Thẻ: Climate finance

What is climate finance and why do we need more of it?

~ Đào Thu Hằng ~ Bình luận về bài viết này

UNDP.org October 2, 2023

Climate Finance visual 1

Summary

  • Climate finance refers to financial resources and instruments that are used to support action on climate change.
  • Examples of climate finance include grants provided by multilateral funds, market-based and concessional loans from financial institutions, sovereign green bonds issued by national governments, and resources mobilized through carbon trading and carbon taxes.
  • Investments in climate action can yield results that dramatically outweigh the upfront costs, yet significant funding gap remains to advance the green transition and enhance resilience in developing countries.
  • Current financial flows for climate change mitigation need to increase at least three times, if we are to limit global warming to 2°C or below and achieve the Paris Agreement targets.
  • UNDP is one of the major entities supporting countries access and effectively use climate finance.
What is climate finance?

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The Role of Concessional Climate Finance in Accelerating the Deployment of Offshore Wind in Emerging Markets

~ Đào Thu Hằng ~ Bình luận về bài viết này

Offshore wind will be critical to achieve the world’s decarbonization and sustainable development goals. Although the cost of offshore wind has dropped dramatically over the past decade, there will be an initial cost premium when developing offshore wind in emerging markets due to a variety of risks and constraints in establishing a new market. Concessional climate finance could help countries overcome this initial cost barrier to help reduce costs for future projects and lay the foundation for the development of successful offshore wind markets.  

This report from World Bank’s Energy Sector Management Assistance Program (ESMAP) and International Finance Corporation (IFC), finds that concessional climate financing is essential to unlock offshore wind in emerging markets and estimates that US$15 billion in concessional climate financing, consisting of both grants and loans, could catalyze offshore wind deployment across ten emerging market countries.   

Full report https://www.esmap.org/concessional-finance-for-offshore-wind?deliveryName=DM195051

Analysis: Paris climate summit gives fresh impetus to development bank reform

~ Đào Thu Hằng ~ Bình luận về bài viết này

reuters.com

By Simon Jessop, Leigh Thomas and Tommy Wilkes June 23, 20237:05 PM GMT+2Updated 11 days ago

New Global Financial Pact Summit in Paris
World leaders and finance bosses attend the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. The aim of the two-day climate and finance summit was to set up concrete measures to help poor and developing countries whose predicaments have been worsened by the devastating effects of the COVID-19 pandemic and the war in Ukraine better tackle poverty and climate change. Lewis Joly/Pool via REUTERS
  • Summary
  • Roadmap for genuine change’ -Barbados’ Persaud
  • Eyes on IMO meet as shipping tax idea gathers steam
  • Critics say summit fell short of world’s needs
  • PARIS, June 23 (Reuters) – A Paris summit to discuss reforming the world’s financial system scored some notable wins that should tee up greater action before climate talks later this year, though some participants were disappointed with progress to address poorer states’ debt.

  • The Summit for a New Global Financing Pact saw French President Macron host around 40 leaders, many from the Global South, to debate changes to multilateral finance institutions in the face of climate change and other development challenges.
  • Much of the discussion centred on the key requests of developing nations, framed through the “Bridgetown Initiative” led by Barbados leader Mia Mottley, and her adviser Avinash Persaud said he was pleased with the outcome of the talks.
  • “It’s a roadmap for genuine change,” he told Reuters on the sidelines of the talks. “What’s emerged here is a real … understanding of the scale and pace of what is required.”
  • Among the highlights were confirmation that the richer world will likely hit a long-overdue target of providing $100 billion annually in climate finance to poorer countries, a long-delayed debt deal for Zambia, and a package to boost Senegal’s renewable energy capacity.
  • The World Bank and others also said they would start adding clauses to lending terms that allow vulnerable states to suspend debt repayments when natural disaster strikes.

  • Yet it was the wording of the final statement from attendees and subtle changes in the tone of discussions behind the scenes that gave hope to Persaud that even greater change was coming.

  • Specifically, for the first time, the document acknowledged the potential need for richer countries to provide fresh money to multilateral development institutions like the World Bank. This came alongside a plan to draw on more of their current assets, to the tune of $200 billion over 10 years.

  • Another first was in the explicit target for multilateral development banks to leverage “at least” $100 billion a year in private sector capital when they lend.

