In a bid to tackle climate change and overcome its worst financial crisis, Sri Lanka is seeking $100 billion to become a net zero emitter by 2040, according to President Ranil Wickremesinghe.
The country will focus on green financing tools, such as debt for nature swaps, while the president mentioned there are no immediate plans to use green bonds. Sri Lanka aims to attract investment and hopes for its economy to recover from the recent crisis.
Sri Lanka, a small island nation with a population of 22 million, is grappling with its worst financial turbulence in decades due to a severe shortage of foreign exchange reserves that heavily impacted the economy last year. Additionally, the country faces the challenge of enhancing its resilience to climate change. It is particularly vulnerable to extreme weather events and is expected to suffer a 1.2% annual GDP loss by 2050 as a consequence of climate change, according to the World Bank. A projected 19 million Sri Lankans could be living in areas prone to floods or droughts by 2050.
To address these issues, Sri Lanka intends to present two regional proposals at the upcoming U.N. climate summit COP28 in Dubai, taking place from November 30 to December 12. The country hopes to establish collaborations among countries in the tropical belt to collectively combat climate change. Furthermore, Sri Lanka aims to promote the Indian Ocean as a carbon sink. President Wickremesinghe emphasized the significance of the tropical belt, which contains around 40% of the world's forests and is projected to house 50% of the global population by 2040. He believes focusing efforts in this region could have a transformative impact on the fight against climate change.
Another proposal put forward by Sri Lanka is the creation of an international climate change university. The country is ready to allocate 600 acres (240 hectares) of land to support research on global climate change policies. These initiatives highlight Sri Lanka's commitment to climate action and its dedication to finding innovative solutions to address the pressing challenges posed by climate change.
