Context:
Climate-vulnerable countries face significant hurdles, including a general lack of collective voice and a persistent representation deficit of climate-vulnerable states in global processes that are dominated by rich and/or large countries as well as high costs of capital, unsustainable debt levels, and heightened financial instability due to climate vulnerabilities:
Cost of Capital:
● Climate vulnerabilities are a threat multiplier for climate-vulnerable countries, impacting the cost of capital, risk premiums, credit ratings, and debt levels, exposing their economies and communities.
● Rising debt and cost of capital are not solely because of external shocks like the pandemic but also due to an outdated global financial architecture that does not address the multiplicity and complexity of risks V20 Finance Ministers must manage.
● Higher relative costs of capital remain a primary hurdle to financing the adaptation of infrastructure and realizing rapid progress towards the low-carbon transition.
Debt:
● Funding and liquidity are needed by the V20 to handle multiple crises of growing complexity.
● The liquidity crunch faced by V20 economies is not entirely their own making. A global financial system unresponsive to climate change realities means more developing countries are forced into fiscal distress or default, not because of long-term insolvency, but due to a lack of cash on hand, hard currency, and exchange rate volatility.
● If the 1.74 billion population that CVF represents is to contribute to global decarbonization and the accelerated realization of SDGs, the international public finance community and central banks must help the V20 manage these shorter-term liquidity challenges. Debt restructuring and credit enhancement as climate resilience tools will safeguard creditors’ assets while unlocking new resources.
Risks and Instability:
● Weather extremes can trigger financial instability in vulnerable countries by wiping out capital stock and sources of foreign exchange.
● Growing contingent liabilities result from worsening extreme weather events combined with increasingly volatile, expensive, and unreliable fossil fuels.
These challenges are exacerbated by an outdated global financial architecture that fails to account for the multifaceted risks faced by these nations. The Climate Prosperity Plans (CPPs) are designed to address these issues by leveraging international economic cooperation and strategic investments in renewable energy and resilience projects.
Key objectives of the event:
Aspirational statements are vital but insufficient. The CPP Investor Session aims to drive resource mobilization for the Climate Prosperity Plans of member countries. CPPs are development-positive pipelines — climate-neutral conveyor belts designed to deliver investments and prosperity. Critical to their success is catalytic deals to unlock capital. The aims of this session include:
1. Showcase ongoing CPP projects/programs in CVF-V20 member countries.
2. Provide opportunities for investors and development partners to share their requirements and collaborate with CVF-V20 member countries.
3. Share insight into greater attention to rapid resilience outcomes can drive greater trade and decarbonization contributions.
4. Highlight the enabling role that parliamentarians play in moving the renewable energy agenda forward.
5. Update on power sector trends and green industrial policy in order to shape the joint 100RE Resilient Futures Program to focus on just energy transitions for the labor force, renewable energy investments, grid modernization, and participation in critical minerals production and manufacturing, through Green Industrial Policy opportunities.
6. Share opportunities for trade partners to support greater opportunities for regional cooperation to unlock the full potential of integrating green industrial policy to harness collective strengths—pooling resources, sharing technology, and aligning fiscal approaches and development policies—to consolidate renewable energy wealth and scale up renewable energy projects and accelerate the transition to sustainable and resilient economies.
Format & Participation
● In-person meeting, hosted on the margins of the 79th Session of the United Nations General Assembly (UNGA 79)
● 20 seats around the main table with CVF/V20 presidency.
● Representatives from the following institutions attended the meeting:
1. CVF-V20 Member Country Representatives including officials and parliamentarians
2. Investors
3. Philanthropies
4. Key Partners:
a. Global Renewable Congress (GRC)
b. Southern African Development Community Parliamentary Forum (SADC PF)
c. International Renewable Energy Agency (IRENA)
d. Institute for Energy Economics and Financial Analysis (IEEFA)
e. Net Zero Industrial Policy Lab
5. CVF-V20 Secretariat
About Partners:
Global Renewable Congress
The Global Renewable Congress (GRC) is chaired by Ms. Bärbel Höhn, former MP of the German Bundestag and acting Commissioner for Energy Reform in Africa for the Federal Ministry of Economic Cooperation and Development. The Chair has a representative role and provides contacts to networks, legislators, and experts around the globe. The Advisory Board of the GRC, consisting of key stakeholders in the field of renewables, from science/research, business, civil society, ministers, and former legislators and Members of Parliament, promotes the vast opportunities and benefits of renewable energies. As an independent body of the GRC, the Board embraces its goals and functions as a sounding board for legislators and MPs.
Southern African Development Community Parliamentary Forum
The SADC Parliamentary Forum (SADC PF) was established as an institution of the Southern African Development Community, in accordance with Article 9(2) of the SADC Treaty on 8th September 1997, by the SADC Summit of Heads of State and Government held in Blantyre, Malawi. The Summit’s main objective for establishing the Forum was to “constitute a Regional Parliamentary Framework for dialogue on issues of regional interest and concern”. Currently, the SADC Parliamentary Forum has a membership of Fifteen (15) parliaments representing over 3500 parliamentarians in the SADC region. These member parliaments are Angola, Botswana, Democratic Republic of Congo (DRC), Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Seychelles, Tanzania, Zambia, and Zimbabwe. The Forum seeks to bring regional experiences to bear at the national level, to promote best practices in the role of parliaments in regional cooperation and integration as outlined in the SADC Treaty and the Forum Constitution. Its main aim is to provide a platform for parliaments and parliamentarians to promote and improve regional integration in the SADC region, through parliamentary involvement.
International Renewable Energy Agency
The International Renewable Energy Agency (IRENA) is a lead global intergovernmental agency for energy transformation that serves as the principal platform for international cooperation, supports countries in their energy transitions, and provides state of the art data and analyses on technology, innovation, policy, finance and investment. IRENA drives the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy in the pursuit of sustainable development, energy access, and energy security, for economic and social resilience and prosperity and a climate-proof future. IRENA’s membership comprises 168 countries and the EU. Together, they decide on the Agency’s strategic direction and programmatic activities, in line with the global energy discourse and priorities to accelerate the deployment of renewables-based energy transitions worldwide.
Institute for Energy Economics and Financial Analysis
The Institute for Energy Economics and Financial Analysis (IEEFA) examines issues related to energy markets, trends, and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.
Net Zero Industrial Policy Lab
The Net Zero Industrial Policy Lab at Johns Hopkins University combines the technical analysis of clean energy supply chains with the study of net-zero industrial policies to catalyze strategic collaborations between government and industry.
About Climate Prosperity Plans and Implementation
The Climate Prosperity Plans (CPPs) are strategic investment plans aimed at achieving Sustainable Development Goals (SDGs) and attracting investments in resilient, low-carbon projects. These plans mobilize resources and support sustainable development through macroeconomic modeling, project pipelines, and green industrial policies. This includes mobilizing deal teams to work with key corporate players and aggregators of micro, small, and medium-sized enterprises to mobilize private investment in adaptation, carbon sinkin,g and biodiversity protection. https://cvfv20.org/climate-prosperity-plans
