The 27th Conference of Parties (COP27) to the United Nations Framework Convention on Climate Change ended on 18 November with signals of important progress and clear steps for more ambitious action.
The Net-Zero Banking Alliance welcomes the historic announcement of an international financial vehicle for loss & damage at COP27. This funding mechanism will offer critical support to the world’s most vulnerable as they adapt to and recover from the adverse physical impacts of climate change that are accelerating across the globe. We can only effectively tackle climate change if we ensure a just transition for all and if all countries work collaboratively to fully implement the Paris Agreement. It is now essential that countries take steps to operationalise and capitalise the fund so that it can start enabling concrete action.
The Alliance is pleased to see progress on the just energy transition partnership – the JETP – in South Africa and the establishment of other such partnerships in Indonesia and Viet Nam. Innovative approaches to mobilizing finance through public-private partnerships are key to tackling the climate crisis, creating economic opportunity, and supporting a sustainable and just energy transition. These partnerships, which bring together public and private sector participants, will enable acceleration of the phasing down of fossil fuels and the ramping up of renewable energy in the relevant countries. Banks have a critical role to play in such partnerships and Alliance member banks already are actively involved in their development. Going forward the Alliance will stand ready to support the JETPs as they unfold and deliver.
There is however still more to do, the Alliance would like to see Countries’ Nationally Determined Contributions (NDCs) raise ambition and calls on world governments to take the necessary action to align with the 1.5° pathway. The Alliance and its members stand ready to work with the public sector to continue the momentum in mobilizing climate and transition finance, in particular for developing countries.