How the Brazilian G20 Presidency Can Leave its Positive Mark on the Open Questions Around Climate Finance.
On 26 and 27 February 2024, the F20 Team had the unique opportunity to participate in the successful Brazilian Forum on Climate Finance in São Paulo, jointly organized by the Arapyaú Institute, the AYA Institute, the Climate and Society Institute (iCS), the Igarapé Institute, the Itaúsa Institute, the Open Society Foundations and Uma Concertação pela Amazônia.
It was our first ever visit to Brazil and we were tremendously delighted to meet many of our partners in the country. We engaged with foundations, philanthropies and civil society organizations who are active in the country and the region and who are already taking concrete steps to stop the climate crisis in a fair and just way. In order to align their work on climate action with the official G20 processes, the Brazilian Forum on Climate Finance in São Paulo brought together Brazilian civil society organizations on the alongside the G20 finance ministerial meetings in São Paulo.
On the opening day, three high level panels discussed the importance of integrating finance, climate and nature for a sustainable and fair global economy, with examples of what is already being done in Brazil and in the world, as well as the challenges needed to advance this agenda at the G20.
On the second day, three parallel tracks offered participants to opportunity to discuss in-depth several finance related topics that are on top of the agenda for the Brazilian G20 presidency. These included discussions around financing food systems transformation and the role of agri-food systems in climate change; incorporating elements of bioeconomy in local, regional and global economic decision making; nature-based financing solutions such as reforestation with a focus on the Amazon region and tropical forests, as well as the role of the private sector and decarbonization efforts.
With a view on spanning the arc between Brazil’s G20 presidency and the upcoming COP30 in 2025 in Belem, the discussions included a wide range of topics and provided participants from Brazil and beyond with insights on how Brazil can strengthen its role on the international climate agenda. Brazil leading the G20 creates an opportunity for countries, civil society, and businesses to work together on reforming the global financial system from the perspective of the so-called Global South.
The United Nations project that between approximately $4.3 and $5.9 trillion is required each year by 2030 to address the adverse effects of the climate crisis. However, the current outlook for both public and private funding to support adaptation and mitigation efforts falls short, given the pressing nature of the climate agenda.
Among the many insightful, thought-provoking, and highly engaging sessions it was hard to choose which ones to attend, but I would like to highlight two specifically important panels that reflect back on F20’s focus topics for the year 2024.
In a panel on the latest trends to strengthen the climate finance agenda F20 Chair Alice de Moraes Amorim Vogas, Director of Partnerships, Communication and Knowledge at iCS moderated a discussion about how to best finance the disproportional adaptation finance gap. As laid out in the UNEP Adaptation Gap Report the “estimated adaptation costs and needs for emerging societies are significantly higher than previous estimates, with a plausible central range of US$215 billion to US$387 billion per year this decade.”
Alice de Moraes Amorim Vogas highlighted that there are many different figures floating around the actual financing gap, but how the different financing instruments actually reach those who need the financial resources remains unclear. She argued that financial resources, whether tax mechanisms, subsidy redirection, public resources, private or philanthropic investment, should be aimed at helping to solve real-life problems.
Laurence Tubiana, CEO of the European Climate Foundation who was part of the panel noted that “We must keep in mind the element of social justice in climate finance issues,” and “we need different types of funding.”
In a second panel, co-hosted bey iCS and the Climate Policy Initiative (CPI) the panelists discussed next steps in global finance, on how public and private funding can be merged. The panel on reforming the architecture of the international financial system and the G20 agenda, also addressed the role in the climate agenda of multilateral development banks. It provided an overview on previous efforts, on concrete actions that need to be taken as early as this year, what to prioritize and who should be involved most in the build up to the G20 Brazil Summit to incentivize concrete action.
Luckily, the past two years have seen major contributions to the international finance architecture reform agenda discussions. Each of these offer policy prescriptions that address multiple, systemic issues, including increasing climate risks.
In her opening statement for the panel, Maria Netto Executive Director of iCS stated that “there is a crucial conversation going on about reforming the IMF, multilateral banks, regulating the financial system, and new ways to mobilize and channel resources. This conversation is fundamental because the risks, costs and difficulties of investing in climate are some of the main barriers to financing in the area.”
As the moderator of the session Barbara Buchner, CPI’s Global Director General emphasized the importance of not just acquiring funds but also comprehending the most efficient methods to utilize them. This understanding is crucial for multilateral banks to capitalize on available capital.
“We are bringing together the most diverse experts from the public and private sectors and thinking about a triple agenda of action: first, in sectoral platforms in each country, so that we stop thinking project by project, but develop a systemic approach; second, institutionally, on how to standardize and better use grant money; and lastly to create fairer risk-sharing instruments, mitigate exchange rate risks, grow the number of existing business models and attract more investments,” she said.
We used the opportunity of this visit to Brazil to meet many of our partners and discuss their involvement in our upcoming Climate Solutions Forum on 4-5 June in Rio de Janeiro. We are excited to work with our partners at iCS as our co-hosts and look forward to having many of you with us in Rio.
We are bringing back many great encounters and conversations, along with various ideas we aim to incorporate into our forum- and in our policy recommendations to the G20, which we hope to publish by the end of April. These recommendations will be officially introduced at the onset of our Climate Solutions Forum. We plan to outline our demands related to five critical areas:
- fostering an inclusive and just transition
- securing ambitious climate finance with an emphasis on accessibility
- building sustainable food systems
- implementing ecosystem-based adaptation and resilience measures, and
- reshaping global governance structures to ensure equitable engagement.
For those familiar with the Brazilian G20 agenda, these areas should sound familiar, as they mirror the priorities laid out by President Lula’s government for G20.
These focal points are not only integral to our forum’s agenda but will also be explored in the context of a broader challenge: determining the role of philanthropy in the Global South during this transition and designing an effective process to support it. It’s evident that waiting for a brighter future is no longer an option; we must take action now to shape a present worth living. This understanding has also inspired our Climate Solutions Forum motto:
“Accountability in Action – Building Bridges for North and South Partnerships.”
But for now, please let us congratulate iCS, the Igarapé Institute, the Itaúsa Institute, the Open Society Foundations and Uma Concertação pela Amazônia to a successful event, which truly highlighted the many open questions around climate finance that we need to grapple as a global community.
