IFC Climate & Sustainability’s Post

“There is a clear global call for more climate finance to go to help support LMICs, for it to fund adaptation, and for it to go directly to those who need it most. Yet, the world is far from achieving this vision. Roughly $4.8 trillion has been channeled into climate action, but 75 percent of this has been invested in high-income countries and it’s estimated that less than 10 percent reaches local levels.” https://lnkd.in/gxrrE7xz

How can morality shape climate finance? Recently, Faith leaders have highlighted the ethical responsibility in addressing climate change. As shared by Daily News Egypt, their call at COP29 stresses equitable solutions for vulnerable communities and accountability in climate finance mechanisms. Explore how faith leaders are influencing climate finance at COP29 by reading the linked article. Follow us for more info & visit www.co2bank.asia today to be part of the change! *Credit DAILY NEWS EGYPT #CarbonBank #DailyNewsEgypt #COP29 #ClimateFInance #ClimateJustice Click the link below to read the full article: https://bit.ly/3Z1xl2l

Finance plays a crucial role in addressing the challenges posed by climate change. It is essential for enabling sustainable mitigation and management of both physical impacts and just transition. #Finance #ClimateChange #Sustainability

A recent BWC Blog discusses the shortcomings of climate finance pledges at COP29 to meet the needs of developing countries. To fill this gap, authors Creon Butler (Chatham House) and Afsaneh Beschloss (RockCreek) recommend two new types of climate finance windows to be implemented by MDBs. To read more:

Finance is a key element to translate pledges into actions!

Some say tackling climate change is too expensive. We say they're wrong. Doing nothing will cost us more in the long run, something everyone at this month's #COP29 seems to agree on. Fact is, adapting to climate change is cheaper than recovery or rebuilding after catastrophic events. Plus, every $1 invested in climate adaptation could yield $2-10 in total net benefits. 😃 Our latest #Alter article takes a look at the different types of climate finance we can use to achieve this and other benefits, like climate mitigation and resilience. 🌍💰 We’ll explore: 💸The urgent need for climate finance, with staggering figures highlighting the funding gap. 🏦Innovative approaches from local governments and international institutions. 🏝️New initiatives that are emerging to support vulnerable communities and regions. Check it out here: https://lnkd.in/dDtd-Y_X #ClimateFinance #ClimateAction #Sustainability #ClimatePolicy #climateadaptation #climateresilience #climatemitigation #climatechange Regions4  BC3 - Basque Centre for Climate Change Adaptation AGORA

Finance is 🔑 to climate action. A new phase of work on one of the most important items currently on the global climate change agenda – setting a new goal on climate finance by the end of 2024 – got underway last week in Cartagena, Colombia. The meeting marked a significant shift in the mode of work – from the technical to the political – to enable the development of a draft negotiating text on the ‘new collective quantified goal’ on climate finance for consideration at the COP29 UN Climate Change Conference in November. Read our article to learn more about the process of establishing the new finance goal: https://bit.ly/4becSL4

“Roughly $4.8 trillion has been channeled into climate action, but 75 percent of this has been invested in high-income countries and it’s estimated that less than 10 percent reaches local levels. The answer, however, might be within our reach. In a recent paper from CGAP, we argue that inclusive finance can be the most effective way to distribute climate finance at the grassroots level and enable a just transition and truly global climate action. Inclusive finance is a mature, low-risk, high-impact channel that climate funders should take advantage of. The inclusive finance sector is already a well-established ecosystem, effectively and safely directing large volumes of financing from impact investors, intermediary funds, and development financial institutions to low-income populations through heavily regulated financial institutions. Inclusive financial services providers (FSPs) have existing relationships in low-income communities, a deep understanding of customers’ needs, and expertise on how to meet those needs with financial solutions. They also have strong internal controls to prevent misallocation or misuse of funds and are carefully supervised by banking regulators. This allows them to deploy capital efficiently and effectively where it is needed most.”

Indeed tangible impact on resilience and wellbeing will remain elusive if finance won’t reach local levels and MSMEs. It’s time to tilt the flow directly to those most affected.

This is one of the most controversial policy dialogues. Only a tiny fraction of the huge climate resilience financing reaching population in most need (vulnerable) such as farmers. It was stressed previously by FAO and once again highlighted by the The World Bank #socialprotection #climatefinancing #climateaction #resilience #shocks #climateshocks