Multilateral Development Banks (MDBs) need to change their operational orientation to focus on the capital that can catalyze the climate transition, said Mark Carney, UN Special Envoy for Climate Action and Finance on Saturday.
Speaking here at the plenary session on ‘Financing the Climate Transition’ at the B20 Summit, Carney highlighted that the world will require an enormous amount of capital to finance the climate transition that is needed.
‘We need to focus on transition finance, particularly for the challenging hard-to-abate sectors and the workers and communities associated with these sectors,” he said.
Carney said that around US$ 100-150 billion should flow yearly from developed countries to emerging economies to help them transition.
He further said that governments in emerging economies will have an important role to play in creating an enabling ecosystem by establishing regulations that support deployment of nature-based solutions, reduce reliance on fossil fuels, increase renewable energy adoption and encourage development of carbon markets.
Uday Kotak, Chief Executive Officer, Kotak Mahindra Bank stated, “We have no choice but to go beyond capital that expects returns.”
“Capital that is ready to take losses – this needs to come from businesses. We also need to ensure that the solution is not worse than the problem and doesn’t make it worse in the long term,” he further said according to a media release issued by industry body CII.
Mark E Tucker, Group Chairman, HSBC Holdings Plc, UK mentioned, “Globally there is a lot of movement on innovative mechanisms. Government de-risking is important, and government has a key role to play in enabling and developing ecosystems where financiers and industry can work together to deliver on the climate transition.”
