COP26 is a two-week United Nations climate summit held in Glasgow, Scotland, where world leaders are gathering to discuss climate change and efforts to limit rising global temperature. Today, Wednesday, November 3, is “finance day” at COP26. Discussions were centered around funding needed to fight climate change as world leaders have finished their speeches. While the third day of the summit comes to a close, we outline four highlights regarding clean energy financing and the alternative energy industry.
US Contributes to $10.5 Billion Fund for Green Energy Projects in Emerging Countries
Today a group of philanthropic foundations and international development banks called the Global Energy Alliance revealed a $10.5 billion fund dedicated to helping poor countries with rising energy needs switch renewable energy sources. This fund will support renewable energy initiatives in places such as rural India, Indonesia and Sierra Leone. Philanthropic foundations in the Global Energy Alliance include the Rockefeller Foundation, the Ikea Foundation and the Bezos Earth Fund. International development banks include the African Development Bank and the International Finance Corporation.
U.S. to Help Raise $500 Million for Green Bonds
US Treasury Secretary, Janet L. Yellen, confirmed that the US will support the Climate Investment Funds’ financing mechanism that aims to direct $500 million a year to help developing countries transition from coal-based energy to renewable energy sources such as wind and solar. The Climate Investment Funds is a multilateral fund based at the World Bank. Alongside the US, Britain and Japan have also contributed to the fund. Speaking at the conference, Yellen recognized affluent countries’ have made billion-dollar commitments to climate change but stated she believes a more accurate cost to fighting climate change is in the trillions.
United Nations Glasgow Financial Alliance for Net Zero has $130 Trillion to Invest in Combating Climate Change
The United Nations Glasgow Financial Alliance for Net Zero consists of 450 banks, insurers, and asset managers throughout 45 different countries (including the US). This coalition will use the $130 trillion in assets under their control to combat climate change with the goal of achieving net zero emissions by 2050. The alliance was created in April and notable members include BlackRock, HSBC Holdings, Morgan Stanley and Deutsche Bank.
C40 Cities Chairman & London Mayor, Sadiq Khan argues that “National Governments Can’t do it Alone”
“Cities have got to be the innovators, the problem-solvers, the change-makers that are going to fix climate change.”– Sadiq Khan
Sadiq Khan, the Mayor of London, UK, stated the above during his speech today. As the chairman of C40 cities, he oversees a coalition of mayors from over 100 cities. This group believes that cities themselves can be climate leaders. Khan called on national governments worldwide to provide subsidies so cities could transition to renewable energy sources and retrofit old and inefficient buildings.
Looking Forward to Tomorrow
Tomorrow, Thursday, November 4, is “energy day” at COP26. We are anticipating proposals for phasing out coal and how the transition to green, renewable energy sources can be made. To read yesterday’s COP26 highlights click here. To stay updated on COP26 energy news, make sure to subscribe to our blog by clicking the button below. Click here to read updates from Tuesday of the conference.