A Global Push For Climate Finance

By Aubrey Sherretta

June 3rd 2014 marked the launch of the Global Innovation Lab for Climate Finance, a partnership between the US, UK and German governments with several private sector representatives to develop and promote climate finance instruments globally.  The lab includes leaders from governments and financial institutions who will identify and analyze financial opportunities for private investment that could have large-scale impacts on both climate change mitigation and adaptation.  Overseeing the analysis of proposed climate finance instruments are the Climate Policy Initiative and Bloomberg New Energy Finance.

Lab Principal Purna Saggurti, chairman of global corporate and investment banking at Bank of America Merrill Lynch said: “We look forward to sharing our experience from structuring and financing numerous transactions in clean energy, green bonds, and environmental markets.”  Bank of America, a Wharton IGEL corporate advisory board member, along with Merrill Lynch have already committed to mobilize 70 billion dollars for low-carbon business opportunities.

Large-scale investments are required to reduce emissions and adapt to the effects of climate change, according to the United Nations.  The Global Innovation Lab for Climate Finance’s push to incentivize climate investment may be viewed as a major step towards mitigating the adversities of a changing climate.  The lab has already attracted more than 80 ideas for potential climate finance instruments from the public and private sectors, and hopes to attract billions in private investment for climate-conscious investment opportunities in developing countries.  Changing the dialog around climate change from financial burden to opportunity may be the greatest motivator to bring about a new era in climate action.  Keep an eye out for chosen ideas to be released by the lab in the coming weeks.

Also, stay tuned for Knowledge@Wharton Special Report on this topic coming later this year.

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