E Co. bites 2022: What are currently the biggest challenges to unlocking climate finance?
20 July 2022, Category: All insights, E Co. bites, Tags: Climate action, climate change, Climate change adaptation, climate finance, Climate justice, climate projects, climate resilience, Green Climate Fund
As international climate finance experts, we share our key insights and personal experiences of designing low-carbon, climate-resilient development projects, across the globe. Hear the challenges we have encountered and the paths we have taken in order to successfully obtain over USD $3bn of funding from major donors, including the Green Climate Fund (GCF) and Global Environment Facility (GEF).
Climate finance means many different things to different people. There is the narrow definition of public money provided by developed countries to developing countries, and then, the much broader definition of financial and economic transformation to a low carbon future.
There are many challenges to unlocking climate finance – whichever definition you choose – there are structural, legal and regulatory challenges. Worldwide, finance that addresses climate adaptation – that is finance aiming to improve the resilience of people to climate change – lags far behind finance that addresses climate mitigation. One of the reasons for this is the difficulty in finding commercially viable investments in the absence of a regulatory framework that supports long term planning and appropriate investment. So, for example, the reinforcement of nature-based sea defences, is not easily financed because the financial benefits for people and for companies, in the short term, are not easily identified. So this is one type of challenge.
So what are currently the biggest challenges to unlocking climate finance? In my view, capacity and ownership are the most important. This includes the capacity of public and private stakeholders to identify, to structure and to implement climate change projects, and also the ownership of local stakeholders to drive forward such projects.
Let’s accelerate progress together: Get in touch with our climate finance consultants to discuss a project you’re working on. Email us at: firstname.lastname@example.org or find us at the following:
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What do you believe are currently the biggest challenges in unlocking climate finance? Let us know by writing your answer in the comments below.