Commonwealth Secretariat climate finance group calls on Govts to review financial regulation so it supports the transition to a global low carbon economy

Earlier this year the Commonwealth Secretariat was asked by member States to convene an "Expert Group on Climate Finance" to: explore practical actions to help unlock resources for small and vulnerable Commonwealth countries combatting climate change impacts.

The Expert Group was led by the former President of Guyana, Bharrat JagdeoUNEP FI Chair David Pitt-Watson and I served as "experts on private sector finance". Members are listed at the bottom of this note.

The Group's findings were presented at the rather controversial Commonwealth Heads of Government Meeting in Sri Lanka last month.

Recommendations included some practical steps ...

  • improving the transparency and accountability of international climate finance by focusing on clearer definitions of what is meant by climate finance, and improving reporting mechanisms;
  • taking practical action to provide skills and advice to countries and help them navigate their way through access procedures for finance; and working with climate finance providers to simplify the access arrangements for SIDS and LDCs.

... and a useful message to least developed country and small island state governments ...

  • Governments need to drive action on climate across all government departments, not leaving this issue to one individual ministry or agency, but integrating it fully within national development plans and budgets.

... and finally the importance of ensuring that the system as a whole is capable of delivering the finance needed for a sustainable economy, including to developing countries:

  • The Commonwealth Secretariat should ask international financial regulators (the Financial Stability Board; Basel Committee; IOSCO; International Association of Insurance Regulators; International Accounting Standards Board; International Actuarial Association) to make an ‘environmental assessment’ of regulatory rules for which they are responsible to assess how the rules are affecting the availability of climate finance, avoiding negative impacts on developing countries, and incorporating environmental risk.
  • Request that global financial regulators consider the consequences of their actions for the financing of a global low carbon economy, and avoid negative impact on developing countries.
  • Develop mechanisms to ensure that the interests of non-G20 developing countries are represented in the relevant counsels of the G20 and elsewhere to avoid unintended negative impacts, especially relating to reforms of market incentives and financial regulation.

If you're interested you can download the report here.

The full composition of the Group was as follows:

  • Bharrat Jagdeo (Guyana), President of Guyana from 1999 to 2011; now on various boards in the areas of sustainable development, green growth and climate change.
  • Dr Fatima Denton (The Gambia), Co-ordinator for the Africa Climate Policy Centre (ACPC) of the United Nations Economic Commission for Africa.
  • Dr Saleemul Huq (Bangladesh/UK), Director for the International Centre for Climate Change & Development, Independent University in Bangladesh and Senior Fellow in the Climate Change Group at the International Institute for Environment and Development.
  • Sean Kidney (Australia/UK), CEO of the Climate Bonds Initiative.
  • Dr Kenrick Leslie (Belize), Executive Director of the Caribbean Community Climate Change Centre.
  • Richard S Muyungi (Tanzania), Assistant Director of Environment in the Tanzanian Vice President’s Office and National Climate Change Focal Point.
  • Coral Pasisi (Niue), Regional and International Issues Adviser of the Pacific Islands Forum Secretariat focusing on sustainable development policy.
  • David Pitt-Watson (UK), Chair of the UNEP Finance Initiative; Executive Fellow in finance at London Business School. Formerly a senior fund manager.
  • David Runnalls (Canada), distinguished fellow at the Centre for Governance Innovation and senior fellow at Sustainable Prosperity and the Institute for the Environment at the University of Ottawa.