The State of Play
Investment is increasingly being channelled into vehicles that prioritise and enable climate-aligned projects to deliver mitigation and adaptation benefits, as well as a range of other socially inclusive outcomes. This transition is occurring around the globe, at all levels of capital exchange, from the smallest loan or donation to the largest transactions among corporations and countries.
The Finance Gap
There is broad consensus that the annual financing gap for reaching the targets set out in the Paris Agreement and UN Sustainable Development Goals (UNSDGs) is in the trillions of dollars. The Business & Sustainable Development Commission recently estimated the financing gap at US$2.4 trillion of additional investment required to meet the UNSDGs in developing countries alone.
"At the heart of the climate challenge are two gaps we urgently need to bridge: the ambition and the investment gap.”
- Eric Usher, Head of UNEP Finance Initiative.
Closing the Gap
To address the finance gap requires a substantial increase in both public and private sector investment. Mōhio’s Climate Innovation Lab joins a network of similar initiatives around the globe, which aim to drive billions of dollars of investment into the low-emissions economy. The focus is to identify, develop, and support transformative funding and financing solutions that support projects and activities to deliver tangible climate mitigation and adaptation outcomes. Through rigour and impact, these innovations aim to mobilise and redirect some of the US$71 trillion currently being invested in global capital markets.