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(Bloomberg) — Banks need more backing from the public sector to manage risks from climate-related projects while such contracts should provide returns, said a panel of market participants.
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(Bloomberg) — Banks need more backing from the public sector to manage risks from climate-related projects while such contracts should provide returns, said a panel of market participants.
Article content
Leaders from Standard Chartered, the World Bank’s International Finance Corporation and Indonesia’s state power company spoke at a Sunday panel on the sidelines of the Group of 20 finance chiefs meeting in Bali. Here’s what they said:
Bill Winters, chief executive officer of Standard Chartered:
- “Our shareholders expect us to take ownership on climate change, but they’re not being very specific,” with the same true of the bank’s consumers
- Banks need a bit more public-sector backing to mitigate the risk of climate-related construction projects such as through bolstered insurance mechanisms, said Winters. Multilateral development banks tend to have the same level of risk tolerance as private banks, which is “not helpful”
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Darmawan Prasodjo, president director of PT Perusahaan Listrik Negara:
- Indonesia needs 400 more gigawatt electricity capacity and around $500 billion in investment through 2060
- China provides an example for how Southeast Asia’s largest economy can transition to renewable energy while taking into account the growing electricity need
- Renewable energy project contracts need to be more fair in showing concrete risk and ensuring a positive rate of return
Vivek Pathak, director of climate business at the International Finance Corporation:
- Small and medium-sized enterprises that make up the vast majority of businesses in developing economies deserve more attention and technical guidance on climate finance issues
- If he had “one wish” on this issue, it would be that efforts refocus on “how do we channel domestic pension money into climate, how do we channel domestic savings into climate” via supporting those SMEs
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Image and article originally from financialpost.com. Read the original article here.