Goal 13 in Agenda 2030
Climate change is one of the greatest challenges of our time and it is important to take action to accelerate the green transition. Heat waves, droughts and floods are affecting billions of people and disrupting global ecosystems. At the same time, Russia’s invasion of Ukraine, the global energy crisis and the effects of the Covid-19 pandemic have all contributed to the climate issue being overshadowed.
Achieving goal 13 of Agenda 2030 - to combat climate change - will require immediate and substantial reductions in emissions, alongside adaptation measures. Climate change makes it more difficult for people to escape from poverty, hits vulnerable groups such as women and girls the hardest, and leads to increased conflicts over resources, such as food and water. Goal 13 is therefore also a prerequisite forachieving the other goals of Agenda 2030.
The climate issue has never been more crucial
Climate change is the greatest global challenge of our time. Greenhouse gas emissions continue to increase, and we are heading for temperature rises that are well above the target set out in the Paris Agreement. In order to reverse the trend and achieve goal 13 of Agenda 2030, powerful initiatives will be needed to bring about reductions in emissions. At the same time, the adaptability and resilience of societies and individuals will need to be strengthened in order to withstand the effects of climate change.
Global warming is accelerating
The latest report by the United Nations Intergovernmental Panel on Climate Change (IPCC) shows that global emissions must be halved by 2030 in order to achieve the 1.5-degree target of the Paris Agreement. Nevertheless, greenhouse gas emissions are increasing, leading to a rise in the global average temperature. A warmer climate brings more extreme weather events, leading to heat waves, melting ice and glaciers, and rising sea levels, with serious social and economic consequences. The UN warns that the number of natural disasters could rise to 560 per year by 2030, representing a 40 percent increase since 2015.
Developing countries hit the hardest
Climate change is exacerbating existing challenges. This leads to more competition for land, food and water, which in turn adds to socio-economic tensions and can lead to mass migration. The IPCC estimates that up to 3.6 billion people live in conditions that make them particularly vulnerable to climate change. The worst affected are people in developing countries.
Poverty, limited access to basic social services, conflicts and weak political institutions reduce society’s ability to adapt to and withstand the effects of climate change. By 2030, 700 million people are at risk of having to flee their homes due to drought alone. Africa is one of the hardest hit regions, despite the fact that the continent accounts for only four to six percent of global emissions.
The latest report by the United Nations Intergovernmental Panel on Climate Change (IPCC) shows that global emissions must be halved by 2030 in order to achieve the 1.5-degree target of the Paris Agreement. Nevertheless, greenhouse gas emissions are increasing, leading to a rise in the global average temperature. A warmer climate brings more extreme weather events, leading to heat waves, melting ice and glaciers, and rising sea levels, with serious social and economic consequences. The UN warns that the number of natural disasters could rise to 560 per year by 2030, representing a 40 percent increase since 2015.
Developing countries hit the hardest
Climate change is exacerbating existing challenges. This leads to more competition for land, food and water, which in turn adds to socio-economic tensions and can lead to mass migration. The IPCC estimates that up to 3.6 billion people live in conditions that make them particularly vulnerable to climate change. The worst affected are people in developing countries.
Poverty, limited access to basic social services, conflicts and weak political institutions reduce society’s ability to adapt to and withstand the effects of climate change. By 2030, 700 million people are at risk of having to flee their homes due to drought alone. Africa is one of the hardest hit regions, despite the fact that the continent accounts for only four to six percent of global emissions.
Number of people who live in conditions that make them particularly vulnerable to climate change
3.6bn
Percent of all development finance to sub- Saharan Africa that EDFI accounts for
74%
Percent of Swedfund's portfolio that is within the Energy & Climate sector
~ 40%
Adaption measures are needed
As climate change is already a fact, we need to enhance our adaptability to the current and future effects of it. This is particularly important for the least developed countries and the most vulnerable populations. Adaptation measures may include building more resilient infrastructure, improving rainwater use, or using seeds that are more resistant to pests and drought. However, many developing countries lack the capacity and financial resources needed to implement these measures, and investments in adaptation measures account for less than ten percent of all climate financing.
Not too late to reverse the trend
Alongside adaptation measures, we must find ways to slow down climate change. This will require major changes in society – how we produce food, use land, transport goods and run our economies. Middle-income countries such as Indonesia, Brazil and India account for a significant proportion of global emissions. Parallel to investments in the most vulnerable countries, investments in these countries are therefore also needed. The climate issue is global, and helping to ensure that major emitters replace fossil fuels with renewables will have positive effects for the whole world.
New and effective technologies can help reduce emissions. An analysis by the IFC, the World Bank’s development finance institution, indicates that there are major investment opportunities in developing countries relating to green buildings, public transport, electric vehicles, improved water resource management, renewable energy and waste management. In many places, renewable energy has become the cheapest source of energy, and the use of electric vehicles is on the rise.
As climate change is already a fact, we need to enhance our adaptability to the current and future effects of it. This is particularly important for the least developed countries and the most vulnerable populations. Adaptation measures may include building more resilient infrastructure, improving rainwater use, or using seeds that are more resistant to pests and drought. However, many developing countries lack the capacity and financial resources needed to implement these measures, and investments in adaptation measures account for less than ten percent of all climate financing.
