COP29 in Baku will focus on mobilising private capital to address a staggering $800 billion shortfall in climate financing
Developing nations require approximately $5.9 trillion in climate finance by 2030. However, the potential of private-sector financing remains largely untapped
As of 2022, private-sector funding represented only 20% of total climate finance, with 81% allocated for mitigation efforts
Adaptation strategies receive significantly less attention
Risk perceptions, investment policies, and quality of bankable projects significantly impact private investment decisions in climate finance, particularly in developing economies
Mobilising private capital for adaptation is even more challenging. Non-commercial projects like reforestation struggle to attract investment due to perceived low returns
Public-sector, multilateral finance must lead the charge in climate action. Strengthening state capacity, transparency, and accountability is crucial to attract private investment