Panthera Goes OECD | 11th Forum on Green Finance and Investment

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Back at the OECD – OCDE for three days as a delegate at the 11th ‘Forum on Green Finance and Investment’, as well as a high-level multi-stakeholder event on financial industry decarbonization.

Dominant theme: how to mobilize private capital to accelerate the essential transformation needed to achieve the SDGs

5 initial takeaways:

1. Groundhog day > despite its 11th edition, the dominant theme remains insufficiently addressed.

2. If it does not work, make it bigger > With the channel for mobilising private capital being obstructed, the urgency intensifies, and the required capital to achieve the SDGs by 2030 also rises. Now, the discussions revolve around scaling billions into trillions, while continually appealing for increased coordination, alignment, and monitoring. That’s not a strategy, rather a lack thereof.

3. The development finance community remains largely fragmented and uncoordinated.

4. The multilateral community of policymakers, policy shapers, and regulators is still largely talking about front offices (the central decision point for private capital deployment) rather than engaging directly with them. Consequently, even promising initiatives like the TPT framework for transition plans end up as compliance standards (under the ISSB mandate) for middle and back offices, instead of incentivising front offices to generate greater profits by integrating sustainability factors.

5. Thus, the fundamental misunderstanding about front offices persists: they do not require more rules for risk and compliance management, but rather clarity on how to incorporate and price sustainability factors into their opportunity management.

There’s plenty of work ahead.