Enhanced Mitigation Actions by Utilizing Green Bonds Presentation title Enhanced Mitigation Actions by Utilizing Green Bonds Asia Pacific Carbon Forum Jeju, 7 September 2016 Massamba Thioye SDM programme

Functions for enhanced climate actions Presentation title Considerable green investment, specially in infrastructure is required to achieve the objective of the PA The International Energy Agency estimates the needed investment to be around one trillion US $ per year in addition to the current level of investment for a green transformation that limit the temperature increase below 2°C. This considerable amount of financial resources cannot be provided by /mobilized through the public sector. The 100 billion per year agreed by Parties are far from being enough Private investors, especially institutional investors are to be involved. Fortunately, they have the capability to feel the gap Indeed, to achieve the objective of the PA, ambition is expected to be raised and these functions for enhanced climate actions are expected to be performed: Host government and donor countries, through multilateral sources, bilateral sources and domestic sources are expected to provide the needed public finance to build readiness and leverage private sector finances from the capital market. The financial institution under the UNFCCC are expected to play a key role on the mobilization of public finance from multilateral sources. The MDBs are expected to play a key role on the leverage of private finance Policy makers are expected to translate the NDCs into climate change policies and regulations and a deal flow of investible projects. They are also expected to implement financial regulatory framework that will promote the development of their domestic financial market Local project developers are expected to develop low carbon projects and programmes. Institutional investors are expected to divest from carbon intensive activities and invest in low carbon and resilient activities To make these expectations become reality, a system for evaluation and recognition of mitigation outcomes has to be in place. Indeed, three key actors expects to have a credible system for evaluation and recognition of mitigation outcomes to be able to mobilize their full potential: Policy makers to assess the effectiveness of their policies Donor countries to report back to their tax payers on the impact of their action Institutional investors to address the risk of being accused of green washing and manage their corporate reputation With this background in mind, how best the available public finance could be used to leverage private finance from the capital market? Institutional investors want to address the environmental risk of being accused of green washing The donor countries as well as domestic public sector have to report back to their tax payer

Presentation title Thank You