What green finance needs to speed the global transition to a net zero economy

Cop28 offers an opportunity to rethink how we can develop investments that are profitable, liquid and easily accessibleAs we move from UN climate week to Cop28 in Dubai later this year, we must stop the "greenwishing" and "greenwashing" and start thinking about the instruments that will enable the private sector and private investors to channel more capital toward climate resilience and sustainable development. While the public sector has an important role to play in this respect, scalable solutions require significant commitments of private sector resources. With the climate crisis already wreaking havoc on poor and rich countries alike, unlocking this largely untapped pool of capital has become an urgent priority.Yet as matters stand, many investors associate climate-centric investments with "social impact" and reduced profitability. While sophisticated investors have the means to deploy their capital profitably toward decarbonisation, the energy transition and other climate-related sectors, such investments tend to be illiquid. They remain tightly wound up in private equity funds, and thus inaccessible to the ordinary investors and savers who are most exposed to climate-driven food, water and energy insecurity. Continue reading...