The New Climate and Development Finance Nexus

At a time when the reform of the global financial architecture was a top priority on all multilateral macroeconomic, environmental, and development agendas, climate finance was regarded as the "great enabler of climate action" according to the UNFCCC. However, mounting evidence suggested that the transition towards a low-carbon economy risked exacerbating the imbalance between higher and lower income countries, as well as between high- and lower-income households. Climate finance and sustainable development finance were interdependent, prompting the question of a converging roadmap across the G7 and G20, and even beyond.

In 2023, the G7 reiterated its commitment to the global decarbonization of the economy and endorsed new governance proposals such as energy transition partnerships, the climate club, or country packages for forest, nature, and climate.

The webinar "The New Climate and Development Finance Nexus" marked the first meeting organized within the context of the Task Force "Energy, Climate, and Sustainable Development" established by the engagement group of G7 - Think 7 (T7). The event served as a working meeting aimed at summarizing the work done and initiating discussions on the messages and recommendations for the G7 leaders to incorporate in the final T7 Communique.