Policy Brief No. 23 of 2023-2024 on Harnessing Inclusive Climate Finance for Youth Empowerment at COP28

Abstract

The urgency of addressing climate change has become increasingly evident, and global efforts, as epitomized by the Conference of the Parties (COP), play a pivotal role. COP28 presents a crucial opportunity to reinforce commitments towards sustainable practices and inclusive policies. Amidst the myriad challenges posed by climate change, the focus on empowering youth has gained prominence. Recognizing the potential of young individuals as catalysts for change, there is a growing contributing to sustainable development. According to UNICEF (2023), a mere 4.2 per cent of the total climate finance is directed towards youth, despite youth constituting a quarter of the global population, totalling 1.8 billion. The problem stems from systemic barriers and a lack of dedicated mechanisms that comprehensively engage youth in the financial aspects of climate initiatives. Financial resources allocated for climate action often bypass opportunities for meaningful youth participation, hindering the development and implementation of policies that align with the diverse needs and innovative solutions youth can bring to the table. Youth, who represent a substantial portion of the global population, face systemic barriers in accessing climate finance opportunities, limiting their capacity to engage in climate-resilient projects and initiatives (GCA, 2019). Additionally, the International Finance Corporation (IFC) reports that lack of tailored financial instruments and support mechanisms for youth-led climate initiatives contributes to the underrepresentation of young entrepreneurs in the climate finance landscape (IFC, 2021).