PEMBA, Zambia, May 23 2018 (IPS) - Climate finance has never been more urgently needed, with massive investments in climate action required to meet the goals of the Paris Agreement and avoid the devastating effects of a warmer planet.
However, it is an open secret that public financing mechanisms alone are not enough to meet the demand for climate finance, especially for developing countries whose cost to implement their conditional Nationally Determined Contributions (NDCs) and transition to low-carbon economies is pegged at 4.3 trillion dollars.
This is a huge price-tag when compared to the Green Climate Fund(GCF’s) current coffers, which are still being counted in billion terms. The GCF is one of the designated UNFCCC financial instruments created at COP 17 in Durban, South Africa.
Therefore, scaling up and accelerating innovative approaches to climate finance from multiple sources, including the private sector, has emerged as a key strategy to meet the goals of the Paris Agreement through long-term and predictable climate-smart investments.