With four months until COP28, partner organizations of the Mangrove Breakthrough recently met to accelerate efforts to unlock $4 billion USD in funding and secure the future of 15 million hectares of mangrove forests by 2030.
Day 3: Catalyzing finance for urgent near-term action
Trillions of dollars worth of investments are needed each year to achieve the rapid, far-reaching transformations required to create a net-zero emissions world and build resilience for the most vulnerable.
But to meaningfully improve the scale, quality and pace of investment and finance, especially in developing countries, a significant shift in momentum is required.
To that end, the UN Climate Change High-Level Champions today publish a new report, ’Assets to Flows’, that summarizes key insights on what it will take to convert financial assets into flows. The report is derived from a series of regional forums co-hosted by the COP27 Presidency, the UN Regional Economic Commissions, and The High-Level Champions for COP26 & COP27, that took place this year with the objective to connect investors with the trillion dollar opportunity to finance climate action. For further insights and resources derived from the forums including the Climate Champions Extended Compendium of Climate-Related Initiatives, visit our Finance page.
From a commitment by the Africa insurance industry to underwrite $US 14 billion of cover for climate risks by 2030, to Net Zero Financial Alliances publishing progress reports, read on to discover what’s in store for Finance Day.
TODAY’S KEY ANNOUNCEMENTS
- The Assets to Flows report identifies key insights from the regional forums, reflecting the priorities of each region and highlighting perspectives from the diverse forum participants on what more is needed to further develop projects and attract investment.
- Project pipeline development: In addition to the Assets to Flows report, the COP 27 Presidency, the High-Level Champions and the United Nations Regional Commissions, have released an extended compendium comprising a further 128 projects. They also highlight variations in project maturity and deal size – from US$ 10 million to US$500 million.
- The Africa Climate Risk Facility is an initiative of The Nairobi Declaration on Sustainable Insurance (NDSI). Its signatories are committing to underwrite $US 14 billion of cover for climate risks by 2030. It’s the first time signatories have made this financial commitment.
- The Independent High-Level Expert Group on Climate Finance commissioned earlier this year by the COP26 Presidency together with the COP27 Presidency and the High Level Champions, co-chaired by Vera Songwe and Lord Nicholas Stern released their report today. Titled “Finance for Action: Scaling up investment for climate and development,” it includes recommendations for scaling up long-term finance for developing countries including the need to integrate climate and development in a holistic manner.
- Net Zero Asset Managers initiative (NZAM) announces initial targets for 86 investors as the total number of asset managers committing to net zero increases to 291. Less than two years since the initiative launched, the latest disclosures take the total number of asset managers that have set initial targets to 169 and represents $US 21.8 trillion committed to be managed in line with achieving net zero by 2050 or sooner.
- The Net-Zero Asset Owners Alliance (NZAOA) announces later today that it stands at 80 members with US$10.9 trillion in Assets Under Management (AUM). NZAOA highlighted in their Second Progress Report (Sept 2022) that 44 members have set short-term (2025 and 2030) decarbonization targets. These members represent US$7.1 trillion – two thirds of the total AUM.
- Today, the UN-convened Net-Zero Banking Alliance (NZBA) launches its first Progress Report (available at 9am CET on 9 Nov), which captures the intermediate decarbonization targets of over 60 members. The NZBA has nearly tripled in size in just 18 months: from launching in April 2021 with 43 founding members, the Alliance is now comprised of 122 members in 41 countries, representing about 40% of global banking assets.
- Paris Aligned Asset Owners (PAAO) initiative publishes its first Progress Report and initial target disclosures for a further 13 signatories. The Inaugural Progress Report showcases innovation and best practice amongst asset owners for turning net zero commitments into action. The new targets mean 40 asset owners have disclosed initial targets since March 2021.
- To convert net-zero ambitions into actions, GFANZ has released the Financial Institution Net-zero Transition Plans report, which provides voluntary, pan-sector recommendations and guidance for financial institution net-zero transition plans that are credible and ambitious. The report identifies the four key financing strategies that collectively define transition finance.
