In recent years, the landscape of investment has witnessed a significant shift towards impact investing – an approach that seeks both financial returns and positive social or environmental outcomes.
As impact investors increasingly engage in ventures aligned with their values, the question of how to protect and sustain the impact of these investments post-exit becomes paramount. Exiting an impact investment is a critical juncture where investors can preserve or dilute the intended impact.
Join us as we delve into the intricacies of executing a responsible exit. Find out how to create an effective exit strategy suited for your portfolio.
The first step towards ensuring lasting impact lies in knowing what a responsible exit means. In a nutshell, a responsible exit prioritises long-term social or environmental goals instead of short-term financial gains. This is in direct contrast with a traditional exit, which focusses primarily on maximising the financial returns of an investment.
When looked at through an impact investing lens, a responsible exit heavily considers the broader implications on communities, the environment, and the intended social outcomes.
Different impact investing companies have varying understandings of what constitutes an effective responsible exit. Some experts, such as the Center for Financial Inclusion, emphasise the need for a re-evaluation of exit strategies. They urge investors to think about the long-term consequences of their decisions.
Meanwhile, other groups stress the importance of having a nuanced approach. They recognise that each investment may require a unique exit strategy to safeguard its impact effectively.
Impact investors should also consider the inherent challenges in maintaining a mission after their exit. They must know how to balance financial returns with social mission preservation.
While these strategies offer valuable guidance, it's important to acknowledge and address the challenges inherent in executing responsible exits. Impact investors should be aware of potential hurdles such as conflicting stakeholder interests, limited exit options, and the temptation to prioritise financial gains over impact.
Anticipating these challenges will allow investors to come up with mitigating measures and incorporate them into their exit plans. It provides them with more leeway to navigate the complexities of such exits more effectively.
Safeguarding the impact of an investment post-exit is a multifaceted challenge that demands thoughtful consideration and strategic planning from impact investors. By adopting responsible exit strategies, engaging stakeholders, and embracing customised approaches, investors can ensure that the positive social and environmental outcomes they seek to achieve endure beyond their financial exit.
The evolving landscape of impact investing requires a continuous commitment to balancing profit and purpose, and responsible exits serve as a testament to the industry's dedication to creating meaningful and lasting change.
For more news & insights, stay tuned to the Arowana website.
Recognising the vital role women play in environmental sustainability goes beyond mere gender equality—it is an acknowledgment of their unique capabilities to drive transformative change.
Women, particularly in marginalised communities, bear the brunt of climate-related challenges but are simultaneously powerful agents of resilience and innovation.
When empowered with education, resources, and leadership opportunities, women become catalysts for sustainable development, contributing to the creation of more robust, equitable, and adaptive communities.
We end our Understanding COP28 series by examining the potential of women to help solve the climate crisis. We look at how COP28 can serve as a platform to recognise and amplify the voices and contributions of women.
The impact of climate change is not gender-neutral; it disproportionately affects women, particularly those in vulnerable and marginalised communities. Women often bear the brunt of environmental disasters, facing increased responsibilities in securing water and food, as well as securing fuel for their families as traditional resources become scarcer.
The changing climate can also exacerbate existing gender inequalities, limiting women's access to education, healthcare, and economic opportunities.
Recognising the interconnected nature of gender and climate change, COP28 provides a platform to delve into the gendered dimensions of environmental challenges. The conference aims to foster a deeper understanding of how climate change intersects with issues such as gender-based violence, reproductive health, and economic disparities.
By shedding light on these intersections, COP28 seeks to lay the groundwork for inclusive and gender-responsive climate policies.
One of the defining features of COP28 is the active and influential role women are playing in shaping climate policies on both national and international levels. Women leaders, policymakers, and activists are advocating for gender-sensitive climate policies that acknowledge the unique challenges faced by women and harness their potential as agents of change.
Countries around the world are increasingly recognising the importance of gender-responsive climate action. Women's representation in decision-making bodies related to climate change is crucial for ensuring that policies reflect diverse perspectives and address the differentiated impacts of climate change on women and men.
COP28 serves as a platform for highlighting success stories of countries that have made strides in integrating gender considerations into their climate policies, as well as encouraging others to follow suit.
COP28 showcases the innovative solutions that women are bringing to the forefront of climate action. From renewable energy projects to sustainable agriculture initiatives, women entrepreneurs are pioneering solutions that address the dual challenges of climate change and gender inequality.
The climate talks provide a space for these trailblazers to share their success stories, exchange ideas, and forge collaborations that amplify the impact of their innovations.
Women-led initiatives in renewable energy are particularly noteworthy, as they not only contribute to climate mitigation but also empower women economically. By providing women with access to clean energy technologies and entrepreneurship opportunities, these initiatives foster economic independence and resilience in the face of climate-induced challenges.
COP28 serves as a catalyst for scaling up such initiatives, recognising their potential to drive sustainable development.
