Identifying Climate-Smart Finance for Decision-makers at all levels
The COP22 Presidency joins Citizens’ Climate Education and the Geoversiv Foundation to introduce Resilience Intel: a first-of-its-kind Climate-Smart Finance Aggregator, on the Finance Day at COP23.
The Climate-Smart Finance Aggregator will bring together a coalition of technical, political and financial institution partners to establish a common standard for basic assessment of the climate positive, neutral or negative value of any given dollar of investment, in any sector.
- From the start: add to the aggregate value flowing to climate-related priorities;
- Next stage: climate intelligence grading applicable to any kind of finance, intended to integrate many different climate value and resilience ratings methodologies;
- Building on experience: roadmaps for upgrading the climate intelligence of investments, budgets, institutions of many kinds.
- Ultimately: empower innovators in finance to leverage new kinds of data to show the competitive resilience value of specific investment choices.
The Aggregator will use a light-touch analysis to parse any investment or spending into good / bad / neutral and then add up all of the good, to identify hidden climate-action money across the whole economy.
Any given dollar can be graded as one of the following:
Investors, entrepreneurs and decision-makers, at all levels, everywhere, need actionable insights to compete in a new economy that values climate solvency as a basic right and a structural principle for the effective operation of legal and economic systems.
- A resilience deficit is an erosion of sovereignty–for individuals, for enterprise, and for the state in its obligation to define and uphold the rule of law.
- Investments that carry a resilience deficit will be disfavored by the wider day-to-day market for finance, globally.
- Because investment in climate-negative finance degrades value elsewhere, it undermines everyone’s leverage for making smart, high-return investments.
- While some speculators will seek to capitalize on volatility, the wider market interest to marginalize such investments will outweigh the value of any such risk-taking.
The ability to perform while generating zero external harm, and to cooperate sustainably with partners at all levels, will be a higher priority than the state-funded market distortion that dominated the old industrial economy.
As the transition to a climate-resilient world economy speeds ahead, every actor, at every level, can look to a future in which one’s own transition trajectory is either optimal or suboptimal. The optimal transition trajectory for most actors remains fairly opaque or elusive, due to the lack of visibility of the climate-smart qualification of any given dollar of planned investment.
The CSFA will help to resolve this problem by bringing the climate-smart qualification of any given dollar of planned investment into view–drawing connections to the climate intelligence of related investments, goods, services, and infrastructure.
Resilience Intel input to the Talanoa Dialogue
April 2, 2018
The Resilience Intel coordinating team, in consultation with a network of partners and practitioners, submitted a formal input to the Spring 2018 round of the Talanoa Dialogue Preparatory Phase. That document addressed the questions Where do we want to go? and How do we get there? by tracing a 20-year vision for shifting all finance toward climate-smart priorities.
The Moroccan Capital Markets Authority, in support of the Marrakech Pledge on Greening Capital Markets in Africa, became the first member-state entity to sign on in support of the 2038 timeline.
- The 100% climate-smart finance by 2038 Talanoa Dialogue vision can be found at ResilienceIntel.org/ambition
The Path to 100% Climate-Smart Finance
April 30, 2018
On the first day of the SB48 mid-year UN climate negotiations, Citizens’ Climate Education, the International Center for Dialogue and Peacebuilding, and the Geoversiv Foundation, as partners in the Acceleration Dialogues, released The Path to 100% Climate-Smart Finance — a multistakeholder strategy brief for the building of Resilience Intel — the first all-systems climate-smart finance information service.
The report details climate-related external returns on investment, the unique use-case opportunity of finance for carbon-rich soil ecology, distributed ledgers and connecting to rural and underbanked communities, as well as the ongoing effort to shift capital markets toward more sustainable financial imperatives and priorities. These insights will accelerate the development of the Resilience Intel system.
The Climate-Smart Finance Aggregator (CSFA) is being built through a collaboration between the COP22 Presidency (and its pioneering work on Adaptation Metrics), Citizens’ Climate Education, the Geoversiv Foundation, the International Center for Dialogue and Peacebuilding, the Climate Action Peer Exchange (CAPE) and supportive ministries, non-governmental organizations, and practitioners.
It emerges from an ongoing series of diplomatic dialogues — Accelerating Progress, Advancing Innovation.