Economists and finance leaders convened by the COP28 Presidency have agreed on the steps to create a new framework for international climate finance and a roadmap on how to implement it to drive progress at the UN-convened COP28 climate meeting and beyond.
The aim is to rapidly increase international climate finance before 2030 to support emerging markets and developing economies.
Economists from the Independent High-level Expert Group met with global institutions including the World Bank, IMF, ECF and IFC, the COP28 and COP27 Presidencies and UN Climate Change high-level champions on August 15–16 in Abu Dhabi. The UAE will host COP28 later this year.
The new framework will focus on addressing debt distress in vulnerable countries and the role of the private sector in delivering increased finance to meet the estimated US$2.4trn of investment required annually by 2030 to tackle climate change in emerging markets and developing economies.
The implementation roadmap is aiming to give UN agencies, the IMF, World Bank, regional multilateral development banks, national governments and the private sector short and long-term plans to achieve the Paris Agreement and create an action plan for international climate finance.
The COP28 UAE Presidency has identified “fixing climate finance” as one of the four priorities for the climate meeting that enables the energy transition in emerging markets and developing economies and supporting countries most impacted by climate change.
IHLEG develops and presents policy options and recommendations to enable the public and private investment necessary for the delivery of the ambitions of the Paris Climate Agreement.
Its work builds on the Bridgetown Initiative, which proposes the creation of new instruments and reform of existing institutions to finance climate resilience and June’s Paris Summit for a New Global Financial Pact that aims to mobilise financial support for developing and low-income countries.
Source Link – IHLEG agrees climate finance framework | Nasdaq
About the Authors
Associate Director, Investment Banking
Prachurjya has over 16 years of experience in investment banking with Acuity Knowledge Partners. At Acuity, he has led sector and product-specialist pilot teams across Capital Markets, ESG, Debt Advisory, Loan Syndications, Metals & Mining and Real Estate. He has been actively involved in setting up and on-boarding new ESG Advisory, ESG DCM and Sustainable Finance teams for various bulge bracket investment banks. Within DCM and Rating Advisory, he has been instrumental in helping the clients achieve over 30% in annual savings on both regular and adhoc tasks through standardization of the outputs and deployment of our proprietary BEAT tools.
Delivery Manager, Investment Banking
Puja has 6 years of extensive experience in ESG, Climate Change & Sustainability and she is supervising the ESG team at Acuity. She also has diverse experience in conducting ESIA, EHS compliance audits, ESG Risks and Controls, EHS & ESG Due Diligence assessments. Prior to joining Acuity, she was working with companies like KPMG Global Services, EY India and ERM India. She has expertise in provisioning extensive research requirements for clients through preparation of Peer Benchmarking, Target Compilation, Sustainability report, Sustainable Finance Updates and Sectoral ESG Thematic Detailing Engagement.
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