CLIMATE FINANCE, CLIMATE INVESTORS AND ASSETS FOR LOW EMISSION DEVELOPMENT

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Abstract

This research examines the relationship between climate finance, growth in climate investors and growth in climate assets for low emission development. It also evaluates the effect of climate policy evolution on the growth of climate investors and climate assets. Adopting a positivist paradigm, the paper makes use of a quantitative research approach and applies the causal and correlational research design. The paper made use of secondary data from the World Bank Carbon Finance Unit and from the Carbon Disclosure Project (ADP). The major objective was to examine the combined effect of climate finance and climate policy on the growth of carbon investors and carbon assets for the companies in the Carbon Disclosure Project which includes the 100 JSE companies. Findings from the test reveal that the combined effect of growth in climate finance and climate policy evolution has a significant relationship with growth in climate investors and climate assets. Given this result the paper proceeded to examine if the growth in climate finance has any correlation with South Africa’s emission reduction trend. Results however indicate that South Africa’s GHG emission trend does not correlate with climate finance availability; GHG emissions in South Africa have continued to soar despite a seeming growth in climate finance. The paper reasoned that the global climate finance might not be effectively available to corporates in South Africa at the expected level of financing to initiate the expected level of climate investment to effect a significant reduction in greenhouse gas emissions. This confirms literature assertions that global climate finance might not easily be accessible, at least to entities in developing countries. In conclusion, the paper suggests the establishment of a Southern African Climate Finance pool where the public and private sector can contribute and that such pool should be made easily available to carbon investors at a cheap rate with alluring tax incentives to funders and beneficiaries. The paper adds a modest nuance to the literature as no know previous research has dwelt specifically on the unique relationship of climate finance, climate policy and climate investors. The paper’s implication is beneficial to green policy officials and for academic debate. It suggests an avenue for further research about climate investors’ handicap in accessing global climate finance and to explore logistics to develop independent South African based climate finance.

Keywords: Climate Finance, Climate Policy, Climate Investment, Climate Assets, Low Carbon Economy

How to cite this paper: Ngwakwe, C. C. (2015). Climate finance, climate investors and assets for low emission development. Journal of Governance and Regulation, 4(2-1), 82-97. https://doi.org/10.22495/jgr_v4_i2_c1_p1