Here’s how to get private finance into climate action

(Context, 28 Nov 2022) Investors are itching to support net-zero projects. But the projects that need capital the most can’t seem to find it. Why?

Makhtar Diop is managing director of the International Finance Corporation, based in Washington, D.C. and Oliver Bäte is chief executive officer of Allianz SE, based in Munich, Germany.

Climate change is a collective crisis. At least 85% of the global population has been affected by climate events, costing millions of lives and trillions of dollars in economic damage.

The recent floods in Pakistan, which saw the overflowing Indus River swallow countless homes and leave almost 10 million children vulnerable, are a stark reminder of what’s at stake in the race to reverse the worst impacts of global warming. 

The 2015 Paris Agreement, which saw the world unite around the shared goal of limiting global temperature increases to 1.5 degrees Celsius, provides a path forward. But walking that path will require significant financial investments in climate technology and infrastructure projects that reduce emissions.

Where that finance comes from is a central question.

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Context, 28 Nov 2022: Here’s how to get private finance into climate action