Finance

Climate Finance: The Solution to All Climate-driven Ills?

Published

1 year ago

November 26, 2023

Climate Finance: The Solution to All Climate-driven Ills?

Statistics reveal that the world’s top 1 per cent of emitters produce over 1,000 times more CO2 than the bottom 1 per cent. That number gets starker, as studies reveal, with the richest 0.1 per cent of the world’s population emitting 10 times more than the entire top 10 per cent combined. These figures make one thing explicitly clear: if these top emitters globally continue to maintain such carbon levels, there is no way we can decarbonize fast enough.

With COP28 on the horizon, organisations around the world are assessing the progress and challenges in the climate mitigation process. As we know, the Paris Agreement rolled out a framework for developed nations to provide financial, technical, and capacity-building support to the countries that need it. This framework is what gave rise to the concept of climate finance.

The United Nations Framework Convention on Climate Change (UNFCCC) defines climate finance as local, national, or transnational financing that helps countries reduce greenhouse gas emissions by funding renewable power such as wind or solar. The uptake of solar power as a renewable resource was slow to begin with due to large upfront costs and availability issues. Over time, however, after governments began awarding tax credits to industries for adopting solar energy systems, an increase in production and government subsidies led to a decrease in the direct costs of solar energy for consumers. Today, renewable energy is more cheaply produced than fossil fuels in some markets. Due to the increasing competition in the solar energy industry, installation costs have also seen a sharp decline, making it a fiscal win for both consumers and large companies globally.

Another form that climate financing takes is through carbon trading and carbon taxes.

Carbon trading involves the buying and selling of credits that allow a company or other entity to emit a certain amount of carbon dioxide. So, for a nation that buys carbon, it buys the right to burn it. While the nation that sells carbon surrenders the right to burn it.

For example, the UNFCCC awarded the Delhi Metro Rail Corporation (DMRC) with carbon credits for reducing greenhouse gas emissions in the city. However, this idea has its own critics and supporters. While cumulatively, greenhouse gas emissions may be reduced and some countries reap economic benefits, critics do not endorse this system as it can create an exploitative environment.

Despite this, the success of DMRC is one example of the many initiatives India has taken to use climate finance in its fight against climate change. While India is on the roster of receiving climate funds from developed nations, many of India’s climate actions have been financed domestically, including the government’s budgetary allocations, market mechanisms, fiscal instruments, and policy interventions. In fact, according to a report submitted to UNFCCC, India’s domestic mobilisation of finance almost completely overshadows the sum of total international funding.

India has been seen taking the lead in representing developing nations’ needs in global summits and forums. Developed nations were required to mobilise $100 billion per year by 2020, which, while far from having been met, has also proved simply insufficient. In lieu of this, India has taken the lead at the UNFCCC to advocate for climate finance in the form of grants instead of loans that many developed nations tend to provide in the name of support. These loans can potentially harm local communities, adding to the heavy debts of countries, especially when interest rates are on the rise. Additionally, India is also insisting on new climate finance targets by 2024, asserting that the required amounts be set in trillions to meet the actual needs of climate change mitigation.

Representatives and experts across the globe will assemble once again at the COP28 UAE soon to rethink, reboot, and refocus the climate agenda. It is crucial for India to emphasise that tackling climate change and financing it is a collective responsibility. Transparent funding mechanisms and fair assistance for developing nations are necessary as they work towards achieving a balance between economic growth and environmental sustainability amid the challenges posed by climate change.

And global leaders need to listen and act before the planet reaches an irreversibly high temperature.

Aishwarya Bhatia is Content Strategist & Writer at Sambodhi Research & Communications, a multidisciplinary research organisation offering data-driven insights to global social development organisations.

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Finance

KKR Real Estate Finance Trust Inc. to Announce Fourth Quarter 2024 Results

Published

45 minutes ago

January 17, 2025

Press Room

KKR Real Estate Finance Trust Inc. to Announce Fourth Quarter 2024 Results

NEW YORK, January 17, 2025–(BUSINESS WIRE)–KKR Real Estate Finance Trust Inc. (“KREF”) (NYSE: KREF) announced today that it plans to release its financial results for the fourth quarter 2024 on Monday, February 3, 2025, after the closing of trading on the New York Stock Exchange.

A conference call to discuss KREF’s financial results will be held on Tuesday, February 4, 2025 at 9:00 a.m. ET. The conference call may be accessed by dialing (844) 784-1730 (U.S. callers) or +1 (412) 380-7410 (non-U.S. callers); a pass code is not required. Additionally, the conference call will be broadcast live over the Internet and may be accessed through the Investor Relations section of KREF’s website at http://www.kkrreit.com/investor-relations/events-and-presentations. A slide presentation containing supplemental information may also be accessed through this website in advance of the call.

A replay of the live broadcast will be available on KREF’s website or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), pass code 4697062, beginning approximately two hours after the broadcast.

