24 September 2014
Financial sector pledges to mobilise USD 200 billion to fight climate change in developing countries
Governments, investors and financial institutions pledged on 23 September 2014 to mobilise USD 200 billion by the end of 2015 for low-carbon programmes in developing countries, giving a significant boost to the UN goal of reaching USD 100 billion annually by 2020.
‘This will serve as a catalyst in finalizing a universal and meaningful agreement at Paris on climate change in 2015’, Secretary-General Ban Ki-moon said as he hosted the largest ever summit of world leaders on climate change at the UN Headquarters to prepare the ground for a global accord at the Paris summit.
The agreement combines public and private financing, including pledges by donor and developing countries to capitalise the Green Climate Fund aimed at helping developing countries shoulder the burden of slashing emissions.
‘The Summit has created a platform for new coalitions and has brought leaders from both public and private sectors across the globe to not only recognize climate risks, but to agree to work together’, Mr. Ban said. The private sector announcements were made by an unprecedented coalition of financial institutions, pension funds, insurance companies, development banks and commercial banks which had never previously acted together on climate change at such a large scale.
The Summit also marked a major advance in efforts by governments and businesses to set a price on greenhouse gas emissions, a step that offers investors and consumers an accurate reflection of the true cost of goods and services. More than 50 countries and 500 companies endorsed the need for developing mechanisms that would adequately reflect the true costs relating to pollution and emissions.
Source: UN News Centre | Financial sector to help mobilize $200 billion to fight climate change in developing countries