ESG It describes both the fund and the direction of travel – private capital will likely dwarf public investment in clean energy and other projects in the coming decades .
At the Capital for Climate Conference , one of the fireside chats was titled ‘ Private Capital ’ s pivotal place in the climate transition ’. A statement , not a question , you will notice .
The description was equally unequivocal , saying : “ Investors are increasingly making the hefty investments needed to decarbonise emissions-intensive industries and spur development of cleanenergy technologies through investments in private equity , infrastructure , private credit and venture capital .”
Green bonds One popular financing model is green bonds – a type of debt issued by public or private institutions to finance themselves and , unlike other credit instruments , they commit the use of the funds obtained to an environmental project or one related to climate change .
Speaking at the conference , David Oelker , Head of ESG Investment EMEA , BlackRock , said the green bonds market is worth US $ 3tn , adding that a key advantage is their transparency .
He said : “ It ’ s so valuable as investors because you get insight reports on an annual basis .”
76 August 2024