 Good morning and welcome to day two of the Green Horizon Summit organized by the Green Finance Institute, the City of London Corporation, together with the World Economic Forum. Yesterday surely was a landmark in the rise and rise of green finance. The UK government committed to a sovereign green bond in 2021 and set out a pathway for mandatory climate risk disclosure, becoming the first G20 country to take this step. They also announced the taxonomy, Standards of Definition for Green Finance, which shall be in harmony with EU standards. The Bank of England announced a new date for climate stress tests for banks. And Christine Lagarde, Kristalina Georgieva and the UN Secretary General encouraged us all to do more faster. A sense of urgency prevailed throughout, and dare I say it, a determination to see practical solutions and action. We also saw a flurry of action from the private sector. Mark Carney set out the COP26 Private Finance Strategy, which sees concrete actions for financial firms to take ahead of Glasgow next year. And David Blood of Generation Investment Management launched a major report on measuring investor portfolio alignment with Paris. With asset owners and managers increasingly navigating a sea of new standards and metrics, the clarity of this new approach is needed and offers promise. Today we will focus on developing markets, on the carbon markets, and on the economics of biodiversity loss, and on climate change, adaptation and resilience. Now numbers aren't everything, so I'm very happy that the comments that you have been making on the side have also been very positive as to the quality of what you've heard. Thank you. But as numbers are also quite interesting, yesterday we had 130,000 livestream views to our website and social channels, and I'm sure there are more statistics to come. So thank you very much for being with us. So may I now introduce the policy chair of the City of London Corporation, Catherine McGinnis, to kick off day two. Good morning, and welcome to the fifth session of the Green Horizon Summit. I'm Catherine McGinnis, and I'm the policy chair at the City of London Corporation, and I'd like to start by thanking all our speakers today, and also all of you for joining from across the globe. I think the level of attendance today shows the level of concern at this major issue, and what we'll be looking at this morning is an important and timely question, how the finance sector and government can work together in unlocking green growth across the globe. Before I introduce the session, I'd just like to take this opportunity to make three key points. Firstly, the cities must lead the way in both the transition to the net zero economy and in preparing for the effects of climate change that are already locked in. And secondly, addressing climate change is not only the right thing to do, it's a commercial necessity. And it's crucial for sustainable recovery, and more importantly, for growth. And lastly, commitment alone, however ambitious, will not be enough. There needs to be a deep and collective urgency to act. Among the many challenges of 2020, it's been heartening to see the sustained commitment to keeping climate action on the agenda. A health crisis hasn't distracted us from tackling the climate crisis. In fact, it's focused our attention on how connected we all are, and how important it is that our response should have both people and planet at the core. For many, cities may not traditionally have been seen as beacons of environmental responsibility, evoking images of crowded streets, concrete sprawl and polluted air. Cities have both the power and the duty to protect people and the environments that they live, work and visit. Cities are the commercial heartbeat of nations, and the livelihoods of many rely on their resilience. As we work through today's questions, let's remember what really matters, the health and well-being of our people, and ensuring that our actions are felt in the real economy. Within the City of London, we recently unveiled our own ambitious action plan to make the square mile the world's greenest global financial centre. We've committed to achieving net zero emissions by 2040 across all categories of emissions, that's 10 years before government goals. To meet this target, we're taking bold, radical action to reimagine the green city of the future. Through our climate action plan, we will implement a range of measures, driving jobs and growth, building climate resilience and tackling climate change head on. We will, for example, update our planning regulations to ensure that new buildings are sustainable and include carbon reduction designs. We will dedicate more street space to cycling and walking, and will enhance carbon removal by introducing sustainable land management practices. Ensure our investments are Paris aligned, and develop a climate action fund working alongside city businesses to invest in low and zero carbon technologies. This strategy sets out our ambition for London to lead the way on climate action. For London and financial centres around the world, this is no longer a nice to have. It's no longer even just the right thing to do. It's a complete necessity. We must be commercially resilient for the future. We've seen the importance of this through the pandemic. The economies that have fared best have been those that were best prepared. Those that had invested in the technology, the systems, the infrastructure, which meant that when faced with a crisis, they were able to adapt and thrive. The coming months will undoubtedly be a challenge for all of us, not least as we continue to grapple with Covid-19. But now is also the moment to plan for the future. And that is why we published our report, London Recharged, last month, looking at London of 2025. The report looks at the questions we need to be asking ourselves now. What action can we now take to support a sustainable recovery, to protect our long-term competitiveness, and to ensure that we are fit for the future? We have a once-in-a-generation opportunity to build a greener, more sustainable economy. And we must seize this opportunity. The signatures on our ambitious commitments are dry. I think we can all agree we need to move faster on the enabling actions. I urge us all not to let today be just another conversation. We all know that decisions made in the next few years will determine the global emissions trajectory for decades to come. We hold the fate of the Paris Agreement in our hands. We hear a lot about the investment gap to deliver Paris and how we need to shift from billions to trillions. We hear much less frequently how we can make this happen. And that's the express purpose of this week's summit, bringing stakeholders together from across the globe to identify the real, tangible actions we can and must all take. Climate change is a global challenge, requiring global collaboration. From business, government, to each of us as individuals, we all have a role to play in the fight against climate change. We will start with keen insights from His Royal Highness, the Prince of Wales, before hearing from Shimara Wikromanoyaki from Ikwari, Minister Luhut from Indonesia, and Mike Bloomberg. We will then hear three essential perspectives to closing the Paris finance gap. First, we will hear from the private finance perspective from investors actively looking for new opportunities in emerging markets and the actions they are taking to invest today. Second, we'll hear from their counterparts in the public finance arena with their take on what more can be done to crowd in investment. And finally, we will hear the view from the ground with Dr Majran sharing his views on what China's net zero commitment means for finance and for the Belt and Road. I look forward to today's discussions and to continuing to work with our partners across London, the UK and around the world as we work to achieve a greener, more sustainable future. Thank you, and it's now my very great pleasure to introduce our next speaker, someone who has spoken out on these issues for years, His Royal Highness, the Prince of Wales. Ladies and gentlemen, I am delighted to have been invited by the Lord Mayor of London to speak to you today at this Green Horizon Summit about my Sustainable Markets Initiative. The current pandemic has brought unimaginable devastation to people's lives, livelihoods, and national economies. At the same time, the green recovery represents an unprecedented opportunity to rethink and reset the ways in which we live and do business. Now, I have long believed that we need a shift in our economic model that places nature and the world's transition to net zero at the heart of how we operate, prioritizing the pursuit of sustainable, inclusive growth in the decades to come. Having been championing climate action now for the last, I don't know, I suppose, 40 years, I can tell you that this isn't a fight for the faint hearted. However, increasingly, we are seeing more and more businesses, investors and consumers, prioritizing sustainability and thus creating a much more virtuous circle of supply and demand. By leveraging market forces and the immense resources of the private sector, there is hope that we can transform the situation, but I'm afraid we are literally at the last hour and there is real urgency for action. We know now what we have to do to rescue the situation rather than going on talking about it. In September, to mark climate week, I called for a new martial-like plan for people, planet and nature. I look forward to detailing and mobilizing action for this plan in the weeks and months ahead. Today, as we focus on financing and investment to drive the green recovery, I would like, if I may, to highlight 10 actions that could make a tremendous difference. First of all, we was proactively mobilizing investment in sustainable infrastructure with a focus on carving out a global asset class for sustainable project financing to unlock capital currently invested elsewhere. Second, we must work to establish functioning global markets for natural capital and carbon offsets, enabling rewards for negative emissions by developing new market frameworks. Third, we must promote the scale-up of emerging technologies that support sustainability and provide them with the advisory support they need to access capital markets more quickly. Fourth, we must rigorously work towards the provision of reliable data and actively advance the adoption of common metrics and standards. As, for example, in the IBC scorecard, in order to allow more informed assessments of sustainability compliance and opportunities for improvement, in particular with regard to alignment with the Paris Agreement, it is time now to move to unified metrics and global standards to encourage accelerated progress through uniform benchmarking. Fifth, we must provide development finance capital to promote research and development and innovative sustainable solutions while leveraging financial innovations to accommodate small to medium enterprises, which typically find it difficult to access significant pools of capital. Sixth, we must build nature-based solutions and carbon capture, use and storage, inter-companies, asset-based and supply chains. We need to advise clients how this can offer significant economic growth opportunities in areas such as the circular bioeconomy, ecotourism and green public infrastructure. The only way, ladies and gentlemen, to reduce emissions at the scale required short of a ban on fossil fuels is to accelerate the development, implementation and scaling up of carbon capture, use and storage, both nature-based and engineered to bias precious time while allowing us rapidly to draw down carbon emissions as we transition towards a net zero global economy. Seventh, we must start accounting for natural capital on companies balance sheets. Without this, firms simply cannot tell the true value of their asset base, nor how damaging their operations may be on the natural world. So we must put nature and sustainability at the centre of companies' business models, their analysis, decisions and actions and ask them to report on it. Eight, we must be bold enough to reimagine industries through the lens of sustainable markets to create more resilient and sustainable products, services and supply chains while in parallel helping the transition efforts. Ninth, we must make the sustainable options the trusted and attainable options for consumers. With consumers controlling an estimated 60% of global GDP, people around the world have the power to drive the transformation to sustainable markets. We must better communicate with consumers about the sustainability of the goods, services and investments we offer. Tenth and finally, we must end perverse subsidies and improve incentives for sustainable alternatives. It must be a real priority to level the playing field and to think about how we properly deploy incentives, policies and regulation in a way that catalyzes sustainable markets and comprehensively considers long-term economic sustainability. Ladies and gentlemen, achieving a sustainable future is the growth story of our time and can in fact fuel our