CCXG global forum, September 2024, Mathilde Mesnard

Presentation from the CCXG global forum

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Scaling up private finance for climate action
Opportunities for the NCQG to provide signals to the private sector
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Mathilde Mesnard
Deputy Director, OECD Environment Directorate
Based on “The New Collective Quantified Goal on Climate Finance –Key Issues Note” by C. Falduto, R. Jachnik, C. Watson
Hybrid CCXG Global Forum | 17-18 September 2024

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Navigating the complexity of scaling up private finance for
climate action

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Key levers that the NCQG could address towards scaled up
private finance for climate action
e.g. grants, debt,
equity, guarantees
e.g. E.g. Basel III, ESG
standards, etc.
e.g. climate, fiscal, and
investment policies
Source: adapted from Public Interventions and Private
Climate Finance Flows: Empirical Evidence from
Renewable Energy Financing | OECD iLibrary

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Incentives for enhanced public finance interventions
→Public finance interventions (e.g., loans, guarantees) are crucial for mobilising private
finance but remain underutilised. Unlocking their full potential is key.
Options for the NCQG could include:
Consider setting targets for the share of public finance dedicated to blended finance
approaches, aimed at leveraging private investments.
Encourage providers to establish internal targets for mobilising private finance, aligned
with broader climate goals.
Call on Parties to enhance MDB mandates for mobilisation and promote greater use of
donor-backed guarantees to de-risk private participation.

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Incentives for enhanced enabling environments
→Scaling up private finance depends on supportive policies, regulatory frameworks, and
enabling environments that foster investment.
Options for the NCQG could include:
Call on Parties to enhance domestic environments by adopting regulatory measures that
incentivise private sector investment (e.g., removing barriers, offering incentives).
Encourage provider Parties to scale up capacity-building support to help developing
countries strengthen environments for private finance mobilisation.

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Considerations of the impacts of financial regulatory and
prudential frameworks
→Financial policies (e.g., Basel III) designed for global stability can limit developing
countries’ access to finance, hindering their ability to attract capital for climate action.
Options for the NCQG could include:
Recognise the challenges developing countries face in accessing capital under current
regulatory frameworks.
Call on the Financial Stability Board to assess the negative impacts of existing frameworks
on climate finance.
Encourage Parties to take action within their jurisdictions to mitigate these unintended
consequences.
Support parallel processes (e.g., G20, Basel Committee) to integrate climate-related
financial risks into regulatory frameworks.

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THANK YOU!
http://oe.cd/ccxg
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