Show us the money. At COP27, the developing world seeks financing details
- Finance Day at COP27 focuses on banks, investors, insurers
- Emerging markets require more help to pay for the transition
- UN experts name dozens of climate projects worth $120 billion
SHARM EL-SHEIKH, Egypt, Nov 9 (Reuters) – Finance took center stage at the COP27 climate talks on Wednesday as U.N. experts released a list of $120 billion worth of projects that investors could pay back to help poor countries cut emissions and adapt to the conditions. effects Global warming.
A $3 billion water transfer project between Lesotho and Botswana and a $10 million project to improve the public water system in Mauritius were among dozens of projects listed, including 19 in Africa.
“We can now demonstrate that a meaningful pipeline of investment opportunities exists in the economies most in need of financing,” said Mahmoud Moheldin, one of the UN’s designated experts known as the UN’s High-Level Champions for Climate Change, in an accompanying statement. in report.
In an attempt to counter the argument of private sector financiers that investing more in emerging markets is too risky, experts who help COP host governments do business have compiled a list of projects that could be financed more quickly.
After a year of meetings with stakeholders around the world, they published a preliminary list so that banks and others could evaluate the projects.
“We now need creative collaboration between project developers and public, private and concessional finance to unlock this investment potential and turn assets into flows,” said Moheldin, a high-profile COP27 champion.
However, another report released on Tuesday said developing countries will $1 trillion is needed in external financing every year until 2030, and then match with their own funds to meet the world’s goal of preventing unabated climate change.
In contrast, the world’s leading development banks He gave a loan of 51 billion dollars In 2021, poorer countries where private investors will invest only $13 billion, according to a recent report by lenders.
In a series of separate deals announced on Wednesday, Egypt said it had signed a partnership for its Nexus of Water-Food-Energy (NWFE) program to support climate projects with $15 billion in investments.
France and Germany also signed loan agreements to provide 300 million euros ($300.69 million) in concessional financing to South Africa to help phase out coal-fired electricity.
Italy, the UK and Sweden were among donors pledging more than $350 million to finance nature-based solutions to the climate crisis in countries including Egypt, Fiji, Kenya and Malawi.
A group of more than 85 African insurers also pledged $14 billion in coverage to help the continent’s most vulnerable communities deal with the risks of climate-related disasters such as floods and droughts. read more
US climate envoy John Kerry announced the creation of a carbon offset program called the Energy Transition Accelerator, which aims to help developing countries raise cash to finance their transition away from fossil fuels. read more
Getting money to low- and middle-income countries so they can build infrastructure, such as renewable energy plants, has long been a focus of the UN climate talks. But progress has been slow.
“While the pipeline of exciting projects is there, they will require technical and financial assistance to get to a position where they can attract the right kind of finance,” said Nigel Topping, senior COP26 champion.
“We need all actors in the system to roll up their sleeves to make this happen,” he said. “We’re not going to get anywhere near the scale of financial unlocking that developing economies need if everyone continues to pay.”
World Bank President David Malpass addressed delegates on Wednesday, highlighting the bank’s climate efforts and involvement in a partnership in which Western countries will provide $8.5 billion to South Africa for its energy transition.
Malpas’ arrival at COP27, originally scheduled for Sunday, was delayed when his flight from South Africa was struck by lightning, a source familiar with the matter told Reuters.
At Wednesday’s event, when asked about his previous comments that were seen as disparaging of climate change, Malpas again denied the claim that he is a climate change denier.
“You know I’m not. You know I’m not, so don’t misreport it,” Malpass said in response to a reporter’s question as he left the event.
Malpas has been criticized for months by campaign groups and figures, including former UN climate agency head Cristiana Figueres, who responded to a New York Times event in September about whether he believed human-made emissions contribute to global warming. At that time he answered: “I don’t even know. I’m not a scientist.”
As the comments hit international headlines, he clarified his remarks in September and said it was clear that greenhouse gas emissions were causing climate change.
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Reporting by Simon Jessop and Kate Abnett; Edited by Kathy Daigle, Frank Jack Daniel and David Gregorio
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