post-pandemic recovery in a way that benefits people's lives and livelihoods and nature's own economy and pays dividends for decades to come. But, but the window for action is rapidly closing. With the urgency required, I hope, ladies and gentlemen, you will join me to drive a new martial-like plan for nature, people and planet led by the private sector to align our collective efforts and resources for the highest possible impact. Our children and grandchildren deserve nothing less. Good morning, everyone. I'd like to start by thanking the City of London for convening this important discussion in the month when we had expected to meet in Glasgow for COP26. I'm delighted to join you virtually today and have been asked to talk about mobilizing capital and how we can work together to accelerate the green transition in emerging markets. It's almost exactly five years since the Paris Agreement and we're approaching the end of the first year of what we know will be a decisive decade in delivering on the Paris commitments. And while we all have our own decarbonization and transition challenges, we know there will be greatest for the countries that lie between where I am here in Sydney and where many of you are in the City of London. Those of us in this virtual room hold many of the solutions to affect the vast scale of change that's needed. And the City of London has long been synonymous with financial institutions and the role that we play in our communities. And that role has never been more significant than in relation to green finance. We're proud to count ourselves as one of the many leaders in progressive green finance with our own global climate finance activities led from the UK. And I'd like to spend the next few minutes giving you my perspective on this, but first let me very briefly introduce Macquarie. As a global investor and financier, we're working to accelerate the global green transition in three main ways. First, meeting the need for more renewable energy. Our green investment group has 25 gigawatts of new projects in development, a fifth of which is in emerging markets. Second, in strengthening the climate resilience and lowering the carbon impact of the infrastructure we all rely on, led mainly through our mirror business, the world's largest real asset manager. And finally, helping our clients to decarbonise. This is a priority across our activities, including our commodities and global markets business recognised recently as the Environmental Markets Bank of the Year. We're active in decarbonisation solutions across energy, agriculture, transportation, waste, industrial emissions and real estate. And last month we held our own virtual conference on the energy transition, bringing together over 1500 clients and stakeholders. And like this event, it was an affirming reminder of the determination across the public and private sectors to work together to deliver the outcomes our planet needs. Alongside the need for more development projects and clear policy frameworks, one of the biggest challenges facing the public and private sector is increasing the flow of private capital into low carbon investments in emerging economies. This was one of the key challenges identified by the Climate Finance Leadership Initiative. Analysis in its report last year showed that two-thirds of emerging markets failed to record more than $100 million of investment in clean energy assets each year. This is equivalent of the finance needed for just one large-scale solar or wind project. And to close this investment gap, we in financial services have an obligation to be clear on our requirements and to work constructively with emerging market governments to create the required conditions. This was the intent behind the CFLI's investment readiness guidelines. The world has capital to invest, and that capital is increasingly seeking returns from projects that actively address our most fundamental challenges. And Macquarie is one of the many companies introducing capital to opportunities, and we are also a well-capitalized business ourselves. Shareholders have entrusted us to put capital to work in developing projects and in meeting community needs. We also have our largest ever pool of dry powder equity under management in our funds. It's mobile capital, and we're only stewards of it working on behalf of fund investors and shareholders, many of whom are ultimately pensioners and insurance holders who rightly have expectations about what we do with it in terms of their need for appropriate risk-adjusted return, while also delivering sound social outcomes. So while we have a need and desire to deploy ever-larger sums in energy transition and in emerging markets, the capital can only flow to the country's companies and projects that are investment-ready and allow us to manage risks to an acceptable level for investors. So let me give you three different examples where we're seeing that happen. And my first is a story about the creative use of limited public capital to mobilize private capital and deliver transformational change and build local capability. Here, the UK government has long been a global leader in climate finance at home and internationally, and one example of this is a joint venture that we've established with our green investment group to channel public climate finance into emerging markets through a dedicated 200 million-pound pilot program called UK Climate Investments. Together, we have delivered a range of innovative investments. In Kenya, we've provided cornerstone funding for an affordable green housing platform introducing a green kicker mechanism to incentivize both climate and financial outperformance. And in India, we've created a first-of-its-kind private yield code for international investors to help finance the world's largest reverse-oction renewable energy program. And in South Africa, we saw a gap in the market for black economic empowerment businesses to participate in South Africa's growing renewable sector. And now local commercial banks are looking to replicate the innovative long-term financing instrument that we developed. The common theme here is using relatively scarce public capital to catalyze and credentialize investment in sustainable energy and infrastructure in sectors, jurisdictions, or structures that aren't widely investable. This is a model that's replicable, scalable, and draws on the best of the public and private sector's capabilities. Now, my second story is a demonstration of the power of establishing a thriving new market ecosystem for private investment in renewables. And in 2015, Taiwan's electricity mix was 80% coal and gas. In 2017, the Taiwanese government signaled a commitment to increase the volume of electricity supply from renewables from 5% to 25% in eight years. A target was set to deliver 5.7 gigawatts of offshore wind by 2025 and another 10 gigawatts by 2035. The clear target and associated changes to the regulatory regime gave us the confidence to start developing a three-phase project to construct 2.5 gigawatts. Phase I, Taiwan's first commercial scale project, is now operational with Phase II in construction. Similarly, positive investment conditions are being created in other countries like Vietnam, the Philippines, Indonesia, and across Latin America. The success of these countries is built on their governments clearly articulating a direction and targets and a well-defined and consistent commercial regulatory and legal framework. This incentivizes private investors to devote time, money, and effort to build a pipeline of projects fostering capital market development and local supply. Now, not all progress is dependent on government action. A third strand of positive momentum is building behind power purchase agreements between renewable energy developers and large multinational corporates working in emerging markets such as Brazil. These agreements de-risk the development of projects by providing long-term visibility on off-take. These various approaches demonstrate how emerging markets can unlock the flows of capital they'll need to build infrastructure to achieve and stretch their NDC commitments. But as important as that is, near-term climate impacts mean these countries must place an equal weighting on investment in climate adaptation. They must attract capital to meet the challenges of retrofitting existing infrastructure and building new infrastructure for a world of rising sea levels and increasingly severe weather. I was lucky enough to visit Bangladesh last year as part of our work with the Global Commission on Adaptation. And Bangladesh is a striking example of the power of effective adaptation in the face of devastating storms. Starting with early warning systems, enhanced disaster response includes cyclone shelters, civic awareness, strengthened buildings, and improved post-disaster recovery to drastically reduce the lives lost from each storm. Now I started by noting the five-year anniversary of the Paris Agreement and the decisive decade that lies ahead of us. But let me end by looking one year into the future where I sincerely hope we'll be gathering in Glasgow for COP26. It will be a moment of high stakes when governments of the world will reaffirm and extend their climate ambitions. We in the financial sector will need to match those ambitions and we as Macquarie Group look forward to working with you all to make sure that Glasgow, in 2021, meets and exceeds the success of Paris in 2015. Thank you. I'm delighted to be here on this occasion. I thank the Lord Mayor of London, Honorable Alderman William Russell and the World Economic Forum and UK's Green Finances Institute for inviting me to speak before such important gathering of policymakers and financiers. We met now on the years of challenge. Most countries in the world are still dealing with the COVID-19 pandemic and Indonesia is no exception. But we all have to be optimistic that together we can soon sail past this storm. In Indonesia, we are pleased to see that the trend of growth of COVID cases is declining, giving us a boost of confidence that we are on the right track in dealing with it. The majority of cases are in eight of our 34 provinces. They are Jakarta, West Java, Central Java, East Java, Bali, North Sumatra, Surawish, Selatan, and Kalimantan, Selatan. About a month and a half ago, the president assigned me to start handling the COVID-19 pandemic in these eight provinces. Our approach are relatively simple, namely, first, changing behavior and increasing community discipline to follow health protocols. Second, increasing the availability of self-isolation facilities throughout Indonesia. Third, ensuring standardization of clinical management and drug availability in various COVID-19 referral hospitals in Indonesia. These eight provinces were responsible for the contributing 72% of national cases when I had just started. And currently, the eight provinces contributed less than 60% of national cases. Ladies and gentlemen, I'm optimistic that starting next year, the Indonesian economy will continue to grow positively amid the current and uncertain global condition Indonesia is taking the momentum to carry out regulatory reform. Recently, the government and Indonesian parliament passed the job creation law. This law is very historic and a significant breakthrough in making Indonesia a desirable investment destination. In essence, this is an omnibus law. Through this law, the government simplified and synchronized 8,451 national regulation and 15,965 regional regulation that had overburdened small, medium businesses and large companies. And an important chapter in this omnibus law also regulates the establishment of our sovereign world fund. We have to make sure that regulation are aligned with the international best practices in sovereign world fund. Another one is the reform of the liberal law. This new chapter will balance the protection of liberal law with the creation of jobs on par with the liberal law of other top investment destination countries. Ladies and gentlemen, Indonesia always do what is right for the environment. Therefore, Indonesia will not let the pandemic derail our effort to reduce marine plastic debris as much as 70% by 2025, as well as 30% of solid waste in general through reduced, reused, recycled and circular economic principles. I very much welcome a platform of partnerships like this in bringing businesses, international donors in national and local governments, community groups and world-class experts together to collaborate on tackling plastic pollution and waste of problem. I want to express my great commitment shown by the UK government and global business leaders to be here today in support of this noble cause, as we all hope that the impact will be as significantly scalable. Solving the plastic pollution problem cannot be done by the government alone. We also need support from all flexors of our community. As part of their behavioral change approach, more than 10,000 communities have taken part in many kinds of community scale cleanup action all over archipelago. Furthermore, methods been applied in terms of educating the people reducing single-use plastics and plastic bags