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CGFI Investor Network
  • 23 Mar 2021

Achieving the Sustainable Development Goals (SDGs) and the objectives of the Paris Agreement will require substantial public and private investment. The OECD estimates that USD 6.9 trillion of annual investment in infrastructure is needed until 2030 to meet climate and development goals globally. The lion’s share of this investment, around USD 4 trillion, is required in emerging and developing economies. Despite ongoing efforts to scale-up investment in sustainable infrastructure, a global annual gap of USD 2.5-3 trillion remains.

Mobilising the private capital needed to help bridge this gap will require targeted, co-operative efforts between the public and private sectors. The OECD Centre on Green Finance and Investment (CGFI) seeks to address this gap and recognises the key role of investors. A CGFI Investor Network has been established to bring together institutional investors, private equity funds, commercial banks, project developers and other investors to support global policy efforts and address market challenges in green and sustainable finance and investment.

Investors in the Network are kept abreast of the work and events of the Centre and are invited to share their perspectives and expertise with policymakers. They also have opportunities to inform OECD analysis and programmes, and identify areas for collaboration with other investors and public sector actors. A key opportunity for investor engagement will be through the OECD’s newly launched Clean Energy Finance and Investment Mobilisation (CEFIM) Programme, which is working with five emerging economies, including Indonesia, Viet Nam, India and Colombia to strengthen clean energy policies and unlock investment in renewables and energy efficiency.

Investment trusts are an alternative to buying shares directly. These allow investors to pool their funds together to buy shares in companies usually listed on a stock exchange. These pooled investments are called investment trusts and are usually managed by a fund manager. There are specific investment trusts that only invest in renewable energy or environmental companies. There are also ethical investment trusts, which will invest money with firms that work for positive social outcomes to support the environment. You can find out more in our guide about how ethical investment trusts work.

Investors in the Network contribute to the global agenda in diverse ways through the Centre, including:

  • Country-level policy design
  • Investment facilitation
  • Policy dialogues

The CGFI Investor Network supports the Centre’s four pillars of work:

  • Strategies, policies and actions for investment in the low-carbon transition
  • Resilience and adaptation
  • Financing for green investment
  • Tracking progress in green finance and investment

Source: Center on Green Finance and Investment (OECD)