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The COP 27, or Conference of the Parties, is currently underway in Egypt and brings the topic of climate change funding back into the limelight. Despite the fact that conferences like COP 27 have been occurring for over 30 years, and in addition to repeated calls for the U.S. to become a “carbon neutral country”, the amount of carbon emissions continues to rise year after year.
COP 27 • IMPACT INVESTING • CLIMATE FINANCE
Climate Finance Agreements & Goals
The first COP took place in 1995 in Germany after establishing the United Nations Framework Convention on Climate Change (UNFCC) during the 1992 Rio Earth Summit. By 1997 there were a series of binding targets set out for 37 countries, which grew to 197 countries in 2015 when the Paris Agreement was adopted in order to outline ambitious goals to combat climate change.
It has been 7 years since the Paris Agreement and if one thing has been learned it’s that combating climate change is… expensive. The promises made have generated a lot of hope and excitement but the execution on them has been less than thrilling, especially from developed nations, which are responsible for 79% of historical carbon emissions. (*Center for Global Development)
There is a common theme emerging at all of these conferences. Rich nations make ambitious pledges to reduce their country’s emissions while also promising to contribute capital to less wealthy nations, theoretically allowing them to adapt and mitigate further rises in temperature. Unfortunately these pledges fall flat when the results are measured, with the UN Copenhagen Climate Summit being a prime example.
“Compared with the investment required to avoid dangerous levels of climate change, the $100-billion pledge is minuscule. Trillions of dollars will be needed each year to meet the 2015 Paris agreement goal of restricting global warming to “well below” 2 °C, if not 1.5 °C, above pre-industrial temperatures.” (Saleemul Huq, director of the International Centre for Climate Change and Development in Dhaka.)
Total climate finance has grown steadily to USD 632 billion as measured in the Global Landscape of Climate Finance 2021 report. But wait, this sounds like a lot of money right? It certainly is a start, but based on estimates climate finance must increase by at least 590% (USD 4.35 trillion) annually by 2030 to meet climate objectives. So, where will this financing come from?
Giving everyone access to invest in climate solutions is the only way we can hope of achieving such ambitious climate finance targets. Citizen Mint’s impact investment platform allows investors, financial advisors and wealth managers to access investment opportunities in affordable housing, renewable energy, carbon removal and more. With lower minimums and a simple signup process, you can make investments in minutes, which seek to maximize returns while solving global issues.
As we face these global challenges it’s important to also recognize the progress we have made and celebrate the wins. Here are some top reasons to be hopeful that COP 27 will result in positive change for our planet:
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