Now accepting applications for Fast Company Middle East’s Most Innovative Companies. Click here to apply.
Acting on climate change requires significant investment and innovation and the correct scale of finance. The world needs a new roadmap on climate finance, especially to increase private sector investment and finance for climate.
Momentum is growing among mainstream investors, partly driven by the commitment to net zero. However, cross-sectional risks impede the mobilization of private climate finance at scale.
Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and COP28 President-Designate, in his remarks, urged the private sector to play a leading role in mobilizing sustainable climate finance to achieve the goals of the Paris Agreement and keep global warming to 1.5 degrees Celsius.
Al Jaber called for new and innovative ways to reduce risk and attract more private investment in bankable clean energy projects.
“Collaboration between the public and private sector will be key to making the much-needed new financial system a reality,” he said.
“Programs such as the $4.5 billion Africa green investment initiative set a clear example of how public, private, and development capital can be deployed to mobilize further capital and deliver green projects,” he added.
One of the key goals of the COP28 Presidency is to create a new global climate finance framework that can deliver the $4.5 trillion needed to meet urgent climate targets.
This will require global collaboration and effective action. Domestic financial systems also need to be strengthened so that local finance can be used to support long-term clean energy investments.
During his visit to the NYSE, the COP28 President-Designate stressed the importance of rebuilding global trust by fulfilling previous commitments, such as the $100 billion annual target for climate funding, the replenishment of the Global Climate Fund, and the operationalization of the Loss and Damage Fund agreed at COP27.
“The existing global financial architecture is nowhere near where it needs to be, with the lack of available, accessible, and affordable finance an obstacle to progress in the fight against climate change,” Al Jaber said. “We need a truly inclusive approach towards tackling climate change, and both development banks and aid programs must help deliver this.”