· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Freshfield Brukhaus Deringer or enjoy below:
🗞️ 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
Click for more news covering the latest on sustainable finance
