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Transition finance post-COP28 commands attention at AVPN panel discussion

Transition finance post-COP28 commands attention at AVPN panel discussion
25 Apr 2024 08:36

MAYS IBRAHIM (ABU DHABI)

Following the conclusion of the COP28 United Nations Climate Change Conference in Dubai four months ago, the global conversation has pivoted towards fast-tracking climate finance to address the pressing challenges of transitioning to a sustainable future. In a panel discussion titled “The Post-COP28 Imperative: Fast-tracking Climate Finance,” experts convened to analyse the current landscape and discuss strategies for accelerating progress.

This took place on Wednesday during the AVPN Global Conference 2024, held in Abu Dhabi under the patronage of His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Development and Fallen Heroes’ Affairs and Chairman of the International Humanitarian and Philanthropic Council. Under the theme “One Asia, One Future”, the event brings together more than 1,500 investors, philanthropists, researchers, policymakers, and other impact professionals to tackle critical social and environmental issues.

Transition finance emerged as a focal point of discussion, with panelists emphasising its critical role in facilitating the shift away from high carbon-emitting industries towards more sustainable alternatives. 
Samir Suleymanov, Director of Finance at the COP28 Secretariat, reflected on the unprecedented nature of COP28, citing widespread recognition from finance leaders of its significance in driving forward a new narrative and fostering optimism.

He credited the UAE’s leadership in hosting the conference and underscored the importance of framing the climate conversation in a way that inspires action rather than resignation.

Addressing the role of the UAE in facilitating a just transition in developing economies, Suleymanov emphasised the need to align climate considerations with economic growth imperatives, particularly in countries not historically responsible for environmental damage. He advocated for smart development strategies that leverage technological advancements to build more competitive and climate-consistent economies.

Varad Pande, Partner & Director of Boston Consulting Group (BCG), highlighted the scale of the climate finance challenge, noting that current funding falls far short of the trillions required annually to address mitigation, adaptation, and resilience needs.

He estimates that approximately $85 billion in new commitments towards climate finance were made at COP28. Pande also highlighted significant UAE announcements at COP28, including the establishment of ALTÉRRA, a $30 billion fund, the world’s largest private investment initiative for climate action, aiming to mobilise $250 billion globally by 2030.

Despite the notable progress made in recent years, the challenge remains substantial according to Pande. 
Around $1 trillion are annually allocated for climate finance; however, getting to net zero by 2050 will require $3-5 trillion worth of funding yearly, he noted.

Pande further emphasised the importance of diversifying investment allocations to address underfunded sectors and regions, particularly in the Global South, which receives less than 10% of current climate capital, despite presenting significant opportunities for low-carbon and resilient infrastructure development.

Sophia Cheng, Chief Investment Officer of Cathay Financial Holdings and Chair of the Asia Investor Group on Climate Change (AIGCC), underscored the need for collective action and innovative financing mechanisms to bridge the gap between funding availability and project readiness.

She called for greater collaboration among financial institutions and emphasised the importance of tailored support for projects at different stages of development.

The speakers shed light on the multifaceted nature of the climate finance challenge and the necessity of concerted efforts from both public and private sectors to mobilise resources effectively. As the world looks ahead to COP29 and beyond, the discussion stressed that the imperative to accelerate climate finance remains paramount in the fight against climate change.

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