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Call to Scale Up Climate Finance after Paris Summit – 3 Point Plan to Convert INDC Goals into Climate Investment Pipeline

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A worldwide group of global climate finance organisations has issued a call for coordinated action to scale up climate investment ‘infrastructure’ and financial flows following the COP21 Paris Conference in early December.

Reflecting the growing debate around conversion of national INDC commitments into targeted investment, the group has put forward a three point framework of measures to encourage long term capital allocation from financial markets alongside public finance.

The plan seeks to leverage the national priorities and accompanying data contained with each INDC to help build investment pipelines that have a climate policy rationale, regulatory support and the underlying features and transparency required for markets and finance providers to make multi-billion, long-term investment decisions.

The call is for three core actions:

Establishing detailed “Climate Investment Plans” (CIPs) at a country level, based on the country’s intended INDC actions as submitted pre-Paris. These CIPs will set out “investment ready” commercial projects alongside proposals for concessional financing.

Backing these CIPs – and all other climate finance initiatives – with improved information, including through the creation of standard data on climate projects and finance.

Establishing a global network for climate investment, housing essential climate finance infrastructure and bringing together major participants including market research, policy makers and intermediaries as well as institutional investors, in active partnerships to facilitate transaction flows.

The 3 Point Plan has attracted support from Rachel Kyte, former World Bank Group Vice President and Special Envoy for Climate Change:

“The UN has calculated that the INDCs put us on track for 2.7 degrees warming – better than where we were headed but still perilously high. However, to turn them from words to low carbon growth, jobs and opportunity, we have to mobilize the finance needs laid out and put in place the sensible macroeconomic and fiscal policy packages that support this new trajectory.”

“Alongside those, we need to create infrastructure for the climate finance sector itself to work effectively. I therefore commend this initiative as the means for finance practitioners to make progress in promoting deal flows at both global and country levels.”

Tracy Cai, Co-founder and CEO of SynTao Green Finance:  “None of the actions we are calling for are new as such. They all build on work that is already being done. But together they create a platform for people to work together at scale, on the basis of better data, more visibility of investment pipelines, and better planning and dialogue.  They are vital infrastructure that needs to be plugged in for the funds to flow.”

Nick Mabey, Chief Executive and a founder director of E3G cited the significant gaps in data and a lack of understanding of the investment priorities which would meet each country’s INDC plans:

““There’s a lot of work needed,” he said, “but the country INDC submissions are a massive step forward. The data they provide is a compass pointing the way to climate mitigation and adaptation solutions. We can now map out a “bottom up” pipeline of projects.  With both compass and map we know where money is needed to determine the most appropriate forms of financing.”

Assaad Razzouk, CEO Sindicatum Sustainable Resources, a Singaporean clean energy company noted how demonstrating success in financing would increase ambition:

“Climate Investment Plans are a vital window to the world for finance at country level, and a vital tool for increasing ambition on mitigation targets over time.  A Paris climate agreement, no matter how tentative, will involve more than 160 countries publishing ‘low-carbon business plans’ for their economies, describing what each will do to help limit global warming.

“The plans, based on the INDCs, are the driving force of COP21 and represent both a development pathway and a multi-trillion-dollar investment opportunity for the private sector if they are clearly delineated.  If it can be shown, through transactions getting done, that public and private sources of finance can be mobilised at scale for the implementation of these plans, we will get confidence that much more can be achieved than a Paris agreement, on its own, will probably yield.”

Speaking about the call for a climate investment network, Farhana Yamin, CEO and Founder of Track:“Establishing a climate investment network would create a real catalyst to effective deal flow.  Far beyond just a “talking shop”, its sole objective would be to scale up the flow of transaction opportunities – whether these be concessional or commercial.

“Looking across at the “impact investing” world, we can see a possible model in the Global Impact Investing Network, which was only established 6 years ago but already has over 200 members – and they’re not just investors, but all kinds of stakeholders getting things moving forward.”

