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.
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.
Focus on OPIC and Ex-Im Bank's Use of Financial Instruments...
WRI’s “Climate Finance” series tackles a broad range of issues relevant to public contributors, intermediaries, and recipients of climate finance—that is, financial flows to developing countries to mitigate greenhouse gas emissions and adapt to climate change impacts. A subset of this series,...
Five-country comparison on solar photovoltaic and on-shore wind energy policies and progress.
The last in a series of expert workshops and consultations under the UNFCCC’s work-programme on long-term finance concluded late yesterday. This 2013 extended work programme on long-term climate finance is designed to “identify pathways for mobilizing the scaling up of climate finance to USD 100 billion per year by 2020 from public, private, and alternative sources” and inform “enabling environments and policy frameworks to facilitate the mobilization and effective deployment of climate finance in developing countries.”I had the opportunity to participate quite actively in this year’s series, as WRI is working with co-chairs from the Philippines and Sweden to facilitate discussions on how to mobilize scaled-up finance for climate action.
Norway is one of the largest contributors to climate finance in the world, relative to the size of its economy. In 2010 and 2011, the majority of Norway’s fast-start finance (FSF) was channeled through multilateral institutions and supported mitigation activities in developing countries, with a...
On July 16, 2013 the World Bank agreed to support universal access to reliable modern energy and limit the financing of coal-fired power plants to rare circumstances in an effort to address climate change concerns.
Under the UN Framework Convention on Climate Change (UNFCCC), developed countries have committed to mobilize $100 billion to support developing country efforts to reduce their greenhouse gas emissions and adapt to a changing climate. This new and additional climate financing, together with technology and capacity-building support, will be made available by 2020.
Tracking these funds and ensuring that they are delivered effectively is a huge undertaking. Developed countries report their climate finance contributions in periodic national communications submitted to the UNFCCC. However, because countries use multiple methods for reporting and often provide insufficient information, the data gathered are of limited use.
WRI was one of the first organizations to emphasize the importance of transparency of climate finance as part of any new international climate agreement. In the lead up to the UNFCCC conference in Cancun, held in December 2010, our climate team assessed existing finance reporting systems, provided specific guidelines for improvement, and put forward a common reporting format. The team then helped mobilize coalitions to secure support. The result was a mandate at Cancun calling for revised and enhanced reporting guidelines. If fully implemented, these will help donors and recipients better assess and understand the flow and effectiveness of climate finance, and ensure its alignment with other development priorities.
WRI remains active in the UNFCCC process because we believe all nations must act to reduce their greenhouse gas emissions if we are to contain rising temperatures within the limits to which humanity can adapt. Our work on climate finance and in other key policy areas is making a difference in the international climate negotiations.
While reactions to President Obama’s newly announced climate plan have focused on domestic action, the plan actually has potentially significant repercussions for the rest of the world. These repercussions will come in part through his commitment to limit U.S. investments in new coal-fired power plants overseas. If fully implemented, the plan will help ensure that the U.S. government channels its international investments away from fossil fuels and toward clean energy. The move sends a powerful signal—and hopefully, will inspire similar action by other global lenders.
Reducing the vulnerability of local communities exposed to climate change by increasing the volume and effectiveness of finance directed towards adaptation.