Inaugural Session of Experts’ Advisory Group on LDFM©

Hosts: AirQualityAsia
Location: Webinar, New York, USA

On February 7, 2024, Sustainable World Inc. and its program AirQualityAsia [SW-AQA] held the inaugural session of the Expert Advisory Group [EAG] for the Loss & Damage Finance Mechanism [LDFMⓒ]. The session outlined three working groups within the EAG, with each group presenting preliminary findings to Parliamentary Finance Committees convened by SW-AQA by September – October 2024. The Expert Advisory Group convenes climate finance experts to develop Loss & Damage solutions for climate-vulnerable nations that bridge the funding gap between available public sector financing and investment funds through capital markets in developed nations.

The Capital Markets Finance Working Group will assess & develop financing mechanisms to attract capital from the private sector  to support solutions that mitigate  present climate impacts and future risks. The mechanisms include private climate risk insurance, green bonds, debt-for-climate swaps, and new blended finance mechanisms to leverage capital from private equity markets. The assessments will be grounded in climate stress tests and mitigation pathways.

The Capacity Building Working Group will develop strategies to build capacity within V-20 Climate Vulnerable nations for implementing Loss & Damage Finance from the private sector. The strategies include providing technical assistance to national treasuries, ministries of finance, and parliamentary finance committees, and creating a climate-focused investment regulatory framework in collaboration with the IFI’s to build effective L&D strategies aligned with global standards and requirements of capital markets.

The Just Transition Working Group will develop a funding framework that ensures Loss & Damage funding upholds just transition principles, including local stakeholder involvement, debt relief, and equity.

Next article

Knowledge Partners Strategy Session