The Climate Finance Accelerator and Green Climate Fund are among those trying to de-risk private sector investment in clean energy projects in poor countries
One of the biggest barriers to achieving ambitions to limit climate change to 2C will be overcoming the hurdles to financing renewable energy projects in developing countries.
A review by the World Bank and UN Environment of the nationally determined contributions and other policies in 21 developing countries that are responsible for half of global greenhouse gas emissions, released at this month's COP23 in Bonn, finds an initial investment opportunity of $22.6trn from 2016 to 2030. Yet the Climate Policy Initiative estimates that climate finance flows only amounted to $360bn in 2016, with developed country governments providing $10bn-$20bn.
Lack of renewables financing in developing countries took centre stage at the inaugural meeting of the Climate Finance Accelerator (CFA) earlier this year.
The initiative, designed to help developing countries secure international finance and support to finance climate action, brought together financial experts and government representatives from Colombia, Mexico, Nigeria and Vietnam during a week-long series of workshops that saw HSBC matched with Mexico, Deutsche Asset Management with Nigeria, and BNP working alongside Colombia.
“If we are to reach the ambitious temperature target set out in the agreement we really need to speed up and get things...