There is a US$4 trillion funding gap compared with the US$5 trillion annual investment the world needs to make by 2030 to reach the Paris Agreement’s ambition to contain global warming at 1.5 degrees Celsius by achieving net zero carbon emissions by 2050, the International Renewable Energy Agency estimated last year. 04:44 Cop28 climate summit
“A taxonomy is very important for transition financing, so that banks have a common standard to follow in terms of the issuance of bonds and loans.” Transition finance refers to bonds and loans that help companies turn their carbon-intensive operations into climate-neutral outfits aligned with global green ambitions. The development of transition finance has been
“A more favourable interest rate environment in 2024 can be conducive to increased issuance of green bonds or sustainability-linked bonds,” said Tu. “But we need to find a variety of transition financing to support companies’ decarbonisation initiatives.” A photovoltaic power generation base in Taizhou, Jiangsu province, China. Photo: Getty Images Sustainable debt is tied to