The report was released at 29th CoP to the United Nations Framework Convention on Climate Change (UNFCCC).
- It provides estimates of investment needs across areas Clean energy transition, Adaptation and resilience, Loss and damage, Natural capital & Just Transition to meet Paris Agreement.
Key Findings of the Report
- Global Investment Required for climate action is around $6.3–6.7 trillion per year by 2030.
- Emerging market & developing countries (EMDCs) other than China require $2.3-2.5 trillion.
- Currently, investment is concentrated in economies such as India and Brazil.
- Emerging market & developing countries (EMDCs) other than China require $2.3-2.5 trillion.
- Increased Role of non-traditional sources in closing financing gap. E.g. voluntary carbon market, South South Cooperation, use of special drawing rights etc
- Unprecedented opportunity for developing countries due to declining technology costs (of solar power) & huge expansion in supply from China
Recommendations
- Integrated approach to Climate Finance with strengthening of collaboration, development of sectoral investment plans and co-creation of project pipelines
- Public Funding: Manage debt and fiscal space, boost domestic resource mobilization(by carbon pricing) etc.
- Private Investment: Reduce cost of capital, expand options for concessional finance, Tapping the potential of carbon markets etc.
- Multilateral Development Banks: should work to triple lending capacity by 2030 as part of New Collective Quantified Goal on Climate Finance(NCQG).
Mechanisms to Facilitate Climate Finance
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