The cash will be needed to enable poor countries to transition away from fossil fuels, invest in renewable energy and other low-carbon technologies and deal with the effects of extreme weather, according to a report jointly commissioned by the governments. of the United Kingdom and Egypt. , and presented at the Cop27 UN climate summit. The figures, which would cover the needs of all the world’s developing economies except China, are far higher than any climate finance yet issued to help poor countries. “Nearly half of the required financing can reasonably be expected to come from local sources, from strengthening domestic public finances and domestic capital markets, including tapping into large pools of local financing that national development banks can mobilize,” the report says. However, external finance, as well as the World Bank and other multilateral development banks, must also play a key role. Nicholas Stern, the climate economist who wrote a landmark 2006 critique of the economics of climate change, was the report’s lead author. He said: “Rich countries should recognize that it is in their vital interest, as well as a matter of justice, given the serious impacts caused by their high levels of current and past emissions, to invest in climate action in emerging markets and in developing countries. “Most of the growth in energy infrastructure and consumption projected to occur over the next decade will be in emerging markets and developing countries, and if they depend on fossil fuels and emissions, the world will not be able to avoid dangerous climate change . harming and destroying billions of lives and livelihoods in rich and poor countries alike.” Financing low-carbon economic growth in poor countries would help lift billions of people out of poverty, create jobs and reduce greenhouse gas emissions. The money is also needed to help poor countries adapt to the effects of the climate crisis, for example by building more robust infrastructure and protections such as sea walls and early warning systems. For the most severe impacts of climate collapse, to which countries cannot adapt, known as loss and damage, the money will help rescue those at risk, repair vital infrastructure and heal the social fabric – services such as health and education – countries torn apart by extreme weather events such as catastrophic floods, droughts, storms and heat waves, which are likely to worsen as a result of climate collapse. Loss and damage is one of the main priorities for discussion at the Cop27 summit in Sharm el-Sheikh, which began on Sunday and will continue for a fortnight. The most important stories on the planet. Get all the week’s environmental news – the good, the bad and the must-haves Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Poor countries have pledged since 2009 that by 2020 they will receive at least $100 billion a year to help them reduce emissions and deal with the effects of extreme weather. But that target has been repeatedly missed and is not likely to be met until next year. Lord Stern said: “Given the pressure on public budgets in all countries, the role of multilateral development banks, including the World Bank, will be critical in scaling up external finance for emerging markets and developing countries and reducing the cost of capital for investors. The flow of funding from these institutions will triple from about $60 billion a year today to about $180 billion a year within the next five years. This requires a strong sense of direction and support from the country’s stakeholders and real leadership from the top of these institutions.” The World Bank has come under increasing criticism in recent months for its perceived failures to direct adequate resources to the climate crisis. The Bank will participate in discussions at Cop27.
