EIT Climate-KIC joins ground-breaking public-private initiative to mobilise climate finance
Davos, Switzerland, 17 January 2023 – EIT Climate-KIC joins the Giving to Amplify Earth Action (GAEA), a global initiative launched by the World Economic Forum in Davos and supported by more than 45 philanthropic, public and private sector partners to unlock the $3 trillion of financing needed each year to tackle climate change and nature loss.
The climate emergency is exacerbating the energy and cost of living crises and food insecurity, which already affect the most vulnerable populations. The solutions to these interconnected crises exist, but as the frequency, scale and impacts of climate change continue to intensify, current funding is desperately slow and inadequate.
While philanthropic financing for climate mitigation has risen in recent years, it still represents less than two per cent of total philanthropic giving, estimated at $810 billion in 2021. Yet, it is more tolerant of risks and is driven by values and long-term outcomes rather than quarterly returns, which makes it an essential piece of the climate-financing puzzle.
“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.
A new approach to get climate finance flowing
Over the next 12 months, the Giving to Amplify Earth Action initiative will work on:
• Convening 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,
• Piloting and refining funding models that can support public, private and philanthropic partners interventions,
• Scaling up and replicating successful approaches to new sectors, regions and actors.
GAEA will build on existing examples of success. For example, the Government of the Seychelles has leveraged philanthropic funding, public loan guarantees and private investment to raise $15 million through a blue bond and convert $22 million of government debt into conservation funding to protect 13 marine areas, covering an area larger than Germany.
“We are thrilled to join the GAEA initiative and add our voice to the growing chorus calling for a catalytic shift from competition dynamics to collaboration dynamics in resourcing and implementing climate action. Working together, public, private and philanthropic funding can make all the difference to lift ambition, create leverage and build momentum for transformation. This is essential if we are to stand a chance of achieving the structural, systemic, institutional change that we so urgently need.” Kirsten Dunlop, Chief Executive Officer, EIT Climate-KIC.
Climate finance is equally important for mitigation (as large-scale investments are required to significantly reduce emissions) and adaptation (as significant financial resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate). Money was a central focus of the UN climate conference COP27 that took place in Egypt in November 2022, given the widening gap between what has been pledged, and what is needed.
On 23 March 2021, EIT Climate-KIC, with the support...