Kick-starting global climate investments: uncovering hidden links in climate finance and exploring dynamic evolution of investment networks for policy design

1. Kick-starting global climate
investments
Uncovering hidden links in climate finance and
exploring dynamic evolution of investment
networks for policy design
Dr Nadia Ameli
LINKS

2. The challenge: Limited understanding of climate
finance and substantial knowledge gaps (IPCC)

3. The challenge: Limited understanding of climate
finance and substantial knowledge gaps (IPCC)
• Heterogeneity of preferences
• Dynamics of behaviour and learning process
• Relationships and influence in the financial system

4. • Laying the foundations of a new field, Climate Finance Networks
• Understand and influence the financial system to re-orient financial flows
towards low-carbon investments
• Inform optimal allocation of public resources to trigger more funds towards
low-carbon investments
Ambition

5. Originality: New theoretical framework
Adaptive System
Investment patterns
and strategies evolve
over time
Macro patterns
emerge from
observed micro
investors’ behaviour
and interactions
Complex
Many heterogeneous
investors interacting
simultaneously on
multiple levels

6. 2004 2008
20172012
Source: PI’s preliminary analyses
Originality: Network approach
Renewable Tech Company
Investment Fund
Public Bank
Renewable Energy Company
Private Investors
Private Bank
Government
Diversified
Utility
Co-operative Bank
Unknown Investor

7. 2004 2008
20172012
Source: PI’s preliminary analyses
Originality: Network approach
Renewable Tech Company
Investment Fund
Public Bank
Renewable Energy Company
Private Investors
Private Bank
Government
Diversified
Utility
Co-operative Bank
Unknown Investor
• Influencer investors
Deutsche Kreditbank
7C Solarparken
• Hub Investors
Deutsche Kreditbank
HSH Nordbank
• Investors’ relationships
Renewable Energy (Tech) Comp
Public Bank

8. Baden-Württemberg
Bavaria
Berlin
Brandenburg
Bremen
Hamburg
Hessen
Lower Saxony
Mecklenburg-Western Pomerania
North Rhine-Westphalia
Rhineland-Palatinate
Saarland
Thuringia
Schleswig-Holstein
Saxony-Anhalt
Saxony
Source: PI’s preliminary analyses
Originality: Network approach

9. Influence effects based on
geographical proximity and
projects’ concentration
Source: PI’s preliminary analyses
Originality: Network approach

10. 1 year 2 year 3 year 4 year 5 year
1 phase
2 phase
3 phase
Identifying
policies and
regulations
Exploring
network evolution
and its dynamics
Modelling
networks’
structures and
investors’
preferences
Project objectives
A worldwide analysis of low-carbon investments

11. LINKS requires a multidisciplinary approach
Advisory board: Prof Guido Caldarelli & Prof Antoine Mandel
Postdoc
econometrics
Postdoc
sociology
Postdoc
computer
science
PhD
complex
systems
Climate
finance
Energy
Policy
Applied energy
economics
Econometric
modelling