and as far as inserting particular teachings in curricula of early-age education. We have also done things that are in the last many years have been considered as the mission impossible. For instance, starting 2018, we have cleaned up the Citara River that is not long ago still considered as the dirtiest river in the world, diluted with household press and industrial weeds. We have the military involved in the program to reach the target that within seven years it would be as clean as natural possible. We are proud 80% of achievement, the target. We have done similar program at Chilinching River, mountain in northern Jakarta. And ladies and gentlemen, we find that circular economy approach is the right solution to achieve these targets. Ways will be carried out in an integrated manner from collection to reuse into new resources. We are optimistic that this approach will also create new economic activities and job opportunity for the community. The growth of the waste recycling industry is expected to create more than 120,000 new jobs and supporting 3.3 million informal workers. Ladies and gentlemen, the government of Indonesia has enacted a set of regulation to accelerate the growth of waste to energy facilities in Indonesia. We are going to build 12 waste to energy facilities under local government's management scheme. Those local governments can individually or jointly have cooperation with private sectors. Other ways to energy projects such as refuse, derive fuel, RDF, and plastic to fuel have also been built in Indonesia. We have just launched the first RDF plan in the city of Chilapca. It has been operational and has succeeded in reducing up to 120 million tons of waste per day. With the success, we plan to build more than RDF facilities across the cities in Indonesia with a target of 10 RDF facilities in 2021. But most importantly is to deal with the problem at the source of the government of Indonesia requires certain producers, retailers, manufacturers, and food and beverage industry to reduce their plastic-based products, goods of 30% by the end of 2028. We are taking steps in giving legal certainties to private sector who came and on investing in waste to energy activities and to take part in the implementation of circular economy. I welcome any collaboration with stakeholders, including International Cooperation to the Global Plastic Action Partnership. The world must throw its resources in fighting for environmental sustainability. In time of COVID, we must not perfect our search for better world. Thank you very much. I want to speak a little bit more. Yes, in time of COVID, we must not forget our search for better world. And I would like also to emphasize in my final speech, we are doing a lot in Indonesia. We are not only talking, we are not only have a plan that we have planned and we execute the plan. Then you can come to Indonesia, see what we are doing in Indonesia. But I don't think this can be happen without support of so many people and so many institution in order to achieve this one. And we also has responsibility for the next generation of Indonesia. We are doing this, we don't want to see the victim of the wrong policy of the government of Indonesia could realize the next generation of Indonesia. Thank you. First, I want to thank the Lord Mayor, the City of London Corporation and the Green Finance Institute for hosting this timely summit. Let me also thank Mark Carney for all of his strong leadership on climate finance. I've always believed that fighting climate change and strengthening the economy go hand in hand. And while the global pandemic has created a massive economic challenge, it has also created an unprecedented opportunity to spur green growth and to spread the benefits across all communities. Private finance has an important role to play in that work, especially in emerging markets. Last year, Bloomberg joined forces with seven major private sector institutions to launch the Climate Finance Leadership Initiative, or the CFLI for short. And this year, we've been helping emerging markets make climate finance a top recovery strategy so they can accelerate their progress towards a clean energy future. We still have a long way to go to mobilize the trillions of dollars needed to transition to a low-carbon economy. To help, we've teamed up with the Association of European Development Finance Institutions and the Global Infrastructure Facility. Together, we're developing a clear set of private sector considerations for policymakers. As of today, our working document is open and we invite your comments. To learn more, visit bloomberg.com slash CFLI. And thank you for your partnership in creating greener, more resilient economies around the world. A very warm welcome to Dubai and the rest of the world. We're going to investigate investing in a low-carbon future. Paths forward to addressing and enabling the environment challenges. My panel today is Tobias Prost, CEO at Aliens Global. You and Stevenson, CFO at HSBC. Alberto de Paoli, CFO at Enel, and Maria Hakanson over at SWED Fund. Great to have you with me as a group. Let me start with you, Maria, because you perhaps have one of the greatest exposure to emerging markets and running risk. I want to get a sense from all of you. What are the biggest opportunities in the low-carbon climate environment? To you, first of all, Maria. Thank you so much. And I mean, what we can see is, of course, that a pandemic is having consequences on our investments in energy and climate, everything from the slowdown in the economy to effects on delayed payments, projects disruptions due to supply chain issues and effects of lockdown. But still, we see in our markets, which is mainly sub-Saharan Africa, that we still have a large inflow of projects. The challenge I see is that with an increased risk profile, it's becoming more difficult to actually mobilize capital. And just to highlight some areas where we see important opportunities, I would like to bring up solar. I think Africa has a vast resources in this area, but only represent a small fraction of the global energy produced from solar. But with falling technology costs, we are now seeing double-digit growth, both in utility scale as well as in off-grid development. And I think we will see the same development when it comes to energy storage. I also think it's important to bring up digitalization. I think we have seen many countries doing leapfrogs during the pandemic. And I think you will see there is a huge need for investment in developing countries if you want to capture this possibility, both in infrastructure, but also in new things like IoT and the blockchain, creating possibilities for efficiency, but also for sustainable business models based on local needs. So I think we will see a lot more in that arena as well. So you packed a lot in there, Dewey. Let me bring it to you on the asset-gathering side. The biggest opportunities, as you see it, for the moment in this low-carbon investing. I think, look, transitioning into a low-carbon future is certainly one of our biggest challenges these days. And there have been now concrete steps, especially as Oliver Beta, our CEO, announced at the UN Climate Action Summit in 2019 that Allianz is going to join the Net Zero Asset Owner Alliance. And this is also committing to a neutral investment on our portfolios in 2050. That sounds really long-dated, but you have to keep in mind to low-carbon. That means we need Net Zero investments. And this is far beyond water and timber these days. So there's a lot to do. Okay, there's a lot to do. We'll talk about the enabling of those investments in just a moment. Let's bring it to the banker. Let's bring it to you in good day to you, sir. What about your proclivity for risk in a low-carbon world? Is that shifting? Is that changing? And especially within emerging markets? Good day. Yeah, I mean, the transition, I think, is going to represent an enormous challenge, but equally enormous opportunity for the banking sector. For us, as you know, we've got a significant bias towards Asia. We see about half of the transition need in financing coming out of Asia over the next 20 to 30 years. We have a trillion-dollar loan portfolio out today, significant opportunities and sustainable finance, significant opportunities for us in transition finance, and also through our private bank and asset manager funding investment opportunity. So, you know, it is one of the great challenges ahead of us, but equally out of those great challenges comes great opportunity. And Alberto, for you, what do you think the biggest opportunities are in the very near term for our audience that are tuning in now? And they're trying to grapple with climate. It's on the first tweet from the prime minister to the new president, Alex. What are the biggest opportunities that you see? Well, I think it's a whole big opportunity. So, the energy transition is a fact. It's a fact because now it's in the economy, it's in the economy of the salts. So, and this opening a huge level of market that are incredible big in the next 10 years. We as an L, we have already put out 100% of our business model within the energy transition and sustainability. We invest 10 billion euros each year. And so we can classify this 10 billion euros in the four SDG targets that we have committed on. So, I think that this is a unique opportunity for all the world. I think that also all the effort to restart economy that are now flowing towards the new economy and the transition not to investing in things that are so old things to invest in is the big part of this big transition. And Europe is leading this effort because so taking the way to invest only in the future. Having said that, it's clear that this is something that is a global effect. It's clear that different level of risk in different part of the world may attract or not investments of corporation like house and other investors, but working on the framework on the fact that the new economy is more profitable as less risky intrinsically is the way in which we have to build upon to create and to go towards the new world. So, this panel is specifically about emerging markets. So, let's bring it back to you, Joanne, because I know at the core of HSBC, this is about trying to push for lobby for standards, global standards. I know, Maria, it's something that you focused on, but Joanne, can I get a sense from you? What do you mean? Where are we on that journey to create global standards that enable investing in EM? I think one of the difficulties that we've all got at the moment is, there's a vast array of ESG metrics and standards out across the planet. I think we all collectively, both the private sector and the public sector, need an artworking together to try and come up with global standards that are consistent, that are trusted, that are based on science. And I think until we get there, we will limit the appetite of the investment community to invest. We want to make sure that we can manage, we can measure transition in a proper scientific way. So that's what we're all working towards. And Maria, you sort of said we were chatting before, and you said, actually, you're busier this year than you've been for a long time. You're investing, but that comes down to, in part, what you're talking about standards, but also transparency. How tough has that been this year? And does that shine the light more so on the need for deeper transparency and disclosure in emerging markets? I would say so. I mean, we talked about the challenge. For SWED fund, our mission is to fight poverty by investing in sustainable businesses. And we have more than 40 years of experience of doing this. And for us, we can see that climate and poverty goes hand in hand. And therefore, we have chosen to do only fossil freeze in 2014, and we have the target and the goal from our owner to have a neutral portfolio by 2045. But I can really see that, because as I spoke about earlier, we can see the risk profiles increasing. It also becomes a challenge with increased risk also in the contextual environment. So I think that's very important. Then my reflection on standards is that it needs to be integrated in your strategy because you can only measure what you really do. I think that's important. And I fully agree with you that there needs to be some kind of global standard. And I think it needs to be viewed in the same way as with you numbers. And for that to happen, I think it's also needed to be based on research, but also contextualized for different kind of sectors. So you can see what's good, because when it comes to financial statistics, we can all tell what's a good return rate, but it's much more difficult when it comes to ESG data. And I think that's really at the heart of it. If you want to make something, you need to contextualize it and base it on the insight so you can act upon it, just like any other data. Well, Aburra, let me bring that to you because what we need here is public and private partnership. And part of that is about disclosure and it is about standards. So bringing those two together to invest in this low carbon future. How important are the standards to you and