Co Founder, Prelude Ventures
Chair, Energy Transitions Commission
Ashraf Mahmood Wathra (tbc)
Governor, State Bank of Pakistan
Managing Director, Finance in Motion
Gerard Reid (tbc)
Founder Alexa Capital
Kate Hampton (tbc)
CEO, Children’s Investment Fund Foundation (CIFF)
How can we implement carbon pricing and trigger significant shifts towards climate investment and innovation?
Financing the shift to green energy requires the right investment choices by many different types of investors. While new players are emerging in the field of renewable energies and energy-efficiency investment, in particular through corporate renewable energy, other investors are seeing an increasing share of their portfolios becoming subject to carbon risk. Renewable energies are becoming the low-cost option in many countries and regions. This attracts direct green investment from non-traditional energy investors, as it translates directly into costs avoided, business diversification, energy-bill reduction, and additional income streams. Renewables have a positive image among the public, as they are seen as socially responsible investments. On another level, the lack of adequate indicators makes it increasingly complex to align investment portfolios with the long-term goal of shifting to green energy that leads to a low-carbon economy and avoids the risks of locked-in carbon investments resulting in stranded assets.
A goal of this session is to explore the structures and financial and regulatory framework that encourage new businesses to invest in renewable energies and energy efficiency and to explore whether they are suitable for traditional investors. At the same time, the session aims to identify adequate investment indicators or rating mechanisms to limit carbon risk and help investors to decarbonise their portfolios. This would help them to be in line with the shift to green energy and to explore the conditions needed to develop a market for low-carbon investments (i.e. low-carbon indices).