Apparently, the world will have to transition to clean and resilient infrastructure to protect communities from the worst impacts of climate change. To do so, however, sufficient funding is needed. Read this GreenBiz article to know more:
The climate finance architecture — the system of specialized, public funds that help countries implement climate mitigation and adaptation projects and programs — is crucial if the world is to overcome the climate change challenge. These funds play a valuable role in everything from deploying renewable energy to helping smallholder farmers cope with drought to restoring degraded forests, and often mobilize even larger volumes of funding from the private sector and other sources.
Yet the climate finance architecture has become too complex. Over the past 25 years, dozens of national, regional and international climate funds have been created. Each new fund responded to needs and gaps that existed at the time, but this has led to a rather complicated system:
Complexity creates two problems. First, contributor countries have a harder time deciding where to put their money for maximum impact, because some funds do similar things. Meanwhile, prospective recipients in developing countries must spend scarce time and effort learning how to navigate this system to access financing. Overlapping roles and inefficiencies among funds mean the current climate finance architecture isn’t fully meeting countries’ needs.
The Paris Agreement on climate change, signed by 193 countries last year, calls for a major realignment of all financial flows towards low-emission and climate-resilient investments. Now is the time to strengthen the public financing architecture to deliver this outcome.
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