As climate change intensifies, communities around the world are grappling with the need to adapt to new and unpredictable realities. Women, often positioned as primary caregivers and resource managers within communities, are at the forefront of climate adaptation efforts.
COP28 shines a spotlight on the resilience of women in the face of climate-related challenges and emphasises the importance of incorporating their knowledge and experiences into adaptation strategies.
From developing climate-resilient agricultural practices to leading community-based disaster preparedness initiatives, women are playing a central role in building adaptive capacity. COP28 provides a platform for showcasing the resilience of women-led communities and exploring how their experiences can inform broader strategies for climate adaptation.
By elevating the voices of women at the frontlines of climate change, the conference aims to foster a more nuanced and inclusive approach to adaptation planning.
A notable aspect of COP28 is the active engagement of young women in climate advocacy. The youth movement for climate action, led by prominent figures like Greta Thunberg, has inspired a new generation of activists and changemakers. The Dubai conference recognises the unique perspectives and contributions of young women in driving climate awareness, advocacy, and policy change.
COP28 features dedicated sessions and forums that amplify the voices of young women, providing them with a platform to share their insights, experiences, and visions for a sustainable future. The intersectionality of gender and age adds a dynamic dimension to the discussions, emphasising the importance of including diverse perspectives in the global discourse on climate change.
While progress is being made, challenges persist in fully integrating gender equality into climate action. The underrepresentation of women in decision-making processes, particularly in the field of climate science and policy, remains a significant barrier.
COP28 serves as a forum for addressing these challenges head-on and exploring strategies to enhance women's participation and leadership in all aspects of climate governance.
Another issue is that financial resources allocated to gender-responsive climate initiatives are often insufficient. COP28 provides an opportunity for governments, international organisations, and the private sector to commit to increased funding for projects that prioritise the intersectionality of gender and climate change.
By channelling resources toward women-led initiatives, the conference aims to unlock the full potential of women as change agents in the fight against climate change.
As COP28 unfolds, the empowering connection between women and climate change comes into sharper focus. Women are not just victims of climate change; they are powerful catalysts for positive transformation.
The climate talks serve as a nexus where women from diverse backgrounds converge to share their knowledge, experiences, and solutions. The ripple effect of their contributions extends far beyond the conference halls, influencing policies, inspiring innovations, and fostering resilience in communities worldwide.
Follow Arowana Insights for all the latest on COP 28.
Nature-based climate solutions, ranging from forest conservation to wetland restoration, offer multifaceted benefits in the fight against climate change. The inherent ability of ecosystems to sequester carbon, enhance biodiversity, and bolster resilience aligns seamlessly with the ambitious goals set forth by international agreements like the Paris Agreement.
As COP28 convenes, the need to prioritise these solutions becomes evident, transcending traditional approaches and embracing holistic strategies that recognise the interconnectedness of climate action and environmental well-being. The conference holds the potential to elevate nature from a mere backdrop to a central actor in our efforts to build a sustainable and climate-resilient future.
In this latest edition of Understanding COP28, we explore the profound significance of nature-based solutions in the battle against climate change, emphasising the role of natural processes and ecosystems in fostering a harmonious coexistence between humanity and the planet.
Nature-based solutions encompass a diverse array of strategies that leverage the regenerative capacity of the natural world to mitigate climate change. These solutions recognise that healthy ecosystems play a pivotal role in regulating the Earth's climate, and their restoration and preservation can contribute substantially to carbon sequestration and climate resilience.
Among the most potent nature-based climate solutions is the preservation and restoration of forests. Forests act as formidable carbon sinks, sequestering vast amounts of carbon dioxide through the process of photosynthesis. As nations grapple with escalating carbon emissions, safeguarding existing forests and undertaking large-scale reforestation efforts are crucial steps toward achieving carbon neutrality.
COP28 provides a platform for countries to revisit and enhance their commitments to forest conservation and reforestation. By fostering international cooperation and providing financial incentives, the conference can catalyse ambitious projects to preserve existing forests, restore degraded landscapes, and expand forest cover globally. The inclusion of forest conservation in climate policies underscores the interconnectedness of climate change, biodiversity, and sustainable development.
Wetlands, often overlooked but ecologically invaluable, play a pivotal role in sequestering carbon and supporting biodiversity. Mangroves, salt marshes, and seagrasses, collectively known as blue carbon ecosystems, have garnered attention for their ability to sequester carbon at rates even higher than terrestrial forests.
The World Wildlife Fund (WWF) has partnered with the Bezos Earth Fund to plant mangroves in Mexico, Madagascar, Fiji, and Colombia. The goal is to protect, restore, and strengthen the management of 2.47 million acres of mangroves. This in turn will help safeguard an estimated 2 billion tons of carbon and protect 300,000 people living alongside coastal forests.
Investing in the restoration and protection of wetlands not only contributes to carbon sequestration but also enhances the resilience of coastal areas to the impacts of climate change, such as sea-level rise and extreme weather events. COP28 discussions can centre on developing strategies to incorporate blue carbon into national climate action plans, fostering innovative financing mechanisms, and promoting research to quantify and monitor the carbon sequestration potential of these critical ecosystems.