creating global standards as you and has just referred to? What is the most important thing to you? Well, yes, I think it's one of the most important things to have this global standard. I agree on the fact that so when standards are needed, too many standards are available. So at the end, creating some confusion. It's clear that we have to work to define a clear standard that are so adopted at all levels. So also I am co-chair of the CFOTA's force for the global compact that is exactly what we are trying to find in the sustainable finance field to try to have a definition of SDG impact basis and also for sustainable finance. And yes, it's clear that on the other side, looking at what we are, so we look also for the developing countries, it's clear that I do agree on a fact that a specific kind of risk are rising on these countries. I want to stress the fact that company like ours are global companies. So we are looking also for a global management of our global risk and global portfolio. So when it is, so we need also at the global level some kind of instruments of the way to finance our programs that are not specifically country-based but are so based on standard fully adopted at the global level. Then we can discuss a little bit on our new financial instruments in that so are, so we invented to try exactly to push on this fact that the global print of some companies may flow investments also in developing countries managing the risk at the global level. Okay, well, we'll come back to the new products in just a moment. I think let's just square off the bias for you when it comes to this standards and transparency. Look, it's critical for everybody on this panel, but it helps you understand your risk more clearly doesn't it? So how important is it to you? Crucial to us, but I think there are already instruments in place if you think about blinded finance. So we have, I think from our perspective to mobilize the public sector really co-create and jointly with the private sector coming to the point where we can combine private and public sector to one piece and as Maria alluded to it's also about risk for private investors. So we have waterfall structures in place which literally can put the private investors before the governments so that they will get their return on investment on the one hand side. And I think this priority change on the risk return profile of such, they can really help to invest into these type of venture capital, private equity especially in underdeveloped areas or in emerging markets on the one hand side and gives you the certainty that we will get enough capital together to really kickstart these super important projects from a society perspective. So Maria, listening to what Tobias is just saying there about the reprioritization of capital. I mean, this is the magic sign for global investors into these low carbon projects is about where do I stand in the queue when I have to assess this risk? So, and I think there's many different aspects if you want to increase and mobilize capital I think you need to both to create a pipeline there is a need for the risking and then I think you need to have an investor friendly environment all three of those are needed. And I think development finance institutions like SWED fund, I think we play an important role both in the creation of the pipeline and also in to some extent also the risking. I mean, part of our role is to be catalytical to take risk, to invest early and also do that on terms that are reasonable and with long tenure so that we over time can mobilize capital. And I also think that the way we work with our business model, I mean, in our case it's built on the three pillars of impact on society what are the results that we are creating on the climate? It's based on sustainability, it's financial viability all three are equally important. And that's also how we work on improving our assets. And that is both I think from a risk management perspective but I think that when you talk about sustainability it's equally much around value creation. I think that's an important role that we can play. And then I think the enabling environment will be key. And here I think as we have talked about earlier that the public private partnership is really, really important. I think this is a challenge that has been there for many, many years. So I think we also need to think about why hasn't it changed? And I think the answer is it's needed with a multi-stakeholder approach. I think it's extremely important that we all bring our different competences to the table not that we overlap or try to take each other roles but that we really try to find a way by mutually reinforcing actions in this respect. So it's about creating the vehicles that are available for everybody to invest in. So at Allianz and then I'll come back to you Alberto as well in terms of the innovation on the products. But Tobias, you first of all, it's about how to best invest in this space in climate. Is that about product innovation? It is by product and by vehicle innovation because you have different client segments, right? At the moment, it's very much dominated by institutional investors which is easier to access via mandates or segregated. However, I think if you really wanna drive innovation in that space, it also needs our retail investors being able to invest into it. And this is to Maria's point, it's very much about collaboration, what we do with the DFIs, comparing for example, our Africa Growth Fund which we launched last year where we put 200 million in venture capital fund investing into Africa, mainly looking after poverty, after education, gender equality. So I think you can really orchestrate this in the same way, but it needs the vehicle and the cooperation of the DFIs and private investors. And this means both client segments, institutional and retail clients. And Albert, let's just bring it back to you. You mentioned the product and the vehicle. So just expand on that a little bit to Tobias's point. Well, yes, so first of all, so also as we are already investing in Africa and in India, so we have already a lot of investments there. Here, first of all, and so we invest in Zambia and the Skating Solar, so we invest in Tunisia, South Africa, India, so we have already investment there. Here for, so we're using a risk, so now we are seeking for partnership and this is the first thing we do, so we have already defined with North Fund the partnership to develop India and then now we are seeking another partnership to develop South Africa and also the Sub-Saharan area. So this is the first thing. The second is, I think, it's relevant to bring some knowledge and some things that you have already defined in other countries, also in these countries, to create the framework we were talking about. On the financing side, we are pushing not there, but now globally, the fact that we think the sustainable finance we have to exit the project level and to enter in a new phase. The new phase is to have financing back to targets and not to single projects and for this and to back this program would be to back some financing also for countries like we do for our own programs. We have issued this SDG link bond and now has been renamed the Sustainable Link Bond. This is exactly the way in which we are exiting the Green Bond portfolio and so to exit the project link financing to enter on the target link finance. We have assumed some SDG targets and now our financing is based on, so the achievement of this target but this is a general purpose bond. So to have and financing a program and targets and a strategy and not single projects that so provide to rigidity for company like us and also other companies to pull financing and so developing in our global print and also in the specific countries in which we are. Euren, can I bring it back to you? In the end of the day on the banking side, you talked about the exposure that you, as an institution have in China and you have experience of the work in that higher risk market, some would say. So to you what is important when measuring risk for these kind of green and sustainable projects in emerging markets? What's top of your mind is the CFO? Well, when we look at our portfolio today, I guess there's two things we worry about. I mean, firstly, we track six sectors closely, oil and gas, utilities and the like, higher risk or carbon intensive sectors, which is just over 20% of our whole portfolio. We're building climate into the annual credit assessment of those customers. But I think we're only beginning to scratch the surface of this. I think there's an enormous amount of work that we and the other banks need to do. I think a lot of us will come out of the Bank of England stress testing work that we're all gonna be subject to in 2021 on climate. But at the moment, we've got some of the data but not all of the data we need on transition risk. And on the other side of it, we're very cognizant of the fact that for some of the new sustainable finance, not all of it's been successful. So we've had large credit issues and things like wind and solar. So again, I think we are cautious. We need support from regulators to make sure that the regulation doesn't penalize excessively the high emitters today and equally doesn't create capital disincenters for us supporting some of the new sustainable technology, sustainable enterprises. Do you think some of the credit issues, as you say, are some of the sort of blows that you've had maybe in some of the sectors that you put finance to work in, you have perhaps held you back and held other banks back from putting more money, deploying more capital and more risk into these emerging markets and into these sustainable projects because of the injuries you've sustained? You know, I don't think it's stopping us, but banks are not the natural holders of equity we're the natural holders of debt. And it needs to be, I think, as you're hearing from everyone here, a sort of comprehensive package of support both from the private sector and the public sector. You know, the bank's sweet spot is providing debt into those enterprises, not equity. Maria, what more do you want to see from the government? I think what, forgive me, you said 65% of your portfolio is sub-Saharan Africa. So what more do you want to see from the public side? How does the public side get more robust in meeting the criteria that you set? I think there are many different aspects when it comes to the enabling environment. I think there is always this predictability when it comes to legislation, taxes, consistency and PPA off-takers and so on. But I think another important aspect is also the competence and capability for sustainable procurement when it comes to large infrastructure projects financed by governments. We have worked with the grant facility here to actually improve this. And I think that's a good way because what you can enable them is actually increased grid stability, which is a good condition for actually increasing private renewable investments. I think you can also see the importance of demonstration effects. I think there are things like using renewable energy for base load, which is normally something where you say you need to use fossil energy, but you can also use renewable energy through dams. And I think if you can utilize the public part in this also both to drive infrastructure improvement but also the demonstration to accelerate the development, I think that can be very important. Now today, I just want to take a moment to reflect. We're launching, as you know, a paper for private sector consideration for policymakers. I just want to get a sense. I just want to go around the panel and get a sense. There's an opportunity for people to contribute to this consultative document. So what needs to be in there? Let me bring that to you, Tobias. First of all, what will you be contributing? What will you be lobbying for in that consultation paper? I think to us, Gail is central in contributing to that climate change, resilient infrastructure in the emerging market. Thus, our greater coordination, and you have heard this in this panel before, is needed among the DFIs as providers of subordinated capital and private investors to one hand. And this then also will address the challenge that emerging markets or the investment in emerging markets tend to be a higher commercial risk or two commercial investors. And this is the reason why we need a stronger collaboration between private and public sector, which is addressing what we just discussed. And to you, Alberto, what needs to be in that paper? Well, I think that this strong collaboration and the central part of this paper is clear that we have, as said, some big gaps to be managed. One is, as said, so the frameworks that has been to be established also in emerging countries to have a company like us to rely on some clear way to invest. And I think in this field is relevant that all the collaboration was made that all the collaboration would put in place for experienced a company like us and other companies can bring to elaborate frameworks that are available for our investments. On the other part, I think that this