Climate Finance-Trends and Sources
Warren Evans, world renowned expert on climate finance and a former head of the World Bank’s Environment Division, told an audience at IFAD that priorities are shifting on climate action.
The main themes of his talk were; shifting priorities, current levels of climate finance, key sources of climate finance, innovative finance and reaching an international agreement. Evans spoke about how it is now impossible to delink climate finance and development finance.
Evans spoke of a new initiative started by Michael Bloomberg, Hank Paulsen and Tom Steyer. The ‘Risky Business initiative’, will culminate in a report that will spell out the likely economic impact of climate change on U.S. business1. All three men have made fortunes in various business ventures, and all three dedicated large amounts of their wealth to philanthropic purposes. Bloomberg is a recent appointee as UN Secretary General Ban Ki Moon’s special envoy for cities and climate change.
There was also discussion of the ‘World Economic Forum’s (WEF) climate adaptation - seizing the challenge’, which captures some of the latest thinking in the field of climate adaptation and financing, with the goal of assisting decision-makers in the public and private sectors to gain a better understanding of the issue2. It suggested that 65 per cent of projected losses through climate impacts could be averted through investment in adaptation. This would require a change in approach, shifting the problem from public to private sector.
Evans went on to talk about the required innovation in climate finance. There is a need to secure insurance premium savings, create adaptation tax credits, guarantee loans and enhance credit and reduce vulnerability credits.