Network for Greening the Financial System (NGFS)’s Post

On today's #FinanceDay at #COP29, we are pleased to have contributed to the new Synthesis report, published by Network for Greening the Financial System (NGFS) today. Together with key NGFS members, CPI provides crucial insights on scaling up climate finance and aligning financial systems with the #ParisAgreement.

We welcome the release of the "NGFS Synthesis Report on Greening the Financial System" at COP29 and thank the NGFS for fostering collaboration among diverse stakeholders to bring this report to life, offering critical insights into the financial system’s progress toward the Paris Agreement. The report draws on several key publications, including WWF’s Sustainable Financial Regulations and Central Bank Activities (SUSREG). While climate-related measures are gaining traction within regulatory and supervisory frameworks, broader environmental factors—like nature loss—are still not fully integrated, preventing paradigm shift and systemic change we need. To address this, faster, collective action is essential to combat both climate change and nature loss in the face of nature’s alarming decline. As highlighted in our recent WWF Living Planet 2024 Report, we’re rapidly nearing irreversible “tipping points.” It’s time to double down on integrating both climate and nature into financial policies to safeguard our future. Together possible! #COP29#NGFS#Sustainable finance#Nature#Climate action#LivingPlanetReport2024 Aaron VermeulenKirsten SchuijtElisa VACHERANDAmandine FavierSiti Kholifatul RizkiahAdam NgCarolin CarellaMaria Fernanda Contreras del ValleJochen KrimphoffChristine J. Wanjiku Mwangi, CFAPina Saphira International Monetary FundOECD-OCDEThe World BankClimate Policy Initiative  

The Network for Greening the Financial System (NGFS) has released a Conceptual Note on Adaptation, focussing on practical solutions for #COP29. 🌍 What could this mean for financial institutions? NGFS’s focus on data and standards reinforces the importance of climate risk management—not just for compliance. 🔦 Importantly, we must see climate risk assessment as a tool for directing capital towards meaningful climate adaptation efforts. 💸 With improved climate risk assessment tools, financial institutions can identify the most vulnerable areas, driving capital to regions, sectors, and projects where adaptation investment is most urgently needed. This shift allows capital to flow to high-impact initiatives, supporting resilience where it matters most for communities, economies, and acting on the financial sector’s role in creating climate resilience. ⏩ As we align on common standards and pathways, the opportunity lies in using climate risk insights to shape resilient economies through targeted adaptation investments. #ClimateRisk #Adaptation #SustainableFinance #NetZero #ClimateAction #FinancialSector #GreeningFinance #COP29 Climate Risk Services

As we stand on the eve of #COP29, it's clear that a new global goal on #ClimateFinance is not just necessary but critical. Our latest briefing authored by Rob Moore outlines how the goal could lock in increased finance now whilst accelerating innovative solutions to bridge the vast gap between the current funding mechanisms and the needs of developing countries. The New Collective Quantified Goal (#NCQG) on climate finance aims to replace the existing $100bn goal with a more ambitious target. This comes at a time when the geopolitical landscape and economic forecasts present unique challenges. The NCQG seeks to uphold the trust in the Paris Agreement, foster a positive feedback loop with global climate ambition, and align closely with the International Financial Architecture Reform agenda. While COP29 will not solve all of the challenges of global climate finance, the negotiations provide an opportunity to take concrete steps and lay the groundwork for the reforms needed to achieve these ambitious goals. 🔗 Dive into our comprehensive proposals that aim to triple climate finance by the early 2030s, address systemic reforms, and unlock innovative financing sources here: https://lnkd.in/euEdyaMB Together, we can set a realistic yet ambitious pathway that meets the developing world's needs and propels global climate action forward.

In the early days of COP29 and lots of will on the ground to agree a new finance goal, but the reality of how much countries will be able to sign up to crashes against the reality of what will be needed. I was struck by two different developments yesterday - moves by the MDBs to increase their climate finance to $120bn by 2030, which is a significant but only partial realisation of their potential if they get the right shareholder support in the coming years; and the compelling but challenging path set out by Mia Mottley and other leaders at the launch of the Coalition for Solidarity Levies towards unlocking hundreds of billions of dollars through even-handed interventions in high polluting sectors - just some of the many ways of mobilising much more finance to vulnerable countries but which will not be straightforward to implement. Many of these measures can still be implemented by a big enough coalition of the willing, even if global agreement cannot be reached. Our briefing published before COP proposes that countries shouldn't choose between these two realities - they should agree the most they can possibly agree to deliver with the tools they have available now; and act to embolden efforts to unlock the more elusive bits of the puzzle by aspiring to a higher stretch target that is predicated on the need for collective action across a range of reform efforts. There is a progressive outcome to be had even in these challenging circumstances. E3G Nick Mabey Pep Bardouille Avinash Persaud Bob Ward Jamie Drummond Joe Thwaites Charlene Watson Michael Hugman Tom Evans Kevin Magron Laura Sabogal Pilita Clark Fiona Macklin Ronan Palmer Jonathan Beynon Rachel Owens Joseph Tyrrell Kaysie Brown Riya Amin Norbert Gorißen Alexandra Scott