- BloombergNEF (BNEF) has published the Mobilizing Capital Into Emerging Markets and Developing Economies report providing a snapshot of current conditions for energy transition investment in Emerging Markets (EMs) and Developing Economies (DEs). Highlighting the decline in total financing, BNEF calls on all major stakeholder groups to raise their efforts to help EM&DEs transition to lower-carbon energy.
- The Lightsmith Group launches a water harvesting technology pilot in Papua New Guinea with funds from its recently launched Climate Resilience and Adaptation Finance and Technology-transfer facility (CRAFT).
- The Critical Business Actions for Climate Change Adaptation Report – is published by the World Economic Forum (WEF). As companies are becoming acutely aware of climate impacts on their business, they need a framework for responsible action. This paper offers a clear framework while bridging the language of business with the language of climate adaptation, showing how companies can look after their interests while being part of the solution to a major shared global challenge
- The V20 and UNEP FI’s Principles for Sustainable Insurance are progressing a Sustainable Insurance Facility – a project pipeline facility to assist V20 membership in scoping financial protection needs of micro , small and medium-sized enterprises. The aim is to facilitate project concept and proposal development.
- The UN Climate Change High-Level Champions are calling for action across three Sharm el-Sheikh Adaptation Outcomes for Finance: for public finance actors to increase the volume and share of A&R finance, for private finance actors to help mobilise the $140 billion to $300 billion needed annually by 2030, and for insurers to institutionalise a longer-term industry approach to A&R. The finance deep-dive report provides additional detail on the Sharm el-Sheikh Adaptation Outcomes for Finance and offers solutions for how they can be delivered. At COP27, the Climate Champion’s team also released technical reports across these impact systems, exploring the adaptation outcomes and partner implementation underway.
- The Maritime Just Transition Task Force launches a new action plan setting out recommendations to upskill seafarers to meet shipping’s decarbonisation goals. The plan is in response to findings from new research which warns that as many as 800,000 seafarers will require additional training by the mid-2030s.
- Leaders from Western Indian Ocean countries share progress on the Great Blue Wall – since the launch of the Great Blue Wall at COP26 in Glasgow, two seascapes have been officially designated: The Quirimbas Seascape in Mozambique and the Tanga Pemba Seascape in Tanzania. In addition, the IUCN and Ocean Hub Africa have launched project incubators in both of these seascapes to provide technical assistance and know-how to local entrepreneurs. More than 50 regenerative blue economy projects have been launched as a result of this support.
GLOBAL CLIMATE ACTION EVENTS SCHEDULE
FOR MORE INFORMATION AND WEBCAST, ACCESS HERE
Futures Lab: Accelerating Climate Collaboration
Location: Action Room 1 (Ibis)
Time: 10:00 – 11:30
Marrakech Partnership Implementation Lab: The Imperative for Subnational Climate Financing
Location: Room 2 (Lotus)
Time: 10:00 – 11:30
Marrakech Partnership Finance Action Event: From Ambition to Action – Mobilising Finance for Climate Solutions and Resilience
Location: Action Room 1 (Ibis)
Time: 12:00 – 14:00
Marrakech Partnership Implementation Lab: Financing Resilience
Location: Action Room 2 (Lotus)
Time: 14:30 – 16:00
Special Event: Regional Finance Forums
Location: Action Room 1, (Ibis)
Time: 14:30 – 15:30
Local initiative on Green and Smart Projects
Location: Action Room 1 (Ibis)
Time: 15:30 – 17:00
COP27 Talanoa Dialogue Unlocking SIDS Breakthroughs
Location: Action Room 2: Lotus (Area B: Building 21) Blue Zone
Time: 16:30 – 18:00
Ceremony Prince Talal International Prize for Human development climate action
Location Action Room 1 (Ibis)
Time: 17:00 – 19:00
Leveraging the African insurance industry to create resilient African economies
Location: Climate Action Zone
cominTime: 17:00 – 18:00
The Children and Youth Pavilion
For the first time ever at a UNFCCC Conference, children and young people will have a dedicated space at COP27 alongside world leaders, ministers, prominent non-State actors and other delegates. Designed to amplify children and youth voices within global climate policymaking, the COP27 Children and Youth Pavilion will be entirely led by young people and has been co-created and run by influential child and youth networks. A full programme of events is here.
