Road to COP28: Climate financing - unlocking private capital to beat climate change

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🗞️ Driving the news: As the world heads towards COP28, the summit's President, Dr. Sultan Al Jaber, emphasizes transforming climate finance as a top priority
• The focus is on two main themes: the operationalization of the "loss and damage" fund and negotiations on a new climate finance goal

🔭 The context: Climate finance typically refers to funds from developed nations to assist developing ones in climate change mitigation and adaptation
• The broader definition includes domestic investment programs and sustainable finance instruments like climate-linked bonds and loans

🌍 Why it matters for the planet: The discussions aim to unlock private capital for climate action with blended finance transactions, where public funds catalyze private investments, as a key focus
• However, current mobilization of private capital by multilateral development banks is deemed insufficient

⏭️ What's next: COP28 will see the launch of the NGFS Blended Finance Handbook by the Network for Greening the Financial System, aiming to scale blended finance
• Sustainable or transition finance, which directs private capital to sustainable activities, has seen more progress with increased sustainable bond issuance

💬 One quote: "We need to transform the climate finance landscape" (Dr. Sultan Al Jaber, President of COP28)

📈 One stat: For every dollar of climate finance provided by multilateral development banks in 2021, only 25 cents in private capital was mobilized, highlighting the gap in funding for net zero projects

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