Climate Finance Towards a Sustainable Economy
Several stakeholder in the financial sector, economists, representatives of public institutions and from COP22 met on Wednesday 16 November to discuss the topic of climate finance.
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The term climate finance refers to all investments, public or private, and regulations that contribute to combating climate change and to ensure the transition to a sustainable economy.
As a reminder, in 2009, developed countries pledged to mobilize some 100 billion USD per year for climate finance by 2020; A commitment confirmed in Paris at COP21 and extended until 2025. However, the Intergovernmental Panel on Climate Change (IPCC) estimates that the stabilization of greenhouse gas emissions at a level that would allow to stay below 2 degrees, not to mention the safest 1.5 degrees, requires investment of some $ 13 trillion for many vulnerable countries up to 2030; which will provide them with multiple benefits for health, economy and the development of clean energy sources.
All the personalities present were on the same wavelength: financial institutions had to go beyond simply releasing funds and agree to put in place new regulations and financial mechanisms. Among the innovative tools discussed, green bonds are very successful. This is a conventional bond, except that it must guide investors towards “sustainable” projects, that is, compatible with environmental protection and the reduction of greenhouse gas emissions Greenhouse. The problem is that there are currently no clearly defined criteria for defining this type of investment.
