“Without climate-smart development, climate change could result in more than 100 million additional people living in poverty by 2030," said Nena Stoiljkovic, IFC Vice President for Global Client Services, during her keynote address "Climate Change – Challenges and Opportunities for Private Sector Companies" at the Green Finance Forum in Frankfurt as part of the 18th Euro Finance Week. According to the World Bank’s recent climate report “Shockwaves” Stoiljkovic said, "with mitigation costs expected to be in the range of $140–175 billion per year by 2030, the private sector capital will be essential."
The Green Finance Forum took place on Tuesday November 17th, ahead of the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21/CMP11) in Paris, and was hosted by IFC and the Hessian Ministry for Economics, Energy, Transportation and Regional Development. The forum discussed how a federal state like Hessen, with an economic policy focused on green finance, can encourage investments in sustainable asset classes.
The forum’s first session entitled "Experience with Sustainable Investment and Sustainable Lending" was moderated by Christian Grossmann, IFC Director of Climate Business. Grossmann led the panel in a discussion on their diverse experience in sustainable investment and sustainable lending in the context of a market placing greater importance on environmental and social aspects in the financial sector .
The second session entitled "Taking up the Challenge -- new sources of Climate Finance" was moderated by Wiebke Schloemer, IFC Senior Manager for Global Infrastructure and Natural Resources and Regional Industry Head. The session addressed how traditional corporate and project finance will continue to fund most climate friendly investments, but other sources of funding, such as private equity and venture capital, blended finance, green bonds, credit enhancements, emissions trading, and securitizations are playing an increasingly important role.
Institutions and governments, including IFC and Germany, can be catalysts and multipliers for mobilizing climate business in developing countries, while banks and funds can contribute to and profit from the growing climate related markets.