Climate finance and investment
The climate change remains one of the biggest issues the world is facing in current times. The source of the climate change lies in widespread deforestation, urbanization, industrialization and pollution done by human. Further, the global warming became the source of many complex issues such as changing weather patterns, earthquakes, tsunami, cyclones, famine, drought, flood, sea-level rise, pandemics, epidemics and diseases, among others. International communities have set targets to decline the temperature by one Degree Celsius through reducing greenhouse gas emissions worldwide.
However, things have never been up to the mark at the ground level, making fears of missing out climate targets. A further one Degree Celsius can be life-threatening experience for the current civilization. The climate goals now need more investments from the world. International humanitarian body United Nations says, $1 trillion climate finance could be a challenge and opportunity both. The problem of climate challenge, also referred as “existential threat” of current times, has innumerable solutions. However, the puzzle lies in how to and will finance these solutions.
Funds crunch in climate change goals
As per the UN reports, money spent in renewable energy and sustainable infrastructure saw a boom in recent years. Over the last year and half, however, more investment was made in fossil fuels. These conventional fuels release hazardous gases while burning, resulting in climate change. A number of countries still cannot afford the methods to make the transition to clean energy. They don’t have enough financial resources for adopting a sustainable way of life to reverse climate change. The solution lies in climate finance, the UN said, adding that not investing will cost a lot in long term. It’s also important because climate investors are supposed to significant opportunities.
Here, it is also important to know that what climate finance is. In general, climate finance is the money we need to spend on overall variety of activities targeting to slow down or reverse climate change. This money will also help in reaching the target to limit the global warming to a rise of 1.5°C above pre-industrial levels. To achieve this target, the world requires dropping its greenhouse gas emissions to practically zero by 2050. The phrase net-zero also refers to the context of financing climate action. As per the UN estimations, climate change may lead an additional 100 million people to poverty by 2030. Ever increasing global temperatures and climate change impact have intensified the plight of the world’s most vulnerable population.
Climate finance – The answer to crisis
Today, they face ever-rising risks, food insecurity, having fewer chances to break the circle of poverty and create better lives. To avoid and answer this devastating state, we need significant financial resources, sound investments and a systematic global approach. More than a decade back, developed nations made commitment to jointly mobilize annual $100 billion by 2020 to assist climate action in developing nations. This will not look enough for a big battle like climate change when we compare it to world military expenditure in 2020 that was nearly $2 trillion or $2,000 billion. The climate commitment is also far below than the trillions of dollars spent by developed countries in Covid relief matters for their citizens. Moreover, as per the UN report, $100bn target is not being met , even though climate finance is on an “upward trajectory.”
