Transitions bas carbone : le rôle des institutions financières internationales, des banques centrales et des politiques monétaires

A growing number of central banks and financial regulators are integrating sustainability factors into their policies and practices. Given the tight budgetary constraints on governments across the world, public spending alone will not be sufficient to provide the amount of investment needed to deliver a green economy, including meeting the 2-degree emissions reduction target. In China, for example, public finance can only provide 10-15% of the estimated annual investment requirements up to 2020. As a result, there is a need to a) cut down the risks level on low carbon investments, b) shift private financial flows from “grey” sectors to “green” sectors c) leverage new sources of financing including the savings currently not directed to production and infrastructures.

High enough and credible carbon prices will be essential to do so. But, they will not suffice to alleviate the financial constraints that inhibit investment decision. These constraints result from the intrinsic risks of low carbon investments in capital intensive equipment and infrastructure in a shareholder business regime: uncertainty concerning the upfront costs, the final markets, the prices of fossil fuels and the regulatory context of infrastructure sectors. Central bank policies can contribute to closing this gap – such as through Bangladesh’s green refinancing program which lowers the cost of capital for banks financing renewables and energy efficiency projects.

Scaling up sufficient green finance can be achieved in the current economic context only if the low-carbon transition is perceived by mainstream (‘climate agnostic’) policy-makers as a contribution to delivering their mandate of growth, employment and stability. A redirection of savings towards low carbon infrastructure would reduce energy insecurity and support a more 'inclusive' growth; it requires the design of tools able to bridge long-term and short-term cash balances, to reduce investment risks of low-carbon projects to promote long-term productive investments vis-à-vis liquid assets and to diversify reserve currencies through the carbon assets.

The side-event will convene experts to organize an open discussion between experts and practitioners about the implications of the involvement of central banks and institutions of the international financial governance in the low-carbon transition.

DRAFT AGENDA

8:30 am - Arrival and welcome coffee

9:00 am - Introduction

Introductory Remarks
Jean Pisani-Ferry, Commissioner General for policy planning, France Stratégie

What do we know about climate finance?
Nick Robins, Director, UNEP Inquiry

Financing the low-carbon transition in an adverse context
Jean-Charles Hourcade, CIRED, France

9:30 am - First roundtable : Lowering the investment risks on low-carbon projects and mobilising savings: the interest of valuing long term assets

Moderator: Nick Robins, UNEP Inquiry
Rapporteur: Jorge Nunez, CEPS, Belgium

Introductory keynotes

• Dipak Dasgupta, Alternative board member of GCF, India
• Marianne Fay, Chief Economist, Climate Change Group, World Bank

Roundtable

• Kornelis Blok, Delft University of Technology, Ecofys, Holland
• Chris Hope, University of Cambridge
• Nick Mabey, E3G, UK
• Billy Pizer, Duke University, US
• Dr. Asbjorn Torvanger, CICERO, Center for International Climate and Environmental Research, Oslo
• Takako Wakiyama, IGES, Japan

Discussion

11:00 am - Valuing carbon assets and the engineering challenges of a reformed financial intermediation

Moderator: Pierre Ducret, CEO, CDC Climat, France
Rapporteur: Étienne Espagne, CEPII, France

Introductory keynotes

• Mahmoud Allah Malik Kazemi, Deputy Governor, Bangladesh Bank

Roundtable

• Carlo Carraro, University of Venice
• Dr. Armin Haas, IASS, Germany
• Pierre Monnin, CEP, Switzerland
• Baptiste Perrissin Fabert, MEDDE, France
• Frédéric Samama, Deputy Global Head of Institutional & Sovereign Clients, Amundi

Discussion

12:20 am - “New macroeconomic normal” after COP21

Moderator: Jean-Charles Hourcade, CIRED, France

Roundtable

• Jean Pisani-Ferry, Commissioner General for policy planning, France Stratégie
• Teresa Ribera, former Spanish Climate Change State Secretary, Director of IDDRI, France
• Alfredo Sirkis, Executive Director of the Center Brazil Climate (CBC) think tank and former Chairman of the Joint Climate Change Commission of the Brazilian Congess

Official launching of the France Stratégie/CEPII debate platform

“Financing the low-carbon transitions”

Explanatory words: Nicolas Lorach and Étienne Espagne, France Stratégie/CEPII, France

1:00 pm - Snacks and drinks

Location

France Stratégie
18, rue de Martignac
75007 Paris

Contact : Nicolas Lorach, département Économie-Finances, nicolas.lorach@strategie.gouv.fr