Agriculture, while a source of greenhouse gas emissions, also holds immense potential as a nature-based climate solution. Sustainable agricultural practices, such as agroforestry, cover cropping, and regenerative agriculture, promote soil health and carbon sequestration. By integrating trees and diverse crops, these practices enhance biodiversity, improve soil structure, and contribute to climate resilience.
COP28 provides a forum for nations to share best practices in sustainable agriculture, incentivise farmers to adopt climate-smart techniques, and invest in research and extension services that promote regenerative practices. Recognising the role of agriculture as both a contributor to and mitigator of climate change, the conference can foster a holistic approach that aligns food security with sustainable land use.
Urbanisation presents challenges in the face of climate change, with cities often experiencing heat islands and environmental degradation. Integrating nature into urban planning through the creation and preservation of green spaces, urban forests, and biodiversity corridors is a nature-based approach that enhances climate resilience while improving the quality of life for urban dwellers.
COP28 discussions can explore strategies for integrating nature into urban environments, promoting green infrastructure and incentivising cities to prioritise biodiversity conservation. By recognising the role of urban green spaces in climate adaptation and mitigation, the conference can encourage the development of sustainable and resilient cities that coexist harmoniously with nature.
The significance of nature-based climate solutions in achieving global climate goals necessitates a dedicated focus within the discussions and agreements at COP28. The conference can act as a catalyst for transformative action by:
COP28 offers a prime opportunity for nations to set ambitious targets for nature-based solutions within their climate action plans. These targets may include commitments to forest conservation, reforestation initiatives, wetland restoration, and sustainable land use practices. By integrating nature-based solutions into nationally determined contributions (NDCs), countries can signal a firm commitment to harnessing the power of nature in their climate strategies.
Ambitious targets can be complemented by robust monitoring and reporting mechanisms, ensuring transparency and accountability in the implementation of nature-based solutions. International collaboration can facilitate the exchange of knowledge, technology, and financial resources, allowing nations to learn from each other's successes and challenges.
Financing is a pivotal factor in the successful implementation of nature-based climate solutions. COP28 provides an opportunity to mobilise climate finance, both through traditional channels and innovative mechanisms, to support projects that focus on preserving and restoring ecosystems. The conference can explore the establishment of dedicated funds or financial instruments aimed at incentivizing nature-based solutions.
Climate finance can support not only large-scale projects but also community-led initiatives that promote sustainable land management and conservation. By ensuring that nature-based solutions are financially viable and socially equitable, COP28 can foster a holistic approach to climate action that integrates environmental, social, and economic considerations.
The complex interplay between ecosystems, climate, and human activities requires continuous research and innovation. COP28 can serve as a platform for promoting and supporting scientific endeavours that advance our understanding of nature-based solutions. This includes research on the carbon sequestration potential of different ecosystems, the impact of climate change on biodiversity, and the development of sustainable land management practices.
Encouraging collaboration between scientists, policymakers, and practitioners can facilitate the translation of research findings into actionable policies and on-the-ground projects. The conference can also explore opportunities for technology transfer and capacity building, ensuring that nations have the knowledge and tools needed to effectively implement nature-based solutions.
Indigenous communities, often the stewards of biodiverse landscapes, possess invaluable traditional knowledge about sustainable land management. COP28 can emphasise the importance of incorporating indigenous perspectives in the development and implementation of nature-based solutions. Recognizing and respecting the rights of indigenous peoples is essential to the success and sustainability of these initiatives.
Community involvement is equally crucial, as local communities are often the first responders to environmental changes. COP28 discussions can explore ways to empower local communities, ensuring that they actively participate in decision-making processes and benefit from the outcomes of nature-based solutions. This approach fosters a sense of ownership and stewardship, contributing to the long-term success of conservation and restoration efforts.
The emphasis on nature-based climate solutions at COP28 signals a paradigm shift in our approach to addressing climate change. These solutions not only offer a pragmatic pathway to reduce carbon emissions but also provide a holistic framework for promoting biodiversity, ensuring sustainable land use, and enhancing the resilience of ecosystems.
The decisions made at the climate talks have the potential to shape a future where nature is recognised as a powerful ally in the fight against climate change, and where humanity coexists harmoniously with the natural world.
Harnessing the resilience of nature is not a choice but a necessity, and COP28 represents a unique opportunity to elevate nature-based solutions to the forefront of global climate strategies. By setting ambitious targets, mobilising climate finance, promoting research and innovation, and incorporating indigenous knowledge and community involvement, the conference can pave the way for a more sustainable and resilient future.
Follow Arowana Insights for all the latest on COP 28.
Ensuring global food security has become an increasingly pivotal agenda as the international community converges for COP28. Against a backdrop of escalating environmental challenges, population growth, and socioeconomic disparities, the issue of food security has taken center stage.
