The Central Role of Financing in The Paris Agreement and Opportunities for National Development Banks (2015)
AUTHOR:Maria Netto and Jose Juan Gomes
TOPICS: climate finance, green finance, NDBs, role of NDBs, climate change,
SUMMARY: The recently adopted Paris Agreement sets in motion a process of transformation and innovation in the global economy to mitigate climate change and mitigate its impacts. Financial institutions, particularly national development banks, will play a crucial role in implementing the agreement, enabling countries to meet their national contributions through extensive investment processes, to benefit from the opportunities that economic transformations create, access Climate finance for adaptation and mitigation, and mitigating climate risks, including those associated with stranded assets due to the full replacement of fossil fuels in global energy systems. Financing has played a decisive role in building the consensus that led to the Paris Agreement, which was adopted by 195 countries on 12 December 2015. This agreement, which is a milestone in climate diplomacy, represents a concerted response by The international community - based primarily on cooperation - to address climate change. It encourages the willingness to make the parties to the agreement, instead of relying on the power to apply sanctions to those who fail to comply. The Agreement seems to indicate - unmistakably the end of the era of fossil fuels.