financing gap is the huge part of things that we have to work together in this, to elaborate in this paper. This financing gap is related to a lot of things, as said. So a lack of instruments on one side and on the other side, the fact that so institutional development banks will have to collaborate at the global level because at the local level, all the best practices that we can put in place at the global level make flows to the local level to support local investments. I think these two aspects are the most important things that we have to stress. Yeah, and what would you be lobbying for at a practical level to, I suppose, build this public-private corridor and bring us closer together? Yeah, I think what we've all been talking about here is improving trust and confidence in investments. We've talked about having global standards that we all trust. I think we need to see regulation and policy that's fully aligned to providing sustainability agendas. I think we need to improve disclosure standards for everyone who's reporting in a consistent way that we all trust and backed by the auditing profession. And I think we need a functioning carbon trading offset market as well, again, which is an important component of all of this. So I think the government's a big role to play in creating that framework that we can all invest into. And, Maria, let's just close it off with you. I think it's important both, and I think that's been mentioned, to bring lessons learned from successful countries. What have they done? And then that the different actors list what are the requirements from us? But I think it's important that a document like this can't be a prescriptive set of guidelines to implement or mandatory investment requirements, but rather a starting point for a dialogue. And I think that's the important part, that we actually get the dialogue going with different countries. And taking into consideration also, that all countries have different starting points in different contexts. And I think that's a very important factor to bring. There's not one answer for everyone. And then I can only echo the importance of global standards for impact and for ESG. I think that would be key as well for mobilizing capital. So I'm going to pick up probably the biggest single global theme and go slightly off piece. But just to get your response, we have a new president-elect who on the front page of his transition document, it's about climate, the first tweet from the British prime minister to the new president-elect was about climate. To what extent, to buy a ticket to you first of all, to what extent does a new administration with a different agenda, let's put it that way, what does that do to the global narrative and the global view of risk? We're dealing with emerging markets, paths to investing in emerging markets, but what does that new narrative do for the global investing appetite into emerging markets in climate and carbon? Okay, hopefully we'll give us more certainty as Joe Biden as president-elect first statement was that he will rejoin the co-op 21 agreement, which is I think a good news to us as society. And this is not a German or European wish. I think this is a global demand for I have to say. With regards to emerging markets, I think it will just be a better packaged message from the US. But if you look on the trade war with China, we do not expect that there will be a huge difference in terms of if you look at the GDP pre-crisis, post-crisis, China has been very much coming back to old strength while the westernized world is still lagging behind. And this means there's a bigger catch-up needed. And this is a US and continental and European phenomenon. So I expect that Joe Biden, and you also have seen what he has sent as a message on defense costs on the NATO. I think also as a vice president to Barack Obama, his position has not changed there. So more to come. More to come. You have a quick response from you in terms of what does it help the narrative that we're discussing here on this panel today? Yeah, it's absolutely got to help. I mean, we've talked consistently on this panel about the need for global responses. Having the US consistently part of that narrative is critically important, I think. I think it will make a huge difference. And the other thing that I would hope is, yeah, we haven't spent much time talking about technology, but technology enablement has to be part of the answer to and getting the US technology industry up behind clean tech, I think would be great if we could see that happening over the coming years. Maria, a line from you, a comment from you. I think it's so important. I think time is short, and I think to get more credibility and also the US behind the Paris Agreement would be so important, because I think we all need to look upon our portfolios and see, okay, will we meet the different requirements 2030 and 2050? And I think it brings legitimacy also to have the US behind it. I think it's extremely important. Alberto, let me just bring it to you as well, because a quick line on that, and then I want to finish off a quick round robin in terms of pipeline. So, Alberto, a quick line from you in terms of the potential for the new administration to inspire risk in emerging markets and take more risk and look at these projects more seriously. Well, I think it's relevant. I would say on the other side that technology and the economical return of the new investments are already here. So, when we had the previous administration supporting coal in the United States, so coal plants were shut down at an incredible rate not because for other reasons but because we were putting renewable instead of coal as a full of economical reasons. And this is something that is now evident in all the world. So, we don't need to find any incentives now to develop. Now we have to define exactly what we were discussing about. So, to create frameworks, to create the will to create conditions to have companies to take the level of risk they want to have. But this is an easier task. So, I think that in this, so having this administration pushing with the others will be relevant for a big change. Just a quick line from each of you in terms of technology and the role that's going to play you and you spark that. We have about three minutes. So, a quick line from you in terms of how important technology is to enabling the investing in the low-carbon future. A line from you, you and first of all, and then we'll quickly round the room. Yeah, we think it's critically important. We've just recently set up a venture capital fund for 100 million into debt and clean tech. It's an absolutely critical important part of solving the climate issue. Maria, a quick line from you on technology. I said before, I think it creates opportunities for efficiencies and for new business model. And I think technologies like IoT and blockchain will be key to transform developing countries. And I think this is really a possibility to close the gap between developing countries and the developed world. So, I have high belief in technology and the importance of it. And just a closing line from you to bias on that as well. I mean, I suppose when we talk about low-carbon, how important is technology going to be in terms of encouraging capital to come to emerging markets? Yeah, if you look at the aggregate on the global energy demand that has evolved on the one hand side, but it has grown at a much faster rate than the renewable energy. And if you estimate our annual investments in clean technologies coming with it, as Ian and Maria alluded to, is to increase our energy efficiency. It would need an increased factor by six to the year 2050 that we have compared levels with 2015 to limit warming by 1.5 degrees Celsius. And that tells you all. Okay, it's been a great conversation with all of you. Thank you for joining us today. And as I say, that consultation paper is out there now for anybody who's tuning in now to get on board, join in. It is about mobilizing capital, the scale of capital. My thanks to all of you. That is to Tobias Prost, CFO, CEO, excuse me, at Allianz Global Investors. I very nearly demoted Tobias. That could be a folly. My apologies Tobias. Euan, I haven't made you CEO yet. Noel's still in the job. CFO, Euan Stevenson of HSBC. And of course to Alberto de Parli. CFO over at Enel. I'm Maria Hakansson, CEO at Swedfund. I thank all of you for joining us today. Let's mobilize capital. Let's get it to the emerging markets. And take heart, a great panel. And I thank you all for your time today. I wish you well for the rest of the day. Ladies and gentlemen, a very good morning from Dubai and from Bloomberg. I'm Manus Krani. Good morning from the UK. The next session follows very naturally from the one that's just finished. Our subject is strengthening the enabling environment, the actions of government and multilateral institutions. My name is Nick Stern. I'm a professor at the LSE. And I chair the Grants and Research Institute on climate change and the environment at the LSE. I'll introduce our three very distinguished panelists in just a moment. But let me make one or two points at the beginning to frame our discussion. The first is that green growth is not only essential for our future on this planet. It is also the growth story of the 21st century. Second, there's great urgency and scale that the world's infrastructure will double, roughly speaking, in the next 15 or 20 years. It has to be a completely different infrastructure than the one that came before. Otherwise, even three degrees will be out of reach, let alone 1.5 degrees. So there's great urgency and there's great scale. In this decade, we have to halve emissions to give ourselves a good chance of 1.5 degrees. So urgency and scale is fundamental. That's why we're emphasizing acceleration here. We have momentum, but nowhere near strong enough at the moment. The next point we have to recognize is that this big investment story, sustainable investment story, will in large measure be a private sector story. Of course, both public-private mixtures, but a big part of it will be private. So we have to ask ourselves the question, how can the private sector invest? And the final thing I want to underline is the overall world macro position. Obviously, we're in a deep crisis with COVID and we have a story up to the end of 2019 which had a world with great investment opportunities, a world with political savings, but a real challenge of turning investment opportunity into real investment programs and getting the right kind of finance in the right place in the right time. And that challenge now is set in the context of heavy unemployment around the world associated with the COVID crisis. So this is why investment, acceleration, of course, sustainable investment is so important. So how do we draw all this through? How do we make things happen? Well, our panel is going to help us understand that. And we have three people here. Josue Tanaka, who is the managing director on energy efficiency and climate change at the EBRD. He's replacing Odile Renaud Basso, who is the president-delect of the EBRD, but she has been called in by Chancellor Merkel and President Macron for a discussion and she's speaking now to them, but Josue is stepping in. So thank you very much, Josue. We have Sadani Alexander, who is a vice president of the AIIB, the Asian Infrastructure Investment Bank, previously a very senior figure in the UK Treasury and in UK politics. And we have Jose Binyals, who's chairman of Standard Charter. And I think it's fair to say Standard Charter is at the forefront of this whole story in the banking community. So thank you all for being with us. And let me turn to our first question. We have three questions on policy, finance and engaging with clients. And on policy, I'll turn to you first, Josue. What are the key policy measures which should be pursued to scale up private climate finance mobilization and what is your organization doing in this respect? Josue, please. Well, thank you very much, Nick, and good morning from London too. I would say perhaps that one of the key elements that we work on in order to accelerate this mobilization and very much in the spirit, I think of what happened in the previous session with the Climate Finance Leadership Initiative, which identifies renewable energy. We've done this, for example, in Kazakhstan on Ukraine. It's work that takes quite a long time to do, sometimes two years, three years to do. But once you do that, you open up one, the pipeline of investments and two, the conditions within which, you know, the private sector can invest. Second example I could give you is in relation to cities. We've put at EBRD quite an emphasis on climate finance for cities. But there are a lot of questions underneath. In particular, how do you finance the subnational level? And the third example I could give you of these type of policy measures is really the work that I think we need to do, particularly as we reach now the fifth anniversary of the Paris Agreement, the work that we need to do with the countries in which we work, you know, on decarbonization pathways, because this is really