- Finance Day at COP27 focuses on banks, investors, insurers
- Emerging markets are demanding more aid to pay for the transition
- UN experts flag dozens of climate projects worth $120 billion
SHARM EL-SHEIKH, Egypt, Nov 9 (Reuters) – The finance sector took center stage at the COP27 climate talks on Wednesday, as UN experts unveiled a list of $120 billion worth of projects that investors will help poor countries adapt and reduce emissions. Effects of global warming.
A $3 billion water transfer project between Lesotho and Botswana and a $10 million project to improve a public water system in Mauritius are among dozens of projects listed, including 19 in Africa.
“We can now show that there is a meaningful pipeline of investment opportunities across the economies that need the most finance,” said Mahmoud Mohildin, one of the UN’s designated experts, UN chief. Called High-Level Champions of Climate Change. Report.
In an attempt to respond to private-sector financiers’ argument that investing heavily in emerging markets is too risky, experts helping COP host-governments engage in business have put together a list of projects that can be quickly financed.
After a year of meetings with stakeholders around the world, they published an initial list so that banks and others could evaluate the projects.
“To unlock this investment potential and turn assets into flows, we now need creative collaboration between project developers and public, private and concessional finance,” said COP27’s High-Level Champion Mohildin.
However, another report published on Tuesday recommended that developing countries must secure $1 trillion in external financing each year by 2030, then match it with their own funds to meet the world’s goal of halting runaway climate change.
In contrast, the world’s leading development banks have lent $51 billion to poor countries by 2021, with private investors contributing just $13 billion, according to a recent report by the lenders.
In separate agreements announced on Wednesday, Egypt said it has signed a joint agreement for its Nexus of Water-Food-Energy (NWFE) program to support the implementation of climate projects with investments worth $15 billion.
France and Germany signed loan agreements to provide 300 million euros ($300.69 million) in concessional financing to South Africa as it transitions away from coal power.
Italy, Britain and Sweden are among donors who have pledged more than $350 million to finance nature-based solutions to the climate crisis in countries including Egypt, Fiji, Kenya and Malawi.
A group of more than 85 African insurers has pledged $14 billion to help the continent’s most vulnerable communities deal with climate disaster risks such as floods and droughts. read more
US Climate Ambassador John Kerry announced the creation of a carbon offset program called the Energy Transition Accelerator, which is intended to help developing countries raise money to finance their transition from fossil fuels. read more
Getting money to low- and middle-income countries so they can build infrastructure like renewable energy plants has long been a focus of UN climate talks. But progress is slow.
“While there is a pipeline of interesting projects, they will require technical and financial support to the point where they can attract the right kind of funding,” said Nigel Topping, COP26’s High-Level Champion.
“All the actors in the organization have to roll up their sleeves to do that,” he said. “We’re not going to get anywhere to unlock the level of finance that developing economies need when everyone continues to pass the buck.”
World Bank President David Malpass addressed delegates on Wednesday, running through the bank’s climate initiatives and involvement in a partnership under which Western countries will provide $8.5 billion to South Africa for its energy transition.
Malpass’s arrival at COP27, originally scheduled for Sunday, was delayed after his flight from South Africa was struck by lightning, a source familiar with the matter told Reuters.
Malpass again rejected accusations that he is a climate change denier at an event on Wednesday when asked about his past comments that have been seen as downplaying climate change.
“You know I’m not. You know I’m not, so don’t misreport,” Malpass responded to a reporter’s question as he left the event.
Malpas has faced months of criticism from campaign groups and figures including former UN Climate Action chief Cristiana Figueres after answering a New York Times show in September about whether he believed man-made emissions from burning fossil fuels were fueling global warming. Then, he replied, “I don’t know either. I’m not a scientist.”
While these comments made international headlines, he clarified his views in September and made it clear that greenhouse gas emissions were causing climate change.
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Reporting by Simon Jessop and Kate Abnett; Editing by Katie Daigle, Frank Jack Daniel and David Gregorio
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