Private sector could save the planet: Henry Paulson
Private financing could save the planet, according to former US treasury secretary Henry Paulson, who claims in the New York Times that we can unlock the $90tn which the United Nations predicts is needed for green investment over the next 15 years by incentivising the private sector to buy into it. There is a global abundance of private capital and to unlock this, governments need to create conditions that encourage private investment in clean technologies and sustainable growth, says Paulson. A good sign is that the global green bond market is rocketing - to $41.8bn in 2015 from $11bn in 2013 - but the challenge is to build on these successes and ensure green finance mechanisms are adopted globally.

SAVING our planet from the worst effects of climate change won’t be cheap. A new report from the United Nations says that the world will need to mobilize $90 trillion in public and private capital over the next 15 years.

As a point of comparison, global gross domestic product in 2015 was $73 trillion. But there is no question that the world needs to ramp up its transition to a low-carbon, environmentally sustainable and resilient economy, and to do so rapidly. The question is, how do we pay for it, given the limited availability of government funding, particularly in developing countries?

The answer: private financing. The good news is that there is a global abundance of private capital. To unlock these riches, governments must create conditions that encourage private investment in clean technologies and sustainable development. With smart, well-designed and coordinated policies, financing models and instruments like bonds and incentive programs, countries have the potential to solve some of the planet’s most pressing environmental challenges while still maintaining economic growth.

That is why it is essential for world leaders meeting in New York this week for Climate Week to stay focused on building an international consensus around “green finance.”