Multilateral finance institutions have committed to mobilizing capital from private investors, largely through so-called blended finance, in order to fund climate action and achieve the Sustainable Development Goals. To succeed, these institutions may need to start functioning more like private investment organizations themselves.
BEIJING – The conclusion of the United Nations Intergovernmental Panel on Climate Change’s most recent report is stark: climate action is far more urgent than previously believed, and it must include a wide range of initiatives, from improved regulation to continued technological innovation. But without massive amounts of long-term “patient” capital – which only institutional investors can muster – it will be impossible to transform energy systems fast enough to mitigate the risk of ecological, economic, and social disaster.
BEIJING – The conclusion of the United Nations Intergovernmental Panel on Climate Change’s most recent report is stark: climate action is far more urgent than previously believed, and it must include a wide range of initiatives, from improved regulation to continued technological innovation. But without massive amounts of long-term “patient” capital – which only institutional investors can muster – it will be impossible to transform energy systems fast enough to mitigate the risk of ecological, economic, and social disaster.