Statement - During the World Leaders Climate Action Summit at COP29, Minister Guilbeault announces major Canadian-led climate finance platform

BAKU, Azerbaijan, Nov. 12, 2024 /CNW/ - To kick off his participation at the World Leaders Climate Action Summit at the United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, provided the following statement to launch GAIA, a new finance platform that will mobilize climate-focused investments in vulnerable regions. Supporting their resilience is crucial to our collective global effort in fighting climate change and securing a sustainable future for everyone.

"Canada came to COP29 ready to secure a new goal and new funding sources for the climate finance needed to support developing nations' efforts to address the causes and impacts of climate change.

"Some of the worst impacts of climate change are felt among developing nations in the global south, whether it be the hurricanes that have rocked the Caribbean, sea-level rise impacting small island nations, or drought conditions that threaten the livelihood of many. Climate finance is essential to bridge the gap in support for people who bear the least responsibility for climate change, but who can profoundly benefit from innovative projects to address it. Partners in numerous developing nations have been asking for accessible investments to fund solutions that will benefit adaptation and mitigation needs.

"Today, Canada is announcing the launch of GAIA, an innovative US$1.48 billion blended finance platform that aims to increase the availability of climate finance for high impact climate action projects in up to 25 emerging markets and developing economies. Seventy percent of the platform will support adaptation projects and twenty-five percent of the funds will be invested in small island developing states and least developed countries.

"Co-founded by FinDev Canada in partnership with the Mitsubishi Financial Group (MUFG), with an anchor investment from the Green Climate Fund, GAIA brings together much-needed public and private capital and expertise to action climate finance differently. Canada, with its climate finance, has been demonstrating leadership and innovation. GAIA is a strong example of this innovation and is a model that can be replicated to mobilize funding from a range of sources and partnerships to meet our climate finance goals. Innovative and accessible funding models like this are what we need to scale up climate financing and meet growing global needs.

"This is an incredibly exciting initiative that responds directly to the needs of emerging markets and developing economies. Canada looks forward to seeing the range of projects that will give people in developing countries a greater level of security and well-being in the face of a rapidly changing climate."

Quick facts

• There is a US$2 trillion financing gap in investment needed every year in emerging markets and developing economies to meet the Paris Agreement.
• GAIA enables the deployment of long-term loans into climate adaptation and mitigation investments, from sources previously not available to the markets which need it the most. GAIA brings together commercial, concessional, and grant capital to create something new.
• Of the 25 developing markets in the GAIA universe, 25 percent of the platform will be dedicated to least developed countries and small island developing states, and the platform focuses 70 percent on adaptation. The structure and intention of GAIA respond to the market demands, as well as critical barriers limiting private sector investment in climate projects in emerging markets.
• GAIA includes a Technical Assistance Facility that will support bankable and eligible projects. This facility will provide advisory services and capacity building support to enhance environmental and social standards of projects; strengthen impact rationale and delivery; and ensure projects meet the fund's investment criteria to deliver meaningful climate impacts.
• GAIA's funding partners include FinDev Canada, MUFG, the Green Climate Fund, the Global Environment Facility and concessional finance from FinDev Canada's new concessional facility recently announced by the Prime Minister at the G7 in June 2024.
• FinDev Canada is Canada's bilateral Development Finance Institution, supporting development through the private sector. FinDev provides financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies, in alignment with the sustainable development goals and Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada.

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SOURCE Environment and Climate Change Canada

Contacts: Hermine Landry, Press Secretary, Office of the Minister of Environment and Climate Change, 873-455-3714, [email protected]; Media Relations, Environment and Climate Change Canada, 819-938-3338 or 1-844-836-7799 (toll-free), [email protected]