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Blog Posts: finance

  • Q&A with Dr. Karin Kemper: How Is the World Bank Addressing Climate Change?

    The World Bank consistently makes the link between poverty elimination and the need to curb climate change. Yet a WRI analysis shows that of the investments the World Bank financed between 2012 and 2013, only one-quarter addressed climate change risks.

    Dr. Karin Kemper, director of climate policy and finance in the World Bank Group’s (WBG) Climate Group, shares the Bank's current and future plans to more fully incorporate climate change mitigation and adaptation into its international development agenda.

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  • The Trillion Dollar Question: Where Does Transport Investment Come From?

    New analysis quantifies the total annual transport capital investment around the world. The Trillion Dollar Question: Tracking Public and Private Investment in Transport working paper finds that the global transport investment is between US$1.4 and US$2.1 trillion each year, enough to fund the capital budget of New York’s subway 88 times.

    This finding and others have significant implications—both for the cities of today and for investing in the future cities we want.

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  • 5 Things We Learned in 2013 that Could Move the Needle on Sustainability

    Two and a half millennia ago, Plato announced that “Human behavior flows from three things: desire, emotion, and knowledge.” Unfortunately, our human and corporate behavior on climate change is not even close to where it needs to be. But if the great philosopher was right (and he usually was), 2013 may have been a game changer.

    The big news from 2013 came from gains in knowledge. New tools and research are opening our understanding much wider than before. But will we act on this? Knowledge can spur action, but this path is not guaranteed.

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  • A Business Case for Building Climate Resilience

    This is the final installment of WRI’s blog series, Adaptation and the Private Sector. Each post explores ways to engage the private sector in helping vulnerable communities adapt to the impacts of climate change.

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  • 3 Ways Governments Can Involve the Private Sector in Climate Change Adaptation

    As the impacts of climate change become ever-clearer, so does the challenge of adaptation. While the World Bank estimates that developing countries will need $70-$100 billion annually through 2050 to adapt to climate change, the public sector alone cannot meet this financial goal. Rather, the world needs the human, technical, and financial resources of the private sector to help bridge this significant adaptation finance gap and make vulnerable communities more climate-resilient.

    National governments have a critical role to play in supporting and stimulating private sector investment in adaptation. In order to engage the private sector in helping vulnerable populations prepare for the effects of climate change, developing country governments can take three types of actions:

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  • Is Adaptation Short-Changed? The Imbalance in Climate Finance Commitments

    One of the biggest successes from 2009’s COP 15 conference was securing funding for climate change adaptation and mitigation in developing countries. Donor nations agreed to “provide new and additional resources […] approaching $30 billion for the period 2010–2012, with balanced allocation between adaptation and mitigation.” They also committed to mobilize $100 billion a year by 2020.  
    

    But the agreement left a key question unresolved: how should funding be “balanced” between adaptation and mitigation? Should the funding balance be 50/50 between adaptation and mitigation or should it based on each country’s needs? Should funding include both private and public sector investment? These are some of the questions that negotiators will need to address during COP 19 in Warsaw.

    But whatever they decide as being a “balanced commitment,” one thing is clear: finance for adaptation needs to increase in the coming years.

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  • The Green Climate Fund: From Inception to Launch

    A year after its inaugural meeting, the Board of the Green Climate Fund (GCF) left its fifth meeting in Paris earlier this month with a collective sense of urgency. The GCF is expected to become the main vehicle for disbursing climate finance to developing nations, so the decisions made at this most recent meeting significantly impact the future of climate change mitigation and adaptation. Encouragingly, Board members stepped up to the important task before them, making progress across several key issues. Their decisions made it clear: The GCF’s inception phase (referred to officially as "the interim period") is over—the focus now is on funding it and launching its operations.

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  • 5 Areas for Action to Set the Green Climate Fund on an Ambitious Path

    Expectations are running high as the Board of the Green Climate Fund prepares for its fifth meeting in Paris this week. The GCF must make progress towards five key issues at next week’s meeting in Paris.

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  • IMF Experts and Others Envision a World without Energy Subsidies

    The world continues to see the “costs” of fossil fuel use in the form of climate change impacts like heat waves, floods, and extreme weather. While these costs are often overlooked in traditional economic modeling, a new book from the International Monetary Fund (IMF) quantifies them.

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  • The Difficulty of Defining Adaptation Finance

    While working on tracking adaptation finance for our Adaptation Finance Accountability Initiative project, we often get the question “What is adaptation finance?” or “What counts as adaptation finance?” To our embarrassment, we still don’t have a clear answer to either question, other than “Well… finance that funds efforts to adapt to the impacts of climate change qualifies as adaptation finance.”

    We aren’t the only ones who struggle to define the very issue on which we work. Even some of the definitions that the Organisation for Economic Cooperation and Development (OECD) and multilateral development banks are developing do not provide a complete answer to the question of what types of investment are considered to be adaptation finance.

    We decided to do some soul-searching on this subject. While it’s still too complicated to provide a cut-and-dry definition of adaptation finance, we identified three common traits surrounding the issue: Adaptation finance is context-specific, dynamic, and not just about finance.

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