The Climate Finance Leadership Initiative (CFLI) was launched in January 2019. UN Secretary General António Guterres asked Michael Bloomberg, the UN Special Envoy for Climate Action, to set up the CFLI in order to accelerate private sector investment for climate solutions. The seven founder members, including HSBC, have published this report “Financing the Low-Carbon Future.” It examines the challenges and potential solutions to delivering the necessary financing for a sustainable low-carbon economy.
The report highlights five factors that are hampering progress:
- Proven investment models are not replicated at scale.
- Risks in emerging markets constrain low-carbon investments.
- Many low-carbon investments in key emitting sectors are not yet profitable.
- The transition from carbon-intensive business models may create financial and social risk.
- There is a lack of tools and incentives to align portfolios with a low-carbon future.