Adaptation and Mitigation Financing Solutions
Adobe Stock - shekhar
There are at least four financial products/structures that can be scaled up by MDBs to help reduce investment risks in transformational activities:
a. Long-term currency hedging via currency swap lines;
b. Credit guarantees via identified payment guarantee institutions;
c. Climate insurance via a global risk pool; and
d. Climate fund-of-funds to anchor venture capital funds.
The GCA’s scope must include adaptation and loss and damage support. This will require binding annual commitments from the Global North. In any case, delivery of adaptation and loss and damage support will be through existing, agreed-upon mechanisms under the UNFCCC and other processes to ensure that no one is left behind.
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Download the paper: tinyurl.com/3zu8b9y4
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