Next decade to see unprecedented leveraging of private sector finance to spark a clean energy revolution
- 03 February 2011
Davos, Switzerland, 3 February, 2011: The Climate Group and the International Investors Group on Climate Change (IIGCC) hosted the ‘Financing a Clean Revolution’ lunch at the World Economic Forum’s annual conference in Davos. With 2010 a record year for clean energy investment, discussion at the lunch did not focus on whether, rather on how this low carbon finance could be scaled up and on the role that leaders in the finance and energy sectors can play in making it happen.
Participants agreed that partnership between private sector and governments – in a way and on a scale that has not been seen before – is essential if we are to have the clean energy revolution needed to achieve long-term economic growth and prosperity. This needs to include a better understanding of the risks that can be taken on by different actors, cooperation on smart policy design, effective use of public finances to crowd in private sector investment and better communication of successes in financing and delivering clean technology projects to increase confidence.
Andrew Steer, Special Envoy on Climate Change at the World Bank, gave the keynote speech at the lunch. He noted that there is increasing appetite for clean energy investment all around the world, with over 100 countries having renewable energy targets and incentives, World Bank lending to renewable energy exceeding investment in fossil fuels for the first time in 2008 and the CDM potentially leveraging $250 billion into clean energy by 2020. Nevertheless, there are still significant barriers – such as poor understanding of risks and policy and regulatory uncertainty – that need to be overcome if clean energy financing costs are to be brought down to competitive levels.
Mark Kenber, CEO of The Climate Group, closed the event by thanking the guests and speakers for their participation and offering to facilitate further collaboration in the future.
We would like to thank HSBC and Standard Chartered Bank for sponsoring the lunch and their engagement in the Climate Principles initiative.