Climate Policy Initiative

For The Advisory Finance Group

  • Amount
    $1,000,000
  • Program
  • Date Awarded
    11/5/2018
  • Term
    24 Months
  • Type of Support
    General 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
Address
235 Montgomery St Fl 13
San Francisco, CA 94104
Grants to this Grantee
for the Climate Finance Program  
The overarching goal of the Climate Policy Initiative’s Climate Finance Program is to ensure that policy and investment decision makers have the knowledge and tools to address climate change while achieving sustainable development goals. The program’s strategy is organized around three work streams: (a) to provide needed information on investment flows and investors, (b) to apply in-depth analysis to guide decision makers in their efforts to accelerate the effective use of public and private capital, and (c) develop and scale transformative financial solutions for climate mitigation.
for scaling innovative climate finance in China  
Drawing on the learnings and successes of Climate Policy Initiative’s climate finance program, including the Global Landscape of Climate Finance and the Global Innovation Lab for Climate Finance, the Initiative proposes to catalyze the massive opportunity for climate finance in China by building an analytical foundation for climate investment there and identifying concrete opportunities for Chinese financial institutions to scale up low-carbon, climate resilient investment.
for the Energy Finance Program  
This grant will support Climate Policy Initiative’s Energy Finance Program in meeting its three goals: (a) the development and propagation of models, tools, and processes to identify and manage climate transition risk; (b) encouraging energy market reform around carbon-free resources; and (c), using finance as a catalyst to implement low-carbon solutions. The Initiative will build on earlier work, on both transition risk and market reform, to identify which types of investors would be encouraged to make carbon-reducing investments; and then research new financial instruments, portfolio designs, or hedging products that could help reduce the risk and lower the financing cost of low-carbon solutions.

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