In the Paris Agreement on Climate Change (2015), 195 Parties agreed to hold global average temperature increases to well below 2°C, preferably to 1.5°C (Mitigation Goal). Even though the Agreement is a treaty between States only, it calls for the “mobilization” of climate finance (including private sector finance) and invites ‘non-Party stakeholders’, such as the private sector and financial institutions, to scale up their support for climate mitigation and adaptation action. WBG itself committed a record US$31.7 billion in climate finance in fiscal year 2022 while other MDBs also increase their funding levels. But, considering the enormous financing needs and the limited availability of public/MDB funding, it is clear that the private sector capital needs to be mobilized alongside official sector financing if we are to have a fighting chance to keep the Mitigation Goal of 1.5°C alive.
This panel will discuss innovative ways to foster the mobilization of scaled up fit-for-purpose climate finance investments towards climate mitigation and adaptation action in developing countries. In particular, the panel will focus on the role of the private sector and how the public sector/MDBs can best incentivize or leverage private sector climate finance on a continuous basis.