The Guardian view on climate finance: a green transition requires funding | Editorial

If climate catastrophe is to be avoided, the governments and institutions of the rich west will have to alter their prioritiesMaking a transition away from fossil fuels and towards low-carbon energy is the only way to keep our planet safe and habitable for future generations. That transition has thankfully begun, but it has a vast distance to go. And the kinds of changes that are needed cost money. Development of new technology has always required investment. This applies to the generation of renewable energy, and to the myriad lifestyle changes that follow from the shift away from coal, oil and gas. Electric cars and other transport are one example. Packaging to replace plastic (which is derived from oil) is another. Resources are also required to protect societies from the harms caused by the global heating that has already happened, and to help them adjust to altered conditions. A new report presented at the Cop27 UN climate summit says that about $2tn (?1.75tn) a year will be needed by 2030 if developing countries are to make the necessary changes. One of the authors, Nicholas Stern, pointed to a crucial role for the World Bank as well as western governments in redirecting finance and reducing the cost of capital for investors (banks typically charge higher interest on investments in poor countries, due to perceived risks). Continue reading...