Day8

Finance

COP28 highlights the critical role of finance in driving global climate initiatives. Indeed, a recent report estimated that the developing world will require USD 2.4 trillion annually to address climate change.[6] The climate summit has seen substantial financial pledges from various stakeholders working to meet that objective, with financial commitments from COP28 alone totaling over USD 83 billion thus far.[7] Financial commitments serve as crucial building blocks for implementing sustainable solutions, fostering resilience, and mitigating the impacts of climate change globally. Pledges not only address immediate needs but also lay the groundwork for sustained efforts to combat climate change, spanning various climate action imperatives – such as renewables, technology, methane reductions, agriculture, climate adaptation, and health. Here is a summary of major pledges thus far:
1. Global Climate Solutions Fund: The UAE pledged USD 30 billion for a new fund supporting climate-friendly projects worldwide, with USD 5 billion earmarked for developing nations and USD 25 million for climate strategies.[8]
2. Asian Development Bank (ADB) Climate Investment: ADB allocated USD 10 billion for climate investment in the Philippines over the next five years.[9]
3. Latin America and the Caribbean Investment: The Development Bank of Latin America and the Caribbean (CAF) committed to investing over USD 2 billion annually through 2030 to combat climate change in the region.[10]
4. Climate Financing Venture: Charitable donors, including the Bezos Earth Fund, collaborated with the World Bank's private investment arm to generate $11 billion in investments for developing countries.[11]
5. Green Climate Fund Pledges: The Green Climate Fund, the world's largest fund supporting climate action in developing countries, received pledges of $3.5 billion during the event, including major contributions from the United States.[12]
6. Loss and Damage Fund: Contributions to the Loss and Damage Fund, designed to help poorer countries cope with climate change impacts, have totaled over USD 700 million, with notable contributions from Italy and the Netherlands. That said larger contributions are required to meet annual estimates for the cost of climate damages.[13]
7. UAE Banks' Green Finance Pledge: UAE banks committed to mobilizing AED 1 trillion (~USD 270 billion) in green finance in the future.[14]
8. World Bank's Climate Funding Increase: The World Bank stated it would aim to increase climate funding to 45 percent of total lending, translating to an annual increase of USD 9 billion per year.[15]
9. Renewable Energy Investment: Copenhagen Infrastructure Partners stated intentions to raise USD 3 billion for a new fund focused on building renewable energy projects in emerging and middle-income countries.[16]
10. Arab Energy Fund's Decarbonization Investment: The Arab Energy Fund committed to investing up to USD 1 billion over the next five years in decarbonization technologies in the Middle East and North Africa.[17]
11. Health Financing: The UAE and other global partners pledged USD 777 million in financing for eradicating neglected tropical diseases, expected to worsen with rising temperatures.[18]