UNCTAD seeks more climate adaptation funds for developing countries

A recent report by the United Nations Conference on Trade and Development (UNCTAD) is urging for more climate adaptation funds to be directed towards developing countries, emphasizing the need for reform within the international financial system. The report, released ahead of the COP26 summit, highlights the critical importance of addressing climate adaptation alongside mitigation efforts. Anastasia Nesvetailova, Head of Macroeconomic and Development Policies at UNCTAD, discussed the key findings of the report in an exclusive interview with CNBC Africa. The report delves into the prospects for the global economy post-COVID, cautioning against a return to 'normality' that could overlook the urgent need for climate adaptation measures. It underscores the historical neglect of adaptation initiatives compared to mitigation strategies, which have traditionally received more attention and funding. Nesvetailova stressed that climate adaptation is essential for building resilience in economies, societies, and communities, particularly in developing nations. She emphasized that effective adaptation strategies are crucial for the long-term sustainability of the global economy. The report calls for a shift in focus towards green development models that prioritize climate resilience and sustainability as core elements of economic policy. Nesvetailova highlighted the interconnected nature of climate adaptation and development, portraying it as a fundamental aspect of the developmental agenda for the 21st century. The report outlines key reform proposals aimed at mobilizing financial resources for climate adaptation in developing countries. It advocates for a new consensus and global green new deal to drive multilateral cooperation and support for climate-resilient development. The proposals encompass various measures, including official development assistance, multilateral development banks, debt relief and restructuring, and the expansion of green bond markets. Nesvetailova explained that these areas were selected due to the historical disadvantage faced by developing countries in addressing climate challenges. She stressed the need for a significant increase in capital to support climate adaptation efforts, highlighting the role of publicly funded institutions and multilateral banks in mobilizing resources for transformative agendas. The report calls for innovative financing mechanisms that go beyond traditional private capital approaches, aiming to foster a more anticipatory and proactive response to climate risks. Nesvetailova underscored the importance of moving towards a more transformative agenda that addresses the systemic barriers to climate adaptation in developing countries. The report's recommendations aim to catalyze a paradigm shift in how climate finance is allocated and utilized, with a focus on promoting sustainable and inclusive development models that prioritize resilience and adaptation. As the international community prepares for the COP26 summit and discussions on climate action intensify, the UNCTAD report serves as a timely and critical call to action for increased support and funding for climate adaptation in developing countries.