of the full report prior to COP24
• 5.
  Synthesis report • Howwill innovations in technologies, business models and finance shape the future of infrastructure and create new opportunities to combat climate change? • To what extent are existing policy frameworks, institutions and financial systems fit for purpose in ensuring that infrastructure investments are consistent with low- emission, resilient pathways? • How could public and private actors work together to redirect financial flows at scale into activities compatible with a low-emission, resilient future? • How can we enhance international and national cooperation to shift investment away from carbon- intensive infrastructure at the pace and scale needed?
• 6.
  Six transformative areasto align financial flows with low- emission, resilient infrastructure
• 7.
  Why is ittransformative? • Avoid emissions lock-in and implant resilience • Prevent stranded assets Priority action areas • Develop long-term low-emission strategies, through cross-ministry collaboration and stakeholder consultation with development at its core • Strengthen climate capacity • Develop pipelines of infrastructure projects compatible with climate goals • Mainstream climate-resilience considerations across planning practices • Prepare for different ‘futures’ through specialised foresight personnel or units within ministries
• 8.
  Why is ittransformative? • Current technologies are not on track • New business models, technologies and financing practices create opportunities for more sustainable development Priority action areas • Deploy targeted innovation policies to create a market for climate innovations • Deliver and scale-up support for research and development of climate solutions • Overcome financial barriers to demonstration, deployment and early-stage commercialization • Promote international technology diffusion and adoption at scale
• 9.
  Why is ittransformative? • Budgetary practices influence public and private investment behaviour • Current dependence of many governments on fossil fuel revenues puts long-term fiscal sustainability at risk Priority action areas • Diversify government revenue streams • Align fiscal incentives with climate objectives • Leverage public procurement practices and indirect spending through SOEs or development finance institutions • Ensure an inclusive transition along the way to facilitate social acceptance
• 10.
  Why is ittransformative? • Sustainable infrastructure financing faces two problems: • The need to scale-up all types of infrastructure finance • The need to shift finance to the right types of infrastructure Priority action areas • Mainstream climate considerations in investment decisions and strategies • Disclose climate-related risks and opportunities • Rethink financial supervision in light of the direct links between long-term financial stability and climate change effects
• 11.
  Why is ittransformative? • Provide financing for new low-emission, resilient infrastructure in less mature markets • Mobilise commercial finance for infrastructure in developing countries • Support policy reform and build institutional, technical and knowledge capacity Priority action areas • Strengthen development banks’ mandates and incentives by aligning portfolios with climate goals • Bring new investors and sources of finance to investments to create new climate markets through blended finance • Use concessional finance to enable development finance institutions to drive the transformation
• 12.
  Why is ittransformative? • Today’s infrastructure choices will: – determine the extent and impact of climate change – contribute to the vulnerability or resilience of urban societies – create the backbone for a strong, inclusive urban development Priority action areas • Integrate land-use and transport policies • Align national and local fiscal regulations with investment needs in cities • Build climate-related and project finance capacity in cities • Seize the development benefits of low-emission, resilient planning
• 13.
  8 case studies UNEnvironment Greening the Belt and Road Initiative World Bank Group Financing Resilient Urban Infrastructure: Lessons from World Bank and Global Experience Imperial College Decarbonising energy intensive industries: options and strategies UN Environment How digital finance favours infrastructure investments, decarbonisation and energy access to all OECD (DAF) Blockchain, infrastructure and the low-emission transition Jan Corfee- Morlot et al. Achieving Clean Energy Access in Sub-Saharan Africa OECD (DCD) Mobilising commercial capital for sustainable infrastructure: Insights from national development banks in Brazil and South Africa OECD (CFE) Financing climate objectives in cities and regions to deliver sustainable and inclusive growth
• 14.
  Outputs Synthesis report Keymessages Cities case study key findings UN Shifting the Lens paper Forthcoming outputs • Full publication • Case studies • Video • Full spread infographics
• 15.
  Project milestones Workshop • 25-26April: Foresight workshop in Washington DC Drafting • 22 June – 4 July: First draft of synthesis report for review • 27 July – 15 August: Second and last draft for review - OLIS Seminar • 28-29 June: Seminar to discuss main messages UNGA • 24 September: Launch of key message in New York City at the UN General Assembly COP24 • late November (TBD): Launch of final report • 12 December (TBC): Promotional events at COP24 in Katowice, Poland
• 16.
  Thank you! For moreinformation: http://www.oecd.org/environment/cc/climate-futures Contact: [email protected]