Global South needs $2tn a year to fight climate crisis

Developing and emerging nations excluding China need investments well beyond $2 trillion annually by 2030 if the world is to stop the global warming juggernaut and cope with its effects_ according to a United Nations-backed report.

A trillion dollars should come from rich countries_ investors and multilateral development banks_ said the analysis commissioned by the United Kingdom and Egypt_ hosts respectively of the 2021 UN climate summit in Glasgow and this week s COP27 event in Sharm el-Sheikh.

The rest of the money  about $1.4 trillion  must originate domestically from private and public sources_ the report released on Tuesday said.

Current investments in emerging and developing economies other than China stand at about $500bn.

 The world needs a breakthrough and a new roadmap on climate finance that can mobilise the $1 trillion in external finance that will be needed by 2030 for emerging markets and developing countries (EMDC) other than China_ the report said.

The new 100-page analysis_ Finance for Climate Action_ is presented as an investment blueprint for greening the global economy quickly enough to meet Paris climate treaty goals of capping the rise in global temperatures below two degrees Celsius_ and at 1.5C_ if possible. Warming beyond that threshold_ scientists warn_ could push Earth towards an unliveable hothouse state.

The report is among the first to map out the investment needed across the three broad areas covered in UN climate talks: reduction of the greenhouse gas emissions that drive warming (mitigation)_ adapting to future climate effects (adaptation)_ and compensating poor and vulnerable nations for unavoidable damages already incurred_ known as  loss and damage .

One of the report leads Vera Songwe said  unlocking substantial climate finance was key to solving development challenges today.

 This means countries must have access to affordable_ sustainable low-cost financing from the multilateral development banks to help crowd in investments from the private sector and philanthropy to support the energy transformation_ build resilience and protect natural capital_ she said in a press release.

 Financing alone is not enough and must be coupled with the right instruments and good policies to accelerate and scale up impact.