11th OECD Forum on Green Finance and Investment

High-Level Plenary: Mobilising institutional investment towards emerging economies for climate action: The role of investment funds in channelling green capital flows

Oct 15, 2024 | 9:30 AM - 10:40 AM
Conference Room CC15 & Online

Financial instruments Mobilisation Green finance in emerging markets and developing economies Climate, resilience and net zero

There is no shortage of globally available capital. OECD and G20 institutional investors alone have at least USD 64 trillion of assets under management (OECD, 2020). Yet these institutional investors hold only USD 1.04 trillion in infrastructure assets, of which only USD 314 billion are green infrastructure assets, mostly in OECD countries. Cross-border private investment into green sectors will be essential to achieve net-zero objectives, as fiscal constraints from COVID-19 and other current geopolitical shifts necessitate increased mobilisation of private finance. The trillion-dollar question is how to mobilise private capital, especially from OECD institutional investors, in support of climate action, in emerging markets and developing economies. Despite the sustainable finance boom, there is evidence that little funding is currently flowing from investment funds to green assets in emerging markets. The session will discuss the drivers of green investment allocation and what is hindering further allocation towards green assets by private investment funds. It will also discuss other out-standing barriers to institutional investment flowing in EMDEs in support of climate action, especially in clean energy.