The world needs much more money to tackle the problems caused by climate change, according to the European Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra, speaking in an interview with RTL.
How to channel substantially more money into climate protection and adaptation will be the focus of the first edition of the Luxembourg International Climate Finance Days, organised by the Ministry of the Environment. The opening took place on Wednesday evening.
The Cercle Cité in Luxembourg City played host to a number of international guests, among them the Climate Commissioner, the President of the European Investment Bank (EIB) Nadia Calviño, and several European environment ministers, including from Estonia and Lithuania. Luxembourg’s Environment Minister Serge Wilmes reminded the audience that many countries, unlike those in Europe, simply do not have the financial means to fight climate change.
Wilmes said the paradox was that the less developed countries in Africa, Asia, and Latin America, which had contributed least to climate change, were the ones most affected by it. That, he said, was why, since the Paris Agreement, developed countries had committed to using part of their public money, namely tax revenue, to help these nations protect themselves against climate change, cut their CO2 emissions, and develop new energy sources at home.
Hundreds of billions still needed
Hundreds, if not thousands of billions are still needed worldwide, Wilmes said, and they could not come from public sources alone, since private investors would also have to be brought on board. How to mobilise that capital is being discussed in these workshops, conferences and round tables.
In Europe, the EIB is one of the key financial engines behind the green transition, with very close ties to the Luxembourg Stock Exchange, according to its president. It is a partnership that could be further deepened in the area of green financial bonds.
Calviño noted that just on Tuesday, the EIB had issued a green bond worth €5 billion, with demand running seven times higher than supply. This showed that the market was keen to invest, she said, allowing the bank to finance the green projects and investments that Europe so badly needs.
‘Others must also do more’
6% of all emissions come out of Europe, according to the Climate Commissioner. Compared with other parts of the world, he said, Europe is already pulling more than its weight in the fight against climate change, particularly in the area of financing.
Hoekstra said the 27 EU member states put up roughly a third of all the money mobilised internationally for climate protection and adaptation, which is why others must also do more. That, he said, was the first point.
Secondly, he argued, no continent of comparable size had done as much as Europe to bring down emissions. The bloc would continue to make strides and given current geopolitical tensions, Europe would have to take on more responsibility, but, he added, the burden could not rest on Europe alone.
Hoekstra said Europe would also do its utmost to work with partners across India, Latin America, Africa, and Asia. There is just one country, however, that cannot be brought to the table at the moment, namely the one responsible for the world’s second-highest emissions, the United States, at around 12%. The leading emitter remains China, which accounts for around a third of global emissions.