Not too late to reverse the trend
Alongside adaptation measures, we must find ways to slow down climate change. This will require major changes in society – how we produce food, use land, transport goods and run our economies. Middle-income countries such as Indonesia, Brazil and India account for a significant proportion of global emissions. Parallel to investments in the most vulnerable countries, investments in these countries are therefore also needed. The climate issue is global, and helping to ensure that major emitters replace fossil fuels with renewables will have positive effects for the whole world.
New and effective technologies can help reduce emissions. An analysis by the IFC, the World Bank’s development finance institution, indicates that there are major investment opportunities in developing countries relating to green buildings, public transport, electric vehicles, improved water resource management, renewable energy and waste management. In many places, renewable energy has become the cheapest source of energy, and the use of electric vehicles is on the rise.
The scientific evidence is unequivocal: climate change is a threat to human well-being and the health of the planet. Any further delay in concerted global action will miss a brief and rapidly closing window to secure a livable future.
IPCC, The Intergovernmental Panel on Climate Change is the United Nations body for assessing the science related to climate change
The issue of climate finance remains unresolved
Today, there is a considerable gap between the need for climate finance and the funding available. Developed countries have committed to collectively contributing USD 100 billion annually through to 2025 for climate action in developing countries. According to data from the OECD, climate finance totalled USD 79.6 billion in 2019, and the target is only expected to be achieved in 2023. The target is far below what is actually needed according to the IPCC. They estimate that between USD 1.6 and 3.8 trillion will be needed annually by 2050 to limit global warming to 1.5 degrees.
As public funding is far from sufficient, private investment needs to accelerate. EDFI accounts for 74 percent of all development finance to sub-Saharan Africa, and is therefore well placed to scale up investments in the region. In 2021, 27 percent of EDFI’s portfolio consisted of climate investments, an increase of eight percent over the previous year. In addition to their own investments, development finance institutions can act catalytically and contributeto the mobilising of private capital for green and profitable solutions in developing countries. In 2021, EDFI mobilised a total of EUR 4.4 billion in private capital.
Swedfund as a climate investor
Goal 13 is one of five goals that Swedfund has a special focus on, and climate is a theme that permeates the entire operation, irrespective of the choice of instrument, geography or sector. Swedfund is a climate investor and, back in 2014, we decided to invest exclusively in renewable energy. Today, the Energy & Climate sector makes up almost 40 percent of the portfolio and, for 2023, Swedfund has received an earmarked capital injection for climate of MSEK 460. Swedfund’s Project Accelerator is contributing to the green transition by assisting our investment countries in the transition from fossil to renewable andfrom traditional infrastructure to green solutions. Swedfund’s investments contribute to the development of the private sector, where our portfolio companies are expected to live up to high social and environmental standards.
Through EDFI, Swedfund is part of the Global Energy Alliance for People & Planet, a platform which aims to accelerate the transition to sustainable and green energy, reduce CO2 emissions and increase the number of green jobs, in order to contribute to sustainable growth in developing countries. We have also joined the G7 initiative Adaption & Resilience Investors Collaborative, which is intended to increase climate-related investments in adaptation and resilience.
Today, there is a considerable gap between the need for climate finance and the funding available. Developed countries have committed to collectively contributing USD 100 billion annually through to 2025 for climate action in developing countries. According to data from the OECD, climate finance totalled USD 79.6 billion in 2019, and the target is only expected to be achieved in 2023. The target is far below what is actually needed according to the IPCC. They estimate that between USD 1.6 and 3.8 trillion will be needed annually by 2050 to limit global warming to 1.5 degrees.
As public funding is far from sufficient, private investment needs to accelerate. EDFI accounts for 74 percent of all development finance to sub-Saharan Africa, and is therefore well placed to scale up investments in the region. In 2021, 27 percent of EDFI’s portfolio consisted of climate investments, an increase of eight percent over the previous year. In addition to their own investments, development finance institutions can act catalytically and contributeto the mobilising of private capital for green and profitable solutions in developing countries. In 2021, EDFI mobilised a total of EUR 4.4 billion in private capital.
Swedfund as a climate investor
Goal 13 is one of five goals that Swedfund has a special focus on, and climate is a theme that permeates the entire operation, irrespective of the choice of instrument, geography or sector. Swedfund is a climate investor and, back in 2014, we decided to invest exclusively in renewable energy. Today, the Energy & Climate sector makes up almost 40 percent of the portfolio and, for 2023, Swedfund has received an earmarked capital injection for climate of MSEK 460. Swedfund’s Project Accelerator is contributing to the green transition by assisting our investment countries in the transition from fossil to renewable andfrom traditional infrastructure to green solutions. Swedfund’s investments contribute to the development of the private sector, where our portfolio companies are expected to live up to high social and environmental standards.
Through EDFI, Swedfund is part of the Global Energy Alliance for People & Planet, a platform which aims to accelerate the transition to sustainable and green energy, reduce CO2 emissions and increase the number of green jobs, in order to contribute to sustainable growth in developing countries. We have also joined the G7 initiative Adaption & Resilience Investors Collaborative, which is intended to increase climate-related investments in adaptation and resilience.
