Climate finance initiative will be launched at Doha, says UNFCCC
An initiative aimed at promoting public-private financing mechanisms which have successfully supported climate change adaptation and mitigation will be launched in Doha on 6 December, as pressure on countries to clarify the question of long-term funding at the Doha summit continues. The World Economic Forum and the United Nations Climate Change secretariat kicked off the 'Momentum for Change: Innovative Financing for Climate-friendly Investment' on Tuesday, according to a joint statement on Tuesday.
The news comes after research on Monday showed that developed countries are lagging far behind their financing pledges for the first Kyoto commitment period, undermining their credibility when it comes to meeting their pledged $100bn (€77bn) 2020 target (see EDCM 26 November 2012).
"It is clear that the private sector needs to deliver significant investments to put the world on a path to a climate-secure future," Christiana Figueres, UN Framework Convention on Climate Change (UNFCCC) Executive Secretary said in the statement.
"However, given the scale of investment needed, the newness of technology solutions and the perception of risk that exists, the current level of investment is far too low. The public sector can help to unlock private finance and ensure supportive policy frameworks for climate-friendly investment."
The UNFCCC is responsible for overseeing the implementation of the Kyoto Protocol, including mechanisms such as the joint implementation (JI) and clean development mechanisms (CDM), which generate the offset credits included in the EU emissions trading system (ETS).
The World Economic Forum's Green Growth Action Alliance will help inform the new initiative. The Alliance includes more than 50 of the largest development finance banks, international financial institutions and energy firms globally. It was launched earlier this year and aims to cut greenhouse gas emissions by 30% by 2020 through investments in clean agriculture, energy, transport and other green areas.
The initiative highlights that developing countries will make up more than 60% of the world's predicted GDP growth by 2030, but that action is needed now to ensure that this growth unfolds in a sustainable way.
"Governments can use strategically targeted public monies and policies to address the risks faced by private investors, resulting in a significant increase in private capital flows for climate-friendly development," according to the statement.
Meanwhile, according to a recent EU statement, the bloc is the world's largest official development aid donor and is "on track" to deliver a pledged €7.2bn by the end of this year.
"The EU will also discuss with its developing country partners how major flows of EU climate finance can continue in 2013-2014 and beyond," according to the statement, but no further details were given.
The Doha summit started on Monday and will conclude on 7 December. MLDB
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