Who’s investing: The “new power brokers” in international finance

Who has the money to invest in climate-related projects and infrastructure, how are they spending
it, and what incentives are being built into the new private climate finance regime? How do climate
project investors calculate rates of return on investments? To what extent is a carbon price signal
part of this calculation? How do financial and non-financial firm investment strategies and motives
differ? The second seminar will look at the role of the “new power brokers” in the international
financial scene (sovereign wealth funds, private equity and hedge funds) as well as the changing
roles of more traditional private sector players (commercial and investment banks, pension funds
and insurance companies). These financiers are being touted as the place where billions of dollars
will come from, and we will investigate the types of and/or criteria for project in which these
financiers are looking to invest. Also, what potential is there for these new power brokers to invest
in adaptation programmes?

Core reading

SOMO, What is a pension fund?

SOMO, What is a hedge fund?

SOMO, What is a mutual fund?

Background reading

Patrick E. McNellis, Foreign Investment in Developing Country Agriculture – the emerging role of
private sector finance (extracts)

Kavaljit Singh, The Rise of New Global Players, Fixing Global Finance, chapter 4.

World Economic Forum, Scaling Up Low-Carbon Infrastructure Investments in Developing Countries:
The Critical Mass Initiative Working Report (extracts)

Presentations

Shally Venugopal, World Resources Institute

Audio: http://dl.dropbox.com/u/74241860/Venugopal1.mp3

Presentation: http://dl.dropbox.com/u/74241860/Venugopal1.pptx

Michelle Chan, Friends of the Earth USA

Audio: http://dl.dropbox.com/u/74241860/Chan2.mp3

Presentation: http://dl.dropbox.com/u/74241860/chan2.ppt