Much increased levels of private finance will be needed to meet an annual international investment target of US$1 trillion to support climate action in developing countries. The figure is expected to rise to US$2.4 trillion by 2030, to boost resilience and deal with the loss and damage caused by climate change impacts, and to restore nature and land, according to a report by the Independent High-Level Expert Group on Climate Finance. The report envisages the private sector “making the largest increase in financing” and calls for a proactive approach from institutions to translating their commitments to net zero and financing for developing countries into “tangible” investments, as well as effective responses from countries and public-sector institutions. It said multilateral development banks must triple their funding support for climate action over the next five years, adding that more concessional finance and low-cost finance innovations were also needed. “There is now a need to develop concrete and standardised approaches that can unlock institutional capital at scale. Asset owners and other stakeholders need to be incentivised to come up with more ‘plug in and play’ solutions,” it said. The report was published by the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science and the Brookings Institution.
Climate action investment in developing countries is in the “vital self-interest” of rich countries, as well as being “a matter of justice”, says Lord Stern as new report for #COP27 calls for international investments of $1tn annually by 2030https://t.co/YKMGvWQiXN pic.twitter.com/vPqggY5WvB
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