MOBILIST Global’s Post

The International Monetary Fund predicts growth in developing economies for 2024 at 4.1%, vs. 1.5% in advanced economies. But private capital will only invest in that growth if it can do so with appropriate risk levels, transparency, governance and liquidity. That is why building out the listed markets in developing economies is so important to funding development and decarbonisation, according to MOBILIST Global, a programme of the UK's Foreign, Commonwealth and Development Office. This research report by MOBILIST, in collaboration with the Brazilian Stock Exchange and the Global Infrastructure Hub, considers some pioneering listed structures that can help mobilise private capital, including: 1. Infrastructure and green asset-backed securitisation 2. Guarantees for listed hard currency green instruments 3. Listed investment companies and funds tailored to underlying assets most prevalent in developing economies 4. Corporate initial public offerings (IPOs) and special purpose acquisition companies (SPACs) 5. Listed products offering exposure to carbon credits and nature-based solutions One of the key impediments to the flow of capital to developing economies is a misperception of risk, due to gaps in information, regulation and transparency. A significant move of capital into the listed markets would help reshape private capital perceptions of these markets. #emergingmarkets #impactinvesting #brasil #brazil B3 Ross Ferguson UK in Brazil Lion's Head Global Partners Eighteen East Capital https://lnkd.in/ejJYXXAB

Key findings from the ‘2022 Financial System Benchmark’ done by World Benchmarking Alliance, assessing 400 global financial institutions on their progress to supporting a just and sustainable economy... Bold and urgent issues to think about and take action! All organizations including and starting from financial institutions, need to be much more transparent in measuring and managing their impact and reporting. However, this alone is not sufficient. What truly matters is making informed decisions in order to maximize the value created for stakeholders and the planet. ·      The majority of financial institutions do not acknowledge their impact on the environment or society ·      Commitments to a net-zero strategy remain low with virtually no interim targets and tracking in place ·      Human rights risk and impact reporting almost non-existent in the financial sector ·      Financing to low-income countries, SMEs and other excluded groups exceptionally low  ·      Most financial institutions have no process to identify the impact of their financing activities on nature and biodiversity #sustainability #transperancy #impactmeasurement #SDGImpactStandards #OctaImpact

The current global financial system does not yet produce financial flows that are aligned with achieving a safe and just earth system. While emerging markets and developing economies (EMDEs) have most to gain from investment in climate positive growth, they attract only a fraction of global investment. New global guarantee instruments can play a crucial role in scaling capital for climate action in emerging markets. See more in my article for CompaniesDigest.com here: https://lnkd.in/efUBgQnE #climateaction #finance #guarantees #systemchange

Absolutely, our world is currently undergoing significant transformations across various sectors, including energy, fuels, food, finance, and nature. Achieving sustainable and resilient investments that align with climate objectives and the Sustainable Development Goals requires bold, transformative actions from Multilateral Development Banks, International Financial Institutions, and public development banks. While reforming public development finance institutions and revamping Capital Adequacy Frameworks are vital steps, relying solely on public resources falls short of what's needed. Innovative applications of public guarantees have the potential to mobilize public equity, institutional capital, development finance, and promoter capital. This is the time for expansive and systemic thinking, utilizing all available tools to drive urgent action. With time running out, there's no room for prolonged testing and piloting of promising ideas.

💡 I found the conversation on sustainable investment in the fixed income market hosted by Environmental Finance quite insightful. 🌍 Key takeaways and food for thought for African climate finance: ✍🏽 It will take much more convincing to get investors to bite on green/sustainable bond issues from emerging markets. ✍🏽 We can't blame investors; currency risks are a real concern. ✍🏽 The onus is on issuers to navigate these challenges. Some solutions include: 👉🏽 Currency swap options offered by multilateral institutions. 👉🏽 A mix of local and foreign currency-denominated bonds. 👉🏽 Transparent, frequent, and industry-compliant reporting is non-negotiable... seriously, don't joke with this. As an aside, I was particularly excited by the positive sentiment in the room about the prospects of sustainability projects diversifying beyond the usual—green buildings and renewable energy—to include more on biodiversity. I'm all for this diversity. I'm pretty pumped for all the trends that will shake up climate finance in emerging markets. It's an exciting space to watch! ✌🏽

Investing in sustainable development and climate finance goals is more important than ever. The GEMs Consortium has released a landmark report on recovery rates in emerging markets from 1994 to 2022, featuring contributions from 25 members, including #IDBInvest. This report demystifies risks and fosters the creation of new MDB asset classes that are pivotal for sustainable development and climate finance, and crucial for informing investment decisions in these markets. Download the full report and deepen your understanding of emerging market investments here: https://bit.ly/3UhSsuW

👏 Our colleague Steven Knauss was awarded an Anniversary Fund grant from the Oesterreichische Nationalbank (OeNB) for his project "systemic risk assessment in the next phase of the energy transition" What is the project about ❓ The next decade is widely understood to be crucial for the global #EnergyTransition. However, it is likely to take place in a context of heightened geopolitical, trade and technology shocks whose cumulative effects will shape the path and pace of the transition itself. This situation represents a challenge for climate policy, as policymakers need access to forward-looking assessment tools that consider emergent alignments (or lack thereof) between novel economic patterns, macroeconomic policy adaptations, and climate outcomes. ➡ The project aims to respond to the challenge through integrating a series of trade, investment and technological dynamics in an ecological stock-flow consistent macroeconomic model, enabling scenario analysis that allows for context-specific results. ➡ The Project outcome will provide researchers and policymakers with an easily adaptable framework to explore the alignment of climate goals and financial policies across a range of possible event horizons. Stay tuned 😎

Nature is the foundation of our global economy but, until recently, it has been largely invisible to investors. Last week, Pollination launched its inaugural Nature Finance Focus report. The report analyses the experiences of institutional investors in their work on nature to date.   New Private Markets highlighted some of the report's findings, looking at key geographic differences and overall investor sentiment towards Nature-based Solutions and nature markets. Read the full analysis below or on their website: https://lnkd.in/eUtkpC7M Read more coverage: The Japan Times: https://lnkd.in/egvxYBNB Net Zero Investor: https://lnkd.in/d4zbfVhJ Business Today: https://lnkd.in/ecUb89dd Carbon Pulse: https://lnkd.in/e9h4xeUr International Finance Review: https://lnkd.in/e-Tww7cy #FinancingNature #NaturebasedSolutions #NatureFinanceFocus

Important reality check by International Monetary Fund: While the private sector will need to supply 80 to 90 percent of the required climate investment in emerging market and developing economies, we are not getting there. Policies at most major banks are not aligned with net-zero targets and the growing number of dedicated investment funds isn’t having effect on the needed scale. A broad mix of policies will be needed to create an attractive investment environment and unlock the necessary private climate finance. https://lnkd.in/e7RyTMJP

How can asset owners achieve real-world impact and financial returns? Explore targets they set, frameworks in which they operate and practices they implement in our annual Planetary Pulse report: https://nty.one/49HiVaV #91PlanetaryPulse #sustainableinvesting #energytransition #investing #investment Investment involves risk; losses may be made. For professional investors.