Around 24.6 trillion euros may be lacking in the fight against climate change by the end of the decade
According to a KfW study, there may be a shortfall of around 24.6 trillion euros in the fight against climate change by the end of this decade. This applies in the event that global climate investments continue to develop at the current pace, according to an analysis published on Thursday by the state-owned promotional bank and the consulting firm Boston Consulting Group (BCG). "Global investment in climate protection must increase by at least 30 percent annually - that is about three times faster than before," said KfW Chief Economist Fritzi Köhler-Geib. "Development and promotional banks can help to reduce significant barriers to private climate financing."
This could be done by supporting high initial investments and providing long-term capital as well as closing knowledge gaps, she said. According to the study, public and private capital is required to cover the enormous total investment needed to achieve the goal of limiting global warming to 1.5 degrees Celsius compared to pre-industrial times. "A key criterion for success is the multilateral coordination of financing flows." Funding and development banks worldwide could also contribute different capabilities to climate financing and thus strengthen cooperation and the strategic progress of the most urgent financing projects.
- The KfW study suggests that there could be a lacking of approximately 24.6 trillion euros in the fight against climate change by the decade's end, if global climate investments maintain their current rate of growth.
- In the analysis published by KfW and BCG, it was stated that global investment in climate protection needs to escalate by at least 30% annually to meet this challenge, which is significantly faster than the previous rate.
- Fritzi Köhler-Geib, the KfW Chief Economist, emphasized that development and promotional banks can contribute to reducing substantial barriers to private climate financing by providing support for high initial investments, long-term capital, and closing knowledge gaps.
- To cover the massive investment required to limit global warming to 1.5 degrees Celsius, the study emphasized the necessity of public and private capital cooperation, stressing that multilateral coordination of financing flows is a crucial element for success.
Source: www.ntv.de
