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"The transition to greener industries will not function with disruptive cuts alone and it is unlikely for whole industries to be eradicated overnight." bernhard schiessl. (foto: Mari Aftret mørtvedt)

"The transition to greener industries will not function with disruptive cuts alone and it is unlikely for whole industries to be eradicated overnight." bernhard schiessl. (foto: Mari Aftret mørtvedt)

I wish for 2019 to be a year where we find a common language on green finance

Klima - Et magasin om klimaforskning fra CICERO

Publisert 20.12.2018

I hope that 2019 will be a year where green investment streams are further increased and that we at CICERO contribute to a common understanding to reveal what’s needed to move forward, including capacity building and long-term thinking on climate risks.

The transition to greener industries will not function with disruptive cuts alone and it is unlikely for whole industries to be eradicated overnight.

I am an Advisor in Climate Finance with an interdisciplinary background in physics, international affairs, sustainable finance, analysis and advocacy.

I believe that the solution to the climate crisis lies in the world’s financial flows.

I believe that the solution to the climate crisis lies in the world’s financial flows. The transition to greener industries will not function with disruptive cuts alone and it is unlikely that whole industries are eradicated overnight. We need to find ways to transition financial flows from brown to green, and we need all the players to be part of the solution. My wish is that we build a common language on green finance that helps bring all the players together to work collaboratively towards a shared goal. We all share the same interest of minimizing climate risks. This makes collaborating vital – otherwise we might face severe headwinds on green investment initiatives.

If a country like China steps up their global leadership on green investments strategies like “Green Belt and Road”, this will have an extensive outreach and can function as the tip of the scale to achieve the well-below 2°C target.

In particular, I wish for 2019 to see more common language on green finance within Asia; With China’s “Belt and Road Initiative” we have a big scale tool to bolster green finance in the Asian region and beyond. This initiative is one of the largest infrastructure projects in history and it might, by different accounts, include between 57 and 72 countries. If a country like China steps up their global leadership on green investments strategies like “Green Belt and Road”, this will have an extensive outreach and can function as the tip of the scale to achieve the well-below 2°C target.

CICERO developed an independent, research-based methodology that helps investors define “green” in the green bond market using three shades of green.

At CICERO, I work with the Climate Finance team providing second opinions on green bond frameworks. CICERO developed an independent, research-based methodology that helps investors define “green” in the green bond market using three shades of green: The Dark Green shade is assigned to green bond frameworks we consider part of a 2050 solution, such as wind or solar power. Medium Green incorporates bridging technologies like hybrid buses. Light Green projects are urgently needed as they include necessary emission cuts for today’s industries where no viable alternative yet exists, such as shipping.

Without a common understanding, a transition to a low-carbon society is virtually impossible.

These shades of green contribute to a common language on green finance. Without a common understanding, a transition to a low-carbon society is virtually impossible. More “light green” instead of “no green” is needed and I hope that our work will encourage necessary capacity building among financial actors, increased green investment streams and long-term thinking on climate risks.