Management SpeechesOpening Remarks by Mr. Anil Kishora (VP & CRO) at NDB Side Event at COP29

Distinguished guests, ladies and gentlemen,

It is an honour for me to welcome you on behalf of the NDB at this event on "Opportunities and Means to Support Low-Emission Transitions".

Today, we have a distinguished set of panellists. Our sincere appreciation to you for taking the time to participate in the discussion. Our appreciation to our audience as well for being present here or online.

As we gather here, the urgency of reaching the Paris Agreement goals is clearer than ever. Not to talk of 1.5 degree C, even 2 degree scenario is fading fast. We risk severe impacts on our ecosystems and societies by the end of this century.

Well, end of the century might feel like far off to some people. To my mind, there is another immediate reason as well for low-emission transition.

The world is urbanising fast. Population density is rapidly increasing in cities and towns. More and more people are migrating from rural areas. Transport, air conditioning and other systems must move to low emission energy to provide a liveable space for the residents. Clean air is a basic requirement for healthy living, for being productive.

Whatever be our time horizon, transition demands a practical strategy that covers solutions in three key areas: climate finance, green technology, and capacity building.

Let me start with capacity building. We need to be able to use the finance we have and the available technology in the most impactful way. That requires significant capacity building, esp. for adaptation.

At COP28, NDB led an event focused on how stakeholders, including MDBs like us, can help countries build the capacity to address climate challenges.

Capacity building covers several areas: awareness about climate risks, planning credible transitions, and creating policies that make climate finance work better. It will be a catalyst if all of us, from local communities to policymakers, understand how to adapt and take advantage of new opportunities from this transition.

Second, green technology. There has been tremendous progress in green technology over the last decade. Renewable energy has become more affordable. New green technologies are emerging. Of course, a breakthrough in storage technologies is a game changer we are waiting for.

Half of the world's largest 2,000 companies have committed to achieving net zero. This will surely spur development & adoption of new technologies.

Finally, climate finance. Climate finance has been a major focus in global discussions. It is a core part of MDBs' efforts. In 2023, MDBs provided 125 billion USD globally for climate actions, of which 60% was directed to low and middle-income countries.

This is the third year in a row that MDBs have exceeded their UN Climate Summit commitment from 2019.

However, some might still call it a drop in the ocean. Much more financial support is needed. Emerging Markets & Developing Countries alone require about 1 trillion USD per year in external funding. The good news is there is some progress towards accelerating flows.

The G20 Sustainable Finance Working Group has recently reviewed major climate and environmental funds like the Green Climate Fund. Their recommendations aim to simplify and harmonize procedures, and make it easier for countries to access resources.

Another major driver could be the green capital markets. By 2023, sustainable debt, including green, social, and sustainability-linked instruments, had reached an impressive USD 4.4 trillion. Demand is also rising for transition bonds.

In this area, we need innovations which make climate borrowings distinctly cheaper for the investors.

Three areas.

The three areas I mentioned - Capacity building, Technology and Finance are well recognised. The challenge is to gain scale and speed. We need breakthroughs. We need pragmatic solutions. Above all, we need true global collaboration to orchestrate a just & inclusive transition for the millions who still aspire for the bare minimums in life.

Ladies and gentlemen,

This year at COP, we are expecting many crucial discussions, including the New Collective Quantified Goal (NCQG) on climate finance. We hope the various dialogues, including our today's panel discussion, will spark helpful ideas and actions.

We look forward to listening to our panellists, leaders in knowledge, policy, and business. We also hope to strengthen partnerships through this dialogue to inspire our joint mission ahead.

Thank you.

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