In a world with a lack of resources to tackle the climate crisis, having good governance and clear priorities on decarbonization, adaptation and mitigation projects can make a big difference and unlock money flows. This was the central message from panels held on the Regional Climate Foundations pavilion on this first days of COP30, in Belém, Brazil.
“To make sure that policy commitments are executed in the real world we need a governance process based on a strategic vision and planification and also on transparency and accountability for net-zero transition”, explained the Chief Economist of the Asian Infrastructure Investment Bank, Erik Berglof, one of the participants of the debate “Governing the Net-Zero Transition: A Trilateral Dialogue with China, India, and Brazil”, this Thursday, 13. “Those are some of the conditions for engagement of the private sector, central in this process”, added.
As emerging economies, India, China and Brazil trajectories will shape the world’s climate future. These countries are some of the biggest emitters, but also laboratories of innovation, facing the dual challenge of sustaining economic growth while executing a profound energy and industrial transition. Brazil, for example, launched its country platform during COP29 — an instrument that is considered a model for many other countries. Mexico is also discussing the creation of its own country platform, subject approached in a different panel on the pavilion, led by the executive director of the Mexican Climate Initiative, Adrián Fernández (read below).
“The governance needed to unlock investments is happening as we speak. In the Brazilian case, some components are already created, such as the country platform”, celebrated the manager of Climate Policy from Institute for Climate and Society (iCS), Walter De Simoni. iCS is leading a research of tools that can prepare Brazil to receive structured investments, forwarding the implementation of the NDC, the Climate Plan, and the decarbonisation process.
Detailing some Indian initiatives on decarbonization of the country’s economy, the public policy expert at the Council on Energy, Environment and Water, Arjun Dutt, highlighted that, when it comes to climate finance, is important to have “granular targets” — very detailed climate goals that break broad commitments into small actions that are measurable, enabling accountability to guide investment decisions: “In the case of India, those granular targets provided coherence across ministries in policymaking and also sent signals to investors in terms of the pipeline available”, said.
In China, there is a whole set of climate policies that are used to express the country’s ambition and attract investors. “We also have many implementing measures”, added Wang Yi from the China Council for International Cooperation on Environment and Development.
“Working with partners, ministries and international development banks, it is possible to transform public policies in a innovative way. Obviously, each country is very different, but it is clear that there are many opportunities for collaboration among Brazil, China and India”, expressed the executive director of the Institute if Climate and Society, Maria Netto, in a brief speech during the event.
Unlocking funds for the Mexican NDC
One day after Mexico presented its 3.0 NDC — which, for the first time, introduces an absolute emissions cap for 2035 that covers all greenhouse gases and sectors of the economy — the Regional Climate Foundations debated how to finance these ambitious goals.
“A country platform is the critical missing piece for this plan”, expressed Adrián Fernández, the executive director of Mexican Climate Initiative, who developed a research on the subject. A country platform is a tool that gathers strategic projects that are aligned with the country’s climate goals, and transforms them into a portfolio for investors. “It is a dedicated financing roadmap, required for the timely and effective implementation”, explained Fernández.
The model suggested by ICM to the Mexican country platform is based on the successful experiences in countries like Brazil and South Africa. In this last country, the tool was responsible for getting funds to develop 10 GW of energy generation capacity, “95% of them in renewables”, observed the deputy chair of the Presidential Climate Commission from South Africa, Crispian Olver.
Good examples of initiatives that have already been developed — and proven successful — provide insight to countries interested in developing this type of mechanism. However, it is essential to recognise one’s own needs and guide the construction of the platform based on this domestic diagnosis, explained one of the directors of the Green Climate Fund, Kristin Lang. “Understanding the country’s needs is essential in the process”, argued. “With transparency, clear strategic priorities, and good projects, it is possible to unlock finance flows”, concluded.