The landscape of climate finance
The landscape of climate finance. Climate Policy Initiative, 2011
In 2009, developed countries committed to a goal of jointly mobilizing USD 100 billion per year by 2020 to address the needs of developing countries with respect to their climate change mitigation and adaptation needs. By compiling data from a wide range of sources, this study finds that at least USD 97 billion per annum is already being provided to support low-carbon, climate-resilient development activities in developing countries. The figure relates to commitments not disbursements, counted at their gross value (rather than the net ‘aid’ value). It includes both private and public sources of finance and both incremental and investment capital.
While this finding raises questions about how the USD 100 billion goal should be interpreted, it also calls attention to the imperative questions of how much and what types of finance are needed? Understanding how much and what type of support is being made available to advance action on low-carbon, climate-resilient development, how these types of support correspond to countries’ needs, and whether financial resources are being spent productively, is critical to building trust among countries and ensuring the effective use of the available financial resources.
This study offers a first comprehensive overview of the climate finance landscape, from which to build this understanding. It maps out major flows of finance from their sources and the intermediaries involved in their distribution, to the financial instruments and channels used to deliver them to their final uses. In doing so, it stimulates thinking and action on next steps in developing a comprehensive tracking system that ultimately helps countries learn how to spend money wisely. (© CPI)