Developing and emerging countries need to invest over $2 trillion annually by 2030 to avoid the negative impacts of climate change, according to a United Nations (UN)-backed report.
The report, released ahead of the 27th Conference of the Parties (COP27) to the United Nations (UN) Framework Convention on Climate Change, emphasized the need for financing to reduce emissions, increase resilience, cope with the damage caused by climate change, and restore nature and land.
“The world needs a breakthrough and a new roadmap on climate finance that can boost the $1 trillion in external finance needed for developing countries outside China by 2030,” said the report prepared by Egypt, which is hosting COP27, and the UK, where COP26 was held.
About $1.4 trillion of the finance should come domestically from private and public sources, according to the report released on Tuesday.
Current investments in emerging and developing economies outside China are about $500 billion.
“Solving development challenges today depends crucially on unlocking climate finance,” said Vera Songwe, one of the report’s authors.
“This means that countries need access to low-cost and sustainable finance from multilateral development banks to help mobilize private sector investment and philanthropic donations,” Songwe added.
The report also called for a doubling of grants and low-interest loans from governments of developed countries from around $30 billion a year to $60 billion by 2025.
Delegates at the climate summit in Egypt are expected to focus on financing issues on Wednesday.
