Climate change creates two types of potential risks for financial institutions: physical climate risks leading to physical damage to assets, and carbon risks altering the financial viability of a part of the capital stock and business models.
It is widely acknowledged that introducing a price on carbon represents a crucial precondition for filling the current gap in low-carbon investment. However, as this paper argues, carbon pricing in itself may not be sufficient.
Carbon pricing has emerged as a key mechanism to reduce greenhouse gas (GHG) emissions, which means that private and public stakeholders are seeking an informed view of how carbon-related price signals can drive global emissions reductions in line with these goals.
The Black Carbon Finance Study Group (BCFSG), led by the World Bank Group and United Nations Environment Programme’s Finance Initiative with support from the CCAC, investigated ways to scale up financing and investments for black carbon mitigation.
The Partnership on Sustainable, Low Carbon Transport (SLoCaT) in coordination with the Climate Bonds Initiative, and the Institute for Transportation and Development Policy are holding a side event during the High Level Political Forum on Sustainable Development's meeting.
This project is the first Bio-Carbon Fund supported investment in India.