Presentation by Olatunji Yusuf (Senior Climate Change Specialist within the Global Practice Directorate of the Islamic Development Bank Group).
Financing Climate Action in Developing & Emerging Economies (Multilateral Development Bank perspective)
In today’s complex and dynamic world, climate change continues to pose significant threat to social and economic development and overall wellbeing of people, communities, societies and vital systems including food, water, energy and transport systems. Climate change threatens not only the progress of economic development across many countries but also the core mission of multilateral development institutions.
About half a decade ago, world leaders came together with the intention to jointly address one of the biggest challenges of our time – climate change. These various negotiations birth the Paris Climate Agreement now signed by 195 countries and ratified by 187 countries around the world. Through this Agreement, the United Nations Framework Convention on Climate Change calls for financial assistance from Parties with more financial resources to those that are less endowed and more vulnerable while recognizing that the contribution of countries to climate change and their capacity to prevent it and cope with its consequences vary significantly.
In developing and emerging economies, the financing required to significantly reduce emissions and adapt to the adverse effects of climate change remains enormous. In line with the guiding principles of making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development, multilateral development banks (MDBs) are strategically positioned to deliver multilateral climate finance to actualize the Paris Agreement objectives through incorporation of climate change considerations in their core lending and operations. In addition, MDBs are increasing climate ambition through actionable climate finance targets and joint MDB collaboration on public and private climate finance mobilization, capacity building, climate policy initiatives and support for long-term low carbon and resilient development strategies.