Philipp Hildebrand Talks COP28 Climate Initiatives
Dec 4, 2023
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Philipp Hildebrand, Vice Chair at Blackrock, discusses climate initiatives at COP28, challenges in carbon markets, the importance of capital, mobilizing private capital, and the difficulties faced by the Fed in making policy decisions.
One positive outcome of COP28 is the mobilization of private capital for climate projects in the emerging world.
Establishing comprehensive carbon markets is crucial along with emission reduction and new technologies to address climate change.
Deep dives
Private capital formation for climate transition
One positive outcome of the climate initiatives discussed at COP 28 is the emergence of private capital formation for investing in the climate transition in the emerging world. The focus is on mobilizing private capital to fund the necessary projects in regions that are in greatest need. While challenges remain in finding the right projects at speed, there is hope that progress can be made through regional cooperation and reforms in multilateral development banks.
The importance of comprehensive carbon markets
The establishment of comprehensive carbon markets is seen as a necessary step in addressing the climate challenge. While it is acknowledged that this will be difficult to achieve, it is recognized as an essential component that needs to be addressed along with other measures such as emission reduction, the development of new technologies, and industry involvement. The discussions at COP 28 highlight the need for a cohesive approach towards carbon markets and the inclusion of various elements to ensure fairness and effectiveness.
The macroeconomic challenges of the climate fight
The macroeconomic landscape presents challenges for the climate fight. Lower trend growth, higher volatility, and higher interest rates make it more difficult to achieve climate goals. Global production constraints, geopolitical fragmentation, and demographic factors constrain output and impact the policy decisions faced by central banks. The transition to a more sustainable economy requires a new approach and a rewiring of the global economy, leading to higher costs, potential inflationary pressures, and the need for policymakers to navigate these complex trade-offs.
Blackrock Vice Chair Philipp Hildebrand discusses the climate initiatives at the COP28 Summit, and the capital needed to fund solutions with Bloomberg's Francine Lacqua.