Paris Global Climate Financing Summit
Context: Recently, the Summit for a New Global Financing Pact concluded in Paris in June 2023. The Summit was announced at the 27th Conference of Parties (COP27) of the UNFCCC. Announcements made in the Summit:
News Source: down to earth
- Lending Capacity: An additional lending capacity of $200 billion would be unlocked for emerging economies.
- The World Bank announced disaster clauses for debt deals, that would suspend debt payment in the case of extreme weather events.
- Private Sector Investment Lab: World Bank unveiled a ‘Private Sector Investment Lab’ with the aim to “develop and rapidly scale solutions that address the barriers that are preventing the private sector from investing — at scale — in emerging markets and developing countries.
- Just Energy Transition Partnership: A new 2.5 billion Euro JETP deal was announced for Senegal, with a consortium of countries comprising Germany, France, Canada, the European Union, the United Kingdom, with the goal of increasing the share of renewable energy in installed capacity to 40 per cent of Senegal’s electricity mix by 2030.
- Carbon markets: The EU unveiled a call to action on ‘Paris Aligned Carbon Markets’ with the goal of covering at least 60 percent of global emissions with carbon pricing mechanisms and allocating a proportion of the revenues to climate finance
- Climate Finance Goal: It was suggested that the long overdue $100 billion climate finance goal will be delivered in 2023.