The United Nations Conference on Trade and Development (UNCTAD) has said the valuation of the sustainable finance market now stands at $6 trillion.
This is coming as global leaders gathered in Abu Dhabi, United Arab Emirates to focus on the investment challenges faced by the world’s developing countries amid today’s global crises. The leaders said the need to deliver yearly $500 billion investment to developing countries must be prioritised.
UN Secretary-General António Guterres, in a statement, told heads of state, business leaders, sustainable stock exchanges, sovereign wealth funds and experts to put the Sustainable Development Goals (SDGs) Stimulus Package into effect and work towards delivering $500 billion yearly investment for developing countries.
He also called on governments to establish a fair price on carbon and companies to implement credible net-zero plans, aligning with the recommendations of the High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities
While the global leaders considered the theme: “Investing in Sustainable Development,” UNCTAD Secretary-General Rebeca Grynspan revealed a staggering $6 trillion valuation for the sustainable finance market.
Grynspan said: “Not enough funds are going into new renewable energy plants, water and sanitation installations, agricultural projects, hospitals. And only five per cent of all sustainable funds are located in developing countries. Funding exists, but allocation has been misguided.”
Coming ahead of the COP28, the leaders moved to advance climate finance and investment, providing a crucial platform for policymakers to find solutions and support global climate negotiations.
The summit addressed the $4 trillion SDG investment gap, as the leaders noted that only 15 per cent of the SDGs are on target to be met by 2030.
They disclosed that the investment gap in the developing world is growing from $2.5 trillion per year in 2015 to $4 trillion today.
Leaders, including Germany’s Vice Chancellor Robert Habeck, emphasized the need to close the SDG investment gap, mobilise sustainable finance in global capital markets, ensure sustainability standards in sustainable finance and channel more funds to where they are needed most.
The discussion pushed for international coordination, given the scale of the investment needs and blended finance involving both public and private sectors including new actors such as sovereign wealth funds.
On World Food Day, amid global supply chain disruptions from the COVID-19 pandemic and the conflict in Ukraine, UNCTAD and the Food and Agriculture Organisation of the United Nations (FAO) highlighted the critical role agrifood systems play in tackling global malnutrition, poverty, the loss of biodiversity and ecosystem services, and climate change.
FAO Director-General, Dongyu Qu, said transforming agrifood systems would cost $680 billion yearly between now and 2030 in low and middle-income countries.
