While estimates say that the world needs $1.5 trillion every year as climate finance, the money flow is currently robust, says UN Climate Change (UNFCCC) Secretariat.
This is driven by aggressive growth in areas such as renewable energy, electric vehicles, green buildings and climate-smart agriculture and exponential advances in innovative green financial instruments, indices and markets, says UNFCCC.
Investors shifting their portfolios away from carbon-intensive assets to reduce risks due to climate change is also a reason.
But the target of a fully de-carbonized and climate-resilient global economy by 2050 would need more money flow, says experts.
“The key is to get the funding to flow so that everyone everywhere can benefit from low-carbon and climate resilient investments,” said Laura Tuck, Vice-President Sustainable Development at the World Bank.
“it is extremely important that there is a significant increase of investor awareness and action with regards to supporting the transition […] to a low carbon economy.” Peter Damgaard Jensen, CEO of the Danish Pension provider PKA and Chair of the Institutional Investors Group on Climate Change (IIGCC) said.