Climate Week NYC FEEM Side Event on “Funding Low Carbon Transition: the Role of the Financial System”
10:00 - 13:00
Within the framework of Climate Week New York City, France Stratégie and Fondazione Eni Enrico Mattei jointly organise a high level event gathering top-level experts and policymakers in the fields of climate change, finance, and monetary policy, to discuss the possible contributions of financial mechanisms for carbon emission reductions.
Given a context of tight budgetary constraints for most governments across the world, public spending will not be sufficient to provide the level of investment needed to deliver on our collectively agreed target of reducing global warming by two degrees. The enforcement, implementation and potential success of the “Intended Nationally Determined Contributions” therefore depend dramatically on setting up the right financial mechanisms for efficient carbon pricing. A growing number of private financial operators, Central Banks and financial regulators are already incorporating sustainability factors into their objectives and policies.
On June 30th, Presidents Dilma Rousseff and Barack Obama met in Washington, D.C. and underlined in a joint-statement the role the financial system must play alongside public funding:
"The Presidents recognize the social and economic value of mitigation actions and their co-benefits to adaptation, health and sustainable development. The Presidents pledged to work together toward mobilizing public funding and developing financial instruments to catalyse large-scale private investments to support low-carbon development projects and countries’ transitions to low-carbon economies. Further, the Presidents affirmed the need for continued, robust financial support to help realise developing countries’ mitigation potential and to enhance their adaptation actions."
The aim of the high level event will be to assess the effectiveness of various financial mechanisms that can be activated by private and public operators in order to foster carbon reductions. Experts and policymakers will also discuss whether there is scope – at a national, regional, or international level – for an agreed definition of an “economic and social value” of mitigation actions that could anchor private and public investments.