Past Event

Designing Better Green Finance: Insights for the Next Generation of Sustainable Investment

Climate finance is essential for dealing with global warming, but effectively scaling up investments requires understanding how financial markets interact with these regulations and addressing barriers like greenwashing and misaligned incentives.

Recording: Designing Better Green Finance: Insights for the Next Generation of Sustainable Investment

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With only 24% of greenhouse gases subject to a price and net carbon pricing of only $4 per ton of CO2, the world is quickly depleting the carbon budget needed to limit global warming to 1.5 degrees Celsius. Climate finance is essential for achieving the Paris Agreement's goals, but effectively scaling up investments requires understanding how financial markets interact with these regulations and addressing barriers like greenwashing and misaligned incentives.

In this Policy Research Talk, Federica Zeni will highlight new research insights that can help global stakeholders design better regulatory and financial mechanisms to reduce carbon emissions and promote sustainable investments. Recent literature tackles three critical questions around green finance:

1.    Carbon-contingent financing like sustainability-linked bonds can potentially serve as a substitute for carbon taxes—but may do so at the cost of reducing political support for carbon taxes. How can governments and other stakeholders manage this trade-off?

2.    Global banks are major players in many low- and middle-income countries. How do they respond when host countries increase their commitment to climate policies?

3.    What factors are driving the growth of sustainability-linked debt, a relatively new class of green debt instruments that first emerged in 2018 alongside more established instruments like green bonds?

In answering these questions, Zeni will also point to ways that policy makers and regulators can better address the complex trade-offs involved in designing more effective green finance.   

Resources:

DATE: November 26, 2024

TIME: 12:30 - 2:00PM ET

LOCATION: MC Building (MC 4-800)

CONTACT: Michelle Chester

mchester@worldbank.org

SPEAKERS

FedericaZenir780

Federica Zeni

Economist, Development Research Group

Federica Zeni is an Economist in the Finance and Private Sector Development Team of the World Bank's Development Research Group. Her research interests include corporate finance, sustainable finance, and financial economics. Prior to joining the Bank she worked as a researcher at the Bank of Italy and as a quantitative analyst at British Petroleum. She holds a B.A. and a M.A. in Mathematical Engineering from University of Rome Tor Vergata and Politecnico di Milano in Italy, a M.A. in Quantitative Finance from University Pierre et Marie Curie in France, and a Ph.D. in Finance from Imperial College London. 

DISCUSSANT

Olivier Mahul

Olivier Mahul

Global Manager, Climate Finance Mobilization

Olivier Mahul is the Global Manager for Climate Finance Mobilization. Prior to his current role, he was Practice Manager of the Crisis and Disaster Risk Finance Unit, where he led the Disaster Risk Financing and Insurance Program, a joint program between the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) and supported by donor partners. Since joining the World Bank in 2003, Olivier has been involved in developing disaster risk financing and insurance solutions in more than 40 countries including Colombia, Costa Rica, Vietnam, Indonesia, Mongolia, India, Mexico, Philippines, etc. Olivier holds a Ph.D. in Economics from Toulouse School of Economics and post-doctorates from Wharton Business School and University of California at Berkeley

CHAIR

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Deon Filmer

Director, Development Research Group

Deon Filmer is Director of the Development Research Group at the World Bank. He has previously served as Acting Research Manager in the Research Group, Co-Director of the World Development Report 2018: Learning to Realize Education’s Promise, and Lead Economist in the Human Development department of the Africa Region of the World Bank. He works on issues of human capital and skills, service delivery, and the impact of policies and programs to improve human development outcomes—with research spanning the areas of education, health, social protection, and poverty and inequality. He has published widely in refereed journals, including studies of the impact of demand-side programs on schooling and learning; the roles of poverty, gender, orphanhood, and disability in explaining education inequalities; and the determinants of effective service delivery.

The monthly Policy Research Talks showcase the latest findings of the World Bank’s research department, challenge and contribute to the institution’s intellectual climate, and re-examine conventional wisdom in current development theories and practice. These talks facilitate a dialogue between researchers and operational staff and inform World Bank operations both globally and within partner countries. Read More »

Date: November 26, 2024

Time: 12:30 PM - 02:00 PM ET

Location: Washington, DC and Online