2023-Public-Sector-Perspectives

Mobilizing climate finance — toolkit With climate change being pushed to the forefront of the international agenda, there is growing momentum to mobilize climate financing for adaptation and mitigation efforts. According to the World Economic Forum, developing countries need to invest an additional $800 billion per year on climate mitigation by 2025, however, pledged global commitments, particularly from the private sector, may not make their way to the countries that need it the most. The Congo Basin and forests alike are further affected, as nature-related commitments are only a fraction that of climate. Most companies have climate-related targets (83%) or at least acknowledge climate change (15%), however, across other dimensions of nature the targets are much lower. For example, 51% of companies acknowledge biodiversity loss in some way, but only 5% have set quantified targets. Citi’s ESG agenda Citi is playing a key role in facilitating and supporting ESG transformations by tapping into a comprehensive array of development finance tools as well as playing a leading role in the industry’s drive to a more sustainable future. As part of Citi’s aim to further the acceleration to a sustainable, low-carbon economy that supports the needs of society, in March 2021, it announced its intent to achieve net zero emissions by 2050, including net zero for their operations by 2030. In addition, Citi committed $1 trillion in sustainable finance by 2030, including $500 billion for environmental finance and $500 billion for social finance, financed and facilitated $222 billion in sustainable finance activity in 2020 and 2021, and co-founded the Net Zero Banking Alliance, which will help establish an industry framework for decarbonizing the banking sector. Net zero 2030 targets 2030 financed emissions targets for Citi’s Energy and Power loan portfolios: Sector Climate Scenario 2020 Baseline 2030 Targets Energy (Scope 1, 2, 3) IEA NZE 2050 143.8 million mt CO 2 e 29% reduction from 2020 baseline 102.1 million mt CO 2 e Power (Scope 1) IEA SDS OECD 313.5 kg CO 2 e/MWh 63% reduction in Scope 1 intensity per MWh 115 kg CO 2 e/MWh The private sector, corporates and financial organizations have a critical responsibility for increasing investments in nature. Specifically, banks can facilitate and support these transformations by tapping into a comprehensive set of tools and levers, such as sustainability bonds, carbon credits, debt for nature swaps, and blended finance. 80 Congo Basin Maintains High Levels of Biodiversity and Natural Resources That Need to be Managed, Maintained and Monetized