OSW Supply Chain’s Post

Guarantees demonstrably catalyse private capital mobilisation in emerging markets projects. So why do MDBs use them so sparingly? The problem is institutional incompatibility. In this feature, Clara Oliver-Amorim discusses the limited role of development guarantees in blended finance, despite their historical use and recent reforms by The World Bank Group to simplify and improve access. Challenges like complexity and limited risk coverage are highlighted, along with the success of entities like MIGA and new initiatives aimed at improving guarantee effectiveness for climate projects and local currency financing. Read the full feature here: https://lnkd.in/di5H6pKH #Proximo #DevelopmentFinance #BlendedFinance #ClimateFinance #SustainableFinance

Funding availability for independent oil producers in key OECD markets such as North America and Europe could face intensified pressures after 2030, with increasingly restrictive financed emission targets due to lender policies, regulatory policies and net-zero alliance memberships.

Don't miss your chance to gain insights into funding opportunities, risk management, and the economic impacts of transitioning to sustainable energy systems while earning CLE credits! Below is just one of the many sessions you will see at our one-day US Chapter Conference happening next week.    Our expert panelists will delve into the complexities of tax equity financing, project and portfolio debt financing, and the transferability of tax credits. New energy technologies currently require incentivized economics to launch, but what are the advantages and limitations these solutions present? Hear from Matt Kittell, Renato Mourão レナート・モウラオ, Matt Shanahan, Brandon Dalling (moderator), as they analyze the "carrot and stick" approach used in the EU, the IRA in the US and the evolving regulatory market in the Asia Pacifica region. We look forward to seeing everyone on November 19! Full details and online registration are available by clicking the link below. Act fast, online registration closes next Monday. https://lnkd.in/g9kemjJ2 #energy #energyindustry #NewYork #financing

Learn how ASX derivatives and financial markets are supporting the energy transition and decarbonisation. As the climate crisis escalates, the world is looking for scalable solutions to accelerate the roll-out of renewable energy technologies and broader decarbonisation plans. While financial derivatives might not immediately spring to mind as having a useful role to play, they can make the transition cheaper and faster, by helping those involved to manage economic uncertainty and risk and incentivise scaled investment. Read more. https://lnkd.in/gdSV3qT9 #EnvironmentalFutures #FuturesMarket #CarbonTrading

We've reached the end of our series on Understanding Emissions with the final category 15 - Financed emissions. The finance industry has a very real responsibility to reduce emissions of the world and the GHG Protocol has a way of calculating it. We take a look at the world of calculating investment emissions. Check out the post here: https://lnkd.in/gPeWcFEK #GHGEmissions #GHGProtocol #FinancedEmissions #InvestmentEmissions #ImpactTrace

Climate pressure is mounting on some banks to reduce or stop funding of oil and gas companies in Southeast Asia and Oceania. While the financial taps are far from closed, with US and Asian banks still keen to provide funding for the industry, a pullback by influential European banks could have significant ramifications, particularly for national oil companies and independents in the region that typically rely more on outside capital than international oil companies. Learn more >> https://bit.ly/43kpe1b #oilandgas #çorporatestrategy #capex #energyfinance #debtmarkets #equitymarkets #esg

Danske Bank will as one of the first larger banks in the world drastically reduce investments in oil and gas companies.   The decision was taken after critique of Danske Bank and their investments in oil and gas companies that were expanding their production of fossil fuels.   The new position is an example of financial institutions taking a greater role in the green transition and setting requirements to investees. A change that is critical to close the current finance gap to mitigate the climate crisis estimated to USD 8.4 trillion per year between 2023 and 2030 and rising to USD 10.4 trillion per year in the following decades. The full implementation of the position should be followed closely. For more information on the position: https://lnkd.in/dMzAf3ha For information on how to measure climate impact and start reducing as a financial institution please reach out. #sustainablefinance #financegap #climatemitigation

