climate finance: Explained: What is climate finance and why the world needs $90,000,000,000 to go green by 2030

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As world leaders gather in Sharm el-Sheikh in Egypt to develop strategies to mitigate the impact of climate change by reducing emissions, financial support is needed to address these concerns.

To reduce emissions, suitable infrastructure must be built to promote green energy. For this, according to World Bank data, all countries must invest up to 90 trillion dollars by 2030.

These investments, according to the World Bank, can be recouped through the transition to a green economy. This transition can create new economic opportunities and new jobs, he added.

This concept is known as climate finance and it is one of the important items on the agenda of the ongoing COP27 summit.

“World leaders gathering in Sharm el-Sheikh, Egypt to discuss the global climate negotiation at COP27 must recognize that the climate crisis needs immediate systemic solutions rather than new announcements without any action. impactful. They must respect and align with the principle of loss and damage, mitigation and adaptation, and climate justice. All countries should contribute in a fair and equitable way to phasing out dependence on fossil fuels and to implement stringent actions to halve emissions by 2030, on the path to zero emissions,” said Avinash Kumar, Climate and Energy Campaigner at Greenpeace India.

Responding to the climate crisis requires collective action from all countries, cities, financial actors, businesses and individuals.

Among these concerted efforts, developed countries pledged to jointly mobilize $100 billion a year by 2020, from a variety of sources, to meet the urgent mitigation and adaptation needs of developing countries, the ministers said. United Nations.

There has been renewed interest from companies and some major investors in adopting sustainable business plans compatible with a 1.5 degree Celsius future, as policymakers recognize the vast opportunities for growth to come in the global transition to a low-carbon economy by 2050.

However, much greater progress is needed and the journey for businesses and investors, overall, is only at the beginning, the UN added.

Recognizing that their portfolios are now more aligned with a 3.5 degree future, major pension funds and investment firms are now beginning to scale at scale by working with their asset managers and portfolio companies. to decarbonize and align with net zero goals.

Kumar, however, informed that most developed countries have failed to meet their commitment to mobilize $100 billion per year by 2020 to help developing countries mitigate and adapt to climate change.

“They are certainly not doing enough to meet their commitments. This (COP27 summit) is the last chance for developed countries to ensure that low-income countries have access to the resources needed to prepare for the adverse effects of climate change and decarbonize their economies.

“The next few years are going to be crucial in the fight against climate change. There is an urgent need to transform sectors such as energy, transport, agriculture, food, land use, etc., from a high carbon intensity to carbon sequestration,” he warned.

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