Ahead of the Green Climate Fund (GCG) meeting in Bahrain on Tuesday October 16, the Executive Secretary of UN Climate Change, Patricia Espinosa, reminded attendees that “the recent Special Report from the IPCC emphasizes how little time remains to limit global temperature rise to 1.5°C” and “never has finance played a more central role to the overall climate regime itself”.
In light of this announcement, the GCG approved 73 climate finance projects totaling USD 3.5 billion. This amount must be put in stark contrast to the hundreds of billions USD that are needed annually to back the transition into a low-carbon economy.
More green for more greenbacks?
The “good” news is that emergencies usually open the door to financial opportunities and create yield, making environmentally friendly projects more attractive. Indeed, governments have no choice but to invest (research, subsidies) or legislate (regulatory constraints) to combat climate change and to meet short-term requirements. In both cases (free money and legal obligation), investors will benefit the situation that could lead to greener choices.
The “bad” news is that this might happen only if all governments jointly decide to fight climate change avoiding environmental dumping and delocalization. The recent Conference of Parties post-2015 (Morocco and Fiji) and their limited achievements in terms of negotiations (emissions budgets, funds for developing countries, etc.) was not reassuring. Alas, we look to the next international meeting in Katowice, where the next Rulebook describing future Nationally Determined Contributions (NDC) content will be discussed. Perhaps there we will have a more promising vision of the world’s ability to cooperate.
Emeric Nicolas, Head of Data Science Dpt. - Sources: Beyond Ratings, UNFCCC