B20 Summit: UN Special Envoy urges multilateral development banks to focus on climate transition capital
New Delhi [India], August 26 (ANI): The B20 Summit 2023 witnessed a discussion on ‘Financing the Climate Transition’ during its plenary session held at the Taj Palace on Saturday.
Mark Carney, UN Special Envoy for Climate Action and Finance, Co-Chair of Glasgow Financial Alliance for Net Zero (GFANZ) and Chair and Head of Transition Investing at Brookfield Asset Management, addressed the need for a shift in the operational orientation of Multilateral Development Banks (MDBs) towards mobilizing capital to catalyse the climate transition.
Carney emphasized the colossal amount of capital required to finance the climate transition, especially in challenging, hard-to-abate sectors and the community’s dependence on them.
He urged the focus to be on transition finance and highlighted the necessity for developed countries to commit around 100-150 billion USD annually to assist emerging economies in their transition efforts.
Furthermore, Carney stressed the importance of governments in emerging economies in creating an enabling ecosystem for the climate transition.
This involves establishing regulations that support nature-based solutions, reduce reliance on fossil fuels, promote renewable energy adoption, and facilitate the development of carbon markets.
The panel discussion, moderated by Lynn Forester De Rothschild, CEO of E.L. Rothschild and Founder and co-chair of the Council for Inclusive Capitalism, UK, emphasized the role of partnerships between private and public markets, as well as various stakeholders, in the success of the climate transition.
Bernard Looney, CEO of BP, UK, underscored the need to address emissions directly in the hard-to-abate sectors and prioritize energy security, access, and affordability. He emphasized that a swift and well-organized transition is vital.
Uday Kotak, CEO of Kotak Mahindra Bank, India, emphasized the importance of capital that is willing to take losses and called for collaboration between businesses and governments to fund clean technology initiatives.
He highlighted the need for governments to offer loss guarantees through gap funding.
Mark E Tucker, Group Chairman of HSBC Holdings Plc, UK, discussed innovative mechanisms globally and the importance of government de-risking.
He stressed the role of businesses in adapting to new models and announced HSBC’s commitment to providing 1 trillion USD by 2030 for the climate transition.
Verena Lim, CEO-Asia and member of the Global Management Committee at Macquarie Group, Singapore, mentioned the increasing interest from investors in funding the transition.
She highlighted the importance of accelerating the deployment of mature technologies like solar and wind for clean and low-cost electricity, particularly in developing countries.
T V Narendran, CEO and Managing Director of Tata Steel Ltd emphasized the critical role of steel in the future and the need for a global strategy for its decarbonisation.
He stressed that solutions are vital for hard-to-abate sectors and the importance of enabling policy frameworks, well-designed carbon markets, and infrastructure support for their transition.
The discussions at the B20 Summit shed light on the pressing need for innovative financial mechanisms, international collaboration, and government support to finance the ambitious climate transition required to combat climate change effectively.
