Global Lead Transition Finance at IFC I LinkedIn Top Green Voice 🌳 I Author
#Realitycheck: Climate finance flows are nowhere near estimated needs of USD 5 trillion annually. Climate investment should count in the trillions, whereas fossil fuel investments, which exceed USD 850 billion annually, should dramatically decrease this decade. Climate finance commitments also need to translate into action in the real economy, requiring all public and private actors to align their investments with Paris goals and net zero pathways. The big elephant in the room, will be the need to fill the investment gap for adaptation finance in developing countries. Currently set at USD$155-330bn the public sector continues to provide almost all adaptation financing. That’s a drop in the ocean considering the total need of $1 trillion per year in the developing world to achieve net-zero by 2050. A priority in raising financing is the reform of multilateral development banks, above all the World Bank. A key criticism remains that such organisations are simply too conservative and currently holding back on lending in a bid to maintain their AAA credit rating. Much more could be done to not only encourage private investment but also funnel more grants and ‘concessional’ loans- i.e. loans offered on generous terms below the market rate – to middle-income countries to assist the transition away from coal. Implementing such changes needs radical rethinking on the role of these institutions in the global climate finance world. Check out more of my thoughts here on LinkedIn News today #linkedin #development #investment #paris
"No credible pathway to 1.5C [is] in place", the United Nations Environment agency concluded last month, lamenting the lack of action and claiming current pledges to reduce global carbon emissions are not ambitious enough. The global financial sector has the potential to play a leading role in the fight against climate change. Firstly by reducing the loans and investments it provides to carbon intensive industries, secondly by using its assets (totalling over $460tn) to fund the green transition. While industries with large carbon footprints, like energy, automotive and aviation, are feeling pressure to become more sustainable, the finance sector still only has a voluntary obligation to report emissions targets. As a result, fewer than half of finance firms currently disclose the actions they are taking to make their portfolios greener. "The role of large-scale investors is quite crucial in us reaching the 1.5C target," says green infrastructure specialist Tara Shirvani, PhD. "We have to reach – by 2050 – net zero, and that will need an investment of around $4tn annually up until then. We're barely scratching the surface." How can global finance be incentivised to wield its power to accelerate the green transition? What can governments, stakeholders and consumers do to push the finance industry into action? Watch the video for more information and share your views below. Reported by: Manas Pratap Singh, Pieter Cranenbroek Video editing: Antonio Mérida Ordás Sources The Guardian: https://lnkd.in/eKySnsd7. Reuters: https://lnkd.in/eFJFk_9j. #GreenerTogether #Cop27
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2yThese are probabilities studies and appreciation base on your own research...Still all the money in the world will not give us a life that each of us is lacking or want...the greener transition is far to come and sustainable measure need to be taking into account...The life of a human being should exceed 120 years if it's well-nourished and look after!!