UNCDF in Action at #FFD2022: Outcomes of the High-Level Dialogue-Leveraging the Potential of Green Bonds to Scale-Up Climate Action

We are extremely pleased to share outcomes from our High-Level Dialogue inon Leveraging the Potential of Green Bonds to Scale-Up Climate Action, where global leaders highlighted a number of concrete actions that need to be taken in order to improve developing countries’ access to affordable green debt markets. Such actions include supporting developing countries to:

• Create a conducive investment environment, improve credit ratings, and strengthen the market infrastructure required for capital market depth and liquidity.
• Identify, assess and report on a pipeline of underlying green assets, through impact frameworks, taxonomies, and translating nationally determined contributions (NDCs) and national adaptation plans (NAPs) into investment plans.
• Design and scale-up financing instruments, including credit-enhancement and blended finance mechanisms, to lower the cost of borrowing and improve investment grade levels.
•  Create partnerships and strengthen investor relationships with developing countries, local governments and domestic financial institutions to improve investor understanding and confidence.

Implementing such actions at scale will require multi-stakeholder initiatives and partnerships. UNCDF looks forward to working with its partners to take these actions forward as we move towards COP 27 and the implementation of the Doha Programme of Action for LDCs.

Fiona Bayat-Renoux

Chief, Green Climate Finance Unit, UN Capital Development Fund