How to get funding levels from billions to trillions was a major challenge. In the light of recent events, the post-COVID-19 pandemic era, we are witnessing a rise in poverty and inequality around the globe. This has further been deepened by the Russian aggression on Ukraine, rising interest rates and deteriorating credit markets in developing countries that is causing hyper-inflation and a high cost of living crisis.

In a world with many competing priorities, the investment resources needed for the climate transition are substantial. On the one hand, it is estimated an additional US$ 1 trillion per year will be needed by 2030 in external flows and private finance for emerging market economies (excluding China) to meet the projected investment needs and forestall the climate crisis. On the other hand, another US$ 1.5 trillion or more of domestic resources will be needed to complement external financing. It is important to understand that in many countries these domestic resources will come from taxation.