“Business & climate, acting to transform”: the new special issue of Private Sector & Development

The climate emergency has now become a global challenge that is reshaping the economic development sector. Rising temperatures, extreme events, water stress, and the increasing scarcity of natural resources: the transition to resilient, low-carbon models is now no longer an option, but a necessity. In this transformation, the private sector has huge potential to become a driving force for concrete solutions.

The financing needed to combat climate change and adapt to its effects is colossal, amounting to trillions of dollars. Both private and development financial institutions, conscious of their responsibility, are now endeavouring to turn climate finance into a strategic lever. By aligning their portfolios with decarbonization objectives, anticipating physical risks, and innovating in financial products, they can transform climate ambition into measurable action.
 

Through analyses and feedback from actors out in the field, this issue of PS&D highlights the tools that have now become essential for a successful transition: greenhouse gas emissions assessment, decarbonization trajectories, development of innovative financial products, and integration of climate risks into investment strategies.

From water management to sustainable agriculture and resilient infrastructure, this special issue also highlights the key sectors on which efforts need to be focused. It draws on debates that took place during Proparco Days, which brought together over 100 bank and investment fund executives representing nearly €800 billion in assets under management.

By giving a voice to its clients and partners, this issue reminds us that only collective, coordinated, and ambitious action will make it possible to scale up climate finance. The challenge is enormous, but solutions do exist – provided we act now.