Today IFC and S&P launched the Carbon Efficient Index for Emerging Markets. The index is designed to closely track the Investable Emerging Markets Index begun by IFC, but is now managed by S&P with 24% more carbon efficiency.
We hope that within three years more than $1bn will be following the index. A modest hope, but it's a signal. More than $5 trillion of funds under management by institutional investors are passively invested. If between 1 and 2 percent are invested in emerging markets - then a small portion of that is where we start.
As we discuss the need for financing for climate change in developing countries, it is increasingly important that we think of emerging market entrepreneurs. Their access to long term finance supports their plans to grow efficiently, which is how we bring together developing country needs to grow with our overall climate change goals. Getting them evidence that investors care about carbon efficiency, now, is what will help their decision making and send that signal.
Delegates to the COP 15 need to understand that the success of these programs are dependent on the strength of the agreements they make over the next few days.