The flow of reports and comments in the run-up to both Copenhagen and the final recommendations of the Walker Review continues this week.
“Catalysing low-carbon growth in developing economies: Public Finance Mechanisms to scale up private sector investments in climate solutions” is the latest on “capital” for the low carbon economy. It was launched today by UNEP in partnership with an impressive range of pension, investment and insurance organisations.
Meanwhile, on effective shareholder ownership and “control”, I was struck by this piece “not more regulation, more Responsibility” from Colin Melvin of Hermes in Sunday’s Independent.
Showing posts with label Low carbon economy. Show all posts
Showing posts with label Low carbon economy. Show all posts
Monday, October 26, 2009
Monday, October 19, 2009
Archbishop highlights a shared cultural crisis
Creating a more responsible finance sector requires rebuilding its connection to the wider world and rediscovering a sense of both responsibility for the future of the natural world and joy in making a positive contribution. Or at least that was my conclusion after reading a powerful speech by the Archbishop of Canterbury on climate change delivered last week.
The Archbishop talks about a shared cultural crisis that “could be summed up rather dramatically by saying that it’s a loss of a sense of what life is … a web of interactions, mutual givings and receivings”. He talks about “our calling to nourish” life and secure “a future for all living things”.
He says “a good deal of the talk and activity around the financial collapse has the marks of .. ‘displacement activity’ – precisely because it fails to see where the roots of the problem lie; in our amnesia about the human calling” and “whatever we do to combat the nightmare possibilities of wholesale environmental catastrophe has to be grounded not primarily in the scramble for survival but in the hope of human happiness”.
Even if – like me - you don’t share his religious lens, the speech contains valuable and inspiring insights. Many thanks to UKSIF Vice Chair Helen Wildsmith for pointing me to it.
The Archbishop talks about a shared cultural crisis that “could be summed up rather dramatically by saying that it’s a loss of a sense of what life is … a web of interactions, mutual givings and receivings”. He talks about “our calling to nourish” life and secure “a future for all living things”.
He says “a good deal of the talk and activity around the financial collapse has the marks of .. ‘displacement activity’ – precisely because it fails to see where the roots of the problem lie; in our amnesia about the human calling” and “whatever we do to combat the nightmare possibilities of wholesale environmental catastrophe has to be grounded not primarily in the scramble for survival but in the hope of human happiness”.
Even if – like me - you don’t share his religious lens, the speech contains valuable and inspiring insights. Many thanks to UKSIF Vice Chair Helen Wildsmith for pointing me to it.
Thursday, October 15, 2009
Green Bonds and a UK Green Investment Bank: New public policy resource
Green Alliance has just launched a useful new section of its website called Green Finance UK. This aims to cover the developing public policy debates on Green Bonds and a UK Green Investment Bank. Worth checking out!
Thursday, July 16, 2009
From Crisis to Recovery: Reshaping Capital Markets
I have contributed a chapter on sustainable capital markets to a new Green Alliance pamphlet “From crisis to recovery: New economic policies for a low carbon future".
In it, I describe our policy recommendations to tackle the underlying issues that drive today’s dysfunctional investment approaches. We think this needs not just better regulation but also improvements to leadership, cultural norms and external scrutiny.
Specific proposals include:
In it, I describe our policy recommendations to tackle the underlying issues that drive today’s dysfunctional investment approaches. We think this needs not just better regulation but also improvements to leadership, cultural norms and external scrutiny.
Specific proposals include:
- Pension funds and other major investment owners should be required to report on how they implement their sustainable investment policies
- Publicly owned investment holders should be required to be responsible owners and report annually on their progress
- Greater transparency should be demanded of both companies and institutional investors
- The objectives of financial regulators should enable them to take greater account of the wider public interest, including sustainable development.
It would be great to have your comments on these suggestions and the rest of the chapter.
"Investing in a Sustainable Recovery" Initiative
Details about the “Investing in a Sustainable Recovery” initiative are now available on the UKSIF web site.
There is a short description and notes from its first two roundtables. The third roundtable in May focused on “green bonds” and discussed a paper on “climate bonds” by Sean Kidney and colleagues.
The Initiative is convened by Tomorrow’s Company, UKSIF and the HSBC Climate Change Centre of Excellence, and supported by The London Accord and Network for Sustainable Financial Markets. Participation is by invitation only to institutional investors in fixed income and other asset classes, and relevant policy influencers.
There is a short description and notes from its first two roundtables. The third roundtable in May focused on “green bonds” and discussed a paper on “climate bonds” by Sean Kidney and colleagues.
The Initiative is convened by Tomorrow’s Company, UKSIF and the HSBC Climate Change Centre of Excellence, and supported by The London Accord and Network for Sustainable Financial Markets. Participation is by invitation only to institutional investors in fixed income and other asset classes, and relevant policy influencers.
