Ideas and Breakthroughs: Envisioning Private Sector Engagement
- From $100Billion Invested to $500 Billion Leveraged
- Change ratio of public/private from 80 public / 20 private to 20 public / 80 private
- Be the enabler and convener for innovation ecosystems
- Flip our model to be originators and distributors, and asset managers
- Use tools that become available in ways that deliver the biggest bang for the buck
- Facilitate and bring all DMCs onto the Singapore carbon exchange
- Bring private investors/financiers with the DMCs
- An important metric: How is this creating private sector opportunities and markets?
- The cost of failure is not low enough. We should take a portfolio approach and not subject high-impact new projects to the same level of scrutiny.
- Sandboxing approach in PSOD – staff come up with new products and pilot them in bottom-up ways
- Remove project number targets from PSOD
- Create a separate balance sheet for transition finance
- Importance of underwrite and distribute
- Role of sovereign product in addressing market failures
- Dealing with the IMF – are we giving enough importance to tax-GDP ratios?
- They do ask, but not linked with climate
- Gulf countries join ADB
- Help countries turn high level political commitments into transition investment plans – chief advisor for net zero roadmaps
- We are partially doing this through NDC events, but more technical assistance would be helpful and more facilitation
What were your biggest takeaways from Tuesday?
Discussion at Breakfast on Wednesday
- Importance of the ecosystem. We cannot go about this alone.
- To leverage our potential in finance, we need to think about what ADB is most suited to do. What is our unique contribution?
On specific sessions:
- The discussion on Financing Adaptation highlighted the importance of water and heat.
- It’s all about water, we are not talking about heat in our documents
- Our buildings are hermetically sealed. We had not thought about the potential consequences of this in case of a power outage
- The Engine gave us boundaries of the innovation ecosystem (the range from innovation and commercialization at one end and large scale deployment on the other). We learned about the critical role of the innovation environment, creating stimulation for talent and spaces like the Engine. We should be encouraging DMCs to create ecosystems like Engine/Boston all around the world.
- Through Mass CEC and with Mark Carney, we saw the power of finance. We can have more impact by focusing on the finance sector and not focusing on individual projects. How can we lead change in the financial system?
There is hope, talent, and technology.
- We had tangible ideas at the end of the day.
- We need to think about the messages we take back to ADB and to DMCs: What are our messages? What are our priorities? How do we carry this work forward?
- We may not be young here, but these are bold fresh ideas, we are young in mind!