The landscape of mechanisms channelling public and private sources of climate finance has significantly evolved and broadened over the past two decades. Many financial development institutions have integrated climate action into their operations and are now deploying climate finance via a wide range of instruments. This has resulted in a sharp rise in public climate finance volumes since the mid-2000s.
The private sector is also playing an important role. The global fossil fuel divestment movement reached USD 14 trillion in asset under management by April 2020. Moving away from fossil fuels towards clean energy generation and sustainability practices provide a clear business case for companies. In this context, Globalfields has helped a number of organisations structure their strategies in green finance, the benchmarking of loans and bonds around ‘green’ principles as well as the Sustainable Development Goals and the Environmental and Social Safeguards.
In addition, Globalfields is advising companies in their efforts to navigate the global climate finance landscape, including in work to design and implement strategies for accessing blended resources and to align investments with global or national targets, such as the Paris Agreement. This reflects the growing urgency to respond to the negative impacts of climate change by scaling up action in climate mitigation (energy efficiency, renewable energy), and adaptation (water management, weather-based insurance, ecosystem-based services and climate-resilient infrastructure).
This case study was written by Marta Simonetti, Founder and Managing Director of Globalfields. Visit Marta's bio or contact us today to discuss this project.