📈 UNDP Urges SL to Unlock US$ 10+ Bn Private Finance for Climate Goals

The United Nations Development Programme (UNDP) has called on the Government to swiftly transition its climate ambitions into action by mobilising large-scale financing and strengthening public-private coordination, following the launch of the National Climate Finance Strategy. • Sri Lanka’s updated Nationally Determined Contributions (NDCs) reflect a higher level of ambition for emission reduction and adaptation efforts. • Financing Need: Mitigation efforts alone are estimated to require over US$ 10 Billion for the 2021-2030 period. The actual requirement is significantly higher due to new targets. • Risk of Inaction: The cost of inaction would be "unimaginable," especially for key economic sectors dependent on natural resources, such as agriculture, fisheries, and tourism. • The new Climate Finance Strategy provides a framework to align resources and signal investor readiness, integrating climate finance with wider development goals like jobs and resilience. • Stronger private sector participation is essential through regulatory reform and de-risking mechanisms. This follows a global trend where private climate finance exceeded US$ 1 Trillion in 2023, outpacing public investment. • Institutional coordination is critical, described as a "motherboard," to ensure aligned efforts, reduce duplication, and effectively attract necessary investment.