Energy Gang

Live from COP29: Everyone is talking about climate finance. What do they mean?

Nov 18, 2024

Raquel Moses, from the Caribbean Climate Smart Accelerator, discusses the need for diverse climate finance instruments to overcome development hurdles in the Caribbean. Ben Attia, of Allied Climate Partners, highlights the importance of de-risking early-stage projects to attract investment. Jang Ping Thia, an economist at the Asian Infrastructure Investment Bank, emphasizes multilateral development banks' role in unlocking capital flows for emerging markets. The conversation delves into the urgent need for innovative funding solutions and collaborative efforts to bridge the finance gap.

47:22

Episode guests

Jang Ping Thia

Ben Attia

Raquel Moses

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The podcast emphasizes the critical need for clarity in the types of climate finance, such as grants and equity, to facilitate effective project funding.

Addressing the lack of bankable projects in emerging markets requires proper project preparation and funding to attract investment effectively.

Global solidarity and collaboration between developed and developing nations are essential for equitable climate finance outcomes and tackling climate change.

Deep dives

Defining Climate Finance

Climate finance is a complex concept that varies in interpretation among stakeholders. It encompasses various types of funding, including grants, equity, and loans, each serving distinct purposes. Raquel Moses emphasizes the necessity to clarify these different forms of finance to facilitate effective project funding, as vague definitions lead to misunderstandings. She argues that without a mature conversation about the specifics of climate finance, efforts to secure necessary capital will remain ineffective and frustrated.

Intro

2min

Unlocking Climate Finance in the Caribbean

15min

Challenges in Climate Adaptation and the Role of the Bridgetown Initiative

3min

Bridgestone Initiative and Climate Finance Reform

16min

Navigating Climate Finance: The Role of AIIB

4min

The Intersection of Sustainability and Competitiveness

2min

Navigating Climate Challenges and Trade Dynamics

6min

How a deal at the climate talks could make a real difference to the energy transition

In our latest episode from the COP29 climate talks in Baku, Azerbaijan, Ed Crooks explores the challenges and opportunities of mobilizing climate finance to support the energy transition in emerging markets.

As the "Finance COP", COP29 is under pressure to deliver concrete outcomes on climate finance. The goal is an agreement that could mean $1 trillion a year or more flowing from rich countries to low and middle-income countries, to finance cuts in greenhouse gas emissions and investments to help communities adapt to the impacts of climate change.

But what does climate finance really mean for countries tackling the climate challenge? And how can innovative funding solutions and systemic reforms ensure that financing reaches the countries and projects that need it most?

On this episode, Ed is joined by Raquel Moses of the Caribbean Climate Smart Accelerator, which helps low-carbon energy projects in the region find commercial backers. She emphasizes the importance of disaggregating climate finance into grants, equity, concessionary loans, and other forms of lending, and explains why it is so important for everyone at COP29 and beyond to be clear about what they mean when they talk about it. Clarity on funding is critical for clearing obstacles to project development, particularly in the Caribbean and other emerging markets.

Ben Attia of Allied Climate Partners also joins the discussion. He highlights the shortage of bankable projects in emerging markets, and explains how his organization deploys philanthropic capital to de-risk early-stage infrastructure developments. By preparing projects for commercial investment, ACP helps bridge the gap between available funding and viable projects.

Raquel and Ben argue that addressing systemic issues, including the lack of early-stage equity investment, the complexity of aggregating small projects, and the risks associated with currency fluctuations in emerging markets, are essential to unlocking the $1 trillion-plus in annual climate finance needed to meet global goals.

Finally, Ed talks to JP Thia, lead economist of the Asian Infrastructure Investment Bank (AIIB), to discuss the particular challenges for climate finance in Asia. It’s a region with large and often fast-growing economies, with a hunger for increased energy supply. JP discusses the importance of pairing climate goals with economic development, to align incentives and drive participation from the Global South.

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