Following the third report by the International High-Level Expert Group on Climate Finance (#IHLEG) published on #FinanceDay yesterday, the summary of the State of Delivery is a progress update on the global climate finance agenda, published with analytical support from #Systemiq. The assessment shows some positive developments, including during #COP29, but unless the pace accelerates, the climate finance gap will remain large at $3.1-$3.7 trillion by 2035. To deliver real impact, key steps on the path to #COP30 must include: 🔸 More and better, investment-ready country plans & policies - mobilising more concessional finance, beginning with an ambitious NCQG at COP29 🔸 Massively scaling up domestic resource mobilisation and focusing on climate action 🔸 Addressing debt burdens that limit climate investment - tripling MDBs finance and focusing it on mobilizing private finance. See the full report: https://lnkd.in/ebWWZuvB

Great to see the Climate Finance Transparency Guide finally published! It’s rewarding to have contributed to its development during my time at CCAP. Establishing robust governance structures and comprehensive climate finance data frameworks is crucial for scaling up financial flows required for climate projects. While the guide is designed for developing countries, I believe it offers valuable insights for all nations.

#NewBrief | Climate Finance: A Developing Country Perspective The underwhelming performance of developed countries in delivering #ClimateFinance to developing countries, complemented by long-drawn, contentious negotiations at past COPs, has undermined faith in global climate action. This makes #COP29 – dubbed the “Finance COP” – a crucial opportunity for taking concrete steps to restore trust, particularly on the matter of the new climate finance mobilisation target, the #NCQG. Our new issue brief – Climate Finance: A Developing Country Perspective – (i) provides a historical perspective (ii) spotlights financing constraints of developing countries (iii) deep dives into Party positions on climate finance definitions (iv) examines existing climate finance delivery and (v) offers recommendations to determine the contours of the NCQG. The above recommendations – spanning the desirable attributes, definition, and mode of delivery of climate finance as well as the quantum of the NCQG – constitute a framework to converge developing country perspectives onto a common ground. By approaching the topic of climate finance in a unified voice, developing countries could facilitate a breakthrough in climate finance negotiations, which so far has remained elusive. #COP29 #ClimateFinance #NCQG Arunabha Ghosh Gagan Sidhu Dhruba Purkayastha, PhD COP29 Azerbaijan Council on Energy, Environment and Water (CEEW) 🔗Read the brief here: https://lnkd.in/gw6cszDe

This is a good resource to unpack some of the concepts and current developments on climate finance from a developing country perspective. Have a read! We need to ensure that climate finance: - Does what it’s supposed to: Funds should be used for their intended purposes. - Impacts those it’s supposed to: The benefits should reach vulnerable communities and nations. - Is streamlined with other activities: Climate finance should complement and enhance other development efforts. There’s a significant need to simplify access for vulnerable countries and communities. Climate finance should be an instrument of upliftment, not a tool that traps them in a vicious cycle. It’s crucial to avoid creating new dependencies. COP29 Azerbaijan Council on Energy, Environment and Water (CEEW) #climatefinance #climateFi #impactthatmatters #makeimpacthappen

#NamasteIndia "#Optical #Illusions": #COP29 Climate Finance Controversy #Developed #nations pledged $300 billion annually by 2035, significantly #short of the $1.3 trillion deemed necessary by experts and developing nations. #Criticism from the #Global #South #Insufficient #Funding: The pledged amount of $300 billion falls far below the required $1.3 trillion annually. Experts and vulnerable nations argue this level of financing will not address urgent climate challenges. #Disproportionate #Impacts: Developing nations are the most affected by climate change despite contributing the least to global emissions. Countries like India and Nigeria criticized the agreement for not recognizing their immediate needs. #Strong Reactions: #Chandni #Raina, India's negotiator, described the agreement as an "#optical #illusion." Representatives of the Global South feel abandoned and betrayed by the Global North. #Challenges in #Negotiations Tensions Between North and South: Prolonged discussions highlighted the deep divide in climate priorities. Developing nations demanded more robust financial support to address historical inequities in emissions. Reluctance from Developed Nations: Wealthy countries hesitated to commit to higher amounts due to economic concerns and competing domestic priorities. #Implications of the COP29 Agreement #Impact on Climate Cooperation: The perceived inadequacy of commitments undermines trust between the Global North and South. Future collaboration under the Paris Agreement goals may be at risk. Barriers to Mitigation and Adaptation: Insufficient financial resources could delay critical initiatives in vulnerable regions. Progress on combating climate change globally could be hindered. #Bridging the Gap: Acknowledging the disparity between the pledged amount and actual needs is crucial. Developed nations must reassess their commitments to foster global trust and equity. #Ensuring Accountability: Mechanisms to monitor and enforce financial pledges should be strengthened. Focus on transparent and equitable distribution of climate funds. The "optical illusion" of climate finance at COP29 emphasizes the need for tangible, equitable solutions to address the climate crisis and build trust across global communities. The #Great #Escape from #Baku: Global North abandons South, denies adequate climate finance at COP29 https://lnkd.in/dp_H8ry9