what's going to, in a way, integrate the macro policy side with the micro side of individual investments. So this is on the sector policy and perhaps very quickly two other points that I think MDBs work on. One is the notion of cost-reflective prices. So, you know, it's very difficult. Private investors are driven by risk return. You need to have cost-reflective prices for that. Obviously, particularly in this period of pandemic and post-pandemic, the social aspects will also have to be looked at. And finally, another piece that the MDBs work on is, I would say, general work on investment climate. It's not specific to climate finance, but without that, climate finance also doesn't flow. So, Nick, these are just a few examples, I would say, of specific areas of work. Thank you very much, Josue. Danny, could you tell us something of the AIIB in relation to policy to pull investments through? Yes, thank you, Nick. And good evening from Beijing. The younger generation is also just joining us from here. For the AIIB, I'd start with the ambition. You rightly said in your opening remarks that the sense of urgency and scale is in a way the most important place to start. For AIIB, we approved a couple of months ago our first corporate strategy, recharging our plans to develop the AIIB from a successful startup phase over the next decade to 2030. And one of the targets that we set in that document was that by 2025, we want 50% of our investments, which are investments in infrastructure in Asia and beyond, to be climate finance-related. So, climate change, mitigation, and adaptation. And so, that will then drive a lot of our work with clients. I know we'll come to that in the coming years about the kind of projects we're developing both with sovereign and non-sovereign clients. And also, it's important to say that among multilateral development banks as a class of institutions, cooperation amongst MDBs is also very important to develop common understandings in key areas. For example, what does it mean to be aligned to the Paris Agreement? How do we account for greenhouse gas emissions? So that when we're measuring our performance on these issues, we're speaking a common language, we're using a common metric so that we can see the difference that we're making. But look also, MDBs are a relatively small amount of finance compared to the overall scale of the finance that is needed. So also, picking projects which are innovative, which exemplify good practice, which can help to demonstrate future directions, projects that make a great deal of impact in themselves because they can then be developed by others. I think it's a critical role that MDBs can play to catalyze the right kind of investment at the right kind of scale to support the objectives that we're all signed up to in this conversation. Thank you. Thank you very much, Vanny. And Jose, as a private sector, leading private sector banking institution, what do you look for in the policies that enable you to get involved on scale? Well, thank you very much, Nick, and good day to everybody. I think that we already start from a better position than a year or two ago, which is that there is a significant alignment of objectives between the public sector and the private sector. And now what we need is action on both sides and to exploit the synergies that we have in order to deliver on the scale of financing, which is needed on the climate change and more broadly on the sustainability sphere. And I think there are a number of things that can and should be done by governments. The first one is that in a number of countries, advanced economies, and some emerging markets and developing economies down the road, they're going to be COVID recovery packages. And I think it's very important that there is a deep dialogue with the private sector and the private financial sector so that their services can be used in order to get the biggest bang for the back in delivering on the green and sustainability agenda. And I think, for example, that the EU, European Union Green Deal is a good example of that. Second, very important to scale up the issuance of sovereign green bonds and sustainability bonds. This is something that I think is a must, but in a number of places, it needs putting in place the right framework to make this possible. Now, beyond what governments can do, there are a number of things that regulators can also do. One very important thing is make sure that when regulation is constructed, you don't take too narrow a focus on financing the transition because there can be unwanted effects. I think that going from brown to green means going from brown to say my brown to say my green to green. So one needs to make sure that one is realistic and that regulation is consistent with that journey that we all need to make. Another thing is to harmonize the various standards and the myriad of definitions which exist about green and sustainable because investors really need clarity. A lot of institutional investors and other financial institutions have clear fiduciary responsibilities and clear mandates. But it's fundamental to avoid green washing and sustainability washing so you need to know exactly where you are investing. So I think that having more clarity and homogeneity on these definitions and standards is critical. And if we think specifically of emerging markets and developing economies, governance is fundamental. Governance in terms of legal certainty about embroidery and corruption which is a big deterrent for investors to bring their money to those markets so that's critical. And finally, governments cannot act alone. They need to act in a concerted manner. We have committed a standard charter to facilitate funding for about $75 billion over the next five years to sustainable infrastructures and renewable sources of energy and that is going to be done in part in close collaboration with international financial institutions through blended finance and other means of developing bankable projects. So very much in sync with what Danny was mentioning. Thank you very much. We've had some very clear answers on how to get the multiplication and the acceleration. Good examples. Regulatory policy charts a clear path. Clarity, removing the obstacles and of course working together amongst the MDBs with the private sector with the public sector. So I think those are very clear strong lessons on how to scale up from those who are actually doing it. Let's now turn to the finance side. And Jose, if it's all right to start with you on the finance. What are the specific financing instruments which can accelerate the deployment of private climate finance in emerging markets? And can you give us some examples? Jose, please. Well, I think that today the focus has been on green and sustainable bonds and I think that's been important. But we need to broaden the financial products spectrum beyond that. So we need to move into investment funds into green and sustainable loans, green and sustainable deposits, green and sustainable money market funds. All of that is going to be very important. We have recently published a green and sustainable product framework that leads financial products to the UN Sustainable Development Goals. And to offer a couple of examples of things that we're doing, we launched last year a sustainable deposit where the assets financed by the money coming into that deposit are very, very closely linked in demonstrably so with the United Nations Sustainable Development Goals. We opened up this possibility first to corporates and we had a lot of success and now we have developed it to just normal people, retail deposits, so that people can vote with the money, where they want to put the money on. And you know what? In less than a year, we've already gotten $2 billion added to those deposits and counting. So that would be one specific example. And then on blended finance, whose importance cannot be underestimated, I think that the private sector working alongside with the public sector and we do that a lot with IFIs, with institutions like that of Danny and others, we are able to put together projects where blended finance gives a big multiplier in terms of financing. So we have committed to catalyzing a further $5 billion of blended finance over the next five years and that's going to lead to a large multiplier, which is going to help us accomplish the $75 billion target I was mentioning a few minutes ago. Thank you very much Jose. Danny, can you tell us something about AIIB instruments? Well, I think the key thing for us and for MDBs is to use the finance we have to the maximum effect to mobilize much greater amounts of private finance into projects and into the green finance market. So that means that for AIIB it's not only project loans, also equity investments are very important. We recently committed to Lightsmith Climate Resilience Fund, which is a fund investing in climate resilient projects in Asia, which again helps to multiply manyfold the impact of our finance. But also I think for AIIB we've become active in supporting the development of financial markets for climate finance. So recently with Amundi we launched a climate bond portfolio which was seeking to assess not just the climate compliance if you like of the proceeds of the bond, but of the issuer. And so with Amundi we developed a framework which will enable us to assess whether the issuers of the bonds are Paris framework will be not only useful for the deployment of the $500 million that we've allocated to that portfolio to start with, so those would be two examples going beyond traditional MDB finance to looking much more broadly into other areas. Thank you very much, Danny. Now, Joshua, I know you've had very long experience in financing instruments at the EBRD where you've been for a number of years which is 30 now, Joshua, so you could take us through their experience. So perhaps just to complement what Jose and Danny mentioned, I think perhaps I'll just focus on two points. One may sound like a truism but it's an important one to make which is for MDBs to mobilize private sector we need to work with the private sector. So it sounds very obvious but I think it's one that needs to be said. And therefore at EBRD, for example, we really have actually a target in terms of our private involvement, 75%, and within climate finance we do try to keep close to that target. Therefore, two-thirds of our climate finance to date has been in the private sector. So that's the first comment I would make. Again, I'm sorry if it sounds so obvious but I think it is something that needs to be said. The second point to complement the points that Jose and Danny have mentioned in terms of instruments and perhaps linking to the first topic on policy is just to give you one example in Egypt in this case of the kind of work you can do that perhaps is not a financing instrument in itself but that is an immense mobilizer. And in the case of Egypt, the example I would like to give you is the work that EBRD did with the government of Egypt on deriving, defining, a model PPA for renewable energy. Again, it took time, we involved the private sector, we involved the government but we developed that model PPA. The result of it was and is the largest solar project in Africa. So it's the solar array in Ben-Ben, 1.5 gigawatts capacity supply for about 5 million Egyptians and just as a point to illustrate the size of this, the size of about 5,000 football fields in terms of solar array. But maybe to conclude, Nick and land back to the question about a finance instrument, underneath this, that model PPA managed to mobilize 30 private developers, EBRD financed 16 of them and the mobilization of this within our 16 projects was $1 billion of private finance. So again, just to give you an illustration of I would say the tiering and how different instruments, whether blended finance, whether the fund structures that Danny mentioned or whether this type of technical assistance to a certain extent, all are practical instruments for private sector finance mobilization. Thank you. Thank you, Joswain. We've had a very rich set of examples which I'll not try to summarize but I think what we've seen is creativity and opportunity in the financing instruments being created in different but complementary and overlapping ways in those three institutions. Let's spend our last few minutes on engagement with clients and I'll start that one with you Danny if I may and then move to Jose and give the last word to Joswain. So engagement with clients is clearly key as a part of accelerating private climate action. The Know Your Client of course is first rule of of banking and could you help us understand how you bring sustainable development and climate into the engagement with your clients? Danny. Thanks very much Nick. It's a really important question and it's important to distinguish between the sovereign and the non-sovereign clients. So going back to what I said at the beginning about AIB's corporate strategy and the focus that we have for the development of the bank in the next few years on climate that comes from our members. It's our members who have been involved in shaping and