A recent OECD/New Climate Economy report on Green Investment Banks (GIBs) has found that 12 ‘GIB or GIB-like’ institutions now exist across the world, almost all of which have been created in the past 5 years. While the progress highlighted in the report is promising, my impression is that 3 key challenges remain for these institutions in promoting large-scale, low-carbon resilient development:
The U.S has a problem. No, not that one, but a very particular problem related to the geography of growth and water availability. Put simply, both population growth and job growth in the U.S appears to increasingly concentrated in a handful of states, while a significant number, in particular in the Midwest, are experiencing decreases in population, with internal migration playing an big role. Adam Carstens has a neat summary at Medium highlighting these trends, and Forbes notes that 7 of the 10 of their ‘best for jobs’ cities in 2017 are concentrated in water-stressed western states (Utah, Arizona, Texas and California). Importantly, these are not just short-term blips, but reflect longer-term changes as well – 7 of the 10 fastest growing states from 1990-2000 were also western states.
The WEF Global Risks Report was published last week, and as ever contains plenty of things to keep you up worrying about at 3am. The report notes the increasing interconnectedness of risks, and the potential for societal polarization and inequality to produce political outcomes which reduce our ability to deal with global risks. Strikingly though, climate-related risks account for 4/5 of the highest impact risks, and 2/3 (arguably 3/3 if we include a climate-migration link) of the most likely risks.