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From 16-19 April 2024, was a global week of Climate Justice Finance Mobilizations holding governments, UN climate talks, private banks, the IMF and World Bank, and multilateral development banks – those that hold the purse strings – to account. Several organizations and networks including Climate Action Network Zimbabwe did some digital day of action on issues relating to climate justice and finance considering that finance is at the Centre of the climate story!
“We all want climate action. But to solve the climate crisis that is pushing our planet to the brink, we need to fix the world’s financial flows. Far more of the world’s money is still flowing to the causes of the climate crisis, than to the solutions,” said Wellington Madumira Coordinator of Climate Action Network Zimbabwe
“Let’s face it – the climate crisis is really about money. Harmful money, helpful money, too much money going to the wrong things, or too little money going to the right things. Money flows connect North and South, harmful corporations and local communities, crises and solutions comment,” said Justice Zvaita from the Zimbabwe Climate Change Coalition.
“The fix finance mobilization advocates for stopping financing fossil fuels and harmful industrial agriculture, and for governments to use public funds to solve the climate crisis instead of causing it. The week amplified demands on COP29’s climate finance goal, the need to finance the transition, the need to end the debt crisis, and more! Together we can tell the story that we cannot fix the climate crisis unless we fix the money flows,” Tendai Gracious Moyo Director of Let’s Green the Future.
Fixing climate finance is crucial for addressing the challenges of climate change and transitioning to a sustainable future. Here are several key steps discussed by Climate Action Network members in improving climate finance:
Increase Funding: “Governments, international organizations, and private sector entities should significantly increase funding for climate change mitigation and adaptation efforts. This can be achieved through a combination of public and private investments, international cooperation, and innovative financing mechanisms – Nyasha Kashiri A resident of Kuwadzana
“There is a need to encourage private sector investment in climate-friendly projects by providing incentives such as tax breaks, grants, and subsidies. Governments can also implement policies that promote sustainable practices, renewable energy development, and green technologies, making them more attractive for private investment – Melisa Murwira Director with Young Volunteers of the Environment
Mr Walter Mushaiwa said that there is a need to strengthen International Cooperation: “Enhance international cooperation and collaboration in climate finance. This involves supporting initiatives like the Green Climate Fund (GCF) and the Global Environment Facility (GEF), which provide financial assistance to developing countries for climate-related projects.”
The need to establish clear accountability mechanisms to ensure that climate finance is used effectively and efficiently was alluded by Mr Togarasei Fakarai from Birdlife Zimbabwe. This includes transparent reporting on how funds are allocated, disbursed, and utilized. Implementing robust monitoring and evaluation systems can help identify successes, challenges, and areas for improvement.
Enhance Access to Finance for Developing Countries was noted during the engagement: Facilitate access to climate finance for developing countries, particularly those most vulnerable to climate change impacts. Simplify application processes, provide technical assistance, and build capacity to enable effective utilization of funds. Innovative financial mechanisms, such as green bonds and climate risk insurance, can also improve access to finance.
There is a need to encourage the development and adoption of green financial instruments, such as green bonds and sustainability-linked loans. These instruments enable investors to support environmentally friendly projects while generating financial returns. Governments can incentivize their issuance and provide regulatory frameworks that promote their growth.
Naume Bekete noted the need to encourage financial institutions to assess and disclose climate-related risks in their portfolios, making climate risk analysis a standard practice. This can help redirect investments away from high-carbon activities and toward climate-friendly projects.
Tinashe Mangosho said that there is a need to invest in research and development of clean technologies, renewable energy, and climate resilience solutions. Support innovation through grants, subsidies, and public-private partnerships to accelerate the deployment of sustainable technologies and reduce their costs.
Tafadzwa Director of Kuwadzana Press said that there is a need to promote education and capacity-building programs to enhance understanding of climate finance among policymakers, financial institutions, and other relevant stakeholders. This will enable better decision-making and foster the development of expertise in designing and implementing climate finance strategies.
In conclusion, Wellington Madumira Coordinator for Climate Action Network Zimbabwe said that fixing climate finance requires a comprehensive approach that involves all stakeholders, including governments, international organizations, financial institutions, and the private sector. By implementing these measures, we can create a financial system that supports the transition to a low-carbon, climate-resilient future.