Nordic Statement on Innovative Climate Finance launched at COP21
At an event at the Nordic COP21 pavilion on Tuesday, December 8, the five Nordic countries – Denmark, Finland, Iceland, Norway and Sweden – launched a statement to support a stronger role of private capital in meeting the challenges of climate change.
The heads of a number of Nordic pension funds supported the statement that calls for clearer investment frameworks, better handling of risks and a more transparent development of “bankable” projects.
- We need private investment to halt global warming and the involvement of the private sector is crucial, says Danish Ministers of Foreign Affairs Kristian Jensen.
Denmark, that also holds the presidency of the Nordic Council of Ministers, stands behind the initiative and plans to build on its already existing Climate Investment Fund.
- But private investment is not charity and investors clearly need to make a profit. The potential is there, but the number of risk factors and lack of transparency may hold investors back. We as governments can make a difference by creating more clarity and lowering risks, added Jensen.
The Nordic governments wow to continue to work together for a long term improvement of investment conditions. Through general development assistance and targeted climate change funding they will promote capacity building and support partner countries effort to develop predictable policies and regulations.But private investment is not charity and investors clearly need to make a profit. The potential is there, but the number of risk factors and lack of transparency may hold investors back. We as governments can make a difference by creating more clarity and lowering risks
The five governments state that:
“We, the Nordic government representatives, export credit agencies, development finance institutions and institutional investors that are signatories to this statement, commit to collaborate for the mobilization of financial resources from the public and private sector targeted at commercially viable climate investments in sustainable and resilient infrastructure and technology in developing countries.
Furthermore, we commit to collaborate on further developing and deploying financial instruments and financing structures that can scale up such investments. The focus will be on using public climate finance to promote market-based solutions to the challenges of climate change as well as building the knowledge and confidence of private investors in order to leverage private sector investments in climate projects.”