By Faridat Salifu
With a particular focus on the critical need for climate finance, the spotlight has once again turned to the significant disparity between the demand for climate finance and the actual resources available at COP28 in Dubai.
As the host of this year’s conference, the United Arab Emirates pledged an ambitious $270 billion in green finance by 2030 through its banks, while several development banks have escalated their funding efforts, including committing to pause debt repayments in the event of disasters.
Notably, Saudi Arabia, the region’s biggest economy and the world’s largest oil producer, has been conspicuous by its absence at the U.N. summit, with top officials, including Prince Abdulaziz bin Salman, the energy minister and key climate negotiator, and Crown Prince Mohammad bin Salman, not taking part in scheduled events.
A report released during the conference estimated that emerging markets and developing countries will require $2.4 trillion annually for investments aimed at reducing emissions and addressing the challenges posed by climate change. Co-author Nicholas Stern highlighted the urgent need for increased investment from a variety of sources to meet the goals of the Paris Agreement.
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Further pressing the urgency, vulnerable countries already grappling with costly climate disasters are requesting additional support through a newly-formed disaster fund. Current pledges, however, only amount to around $700 million, raising concerns about the adequacy of financial commitments.
Barbados Prime Minister, Mia Mottley, a prominent voice in global discussions about mobilizing climate finance, has emphasized the need for urgent decision-making and proposed innovative funding solutions, including taxes on financial services and oil and gas profits, to bolster climate funding.
Addressing the need for global cooperation and financial support, U.N. Secretary-General, Antonio Guterres and other delegates have called for an end to fossil fuel subsidies, underlining the critical role of finance in translating ambitions into tangible action.
The commitment from the UAE’s banking system to lend more to green projects, along with the pledges from France, Japan, and various financial institutions for climate and development initiatives, signals a global momentum towards sustainable finance solutions. Additionally, the involvement of private sector partners in launching a climate research and advisory hub to promote financing options in the region highlights the increasing importance of private investment in addressing climate change challenges.
As the largest-ever representation of business convenes at the annual U.N. summit, there are heightened hopes for additional private investment toward climate causes.
