Financing Climate Action for a Green and Inclusive Future

21 April 2022. Financing Climate Action. World Bank 2022 SPRING MEETINGS

The connection between development and climate change is increasingly clear: delivering on these together will require large-scale low-carbon and resilient investments. It will also require approaches that tackle the political economy of the low-carbon transition and help communities build long-lasting resilience to climate change.

• What are the investments needed to achieve a green, resilient and sustainable future? 
• How can we unlock private finance for climate action? 
• How are countries stepping up to the challenge?

This event looked at the actions that are needed to create enabling environments, leverage different pools of capital at the right time, for specific needs, while involving communities and bringing them along in the global low-carbon, resilient transition. 

Speakers

• David R. Malpass President, World Bank Group 
• Sri Mulyani Indrawati Minister of Finance, Indonesia
• Makhtar Diop Managing Director, IFC
• Rania Al-Mashat Minister of International Cooperation, Arab Republic of Egypt
• Rhian-Mari Thomas Chief Executive, Green Finance Institute
• Yves Perrier Chairman of the Board, Amundi
• Mari Pangestu Managing Director, Development Policy and Partnerships, World Bank
• Nicholas Stern IG Patel Professor of Economics and Government, London School of Economics
• Auguste Kouamé Country Director for the Republic of Turkey, World Bank
• Hania Dawood Manager, Climate Business Development and Strategy, IFC
• Host Meriem Gray Communications Lead, Sustainable Development, World Bank

REPORT

World Bank Group (2020). Transformative Climate Finance : A New Approach for Climate Finance to Achieve Low-Carbon Resilient Development in Developing Countries # 53 p.

This report analyses options to make international public climate finance more transformative. 

The report identifies eight sets of levers to drive climate action: 

1. project-based investments, 
2. financial sector reform, 
3. fiscal policy, 
4. sectoral policies, 
5. trade policy, 
6. innovation and technology transfer, 
7. carbon markets, 
8. and climate intelligence. 

It then examines how climate finance is deployed to address barriers to action for each lever and derives general principles for transformative climate finance based on this analysis relating to allocation of climate finance, use of different financial instruments and other improvements in modalities and processes.