In an ideal climate-resilient world, individuals, societies, and countries can thrive despite climate change's various risks, uncertainties, and threats. However, at the current pace where the global boiling concern looms large, temperatures worldwide are surging abnormally beyond manageable levels. As a consequence, climate resilience development may be impossible to achieve in some countries should temperatures exceed 2 degrees Celsius of warming. Therefore, collective action to achieve a climate-resilient world is more urgent than we might have thought. The finance industry, in particular, has a vital role to play.
CLIMATE RESILIENCE AND CLIMATE FINANCE
Climate change is already a significant challenge for developing countries, and the added burden of responding to sudden crises such as the COVID-19 pandemic only exacerbates the situation. Compounded with the unprecedented rising temperatures that underline the emergence of global boiling, this highlights the importance of having predictable and stable climate finance that ensures climate priorities are considered for the medium to long term while also being able to address short-term emergencies. However, the reality is that developed countries have fallen short of their pledge to provide $100 billion annually in climate finance to developing countries by 2020. Even with efforts underway to structure and operate the Loss and Damage Fund, a broader donor base is needed to address the scale of the problem. Developed countries must fulfill their commitments and provide the necessary support to ensure developing countries can progress toward climate resilience and sustainability.
A CALL TO MAKE CLIMATE RESILIENCE MAINSTREAM
Financial institutions must make a significant shift in their operations, programs, and activities to achieve effective climate change policies. This approach referred to as "mainstreaming," is crucial in ensuring that financial institutions can deliver sustainable short- and long-term results. It requires a comprehensive approach that considers climate change holistically and prioritizes sustainable investment practices, including how and where companies choose to invest and lend their capital. This, coupled with involvement and engagement with local communities, will ensure that resources are better aligned to meet needs.
The achievement of climate resilience is not a one-time event but rather a continuous process that requires the involvement of various stakeholders. Those with the most power and influence, which in this case are private and public financial institutions, need to reconsider their operational methods and intensify their efforts to address climate change. The cooperation of local stakeholders is also necessary to ensure the creation of an all-encompassing, durable, and eco-friendly future, avoiding a point of no return.
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