Many of the greatest human, scientific and technological advancements since World War II rely on the modernization of our financial system made at the Bretton Woods conference in 1944. Today, however, the financial system is failing to adequately address the biggest global financial, humanitarian and public health risk we face: climate change.
The breakdown is occurring in two main areas. First, private investment in clean energy is growing rapidly, but not rapidly enough. And second, the developing countries that have contributed the least to the climate crisis face some of the most severe risks.
Fixing both failures requires partnership across business, government and international institutions, and it’s critical that we embrace every opportunity to knock down obstacles that stand in the way of success. The ambitious Summit for a New Global Financial Pact taking place in Paris, organized by President Emmanuel Macron, can help us take some important steps forward.
Among the first should be a firm commitment among wealthy nations to fulfill a promise first made a decade and a half ago: to collectively provide at least $100 billion per year to help developing nations invest in clean energy and resilient infrastructure. That is just a small fraction of what’s needed, but it would jump-start more private investment in clean energy – and build the trust between the global North and South that is so essential to spurring more action.