Address at First World High Mountain Virtual Summit

Your Excellencies, Ladies and Gentlemen,
Thank you for this kind invitation to address the World First High Mountain Virtual Summit.

Protecting the mountain peatlands of the Andean paramos is critical to tackle the climate crisis. While peatlands cover only 3 percent of the land, they account for over a fifth of stored soil carbon. Peatlands in the tropics, arctic and high mountains are being degraded at an alarming rate, contributing to about 5 percent of annual global carbon emissions. GCF is currently supporting projects that protect mountain peatlands in Guatemala, Nepal, and Sri Lanka.

While mitigating GHG emissions, these projects also enhance the climate resilience of local communities and create employment opportunities based on the protection of ecosystems. Initiatives such as the Global Alliance for the Protection of the Paramos are essential to raise climate ambition in the era of Covid-19 and ensure that we do not cross the 1.5°C threshold within the next two decades.

The drop in carbon emissions from coronavirus lockdowns in 2020 is expected to have a negligeable effect on average global temperature. However, strong green economic recovery measures from the Covid-19 pandemic that invest in low-carbon, climate resilient technologies, practices and infrastructure and do not bailout carbon-intensive industries could cut warming by 0.3C and put us back on track to avert catastrophic climate change.

Securing additional investment to foster a green, climate resilient economic recovery will be particularly critical for developing countries. They do not have the fiscal and monetary space of G-20 countries to finance large economic stimulus measures. COVID-19 is increasing the need for green investment to revive economies on low emissions, climate resilient development pathways. But it is at the same time reducing the public resources available to developing countries.

We need nothing short of a realignment of the global financial system to build back better from COVID-19. The international community needs to work together - across governments, boardrooms, and local communities - to remove the financing and entrepreneurial barriers to green, climate resilient investments.

We must ensure that every single financial decision considers the physical, transition and legal risks of climate change to accurately appraise the risk-return profiles of investments. At the same time, we must strip away the policy, institutional and technical barriers holding back entrepreneurs from converting investment opportunities into bankable projects in developing countries.

As the world’s largest dedicated fund financing climate action in developing countries, GCF is working with its partners to remove these financing and entrepreneurial barriers. We are doing this through a four-pillared approach.

First, we are supporting developing countries to create integrated climate and development strategies and policies. Long-term integrated policies could almost halve investment requirements.

Second, we are encouraging and piloting innovation in policy, institutions, business, technology and in finance. Innovation at scale is required both to reduce costs and develop new sources of financing for climate action.

Third, we are scaling up successful climate investments, through blended finance and strengthening financial institutions and systems.

And fourth, we are creating knowledge and sharing it to foster the development of harmonized standards, methodologies, and policy incentives to align finance with sustainable development.

GCF looks I forward to the results of the World Summit to guide its support for peatlands in the high mountains of the Andes.

I would like to conclude by quoting Colombian President Iván Duque Márquez during a GCF Leadership Forum in September on the margins of the UN General Assembly. President Duque told the forum that “we can only survive as a species if we understand that our main role is to protect nature.” We disregard this sage advice at our peril.

Thank you for your attention.