National Climate Finance Strategy for 2025 launched

Official launch of Sri Lanka’s National Climate Finance Strategy for 2025-2030
PIC BY NISAL BADUGE  

• Aims to provide a roadmap to effectively engage with climate investments 
• Climate-related losses exceed Rs.50bn annually: WB 2017 development update

By Shannine Daniel

The National Climate Finance Strategy for 2025-2030 was launched yesterday by the Finance Ministry and United Nations Development Programme (UNDP) through the Climate Finance Network project, which was funded by the UK government. 

The strategy hopes to provide a roadmap that would effectively leverage and channel climate investments, with the aim of supporting Sri Lanka’s transition to a carbon net zero pathway.

“The strategy will enable Sri Lanka to access international climate funding. There is an ongoing debate about whether there is sufficient climate finance and the UK is currently a central contributor of climate financing,” said British High Commissioner Andrew Patrick, who added that Sri Lanka had a huge potential for offshore wind power generation. 

Twelve instruments were identified to form the core of the National Climate Finance Strategy, with the focus on important areas such as adaptation, mitigation and managing climate-related losses. 

These include disaster risk insurance, public–private partnerships for climate action, subsidies for Good Agricultural Practices, green, blue or sustainability/sustainability-linked bonds, green loans, increasing official development assistance, natural capital accounting in national accounts, promotion of sustainable tourism, entrance fees, Green Revolving Fund, Environmental, Social and Governance swaps focused on nature, energy, water and agriculture and the development of a carbon market.

“Climate financing must be integrated with broader development and environmental goals. When executed well, it unlocks more benefits in the forms of jobs, better health, resilience and natural protection,” UNDP Sri Lanka Resident Representative Azusa Kubota noted. 

She added that partnerships and collaborations were essential for climate financing and bold actions were needed across the public and private sector, including public-private partnerships that could enhance cost-effectiveness and drive meaningful progress. 

“Sri Lanka’s capital market is willing to support climate-related engagements and this platform could be used to highlight that we have the necessary products and instruments for climate financing,” commented Treasury Secretary Dr. Harshana Suriyapperuma, while inviting the investors to take up these initiatives.  He also stated that the necessary governance framework for climate financing would be prepared in future. 

“With Sri Lanka’s economy tied to agriculture, fisheries and tourism, the cost of climate inaction is unimaginable. Climate change intersects with every facet of development including health, agriculture, infrastructure and livelihoods,” Kubota opined.

The first review for the strategy is scheduled for 2027.