At its core, food security is not merely a matter of providing sustenance; it is a barometer of a nation's resilience and well-being. The outcomes of COP28 will undoubtedly shape the trajectory of our collective efforts to safeguard the availability, access, and utilisation of nutritious food for populations across the globe.
We continue our Understanding COP28 series by exploring the intricate interplay of climate change and our ability to ensure sustenance for a growing global population.
Food security is a multifaceted issue that extends beyond mere access to food. The World Bank defines food security as a state where "all people, at all times, have physical and economic access to sufficient, safe, and nutritious food to meet their dietary needs and food preferences for an active and healthy life." This definition underscores the complex interplay of factors that contribute to food security, ranging from agricultural practices and climate conditions to economic stability and social equity.
The world is confronted with a paradox – despite technological advancements and increased agricultural productivity, hunger persists.
According to the World Health Organization (WHO), as many as 828 million people were affected by hunger in 2021 – 46 million people more than a year earlier and 150 million more than in 2019. This grim reality is exacerbated by the unequal distribution of resources, climate change-induced disruptions, and the vulnerability of food systems to shocks.
Climate change stands as a formidable adversary to global food security. The increasing frequency and intensity of extreme weather events, shifts in precipitation patterns, and rising temperatures pose significant threats to agricultural production. Once fertile regions may face desertification, while others may witness more frequent floods or droughts. These changes disrupt the delicate balance that sustains agriculture and, consequently, the global food supply.
As the international community grapples with the urgency of climate action, COP28 emerges as a beacon of hope for addressing the intertwined challenges of climate change and food security. The conference provides a platform for nations to collaboratively set ambitious targets, share innovative solutions, and commit to concrete actions that can reshape the trajectory of global food systems.
COP28 offers a unique opportunity for nations to forge an integrated approach towards climate-resilient agriculture policies. This involves adopting sustainable farming practices, investing in climate-smart technologies, and promoting methods that enhance soil health and water conservation. By aligning agricultural policies with climate goals, nations can build resilience in the face of climate-induced disruptions and safeguard food production.
Climate change mitigation is crucial, but so is adaptation. COP28 can serve as a platform to foster collaboration on adaptive strategies for agriculture. This includes developing drought-resistant crop varieties, implementing precision agriculture techniques, and establishing early warning systems for extreme weather events. By sharing knowledge and best practices, nations can collectively enhance their adaptive capacity and minimise the impact of climate change on food security.
A key aspect of COP28's potential impact on food security lies in mobilising financial resources for sustainable agriculture. This involves incentivising private sector investment in agri-tech innovations, supporting smallholder farmers in adopting sustainable practices, and promoting research and development in agricultural resilience. By channeling funds towards sustainable agriculture, COP28 can catalyse transformative changes in the global food landscape.
Food security is not only about production but also about distribution. COP28 can facilitate dialogues on global food trade policies, ensuring equitable access to food resources. By addressing trade barriers, tariff structures, and market distortions, nations can work towards a more inclusive and fair global food system that benefits both producers and consumers.
COP28 provides a platform for nations to engage in meaningful capacity-building and knowledge-exchange initiatives. By fostering international collaborations, countries can learn from each other's successes and failures in addressing food security challenges. This collective learning can accelerate the adoption of best practices and innovative solutions, creating a more interconnected and resilient global food network.
In the face of a rapidly changing climate and a growing global population, the imperative to secure our collective food future has never been clearer. COP28 emerges as a crucial moment in the ongoing battle against food insecurity, offering a platform for nations to come together, share ideas, and commit to concrete actions.
By integrating climate-resilient agricultural policies, fostering adaptation and mitigation strategies, investing in sustainable agriculture, promoting equitable food distribution, and facilitating knowledge exchange, COP28 has the potential to steer the world towards a more secure and sustainable food future.
As the international community converges to deliberate on the challenges and opportunities presented by COP28, there is a collective hope that the decisions made will not only shape the climate agenda but will also stand as a testament to humanity's commitment to ensuring that no one goes to bed hungry in a world of plenty.
The journey towards global food security is a shared responsibility, and COP28 represents a crucial milestone on this transformative path.
Follow Arowana Insights for all the latest on COP 28.
Beyond its environmental implications, renewable energy holds the key to sustainable development and economic resilience. As countries navigate the complexities of energy transition, COP28 provides an opportunity to address the economic dimensions of embracing clean energy.
The shift towards renewable sources not only mitigates environmental degradation but also fosters job creation, technological innovation, and energy independence. The UAE climate talks offer a unique stage for nations to align their economic goals with clean energy objectives, ensuring that the pursuit of sustainable development is intertwined with the transition to renewable energy.
In the latest edition of Understanding COP28, we shine the spotlight on renewable energy and what role it will play in the COP28 discussions.
The twenty-first century has witnessed a remarkable surge in the deployment of renewable energy technologies, marking a decisive shift from traditional fossil fuel-based energy sources. Solar, wind, hydro, and geothermal power have emerged as frontrunners in the race to decarbonise the global energy sector. Investments in renewable energy capacity have soared, driven by a combination of technological advancements, falling costs, and a growing awareness of the environmental consequences associated with conventional energy production.
