Category: Climate Finance
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Climate Crossroads After 2025: Why Water Security Reveals the Stakes
2025 presented a jarring juxtaposition: on the one hand, rollbacks in climate policy by some of the world’s largest economies threatened to slow collective action; on the other hand, the clean energy revolution and on-the-ground adaptation efforts (often supported by multilateral finance) forged ahead, showcasing solutions. The implications for climate finance and water security are…
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Breaking the Debt–Disaster Trap for Small Island Developing States (SIDS)
#SIDS face severe debt vulnerabilities, with nearly half of SIDS (around 40–45%) already at high risk of debt distress or in debt distress, 13% at moderate risk, and only about 42% at low risk. These tiny economies carry disproportionately heavy debt burdens of government debt averages 57% of GDP in small states (about 10 percentage…
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A NextGenerationEU-Style Green Bond Model for LDCs and SIDS
LDCs and SIDS can benefit immensely from a NextGenerationEU (NGEU) https://lnkd.in/eQj6p_wt) style green bond approach, but it must be customized to their realities. The core idea is to mobilize global investor capital at scale and channel it into climate and green development projects in vulnerable economies, blending public and private finance. By employing credit enhancements…
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Debt, Water, and Vulnerability: Why LDCs and SIDS Need Highly Concessional Blended Finance
LDCs and SIDS face a dual crisis of high debt and underinvestment in water infrastructure. Only 37% of LDC residents have access to safely managed drinking water, reflecting a huge infrastructure gap. Government debt in LDCs has climbed to roughly 60% of GDP on average (2023), up from 41% a decade ago. As of late…
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Why Blended and Concessional Finance Are Critical for Water Security and Climate Resilience
Blended and concessional finance are essential to bridge the huge investment gap in water security and climate resilience. Public resources alone cover only a fraction of the multi‑trillion-dollar funding needed to ensure safe water and adapt to climate change. In Asia and the Pacific, for example, less than 40% of the $250 billion needed annually for…
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Water as an Asset Class: Mobilising Finance for Water Security and Resilience
Climate change is intensifying floods, droughts, and water scarcity. However, global financing for water security and climate resilience falls far short of what’s needed. A 2024 survey of 59 Ministries of Finance (MoFs) finds that while finance leaders recognise water-related climate risks, few have fully integrated these risks into economic planning or mobilised adequate investment.…
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Financing the Future at COP30: Climate-Resilient Water Systems through Blended Models
As global climate finance efforts intensify in the COP30, blended finance has emerged as a pivotal mechanism for mobilizing private capital toward climate-resilient infrastructure. Between 2019 and 2024, climate blended finance mobilized over $77 billion globally, with $15.5 billion deployed in 2024 alone. Efficiency gains are evident that each concessional dollar now attracts $4.14 in…
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Water at the Heart of Climate Finance and Adaptation
Climate change is a water crisis. Floods, droughts, and water scarcity are intensifying worldwide, underscoring that water security must be at the forefront of climate resilience strategies. As the global community prepares for COP 30 in Belém, Brazil, aligning water management with climate finance is no longer optional – it is urgent and strategic. The…
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Scaling Innovative Finance for Climate Adaptation and Disaster Risk Reduction
Developing and scaling innovative financing instruments that integrate climate change adaptation with disaster risk reduction into national financial frameworks require leveraging domestic resources and private capital through resilience bonds, risk-sharing instruments, and blended finance solutions. Establishing dedicated financial taxonomies and standards to guide investments in CCA and DRR, which ensure that funding is directed toward…
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Climate Change and Sovereign Credit Ratings in a Warming World
Do sovereign credit ratings adequately reflect the risks posed by climate change? Climate change has become a critical factor in determining sovereign credit ratings, as evidenced by research spanning 124 countries over two decades. The study reveals that physical risks, such as higher temperature anomalies and natural disasters, are directly linked to lower sovereign credit…
Bapon (SHM) Fakhruddin, PhD 