The lead authors of a major new analysis of climate finance for COP28 today (Monday 4 December 2023) called for all countries to commit to a substantial rise in investment to deliver the goals of the Paris Agreement.

Dr Vera Songwe, Professor Lord Nicholas Stern and Amar Bhattacharya were speaking at the official launch at COP28 of the second report of the Independent High Level Group on Climate Finance, ‘A climate finance framework: decisive action to deliver on the Paris Agreement’, which was commissioned by the COP27 and COP28 Presidencies and the United Nations High-Level Climate Champions for COP27 and COP28.

Dr Songwe, Chair of the Liquidity and Stability Facility, said: “Our analysis shows that emerging market and developing countries, other than China, are being left behind on clean energy. Global clean energy investments hit an all-time peak in 2023, driven largely by growth in solar photovoltaics and electric vehicles, but more than 90 per cent of the increase in such investment since 2021 has taken place in developed economies and China. Low- and lower-middle income countries accounted for only 7 per cent of clean energy spending in 2022. Challenges include higher interest rates, unclear policy frameworks and market design, financially-strained utilities and a high cost of capital. There will need to be a massive increase in investment in these countries if they are to contribute to a tripling of global renewable energy capacity by 2030. There will also need to be a very big rise in investment in nature.”

Professor Lord Nicholas Stern, Chair of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, said: “The results of the Global Stocktake completed here at COP28 indicate that the world is not on track to realise the goals of the Paris Agreement. The reason for this failure is a lack of investment, particularly in emerging market and developing countries outside China. A substantial increase in investment in zero-emissions and climate-resilient technologies and infrastructure will not only enable the world to deliver on the Paris Agreement’s goals, but will also drive sustainable, inclusive and resilient economic development and growth. We calculate that there will need to be US$2.4 trillion per year investment in emerging market and developing countries by 2030. The central challenge is to accelerate and implement the fostering and financing of this investment from a range of sources, as our report lays out.”

Amar Bhattacharya, Senior Fellow in Global Economy and Development in the Center for Sustainable Development at the Brookings Institution, said: “We are pleased to see the publication at COP28 of the UAE Leaders’ Declaration on a Global Climate Finance Framework, signed by the leaders of 12 countries, to guide new models of climate finance that make it available, accessible and affordable. Our report is fully supportive of the Declaration. Our report provides a roadmap and detailed agenda of action that can guide concrete action by all stakeholders.”


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