Climate and Public Finance to leverage investment in Climate-Resilient Buildings. Prospects for Carbon Finance (Article 6) and Development Banks

This session explores the role that carbon finance, as well as Public Finance and Development Banks can play to close the investment gap in low carbon and resilient buildings.

High level representatives from Government, Finance Institutions and Development Cooperation Providers will discuss strategies, solutions and challenges in two interactive panels.

Panel 1: Article 6 of the Paris Agreement presents a massive opportunity for emerging economies to unlock climate finance. The buildings sector is critical to achieving global climate goals, but current investment levels fall short. Governments and project developers face practical barriers to engaging with Article 6 in the buildings sector. Methodologies are still emerging, and structural issues such as split incentives and fragmented value chains make implementation complex. The goal of the session is to showcase how countries can make Article 6 work for buildings, drawing on Morocco’s experience as a frontrunner and the launch of a new practical handbook on Article 6 for buildings. High-level representatives from Morocco’s Ministry of National Territory Planning, Urban Planning, Housing, and City Policy as well as the Ministry of Energy Transition and Sustainable Development will introduce the topic by highlighting the country’s commitment to climate policy in the buildings sector and its progress on Article 6. A presentation of PEEB’s new handbook on how to develop Article 6 projects by a senior expert will offer practical guidance for decision-makers, including strategies towards project types, integrity criteria, and methodologies. An expert will delve into challenges and opportunities in operationalising Article 6, aligning projects with national priorities, and ensuring ambition and replicability.

Panel 2: Public finance and National and subnational development and financial institutions play a crucial role in unlocking massive finance for climate-friendly buildings, given the often decentralised and localised nature of the buildings business and policy environment. In light of the increasing implementation of green taxonomies and climate disclosure frameworks (e.g. the International Sustainability Standards Board), there is growing urgency for financial institutions to adjust their portfolios and products to meet climate-aligned standards. High-level representatives from leading national and international initiatives (finance, industry, policy) will join the panel to discuss strategies and key success factors to scale up finance for green and sustainable buildings.