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In this year of electoral cycles, the private sector can be a constant for climate action

In this year of electoral cycles, the private sector can be a constant for climate action

London, 28th Feb 2024

 

In this year of electoral cycles, the private sector can be a constant for climate action

2024 will be a landmark year for democracy and subsequently, climate action.

Nations representing over half of the global population and a huge portion of the world’s greenhouse gas emissions are going to the polls.

Already we’ve seen new leadership in Indonesia, with India casting votes in May and the United States later this year. A U.K. election also seems likely before this year is out, and many more happening in between.

The turbulence of election cycles impacts the certainty of public investment, especially in climate solutions which can become a political football.

Just these countries collectively account for more than 40% of the world’s greenhouse gas emissions, meaning climate leadership is at a critical juncture.

But amid this change, there is a clear opportunity for the private sector to be a constant.

We have long known that we cannot reach our climate goals without private sector finance, especially in the Global South.

To reach net zero by 2050, low-carbon investments need to annually increase from $900 billion in 2020 to a staggering $5 trillion by 2030. Of this, emerging and developing countries require an annual $2 trillion and the IMF estimates that private financing must account for 90% of the total investments in these nations.

Whilst I hold my breath for the effect these elections will have on our ability to meet our shared climate goals, we mustn’t conclude that the fate of our climate rests only in this year’s ballot papers.

We must not overlook tools that the private sector has at its disposal.

Carbon markets have proven their ability to unlock corporate finance and direct it towards projects that yield tangible climate benefits, especially in countries where public funding is harder to access.

From nature-based solutions to cutting-edge clean tech innovation, the private sector can use carbon markets to continue funding critical solutions through this year and beyond.

Stable sources of private finance can also help elevate countries own climate ambitions, especially as signees of the Paris Agreement are required to update their Nationally Determined Contributions (NDCs) this year.

Now is the time for the private sector to step up and transform 2024 from a year of political uncertainty to a year of unprecedented progress.

 

Media Contact 

Scott Eaton, Chief Executive Officer at Carbonplace

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