Show us the money: Developing world at COP27 seeks climate finance details

  • Finance day at COP27 highlights banks, investors and insurers
  • Emerging markets ask for more help to pay for the transition
  • UN experts point to dozens of climate projects worth $120 billion

SHARM EL-SHEIKH, Egypt, November 9 (Reuters) – Finance took center stage at the COP27 climate talks on Wednesday, with UN experts releasing a list of projects worth 120 billions of dollars that investors could support to help poorer countries reduce emissions and adapt to climate change. effects of global warming.

A $3 billion water transfer project between Lesotho and Botswana and a $10 million plan to improve the public water system in Mauritius were among dozens of projects listed, including 19 in Africa.

“We can now show that there is a significant pipeline of investment opportunities in the economies most in need of financing,” said Mahmoud Mohieldin, one of the UN-appointed experts, known as United Nations High Level Champions on Climate Change, in a statement accompanying the report.

To counter the argument of private sector financiers that it’s too risky to invest more in emerging markets, the experts, who are helping COP host governments engage with businesses, have drawn up a list of projects that could be funded more quickly.

After a year of meetings with stakeholders around the world, they released the initial list so banks and others could assess the projects.

“We now need creative collaboration between project developers and public, private and concessional finance, to unlock this investment potential and turn assets into flows,” said COP27 High Level Champion Mohieldin. .

However, another report released on Tuesday suggests that developing countries should secure $1 trillion in external financing every year by 2030, and then match that amount with their own funds, to meet the global goal of preventing runaway climate change.

Securing money for low- and middle-income countries to build infrastructure, such as renewable energy plants needed to replace fossil fuels, has long been a goal of climate talks. of ONU. But progress has been slow.

“Even if the pipeline of interesting projects is there, they will need technical and financial assistance to get to a position where they can attract the right kind of funding,” said Nigel Topping, High Level Champion for COP26.

“We need everyone in the system to roll up their sleeves to make this happen,” he said.

The world’s major development banks lent $51 billion to the poorest countries in 2021, with private investors contributing $13 billion, according to a recent lenders report.

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Reporting by Simon Jessop and Kate Abnett; Editing by Katy Daigle and Frank Jack Daniel

Our standards: The Thomson Reuters Trust Principles.

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