Officials call for better coordination
Coordination and coherence is critical to achieve the objectives of the Paris Climate Agreement.
The message came out loud and clear from the high level meeting of industries at the C.O.P.23 in Bonn Germany.
According to a communique issued to the media, it identifies that “increasing the ambition to act on climate change and the mobilization of necessary funding to do so, should be considered as a unique challenge for governments and the entire financial sector.”
“They (high-level representatives) therefore defined what governments, cities, states, companies and multilateral institutions should do to ensure the pace and amount of investment required, before and after 2020, to achieve the purpose of the Paris Agreement, namely to contain the rise in average global temperature well below 2 degrees Celsius above preindustrial levels and as close as possible to 1.5 degrees Celsius.”
Director of the U.N.E.P. Finance Initiative, Eric Usher said: “At the heart of climate challenge, there are two emergency gaps we need to fill: ambition and lack of investment.”
“It is now up to national governments to increase the ambition of their C.D.N. (contributions determined at national level) to bridge the emissions gap of 17 GtCO2e (gigatonnes of equivalent carbon dioxide) which we will always be faced in 2030.”
“However, with regard to the ‘investment gap’, we need all financial actors - public, private, national, international - including markets and regulators to work together effectively, to mobilize at least $1.5 billion of climate financing required each year.”
“Let this day of finance be the beginning of a new chapter looking to the global financial innovation, cooperation and impact,” he said.
Moreover, every dollar invested in reducing greenhouse gas emissions and adaptation to climate change is twice as profitable because the results directly support the only sustainable future contained in the Sustainable Development Program at the 2030 of the international community.
The communique further points out the climate finance is growing faster than ever in a context of dynamic and growing markets for renewable energy, electric vehicles, green buildings and climate smart agriculture, supported by exponential advances in financial instruments innovative, indices and markets.
“However, while discussions take place at the U.N. Conference on Climate Change, there is much to do to obtain financing and investment at the scale required to ensure a fully decarbonized global economy and climate resilient by 2050.”
The high-level Finance Day for Climate to C.O.P.23 focuses on investments to reallocate capital flows to low-carbon growth and resilient, with an additional initial capital or risk-sharing in order to generate financial returns and resource savings.
They also highlighted the inclusion to ensure that the capital flow reaches the countries and communities with the greatest needs in terms of sustainable growth and reducing vulnerability and doubling flows to developing countries by 2020.
The communique further indicates the need for integration to ensure the long-term consequences of climate change and sustainability factors are considered systematically used in the decision making and financial responsibility in terms of opportunities and risks, to avoid instability the financial system.
“Innovation to allow the flow of ‘clean’ transactions, in particular the Risk Sharing for emerging and frontier markets, for growth of national markets.”
“An infrastructure that provides climate resilience by exploiting the inexhaustible capacity of the financial system for innovation and speed of action and transparency on financing and investments through simple and harmonized standards, which in turn support plans and climate investment policies tailored to the needs, priorities and national capacities, attracting various sources of capital and more risk the private sector.”