Aimed at mobilising and deploying financing for key Sustainable Development Goals, particularly around climate action
A new report by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has put forward 10 principles for action for policymakers, regulators and private finance for mobilising and deploying financing for key UN-mandated Sustainable Development Goals, particularly around climate action.
The principles will help stakeholders cooperatively and efficiently shift and scale up capital to finance climate action by reducing obstacles, addressing climate risk underpricing, and reducing sectoral and regional capital-investment mismatches.
The Sustainable Finance: Bridging the Gap in Asia and the Pacific report was launched October 6, 2023. Even as global emissions and energy needs rise, financing climate action in Asia and the Pacific has lagged due to macroeconomic challenges and public debt sustainability concerns, it noted.
The principles put forward are:
The ESCAP report stated that it aimed to stimulate a more robust and informed debate among member states on key measures to move the region towards sustainability and to provide greater clarity on the benefits and consequences of selected policy and financing choices in the short and long term.
Only 17 of the 51 Asia-Pacific countries party to the UN Framework Convention on Climate Change have assessed and reported their financial needs to meet their Nationally Determined Contributions and only seven have broken down financial needs between adaptation and mitigation, the report said.
Furthermore, average economic losses in the region from disaster-related and other natural hazards are expected to rise to $1.1 trillion in a moderate climate-change scenario and $1.4 trillion in a worst-case scenario, ESCAP added.
There is sufficient capital and liquidity to close the global financing gap in sustainable finance, the report noted. However, deploying capital for climate action faces a number of challenges.
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