Climate finance refers to financial resources provided to support projects and initiatives that help address climate change and promote environmental sustainability. It includes funding for activities such as renewable energy projects, climate adaptation measures, and reducing greenhouse gas emissions. The aim of
climate finance is to support efforts in transitioning to a more sustainable and low-carbon economy to mitigate the impacts of climate change.
Full definition
Developed countries have agreed to boost the flow
of climate finance to $ 100 billion annually by 2020, but are reluctant to make firm commitments beyond that, partly because of budget uncertainties.
The authors find there was $ 97 USD million
in climate finance in 2009 and 2010 (data are presented for the most recent year available).
One thing seems clear, that current models
for climate finance mechanisms suffer from poor governance.
There was minimal progress
on climate finance for developing countries, with several European countries making pledges totaling US$ 6 billion over the next three years.
Here, for example, we could see funding a switch from coal to natural gas count
as climate finance.
Both have taken steps, supported by
public climate finance, to create the conditions that drive renewable energy investment.
Political leaders, development banks and others working to increase
private climate finance often assume that private actors can support climate action in developing countries in much the same way as public entities.
Results - based finance could provide a foundation for companies to contribute to
climate finance goals, and could potentially be the basis for other instruments that effectively contribute to climate and sustainability goals.
Only public grants — or the grant equivalent of loans, guarantees and other financial instruments — should count as part of the $ 100 billion or any
future climate finance targets.
There also remains little clarity on when and how countries will start a process to define a new collective goal for
climate finance after 2025.
The international community and donors have pledged a number of funding commitments such as the
enhanced climate financing to address some of the interconnected issues.
Money for adaptation, and money for sustainable development projects at a time
when climate finance is non-existent.
This paper outlined two options for a forum to streamline the exchange
climate finance information, including the possibilities of public - private partnerships.
However, in recent years the credit quality of green bonds has improved, and they now represent an increasingly feasible option to
unlock climate finance.
This guidance document suggests that governments,
climate finance providers and large corporations can encourage micro and small businesses in developing countries to invest in adaptation and support efforts to build resilience.
It is a cooperative platform that brings
together climate finance actors across major climate funds to promote governance that is inclusive, transparent, and accountable at all levels of decision - making.
The challenge faced concerns
defining climate finance, how to report different forms of public support (grants, loans, etc), and defining new and additional support.
I conclude that, while imperfect, carbon markets have too often been unfairly compared with an
ideal climate finance mechanism that assumes few political constraints on international resource transfers for climate change.
Only grants and the grant - equivalent of other financial instruments should actually count
as climate finance.
If well designed, they will create new channels
for climate finance, lead to technology transfer and capacity building and hence support sustainable development in many areas.
But efforts are ongoing to address the huge imbalance towards mitigation, with adaptation funding accounting for just a quarter of all
public climate finance.
Beyond this, it is important to further examine
how climate finance is working on the ground, and what kinds of outcomes it is producing for Caribbean communities.
Despite this somewhat dubious efforts to talk about long -
term climate finance, little advancement has been accomplished regarding the establishment of an updated, scaled - up long - term finance goal.
Providing international
climate finance from within California or other states has a time - line longer than the Paris COP this December, but advocating for it could be a building block for the longer - term changes that we need.
It details the work done to
provide climate financing through climate investment funds and describes development initiatives administered by ADB.
Moving into the Conference of Parties of the UN Framework Convention on Climate Change (UNFCCC) in Durban, South Africa, the WBG has continued to push for a leadership role in
climate finance through carbon offsetting schemes and carbon trading, the Climate Investment Funds, and the Green Climate Fund.
The report focuses primarily on public
climate finance flows from «north» to «south», probing the current use of funds from multi ‐ lateral development banks (MDBs), bi ‐ lateral financial institutions (BFIs) and carbon markets for energy efficiency projects in developing countries.
Current pledges of
climate finance by developed countries ($ 30 billion until 2012 and an aim of mobilizing $ 100 billion a year by 2020) come nowhere near the sums needed to address climate change in developing countries.
Last June, ahead of its Sustainable Investment Forum, Climate Action launched the call for submissions for innovative
climate finance instruments, as part of its new competition.
Furthermore, as part of a global effort, developed country Parties should continue to take the lead in
mobilizing climate finance from a wide variety of sources, instruments and channels, noting the significant role of public funds, through a variety of actions, including supporting country - driven strategies, and taking into account the needs and priorities of developing country Parties.
At another event, Indian environment minister Jairam Ramesh, on the topic of the $ 10 billion in fast -
start climate financing promised globally for 2010 (part of $ 30 billion for 2010 - 2012), was quoted as saying, «I am deeply, deeply disappointed.
Phrases with «climate finance»