By Favour Nnabugwu
Global experts meeting during a panel session at the 27th global climate summit (COP27) in Egypt have endorsed a new climate finance roadmap to mobilize $1 trillion in annual external finance required by emerging markets and developing countries—excluding China.
The roadmap draws on the findings of a recently released report, Finance for climate action: Scaling up investment for climate and development(link is external), produced by a panel of experts chaired by Vera Songwe and Lord Nicholas Stern.
The discussions during the panel session underscored the need to boost effectiveness of policies by tailoring them to countries’ needs. The report advocates a rapid and sustained investment push to drive a strong and sustainable economic recovery from overlapping crises and to deliver on shared development and climate targets. concessional lending arm to low-income countries, was launching a climate action window to mobilize up to $13 billion for climate adaptation for vulnerable countries.
Adesina reiterated the call for International Monetary Fund Special Drawing Rights (SDRs) to be channeled to African countries through the African Development Bank. “SDRs will play a big role in helping Africa’s climate action, and the African Development Bank is well-positioned to leverage this reallocation four times to help mobilize financing for countries that need it most,” he said.
Stephanie Pfeifer, Chief Executive of Institutional Investors Group on Climate Change(link is external)—an association representing investors—said strong policies were vital in carbon pricing to phase out fossil fuels.
“The world needs development finance at scale for different types of risks, and data must also be made available to stimulate increased private sector investment into climate finance,” Pfeifer said.” If we get the whole system working together, we can make a lot of progress,” she added.
United Nations Climate Change Champion Mahmoud Mohyedin moderated the session, titled Facilitating finance necessary for delivery of commitments.
