Oxford Economics’ Global Climate Service has updated its Sustainable Development scenario, with a focus on the required mitigation funding.
It has modelled a scenario in which mitigation funding reaches $250-billion a year, Oxford Economics Scenarios and Macroeconomic Modelling climate economist Manuela Kiehl informed.
She was speaking during Oxford Economics’ webinar – “Global Climate Service: An Equitable Path for Sustainable Development”, held on January 19.
The Sustainable Development scenario is one in which advanced economies take a lead in climate mitigation and allow developing economies more time to reduce their emissions.
It also provides cross-country funding transfers, as developing economies do not have the necessary spending power to invest in green infrastructure and technologies.
This pathway is posited to provide developing economies with the space to pursue their climate agenda without compromising growth or the global transition.
The Sustainable Development scenario update comes following outcomes from the twenty-eighth Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change, held in the United Arab Emirates in the latter part of last year, where the issue of how climate transition is funded was pushed to this year.
COP28 emphasised the need for urgent action to reach net zero.
The closing window and need for a sharper course correction is reflected in higher carbon prices for the transition, Kiehl informed.
She pointed out that the outcomes of COP28 did not reflect the “dramatic shift” expected.
However, there were some “wins”, including the establishment of the Loss and Damage fund; as well as an acknowledgement of the need to transition away from fossil fuels.