  • A reference was also made to finding “new avenues for international taxation”, as well as other Bridgetown Initiative requests including offering investors foreign exchange guarantees.
  • “That was widely discussed here and (there’s) lots of support behind an initiative that’s happening outside of Paris, at the International Maritime Organisation in a couple weeks time, on a levy on shipping emissions,” Persaud added.
  • Still, the summit was not without its critics.
  • “Unfortunately, the Paris Summit has not provided the breakthrough needed to find the funding for our planet’s survival,” Teresa Anderson, Global Lead on Climate Justice for ActionAid International, said, pointing to new funding pledges being loans or temporary debt relief instead of grants.
  • All eyes now turn to more traditional events later in the year, including the International Monetary Fund and World Bank annual meetings, a G20 meeting in September and the COP28 climate talks in Dubai.
  • Persaud said his focus would be on making sure the plan to scale up multilateral development bank lending was in place by the time of annual meetings in October, and that pilot work began on reducing the cost of capital for developing countries.
  • The summit, held against a backdrop of criticism that the world is moving far too slowly to address climate change, was a success in that it delivered a roadmap requiring specific actions by specific dates, some observers said.
  • “They’ve got a clear timetable of what they want to see happen and it’s that timeline that puts the pressure on and means that it’s harder to just kick things into the long grass,” said Sonia Dunlop from think tank E3G.
  • Reporting by Simon Jessop, Leigh Thomas and Tommy Reggiori Wilkes, editing by Mark Heinrich

    • What Is “Loss and Damage” from Climate Change? 8 Key Questions, Answered

    ~ Đào Thu Hằng ~ Bình luận về bài viết này

    WRI.org

    The planet has already warmed by 1.1 degrees C (2 degrees F) due to human-induced climate change. Millions of people today are facing the real-life consequences of higher temperatures, rising seas, fiercer storms and unpredictable rainfall. Rapidly reducing emissions is essential to limit temperature rise and secure a safer future for us all, as is making major investments to protect communities from severe impacts that will continue to worsen.

    Yet collective efforts to curb greenhouse gas emissions and adapt are currently not enough to tackle the speed and scale of climate impacts, meaning that some losses and damages from climate change are inevitable. How countries handle these losses and damages has been a key issue at UN climate negotiations and beyond.

    Here, we provide an explainer on the concept of loss and damage and what’s needed to address it:

    1) What Is Loss and Damage?

    “Loss and damage” is a general term used in UN climate negotiations to refer to the consequences of climate change that go beyond what people can adapt to, or when options exist but a community doesn’t have the resources to access or utilize them. This could include the loss of coastal heritage sites due to rising sea levels, or the loss of homes and lives during extreme floods.

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    Climate Finance in Southeast Asia: Trends and Opportunities

    ~ Đào Thu Hằng ~ Bình luận về bài viết này

    fulcrum.sg

    PUBLISHED 11 FEB 2022

    Qiu Jiahui

    MELINDA MARTINUS|QIU JIAHUI

    The Covid-19 crisis has stalled the delivery of much-needed climate finance to developing countries. For Southeast Asia, a region frequently cited as being one of the most vulnerable regions threatened by climate change, the broken promise of climate finance is highly disappointing.

    INTRODUCTION

    Climate finance has been one of the most contentious issues in global climate politics. At the 2009 United Nations Climate Change Conference (COP 15), developed countries committed to mobilising by 2020 US$100 billion climate finance annually to assist vulnerable countries. The pledge has been key to building trust between states to limit global warming to well below 2 degrees Celsius, as specified in the Paris Agreement.

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    Following the Money Isn’t Enough: How Civil Society Organizations Provide Accountability for Climate Adaptation Finance

    ~ Đào Thu Hằng ~ Bình luận về bài viết này
    WRI.org
    by Nisha Krishnan – November 2020

    This paper highlights how civil society organizations can play critical roles in establishing transparent and accountable climate finance systems that put communities at the center of decision-making. It draws from the Adaptation Finance Accountability Initiative’s experiences in Ethiopia and Uganda as well as lessons learned from similar efforts in Bangladesh, Kenya, and the Philippines. It offers valuable information to help civil society organizations build their engagement and capacity on climate adaptation finance.

    Download full report here

    Three ways national development banks can unlock climate-smart growth

    ~ Đào Thu Hằng ~ Bình luận về bài viết này
    ODI.org
    28 January 2020
    Samantha Attridge
    ATMs in Yangon, Myanmar. Photo: Asian Development Bank, 2015. CC BY-NC-ND 2.0

    There is no doubt the world is facing a climate emergency. We must all act now to shift to climate-smart growth by redirecting our current investment and financing flows towards the Paris Agreement. National development banks (NDBs) have huge untapped potential to support this transformation. But our new report finds that despite their collective firepower – which far exceeds that of the multilateral and bilateral development banking system – NDBs have yet to step out of the shadows and into the international and domestic limelight. It is now time for NDBs to claim their rightful place at the policy table.
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