Developing countries need $1 trillion a year for climate action: Report

Sharm El Sheikh, Egypt:

Developing countries need to work with investors, wealthy countries and development banks to secure $1 trillion annually in external funding for climate action by the end of the decade and match it with their own funds , said a report on Tuesday.

The report, released ahead of talks on climate change finance at the COP27 summit in Egypt, said funding was needed to cut emissions, increase resilience, tackle climate change damage, and restore nature and land .

“The world needs a breakthrough and a new roadmap on climate finance that can mobilize the $1 trillion in external finance that will be needed by 2030 for emerging markets and developing countries other than China,” the report said. and commissioned by previous climate summit hosts, Egypt and the UK.

It said the total annual investment requirement of developing countries would reach $2.4 trillion by 2030, with half coming from external funding and the rest from public and private sources in those countries.

The current investment is approximately $500 million, it said.

It said the biggest growth should come from both the domestic and foreign private sector, while the annual inflow from development banks should be tripled. Concessional loans, which offer more favorable terms than the markets, should also be extended.

“Unlocking adequate climate finance is the key to solving today’s development challenges,” said Vera Songwe, one of the report’s authors.

“This means countries should have access to affordable, sustainable low-cost financing from multilateral development banks to help crowdsource investments from the private sector and philanthropy.”

Delegates at the climate summit in Egypt are expected to focus on funding issues on Wednesday.

The report also called for grants and low-interest loans from governments of developed countries, doubling from $30 billion today to $60 billion by 2025.

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