Key points
- Acting on climate is about transforming our economies, particularly our energy systems, through investing in net zero, adaptation, resilience and natural capital. Achieving this transformation will not be easy. It requires strong investment and innovation, and the right scale of finance of the right kind and at the right time.
- The failure to deliver the climate finance commitment of $100 billion per year by 2020 made by developed countries at successive COPs has eroded trust. The world needs a breakthrough and a new roadmap on climate finance that can mobilise the $1 trillion per year in external finance that will be needed by 2030 for emerging markets and developing countries (EMDCs) other than China.
- A major, rapid and sustained investment push is needed to drive a strong and sustainable recovery out of current and recent crises, transform economic growth, and to deliver on shared development and climate goals.
- The key investment priorities must encompass transformation of the energy system, respond to the growing vulnerability of developing countries to climate change, and restore the damage to natural capital and biodiversity.
- Country/sector platforms driven by countries can bring together key stakeholders around a purposeful strategy, scaling up investments, tackling obstacles or binding constraints, ensuring a just transition and mobilising finance, especially private finance.
- The scale of the investments needed in EMDCs over the next five years and beyond will require a debt and financing strategy that tackles festering debt difficulties, especially those of poor and vulnerable countries, and that leads to a major expansion of both domestic and international finance, public and private, concessional and non-concessional.