BAKU, Azerbaijan, November 15. Financing is key to accelerating climate action, Environment Director of the Organization for Economic Cooperation and Development (OECD) Jo Tyndall said, Trend reports.
She made the remark during a panel discussion on “Mobilization for Climate Action: countries, multilateral financial institutions, and the private sector implementing the Paris Agreement.”
“Finance also remains one of the most challenging hurdles to achieving the goals of the Paris Agreement. Finance is a critical enabler of accelerated climate action. However, despite the technical solutions available to achieve the goals of the Paris Agreement, we face the fact that finance is not flowing at the pace and scale needed,” she said.
According to Tyndall, the OECD recently published a report that analyzes the extent to which overall funding is aligned with the goals of the Paris Agreement. The report argues that while the situation has improved in recent years, only a small proportion of overall funding is clearly aligned with the goals of the agreement. A large proportion of funding is not aligned with these goals, and there is also a large gray area where it is difficult to determine whether funding is aligned.
“The funding gap is so wide that it can only be closed through private investment. About 80 percent of total financing and investment should come from the private sector,” she added.
She added that the latest OECD report on progress towards the $100 billion annual goal showed that only 18 percent of the $116 billion provided by developed countries in 2022 came from the private sector.
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