· 6 min read
As the world passes the halfway mark for achieving the Sustainable Development Goals (SDGs) by 2030 and faces a rapidly closing window to avoid catastrophic climate disruptions, the negotiations at the recent United Nations High-Level Political Forum on Sustainable Development (HLPF) highlighted the urgent need for integrated approaches to foster climate-resilient and equitable development.
The severe impacts of climate change are already undoing hard-won development gains and exacerbating vulnerabilities, especially across the developing world. Extreme weather events are increasing in frequency and intensity, resulting in severe damage to economies, infrastructure, food systems and human health worldwide. However, developing countries bearing minimal historic responsibility for emissions face disproportionate climate risks owing to lower adaptive capacities.
Meanwhile, progress remains sluggish across most SDG targets, with only limited headway made on reducing poverty, expanding quality education and healthcare, and improving gender equity. Lack of financing and insufficient policy action continue to hamper advancement. According to the UN, only around a third of the SDG targets are on track, demanding a profound reorientation of priorities.
Critically, developed nations also continue falling short of delivering on climate finance commitments to support developing countries. The $83 billion in climate finance flows reported for 2020 underestimates true contributions due to ineffective reporting practices, while still falling short of the unmet annual $100 billion goal.
Moreover, over 90% of this finance takes the form of loans rather than grants, constraining accessibility for resource-poor nations already burdened by debt and economic losses from the COVID-19 pandemic. Insufficient reliable climate funding undermines capacities for mitigation and adaptation across the developing world.
These financing gaps continue despite sustainable investment opportunities surging globally. Alarmingly, climate finance flows are failing to reach those most vulnerable. Despite more than doubling from $360 billion in 2011 to over $850 billion in 2021, over three-quarters of climate financing is directed towards middle- and high-income countries, bypassing the poorest nations bearing the greatest climate risks, according to Climate Policy Initiative data.
Closing investment gaps by aligning finance with development and climate needs
With sustainable infrastructure investment needs in developing countries exceeding $1 trillion a year, aligning global finance with sustainable development remains imperative but challenging. While private capital could support climate-resilient development significantly, risk perceptions deter investors. Short-term profit motives dominating financial systems also often ignore social and environmental returns.
Meanwhile, tensions endure between developed and developing country positions and priorities. Developed countries continue resisting demands to rapidly phase down fossil fuels due to energy security concerns and pressure from powerful lobbies. Developing nations remain focused on securing promised climate finance and funding for loss and damage from unavoidable climate impacts.
Creating and sharing tools to accurately price climate risks could help overhaul financing models to reward sustainable investments. Stronger disclosure requirements and standards around social and environmental factors are enhancing transparency. Partnerships between public and private finance can blend instruments and capabilities to de-risk and better align investments with climate-resilient development needs. South-South cooperation also increasingly mobilizes technology, knowledge and financing for sustainability.
While complex challenges like risk perceptions, policy environments and global divisions persist, innovating financing systems to direct flows towards integrated climate and development solutions remains imperative.
Recognizing and seizing climate and sustainable development synergies
The negotiations and events at HLPF revealed strong momentum around harnessing the deep connections between climate action and sustainable development to maximize co-benefits. Transitioning rapidly away from fossil fuels towards renewables and efficiency can simultaneously advance mitigation, adaptation, health, and poverty alleviation. Sustainable transportation also fosters decarbonisation along with equitable access and economic development. Ecosystem restoration boosts resilience and biodiversity while supporting community livelihoods. Circular approaches to production and consumption reduce both emissions and waste.
However, effectively seizing these synergies requires evidence-based, inclusive policymaking. Impact assessments help identify and maximize socioeconomic, health and environmental co-benefits across sectors while mitigating trade-offs. Multi-stakeholder processes enable collaborative planning and capacity building. Mainstreaming climate and SDGs through governance at all levels fosters integrated implementation.
Principles of equity, inclusivity and climate justice must also underpin financing flows to ensure solutions benefit the most marginalized groups. Knowledge and data gaps persist around interlinkages, constraining integrated planning and investments. Budgetary and capability constraints pose further obstacles for LDCs and developing countries.
Nonetheless, growing recognition of the deep, multifaceted connections between climate and broader sustainable development is spurring promising pathways for synergistic solutions. Developed cities and countries in particular possess immense capacities and financing that could empower integrated progress globally if directed strategically towards vulnerable developing nations.
Harnessing the strategic role of developed cities
Developed cities and urban centres play an increasingly pivotal role in both global climate action and sustainable development. They occupy the intersection between critical mitigation and adaptation needs. Cities also serve as centres of innovation, finance, governance and technology to devise solutions scalable worldwide.
Developed cities possess immense capacities and financing that could empower climate-resilient progress globally if strategically leveraged. Sustainability leaders like Singapore and Hong Kong offer key insights into catalysing such solutions through strong policy, technology expertise and financing capabilities.
For instance, Hong Kong built deep knowledge around green finance tools, including pioneering green bonds in Asia. It can direct such capabilities towards mobilizing climate adaptation and mitigation financing across developing Asia's vulnerable cities. Meanwhile, Singapore has spearheaded electric vehicle policies and low-carbon buildings in a high-density urban environment. Its urban development model offers important learnings for regional developing cities.
Partnerships between developed city experts and developing country policymakers can powerfully accelerate knowledge transfer and capacity building. Developed cities can also utilize their financial strength to insure climate risks, pioneer carbon trading and clean energy investments and expand climate finance across the Global South. Rather than traditional donor-recipient dynamics, such collaborations represent mutually empowering North-South and South-South exchanges to achieve sustainable development.
Realizing true climate leadership: bridging divides through partnerships
Moving forward, the world urgently requires courageous leadership and unprecedented collaboration to bridge enduring divides between the developed and developing world. The principles of equity and climate justice must be upheld, especially by countries and cities with the greatest capabilities and historic responsibilities.
Developed nations and cities must fulfil – and go beyond – their climate finance pledges, shifting from loans to grants to expand developing countries’ access and self-determination. Concrete technological and knowledge exchange partnerships can accelerate climate action and resilience among the most vulnerable communities.
Rather than finger-pointing or isolationism, open dialogue and transparency around needs and capacities can build mutual understanding and trust. Developing countries also have a key role to play in undertaking governance reforms, expanding engagement and accountability with marginalized communities, and fostering enabling environments for sustainable development.
Ultimately, securing our shared climate and development goals hinges on forging win-win partnerships founded on equity and justice. The cooperation of all actors – subnational, national and multilateral – is essential to succeed in transforming entrenched systems and power imbalances.
With climate change and development challenges growing increasingly dire and intertwined, the world needs a profound reorienting of priorities and financial flows coupled with unprecedented collaboration between all stakeholders. Developed cities and countries must embrace their pivotal opportunity to lead by enabling and empowering the most vulnerable regions.
As global leaders prepare to gather at pivotal forums ahead on climate, development finance and justice, they face historic choices between transformative partnership or continued paralysis that imperils humanity’s future. The progress made at HLPF offers hope but remains far below the scale and urgency these existential crises demand. We still have time to choose wisdom, courage and solidarity. But that window is closing rapidly.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
