Introduction

The Baku Initiative for Climate Finance, Investment, and Trade (BICFIT) aims to address the $4 trillion annual sustainable investment gap in developing countries through several key strategies:

Reforming the International Financial System

BICFIT calls for reforms to make climate finance more accessible and affordable for developing nations.

It advocates for restructuring the international financial architecture to ensure it meets the needs of developing countries.

Enhancing Multilateral Development Bank Efforts

The initiative urges multilateral development banks to scale up their efforts and share more risks.

It encourages these institutions to attract private investment to support developing countries with long-term and affordable financing.

Improving Access to Climate Finance

BICFIT focuses on enhancing access to and effectiveness of climate finance for developing countries.

It aims to support countries in attracting climate-positive investments and developing bankable climate projects.

Aligning Policies and Fostering Collaboration

The initiative seeks to create a framework that aligns trade, investment, and finance policies to reinforce each other and support developing countries’ growth.

BICFIT will organize regular dialogues as part of UNCTAD’s World Investment Forum and other global platforms to foster collaboration and exchange best practices.

Empowering Local Entities

The initiative aims to empower micro, small, and medium enterprises (MSMEs) in their green and just transition.

It encourages the creation of national, regional, and sub-regional platforms to align climate action with development objectives at more localized levels.

Conclusion

By implementing these strategies, the Baku Initiative aims to bridge the substantial investment gap and enable developing countries to access the necessary capital for climate adaptation and sustainable development.