2021 hasso far proven to be a transitionyear in whichwe both witness the clear negative impact of climate change while stillhaving tools at our handstoreduce further negative developments through strong and immediate climate action.Indeed,theIntergovernmental Panel on Climate Change (IPCC),a United Nations body tasked with regular assessments of the state of climate science,warned in itslast reportofvisible andunprecedented changesinglobal climateandthat limitingglobal warmingaccording to the goalsof the Paris Agreement will be soon out of reach.
Ambitious and rapid emission cuts need to be backed by strong funding and cooperation
The IPCCadvocates fordrastically reducinggreenhousegasemissions, ultimately reaching net-zero as soon as possible.Similarly, it is one of thefour goalsof theupcomingConference of the Parties (COP26)in Glasgow tosecureglobal net-zero by mid-century and keep 1.5 degrees within reach.How thisambitious goal can be reached is answeredthrough two approaches.
First,organizingand deployingclimate finance, both from public and private sources,is centraltorealizingclimate action.Through this, necessary infrastructure upgrades,in sectorssuch as clean energy or clean transport, should be implemented as well as technological innovation, such as carbon capture and storage (CCS) propelled to market readiness.A significantelementisthepledgeof developed countriesto provideUSD 100 billionof climate financeper yearby 2020to developing countriesmade at theCOP16.As this number hasnot been reachedin 2020, it is a focus topic of COP26 todeliver on this promise.
Second,creating and followingambitious climate strategies and policiesas well asgoing fromproclaiming thegreen transitiontoachievingitthrough coordinated local, regional and global cooperationisanother central element of securing the goals of the Paris Agreement.Thus, ideally,a country should have a clear climate strategy(such as the decarbonization plan of Costa Rica), leading to clear actionableinitiativesthat are implemented in cooperation with local and international stakeholders. This ensures thatso-calledcarbonlock-ins(whenfossil fuel focus delays investments into clean alternatives)are avoided,best-practice knowledge is applied, all available funding resourcesconsidered,and localcapacity expanded.
Working together for the region – NDC INVEST and the Climate Investment Funds
At the IDB Group,we arecommitted toactivelycontributingto these approaches in several ways.ThroughNDC INVEST,we offer a comprehensive package of technical and financial assistancebased on thevaluable experience andknowledgegatheredworking with our partners in Latin America and the Caribbean (LAC).In one ofourrecent publications, we show how tosupport climate policy and financein LAC.Moreover, we are also engaged in multiple cooperations withfunds and donors to realize climate action in the region.
An exampleofthis is our cooperation with theClimate Investment Funds(CIF).The CIF manage USD 8.5bn donated by 14 countries, with almost 20%of implemented funding so far dedicated to the LAC region.Itspriorityis to promoteclimate action inclean technology, energy access,climate resilience and sustainable forestsin developing andmiddle-incomecountries.It focuses on piloting new business models and reducing market uncertainties,ideally resulting in the mobilization of additional private and public funding.
The IDB Group andNDC INVESTare working in close cooperation with the CIF toconnect the available climate funding with promising mitigation and adaptation projects in theLACregion.Our cooperation with the Climate Investment Fundsacts asa role model for climate financeas itissupportingcountries in the region in reaching their climate goals and in enabling a just transition towards net-zero emission and climate-resilient economies.For more than ten years, the IDB Group has beenworking closely with the CIF to support climate mitigation andadaptationaction throughout the region. So far, more than a120IDB Group operations have received support from the CIF.
How this cooperation works,which goals it aims to realize andwhatit has achieved so far issummarized in our videoNDC INVEST: Our cooperation with the Climate Investment Funds.It also highlights three concrete examples of success, namely
- upscalingofhomesolar systems inGuatemala andColombia:This projectdelivers onthe CIF priorities of promotingclean energyandenergy access. The cooperation between the IDB Group and the CIF contributes to the development of innovativedecentralizedsolar solutions granting rural communities access to clean energy.
- combatingdeforestationinthe PeruvianAmazon:This initiativefocuses on the CIF prioritytopicsustainable forestsand contributes to the mitigation support ofNDC INVESTby applying an inclusive andcommunity-basedapproach toprotect the Peruvian rainforest,including the promotion of sustainable forest management practicesamong indigenous communities and small landholders,and theconsolidationofthe capacities to detect and respond to deforestation events.
- securingpotable water delivery andaccess to water in Bolivia: Thisprojectcontributes to the CIF priority ofclimate resiliencewhichis strengthened through the cooperation with a dedicatedlocalIDB Group teamimplementing significant improvements inregional water systems in Bolivia positively impacting the lives of more than250,000Bolivians.
As these projects show,climate finance andclimatecooperation present a highly efficient tool tosupport regional initiatives benefiting the environment, theeconomy,and thesociety.Bringing together global fundingopportunities, such as the funds provided by the CIF, andthe expertise and knowledge of the IDB Group andNDC INVESTin the LAC regionenables effective climate actionby combiningthe strengths of both institutions.
On a case-by-case scale, this cooperation allows for the selection and promotion of the most promising climate projects in the region. Cooperations such as between the IDB Group and the CIF are a key driver to realize the bold goals necessary to limit global warming as defined in the Paris Agreement and thereby ensure a sustainable future for generations to come.
NDC INVEST: Our cooperation with the Climate Investment Funds
https://vimeo.com/536069428