United Nations climate envoy Mark Carney said on Tuesday that multilateral development banks throughout the world need to raise their ambition in terms of financing climate-related projects.
Carney said the World Bank and other development finance institutions should focus on funding ventures that can grow up to $100 billion a year.
If anything isn’t going to expand to 100 billion a year in the medium term, according to Carney in climate finance, it’s not interesting, it’s niche; that’s how large the figures are. Therefore he believes that the MDBs should think in these terms and build programmes that are scalable and capable of reaching those levels.
Carney said the Glasgow Financial Alliance for Net Zero (GFANZ), a group of financial institutions striving to decrease emissions, would present a strategy to help during the next round of global climate negotiations in Glasgow in November.
GFANZ issued a supplementary call to action on Monday, urging countries to execute a set of policy changes it claims will speed up the world’s transition to a low-carbon economy.
Some have criticized development financing institutions for not doing more to promote more private sector resources to be employed in the battle against climate change, particularly in poorer countries.
BlackRock CEO Larry Fink asked for the World Bank and the International Monetary Fund to be changed to give more first-loss capital to assist down the cost of financing for private investors earlier this year.