The 4th day of UNFCCC cop27 was conducted as a finance day. This day was all about discussions about national, transnational, and local climate financing to support adaptation and mitigation actions related to climate change. The cop27 presidency examined the progress made so far on a similar motive to guide the ongoing work program in the current year.
Reducing the Cost of Green and Sustainable Borrowing is an initiative that the COP27 Presidency and the United Nations Economic Commission for Africa launched for African nations. It aims to enable more sustainable financing through Green and Social and Sustainable Bonds (GSS bonds give investors the chance to fund initiatives that have a positive impact on the environment and society).
The UK said that it will allow the vulnerable countries hit by natural climatic disasters such as droughts, hurricanes, and floods to postpone their debt repayments. It also announced efforts to incorporate Climate Resilient Debt Clauses (CDCs) into private sector lending and urged all creditors, including bilateral lenders, international financial institutions, and private banks to do so.
The UN published projects list that’s worth $120 billion which investors can put their money into helping poorer countries to adapt and cut emissions as to impacts of climate change or global warming. Some of the Projects among the dozen others include a $10 million plan for improving Mauritius’s public water system, a $3 billion water transfer project between Bostwana and Lesotho, etc.
Loss and Damage were also a topic of discussion on the finance day of the climate summit. Where countries like China and India put forward their opinions. China was willing to contribute towards loss and damage funds compensating towards the poorer and vulnerable countries. India said that they are willing to help small island nations facing threats. They also highlighted creating initiatives like Coalition for Disaster durable infrastructure and developing early warning technology and systems.
Al Gore, former US Vice President and co-founder of the non-profit Climate TRACE, has launched an inventory of greenhouse gas emissions at a global level and their main sources. António Guterres, Secretary-General of the United Nations, called the inventory a “critical initiative”; initiatives like these are “ushering in an era of radical transparency for emissions tracking” by providing independent emissions data, he said. “You are making it more difficult to greenwash or— to be more clear – to cheat.”