Solar power, in particular, has experienced a phenomenal rise, with photovoltaic technology becoming more efficient and affordable. Wind energy – harnessed through both onshore and offshore wind farms – has also carved a significant niche in the energy market.
Meanwhile, hydroelectric and geothermal power continue to contribute substantially to the global energy mix. Despite these strides, the transition to a predominantly renewable energy landscape is still in its infancy, and much work remains to be done to realise its full potential.
The centrality of renewable energy in the fight against climate change cannot be overstated. The burning of fossil fuels for energy production is a major contributor to greenhouse gas emissions, the primary driver of global warming. Transitioning to renewable energy sources is, therefore, a fundamental strategy for mitigating climate change and achieving the ambitious targets set by international agreements such as the Paris Agreement.
Renewable energy technologies offer a compelling solution by providing a clean, sustainable alternative to fossil fuels. Solar panels convert sunlight into electricity, wind turbines harness the kinetic energy of the wind, and hydropower generates electricity through the movement of water. Unlike their fossil fuel counterparts, these methods of energy production produce little to no greenhouse gas emissions during operation, significantly reducing the carbon footprint associated with electricity generation.
However, the road to a renewable energy future is not without challenges. The intermittency and variability of certain renewable sources, such as solar and wind, pose challenges to grid stability and energy storage. Overcoming these challenges requires innovative solutions, increased investment in energy storage technologies, and the development of smart grid systems that can efficiently manage the fluctuations inherent in renewable energy production.
As the international community assembles for COP28, the urgency to address climate change and accelerate the transition to clean energy takes centre stage. The conference provides a unique platform for nations to collaborate on strategy, share technological innovations, and commit to driving the global energy transition forward.
COP28 offers a critical opportunity for nations to revisit and strengthen their commitments to renewable energy targets. Many countries have already set ambitious goals to increase the share of renewable energy in their energy mix. However, these targets often face challenges in implementation due to political, economic, or technological barriers.
By fostering an environment of collaboration and mutual support, COP28 can encourage nations to reevaluate and enhance their commitments. The conference can serve as a forum for sharing success stories, best practices, and lessons learned in the pursuit of renewable energy goals.
Moreover, COP28 provides a space for countries to address challenges collectively, fostering a sense of shared responsibility in the global transition to clean energy.
One of the key drivers of renewable energy adoption is investment in infrastructure. COP28 presents an opportune moment for nations to attract and secure investments in clean energy projects. This includes not only large-scale solar and wind farms but also investments in research and development of emerging technologies that can further revolutionise the renewable energy landscape.
Financial institutions, private investors, and governments can use COP28 as a platform to showcase the economic viability and long-term sustainability of renewable energy projects. By providing a conducive policy environment, ensuring regulatory certainty, and offering financial incentives, nations can create an attractive investment climate for clean energy projects. The conference can be a catalyst for mobilising the financial resources needed to accelerate the deployment of renewable energy infrastructure globally.
To show its support of renewable energy, COP28 President Sultan Al Jaber announced that the UAE will provide USD 4.5 billion to help unlock Africa's clean energy potential.
Technological innovation is at the heart of the renewable energy revolution. COP28 can facilitate the transfer of clean energy technologies between nations, particularly from developed to developing countries. This can help bridge the technological gap and empower nations with fewer resources to leapfrog into a sustainable and low-carbon energy future.
In addition to technology transfer, COP28 can support collaborative research and development initiatives. By fostering international partnerships and creating a platform for knowledge exchange, the conference can accelerate the development of breakthrough technologies in renewable energy.
From next-generation solar panels to advanced energy storage solutions, the innovations spurred by COP28 can pave the way for a more efficient and resilient clean energy infrastructure.
The transition to renewable energy is not only an environmental imperative but also a social and economic challenge. COP28 provides an opportunity to address the socio-economic dimensions of this transition, ensuring that the benefits of clean energy are distributed equitably and that no one is left behind.
This includes considerations for job transitions in regions heavily dependent on fossil fuel industries. As the world shifts away from coal, oil, and gas, communities that have relied on these industries may face economic challenges. COP28 can facilitate discussions on just transition policies, ensuring that workers in traditional energy sectors are provided with training and opportunities in the growing renewable energy workforce.
Moreover, the conference can emphasise the importance of community engagement and empowerment in renewable energy projects. By involving local communities in decision-making processes and ensuring that they share in the benefits of clean energy projects, nations can build stronger social support for the transition to renewable energy.
COP28 stands at the crossroads of our shared destiny, offering a unique opportunity to redefine the trajectory of global energy systems. The imperative to transition to renewable energy is not merely a matter of environmental stewardship; it is a strategic choice for a sustainable and resilient future. The conference holds the potential to be a historic milestone, marking a collective commitment to accelerate the adoption of clean energy sources and mitigate the impacts of climate change.
