More private investments are now flowing towards initiatives towards climate change fight than ever before.
Global Financial markets are shifting to fund initiatives towards addressing the challenges posed by climate change.
The trend from 2014 could be accelerated if governments and policy-makers take further actions to increase the demand for low-carbon, climate resilient investments according to a new report.
A report released on Thursday by the United Nations Secretary-General's Climate Change Support Team found that the private sector had made significant strides in response to the challenge posed by climate change since the 2014 Climate Summit in New York.
Leaders from banks, pension funds, insurers and asset managers at the 2014 Climate Summit in New York announced a series of high-profile commitments and targets to increase climate finance.
The new report, entitles "Trends in Private Sector Climate Finance," says that the private sector has led the effort so far, but that now it is time for the policy makers to take action in order to accelerate the pace of private sector investment and engagement.
The report was presented to finance ministers at a special gathering in Lima, Peru at the margins of the annual meetings of the World Bank Group and the International Monetary Fund.
IThe report says in addition to direct investments by the private sector, there has been the creation and expansion of the green bond market, which will issue between US $50-70 billion for climate finance in 2015. The report also notes that despite these long-term signals, serious gaps remain.
UN Secretary-General Ban Ki-moon told the 70th Session of the UN General Assembly in September that "Climate finance will be crucial," and he urged developed countries to meet the agreed goal of $100 billion per year by 2020.
The report does not address the ongoing negotiations within the UN Framework Convention on climate Change as to what constitutes climate finance or on what should be counted towards the goal of mobilizing $100 billion a year by 2020. The money according to the report would be used to address the needs of developing countries.