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the british to be here would be among all of you i realise i'm in the very dangerous position
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that i'm the only thing standing between you and munch so i'll try and make it to make it the
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oh maybe not then okay um i will try make it brief uh i
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can make it brief partly because simon uh introduced the subject so well the
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question uh uh the challenge of incorporating
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um nature a natural capital and major
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performance in financial instruments and to be going to a illustrate one of those today
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um i will start but by a very brief statement of the problem all
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around the world in developing countries there is a very serious level of indebtedness
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that didn't didn't there's no need to serve it uh requires a countries to divert funds
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from what otherwise could be an investment in
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climate nature and the covered situation has greatly
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um i increased that indebtedness so that it's now clearly unsustainable and the solution that we
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would like to present for it is say financial instrument that eases countries access to capital
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increase i improves it's a it's a
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indebtedness situation while at the same time advancing
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a nature girls so simon talked about the the the the real problem of of uh
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financial systems not incorporating kept kept a natural capital value not pricing
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it it properly as a result skewing the the the whole economic system
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and the uh in the uh other problem that risk sharing
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the the perception of risk is falsified by the same thing and
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so we believe that that there's a big opportunity for debt
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markets to evolve to meet these needs and this is already happening
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we all know i think that green bonds have exploded being bonds or use of proceeds instrument
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uh and they have gone from something like fifteen a billion dollars
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in twenty thirteen to overthrow the and uh in the last year um
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so so that there's a huge development here but we
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believe that there's a new generation of financial instruments coming
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a a merging already that are uh uh in fact sustainability links barnes their
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their bones that are linked to sustainability outcomes in a way that also assists
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in in countries access to capital and uh as simon mention one trillion uh
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a dollars worth of of sustainability bones we should in twenty twenty one alone
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so what is it we need to do to uh to
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to make this market emerge quickly verses that we need to
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support policy um based action that incentive visors performance so that the performance link
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to the bond uh the capital access is made very explicit we need to do this in
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a way that's that lowers the cost of capital
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for the borrowing countries and supports their economic recovery
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we need to do this in a way that in in dances
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risk sharing so that we're not dealing with increasing numbers of default
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on the part of of countries that are that are crumbling under the
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the weight of their debt and we need to improve uh reese pricing
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so that we align with nature and you can see that some of
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the publications there that indicate that we are already well along the way here
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so i mean mention the the merging bonds in chile the sovereign a bond that they're trying to float
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i'm working on one in in pakistan where in exchange for
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specific nature performance a pup x. thanking get uh access to capital
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in a way that they cannot now it's a heavily indebted country but linking it to this need
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to performance or climb performance gives them an opportunity
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to explore a new markets and and float new instruments
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what we need to do to make this to make this happen and
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and this is the work that we're doing in infinite for but rusty
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the first is to establish a a new facility that will support
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market building and the subsequent issuance it scales so they're patches their
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pilots the things happening we need to bring that knowledge together and
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and and specifically structure it so that we're supporting issuance at scale
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the second is to advance market building through a new facility that creates
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uh the opportunity to gather best practised uh and to support um
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uh the the efforts of the many different countries and organisations that want to get in this
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field we need to uh develop guidance for the market you you probably know that the international
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capital markets a association has issued a guidelines
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or principles versus terribly like barnes we need to
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develop these the into much more specificity so that they're available to those interested in these markets
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it's funny we need to align their market infrastructure we're working with
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credit rating agencies on the role of nature in sovereign credit ratings
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and we're working with the i. m. f. to
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ensure that incorporate nature into their own debt sustainability analysis
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so looking forward we think that there are a wonderful opportunities out there to movies to scale
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among financial centres would need to build the necessary capacity i meant
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governments need to mobile lies uh sources of capital furniture and climate ambitions
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intermediaries including investors investment banks and so on
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to help broker these deals and investors who have
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now a much wider range of opportunities to build major positive and zero uh a net zero
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uh uh investment offerings what we're going to do next uh in closing is too
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uh explore the role of china and as as you know try knows where the key creditor
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countries in the world they're showing signs of of being willing to link uh really found that
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uh for two climate and and and nature priorities we would like to work with them to
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accelerate that we would like to do more in gauging the private sector on how to build
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investor appetite for this kind of thing we need to innovate um
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work on the impact of of a seven credit ratings and to share uh this work we're