Climate and Energy

UNFCCC COP20 Official Side Event:

The Role of Domestic Policies in Mobilising Climate Finance

The Institute for Global Environmental Strategies (IGES) and the Organisation for Economic Cooperation and Development (OECD) jointly held a side event at the 20th Conference of Parties (COP 20) of the United Nations Framework Convention on Climate Change (UNFCCC) entitled “The role of domestic policies in mobilising climate finance” on 5 December 2014 in Lima, Peru. The side event highlighted relevant IGES and OECD work on financing barriers to the transfer of mitigation technologies, the role of domestic policies in mobilising climate finance, and the progress of selected countries in developing a green investment framework.

Date / Time 5 December 2014, 15:00 – 16:30
Venue Official Side Event Room Machu-Picchu, COP 20 main venue (Cuartel General del Ejército), Lima, Peru
Organiser Institute for Global Environmental Strategies (IGES)
Organisation for Economic Cooperation and Development (OECD)
15:00 Introductory remarks
Dr. Simon Buckle, OECD
15:05 Introductory remarks
Prof. Hironori Hamanaka, IGES
15:10 Joint presentation on the enabling environment and institutional investors
Ms. Geraldine Ang and Mr. Christopher Kaminker, OECD
15:30 Brief Q&A  
15:33 Presentation on finance for international transfer of mitigation technologies
Dr. Yuqing Ariel Yu, IGES
15:48 Brief Q&A  
15:50 Introduction of the panellists and the discussion questions
Prof. Hironori Hamanaka, IGES
15:52 Panel Discussion
  • Facilitator:
  • Prof. Hironori Hamanaka, IGES
  • Panelists:
  • Ms. Aditi Maheshwari, International Finance Corporation (IFC)
  • Dr. Lu Xuedu, the Asian Development Bank (ADB)
  • Mr. Giles Dickson, Alstom
16:20 General Q&A and closing remarks
Dr. Simon Buckle, OECD

Geraldine Ang, OECD, presented the OECD Policy Guidance for Investment in Clean Energy Infrastructure, noting that the Guidance is a non-prescriptive tool to help governments across country contexts to improve their domestic policy frameworks to mobilise private finance in support of low-carbon and climate-resilient technologies and investment, especially in clean energy infrastructure. Christopher Kaminker, OECD, described the mapping channels to mobilise institutional investment in sustainable energy, including financing instruments, funds, risk mitigants and transaction enablers that can help scale-up investment from institutional investors (e.g. pension funds, insurers) in clean energy infrastructure. Yuqing Ariel Yu, IGES, addressed financing costs and credit constraints that impede the deployment of mitigation technologies in developing countries, noting that the factors of low collateral value of mitigation projects and banks’ preference for the lower-risk high-carbon investments contribute to high debt cost in developing countries.

During the panel discussion, Aditi Maheshwari, International Finance Corporation (IFC), urged a better understanding of domestic investment landscapes and called for a clear signal from governments to enable a positive shift in the investment climate. Xuedu Lu, the Asian Development Bank (ADB), stressed the importance of long term goals and targets and highlighted the need for mainstreaming climate change technology into national development plans. Giles Dickson, Alstom, pointed out that short- and long-terms at the national levels, financial support, carbon pricing, incentive mechanisms, investment in supporting infrastructure, and absorptive capacity in developing countries are the policy interventions matter most to help shift investment patterns away from carbon-intensive systems towards low-carbon and climate-resilient infrastructure and technologies.

In the general discussion, participants considered the need for investors to include environmental safeguards consideration when making their investments, the role of education and innovation policies, potential for self-sufficient crowd-sourcing opportunities, and importance of community buy-in to enhance investment.


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