COP27 is taking place from November 6 to 18 in Egypt’s Sharm El Sheikh and will see Heads of State, ministers, negotiators and activists gather to discuss climate action.
The conference aims to build on the outcomes of last year’s COP26 by tackling an array of issues critical to the climate emergency, such as the growing energy crisis, record greenhouse gas concentrations and increasing extreme weather events.
One of the key events on the agenda is Finance Day on November 9, which is designed to drive public and private finance for countries that are most vulnerable to climate change in order to build resilience.
This comes following reports that world leaders attending next month’s UN climate summit are gearing up for a renewed battle over how much financial support rich countries provide to developing nations, to help them cope with the consequences of rising global temperatures.
In addition, Caribbean small island leaders plan to lobby for their economic rights before diplomats and dignitaries from more than 200 countries at COP27. As representatives of some of the most vulnerable nations in the world to climate change, regional heads of state will request “Loss and Damage” (L&D) funding to help pay for what has become an out-of-control, climate-related debt crisis.
UN Secretary General, António Guterres haseven referred to L&D as the “moral responsibility” of rich G20 countries that are responsible for 80% of total greenhouse gas (GHG) emissions.
Bearing in mind the current geopolitical state of play, Finance Day will start with an opening Speech by Egyptian Prime Minister Mostafa Madbouly highlighting the main challenges and opportunities for climate finance from all financing sources and across all aspects of climate action.
Next up is a public finance policy session focusing on those developing countries that are facing unsustainable levels of public debt. This meeting will look at how to re-conceptualise climate debt and explore the scope for sustainable finance tools and the reallocation of Special Drawing Rights among the countries that need it most.
The theme of public finance policy will continue with a look at how to reduce the cost of green borrowing. This is because finance is vital for the green energy transition, but access to low-cost finance is uneven as the cost of capital differs substantially between regions. The session will showcase tangible solutions, deals, commitments and pledges to reduce the cost of green loans.
Accelerating energy transition is key in addressing the climate crisis yet the transition must be just and equitable, especially for communities that have relied on emissions-intensive sectors for their livelihoods. Here, there will be an emphasis on how to ensure a just transition in Africa.
As temperatures keep increasing globally, there are calls for scaling up financing to facilitate adaptation and resilience. This session will focus on addressing adaptation and look at how to increase the bankability and attractiveness of these projects to investors.
Climate finance is growing, but not fast enough to reach a 1.5°C scenario, which could halve the amount of sea level rise that happens by the end of the century. In order to increase developing countries' access to climate finance and bypass fiscal space issues, one solution consists in going beyond traditional financing to seek for below-market loans. Here, delegates will hear about the role of multilateral development banks in unlocking climate finance.
There will be a review of the roadblocks facing green private finance and a discussion of solutions to arrive at a concrete roadmap to increase the role of this key financial tool. This is with a view to encouraging the role of the private sector in climate related initiatives and climate transition and will be led by the Glasgow Financial Alliance for Net Zero.
There will be a meeting dedicated to exploring the outcomes of the Investment Climate Facility for Africa (ICF) in its efforts to integrate finance and the environment. ICF is a donor funded, private sector focused development institution whose purpose is to enhance the economic prospects of African society by working to improve the investment climate for countries in this continent.
Financial regulators can play a significant role in facilitating climate finance. This comes as innovative policies, regulatory approaches, increased transparency of reporting, clearer taxonomies and prudential regulations are proven to incentivise sustainable investments and combat greenwashing. To that end, there will be a conversation around what financial regulatory bodies can do to facilitate climate finance.
There will be a chance for finance ministers to convene and reflect their commitment to climate action at a meeting of the Coalition of Finance Ministers for Climate Action. Then there will be a call for people to acknowledge and challenge the aforementioned L&D among the world’s most vulnerable countries.
A Voice of Africa session will see a meeting of the heads of the African sovereign wealth funds to ensure the role of these funds to mobilise resources to pave the way for public/private climate action partnerships.
Find out more about COP27 here.
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