edie publishes free Primer report on the state of play of climate finance
For Climate Finance Week, edie has published a new in-depth report summarising the state of the green finance market and the key trends, frameworks and developments in the build up to COP27 in Egypt later this year.
This report provides a need-to-know “progress update” on the fast-changing world of climate finance from a corporate sustainability perspective. The report will examine how crucial climate finance is in driving the net-zero transition and accelerating sustainable development. Specifically, it will summarise the progress made at COP26 in this area, and the key hopes and expectations as we move towards COP27 later this year.
Estimates from the Intergovernmental Panel on Climate Change (IPCC) suggest that as much as $1.6trn to $3.8trn is required annually between 2016 and 2050 in order to alleviate the climate crisis in line with the goals of the Paris Agreement.
Promising progress was made at COP26, with developed nations pledging to finally deliver $100bn in annual climate finance, but whether this will be delivered remains to be seen, especially given the current cost of living crisis and increased energy costs facing some parts of the world.
The global green finance market has grown by more than a hundred-fold over the last decade, but still only accounts for 4% of the global finance market, according to TheCityUK, with the support of BNP Paribas.
While COP26 and the efforts to rebound and rebuild from the pandemic have increased the focus on climate finance, more needs to be done in the build-up to COP27 and beyond to ensure that nations and markets align to build a net-zero economy.
Against a perfect storm of declining biodiversity, increasing resource scarcity and mounting stakeholder pressure – the investment community must enact an ambitious green recovery plan which accelerates a net-zero, resilient and just transition.
Responding to these external pressures requires radical rethinks and approaches to the way the global population produces and consumes, travels and uses energy. Such a seismic overhaul will require unprecedented sums of money pumped into the green industrial revolution.
This report outlines how efforts to respond to the climate crisis have changed approaches to finance, and whether a green revolution can sweep across the sector to ensure that key targets are met at COP27 later this year.
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