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jueves, febrero 2, 2023

Private sector needed to mobilize climate financing – E.U. report

“Both private and public sources of financing from the European Union and other developed countries are essential to support actions for reducing emissions and adapting to climate change in developing countries,» said commissioner for climate action Connie Hedegaard.

However, commissioner for economic and monetary affairs Olli Rehn said, “many advanced economies will face serious fiscal constraints in the years to come.”

“Therefore this cannot be paid by public money alone. We need to rely also on innovative sources of financing, in particular, in the private sector and carbon markets,” he explained.

The sector and market, with the help of multilateral and development banks, will bring in a significant amount of money.

More specifically, the European Union Emissions Trading System, the aviation sector, and private investments of business sector is expected to generate, under certain assumptions, a total of $64 billion a year by 2020.

«The E.U. is already well on track to deliver its fast start funding for the period 2010-2012. And we will also contribute our fair share to climate funding in the long run,” assured Ms. Hedegaard.

But the report stresses a much needed global cooperation to strengthen the relationship between climate financing in and development aid to developing countries.

A strong coordination with regard to governance and delivery must be resolved. This includes the well-defined reporting of financial flows and ensuring equal allocation of responsibility among developed nations.

Rich countries committed a $100 billion worth of climate financing a year by 2020, for the adaptation and mitigation measures of the developing countries. This is among the resolutions during the 16th conference of parties in Cancun, where world leaders gather to replace the expiring Kyoto Protocol climate deal.

 

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