According to the United Nations Conference on Trade and Development (UNCTAD), the market for sustainable financing is currently valued at $6 trillion.
This is happening at the same time as international leaders convened in Abu Dhabi, United Arab Emirates, to discuss the difficulties that poor nations have in attracting investment in the face of current global issues. The leaders emphasized the importance of allocating $500 billion in annual funding to poor nations.
In a statement, UN Secretary-General António Guterres urged heads of state, corporate executives, sustainable stock exchanges, sovereign wealth funds, and specialists to implement the Sustainable Development Goals (SDGs) Stimulus Package and strive toward providing $500 billion in annual funding for developing nations.
In keeping with the recommendations of the High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities, he also urged governments to set a fair price on carbon and businesses to adopt believable net-zero plans.
Unveiled by UNCTAD Secretary-General Rebeca Grynspan, the sustainable finance industry is valued at an astounding $6 trillion, while world leaders deliberated over the theme: “Investing in Sustainable Development.”
According to Grynspan, insufficient money is being allocated to hospitals, agricultural projects, water and sanitation systems, and new renewable energy facilities. Additionally, poor nations only account for 5% of all sustainable fund locations. Although funding is available, it has been misallocated.
Prior to COP28, the leaders took action to promote climate investment and financing, giving decision-makers an essential forum to work toward solutions and support international climate talks. The leaders of the meeting brought up the $4 trillion SDG investment gap, pointing out that only 15% of the goals are expected to be achieved by 2030. They revealed that the annual investment gap in developing nations is increasing, rising from $2.5 trillion in 2015 to $4 trillion at present. Leaders, such as Vice Chancellor Robert Habeck of Germany, underlined the importance of ensuring sustainability standards in sustainable finance, bridging the SDG investment gap, mobilizing sustainable finance in international financial markets, and allocating greater resources to the most needy areas.
Given the size of the investment demands and blended finance, which involves the public and private sectors as well as new players like sovereign wealth funds, the discussion advocated for international coordination. UNCTAD and the Food and Agriculture Organization of the United Nations (FAO) emphasized the critical role agrifood systems play in addressing global malnutrition, poverty, the loss of biodiversity and ecosystem services, and climate change on World Food Day, amid disruptions to the global supply chain caused by the COVID-19 pandemic and the conflict in Ukraine. According to Dongyu Qu, the Director-General of FAO, low- and middle-income nations would need to spend $680 billion a year on agrifood system transformation between now and 2030.
