New initiative to help unlock USD 3 trn needed a year for climate, nature: World Economic Forum

With the energy and cost of living crises, the ambition of steering the planet towards a 1.5-degree Celsius warming pathway hangs in the balance, WEF said on Tuesday. Meanwhile, the recent agreement at the UN Biodiversity Conference (CBD COP15) in Montreal to conserve 30 per cent of all earth and sea looks bold but fragile in the face of a rising biodiversity crisis.

The World Economic Forum, supported by more than 45 partners, on Tuesday launched the Giving to Amplify Earth Action (GAEA) which is a global initiative to fund and grow new and existing public, private and philanthropic partnerships (PPPPs) to help unlock the USD 3 trillion of financing needed each year to reach net zero, reverse nature loss and restore biodiversity by 2050. With the energy and cost of living crises, the ambition of steering the planet towards a 1.5-degree Celsius warming pathway hangs in the balance, WEF said on Tuesday. Meanwhile, the recent agreement at the UN Biodiversity Conference (CBD COP15) in Montreal to conserve 30 per cent of all earth and sea looks bold but fragile in the face of a rising biodiversity crisis.

Current funding is slow and inadequate, and a new approach is needed to get capital flowing. WEF said philanthropic giving can address this, with unique qualities not found in other financing: It is nimble, more tolerant of risks and is driven by values and long-term outcomes rather than quarterly returns. "We are at a tipping point in our efforts to put the planet back on track to meet our climate ambitions. To reach the speed and scale required to heal the Earth's systems, we need to unlock not only private capital and government funds, but also the philanthropy sector as a truly catalytic force to achieve the necessary acceleration," said Klaus Schwab, Founder and Executive Chairman, World Economic Forum.

Philanthropic financing for climate mitigation has risen in recent years, but still represents less than 2 per cent of total philanthropic giving, estimated at USD 810 billion in 2021, according to WEF. Greater philanthropic funding for climate and nature will support, not detract from, existing social priorities. Over the next 12 months, supported by McKinsey Sustainability as a knowledge partner, GAEA will work with founding members to build momentum around three clear objectives. The first one would be to convene leaders from the public, private and philanthropic sectors to identify and target climate and nature solutions where they are best positioned to play a catalytic role. The second would be to pilot and refine funding models that can support PPPP interventions while the third is to scale up and replicate successful approaches to new sectors, regions and actors.

GAEA's growing body of philanthropic partners includes Active Philanthropy, the African Climate Foundation, Andre Hoffmann Family Office, the Arab Foundations Forum, Bezos Earth Fund, BMW Foundation, Children's Investment Fund Foundation, the Clean Air Fund, Climate Leadership Initiative, ClimateWorks Foundation, Eleven Eleven Foundation and the Gordon and Betty Moore Foundation, among others. (ANI)

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