German minister: Private capital is vital for green transition

Attracting private capital is vital for green transition, Anna Luhrmann, German State Minister for Europe and Climate, said at an event titled "Green Transition Guarantee Group - Attracting Private Capital to Accelerate Green Transition in Emerging and Middle-Income Countries (EMDE)" held on the sidelines of COP29 in Baku, Report informs.

Luhrmann stated that government budgets alone are not sufficient to achieve major progress in combating climate change and environmental protection, noting that the private sector can provide great support for this transition. She further highlighted the importance of the Green Transition Guarantee Group initiative in terms of incorporating private capital into financing mechanisms: "Our goal is not only to increase financial opportunities but also to accelerate the development of green technology and infrastructure in EMDE countries."

She also emphasized that this initiative will contribute significantly not only to economic development but also to environmental protection.

The minister said that stronger cooperation between states, international organizations, and the private sector is required for faster implementation of green transition, and only then can a sustainable future be built.

Luhrmann also noted the necessity of establishing new support mechanisms for the private sector to participate more actively in financing the green transition.