Between the year 2015, Paris Agreements within the framework of COP21, a lot more has been discussed about Climate and green finance. Since then, regional initiatives and programs have been put in place to support its development on a global scale. Climate Finance is aimed at supporting the fight against climate change and its harmfulness to environments and people.

These was achieved through the financing of two main types of actions or projects:

Havelet Finance Limited, an administrative trustees to high net worth angel investors offers a 100% funding all related climate and green related projects.

What is Climate Finance?

In accordance with According nation convention on climate Change (UNFCCC), Climate Finance refers to any local, national or transnational financing, regardless of its public, private or alternative source, which aims to support mitigation or adaptation to combat climate change. In other words, it is also a financial activity whose objective is to support the fight against climate change that is harmful to the Earth and People. The importance of developing a precise, common and broad taxonomy relating to climate finance to strengthen the confidence of investors and the various stakeholders in this finance. In this regard, we can mention the taxonomy established by the European Union for Sustainable Finance adopted in June 2020.

Climate Finance; The challenges and objectives

To better mobilize and direct financial resources at all levels towards actions and investments that preserve the climate against harmful, even destructive changes. This supports the achievement of the Paris Agreement target of limiting the average temperature increase to 1.5°C in the 21st century, compared to the pre-revolution industrial period. The main challenge of Climate Finance is to redirect a large part of financial resources towards the financing of investments that preserve our environment and our climate against harmful and irreversible change. This will ultimately lead to a reduction in the emission of greenhouse gases and a reduction in carbon intensity

Collaboration between Substantive stakeholders

Climate Finance requires both collective and global awareness and mobilization of the various parties concerned of all kinds. It goes without saying that this requires the commitment of public authorities and regulators to prioritize the protection of the environment and the climate.

However, public financial resources are insufficient to reverse the trend. Thus, it is essential to also mobilize the private sector and its financial resources to direct them towards all that mitigates the risks on the environment and preserves it. Finally, civil societies and people also play an important role in pushing both public and private operators towards this path, while imposing this on them through a change in behavior in terms of consumption patterns 

Mobilization of Financial Resources

Daily increase in average temperature below 1.5°C needs a long term investment in weakening and construction, the realization of which requires very significant public and private financial resources or bank loan. That being said, the green investments are still low today. The limits of green funds in Europe”, the share of green investments represents only 1.3% of total assets as of June 30, 2021, with an amount of 202 billion euros. In addition, several initiatives and mechanisms to direct more financial funds towards green investments have been developed at the regional level, including in the below:

Green Climate Fund: This fund was created in 2010 as part of the Cancun agreements in Mexico (COP 17). It is a financial vehicle dedicated to developing countries in the global climate approach, as a financial mechanism for the implementation of the United Nations Framework Convention on Climate Change and the Paris Agreements. Since its inception, this fund has been able to raise approximately USD 10 billion to date.

Green sustainable Bonds: For the mobilization of many resources for Climate Finance, it was appropriate to mobilize the financial partners for this activity. It is with this objective that several parties have worked on the development of bond issue manuals/guides in relation to Climate Finance: The United Nations Environment Program Finance Initiative (UNEP FI) is a partnership between UNEP and the global financial sector for the mobilization of the private financial sector in sustainable development.

Regulatory and prudential framework

Positioning more financial resources towards financing projects that preserve the environment and limit negative climate change, it is absolutely important to enact laws and regulations that both encourage and penalize financial institutions by in relation to the subject of climate change. These regulations are also of a protective nature for financial institutions against the financial risks induced by climate change. It is in this sense that several financial sector regulatory and supervisory institutions and bodies have created the Network of Central Banks and Supervisors for Greening the Financial System – NGFS.

This network was created in 2017 by 8 central banks and supervisors during the “One Planet” summit that took place in Paris. Since then, the number of members of this network has evolved to stand today at 105 members and 16 observers.

The objective of this network is to contribute to strengthening the global response required to achieve the objectives of the Paris Agreement and to strengthen the role of the financial system to manage risks and mobilize capital for green and low-emission investments. of carbon in the broader context of environmentally sustainable development. To this end, the Network defines and promotes best practices to be implemented within and outside NGFS members and conducts or commissions analytical work on green finance. Through its 5 working groups, NGFS has developed several reference documents for the development of Climate Finance.

Havelet finance Limited remain a powerful tool in funding a climate related projects around the world. We offer the following;
• Long-term investment loans.
• Project finance (PF) scheme.
• Credit guarantees.
• Investment engineering.
• Investment consulting.
• Financial modeling.
• Project management. etc.

We are also currently structuring a convertible debt and loan financing and other project financing and international loans at of 2% interest repayable annually with no early prepayment penalties.

Website: https://www.havelet-finance.com
Email: credit@havelet-finance.com