IRENA, SEforALL and UNDP have announced a partnership in coordination with Green Climate Fund to advance the low-carbon energy transition and increase capital flow to clean energy projects.
In response to country needs to mobilise low-carbon, climate-resilient investments, a new global public good is destined to increase the flow of capital in developing countries to meet climate ambitions.
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The Climate Investment Platform (CIP) is an inclusive partnership welcoming all stakeholders from governments and international organisations to the private sector to scale-up climate action and translate ambitious national climate targets into concrete investments on the ground.
With energy accounting for two-thirds of total greenhouse gas emissions, the platform’s first service line is dedicated to the global transition to clean energy.
Other service lines, such as adaptation, land use, cities and infrastructure will be launched in the first quarter of 2020.
“The Climate Investment Platform is a crucial initiative that will simplify access to climate finance. It will catalyse investment for mitigation and adaptation in developing countries, supporting those most in need of climate action,” said Green Climate Fund Executive Director Yannick Glemarec.
By decluttering and streamlining support to developing countries, the platform aims to accelerate action and advance climate investment in developing countries. Progress will be presented at UNFCCC COP 25 in December 2019.
Climate Investment Platform addresses four areas
The service offered by the CIP covers four key building blocks along the climate finance value-chain: supporting governments to specify ambitious energy targets and scale up their nationally determined contributions (NDCs), establishing well-designed, implemented and enforced clean energy policies and regulations, financial de-risking of energy projects, and a market-place to connect clean energy investors and project sponsors.
IRENA Director-General Francesco La Camera said, “Renewable energy is the most effective and ready solution to rising carbon emissions. Together with energy efficiency, they can deliver 90 per cent of the emission reductions needed under the Paris Agreement, but investment and deployment must increase significantly.”
La Camera added: “This partnership combines the strengths of the respective organisations to deliver tailored, proactive policy and investment support to set the energy transformation on a climate-safe path.
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Finance and policy news
Rachel Kyte, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All (SEforALL) said, “Finance is the lynchpin to achieving Sustainable Development Goal 7 and countries’ Paris Agreement commitments. However, the evidence is clear that global investment is dramatically off track to meet universal access to energy by 2030.
“The Climate Investment Platform will help bridge the gap between supply and demand to accelerate capital and scale up climate resilient investments, allowing countries to raise their climate targets and develop policy environments that allow investment to flow.”
UNDP Administrator Achim Steiner said, “A powerful partnership of key institutions in the energy sector, the Climate Investment Platform will help to accelerate system-wide change and deliver co-benefits across the Sustainable Development Goals (SDGs) – from employment and economic growth to reduced inequalities and improved health.”
Green Climate Fund explained
The Green Climate Fund is a global fund set up by the 194 countries who are parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2010, as part of the Convention’s financial mechanism, created to support the efforts of developing countries to respond to the challenge of climate change.
GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change. It seeks to promote a paradigm shift to low-emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts.