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  1. Nov 2021
    1. a slightly different position i have on this is that how do we if we were to be able to use the sdrs as i have also in my research 00:24:34 recommended we have to think about what is the purpose the purpose i would believe should not be for direct project financing because you will quickly run out of that money 00:24:46 in against the scale of investment that is needed the purpose of spending 500 billion dollars or a trillion dollars how do you spend a trillion would be to de-risk three kinds of 00:24:58 things number one de-risking against the physical challenges of the climate crisis similar to what terror was talking about how do you build up the local capacity to build 00:25:10 the resilience whether it is in the arctic north or whether it is in the tropical south the second kind of de-risking is for investments in emerging markets and developing countries where the sun 00:25:24 shines the most but money does not flow because we believe that it is risky to invest in solar projects or wind projects in the tropical countries now these are these risks might be real they 00:25:38 might be perceived but it has nothing to do with the solar developer it is to do with currency fluctuations and political crises and so forth so if you can de-risk that you bring down the cost of finance and you can crowd in 00:25:51 several fold of that 500 billion dollars in terms of institutional capital investment the third kind of de-risking is that of communities those that are currently reliant 00:26:04 on fossil fuels coal miners oil workers etc we talk about the lobbying by the fossil fuel companies but we talk very little of the conditions of the fossil fuel communities how do we create an 00:26:17 insurance cushion for them how do we create upskilling prospects for them how do we create unemployment insurance for them those are the things that are part of our collective obligation in order to 00:26:30 accelerate the transition away so if we can strategically deploy the sdrs i fully endorse what the prime minister barbados suggested i would in fact argue that the number should be double what 00:26:42 she asked for and we should be imaginative in how we deploy that capital

      In summary, SDRs should be used for derisking. Instead of 500 billion per year, 1 trillion a year should be spent on derisking three areas: 1)local resiliency, 2) investment in emerging markets, 3) supporting transition of communities reliant on fossil fuel industry