Identifying Climate-Smart Finance for Decision-makers at all levels.
The COP22 Presidency joined Citizens’ Climate Education and the Geoversiv Foundation to introduce Resilience Intel: a first-of-its-kind Climate-Smart Finance Aggregator, on the Finance Day at COP23.
The Climate-Smart Finance Aggregator brings together a coalition of technical, political and financial practitioner partners to establish a common standard for basic assessment of the climate-positive, neutral or negative value of any given dollar of investment, in any sector.
- It is a major technical outcome of the Acceleration Dialogues, which began in October 2015, in the run-up to the COP21 climate negotiations, where the Paris Agreement was adopted.
- Resilience Intel is also an implementation strategy for the COP22 Climate Finance Pathway, agreed as a major outcome of the 2nd Biennial High-level Ministerial Dialogue on Climate Finance [PDF], held during the COP22 in Marrakech.
- One of the core elements of the COP22 climate finance work relates to Adaptation Metrics, or measuring the “invisible value” of spending that produces as its major benefit a reduction in future risk, vulnerability or damage.
- Resilience Intel uses “resilience” to encompass 1) hidden structural investment / risk reduction value, 2) macrocritical resilience, and 3) progress toward a robust Paris-compliant climate-smart economy.
The Aggregator will use a light-touch analysis to parse any kind of spending into good / bad / neutral and then add up all of the good, to identify hidden climate-action money across the whole economy.
Any given dollar, euro, yuan, or sol can be graded as one of the following:
- Resilience Value Positive: RV+
- Resilience Value Stable: RV=
- Resilience Value Negative: RV-
A rough-sketch outline for the ongoing development of Resilience Intel as a coalition of technical support, a data-mapping network of networks, and a decision-support tool:
- From the start — work with technical partners, and add to the aggregate value flowing to climate-related priorities;
- Next stage — climate intelligence grading applicable to any kind of finance or expenditure, intended to integrate many different climate value and resilience ratings methodologies;
- Building on experience — roadmaps for upgrading the climate intelligence of investments, budgets, institutions of many kinds.
- Ultimately — empower innovators in finance to leverage new kinds of data to show the competitive resilience value of specific investment choices.
Investors, entrepreneurs and decision-makers, at all levels, everywhere, need actionable insights to compete in a new economy that values climate solvency as a basic right and a structural principle for the effective operation of legal and economic systems.
- A resilience deficit is an erosion of sovereignty — for individuals, for enterprise, and for the state in its obligation to define and uphold the rule of law.
- Investments that carry a resilience deficit will be disfavored by the wider day-to-day market for finance, globally.
- Because investment in climate-negative finance degrades value elsewhere, it undermines everyone’s leverage for making smart, high-return investments.
- While some speculators will seek to capitalize on volatility, the wider market interest to marginalize such investments will outweigh the value of any such risk-taking.
Resilience Intel aims to empower climate-smart financial decision-making that leverages these emerging macroeconomic imperatives:
- The ability to perform while generating zero external harm, and to cooperate sustainably with partners at all levels, will be a higher priority than the state-funded market distortion that dominated the old industrial economy.
- As the transition to a climate-resilient world economy speeds ahead, every actor, at every level, can look to a future in which one’s own transition trajectory is either optimal or suboptimal.
- The optimal transition trajectory for most actors remains fairly opaque or elusive, due to the lack of visibility of the climate-smart qualification of any given dollar of planned investment.
The CSFA will help to resolve this problem by bringing the climate-smart qualification of any given dollar of planned investment into view–drawing connections to the climate intelligence of related investments, goods, services, and infrastructure. During the development phase, we invite input and inquiry from experts, potential practitioner partners, and from financial institutions in and private sectors.
- Citizens’ Climate Education
- The COP22 Presidency
- The Geoversiv Foundation
- The International Centre for Dialogue and Peacebuilding
The Kingdom of Morocco, acting as a party to the UNFCCC, co-convened the Paris Working Dialogue on Resilience Intel, and is an ongoing partner in connecting this effort to the implementation of the COP22 Climate Finance Pathway and the Marrakech Pledge for Fostering Green Capital Markets in Africa.