Cop29: Guernsey has one of the keys to helping find trillions of dollars needed in climate finance

Friday 15 November 2024

Guernsey has a pivotal role in scaling up climate finance as world leaders forge a new global plan.

Cop29 is underway in Azerbaijan, with a new financing plan expected to be agreed at the end of next week, focussed around the need for $1trillion a year by 2035 to help poor countries.

Half of that figure could come from the private sector, Nicholas Stern, who heads a group of economists studying the issue for Cop, has said, while also warning it all needs to happen more quickly to avoid future problems.

Meanwhile, the UK is stepping up its financing efforts.

Guernsey Finance Director of Strategy and Sustainable Finance Stephanie Glover said it was pleased to see the significant progress and discussions taking place at Cop29.

"As an International Finance Centre with a strong focus on sustainable finance, we recognise the pivotal role we can play in scaling up climate finance to meet global sustainability goals.

"With corporations and countries now experiencing climate impacts first-hand, it is essential for financial centres to use their expertise to contribute positively to the challenges and opportunities presented by climate change.

"Particularly as we inch closer to 2030 deadlines, we cannot afford to let the opportunities for the private sector to contribute to net zero goals slip through our fingers."

UK Prime Minister Keir Starmer has said it has a huge opportunity to get ahead here when it comes to renewables.

The Government there is launching a new financial instrument on the London Stock Exchange, allowing international investors a fast and easy way to put money into the UK green industry.

"We welcome the remarks made at Cop by Sir Keir Starmer, emphasising the importance of international cooperation and investment in sustainable infrastructure.

"As part of the British family, Guernsey is keen to support these efforts by using our expertise in, for example, the structuring and administration of infrastructure investments and channelling investments into sustainable infrastructure projects in the UK."

Research, conducted by Frontier Economics, demonstrates that Guernsey channels investment of £57 billion from around the world into the UK economy primarily in private equity, property and infrastructure, she said.

"For example, one particular Guernsey-domiciled solar fund collectively produces enough energy to power a city the size of York. With the announcements and commitments made at Cop, these investment structures are only set to grow and in Guernsey we are perfectly placed to support this."

Mukhtar Babayev, the environment minister of Azerbaijan, said at the start of this week: "The onus cannot fall entirely on government purses. Unleashing private finance for developing countries' transition has long been an ambition of climate talks.

"Without the private sector, there is no climate solution. The world needs more funds and it needs them faster. History shows we can mobilise the resources required; it's now a matter of political will."