As the world converges to address the challenges outlined in this feature article, the decisions made at COP28 will reverberate for generations. Strengthening commitments to renewable energy targets, encouraging investment in clean energy infrastructure, advancing technology transfer and innovation, and addressing the social and economic dimensions of the transition are key pillars that can propel the world towards a cleaner, more sustainable energy future.
The question is not whether we can transition to renewable energy but how swiftly and decisively we can make this transition. COP28 provides the forum, the momentum, and the imperative to answer that question with resounding commitment and action.
Follow Arowana Insights for all the latest on COP 28.
In the face of an escalating climate crisis, nations worldwide are struggling to mitigate and adapt to the adverse impacts of climate change. Temperatures are rising, glaciers are melting, and extreme weather events are becoming more frequent than ever before. The international community is increasingly recognising the importance of concerted efforts to combat climate change.
At the heart of this global endeavour lies the concept of climate finance—a crucial mechanism designed to provide the financial means for countries to transition towards sustainable, low-carbon development while adapting to the inevitable consequences of a changing climate.
In this first edition of Understanding COP28, we take a closer look at climate finance. Let’s find out how this financial mechanism can help countries achieve their climate goals.
Climate finance refers to the mobilisation and allocation of funds to support climate-related projects, policies, and initiatives. The scope of these financial resources extends beyond national borders, aiming to address the shared responsibility of all nations in combating climate change. The key principle is to assist developing countries that often lack the financial capacity to independently undertake climate actions.
The evolution of climate finance can be traced back to the Kyoto Protocol of 1997, which laid the groundwork for international cooperation on reducing greenhouse gas emissions. However, it was the Paris Agreement in 2015 that marked a paradigm shift by emphasising the crucial role of finance in achieving climate goals. The agreement set the ambitious target of mobilising $100 billion annually by 2020 to support developing countries in their climate endeavours.
Mitigation efforts involve reducing or preventing the emission of greenhouse gases, transitioning to renewable energy sources, and enhancing energy efficiency. Climate finance allocates funds to projects and policies that facilitate these actions, supporting nations in their quest to meet emission reduction targets.
Adaptation finance is dedicated to helping countries build resilience to the impacts of climate change. This includes investments in infrastructure, agriculture, water management, and healthcare systems to prepare communities for the inevitable changes in climate patterns.
One of the critical challenges for many developing nations is the lack of technological capabilities and expertise needed for effective climate action. Climate finance plays a pivotal role in facilitating the transfer of environmentally sound technologies and building the capacity of nations to implement and manage sustainable initiatives.
A cornerstone of climate finance is the acknowledgment of historical responsibility, recognising that industrialised nations have historically contributed the most to greenhouse gas emissions. Developed countries are thus obligated to support developing nations in both mitigating and adapting to climate change through financial assistance.
Under the Paris Agreement, countries are encouraged to submit Nationally Determined Contributions (NDCs). These are key points that outline each member nation’s climate action plans and commitments. Climate finance becomes instrumental in translating these commitments into tangible actions, especially for developing nations striving to balance economic development with environmental sustainability.
Despite the lofty promises of the Paris Agreement, the actual mobilisation of $100 billion annually has proven challenging. Persistent funding gaps hinder the ability of developing nations to implement comprehensive climate action plans, jeopardising the global effort to limit temperature rise.
Ensuring the transparent and accountable use of climate finance remains a significant challenge. Striking a balance between providing financial support and ensuring that the funds are utilised effectively requires robust monitoring and reporting mechanisms.
Climate justice advocates argue that the burden of climate change should not fall disproportionately on vulnerable communities, often found in developing nations. Climate finance must address these concerns by prioritising projects that promote equity and inclusivity.
Numerous success stories highlight the positive impact of climate finance. Investments in renewable energy projects, such as solar and wind farms, have not only reduced emissions but also created jobs and spurred economic growth in many developing countries.
In Maldives, the World Bank supports the country’s transition to clean energy. The company has also helped mobilise private investments for renewable energy projects. By developing a risk mitigation framework, the World Bank convinced private sector companies to invest in the Maldives’ energy sector.
The World Bank also helped facilitate Uzbekistan’s clean energy transition by providing USD 380 million in financing. This was combined with the USD 47 million from the Green Climate Fund. Through this support, the country was able to improve its transmission network capacity and integrate renewable energy.
Adaptation finance has played a crucial role in supporting projects that enhance the resilience of communities to climate impacts. This includes initiatives like building climate-resilient infrastructure and implementing sustainable agriculture practices.
In Sierra Leone, the Green Climate Fund supports several climate resilience-building initiatives. These include the creation of an efficient Multi-Hazard Impact-based Forecasting and Early Warning and Early Action System. The goal is to help train and better equip local climate agencies so that they can predict and plan for future extreme weather events.
The global community must reinforce its commitment to climate finance, addressing the persistent funding gaps and meeting the targets set by the Paris Agreement. This includes scaling up financial contributions, enhancing international cooperation, and fostering innovative financing mechanisms.
