Energy

Since the Paris Agreement's adoption in 2015, a majority of the world's largest investors have begun to take action on climate change. According to a new report, the 2016–2017 year showed an average improvement in decarbonization within all major investor categories except pension funds.

Sovereign wealth funds (SWFs) have traditionally been created to recycle excess reserves from natural resource or non‐commodity revenues. However, in recent years funds are being established under conditions of capital scarcity with objectives to contribute domestic economic development, often through the buildout of national infrastructure programs. Such trends in new fund creation represent a fundamental shift in the sovereign wealth fund paradigm and raise serious questions about how these entities are to be capitalized and also the implications of capitalization models on their sustainability. This study examines the recent evolution of SWF models focused on economic development. Its analytic focus is drawn, in particular, to countries that are neither endowed with oil wealth, nor otherwise enjoy export surpluses to be used to capitalize a development‐oriented SWF. While this study is relevant to and expands the scope of the broad literature on SWFs, its specific contribution is as a focused analysis of how SWF funding sources impact achieving long‐term financial and socio‐economic development objectives.

This paper is a background review representing part of the initial phase of the Financing the Urban Transition work program. The review builds on a growing body of research that highlights both the importance of national sustainable infrastructure and the need to develop more effective and efficient financing mechanisms for delivering compact, connected cities that meet the UN’s Sustainable Development Goals. While progress has been made in both these areas over the last five years, there remains a policy gap between the international/national level and the municipal level.

On 24 and 25 November 2016 experts from politics and academia, including FDP Executive director Cathryn Clüver, discussed the impact of Brexit on several policy areas in a series of workshops at the Hertie School of Governance in Berlin. All events took place under Chatham House rules.

The Belfer Center began researching energy technology issues in the late 1990s. Its mission was “to determine and promote the adoption of effective strategies for developing and deploying cleaner and more efficient energy technologies that can reduce greenhouse gas emissions, reduce dependence on fossil fuels and stress on water resources, and improve economic development.”

In this issue, we look at the history and influence of the Center’s energy innovation efforts in the past two decades by focusing primarily on ETIP’s work in the U.S. and China.