developing that strategy and so in that sense the sovereign clients are really at the core of building AIB that focus for the next few years and it's interesting also to see how some of the domestic policy frameworks are developing. More and more of our members around the world adopting targets for when they want to become carbon neutral most recently China announcing a target of 2060 many European members aiming it 2050. So that creates a very high level framework to which MDBs can respond by coming forward not just with instruments but a policy and knowledge work that can help to work with clients to see the direction that they should go in. For the non-sovereign clients where again we're seeking to grow substantially the share of our business that's non-sovereign in the way that EBRD has done so successfully over the decades. We see engagement on climate as particularly crucial to growing that of our business and that means being very clear in our shop window if you like about the importance that we attach to climate about the sorts of things that we're doing and over time as we finance projects highlighting what we've done so that clients can see what we're interested in but also reaching out through events like this to highlight the fact that in Asia particularly AIB is very much in the market for financing projects of all sorts which help to deliver climate change objectives is an important part of that too so also thank you for this opportunity to reach out in that way. Thank you Dany Hosei please. Well the first thing in engaging with our clients is to be crystal clear about what we are prepared to do and what we are not prepared to do learning to say no and not like that but maybe just in another matter this is something which is very important now this is something which is very clear for instance in our position statements on climate change and on sustainability more generally which define the way we want to do business so clarity is the first thing. The second is helping clients both private and public sector clients understand the risks that climate change and unsustainable business practices pose to their own business and also to the broader environment in which they operate and third helping those kinds manage the transition towards more sustainable business models fighting climate change moving to greener more sustainable and last I think that when we talk about investors helping them understand the fantastic opportunities which are out there we publish earlier in the year our opportunity 2030 report which looks at the private sector investment opportunities in 15 fastest growing emerging markets between now in 2030 in three domains energy clean energy water safety and then sustainable infrastructures 10 trillion dollars of private sector investment opportunities half of them in clean sector great opportunity and we're doing our best in order to bring our investors to put their money where it's most needed in emerging markets and developing economies to make a difference. Thank you very much Jose Josue please. Time I just go a bit telegraphic style I think first of all and complimenting I like very much Jose's point about first saying learning to say no or say no in a positive way but what we try to do first of all is a technical engagement very often clients come with a project the opportunity for a climate finance opportunity is not identified but we work with the client to develop that opportunity so that's the first one the second one is our engagement with I would say green financing with private banks over time the last 15 years we've built a network of over 150 private banks in our countries of operation in which we essentially built together with them green finance to show that it is a good business and the final one looking forward is work that we're starting to do on climate corporate governance in financial institutions linked for example to the introduction of the TCFD in with our clients so Nick I leave you here so you can conclude thank you very much Thank you I found that an enormously productive discussion if we're to get investment going and the right kind of finance the right place the right time for that sustainable investment what we've heard in a very clear and strong way from all three of the very experienced people imaginative people on this call is the importance of strategy and clarity investment needs strategy and clarity it needs to look ahead with confidence to see what are the big opportunities that are there the second is to engage very closely with clients banking and finance has to be between people who understand the other people who are involved and that involves close engagement and finally the detail preparation instruments matter they have to be designed for the circumstances the investment climate needs careful design and putting together in order for people to invest with confidence but what we've seen I think from our three contributors here is a very clear example of how strategy produces results if you get the right kind of people behind it recognize the opportunities work together with people and do the detail hard graph to get everything in place it's a very impressive story and I'd like to thank you all very much for educating us this morning I've learned tremendously and it makes me really optimistic about what we can and a little less pessimistic as to whether we will do it to quite a phrase yes we can so thank you thank you all very much indeed goodbye everyone my name is Sherry Madira I am the chief industry and government affairs officer and I'm also the chair of the future of sustainable data alliance and I'm delighted to be here talking to Dr. Majun who has incredible number of credits to his name I'll try and do a short justice to that before we kick off Dr. Ma is the director for the center for finance and development at Tsinghua University the chairman of the China Green Finance Committee a member of the PBOC's Monetary Policy Committee and he chairs the supervision work stream of the NGFS he's also the man that I often call when thinking about what's going on with the world and sustainable finance so hopefully today will be like many other sessions incredibly interesting and fruitful for us all to learn thanks for joining us Dr. Ma thank you Sherry great well let's jump in and we're slated to cover the view from emerging markets today so the largest emerging market in many definitions of EM is China and China has been a very active participant in the topic of sustainable finance for many years the question is where do you see China's role in global regulation and standards on sustainable finance now and into the future now maybe I'll start with what China has been doing and I extend the topic to international role in China we begin to think about building a green financial system as early as in 2014 and in 2016 China issued this what you call regulation which is guidelines for green financial system that was a joint released by seven different ministries led by the PBOC so within that guidelines we had many what I call pillars in terms of taxonomy disclosure requirements products and so on so forth so over the past four or five years we pretty much have a system which included three sets of taxonomies and all these are top down which could be described as regulation issued by different ministries regulating the financial sector these taxonomies included one for banking namely for green credit one for green bonds one for green projects and the second key aspect of the green financial system in China is disclosure requirements we back in 2017 had a mandatory requirement for major polluters to disclose environmental information on the mandatory basis and over time we moved towards a semi compulsory scheme which asked the listed companies to either disclose or explain and now by end of this year we're going to have mandatory requirements for the listed companies and all bond issues to disclose environmental information of course there are a couple of other incentive related issues including central bank providing G financing through commercial bank to the green projects and the local level there are lots of inter subsidies and guarantees and so on so this forms what I call a green financial system of course supported and what we have in the green banking space more than 11 trillion RMB worth of green bonds in terms of outstanding number and more than 1.2 trillion RMB worth of green bonds issued I'm sorry if I was mistaken the first number should be the green credit 11 trillion and the second number is 1.2 trillion RMB worth of green bonds issued and the third number which is also very impressive 700 green funds set up as of now and now extending to the global discussion China was very keen in driving and being engaged in a lot of international initiatives including through the G20 green finance study group which you were quite familiar with I was a coach here for 3 years between 2016 and 2018 and during these periods the study group successfully mainstreamed the green finance concept as the consensus of global political leaders and also participated actively in the NGFS and more recently launched the Green Massive Principles for Berlin Road together with the City of London which is very successful operation in the past 2 years so these are the efforts China is trying to make to integrate with other parts of the world in jointly developing the green financial system but still I think the participation by emerging markets are relatively limited in most of these international collaborations we had a large number of VCD country representatives and institutions but I'm really hoping that emerging markets which is a topic today can be much more involved than we have today and on that topic you've already referenced a number of these global engagement platforms NGFS the Network for Greening the Financial System the IPSF, the GIPs which I remember fondly early days of drafting and have taken off now in the emerging markets what sort of participation are they having in these platforms and are there any considerations for them to green the financial systems and participate in the global financial system let me talk about 3 international platforms which I'm quite actively involved in one is NGFS that's the central banks and the supervisor network for greening the financial system it was initially founded by 8 country central banks and China was part of that now it's more than 70 members including the central banks and financial supervisors initially at least in the first year it was largely OECD countries with very limited emerging market participation second year I think we're seeing more but in terms of representation relative to population I think still emerging markets are very underrepresented I'm strongly about endorsing the NGFS view that we need to diversify further in terms of membership especially by attracting countries and their regulators from Asia and Africa and Latin America and I think that effort is delivering some results the second platform is called IPSF international platform for sustainable finance which is relatively new a year ago initiated by EU China again is part of that and we're launching a working group I think it's the first working group under the IPSF called Sustainable Finance Taxonomy which I co-chair and again my view is that a lot of OECD country representation and emerging markets are lacking and we need to push for that the only international network which I see as mainly focused on emerging markets is the GIP which is called Green Western Principles that was initiated by China Green Finance Committee and City of London two years ago we now have 14 countries represented 37 organizations signed up and in the future we're going to launch GIP local chapters not only having two headquarters one in Beijing one in London where we won't have local chapters in Central Asia, in Africa, in Latin American countries that's how we intend to extend the network's inference to the most needed places which is where the Sustainable Finance is lacking right you mentioned the NGFS and there was a recent report out in September outlining environmental risk analysis and how to translate environmental risks into financial risks the report proposed six different opportunities for mainstream in ERA how is this applicable to emerging markets is it equally applicable or are there special considerations there as well maybe just few words on ERA itself for those who are not familiar with the concept it's environmental risk analysis but it covers environmental risk and climate-related risks a typical analysis under that scene is to quantify the financial risks arising from a financial institution's exposure to environmental and climate risks just to give you one particular example we conducted such environmental risk analysis on a coal fire power plant looking at how much the default rate is going to go up from a bank perspective if they continue to lend to such a power plant and we show that under certain assumptions the default probability will go up from 3% today to more than 20% in 10 years time this is a type of analysis which we are now strongly encouraging banks