World Bank President calls for $50b ‘green bond’ market
Jim Yong Kim emphasises the need for up-scaling of green bonds by 2015 to help limit carbon emissions and promote resiliency to climate change
World Bank chief, Jim Yong Kim, has called for developing a US$50-billion green bond market by 2015 to increase reslience to climate change.
In a blog for the World Economic Forum Annual Meeting, Dr Kim was wrote: "A year ago, I said at this meeting that we needed a plan for tackling climate change, a plan fit for the challenge that we face. A year later, we've seen great leadership on climate from countries and companies, but emissions are still rising and the poor are still suffering,".
He welcomed the UN Secretary General's call for a leadership summit on climate change in September this year and outlined how steps should be made to double the green bond market to US$20 billion by the September summit. The market should be increased to US$50 billion by the time of the Paris meeting, to be held in 2015, he added.
Asking the private sector as well as governments leaders at Davos to "act in substantial ways", Kim said now is the time to act for future generations before it is too late.
"This is the year to take action on climate change. There are no more excuses. If we fail, our children and grandchildren will ask us why we didn't act when it was still possible to do so," he added.
Stating that governments should put a price on pollution, the World Bank chief said performance standards for buildings, cars and appliances, among others, should be set.
Dr Kim also emphasised how putting a price on carbon through either taxes or market-based instruments are the key.
"The so-called long-term investors must recognise their fiduciary responsibility to future pension holders who will be affected by decisions made today. Corporate leaders should not wait to act until market signals are right and national investment policies."
