Solving the climate finance equation for developing countries.

Autor: Daharwal, Meghan, Engel, Hauke, Frandsen, Sarah, Jayaram, Kartik, Kendall, Adam, Mwaniki, Bob
Předmět:
Zdroj: McKinsey Insights; 12/6/2023, pN.PAG-N.PAG, 1p
Abstrakt: This article highlights the significance of mobilizing capital to drive decarbonization in developing countries and achieve net-zero emissions by 2050. It emphasizes the role of developing countries in the global transformation required to meet the goals of the Paris Agreement. The article explores the connection between economic growth, inclusion, and climate action, and identifies nine levers that could attract the necessary public and private funding to support decarbonization efforts in Africa, Asia, and Latin America. It also discusses the vulnerability of developing countries to climate change impacts and the potential economic opportunities they have in renewable energy and mineral resources. The article concludes by addressing the climate finance gap in developing countries and the need for increased investment from domestic and international sources to meet the Paris Agreement goals. It suggests that additional concessional climate finance is needed and proposes reforms to multilateral development banks and development finance institutions to mobilize more capital. The article also discusses levers to catalyze funding, including increasing external concessional capital, enabling more private foreign direct investment, and increasing sovereign and private domestic resource mobilization. The authors stress the importance of collaboration, innovative financing mechanisms, and inclusive policies to achieve sustainable and climate-resilient development. [Extracted from the article]
Databáze: Complementary Index
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