{"id":45578,"date":"2021-12-16T13:19:44","date_gmt":"2021-12-16T13:19:44","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=45578"},"modified":"2021-12-16T13:19:44","modified_gmt":"2021-12-16T13:19:44","slug":"finance-must-golden-thread-climate-diplomacy-2022","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2021\/12\/16\/finance-must-golden-thread-climate-diplomacy-2022\/","title":{"rendered":"Finance must be the golden thread for climate diplomacy in 2022"},"content":{"rendered":"<p><strong>Diplomacy never sleeps and diplomats are already steaming ahead to prepare for next year\u2019s world leaders summits. As sherpas begin meeting again after Cop26, G20 host Indonesia and G7 host Germany will both be trying to prove themselves.<\/strong><\/p>\n<p><span data-contrast=\"none\">To succeed, both summits need to have a golden thread of finance commitments and reform running through them to address climate change. Climate change is the defining issue of this generation of world leaders; finance the most potent fuel for tackling it.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">While Cop26 delivered some good outcomes, it also dropped some balls: a failure to properly tackle loss and damage and a <a href=\"https:\/\/climatechangenews.com\/2021\/11\/13\/huddles-tears-glasgow-countries-strike-uncomfortable-climate-deal\/\">last-minute deal<\/a> to weaken coal commitments undermined trust.<\/span><\/p>\n<p><span data-contrast=\"none\">Next year, Indonesia and Germany will need to <\/span><span data-contrast=\"none\">mobilise trillions in climate finance to provide all countries with the resources they need to tackle the climate crisis.\u202f Here are four ways to deliver.<\/span><\/p>\n<ol>\n<li><span data-contrast=\"none\">Financial support for the loss and damage caused by climate change<\/span><span data-contrast=\"none\">.\u00a0<\/span><span data-contrast=\"none\">That should start with understanding what\u2019s achievable outside of UN processes and <\/span><span data-contrast=\"none\">how world leaders summits can fill in the gaps. Germany should use its G7 muscle to bring round the US and France &#8211; two countries most reluctant to make meaningful progress on finance mechanisms for loss and damage.\u202f<\/span><\/li>\n<li>Build on the potential that glimmered at Cop. <span data-contrast=\"none\">We saw commitments to <a href=\"https:\/\/www.climatechangenews.com\/2021\/11\/04\/south-africa-8-5bn-finance-package-offers-model-ending-reliance-coal\/\">help South Africa finance the transition<\/a> away from coal<\/span><span data-contrast=\"none\">. Now, we need more processes, plans and platforms like it. We saw Italian prime minister Mario Draghi call for multilateral development banks &#8211; non-commercial banks set up to support development &#8211; to play a stronger role in mobilising the trillion for climate needs. <\/span>Barbados PM Mia Mottley set out a <a href=\"https:\/\/www.climatechangenews.com\/2021\/11\/18\/mia-mottley-fearless-leader-pushing-global-settlement-climate-frontlines\/\">vision<\/a> for special drawing rights to help countries finance the transition. Leaders should agree to make these reserve assets\u202favailable to all countries, not just those in IMF programmes, to reflect the fact that climate change impact are largely outside of governments\u2019 control. They should also look at new SDR issuance to address the vast amounts needed for climate transition.<\/li>\n<li><span data-contrast=\"none\">Accelerate climate-friendly infrastructure development, specifically zero carbon and resilient infrastructure in emerging and developing countries. <\/span><span data-contrast=\"none\">Leaders\u00a0<\/span><span data-contrast=\"none\">should channel the $130 trillion promised at Cop26 by the private sector into these assets. Meanwhile, the integrity of private sector commitments must be guaranteed to avoid greenwashing.<\/span><\/li>\n<li>Set up a taskforce to pick up the pace of financial action. The leaders of <span data-contrast=\"none\">Germany, Indonesia,\u00a0Italy\u00a0and the UK should work together\u00a0<\/span><span data-contrast=\"none\">on reforms to the global financial architecture such as making the sovereign debt architecture fairer and more functional and changes to debt sustainability assessments that recognise the need for climate action. Countries should work together to align standards, policy, regulation and mobilise finance to close the 1.5C and resilience gaps.<\/span><\/li>\n<\/ol>\n<p><span data-contrast=\"none\">\u202f<\/span><span data-contrast=\"none\">The G20\u2019s efforts won\u2019t come to fruition without the G7\u2019s money and influence. The world\u2019s biggest economies are central to public finance, and major shareholders of development banks. Those most powerful countries need to build an open framework to mobilise money &#8211; not exclusive climate clubs that only protect them.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Recent events in Germany and Indonesia should give both presidencies the motivation and mettle to secure results: cars barrelled down German streets this summer in catastrophic floods that climate change made<\/span><a href=\"https:\/\/www.forbes.com\/sites\/davidrvetter\/2021\/08\/23\/as-henri-strikes-scientists-reveal-europe-floods-made-up-to-9-times-more-likely-by-climate-change\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">up to nine times more likely<\/span><\/a><span data-contrast=\"none\">. In Indonesia, the<\/span> <a href=\"https:\/\/www.climatechangenews.com\/2021\/04\/09\/cyclone-seroja-kills-160-people-exposes-indonesias-climate-vulnerability\/\"><span data-contrast=\"none\">fatal fallout<\/span><\/a><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">from Cyclone\u00a0Seroja\u00a0revealed the country\u2019s huge vulnerability to climate catastrophe.<\/span><\/p>\n<p><span data-contrast=\"none\">If Cop27 is a success a year from now, it won\u2019t just be because of what happens in Egypt. It will be because of the G7 and G20 leaders\u2019 engagement and agreement on a new \u201ctrillion vision\u201d for long term finance and climate needs. It&#8217;s only progress like this that will move us closer to a safer world and show that those most responsible for the climate crisis are finally working together.<\/span><\/p>\n<p><i><span data-contrast=\"none\">Luca Bergamaschi is co-founder of\u00a0the Italian\u00a0think tank ECCO,\u00a0<\/span><\/i><i><span data-contrast=\"none\">working together with Governments,\u00a0philanthropy\u00a0and civil society organisations to accelerate climate action in Italy, Europe and globally.\u202f<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"Here&#8217;s how G20 host Indonesia and G7 host Germany can make climate finance flow for effective action next year","protected":false},"author":12,"featured_media":30250,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2443,3861,4264,4665],"tags":[89,3566],"coauthors":[4804],"class_list":["post-45578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-comments","category-comment","category-cop26","category-cop27","tag-g20","tag-g7","type-comment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Finance must be the golden thread for climate diplomacy in 2022<\/title>\n<meta name=\"description\" content=\"Here&#039;s how G20 host Indonesia and G7 host Germany can make climate finance flow for effective action next year\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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