Climate Policy Initiative
For The Advisory Finance Group
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Amount$1,000,000
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Program
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Date Awarded11/5/2018
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Term24.0 Months
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Type of SupportGeneral Support/Program
Overview
The Advisory Finance Group (AFG) is a project to provide technical support to a group of central banks, finance ministers, and development finance institutions to integrate climate concerns into fiscal and monetary policy. AFG presupposes that most climate risk will eventually be borne by sovereign governments. Traditional climate advocacy has sought to ameliorate this risk through fiscal (carbon pricing, etc.) and regulatory means. The continuing failure of nation states to enact fiscal climate solutions (to say nothing of the gridlock around fiscal solutions to the 2008 financial crisis) has lead the AFG to propose the development of central bank/monetary-driven risk-based approaches. The theory posits that quantifying and assigning risks to public and large private asset classes would be analogous to carbon pricing mechanisms. In addition, policy success might be easier to achieve at the central bank level rather than through legislative bodies. One key element would be the creation of new AI tools to replace the equilibrium-based tools currently in use to quantify and assign risk.
About the Grantee
Grantee Website
climatepolicyinitiative.org
Address
575 Market Streer, Suite 514, San Francisco, CA, 94105-2854, United States
Grants to this Grantee
for general operating support
The Climate Policy Initiative is an analysis and advisory organization with deep expertise in finance and policy. Its mission is to help governments, businesses, and financial institutions drive economic growth, while addressing climate change. The initiative works to accelerate climate finance deployment, recognizing that, while the world has begun to mobilize new climate finance, it has not yet achieved the scale or the rate needed. (Substrategy: Climate Finance )
for the Net Zero Finance Tracker
Climate Policy Initiative helps governments, businesses, and financial institutions drive economic growth while addressing climate change. The organization will expand the scope and reach of its existing data platform, which provides the most comprehensive assessment of global financial institutions’ progress toward net-zero. This will drive greater transparency and accountability to support the decarbonization of the financial sector. The data platform will capture the progress made over the past year and help frame the discussion ahead of COP29, which is specifically focused on finance issues. (Substrategy: Finance)
for general operating support
The Climate Policy Initiative is an analysis and advisory organization with expertise in finance and policy, seeking to help governments, business, and financial institutions drive economic growth, while addressing climate change. This general support grant will support the initiative’s work across the range of issues on which they work, including evaluating the landscape of policy and investment trends, assessing the effectiveness of climate finance policy, and developing transformative solutions for climate finance. (Substrategy: Climate Finance)
