German Chancellor Olaf Scholz said efforts to fight climate change should rely more heavily on private investment in addition to public funding during a speech to the Petersberg Climate Dialogue on Friday.
"A discussion that only focuses on public funding commitments falls far short of the mark. We need a new approach to financing climate protection worldwide," Scholz said in Berlin.
He pointed out that, according to expert estimates, $2.4 trillion would be needed annually by 2030 for the transition to climate-friendly energy in developing and emerging countries alone.
"That is a huge sum," said Scholz. "Public money alone, and from a manageable group of countries, will not be enough for investments of this magnitude even with the best of intentions."
The financing of the energy transition and other measures to address climate change need to be oriented more towards enabling private investment in sustainable growth, Scholz said.
As an example, he suggested that development banks could secure investments in local currencies or drive forward major projects jointly with private investors.
Scholz acknowledged that major industrialized countries had to bear the primary responsibility for reducing greenhouse gas emissions.
However, he argued that financing climate measures should not be limited to a few industrialized countries.
The next UN Climate Change Conference will be held in the Azerbaijani capital of Baku at the end of 2024, with the goal of agreeing on new financial targets that would go into effect in 2025.
Azerbaijani President Ilham Aliyev also took part in the Petersberg Climate Dialogue in Berlin. The event, attended by representatives from 40 countries, is considered an important milestone on the way to the Baku climate conference.
