The COP28 Presidency hosted a press conference discussing sustainable financing to support the global energy transition during which measures such as lowering the cost of debt to the Global South nations to ensure those countries have access to funds that will enable their energy transition.
To achieve this goal, the press conference panelists suggested a collaboration between development banks and credit agencies to put in place banking regulations tailored to the institutions and infrastructure of the Global South’s nations. This climate finance structure aims to enable the impacted countries to adapt and recover.
Lord Nicholas Stern, an economist and one of the panelists, proposed a 2.4 trillion USD-a-year investment in emerging and developing markets outside China to ensure the recovery and adaptability of the global south to climate change. This investment will be divided amongst nations so no one country will bear the burden.
The panel emphasized the necessity for international institutions like the IMF, the World Bank, and the UNFCCC to collaborate when addressing global impact issues such as climate change, suggesting a low-risk approach to incentivize energy transition-elated projects.
These would be preexisting energy transition projects initiated by countries that need significant investment. In return, potential investors (e.g. countries/companies) can claim the amount they invest in such projects as a climate credit.
The press conference put forth a blueprint to start investing in combating climate change. It offered solutions rooted in collaborative global work between agencies with international jurisdiction to revise the financing options to both help countries in need of aid and incentivize outside investors.