Wednesday, April 22, 2009
A historic but limited contribution
Today’s UK Budget Day was a historic occasion as the Chancellor announced the first ever carbon budget figures. It was even held on Earth Day. And it is good news that the HM Treasury budget web site includes a section on “building a low carbon recovery”.
Green Alliance was cautiously optimistic, calling it “Only a small step for mankind, but a big leap for HM Treasury” but the BBC asked “Green tinge or blue rinse?”.
BWEA seemed happiest, particularly due to the announcement of a deal offering up to £4 billion of European Investment Bank funding for renewables. The Renewable Energy Association offered a more restrained welcome highlighting that the proportion of stimulus funding allocated to green investment remained below the 20% recommended by Lord Stern on the information available.
The general reaction? Still a long way to go. And personally, however hard I try, I still feel under-whelmed by the announcements compared with the scale of the challenge.
Green Alliance was cautiously optimistic, calling it “Only a small step for mankind, but a big leap for HM Treasury” but the BBC asked “Green tinge or blue rinse?”.
BWEA seemed happiest, particularly due to the announcement of a deal offering up to £4 billion of European Investment Bank funding for renewables. The Renewable Energy Association offered a more restrained welcome highlighting that the proportion of stimulus funding allocated to green investment remained below the 20% recommended by Lord Stern on the information available.
The general reaction? Still a long way to go. And personally, however hard I try, I still feel under-whelmed by the announcements compared with the scale of the challenge.
Friday, April 3, 2009
Did the London Summit do enough to deliver a sustainable recovery?
NGO responses vary. Oxfam's Duncan Green is “unusually optimistic” but Friends of the Earth are not. The ‘Put People First’ coalition reflects that mix of views.
Personally, I homed in on paragraphs 21 and 27 of the G20 communiqué.
First, Paragraph 27. It reads “We agreed to make the best possible use of investment funded by fiscal stimulus programmes towards the goal of building a resilient, sustainable, and green recovery. We will make the transition towards clean, innovative, resource efficient, low carbon technologies and infrastructure. We encourage the MDBs to contribute fully to the achievement of this objective. We will identify and work together on further measures to build sustainable economies.”.
While short on specifics, this sets a collective goal against which the G20 can be judged when it meets again later in the year. It gives a good basis for investors to engage further with governments and development banks in the coming weeks.
Paragraph 21 is more intriguing. It says “..we agreed on the desirability of a new global consensus on the key values and principles that will promote sustainable economic activity. We support discussion on such a charter for sustainable economic activity with a view to further discussion at our next meeting. We take note of the work started in other fora in this regard and look forward to further discussion of this charter for sustainable economic activity.”
Could this be the start of a genuine debate?
Is it the first step of a global transition from GDP towards new measures of prosperity? And towards the new approach to incentives, rules and policies that would follow this shift?
So, overall, I would say – “the jury’s still out”. The direction of travel is positive, but there is still much to do. Policy makers need to deliver not just an effective global banking system but also a major economic transition, including sustainable capital markets for long-term responsible investment. The G20 has only started the process of delivering a sustainable recovery and, by their next summit later in the year, further major milestones need to have been reached.
Personally, I homed in on paragraphs 21 and 27 of the G20 communiqué.
First, Paragraph 27. It reads “We agreed to make the best possible use of investment funded by fiscal stimulus programmes towards the goal of building a resilient, sustainable, and green recovery. We will make the transition towards clean, innovative, resource efficient, low carbon technologies and infrastructure. We encourage the MDBs to contribute fully to the achievement of this objective. We will identify and work together on further measures to build sustainable economies.”.
While short on specifics, this sets a collective goal against which the G20 can be judged when it meets again later in the year. It gives a good basis for investors to engage further with governments and development banks in the coming weeks.
Paragraph 21 is more intriguing. It says “..we agreed on the desirability of a new global consensus on the key values and principles that will promote sustainable economic activity. We support discussion on such a charter for sustainable economic activity with a view to further discussion at our next meeting. We take note of the work started in other fora in this regard and look forward to further discussion of this charter for sustainable economic activity.”
Could this be the start of a genuine debate?
Is it the first step of a global transition from GDP towards new measures of prosperity? And towards the new approach to incentives, rules and policies that would follow this shift?
So, overall, I would say – “the jury’s still out”. The direction of travel is positive, but there is still much to do. Policy makers need to deliver not just an effective global banking system but also a major economic transition, including sustainable capital markets for long-term responsible investment. The G20 has only started the process of delivering a sustainable recovery and, by their next summit later in the year, further major milestones need to have been reached.
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