Toward Accelerating Climate Finance:Forging a New Partnership between theGlobal South and the Global North

Economywide decarbonization is essential for achieving the climate goals set in the ParisAgreement. This will require deploying and scaling up green infrastructure and technologies.While finance flows toward climate action—both mitigation and adaptation—have beenincreasing, the rate of increase has been much slower compared to the rate of growthof required investment, leading to a growing climate finance gap. Emerging market anddeveloping economies (EMDEs) and least developed countries (LDCs), in particular, haveseen significant gaps in both mitigation and adaptation. Further, in a majority of developingcountries, public finances are strained, inflation is high, and debt is mounting due to thepandemic and volatile geopolitical conditions. This compounds the problem, especially in lightof the fact that EMDEs and LDCs will witness rapid growth and need increased investments.The Policy Brief looks at ways to address this gap and the role of Group of Seven countries insupporting this journey.