𝐋𝐚𝐭𝐞𝐬𝐭 𝐔𝐩𝐝𝐚𝐭𝐞𝐬 𝐢𝐧 𝐄𝐒𝐆 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬: ✅𝐂𝐚𝐧𝐚𝐝𝐚 𝐒𝐞𝐭𝐬 𝐀𝐦𝐛𝐢𝐭𝐢𝐨𝐮𝐬 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐆𝐨𝐚𝐥𝐬: Canada has committed to reducing greenhouse gas emissions by 45-50% by 2035.  ✅𝐈𝐧𝐯𝐞𝐬𝐜𝐨 𝐋𝐚𝐮𝐧𝐜𝐡𝐞𝐬 𝐑𝐞𝐜𝐨𝐫𝐝-𝐁𝐫𝐞𝐚𝐤𝐢𝐧𝐠 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐄𝐓𝐅: The new ETF attracted a massive $2.4 billion in investments.  ✅𝐀𝐄𝐂𝐎𝐌 𝐄𝐱𝐩𝐚𝐧𝐝𝐬 𝐢𝐧𝐭𝐨 𝐄𝐧𝐞𝐫𝐠𝐲 𝐓𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧: The company has launched a new team focused on infrastructure for the energy transition.  ✅𝐒𝐰𝐢𝐭𝐳𝐞𝐫𝐥𝐚𝐧𝐝 𝐓𝐢𝐠𝐡𝐭𝐞𝐧𝐬 𝐄𝐒𝐆 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐑𝐮𝐥𝐞𝐬: Companies will be required to disclose 2050-aligned net-zero roadmaps.  ✅𝐆𝐨𝐥𝐝𝐦𝐚𝐧 𝐒𝐚𝐜𝐡𝐬 𝐄𝐱𝐢𝐭𝐬 𝐍𝐞𝐭 𝐙𝐞𝐫𝐨 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐀𝐥𝐥𝐢𝐚𝐧𝐜𝐞: The bank has withdrawn from the alliance amid growing scrutiny. 𝐕𝐢𝐬𝐢𝐭 𝐎𝐮𝐫 𝐖𝐞𝐛𝐬𝐢𝐭𝐞 𝐅𝐨𝐫 𝐌𝐨𝐫𝐞 𝐈𝐧𝐟𝐨:- https://lnkd.in/gi-N9Yes

Today, June 14, 2024, the most important investment news includes: ECB Interest Rate Cut: The European Central Bank will lower interest rates but maintain restrictive monetary policy until 2025 😵 Growth in Investment Funds: Funds are helping protect savings against inflation in Europe and Latin America 😍 Investments in Renewable Energy: Significant increase in solar and wind energy investments due to the demand for clean energy 🌍 (China 💪) Dutch stock market index (NL25) has experienced a significant increase of 18.42% since the beginning of 2024, reflecting a positive investment climate in the country (in my personal portfolio since november 2023 😜)

Wonderful paper from Massachusetts Institute of Technology that talks about how to increase clean energy financing. Their five suggestions: ⏺ Incorporate callable capital into The World Bank's capital adequacy framework. ⏺ Issue a special series of Special Drawing Rights (SDR) bonds. ⏺ The U.S. and others should make ambitious pledges of capital ⏺ The U.S. and the Green Climate Fund (GCF) should create “challenge funds” that competitively allocate capital to MDBs based on their climate ambition, ability to scale that climate finance quickly, and private capital mobilization. ⏺ The World Bank should establish a Dedicated Clean Energy Window to prioritize, price, and properly direct needed resources to clean energy financing.  Good to recommend ways to find more money, which goes to the "BIGGER" part of World Bank reform. BUT, if we want to move the needle on clean energy finance, we must do business differently. That's the "BETTER" and "BOLDER" parts of the reform. And it's not just the Bank, it's the development finance institutions. I've written on this topic such as this blog I released before COP about how "If there isn't more money at COP, we need to spend money differently." https://lnkd.in/gVNS76yV Extra money doesn't do anyone any good if the MDBs and DFIs aren't: 🔆 Putting more staff on the ground to find and source deals 🔆 Providing governments with more staff and experts to help them get deals done 🔆 Taking on local currency risk so that clean energy deals are priced in a way to keep the cost of electricity down over 20 years 🔆 Supporting the construction of transmission and grid infrastructure to support new power generation 🔆 Supporting "negotiated deals" that are not perfect, but that are good enough. The Bank's been working on a solar tender in Liberia for a decade. Help countries get their first 10 MW renewable deal across the finish line and stop making perfect the enemy of the good. 🔆 Focusing on results instead of returns. The job of MDBs and DFIs is to produce development results, not returns (shocker!). That could mean a low or even slightly negative return, rather than produce big numbers (create incentives for staff to work on tough deals!). 🔆 Taking on technology risk! If public institutions aren't the first movers on new technologies, who will be? I love that they supported solar auctions in Chile a decade ago and lost some money. Who cares? They created a global solar tender market that drove down prices globally. 🔆 Making the Green Climate Fund more accessable to low income countries and Small Island Developing States. Just a few thoughts for now. If we focus on the "BETTER" and "BOLDER," I promise you that shareholders will gladly come up with money for the "BIGGER." Brian Deese Brad Setser Lily Bermel Tess Turner Mike Weilandt Chris Humphrey Yasmine Moezinia Todd Moss Katie Auth Ashvin Dayal The Global Energy Alliance for People and Planet (GEAPP) Sustainable Energy for All (SEforALL)