【COP29 Side-Event】Next-Gen Climate Finance Enabling system change for climate and sustainability
Day：2024.12.16
event ｜
Person in charge
| identity | belong to | title |
|---|---|---|
| Ryosuke Takahashi | Operations Strategy Department | Assistant Director |
Overview
Date: 2024/11/13
Sponsors: International Development Finance Club (IDFC)
Location (Name of Pavilion)：IDFC Pavilion
Speaker
| identity | belong to | title |
|---|---|---|
| Megumi MUTO | JICA | Special Advisor to JICA President |
| Javier DIAZ | Bancoldex(Banco de Comercio Exterior de Colombia S.A. ) | President |
| Serge EKUE | BOAD (West African Development Bank) | President |
| Rémy RIOUX | AFD (Agence Française de Développement) | CEO |
| Tamsin Ballard | Principles for Responsible Investment (PRI) | Chief Initiatives Officer |
| Eric Usher | UNEP FI | Head |
| Melanie Robinson | WRI | Global Director, Climate, Economics and Finance |
| Nancy Vandycke | World Bank | Senior Climate Change Advisor |
| Claire Eschalier | Mainstreaming Climate in Financial Institutions secretariat | Head |
| Arghya Sinha Roy | Asian Development Bank (ADB) | Director for Climate Change Adaptation |
| Amy Lewis | Inter American Development Bank (IDB) | Senior Operations Specialist |
Primary objectives and outcomes
- At the COP29, the International Development Finance Club (IDFC), of which JICA is a member, released a joint document titled "Making Finance Work for Climate" together with the United Nations Environment Programme Finance Initiative (UNEP FI), the Principles for Responsible Investment (PRI), and Mainstreaming Climate in Financial Institutions Initiative on new climate finance goals.
- The joint event was held with relevant parties to launch the joint document.
Content of the discussions
- RIOUX, CEO of AFD, stated that in relation to the Transformational Finance, which was mentioned in the joint document, the key is to transform the entire financial system, as stated in Article 2.1 of the Paris Agreement, and that innovative risk reduction on a project basis is also important. He also noted that it was significant that public and private financial institutions across a wide region published the joint document.
- Diaz, President of Bancoldex, emphasized the importance of Transformational Finance, citing examples such as MIGA's support for carbon markets and the issuance of bonds for Amazon conservation by the Inter-American Development Bank.
- PRI Head Ballard explained the need for US$2.4 trillion in annual investment in emerging and developing countries (excluding China) for the energy transition, and stated that it is necessary to address investment barriers and strengthen systems for implementing Nationally Determined Contributions (NDCs), and that raising ambition will also be a signal to private companies.
- World Resources Institute's Robinson stated that it is important for each country to place climate change and nature at the core of their development plans, and that in order to make investments, it will be important to increase pipeline projects, use funds as a catalyst, and transform the financial system itself.
- Vandycke of the World Bank stated that 120 billion US dollars in climate finance will be provided to low- and middle-income countries by multilateral development banks (MDBs), and stressed the importance of providing policy support such as long-term strategies. He also stated that a common approach to measuring climate results has been compiled, and that it is important to consider the impact.
- Usher of UNEP FI stated that it is important to create an environment and market that will allow developing countries to receive private investment that contributes to the climate, and that blended finance is also necessary for this. He also stated that in addition to aligning with the goals of the Paris Agreement at the business level, it is important to implement transition plans at the business entity level.
- Muto, Special Advisor to the JICA President, stated that multi-sector efforts are important, and that it is important to address synergies and trade-offs. He introduced that JICA emphasized the importance of technical cooperation when formulating the joint document.
- Eschalier from the Mainstreaming Climate in Financial Institutions Secretariat stated that while measuring impacts is not necessarily easy, understanding the impacts is necessary for the transition, and that engaging with clients is important.
- Arghya Sinha Roy from the ADB noted the importance of adaptation and resilience, and introduced measures to bridge the barriers to financing, such as measuring adaptation outcomes and aligning projects with global adaptation goals, as well as utilizing policy-based loans and financial intermediary loans.
- Lewis from the IDB stated that in order to strengthen climate finance, it is important to create mechanisms to increase incentives, and that it is important to create change at the system level. He noted that policy-based loans and technical assistance are useful in bringing about institutional change.
Group Photo
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