James Cameron, Chairman, Overseas Development Institute: The initiatives in the Call to Action create coherence in climate financing.  They complement and go beyond many past approaches, in that they focus 100% on promoting transaction flows.  And flows right across the spectrum, from grants to purely commercial transactions.

Amal-Lee Amin, Chief of the Climate Change and Sustainability Division, IDB: “The Inter-American Development Bank (IDB) welcomes this Call to Action and its focus on mobilizing public and private sources of finance for implementation of countries’ INDCs. The Bank has worked closely with many LAC Governments in the design and development of the national climate strategies and plans that underpin these INDCs. Coming out of Paris it is essential that these commitments are translated into investment plans and we look forward to collaborating with others to mobilise the scale and scope of finance that will be required.”

Virginie Pelletier, Head of Sustainable Investment and Finance, BNP Paribas CIB: “Defining Climate Investment Plans of countries will greatly assist in focusing the international and domestic capital markets on practical investment needs and opportunities associated with financing the economic transition to a low carbon economy, and thus to further sustainable economic development in the coming years.”

Energy

Responsible Energy Investments Could Solve Retirement Funding Crisis

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Energy Investments
Shutterstock / By Sergey Nivens | https://www.shutterstock.com/g/nivens

Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.

Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long will my retirement savings last?”

Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.

Tip #1: Focus & Determination

Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.

Tip #2: Minimize Spending

One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!

Tip #3: Visualize Your Goal

You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.

Investing in Clean Energy

One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.

With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.

The Future of Green Biz

As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.

Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.

In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!

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How to make a sustainable living out of Forex Trading?

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sustainable forex trading
Shutterstock Licensed Photo - By Robert Kneschke | https://www.shutterstock.com/g/robertkneschke

There are two different types of forex trading in general: the profitable one and the not so profitable one. Everyone wants good profits at the end of the day, but unfortunately a good number of traders are burdened with the huge losses at the end of their forex careers. Many newbies run the other way around when they hear about forex trading due to heavy losses in their initial period. Of course, you would have heard about all those success stories, in your friends’ circle or on the internet. However, if you are looking forward to replicate those success stories, you need get yourself ready before that.

In this article, we will discuss the six essential skills that are needed to earn some profits from trading foreign currencies and make a sustainable living out of it.

1. Limit your risk ceiling

When you start with forex, you should try to define limits. Try to create a balanced scorecard that defines your personality with regards to various parameters such as your strengths, weaknesses, behaviors, and ability to take risks. It is essential that you list your financial goals before you start with forex trading.

2. Learn about leverage ratio and account type

When you start, brokers will suggest different forex trading accounts that might take you for a whirl if you aren’t prepared. Each forex trading account has its own pros and cons. It is essential that you engage with your broker to create a mini trading account so that you will be able to warm up on your forex trading skills in a low risk environment.

3. Start small

While starting out, some investors rush to have multiple currency pairs without doing proper research on them beforehand. It is very important have you understand the nature and volatility of a currency before you start trading a pair. Every single foreign currency is like a market onto itself. It is therefore important that you take the time to study about the country before forming pairs to understand the volatility of the currency. By using forex trading platforms such as ETX Capital, you can take informed decisions easily.

4. Learn to control emotions

A forex trader should never take any decisions on the spur of the moment based on emotions and should be as rational as he can. Controlling your impulses is the key to becoming a great forex trader.

5. Automate your processes

I am not suggesting you to rely completely on forex robots and trade copiers, but make use of the latest automation tech to execute transactions faster than ever before. Make use of automation features such as stop loss, price options etc. to make the most out of the exciting opportunities.

6. Keep it simple.

Not everyone can be a genius economist, mathematician and a trader, bundled into one. Forex trading is not a complex subject, you only need to arm yourself with positive thinking, and set yourself clear and realistic goals.

Conclusion

I hope this article was useful for you to learn about the key reasons why online forex trading is a good investment and how you can earn money through it. If you have any doubts with regards to this, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.

Though it’s a reliable source of income, you will have to educate yourself properly before you start investing. It is important that you take the time to understand why things are the way they are before you jump all in and start making your first big bucks. All the best for your future ventures and keep coming for more interesting and useful articles.

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