Financing climate policies in developing countries

Project description

According to estimates by the United Nations Framework Convention on Climate Change (UNFCCC), global climate change mitigation will require incremental investments of USD 200 to 210 billion annually (2030 as reference year). Public finance comes nowhere near to meeting these needs. Private investments, however, have a crucial role to play. According to the UNFCCC, 1.1 to 1.7 per cent of global investments would cover additional funding needs in 2030. Public finance, combined with supportive policy frameworks, can and must play a catalytic role in promoting these private low-carbon investments. This role is analysed in the research project “Financing climate policies in developing countries”, with a special focus on emerging countries: What barriers do private investments face? How can public finance leverage private funds? And what policy frameworks are required?