About KKR Real Estate Finance Trust Inc.

KKR Real Estate Finance Trust Inc. is a real estate finance company that focuses primarily on originating and acquiring senior loans secured by commercial real estate properties. KREF is externally managed and advised by an affiliate of KKR & Co. Inc. For additional information about KREF, please visit its website at www.kkrreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250117176772/en/

Contacts

Investor Relations:
Jack Switala
(212) 763-9048
kref-ir@kkr.com

Media:
Miles Radcliffe-Trenner
Tel: (212) 750-8300
media@kkr.com

Finance

Finance Director Bill Poole named to Presidential Leadership Scholars Program

Published

9 hours ago

January 17, 2025

Press Room

Finance Director Bill Poole named to Presidential Leadership Scholars Program

The Presidential Leadership Scholars Program announced that State Finance Director Bill Poole has been selected as a member of the Presidential Leadership Scholars Class of 2025. As one of 57 Scholars, Director Poole will join accomplished leaders in education, healthcare, public service, business, and other sectors to learn and hone leadership skills through interactions with former presidents, noted academics and industry leaders.

For the past decade, PLS has united a broad network of established public and private sector leaders to collaborate and create positive change in their communities and across the world. Chosen for their demonstrated leadership and support of projects aimed at addressing challenges and improving communities, Scholars will participate in a six-month program focused on core leadership skills, including: vision and communication, decision making, and strategic partnerships.

“It is an incredible honor to be named to the 2025 Class of Presidential Leadership Scholars,” said Director Poole. “I look forward to interacting with and learning from past presidents and industry leaders. I am excited to work alongside peers from across the country that are dedicated to promoting civic engagement and working on issues that will improve our communities.”

In addition to visiting four presidential centers, scholars will participate in a personal leadership project addressing local and global issues.

“I am proud to surround myself with a dedicated team of public servants to help propel Alabama forward, and I am certainly glad that includes Bill Poole. It is very exciting Bill has been selected for the Presidential Leadership Scholars Program, and I know he will represent our state well,” said Governor Kay Ivey. “Congratulations to Bill as he continues taking steps to develop and best serve the people of Alabama.”

Bill Poole was appointed Finance Director for the State of Alabama on August 1, 2021. As Alabama’s chief financial officer, Poole serves as an advisor to the governor and the legislature on all financial matters and is charged with promoting and protecting the fiscal interests of the State of Alabama. He also serves as chairman of Innovate Alabama, the state’s first public-private partnership tasked with promoting entrepreneurship, technology and innovation. Poole was a member of the Alabama House of Representatives for eleven years, where he served as chairman of the House Ways and Means Education appropriations committee for eight of those years.

To learn more about the Presidential Leadership Scholars program, visit “Presidential Leadership Scholars.”

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Finance

US consumer finance watchdog fines payments firm Block over Cash App operations

Published

16 hours ago

January 17, 2025

Press Room

US consumer finance watchdog fines payments firm Block over Cash App operations

Block said the issues raised by the regulator were “historical” and did not “reflect the Cash App experience today” [File]
| Photo Credit: REUTERS

The Consumer Financial Protection Bureau (CFPB) on Thursday ordered payments firm Block to pay a penalty citing fraud and weak security protocols on its mobile payment service Cash App.

The regulator said Block, which is led by tech entrepreneur Jack Dorsey, directed Cash App users who experienced fraud-related losses to contact their banks for transaction reversals.

However, when the banks approached Block regarding these claims, Block denied that any fraud had occurred.

Cash App is one of the largest peer-to-peer payment platforms in the U.S. and allows consumers to send and receive electronic money transfers, accept direct deposits and use a prepaid card to make purchases.

“When things went wrong, Cash App flouted its responsibilities and even burdened local banks with problems that the company caused,” said CFPB Director Rohit Chopra.

In response, Block said the issues raised by the regulator were “historical” and did not “reflect the Cash App experience today.”

“While we strongly disagree with the CFPB’s mischaracterizations, we made the decision to settle this matter in the interest of putting it behind us and focusing on what’s best for our customers and our business,” the company said.

The move is one of the final regulatory actions under the Biden administration as Washington awaits the inauguration of President-elect Donald Trump. Billionaire Elon Musk, who is slated to co-head a new government agency to slash government spending, has called for the elimination of the CFPB.

The CFPB’s order includes up to $120 million in redress to consumers and a $55 million penalty to be paid into the CFPB’s victim relief fund.

The regulator also alleged that Block deployed a range of tactics to suppress Cash App users from seeking help in order to reduce its own costs.

Block’s gross profit rose 19% to $2.25 billion in the third quarter ended Sept 30, with Cash App accounting for $1.31 billion of the total income.

On Wednesday, the company also agreed to pay $80 million to a group of 48 state financial regulators after the agencies determined the company had insufficient policies for policing Cash App.

Published – January 17, 2025 09:14 am IST