Climate finance is not reaching countries most in need, jeopardising trust between rich and poor nations the University College of London research findings indicate.
The shortfall in investments in mitigation for low-income countries is particularly pronounced due to different investment risk considerations across countries. This highlights the importance of existing government programmes to increase energy access under the sustainable development goals. However, countries with large rural populations that struggle to achieve grid-based electrification are presently disadvantaged in accessing private capital.
Additionally, it is essential for these institutions to deploy robust de-risking mechanisms that can absorb investment risks and foster a conducive investment environment. Global mechanisms for raising capital should be used for reconstruction grants after climate events and could compensate for greater exposure to climate risks, while boosting resilience and investment in more vulnerable economies.There was a problem processing your submission. Please try again later.