For A Climate Cooperation

Context:  For transition to sustainability, the private sector must be involved, in partnership with governments and civil society.

Need of expanding private investment

• Huge investment needed to meet the vital 1.5-degree climate target: Critical to save forests and farms, oceans and wildlife and to build necessary new infrastructure to create the transition to sustainability.
  • Governments alone cannot muster those sorts of sum, so they need to collaborate with private entities.
• Private sectors are eagerly waiting to invest in innovative projects and new technologies: It will facilitate necessary, rapid transition to sustainability and guarantee a cleaner, safer, healthier planet.
• Changing consumer behaviour: Committed businesses believe that their customers have right to know what they buy, and sustainability will drive future choices.

Way Forward: Overcome barriers and unlock opportunities for private entities

• Clear market signals from government to the businesses is needed to plan for the long term.
  • It would boost confidence in existing projects and attract the necessary institutional investment for new ones.
  • To do this, there is a need to re-align country, industry and investment roadmaps.
• Multilateral Development Banks have a critical role to play in creating the enabling environment for investment to supports a sustainable future.
• Correction in misalignments across institutional, regulatory and legal frameworks: It required a much closer partnership between government, the main multilateral banks, the private sector and its investors.
• Explore mechanism for G20 to provide sovereign risk guarantees that would help release the vast sums of money required to make PPP a reality.
• Broad global agreement needs to translate fine words into still finer actions: If world managed to set aside differences, it can be a unique opportunity to launch a substantial green recovery to benefit all.