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According to a 2015 Climate Policy Initiative report, ‘Global Landscapes of Climate Finance 2015’, in 2014 a little over that amount, US$391 billion, was invested in all low-carbon and climate resilient actions, just a fraction of the overall amount required. It is clear that public finance alone cannot fill the climate finance gap. If countries are serious about meeting the climate goals they have collectively agreed to, developing polices that incentivise and accelerate the flows of private capital into sustainable infrastructure, transport and energy systems must form a critical part of the solution. The promise of a binding Paris agreement combined with well-designed policies can incentivise capital mobilisation and direct the necessary trillions of dollars of private investment towards sustainable and climate-resilient businesses and projects. But while capital markets exist to mobilise large-scale investment, they are traditionally wary of sectors or asset classes they are unfamiliar with or where there exists significant political uncertainty and risk3. The need for clear and investible climate change policy is understood. The ‘Global Investor Statement on Climate Change’ was signed by over 400 investors, accounting for US$24 trillion in assets or roughly the equivalent of a third of global capital markets. Signatories stated that they were ‘acutely aware of the risks climate change presents to our investments’, an acknowledgement that required them to act and to call on governments to do so as well. The Statement set out steps that institutional investors (both asset owners and asset managers) can take to address climate change and called on policymakers to deliver the required political ambition. There have already been a number of promising shifts in the financial landscape signalling a growing momentum around green finance. Six of the largest multilateral development banks (MDBs) pledged to increase their volumes of climate finance in support of the Paris Agreement by as much as a multiple of three. It should also be noted that, in the four years since starting to track climate finance in 2011, the six institutions had already delivered US$100 billion for climate action in developing and emerging economies. On the private side of the financial spectrum, major institutional investors have begun to measure and reduce – to decarbonise - the proportion of their portfolios that are dependent on highly polluting underlying assets. As part of the Portfolio Decarbonisation Coalition, to date, 31 investors have committed a collective US$600 billion of their assets under management for decarbonisation. In developing countries there is a greater urgency still and the cost of inaction is constantly rising. The 2016 UNEP report ‘The Adaptation Gap’ estimates that by 2030 the additional cost of adapting economies and communities in developing countries to the physical impacts of climate change will have increased by a factor of three above current global estimates, and potentially a factor of five by 2050, reaching between US$280 billion and US$500 billion per year. The increased investment needs driven by climate change are challenging globally, but particularly in developing economies, which may suffer from significant barriers to investment such as inadequate rule of law, undeveloped financial systems and weak institutional quality. Through its three-report series, ‘Demystifying Private Climate Finance’, UNEP FI explores the issue around the scarcity of public climate finance and how, through instruments such as the Green Climate Fund (GCF) and the Global Environment Facility (GEF), public funds can be leveraged to ‘crowd-in’ private finance for climate change mitigation and adaptation activities in developing countries.However, for investment of any kind to flourish, the risks need to be disclosed and managed effectively. This applies certainly to climate risk that has the potential to create systemic instability across the financial system. Recognising this, in 2016 the Financial Stability Board, established by the G20 in order to promote international financial stability, set-up the Task Force on Climate-Related Disclosure (TCFD), chaired by Michael Bloomberg. The TCFD’s mandate is to develop recommendations for voluntary climate-related financial disclosures to provide decision-useful information to lenders, “THE PRIORITY NOW IS TO TRANSLATE HIGH-LEVEL CLIMATE POLICY COMMITMENTS INTO FINANCIAL FRAMEWORKS THAT MOVE REAL MONEY ”052 FINANCE AND INVESTMENT