2° Investing Initiative (2DII) has a long track-record in calling for the development of sustainable finance in, and in direction of, emerging markets, especially in Latin America and Africa. In the context of last year’s redefining of our strategic planning, adaptation finance was identified as a key research topic for our think tank, as evidenced by the publication of a paper on debt-for-adaptation swaps and the necessary reforms of the financial system (the original SinS). We are pleased to see our internal priorities aligning with the international agenda. We therefore have high expectations from the December meeting, especially on operationalization of the fund and funding arrangements for Loss and Damage.
African countries also expect a lot from these negotiations, and we observe encouraging field evidence of robust mobilization of governments and stakeholders around sustainable finance in the continent. Some financial centres have taken decisive steps to integrate climate in their priorities, as in the Rwandan Sustainable Finance Roadmap. Under the impulsion of the Government of Rwanda, the Kigali International Financial Centre elaborated a detailed and ambitious roadmap to position Kigali as a regional sustainable finance hub. The roadmap articulates 8 key initiatives from financial stakeholders. 2DII believes that some key features of this roadmap can be inspirational for other financial centres in the region and beyond: (i) the pivotal role of regulators, and in particular the Central Bank; (ii) the importance of private investment and development finance as implementation levers; and (iii) a combined approach for all financial sectors noticeably highlighting on one hand, the role of sustainable insurance in promoting adaptation in the economic sectors and, on the other hand, the role of sustainable lending in financing sustainable projects. Transversal initiatives are also important in this roadmap, for example the focus on education and training, which should create field capacities in the long term for all financial institutions. We strongly encourage such comprehensive approaches, which generally create synergies and foster implementation.
We strongly hope that initiatives to develop sustainable finance, in the African continent and across all emerging markets, will be advertised and further supported during COP28. It is time for developed countries, international institutions, and development finance institutions to move from words to actions. Pledges need to be increased and operationalized to win the global race for net-zero and adaptation.
Each degree counts, each COP counts, each initiative counts.