11:00 to 12:00 CET : Leveraging Finance, Capital, and Policies for Climate Action in Emerging Markets: The role of banks, in partnership with OMFIF

October 21, 2021

Introduction

As the world shifts to greener, more sustainable economic systems and infrastructures, it is crucial that emerging market financial sectors transition to sustainable finance practices, supported by developed economies. In collaboration with the United Nations Conference on Trade and Development’s World Investment Forum, the Official Monetary and Financial Institutions Forum (OMFIF) convened a panel discussion on how emerging markets can leverage finance and develop policies to drive climate action while continuing to grow their economies.

This session gathered central banks, investors, regulators and experts from around the world to discuss their role in emerging markets leveraging finance, capital and developing policies for climate action. Key points of discussion will include the risks of transition, infrastructure developments, scaling capital and asset allocation, as well as the latest developments in sustainable bonds and loans.

Session Highlights

The Panellists while noting the effect of COVID-19 on economies emphasised on the need of public and international private investment in recovery. They opined that the role played by multilateral institutions has been reinforced by the pandemic and their expertise is likely to come handy when it comes to innovating new ways to strengthen the economy and reinvigorate instruments in the financial toolbox.

Recognising the momentum of the emergence of sustainable finance, Panellists referred to the tremendous growth witnessed in the green bond market to understand the opportunities for more investment. While deliberating on the same, the differential between emerging and developed nations was identified. The Panellists discussed that incorporating sustainable finance is not merely the responsibility of developed nations but of emerging and developing countries as well.

A great need was felt to work in collaboration in educating and developing standardised taxonomies. The Panellists resonated with the view that different taxonomies and standards ultimately are detrimental to investment as the transaction costs increased considerably and different terminologies complicate the process for investors. Scaling up sustainable markets in a way that brings in more diversification and innovation was discussed.

While commenting on the way forward, the Panellists focused on the following:

  • Global collaboration,
  • Information sharing among nations,
  • More robust credit rating agencies,
  • Increased action and commitment towards achieving NDCs, and
  • Eliminate chances of stranded nations, governments and people.

Opening

Ms. Danae Kyriakopoulou, Senior Policy Fellow, Grantham Research Institute on Climate Change and the Environment, London School of Economics         

One the panel were:

  • Rodrigo Cubero Brealey, President, Central Bank of Costa Rica
  • Leslie Maasdorp, Vice President, New Development Bank
  • Sheila M’Mbijjewe, Deputy Governor, Central Bank of Kenya
  • Marcus Pratsch, Head of Sustainable Bonds and Finance, DZ Bank AG

Moderator

  • Danae Kyriakopoulou, Senior Policy Fellow, Grantham Research Institute on Climate Change and the Environment, London School of Economics