- Global experts consent to a new climate finance roadmap to mobilize more robust financing for climate action.
Leaders supported the new climate finance pathway to mobilize $1 trillion in annual external investment necessary by emerging markets and developing nations – excluding China – during a panel discussion at Egypt’s 27th global climate summit (COP27).
The plan is based on research from a panel of experts led by Lord Nicholas Stern, chair of the Grantham Research Institute, and World Bank economist Vera Songwe, who recently published a study titled Finance for climate action: Scaling up investment for climate and development.
The panel session’s talks highlighted the necessity of improving policy efficacy by adjusting it to the demands of other nations. As a result, the report recommends increased investment to achieve shared development and climate goals and a speedy and sustained economic recovery from converging crises.
According to Songwe, investment priorities must take into account the modernization of the energy sector, the increasing climate change vulnerability of developing nations, and the repair of past damage to biodiversity and natural resources.
African Development Bank President Dr Akinwumi Adesina decried the inadequate flow of climate finance to Africa. “The whole conversation about rich nations paying Africa $100 billion cannot even compensate Africa,” he said.
The African Development Bank (AfDB) is mobilizing $25 billion through initiatives like the African Adaptation Acceleration Programme (AAAP), a plan created by the Bank and the Global Center on Adaptation in 2021, to scale up adaptation action across the continent, according to Adesina. He claimed that industrialized nations had contributed to AAAP thus far.
Adesina reiterated the demand that Special Drawing Rights (SDRs) from the International Monetary Fund (IMF) be distributed to African nations via the AfDB.