Climate innovation finance ‘essential’ to meeting sustainability goals, says UN
Organisations involved in financing sustainability projects have been urged to focus on driving long-term system-wide change to help realise net zero ambitions.
A meeting convened by UN Climate Change bodies the Technology Executive Committee and the Climate Technology Centre and Network last month highlighted a need for policy coherence, systemic approaches and multi-level collaboration to accelerate climate innovation through national financing mechanisms.
In an effort to advance climate technology efforts, the two bodies brought experts together in Copenhagen for a dialogue on how to finance national systems of innovation (NSI) to tackle climate change.
The UN defines NSI as the “network of actors, institutional contexts and interlinkages between them that underlie national technological change”, and promotes it as an essential component for achieving climate and sustainable development goals.
It said technology centres, research and development organisations, incubators and accelerators, educational and skills development institutions, and financiers can all play a part in the innovation system by working together to develop, modify and import new technologies and innovations, for example.
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Whole-of-government approach
Those at the meeting – providers and recipients of NSI financing – emphasised the need to look beyond financing individual projects to instead drive long-term system-wide change. This includes regulatory reform that improves the business environment and mechanisms that reduce investment risk in climate technology development.
Participants also discussed the benefits of a whole-of-government approach that aligns innovation, climate and development policies with countries’ specific needs and stages of technological development, and the need for cross-sectorial collaboration between government, the private sector and academia. This was “essential to align innovation ecosystems with climate finance and drive lasting impact,” the UN said.
It added that locally viable projects have greater potential for expansion and that “business incubation, mentorship, capacity-building and investor matchmaking all play a key role in helping innovations grow”.
Read more: UK government releases research and innovation framework for climate change adaptation
Real-world examples
Attendees shared their experiences and insights on bolstering climate innovation and showcased examples of financing systems in various countries.
In Pakistan, the Adaptation Fund Climate Innovation Accelerator has developed a community-driven blueprint for rainwater harvesting to address both flooding and water scarcity while strengthening adaptive capacities in the water sector, and has run successful pilots in rural and urban areas.
The CATAL1.5°T Initiative, supported by the Green Climate Fund and the German government, is providing investments in early-stage climate ventures, including agricultural wastewater treatment and sustainable food ingredients projects in Mexico, and energy projects in Burkina Faso.
And the Global Cleantech Innovation Programme nurtures early-stage small and medium-sized enterprises through business acceleration services focused on energy efficiency and renewable energy.
The United Nations Technology Bank, which works with least developed countries to develop science, technology and innovation systems and policies, was also cited in discussions. Support includes conducting technology needs assessments that evaluate existing systems and provide recommendations for strengthening them, as well as strategies for attracting financing.
Thibyan Ibrahim, the Technology Executive Committee vice chair, noted at the meeting that: “While primarily being a national responsibility and prerogative, international actors could complement, catalyse and accelerate national efforts on strengthening NSI.”
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About Mia Hunt
Mia has been editor of globalgovernmentforum.com since 2019. She has 15 years’ experience as a journalist and editor and specialises in writing for civil and public servants worldwide, including covering sustainability policy and related issues. She has led the Global Government Women’s Network since it launched in 2023. Previously, she covered commercial property having been market reports and supplements editor at Property Week and deputy editor at Retail Destination. She graduated from Kingston University London with a first-class honours degree in journalism and was part of the team that produced The River newspaper, which won Publication of the Year at the Guardian Student Media Awards in 2010.
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