The outcome of the UN climate conference is one of ambivalence: while there is strong momentum for phasing out coal and pressure being placed on reluctant climate action, for the 1.5 degree limit to come within reach, China in particular needs to improve its climate target soon and the US needs to implement its very well. In addition, results on the issue of Loss and Damage are insufficient.
Two years after the 2015 Paris Agreement, the world’s multilateral development banks (MDBs) committed to align their financial flows with the landmark climate pact’s goals.
Now, four years later, it’s clear that as a group, the MDBs are still a long way away from realizing their commitment throughout their portfolios. While MDBs have focused on aligning direct investments with Paris goals, this effort is not sufficiently ambitious, nor is it complete. They have paid less attention to whether their indirect investments support climate goals. And policy-based loans — a favored instrument during times of crisis — also remain a blind spot.
At the second Finance in Common (FiC) Summit on 19 and 20 October 2021, 500 public development banks could jointly raise their ambitions to support sustainable development globally. The fastest growing development bank in the world, the Asian Infrastructure Investment Bank (AIIB), plays a crucial role for infrastructure investments in Asia where the majority of future infrastructure projects will take place. A framework report produced by Germanwatch and collaborating NGOs from Asia analyzes the AIIB’s opportunities to align with the Paris Agreement and suggests ten climate-resilient and pro-poor principles for more sustainable and socially inclusive infrastructure.
COP26 is often considered the most important since the Paris Agreement was adopted in 2015. Its context underlines the urgency: In the summer of 2021, people across the globe experienced extreme weather events and their consequences. The climate summit in Glasgow – in conjunction with the G20 summit shortly before – holds the potential to significantly accelerate climate protection efforts worldwide.
Development finance institutions (DFIs) play a key role in aligning financial flows with low-emission, climate-resilient development pathways. Many have committed to support the objectives of the Paris Agreement. In this working paper Germanwatch, the NewClimate Institute and the World Resources Institute take a closer look at financial intermediary lending by DFIs, proposing a phased approach for aligning indirect investments.
Global efforts to realise rapid emission reductions and build resilience must be ramped up without further delay to meet the 1.5 °C Paris target and enable vulnerable communities to deal with climate impacts. Where individual states reach their limits in implementing the SDGs and Paris objectives, bilateral or multilateral partnerships can provide support for the necessary transformation to net-zero-emission and resilient societies. Partnerships are indispensable to achieve whole-societal transformation, as they enable countries to share knowledge, experience and resources. Germany entertains solid climate cooperation with several countries in the Global South. In this study, PAREMIA - Partnerships for ambitious resilience and mitigation action, we analyse preconditions for such partnerships with 13 countries and suggest thematic starting points for three of them – Chile, India and South Africa.
In the upcoming week, the 13th meeting of the WIM ExCom will take place (April 27-30 2021). One very important issue to discuss will be – among other issues – the work of the Expert Groups as they play a major role in carrying out the activities of the ExComs workplan. Especially the work on Action and Support, Slow-onset Events and Non-economic Losses will be discussed and concrete steps for developing the respective workplans with concrete activities will have to be decided upon. The meeting will take place in a virtual format and even over one year in the COVID-19-pandemic this setting still poses some substantive challenges to the discussions and inclusiveness as well the involvement of observers.