Climate Investing Track

The Climate Investing Track seeks to mobilize capital toward investments that mitigate climate change. By engaging investors around targeted impact objectives and sectors, and working to build fit-for-purpose investment products, the track aims to support a low-carbon transition, help to prevent future emissions, and contribute to the sequestration of existing atmospheric carbon.

Overview

Addressing climate change will require massive flows of capital toward sustainable and impact investments. While estimates of capital required vary, consensus is that several trillion dollars a year will be necessary to prevent exceeding the 2O Celsius temperature increase laid out in the Paris Agreement. To contribute to this shared outcome, the GIIN has launched a Climate Investing Track to support its members in allocating significant capital towards investments that actively mitigate carbon emissions. Given the breadth of this topic, and the depth of expertise required for each investment thesis, the Climate Investing Track is organized by themes, which allows smaller groups of GIIN members to convene around a given investment strategy. The Track will serve as a testing ground for innovative financial instruments, and as a knowledge hub for newcomers to climate investing to better understand products and impact measurement strategies.

Clean Energy Access – Key Objectives and Activities

Core to ensuring we do not exceed the 2O Celsius temperature increase in the next century is the prevention of future emissions as well as the reduction of current emissions levels. Clean energy access—the provision of clean energy to those living in energy poverty or without reliable access to healthy energy sources—still elude billions of individuals who are living in energy poverty. To provide adequate sustainable energy to all, larger, fit-for-purpose investment products are needed. To this end, the GIIN’s Clean Energy Access activities focus on highlighting effective and large-scale structures through a series of webinars, and test emerging solutions with diverse asset owners via product testing workshops.

Sustainable Forestry – Key Objectives and Activities

Impact Investments in sustainable forestry have the potential to conserve critical ecosystems, prevent deforestation, sequester carbon, and generate economic activity for local communities. Building on the work of the GIIN and Cambridge Associates Financial Performance of Real Assets Study—wherein impact investments in sustainable timber were shown to compare favorably to the comparative universe—the GIIN’s Research and Membership Teams are working closely with members to reduce information asymmetry between asset owners and managers of sustainable forestry products. This includes developing a standardized due diligence questionnaire, case studies, and a one-time database of fund structures.

Potential Future Themes

The GIIN is exploring additional work under the Climate Investing Track, including the following potential themes:

  • Food and Agriculture – A set of product testing workshops focused on ensuring food security in emerging markets, organized by impact theses, and that invite asset owners and fund managers to co-create more effective, fit-for-purpose products.

  • Resilient Infrastructure – A working group with the aim of mapping the market for resilient infrastructure investments and educating asset owners on available opportunities to meet their investment parameters.

For more information on the Climate Investing Track, please contact the Membership Team at networkmembership@thegiin.org.

 

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