G20 communique: Important step towards derisking renewable investment for developing countries
PRESS RELEASE
Scaling up renewable energy in developing countries is mission-critical for addressing the climate emergency and providing clean, safe energy for hundreds of millions who need it.
A major block has been the mispricing of the cost of capital making prospective renewable projects unprofitable. Stamp Out Poverty has been working with leading finance economists, such as Avinash Persaud, supporting the development of innovative financing structures to tackle this. National government platforms of developing countries, supported by multilateral development banks and others can create a clear, transparent mechanism for attracting international private investment, hedging the cost of capital risks, and ensuring investment benefits the projects and communities most in need.
In a landmark move for the initiative, the G20 has recognised the importance of this approach and agreed that ‘relevant institutions should work to ensure that risks are well captured, including by exploring to increase the transparency of credit ratings and country risk assessments.’ It further supported ‘the voluntary building-up of country platforms as one of the possible instruments to boost sustainable finance in emerging markets and developing economies. Platforms that are country-led, flexible, and well adapted to national circumstances work as efficient instruments to mobilize both public and private capital to finance projects and programs in developing countries, helping match mitigation, adaptation, and resilience building challenges with concrete flows of resources for just transitions.
Avinash Persaud, international finance expert and an architect of the Bridgetown Initiative said:
“Reducing the cost of capital for developing countries has been recognised as a priority at the G20 Summit to address the climate crisis on a global scale. By unblocking climate finance and making it more affordable for these nations, we empower them to supercharge renewable energy investments and build resilience—an urgent necessity in today’s climate landscape.
The G20 has a key role to play in supporting the streamlining of climate funds, managing foreign exchange risk, and enhancing transparency. These are critical steps not only for effective climate action but also for tackling global hunger and environmental degradation.”
David Hillman, Director of Stamp Out Poverty, said:
“This welcome development sets the scene for a step change in the scale of investment in tried and tested renewable energy production, such as wind and solar, in developing countries. After encouraging and supporting this area of work over the last two years, we are delighted to see it being supported at the G20 Summit.”
NOTES TO EDITORS
1. The G20 Communique:
45. Underlining the importance of progress towards making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development, we welcome the initiative taken by Brazil’s G20 Presidency to establish the Task Force on a Global Mobilization against Climate Change (TF-CLIMA), bringing together the Sherpa and Finance tracks, while helping further mainstream climate change into the global financial, economic and development agendas. Building on TF-CLIMA, we will cooperate and join efforts to identify and address structural barriers to foster private L capital flows for climate action, particularly for developing countries. We recognize that relevant institutions should work to ensure that risks are well captured, including by exploring to increase the transparency of credit ratings and country risk assessments.
46. We will accelerate the reform of the international financial architecture so that it can meet the urgent challenge of sustainable development, climate change and efforts to eradicate poverty. We support the voluntary building-up of country platforms as one of the possible instruments to boost sustainable finance in emerging markets and developing economies. Platforms that are country-led, flexible, and well adapted to national circumstances work as efficient instruments to mobilize both public and private capital to finance projects and programs in developing countries, helping match mitigation, adaptation, and resilience building challenges with concrete flows of resources for just transitions.
https://www.gov.br/planalto/pt-br/media/18-11-2024-declaracao-de-lideres-g20.pdf
2. Avinash Persaud is special advisor on climate change to the President of the Inter-American Development Bank (IDB) and was a key figure in the Loss and Damage Fund negotiations.
3. Stamp Out Poverty
Stamp Out Poverty is an NGO with a long record of policy development in innovative finance solutions bringing together leading economists and thinkers with civil society to develop and champion powerful, practical ideas to raise the money needed to end extreme poverty and fight climate change. Ideas that bring accountability to the industries behind these problems.
For further information and comment contact:
David Hillman, Director, Stamp Out Poverty: dhillman@stampoutpoverty.org
The Climate Damages Tax: a guide to what it is and how it works (2024)
There is a price for heating up the planet. Currently it is borne to a vast extent by the populations affected by ever-intensifying climate impacts. Although their products are the root cause of the crisis, to date, the fossil fuel producers have gotten away with not paying. The Climate Damages Tax (CDT) proposal, underpinned by the Polluter Pays principle, makes the case that it is high time for the producers to bear a substantial proportion of the costs for losses and damages that result from the burning of fossil fuels. The CDT is a fee on the extraction of each tonne of coal, barrel of oil, or cubic meter of gas. The report proposes that the substantial additional revenue raised is allocated in two ways. Firstly, to boost finance for the newly set up Loss & Damage Fund allowing richest, most polluting, countries to make their contributions without unfairly costing their citizens. Secondly, it will generate a significant domestic dividend that can be channelled to climate action nationally, helping to pay for the necessary support for workers and communities to transition away from fossil fuels, towards green energy and transport. The report sets out how the CDT would work and its considerable revenue potential.
EXECUTIVE SUMMARY: Executive Summary – The Climate Damages Tax: A guide to what it is and how it works (2024)
REPORT: The Climate Damages Tax: A guide to what it is and how it works (2024)
Published 09/08/19 3:08 pm
We're hiring!
Could you be our next Robin?
Hi all,
We at Stamp Out Poverty are hiring for a Digital Campaigns and Communications Officer to help us get our message out there!
If you think that could be you, please send your CV and a cover letter to office@robinhoodtax.org.uk by 23:59 on Monday 26th August.
Please ensure that your cover letter addresses the points raised in the Person Specification.
When applying, please start your email subject ‘Application for DC&CO – <your name>’
Find out more >>> Job Description
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Job Title: Digital Campaigns and Communications Officer
Organisation: Stamp Out Poverty
Address: N1, London
Salary: £27,000
Contract: Full-Time
Closing Date: 1st September at 23:59
Interview Date: Friday 6 September
Start Date: ASAP
The role
The Digital Campaigns and Communications Officer will have at least two years experience in the digital aspects of the post. The post holder will contribute to the design of campaign strategy and tactics, coordinate with allies, and implement all aspects of campaigns while working collaboratively with a top-notch team. The post holder will be responsible for supporter engagement, the organisation’s online and offline presence and feeding into strategy.
We are looking for someone with excellent communication and interpersonal skills, with a proven ability to lead projects and manage competing priorities under pressure. You will have good knowledge and experience of digital communications techniques and experience of delivering online and offline advocacy campaigns. This is a challenging and varied role, ideal for someone with a passion for social justice.
Who we are
Stamp Out Poverty (SOP) campaigns for smart solutions to big problems. We are best-known campaign for the Robin Hood Tax (RHT) Campaign, where we call for an extra taxation of the financial sector, which could raise billions to fight poverty and climate change at home and abroad. It is a campaign with fairness at its heart that looks to turn the global economic crisis into an opportunity for the world. It’s a fast paced and popular campaign combining longer-term proactive work with reactive responses to opportunities that arise.
We also help coordinate the international Change Finance coalition, demanding a stable, democratic financial system that delivers for people and planet. SOP’s other campaigns include the Climate Damages Tax (pushing for taxation of the fossil fuel industry to pay for a just transition and to help those facing destruction from a changing climate) as well as challenging the privatisation of aid.
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