February a Huge Month for Climate Finance Initiatives
The UN Framework Convention on Climate Change has issued promising news for the month of February 2017. A number of climate finance initiatives and new financing tools are being piloted, with replication and scaling up as their main focus. Countries that are included in the Conference of the Parties (COP) were surveyed and the results are positive. Adaptation finance continues to be a top priority and resilience projects continue to receive adequate funding. Developing countries will receive financial resources for both mitigation and adaptation actions, while developed countries are expected to continue leading in mobilizing climate finance from a variety of sources.
Countries around the world face the challenge of investing in low carbon, climate resilient infrastructure, and investment. The private sector faces the challenge of incorporating climate change risks into decision-making processes to avoid harmful effects on business models and market competitiveness. The goal is to harness the opportunities of low carbon, resilient development. Financial institutions can play a key role in addressing these challenges, internally and through relationships with their clients.
Cities in developing countries now have access to green bond market flows. This serves as a potential source of finance for cities looking to secure investment in low-carbon, climate-resilient infrastructure. This will go a long way to meet the water, energy, housing, and transportation needs of their expanding urban populations. As of November 2016, 271 cities in developing countries had committed to developing climate mitigation and adaptation plans. However, they currently have limited access to the capital necessary to implement these plans. There seems to be considerable room for these cities to access increased finance from the green bonds market.
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