To take action on these issues on the road to COP24, UNDP, UN Environment, UN Habitat, UNISDR and WFP are launching a new SDG Climate Facility regional initiative ($7 million; 2018-2021); a regional initiative with the League of Arab States, the Arab Water Council and a number of partner countries. Together, the UN and regional institutions will help countries generate local climate action and scale up finance in a way that brings co-benefits across the SDGs and for the region’s crisis prevention and recovery imperatives.
Through the SDG Climate Facility, the UN will help country partners map opportunities to mainstream green solutions into national financial structures, the rules and institutions governing the banking sector, capital markets, insurance, investment and other segments of national financial systems relevant to green market development, and produce a directional estimate of the investment gap on the road to 2030. Partnerships with banks, insurers and investors will see increased application of best-in-class methodologies to assess green risks and opportunities, strategic positioning of countries for emerging green markets under the SDGs, and expansion of impact-based financing. Expanded use of green finance such as climate insurance and loan guarantees for climate resilient infrastructure and ecosystem-based approaches to climate adaptation will be explored with country partners, as will approaches to risk pooling, sovereign risk solutions, risk reduction and transfer tools, and Fintech for green finance.
A priority will also be on innovation, to establish new green investment platforms among public and private partners so that scaled up climate finance can be applied in a way that benefits the poorest and most vulnerable in society, including communities affected by conflict. This will result in new policies to reduce investor risk into green investment for fragile and crisis contexts, solar solutions for communities displaced by conflict, innovative approaches to climate resilience for women’s empowerment, mainstreaming future climate risk into post-conflict reconstruction plans, and green solutions that advance the humanitarian-development nexus.
The SDGs and Paris Agreement are emerging as a catalyst for growth in the market for green solutions. As countries reposition themselves to engage this process, UNDP and our partners are helping to identify next generation solutions to close the finance gap and establish new integrated solutions to leverage climate action for poverty eradication and peace. Mobilizing green markets and supporting the acceleration of SDG results not only protects the planet, it builds resilience of countries, and empowers communities so no one is left behind on the road to 2030.
The period from now until 2020 is critical to the success of the Paris Agreement. For UNDP, UN partners and the wider international community, the mission is clear: to push for countries, communities and the private sector to scale up ambition. By 2020, we want to see accelerated action on the climate targets — the Nationally Determined Contributions (NDCs) — of the Paris Agreement. Read more on: Climate 2020 — All In