as a manager insurance companies to conduct so that they will be aware of such risks and begin to deal with these risks after they quantify such risks I think will be stronger internal incentive for them to divest from many of these high carbon assets and polluting assets and develop more resources to the green and sustainable assets in terms of application most of the institution that adopted the ERA again in OECD countries a couple of Chinese large institutions have done that but most of other emerging market economies have limited awareness capacity and government encouragement that's why we raised these six options for different countries regulators to consider in terms of emerging markets awareness raising is probably the key for the moment if their central banks and supervisors can begin conducting environmental risk analysis by themselves maybe taking couple of industries as an example I think that will send a strong signal to the industry that this is necessary and secondly disclosure is important I think most of the regulators will need to consider requiring disclosure by finance institutions of the exposure to high carbon and polluting assets by requiring such disclosure they will be forced to consider how to quantify the future risk and how to manage these risks well disclosure I think is definitely near and dear to my heart definitive being a data company and disclosure is obviously forming a big part of the data that's being used to drive capital into sustainable investments and I guess my question is about data and I think that there's a growing commentary about data gaps and impact data holes in terms of what it is that investors have access to in order to be able to deploy capital and how does this apply to emerging markets I mean is there also some lessons that we can learn positively about how it is we can use technology sensors geospatial data in order to be able to accelerate the use of data across the world and what's your view the lack of quality environmental data I think is a key bottleneck for green financing many places especially emerging markets now the couple of things we can do one is to improve disclosure requirements in the country with mandatory disclosure requirements for initially large companies and later on for all companies I think will substantially improve the availability and quality of data but it will take some time the second thing is about data sharing between different agencies in China we had experience of connecting the minister of environment with financial authorities which mean that a lot of environmental data for example CO2 emission and other pollutants emissions are collected already by minister of environment and previously they were not shared with the banking authority and now we are building such connections at both central and local level which will make banking much easily assessing the such data in quantifying the environmental and climate risks of loans the third thing is about technology as you said sensors and big data and AI technology should be used there are lots of scenarios we did a report summarizing the application of FinTech in green finance recently it was a piece of work jointly done by my Qinghua center and the Paulson Institute we reviewed 90 something applications already in China and elsewhere I think there are a lot of opportunities for such technology to improve the availability and reduce the cost of their generation and the usage so that to enhance the usability of such data the last thing I like to mention is governments and probably NGOs need to consider setting some sort of platform connecting green finance with green projects which is also you can call a project that resolve the information asymmetry problem a good example in Huzhou which you probably know one of the regional pilot program for green finance in China what they did is the local government set up a E platform which now includes all major green projects information and include all local banks green loan information and asking them to really match within the platform and I heard one story from the local government in Huzhou saying that they matched one green loan with one green project within nine minutes this is the power of internet and the big data great well and what we're finding through our future of sustainable data alliance is as well data needs to be thought about slightly differently going forward often we're speaking about geospatial data or location vapes or mapping data but often that has to be paired with your call for increased disclosures so we don't know where assets are or where companies are doing business we're not able to again trace that back for investors to make actionable decisions so I think this is definitely a journey that we're all on together emerging or mature market speaking of emerging markets and the world we're in at the moment obviously COVID-19 has affected the world and in particular emerging markets have experienced the health crisis and now are looking at how it is that they're going to deal with the economic crisis and I think that there are some really good examples of sustainable investment and deploying capital sustainably as being still a very top priority around the globe what's your view do you feel that as governments and economies start requiring funds for recovery that the positioning of priority of green finance and positioning of priority of sustainability overall is that at risk of moving down the priority scale I think the COVID impact on different countries are quite different for some of the small emerging markets where the fiscal capacity is low and a lot of fiscal stress because revenue came down so much in spending goes up due to the pressure on healthcare and on subsidies for unimproven people I think they have less money to spend on the green projects and that's a negative aspect but in some of the larger economies which was there for example the US, Europe and China fiscal stimulus and monetary stimulus are very strong and a large part of these stimulus package can be used for green and sustainable projects and that's why Europe is leading the way in driving green recovery and China is also very actively discussing various options on how to deploy substantial part of the stimulus money to green projects such as renewables and electric vehicle charging stations so once the fiscal authority allocates a substantial portion of the for example in China the proceeds of special bonds then the banks will follow because the fiscal money can be serving as 30% of equity in a typical project and the other 70% of money need to come from the banks and the bond market and with fiscal and financing jointly working towards green recovery I think it will do a lot in ensuring that carbon reduction and also emission reduction will get achieved substantially during this phase of infrastructure spending and I mean is there an opportunity here I'm always a glass is half full sort of person I mean is there an opportunity for new financial products that are coming after the pandemic in order to support a green recovery things like transition bonds which are starting to take hold or pandemic bonds that have a green element there's quite a bit of COVID bonds already which we discussed in the past few months but the transition bonds are probably more interesting given especially in China the government has just announced the carbon neutrality target by 2060 so a lot of discussions on what to do to convert these high carbon companies into greener companies for example we begin to discuss the province which is a province of very heavy reliance on coal on how to use transition bond to assist the coal related industries to transform themselves and one particular idea is that issue a transition bond user proceeds to buy out a coal-fired power generator to become the owner of the coal power power generator and you can then inject resources for example energy technologies new management teams and convert this company into maybe a solar or wind company within five years so by then three things are achieved the number one emission is stopped earlier then otherwise right and secondly you can avoid the financial impact of a fading coal-fired power generator because if you let it go bust it's going to default on the banking system and we should avoid that and certainly we can avoid the large unemployment due to the failure of the coal company so this is an ideal outcome which we are hoping to achieve but a lot of technical details need to be sorted out in terms of who is going to issue and what kind of yields that we should offer to investors and with a foreign participation could be arranged and so on so forth well it sounds like there's a lot for us to innovate still thank you Dr. Ma you didn't disappoint, learned a lot already over the course of this session and I guess my only regret is that we weren't able to do it in person hopefully that's going to be something we can do soon so lovely to see you thank you very much thanks very much it is an honor to be invited to join the committee of speakers for the Green Horizon Summit ladies and gentlemen we are running out of time average global temperature is currently estimated to be 1.1 degree above pre-industrial times based on existing trends the world could cross the 1.5 threshold within the next two decades and 2 degrees threshold early during the second half of the century however the conclusion from the IPCC is that limiting global warming to 1.5 degree is still now only possible we need nothing short of a global financial transition to put us on track but while the climate finance flows needed to achieve this has been increasing it is not happening rapidly enough on the supply side of finance that is because market risk is misaligned with climate reality we need information to price climate physical transition and legal risk and balance them against the higher upfront capital requirement of green investment and we need pricing mechanisms that internalize the external cost of carbon emissions financiers need financial products to invest in and bankable projects that creates investment opportunities on the demand side of finance is because entrepreneurs face a range of policy institutional and technical barriers to convert investment opportunities into bankable projects even the best wind resources in the world will not make wind energy competitive if fossil fuels are heavily subsidized or if it takes 3 years to an entrepreneur to get an operating license whilst COVID-19 is increasing the needs for green investment to revive economies on low emission climate resilience development pathways it is reducing the public resources available to developing countries the green climate fund is the world's largest dedicated fund financing climate action in developing countries we are working with our partners to remove the supply and demand barriers that are stopping this financial transition in developing countries there is much to be done and we are working to provide the solution we need several things we need to support developing countries in integrating policies climate action and economic policies for climate action and economic recovery to set up a conducive environment for green resilient investment we need to develop new valuation methodologies for climate resilient infrastructure to support asset repricing in global financial markets we need to design new green and climate resilient financial products such as green ABS or resilient bonds for developing countries to access institutional finance we need to make blended finance work particularly for LDCs and SEALs and for adaptation and ecosystem protection where efforts to leverage private investment have so far fallen short as required we need to enhance the capacity of national financial institution to access domestic and international capital markets for green resilient investment we need to create innovative financial instruments and financing structure that can increase access to climate finance in developing countries without increasing their sovereign dates GCF is supporting a portfolio of $30 billion of low emission climate resilient investment in developing countries with close to $6 billion in GCF co-financing GCF co-financing usually takes the form of grant for policy and project development or concessional non-grant instruments to de-risk first of its kind investment and our board meeting this week will consider another $1 billion of GCF co-financing in climate proposal and I hope that the green horizon summit will encourage new initiatives and partnerships and help drive the public and private financial transition to a sustainable and resilient future for all thank you very much for your attention Thank you Yannick and thank you to all the speakers this morning for some very insightful discussions In session 6 we will turn our attention to nature and biodiversity loss already a huge area of concern and the cultural communities are learning to grapple with We'll now have a break do go and visit our sponsors virtual booths and ask them the questions you would like to about the transition We'll begin the next session at 11.30 Greenwich meantime Thank you