OECD Working Papers on Finance, Insurance and Private Pensions
Selected studies on finance, insurance and private pensions policy prepared for dissemination in order to stimulate wider discussion and further analysis and obtain feedback from interested audiences. The studies provide timely analysis and background on industry developments, structural issues, and public policy in the financial sector. Topics include risk management, governance, investments, benefit protection, and financial education. Previous papers addressing these policy issues are available via http://dx.doi.org/10.1787/19936397.
- ISSN: 20797117 (online)
- https://doi.org/10.1787/20797117
The Role of Pension Funds in Financing Green Growth Initiatives
It is estimated that transitioning to a low-carbon, and climate resilient economy, and more broadly „greening growth? over the next 20 years to 2030 will require significant investment and consequently private sources of capital on a much larger scale than previously. With their USD 28 trillion in assets, pension funds - along with other institutional investors - potentially have an important role to play in financing such green growth initiatives.
Green projects - particularly sustainable energy sources and clean technology - include multiple technologies, at different stages of maturity, and require different types of financing vehicle. Most pension funds are more interested in lower risk investments which provide a steady, inflation adjusted income stream - with green bonds consequently gaining interest as an asset class, particularly - though not only - with the SRI universe of institutional investors...
Keywords: infrastructure, green bonds, pension fund, green growth
JEL:
G18: Financial Economics / General Financial Markets / General Financial Markets: Government Policy and Regulation;
G23: Financial Economics / Financial Institutions and Services / Non-bank Financial Institutions; Financial Instruments; Institutional Investors;
G15: Financial Economics / General Financial Markets / International Financial Markets;
G28: Financial Economics / Financial Institutions and Services / Financial Institutions and Services: Government Policy and Regulation;
J26: Labor and Demographic Economics / Demand and Supply of Labor / Retirement; Retirement Policies
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