Climate, Development Finance Are One: PM
Climate finance and development finance cannot be seen as two different issues for vulnerable countries. This reminder from COP23 President and Fijian Prime Minister Voreqe Bainimarama came at the High Level Segment on Amplifying financing towards adaptation and resilience
Mr Bainimarama said for developing and vulnerable countries, there is a false distinction between building climate resilience and preparing to adapt to climate change on the one hand, and investing in more traditional infrastructure for economic development on the other.
“All investments should be evaluated in the light of the new norm of climate disruption. This requires careful planning, design and policies to strengthen and climate-proof the infrastructure our citizens depend on for their livelihoods.
“We should, therefore, not create artificial distinctions between climate change adaptation and mitigation on one hand and economic development on the other. For many vulnerable developing nations, these are one and the same,” Mr Bainimarama said. He said there was also a need climate adaptation or resilience investments to be properly valued in such a way that investors can gain a competitive, time-relevant return. “Where global businesses recognise the value in future- proofing their supply chains, we can see the business case for such investment. And that is a good start.
“But greater thinking needs to go into how to define, and then monetise, the investment value for undertaking longer term infrastructure investments that reduce the future risk of loss from climate change.
The value for doing so is real, but the financial system has not yet defined that value for investors.”