Climate change is a global issue that seeks the utmost attention across the globe. The efforts at inter-governmental, community, and individual levels are taking place on priority to counter the rising challenges that can fix the issue and save the planet Earth. To attain a viable future and minimize the ill impacts, a huge demand for climate funds and investments is needed which can fuel the growth of a low-carbon economy across the globe.

The United Nations Conference on Trade and Development (UNCTAD) Report estimates the need for around US $4 Trillion in finance annually to fight against climate change and achieve SDG targets. The key multilateral development banks lent US $230 billion in 2020 which was a mere share of the total finance needed to scale up the climate efforts in a conducive policy space.

The world is developing mechanisms that can effectively fill these gaps and amplify climate investment to nurture sustainable growth. As per the estimated targets of 2030, a mere 6% of the investment needed by 2025 has been met to date through various means such as public funds, institutional lending, etc.

To fill this gap, the World Economic Forum (WEF) has devised a Philanthropic Public-private Partnership with the name of “Giving to Amplify Earth Action” (GAVA). It will give a new push to accelerate climate efforts and save nature. With more than 100 committed partners, the initiative will catalyze the transformational shift in speed and scale of climate investment. It will create the flow of seed capital to increase the financial resources with the help of sustainable business practices.

Apart from this, the Exchange-traded Funds (ETFs) synced with ESG attributes are also designed to meet the growing demand for climate investment with a key focus on carbon emission. Thus, the world is moving forward with diversified cutting-edge investment solutions to nurture a fossil-free sustainable future that has more operational efficiency.

These efforts will promote safe and sustainable climate funds that can benefit diverse stakeholders through the identification of new interventions to support long-term success. The increased investment choices combined with effective policy change and continuous corporate engagement promise to strengthen the scenario of climate finance globally.