In order to meet the goals of the Paris Agreement and limit global warming to below 1.5°C, there is a need to increase climate finance by at least five-fold annually. This article argues that to achieve this ambitious target, a pragmatic approach that emphasizes speed and scale is crucial. It highlights three key areas that need to be prioritized: pragmatism, speed, and scale.
The article emphasizes the importance of taking a pragmatic approach to address emissions, particularly in the top 10 emitting countries, which account for two-thirds of global emissions. These countries vary in terms of their level of development and climate financing markets, and therefore, require tailored approaches to accelerate climate action. Collaboration among stakeholders, including at the state level, is necessary to translate policies into action.
To achieve the necessary scale in climate finance, the article suggests scaling up proven technologies that are already available and being deployed at scale. This includes renewable energy technologies, energy efficiency measures, net-zero building designs, clean manufacturing processes, and the adoption of electric vehicles. The article also emphasizes the importance of addressing the entire value chain to increase the velocity of climate finance and reduce risks.
The article emphasizes the role of different stakeholders in driving climate action. The private sector is encouraged to finance bankable projects and reduce their own carbon footprints. Governments are called upon to deploy incentives, rules, and policies that motivate climate action, such as carbon pricing mechanisms and renewable energy subsidies. Multilateral development banks are seen as critical in assisting emerging market and developing economies with their energy plans and climate adaptation efforts.
The article concludes by highlighting the urgency of climate action and the need for short-term actions that are effective and scalable. It suggests that scaling proven technologies, adopting a value chain approach, and leveraging the strengths of each stakeholder are critical milestones in addressing the climate crisis.
