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“ BY 2025 THERE WILL BE A NEW QUANTIFIED CLIMATE FINANCE GOAL, STARTING WITH AT LEAST US$100 BILLION PER YEAR. FINANCE REMAINS INTEGRAL TO ENABLING EFFECTIVE CLIMATE ACTION AS DEMANDED BY THE AMBITION OF THE PARIS AGREEMENT”It is clear that public finance alone cannot fill the entire climate finance gap. If the world is serious in meeting the climate goals it has set itself, developing polices that incentivise and accelerate the flows of private capital into sustainable infrastructure, transport and energy systems should form a critical part of the solution. Well-designed policy that incentivises capital mobilisation and the promise of a binding Paris agreement could direct the necessary trillions of dollars of private investment towards sustainable, and climate-resilient projects.But while capital markets exist to mobilise large-scale investment, they are traditionally uneasy when it comes to sectors or asset classes they are unfamiliar with or where there exists significant political risk4. The need for clear and investible climate change policy is understood. The ‘Global Investor Statement on Climate Change’ was signed by over 400 investors, accounting for US$24 trillion in assets or roughly the equivalent of a third of global capital markets. Signatories stated that they were ‘acutely aware of the risks climate change presents to our investments’, an acknowledgement that required them to act and to call on governments to do so as well. The Statement set out steps that institutional investors (both asset owners and asset managers) can take to address climate change and called on policymakers to address climate change. There have already been a number of promising shifts in the financial landscape. Six of the largest multi-lateral development banks (MDBs) pledged to increase their volumes of climate finance in support of the Paris Agreement by as much as a multiple of three. It should also be noted that, in the four years since starting to track climate finance in 2011,