Green finance bonanza at COP: Day 5 of COP28 concluded with a smattering of climate finance updates, with USD bns pledged in the financing towards emerging markets and a just energy transition.

USD 57 bn in climate pledges made so far at COP28: Governments, businesses, NGOs and donors have pledged over USD 57 bn in commitments towards tackling climate change over the first four days of COP28, Wam reports.

Where’s the USD 57 bn going?

  • USD 30 bn to launch the climate finance vehicle Alterra
  • USD 725 mn to the recently operational Loss and Damage Fund
  • USD 3.5 bn to the Green Climate Fund
  • USD 9 bn from the World Bank to finance climate projects globally
  • USD 150 mn to water security projects
  • USD 2.7 bn to climate-health projects
  • USD 2.6 bn to biodiversity and nature protection
  • USD 2.6 bn to food systems transformation
  • USD 2.5 bn to renewable energy
  • USD 1.2 for methane emission reduction
  • USD 1.2 for relief, recovery and peace initiatives

And another USD 1.7 bn raised for biodiversity conservation from the UAE: The COP28 presidency said it has raised an initial USD 1.7 bn to fund biodiversity and conservation initiatives in forests and oceans, Khaleej Times reported, citing UN Climate Change High-Level Champion for COP28 Razan Khalifa Al Mubarak.

Global donors also pledged USD 777 mn to put an end to neglected tropical diseases: Global donors and philanthropists pledged over USD 777 mn to support efforts to eradicate neglected tropical diseases (NTDs) in Africa on COP28’s Health Day, according to a statement. The Reaching the Last Mile Forum (RLMF) — a multi-donor fund launched in 2017 to end NTDs — will also expand from USD 100 mn to USD 500 mn, the statement said. Among the donors is the Gates Foundation, which has pledged to contribute USD 100 mn to the fund.

UAE banking sector to mobilize AED 1 tn in climate finance by 2030: UAE banking groups have committed to mobilizing AED 1 tn in green funding by the end of the decade, Wam reports. The AED 1 tn (c. USD 270 bn) climate financing pledge channeled by the country's National Banks Federation (NBF) aims to help meet the UAE’s 2050 net-zero target. The NBF is made up of 56 UAE-based lenders.

MEANWHILE- APICORP plans USD 1 bn decarbonization drive: APICORP has earmarked up to USD 1 bn to invest in decarbonization technologies under a five-year strategy it said in a statement during COP28 yesterday. “The institution [has a] deep commitment to playing an active role in supporting the MENA’s energy landscape transition towards a net-zero future,” the MENA-focused multilateral financial institution said.

And it has a new name: APICORP is rebranding as the Arab Energy Fund. It was previously known as the Arab Petroleum Investments Corporation. It has today a loan portfolio of some USD 4.5 bn, 18% of which is “dedicated to supporting environmentally friendly and socially responsible” projects, it said.

Abu Dhabi will host the Global Climate Finance Centre: Abu Dhabi will host a think tank tasked with developing financial frameworks for investing in the green energy sector. The independent research organization — named Global Climate Finance Centre — is co-founded by the World Bank, HSBC, and asset managers BlackRock and Ninety One. (Reuters)

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