Inputs to the Outcome Document

Addressing both social and environmental objectives is essential to mitigate risks and seize opportunities related to the low-carbon transition. A just transition requires supportive financial flows and enabling financial systems. Member States can support mobilization of financial resources for a just transition by leveraging public development banks, incentivizing the use of financing instruments that attract private capital, developing comprehensive sustainable finance frameworks that consider social and environmental objectives, and developing capacities within the financial system.

This policy brief explores innovative approaches to mobilizing climate finance, focusing on both public and private sector contributions. It highlights the urgent need for scalable finance solutions, given global economic volatility and rising debt levels in developing countries. Key solutions include unlocking alternative funding sources, leveraging debt restructuring, scaling blended finance, and utilizing innovative financial instruments. The Green Climate Fund (GCF) plays a critical role in catalyzing such investments and driving climate action, particularly in support of the most vulnerable.