We need to increase our understanding of how climate change consequences are differentiated by social, cultural, political, and economic factors. Understand adaptation from the private sector perspective: Public finance instruments need to be leveraged to reduce costs and de-risk investments to attract the private sector in adaptation investments.ĭetermine what populations adapt first: Climate change experts have a general idea of the groups that are the most vulnerable, but we do not have specific data on who will need to adapt first. What did we learn from the recent DT Global and DT Institute panel on ways to scale up climate finance for adaptation?Įstablish effective systems to channel adaptation financing to local levels: We need to increase the accessibility of financial instruments at the municipal and national levels so that local communities can have an active voice in implementing their adaptation efforts. In 20, only $500 million of a total of $30 billion spent on adaptation, approximately 1.6%, was spent by the private sector. The private sector often associates adaptation projects with high risks and low returns, which makes it difficult to attract private investment for adaptation. Private investment in climate change has primarily concentrated on mitigation efforts with activities that reduce or limit greenhouse gas emissions through bankable activities like energy efficiency. Many private investment activities are going into blended finance investment structures however, private investment in climate change adaptation is still disproportionally low. While most of climate change adaptation financing comes from the public sector, multilateral organizations and governments are finding ways to catalyze and incentivize private sector investment in adaptation. With an innovative approach, it will mobilize funds and investments through “blended finance, loan guarantees and other de-risking tools, insurance, green bonds, renewable energy auctions, and investments to ‘green’ supply chains.” The strategy also lays out a plan to ensure that access to finance is available to vulnerable populations and communities. USAID’s Climate Strategy Draft has the target to mobilize $150 billion in private and public sector finance by 2030. The United Nations defines climate finance as “local, national or transnational financing-drawn from public, private and alternative sources of financing-that seeks to support mitigation and adaptation actions that will address climate change.” Climate finance is vital for adaptation and mitigation efforts in order to reduce greenhouse gas emissions and minimize the adverse effects of climate change. Mobilizing the private sector-climate finance for adaptation Its innovative and inclusive approach of intersecting climate and locally-led action is particularly important for fostering sustainable development.
After incorporating feedback from stakeholders and the implementing community, the final strategy will be released in early 2022. It also focuses on systems-level work leveraging non-climate funding governance equity and inclusion humanitarian, development, and peace coherence and partnerships with local communities, indigenous people, women, and youth.
The resulting draft strategy is a comprehensive plan that emphasizes cross-cutting sectors with a critical focus on mobilizing finance and private sector engagement for climate change adaptation and mitigation. Prior to drafting the strategy, USAID held 29 consultations and received comments from activists, NGOs, youth, community leaders, indigenous people’s organizations, and other organizing partners. Through her keynote remarks, Kathryn Stratos, who currently serves as the Deputy Director for Climate and Cross Sectoral Strategy at USAID, shared key components of the USAID Climate Strategy 2022-2030 Draft. USAID’s Climate Strategy: charting a path forward into 2030 DT Global’s Senior Technical Director for Climate Change, Keith Bettinger, moderated the first discussion with panelists: Srilata Kammila, from UNDP Arame Tall, from the World Bank Jay Koh, from The Lightsmith Group Demetrio Innocenti, from the Green Climate Fund Kathryn Stratos, from USAID and Lee Baker, Senior Climate The first panel focused on equitable access to climate adaptation finance-one of the most important topics in climate change today. The event brought together stakeholders from the World Bank, USAID, the United Nations, NGOs, private sector, and academia. DT Global and DT Institute recently hosted a thought leadership event to discuss innovations and emerging issues for implementation of USAID’s recently released draft Climate Change Strategy.
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