This event explored whether expectations from LDCs are being met for climate action in the form of long-term strategies and climate-finance delivery. More information and recording .
Among solutions being discussed in the preparations for LDC5 is ¡°the establishment of a dedicated and sufficiently large blended finance de-risking facility for LDCs that is focused on providing catalytic capital to growth SMEs, small investment projects and other strategic investments with transformative SDG potential, in order to unlock further commercial and semi-commercial investments.
"The COVID-19 crisis urges us to rethink the economic vulnerability of Least Developed Countries (LDCs) and developing countries more generally. The crisis is putting to a test international support measures and in particular their capacity to adequately respond to countries¡¯ needs. LDCs exhibit significant vulnerabilities that can be overlooked by the current mechanisms of financing for development. At the same time, those vulnerabilities contribute to the slow gains in structural transformation and productive capacity.
The current COVID-19 pandemic has highlighted the precarity of LDCs when it comes to financing and investments in support to trade. There is a growing consensus in the aid community that blending traditional Official Development Assistance (ODA) with private sector sources of capital through innovative finance mechanisms will be crucial to help LDCs recover from the pandemic.
