to engage on climate change. I’ve heard the argument from him time and again over the last couple of years: tackling climate change will require not only governments but also private capital and private-sector initiative.
In our conversation, Kerry said that the key to getting private climate finance rests in finding ways for investors to profit. “Money behaves in certain ways. It always has. It always will. It seeks the greatest return on investment, the fastest return on investment, or the best combination of the two,” he says. “The bottom line: is the deal bankable?”
The goal of accelerating blended finance has won support from across the climate community, but the money has nonetheless come slowly. Areleased last month from Convergence found that last year dollars flowing through blended finance deals hit a ten-year low at a time when it needs to accelerate. Finance, of course, is just one part of the private sector’s role in the climate talks. Kerry noted that “some people have retreated” from their private sector climate commitments in the last few years, largely the result of inflation and pressure from shareholders. Still, he maintained that “responsible” firms are charging ahead. “They may not talk about it as much, they may not be pushing, but they're doing,” he says.