The United States announced on Wednesday (3) its support for a new capital market mechanism that will issue investment-grade bonds and raise significant new financing to increase clean energy and sustainable infrastructure in emerging economies.
Underscoring the urgency to act to halt global warming, US Treasury Secretary Janet Yellen told the COP26 climate conference, which takes place in the Scottish city of Glasgow, that the United States will join the United Kingdom in supporting the new mechanism. Capital Markets of the Climate Investment Fund (CIF) and its innovative leverage structure mechanism.
She added that the initiative will help attract significant new private climate funds and will provide $500 million a year to CIF’s Clean Technology Fund, as well as its new Accelerated Coal Transition investment program.
CIF was created in 2008 to mobilize resources and investments in low- and middle-income countries. It has attracted about $10.5 billion in pledges from 14 contributing countries and leveraged $61 billion in funding from other sources for projects that have benefited 72 countries to date.
“The climate crisis is already here. This is not a challenge for future generations, but one that we must face today,” Yellen said in prepared comments. “Addressing this challenge will require the complete transformation of our carbon-intensive economies.”
The venture is expected to cost between $100 trillion to $150 trillion over the next three decades and also offers huge opportunities for growth and investment, she said.
Reference: CNN Brasil
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