Stop by The Resilience Hub
The Buildings Pavilion
The Institutional Investors Group on Climate Change (IGCC) and World Business Council for Sustainable Development (WBCSD), on behalf of the #BuildingtoCOP Coalition host a thematic event at 3::00pm on “Financing the transition towards a net zero built environment”, a critical sector responsible for 40% of global greenhouse gas emissions.
Speakers include; Zoe Knight (HSBC Bank, Middle East), Eoin Murray (Federated Hermes), Marcene Mitchell (WWF), Mikkel Bülow-Lehnsby (NREP), Elizabeth Wangeci Chege (SE4All), Geraldine Picaud (Holcim), Dame Jo da Silva (Arup), Guy Grainger (JLL), Susan Grey (S&P Global).
No More Fairy Tales: stories to save our planet
Before we can build the resilient zero carbon economy that we have promised future generations, we must first imagine it.
Stay inspired by reading today’s story drawn from an anthology of short stories written by a variety of authors such as Kim Stanley Robinson, Paolo Bacigalupi and others. These stories present positive visions of what a sustainable society might look like and how we might get there.
IN CASE YOU MISSED IT…
The High-Level Champions and the Race to Zero community welcome the recommendation of the United Nations’ High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities and the response of the United Nations Secretary-General António Guterres. The Secretary-General highlighted the importance of all net-zero voluntary initiatives to accelerate efforts to standardize progress reports in an open format and via public platforms that feed into the UNFCCC Global Climate Action Portal. He also expressed his belief that the UNFCCC should play a decisive role – and invited the Executive Secretary of the UNFCCC secretariat to present a plan early next year.
COP27 Day 2 saw the launch of the Sharm-El-Sheikh Adaptation Agenda, a comprehensive, shared agenda to rally global action around 30 adaptation outcomes that are needed to address the adaptation gap and achieve a resilient world by 2030.
A new Africa Carbon Markets Initiative (ACMI) was inaugurated at CO27 yesterday with the objective to support the growth of carbon credit production and create jobs in Africa.
The Yearbook of Global Climate Action was launched yesterday, providing an overview of the state and scope of global climate action in 2022. It outlines what is needed to accelerate sectoral systems transformation, features case studies of real-world climate action projects, highlights some key global climate action topics – particularly regionalization and accountability – and presents the UN Climate Change High-Level Champions’ contribution to these issues.
The COP26 and COP27 Presidents, the UNFCCC Executive Secretary and the UN Climate Change High-Level Champions for COP26 & COP27, Nigel Topping and Dr. Mahmoud Mohieldin, yesterday opened the Global Climate Action Agenda at COP27 with their event “Making Good On Promises”
WHO ARE THE HIGH-LEVEL CHAMPIONS?
The UN Climate Change High-Level Champions enhance and strengthen the engagement of non-Party stakeholders in collaborating with Parties, to deliver the goals of the Paris Agreement. To connect the work of governments with the many voluntary and collaborative actions taken by cities, regions, businesses, investors and civil society, at COP 21, countries decided to appoint two High Level Champions.
The current Champions are Mr. Nigel Topping and Dr. Mahmoud Mohieldin. Working with the Marrakech Partnership, they build on the legacy of their predecessors to engage with non-Party stakeholders and activate the ‘ambition loop’ with national governments. Their work is fundamentally designed to encourage a collaborative shift across all of society towards a decarbonized economy so that we can all thrive in a healthy, resilient and net-zero world.
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