Private capital as a force to limit climate change

​PGGM, together with the Danish pension administrator PKA, appeals on governments to critically assess policies and regulation that obstruct investments in green growth. In a joint position paper PKA and PGGM present four recommendations to policy makers on how they could respond to climate change.

Position paper

​Together with PKA, we published a joint paper that describes our ambitions and needs. In order to meet our climate investment ambitions and those of our clients, we need policies that are reliable and predictable. Also, undesirable effects of regulation that impede investment in sustainable growth should be critically assessed.  We have suggested a number of ways investors and policy makers could respond to climate change:

  • Innovative de-risking models based on blending public and private finance could help overcome the constraints that climate related investments in developing countries face: high political and financial risks.
  • We support mechanisms that put a price on carbon, as they are best at shifting capital and knowledge towards the most efficient solutions.
  • Policymakers should increasingly support and explore the opportunities within energy efficiency in order to drive innovation, unlock private capital and mitigate risk of energy price volatility.
  • Closer cooperation between public and private parties aiming at creating a stable investment environment is necessary to boost impact investing.
We believe that together we can limit climate change, which is now more urgent than ever.

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