The COVID-19 crisis is posing significant challenges as the climate investment gap is now expected to widen even further. As developing countries are now facing significant fiscal constraints due to the Covid-19 Crisis, the amount of domestic resources available for climate action is likely to shrink. However, the recovery also presents a pivotal opportunity for developing countries to ensure that stimulus packages support a transition towards low-emissions, climate-resilient economies. In addition, numerous challenges to mobilising private investment at scale to climate projects in developing countries continue to exist and development banks will need to continue to serve as important sources of climate finance in developing countries. As a result, the COVID-19 crisis and climate crisis are likely to require them to catalyse additional financial resources towards the achievement of the Paris Agreement. In light of COP 26, how could we accelerate the momentum towards the achievement of the Paris Agreement? How can development banks contribute to accelerate the green transition?
4.1 Fireside chat: The role of development banks to accelerate the green transition