{"id":74878,"date":"2022-11-21T01:59:00","date_gmt":"2022-11-21T01:59:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2022\/11\/21\/the-enterprise-guide-to-cop27s-climate-finance-agreement\/"},"modified":"2022-11-21T01:59:00","modified_gmt":"2022-11-21T01:59:00","slug":"the-enterprise-guide-to-cop27s-climate-finance-agreement","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2022\/11\/21\/the-enterprise-guide-to-cop27s-climate-finance-agreement\/","title":{"rendered":"The Enterprise guide to COP27\u2019s climate finance agreement"},"content":{"rendered":"

<\/a> Delegates from 200 countries concluded COP27 yesterday with a landmark<\/strong> agreement to create a <\/strong>historic <\/strong>loss and damage fund<\/strong>, helping vulnerable countries cope with climate disasters triggered by developed countries\u2019 emissions, the COP27 presidency said in a statement (pdf)<\/a>.<\/p>\n

The agreement will see developed countries pledge funds<\/strong> to \u201csave lives and livelihoods from climate change related disasters\u201d in climate-affected countries, the statement said.<\/p>\n

The caveats:<\/strong> The details for the fund \u2014 including who will pay into it, who will be eligible to receive the funds, and how it will operate \u2014 have yet to be determined. A transitional committee is set to dot the i\u2019s and cross the t\u2019s over the next year, with the first meeting expected to take place before the end of March 2023, according to a statement<\/a>.<\/p>\n

The loss and damage fund is a significant achievement, insiders tell us: <\/strong>\u201cClimate vulnerable countries demand hundreds of USD bns in climate reparations, while only hundreds of USD mns have been pledged,\u201d general partner at the Climate Resilience Fund Hossam Allam tells Enterprise Climate. Still, \u201cthe recognition that polluting countries owe climate-damaged ones reparation is a major step forward,\u201d he adds.<\/p>\n

It still may not be enough: <\/strong>Developing countries need some USD 1.7-3.4 tn in climate finance annually for climate action, but financing currently stands at less than USD 425 bn, the IFC\u2019s VP of cross-cutting solutions Emmanuel Nyirinkindi told Enterprise Climate on Friday. \u201cWe\u2019re still very far away from what\u2019s required,\u201d notes Khalid Hamza, head of Egypt at the EBRD.<\/p>\n

THE HOST COUNTRY TOOK HOME A \u201cW\u201d-<\/strong><\/p>\n

Egypt\u2019s NWFE energy pillar could provide a model for unlocking <\/strong>private sector finance:<\/strong> The USD 500 m in low-cost, concessional funding committed to the energy pillar of Egypt\u2019s Nexus on Water, Food and Energy (NWFE) initiative is expected to unlock over USD 10 bn in private sector finance for renewable energy plans and investments, EBRD\u2019s Hamza tells Enterprise Climate. Both US President Joe Biden and climate envoy John Kerry noted that this is replicable and a very significant outcome of COP27, he adds. \u201cAt least there\u2019s a good example of how to approach these issues, which is basically to think very hard about the key impediments to unlocking private sector funding,\u201d Hamza adds. The decarbonization-focused NWFE program <\/strong>secured nearly<\/a><\/strong> USD 10 bn in funding pledges<\/strong>.<\/p>\n

Other substantial funding agreements secured by Egypt include: <\/strong><\/p>\n