Top financiers and philanthropists are congregating in Windsor this Monday for a Climate Finance Mobilisation Forum aimed at bolstering support for emerging and developing economies in their pursuit of a net-zero, resilient transition.
The event, hosted by Energy Security and Net Zero Secretary Grant Shapps and US Special Presidential Envoy for Climate John Kerry, seeks to accelerate climate action by encouraging significant investments that align with the goals of the Paris Agreement.
To reach the target of net-zero emissions by 2050, clean energy investments in these countries need to increase by over seven times, surpassing $1trillion annually by 2030. This estimation only accounts for clean energy and does not include investments required to reduce non-CO2 emissions, combat deforestation, address climate change adaptation, and build resilience.
Shapps stressed the need for collaboration, stating that public funds alone are insufficient and that trillions in private investment are necessary to drive the scale of the transition. The UK, committed to providing £11.6billion of international climate finance, aims to unite with the US and other key stakeholders to unlock private investment and amplify global climate resilience efforts.
“Today is about uniting with our US allies and key enablers, using this world-leading expertise for the benefit of not just our own economies but those that will be most affected by climate change impacts – updating The King and President on what we’re doing to set us all on a path to net zero and greater climate resilience by unlocking private investment.
“Building on the US-UK Atlantic Declaration, today isn’t just about cutting emissions, it’s also supporting countries to achieve a secure, cheaper and home-grown energy system – to grow their economy and create jobs.”
Kerry echoed the urgency of the climate crisis and the necessity of collective action involving governments, the private sector, and philanthropy.
“The climate crisis is here. It’s caused by the unabated burning of fossil fuels, and it’s going to get worse without action. No government can solve this crisis by itself. We need to work together with the private sector and philanthropy to speed up the net zero, resilient transition.”
Emerging markets and developing economies are responsible for two-thirds of global greenhouse gas emissions, making their participation crucial in addressing climate change and achieving shared prosperity. The UK and US stand to benefit economically by supporting these nations in their transition to cleaner energy and fostering closer relationships with high-growth emerging markets.
In addition to climate change concerns, recent geopolitical events have underscored the urgency of shifting away from fossil fuels to secure, affordable, and cleaner energy sources. The mobilisation of investments and sustainable initiatives from businesses, alongside governmental efforts, plays a vital role in achieving global climate goals and reducing carbon emissions.
Speeding up action
Laimonas Noreika, CEO of climate tech company HeavyFinance, also commented on the significance of unified efforts to support developing nations in accelerating climate action.
“Achieving global climate goals requires a unified effort to share investment and ideas to support developing nations in accelerating climate action,” said Noreika. “Investment in areas such as stopping deforestation and no-tillage farming is vital to reduce emissions as well as build a resilient climate.
“It is great to see world leaders taking charge, but it is also important for businesses to play their part through sustainable initiatives and investment. For those unable to participate in activities such as retrofitting, investing in Article 9 funds offers a climate-positive route to support global efforts, committing resources for sustainable practices that can make a significant impact on carbon reduction.”