The success of climate finance lies in its integration with broader sustainable development goals. By aligning climate action with poverty reduction, gender equality, and social inclusion, nations can build a more resilient and sustainable future.
Innovative financing mechanisms, such as green bonds, climate funds, and public-private partnerships, hold the key to unlocking additional resources for climate action. These mechanisms can attract private sector investments and bridge the funding gaps that hinder progress.
As the world continues to cope with the effects of climate change, the role of climate finance emerges as a linchpin in the global response. From mitigating emissions to building resilience and fostering sustainable development, climate finance represents a beacon of hope for a future where nations can thrive while safeguarding the planet.
The challenges are daunting, but the potential for transformative change is within our grasp. It is a collective responsibility—one that demands unwavering commitment, collaboration, and a steadfast belief in the power of finance to shape a more sustainable and resilient world for generations to come.
Follow Arowana Insights for all the latest on COP 28.
As the world grapples with the growing climate crisis, the urgency to combat climate change has never been more evident. The 28th UN Climate Change Conference of the Parties, known as COP28, is taking place in Dubai, United Arab Emirates. With this event, the international community is looking to address crucial climate issues and set a new course for global climate action.
In the latest edition of Arowana Insights, we delve into what COP28 is, what we can expect from this landmark event, the key issues to be discussed, and how the outcomes can significantly impact countries and the planet.
COP28 is the latest installment in the series of annual United Nations climate change conferences. These conferences serve as a platform for countries worldwide to come together, discuss climate-related matters, and negotiate international agreements to combat global warming.
COP28 carries a particular significance, as it marks a crucial checkpoint in the journey towards achieving the objectives outlined in the Paris Agreement. As the world faces the consequences of a warming climate, the Dubai conference is set to play a key role in shaping the future.
For COP28, the focus is on raising global ambitions and setting concrete actions to limit global warming to 1.5°C above pre-industrial levels. This goal is in line with the Paris Agreement, which aims to prevent the most catastrophic effects of climate change. The conference will be a critical juncture for nations to deliver on their climate pledges, further ramp up their climate targets, and reinforce their commitment to sustainable development.
COP28 outcomes will significantly affect countries around the world. Here's how:
COP28 has the potential to define the global trajectory for combatting climate change in the coming years. For attendees in Dubai, the focus will be on reinforcing international cooperation, addressing key climate issues, and taking meaningful action to limit global warming. The decisions that will be made at this conference will shape the future of our planet, influencing the course of climate action and its profound impact on countries and societies worldwide.
The urgency of COP28 cannot be overstated. The world's response to climate change is no longer a matter of choice; it is an imperative. As we look toward the outcomes of this conference, we do so with hope, determination, and the knowledge that international collaboration is the key to addressing one of the greatest challenges humanity faces.
Follow Arowana Insights for all the latest on COP 28.
With its breathtaking natural beauty and vibrant communities, the Philippines faces a growing crisis that threatens its environment and well-being: plastic waste pollution. In recent years, the archipelago has witnessed a surge in plastic waste, from urban centres to remote beaches.
In this AIC Insight, we'll take a closer look at the magnitude of the Philippines’ plastic waste pollution problem. We’ll explore the different the innovative solutions and strategies that may hold the key to a cleaner, more sustainable future.
The plastic waste crisis in the Philippines has reached a critical point, with numerous challenges and implications. These include:
The plastic pollution problem continues to affect communities across the Philippines. People living in vulnerable areas, such as highly urbanised cities and coastal towns, bear most of the brunt.
Fishing communities face declining catches due to plastic contamination in waters and coastal areas.
Plastic pollution contributes to health issues, particularly among marginalized communities living near polluted areas.
Tourism, a vital sector for the Philippines, suffers as pristine beaches are marred by plastic debris.
A multitude of factors drives the plastic waste crisis in the Philippines:
Addressing the plastic pollution crisis in the Philippines requires a comprehensive strategy. This is where a multi-pronged approach is needed to solve each challenge.
Despite the heavy toll that plastic pollution has brought on Philippine communities, there is still hope for change. Various government and non-government organisations have launched initiatives to clean up existing plastic waste throughout the years.
There have also been efforts to introduce ways to minimise the Filipinos’ dependence on plastic containers and eliminate the tingi-tingi (micro-retailing) system.
The plastic pollution crisis in the Philippines is a complex challenge that requires concerted efforts from all stakeholders. However, with innovative solutions, policy reforms, and a commitment to sustainable practices, the country can overcome this crisis and build a cleaner, more resilient future.
By embracing a circular economy, redefining consumption patterns, and investing in responsible waste management, the Philippines can transform itself into a model of environmental stewardship. Together, we can work towards a future where the breathtaking beauty of the archipelago is preserved, communities thrive, and marine life flourishes in clean, plastic-free waters.
The solution to plastic waste lies within our grasp. We just need to embrace these initiatives for the sake of the Philippines as well as the rest of the planet.
