Gemdev
| CIRIEC publication |
 |
 publication |
 Sovereign Wealth Funds’ investments and climate change Leonardo STANLEY Francisco CASTAÑEDA Nassib SEGOVIA In recent decades an important resource-accumulating agent, whose financial investments have spread across the world, has emerged: The Sovereign Wealth Fund (SWF). This capital comes chiefly from economies that control natural resources and from budget surpluses that some nations can generate. The principal players are in the Middle East and Asia, whose resources come from oil and associated exports. SWFs, with their huge investment portfolios, have taken control of companies around the world, becoming, in turn, not just a principal provider of resources for the businesses but also creditors of various countries, with the objective of diversifying their investment portfolios. (…) The main purposes for their establishment are stabilising government and export revenues (fiscal), accumulation of savings for future generations in resource-rich countries to offset the future lack of natural resources (savings), and or/the management of foreign reserves. (…) Developmental issues were basically associated with (traditional) industrial policies; SFWs goals, however, have recently, although timidly started to expand to include sustainable goals, as climate change issues. (…) Latin America keeps ignoring the issue due to its fiscal restrictions and urgent needs of income. 2024 WP24/06 download PDF |
| All working papers |