Recommendations

• With G20 members among the crucial parties expected to contribute to the loss and damage fund, the G20 as a platform must lead the process of its establishment and ensure members’ commitment and actual financial contributions to the fund. [...] Through the Sustainable Finance Working Group, the G20 seeks to mobilise sustainable finance by identifying institutional and market barriers, developing options to overcome such barriers, and contributing to a better alignment of the international financial system to the internationally agreed climate objectives. [...] A green finance taxonomy3 is a useful tool for private investors and other participants in green finance, aiding in the identification and monitoring of green projects and establishing the credentials of investments as truly green activities.4 Currently, South Africa is the only country in Africa with a taxonomy which is being supported by the World Bank through its Green Bond Market Development p. [...] This provides an opportunity for the G20 to be the platform for the negotiation of the fund and for G20 members to fast-track the establishment of the fund by committing the required capital. [...] However, the disagreements surrounding the role of China in enabling a loss and damage fund, particularly on whether it should be among the financiers of the fund as opposed to a recipient, are a big threat to the progress on establishing and operationalising the fund.