For more news & insights, stay tuned to the AIC website.
Lumify Group’s parent company EdventureCo completes the acquisition of City Desktop Training to expand its offering in Adobe end-user training.
Lumify Group, Australasia’s largest provider of corporate ICT and digital skills training, has completed the acquisition of City Desktop Training, Australia’s leading provider of instructor-led Adobe end-user training.
Established for over 30 years, City Desktop Training is an Australia-based provider of live instructor-led training in Adobe end-user applications, such as Adobe InDesign, Premiere Pro, After Effects, Photoshop, and Illustrator. Over the past six years, it has provided training to a highly diversified customer base, spanning over 3,000 business and government clients.
City Desktop Training primarily supports individuals and teams focused on graphic design, marketing, communications, and administrative roles.
Acquiring City Desktop Training will broaden the solutions offered by Lumify Group, which now includes Lumify Work Australia (formerly DDLS), Lumify Work Philippines, Lumify Work New Zealand (formerly Auldhouse), Lumify Learn, Lumify People and Nexacu.
Jon Lang, Lumify Group CEO, said, “Since we rebranded from DDLS and Auldhouse to Lumify Work in Australia and New Zealand, we have sought to leverage our strengths and broaden our offering.
“The acquisition of City Desktop Training perfectly complements the group offering; beyond our highly rated instructor-led ICT and cyber security courses, students will benefit from Lumify's state-of-the-art campuses across Australia, New Zealand, and the Philippines.
“We are thrilled to welcome City Desktop Training to the fold, accelerating our expansion in end-user application training and building on the successful acquisition of Nexacu, Australia’s leading provider of Microsoft end-user application training, in October 2022.”
About Lumify Group
Lumify Group is Australasia’s largest corporate ICT and process training provider and Australasia’s number one cyber security training provider. We partner with world-class companies to help organisations and individuals remain up to date with new processes, technology, and platforms to reduce risk and enable efficient business practices. Lumify promotes a balanced approach to training with a focus on the key areas of Technology, Process, and People. We provide extensive training options tailored to your organisation’s needs – from vendor-certified courses to customised training, including bespoke in-house developed courses. Visit the website: https://lumifygroup.com
About City Desktop Training
City Desktop Training is Australia’s leading provider of training in Adobe Creative Cloud applications, including InDesign, Photoshop, Illustrator, Premiere Pro, After Effects, and more. We offer both short courses and custom training for beginners through to advanced users. Courses are conducted live face to face or virtually by experienced and Adobe Certified Instructors. City Desktop Training has venues in Melbourne, Sydney, and Brisbane CBDs. Visit the website: https://www.cd.com.au
VivoPower and Geminum team up to offer holistic, end-to-end fleet electrification and decarbonisation solutions
Geminum specialises in digital twin solutions for corporations seeking to implement decarbonisation solutions in a safe, cost-effective and integrated manner
Geminum leadership team have 20 years of combined digital twin and change management experience, particularly in the mining industry
VivoPower is pleased to announce that it has signed a Joint Venture with Geminum, a specialist digital twin technology company founded in Australia, to design, test, and implement digital twins of Tembo electric utility vehicles and ancillary VivoPower sustainable energy solutions (VivoSES).
These digital twins will enable corporations engaging in decarbonisation programmes to optimise total cost of ownership (“TCO”) and capture and synthesise near real-time analytics and carbon abatement data. Geminum, a specialist digital twin technology company, will also provide mining industry expertise to assist Tembo with the development of solutions that better meet the needs of remote owner-operators.
Geminum co-founder and CEO Rob Foster said of the JV Agreement: “We were introduced to VivoPower and Tembo some time ago and were impressed by their dedication to electrification and their genuine desire to create positive change at the ecosystem level. This JV is further recognition that complex system problems like fleet decarbonisation require holistic solutions across people, process, and technology, to help fleet operators make the transition safely and cost-effectively.”
Executive Chairman and CEO of VivoPower, Kevin Chin said: “Digital twin technology will enable our customers and partners to cost-effectively and quickly assess the TCO equation of a decarbonization programme, incorporating fleet electrification solutions. With TCO for decarbonisation, it is not enough to simply consider traditional financial-based metrics, but it is equally important to carefully quantify the carbon emissions consequences as well as the implications for workflow processes and people. This JV Agreement with Geminum will fortify our VivoSES (sustainable energy solutions) capabilities, especially for the mining sector, and enable our customers, and partners to achieve their decarbonisation goals’.
Visit the VivoPower website for more news & insights.
About Geminum
Geminum is an Australian-based technology company that specialises in the design, development, and implementation of digital twin technology for asset-intensive industries. Geminum develops solutions and provides services to asset owners, service providers, and technology companies that are seeking to create highly integrated and near real-time solutions to improve decision-making. Geminum’s mission is to assist companies who are powering the energy transition to make the transition from rules to prescriptions, by making predictive technologies easy to use and quick to deliver value.
