Financial Systems Transformation

November 28, 2023

The 28th Climate Change Conference in Dubai this year (COP 28) marks a pivotal moment in time, with parties slated to participate in the first ever Global Stocktake. As part of reflecting on the progress made on climate goals, COP 28 is expected to highlight the contentious and urgent issue of finance for climate change once again.

It was established at COP 27 in Sharm el-Sheikh, that an annual investment of at least US $4–6 trillion would be required for a global transformation to a low-carbon economy.1 It was also highlighted that delivering such funding would need a transformation of global financial systems, along with its structures and processes. One year since, the focus on engaging central banks, commercial banks, institutional investors, governments and other financial actors for reforming financial systems has intensified along with the focus on increasing the quantum of climate finance required by developing countries.