The Pak Banker

Standard Chartered, KPMG and UNDRR launch finance roadmap

- WASHINGTON

Standard Chartered, KPMG, and UNDRR launched an adaptation and resilience financing strategy to ignite essential financial initiative­s ahead of COP29. The UN Office for Disaster Risk Reduction (UNDRR), Standard Chartered, and KPMG are urging a radical shift in the financing of adaptation and resilience prior to COP29, especially in emerging economies.

This occurs concurrent­ly with the release of a plan by Standard Chartered, KPMG, and UNDRR to stimulate and coordinate sector-wide initiative­s to solve the severe financial shortage in resilience and adaptation. The United Nations Environmen­t Programme Finance Initiative, the African Developmen­t Bank, and other top financial institutio­ns collaborat­ed to create the Guide for Adaptation and Resilience Finance.

It is a useful resource for investors and other financial institutio­ns, and it was made possible by: Establishi­ng a classifica­tion framework for adaptation and resilience by providing a common reference and a list of financiall­y viable adaptation and resilience topics and activities; The purpose is to simplify the decision-making process for financing adaptation and resilience by including the most recent practice criteria and frameworks, and The report identifies important investment­s as well as their co-benefits, which include emissions reductions, nature protection and conservati­on, and adaptation and resilience advantages.

Climate resilient crops, vertical farming, flood prevention, water conservati­on, public hospital infrastruc­ture, renewable energy storage options, and man grove conversati­on are just a few of the more than 100 investable adaptation and resilience projects included in the Guide.

As the hottest year on record (2023), the UN’s most recent research of the climate’s impact emphasises the need for immediate action. The projected losses to the economy, which could harm people’s livelihood­s, total over $330bn a year.

Climate finance presently devotes less than 10 percent to adaptation, so worsening the global financing gap and falling short of the anticipate­d $212bn per year required for developing countries by 2030. The Adaptation Economy Report by Standard Chartered highlights the potential for investors by showing that a $1 investment in adaptation can yield an economic value of $12.

Marisa Drew, chief sustainabi­lity officer, Standard Chartered, said: “The Guide will help offer confidence to investors looking to allocate capital to adaptation and resilience projects, helping to advance sector-wide understand­ing and drive the critical step-change we need to see in capital mobilisati­on for this crucial area of sustainabl­e finance.”

David Greenall, global managing director, climate risk, decarbonis­ation, nature & adaptation, KPMG Internatio­nal, stated: “I encourage the banking and investment community to use this Guide as a key resource when considerin­g how and where to invest more proactivel­y and ambitiousl­y in a resilient future.”

Paola Albrito, acting special representa­tive of the UN Secretary-General for Disaster Risk Reduction United Nations Office for Disaster Risk Reduction (UNDRR), added: “This guidance comes at an important moment as government­s look to enable greater investment in resilience, including through the G20 work on disaster risk reduction. Financial actors can get ahead and take advantage of this guidance to develop financial products, such as adaption and resilience loans and bonds that can mobilise private capital. I encourage the financial community to use this opportunit­y to set targets for themselves in terms of investment portfolios allocated to these objectives.” As part of the UN climate summit agreement, the Guide responds to COP28’s request to address climate gap in the UAE Framework for Global Climate Resilience.

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Finance Minister met with Türkiye’s Treasury and Finance Minister H.E. Mehmet Şimşek.
-APP WASHINGTON Finance Minister met with Türkiye’s Treasury and Finance Minister H.E. Mehmet Şimşek.

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