SAVING our planet from the worst effects of climate change won’t be cheap. A new report from the United Nations says that the world will need to mobilize $90 trillion in public and private capital over the next 15 years.
As a point of comparison, global gross domestic product in 2015 was $73 trillion. But there is no question that the world needs to ramp up its transition to a low-carbon, environmentally sustainable and resilient economy, and to do so rapidly. The question is, how do we pay for it, given the limited availability of government funding, particularly in developing countries?
The answer: private financing. The good news is that there is a global abundance of private capital. To unlock these riches, governments must create conditions that encourage private investment in clean technologies and sustainable development. With smart, well-designed and coordinated policies, financing models and instruments like bonds and incentive programs, countries have the potential to solve some of the planet’s most pressing environmental challenges while still maintaining economic growth.
That is why it is essential for world leaders meeting in New York this week for Climate Week to stay focused on building an international consensus around “green finance.”
Understanding how government can spur this type of investment was a focus of the recent G20 summit meeting in Hangzhou, China. For the first time, these countries reached an agreement on a set of principles to govern green finance and recognized its potential for stimulating economic growth. This is an essential first step in creating an international financial system to support green projects and for providing guidelines for countries on policies to encourage their banking systems to make green investments.
To read the full article from the New York Times, please click here.
Where can you find Customer Services for WordPress