3/5  BIS central bankers' speeches  It is essential to move from a bad equilibrium with high financing costs and insufficient green investment, to climate friendly funding sources at scale for these countries at genuinely low financing costs.
Also, we need to acknowledge that emerging countries and LDCs have less space to spend on climate friendly projects than they had before the Covid 19 pandemic, hence it is necessary to unlock attractive international funding from advanced economies at low interest rates in exchange for credible GHG mitigation. This will also increase the resilience of global financial system to climate risks.