(P8) Governing Climate Finance in the Low Carbon Transition
Neil Gunningham, Professor, School of Regulation and Global Governance, Australian National University
If dangerous climate change is to be avoided, an unprecedented injection of finance will be necessary to bring about a deep decarbonisation of the world economy. Only the private sector has the capacity to supply finance for climate action (‘climate finance’) on the scale needed, albeit that governments and international development agencies must also play important roles. But currently, there a chasm between ambition and outcomes when it comes to financing the low-carbon transition. How can financial flows best be channelled towards low-carbon activities and businesses? What are the enabling conditions for low-carbon foreign direct investment to scale? How is climate finance currently governed and what ‘governance arrangements’ could best stimulate private sector climate investment?