Davos 2024: More Murmurs than Roars on Climate Finance
Climate change takes a backseat in global financial agendas at the World Economic Forum.
Credits to Tjeerd Royaards
Last week, the World Economic Forum in Davos drew to a close, not with a bang but a murmur, especially in the realm of climate finance. This annual gathering of the global elite often sets the tone for geopolitical and economic discourse. However, despite pressing environmental concerns, the focus on green finance seemed almost an afterthought.
What transpired in Davos this year? The summit, replete with dialogues on everything from Middle Eastern instability to AI and health crises, is known more for shaping narratives than concrete commitments. Yet the urgency of climate action and the need for a radical overhaul in investment priorities towards greener pastures seemed to simmer rather than boil.
The irony is stark. The forum's annual survey, a collective insight from 1,500 members, pinpointed climate change and extreme weather as imminent threats. However, the financial sector's lukewarm response to green initiatives was apparent. Amid discussions on various crises, including social polarization and geo-economic tensions, the long-term peril of climate and biodiversity crises seemed to get lost in the shuffle.
Yes, climate change was on the agenda – but as a quiet murmur in the backdrop of other pressing concerns. While the halls were packed for talks by high-profile figures like John Kerry and Lord Stern, the general tenor of discussions on green finance was surprisingly low-key. This tepid approach to one of the most pressing issues of our time – the need for robust climate and biodiversity finance – is a paradox in an era where technological and industrial innovation is crucial for sustainable development.
There were, of course, some highlights. The panel discussion with economists Vera Songwe and Lord Nicholas Stern tried to refocus attention on the pivotal role of banks in green transitions. Innovative projects like the partnership between ZERO13 and XTCC, aiming to inject substantial investments into the carbon credit market, were noted. Yet, these were mere glimmers in a largely subdued landscape of green finance at Davos.
In summary, Davos 2024, much like its predecessors, remained a place where climate change and green finance were acknowledged but not championed with the vigor they demand. If the World Economic Forum's theme was restoring trust, it left much to be desired in terms of its commitment to the environmental cause. As we pivot towards the spring meetings of the Multilateral Development Banks, the hope is for a stronger stance from global financial hubs to mobilize resources essential for our planet's future.
