G20 governments want to include private money in climate funding

Bloomberg News has obtained statement ahead of the G20 financial ministers meeting, in which the ministers said they would "encourage multilateral development banks to raise private funds to accomplish goals set under the 2015 Paris climate accord." The statement does not mention government financial support.

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The final statement draft has alarmed the Asia Pacific Rainforest Partnership Private Sector Roundtable, a group of companies working in endangered rainforest regions. In an open letter, the group asks the ministers to create financial mechanisms that increase return and decrease risk, if they want to increase involvement from the private sector. The group has pointed out that "critical gap still exists between ambition and reality in efforts to combat climate change."

Businessmen from the mentioned group claim that improved agricultural and forestry practices offer greater potential for "near-term carbon mitigation" than any other strategies. CO2 storage in plants currently, however, garners less than five percent of public climate finance.

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Article source Deutsche Welle - Germany’s international broadcaster
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