Two connected COP23 SIDE EVENTS on climate-finance risk and impact
Concept and Agenda
Mon Nov. 13th, EU Pavillion 18 :30- 20:00
Wed Nov. 15, German Pavillion 10 :30- 12 :00
Aims and scope. UZH, WU and IDB co-organize two side events (the first one also in collaboration with Climate KIC) to provide actionable information on the current progress driven by development organizations and professionals of sustainable finance, as well as the contribution of academic research in addressing the major challenges ahead to achieve the Paris Agreement. Our two side events contribute to the broader conversation about the opportunities for climate-finance in climate change adaptation and mitigation.
EU Pavillion Nov. 13th
How new climate risk and impact metrics can empower development finance institutions.
University of Zurich (UZH), Vienna University of Economics and Business (WU), Inter-American Development Bank (IDB), Climate-KIC.
Moderator: Stefano Battiston (UZH)
Panelists: Amal-Lee Amin(IDB), Rodolphe Bocquet (Beyond Ratings), Gael Giraud (AFD), John Firth (Acclimatise), Irene Monasterolo (WU and BU), Monica Scatasta (EIB), Claire Souch (OASIS and Insurance Develop. Forum)
18:30-18:35 Welcome by the moderator and brief remarks about methods to capture climate risk and impact as relevant dimensions for climate finance decision-making.
18:35-19:05. First round: climate risk and impact assessment; strategic mapping within development institutions.
19:05-19:35. Second round: identifying the stakeholders in cooperation (funders, clients, agencies and academia); strengthening climate-finance network
19:35-19:45. Third round of interventions: Q&A from the audience.
German Pavillion Side Event, Nov. 15th.
Embedding new climate risk and impact metrics throughout the project pipeline of development financial institutions.
Organizers: University of Zurich (UZH), Vienna University of Economics and Business (WU), Inter-American Development Bank (IDB)
Moderator: Irene Monasterolo (WU and BU)
Panelists: Stefano Battiston (UZH), Luigi Carafa (Climate Infrastructure Partnership), Etienne Espagne (Agence Francaise Developpement).
10:30-10:35 . Welcome and brief introduction by the moderator, Irene Monasterolo
Implementation at project level with joint efforts across all relevant department and scientific support from academia
10.35-10.40. Brief presentation of the panelists and their role in climate-finance
10:40-11:00. First round of interventions: requirements for project level climate-finance assessment and current development
11:00-11:20. Second round of interventions: infrastructure needed for collaboration between the academia and the institutions
11:20-11:30. Third round of interventions: Q&A from the audience.
Background and policy context.
There is a growing support among scholars and practitioners to the view that mitigating and adapting to climate change could represent an opportunity for green growth, both at the macroeconomic and microeconomic level. In either context, a stable long-term framework of economic and environmental policies is regarded as key to make risk-return profiles of investments sufficiently predictable to trigger private actors, and to scale up the impact of climate-finance projects. In addition, sustained consumers’ demand for green projects is also recognized as an important factor.
Development banks and national promotional banks play a crucial role in climate-finance. In particular, their expertise and credibility in designing, implementing and monitoring projects, together with the financial structure of private-public partnerships, enables them to catalyze and scale up investments by leveraging on the private sector. In this regard, academic research aimed at developing robust and targeted methods is key to enable development and national promotional banks to fulfil their role in climate-finance.
Two connected dimensions deserve attention. On the one hand, there is need for methods to measure progress towards climate action (e.g. the Sustainable Development Goals) at the level of project portfolios in order provide actionable information. Progress needs to be measured both in terms of risk and impact. Regarding risk, it is crucial to integrate climate physical and transition risk factors in current financial risk metrics. Regarding impact, we need to assess the contribution of projects’ portfolios to climate action.
On the other hand, there is the need for appropriate governance processes (within and across organizations) that allow decision makers to (i) process the information from projects’ climate risk and impact assessment, and (ii) timely react upon it at various levels of the lending chain.
The SIMPOL Project is currently funded by the H2020 European grant DOLFINS (no. 640772) in the Global Systems Science area of the Future Emerging Technologies program.