Global climate finance coalition forged at COP28 to empower emerging markets

Daily News Egypt
5 Min Read

In a significant step forward in the fight against climate change, the Global Capacity Building Coalition (was launched Saturday at COP28. This unprecedented global collaboration will work to significantly increase the availability and effectiveness of climate finance technical assistance programs for financial institutions in emerging markets and developing economies (EMDEs).

The coalition brings together some of the world’s leading climate finance organizations, including an unprecedented group of UN agencies, multilateral development banks (MDBs), standard setters, and the private sector. 

The coalition is supported by Bloomberg Philanthropies and will be chaired by Mary Schapiro, Chair of the Climate Steering Data Committee and Vice-Chair of GFANZ.

“This is the broadest coalition ever assembled to increase finance for clean energy and resilience in the global south,” said Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions. 

“The coalition is well-positioned to help more nations fight climate change in ways that promote economic growth, environmental resilience, and public health — and to do so through collaborative partnerships that empower nations to act boldly.”

The Global Capacity Building Coalition’s mission is to respond to the growing requests for capacity-building support from financial institutions in EMDEs to meet the aims of the UN and the G20 Sustainable Finance Working Group (SFWG). The coalition will focus on providing financial institutions in EMDEs with the knowledge, tools, and resources they need to develop and implement climate-resilient investment strategies.

“This unprecedented collaboration reflects our commitment to support financial institutions in emerging markets and developing economies and empower them to play a role in their country’s climate mitigation and adaptation,” said Mary Schapiro. 

“As we navigate the complex landscape of the net-zero transition, the Coalition will respond to their evolving needs and help foster resilience, sustainability, and a net-zero future.”

The launch of the Global Capacity Building Coalition is a critical step towards mobilizing the trillions of dollars in climate finance needed to support the transition to a low-carbon, climate-resilient economy. EMDEs will require $2.4trn in annual climate finance by 2030 to build resilient, sustainable economies and enable the global transition to net zero. 

Around half of this finance is expected to come from domestic resource mobilization, and so, domestic financial institutions will be critical financiers and intermediaries for providing this capital.

The Global Capacity Building Coalition is well-positioned to play a leading role in unlocking climate finance for EMDEs. The coalition’s members have a deep understanding of the challenges and opportunities facing financial institutions in EMDEs, and they have a proven track record of delivering successful capacity-building programs.

Kristalina Georgieva, Managing Director of the IMF said: “We welcome the creation of the Capacity Building Coalition on Climate Finance. Capacity development is one of the core functions of the IMF, and this important initiative would help to promote best practices in addressing climate change and foster economic sustainability.”

The Global Capacity Building Coalition’s launch is a positive development for the global fight against climate change. The coalition has the potential to make a significant contribution to mobilizing climate finance for EMDEs and accelerating the transition to a low-carbon, climate-resilient economy.

Mahmoud Mohieldin, UN Climate High Level Champion for COP27, Chair of the GFANZ Africa Network, and UN Special Envoy for Financing the SGDs said: “Climate finance for EMDEs needs to rapidly be made more efficient, sufficient, and fair. That requires enhancing the technical assistance and capacity support financial institutions in developing countries receive – including to make it more responsive to demand and needs. The launch of the Global Capacity Building Coalition is an important development to address this, and the GFANZ Africa Network will work closely with the coalition to provide support and solutions for scaling climate finance in Africa.”

Share This Article
Leave a comment