Why is it in the news?
- Released at COP28 of UNFCCC by the Independent High-Level Expert Group on Climate Finance (IHLEG).
· formed by COP26 Presidency.
· IHLEG is mandated to develop policy options and recommendations to promote investment for the UNFCCC Paris Agreement.
- Global climate finance committed has more than tripled over the last decade, but remains insufficient.
- Climate finance is concentrated in developed economies and China, primarily focused on mitigation rather than adaptation.
- Debt is the predominant form of climate finance, and a significant portion stays within the country of origin.
- Concerns persist about the lack of transparency in measuring and delivering climate finance.
- Advocate for an integrated climate finance framework to meet Paris Agreement goals, involving four sources of finance.
- Domestic public resources: Boost tax revenues, eliminate harmful subsidies, and implement carbon taxation.
- Private Finance: Increase by more than 15 times on current levels to meet the needs of Emerging Markets and Developing Countries.
- Multilateral Development Banks: Triple the level of support by 2030, accessing new sources of capital and guarantees with strong shareholder support.
- Concessional Finance: A fivefold increase by 2030, with developed countries leading by tripling the amount of bilateral concessional finance.
|· The UK announced a US$2 billion contribution to the Green Climate Fund (GCF), the world’s largest climate fund established under the Cancun Agreements in 2010, serving as the financial mechanism of the UNFCCC and Paris Agreement.
· The UAE set up ALTERRA, a $30 billion fund dedicated to investing in clean energy and other climate projects worldwide.