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climate finance

New Green Growth Alliance Will Help Spur Private Investment in Developing Nations

This week’s Business 20, or “B20,” summit in Los Cabos, Mexico signals the launch of the Green Growth Action Alliance (G2A2), a partnership between the public and private sectors designed to dramatically scale-up private investment in “green” sectors like renewable energy, clean transportation, and sustainable agriculture.

The G2A2 includes representatives ranging from financial institutions like HSBC, to corporations like Walmart, to key public sector actors like the World Bank Group. WRI joins the effort alongside other environmentally focused organizations as an “analytical supporter,” providing research input and guidance to the G2A2’s upcoming activities.

Priorities for the Green Climate Fund in 2012

With the first meeting of the Green Climate Fund (GCF) fast approaching, two regional groups – Asia-Pacific and Latin America and the Caribbean – have yet to nominate their Board members. Negotiated over the last two years, the GCF is expected to deliver large-scale finance to developing countries to address climate change. Without completing the nominations, though, the Board cannot begin the important task of making the “main global fund for climate change finance” operational.

Earlier this year, WRI and Climate Analytics facilitated a meeting in New York City of representatives from prospective Board member countries and others involved in the Fund’s design (see summary note). Participants exchanged ideas and perspectives on the Board’s program of work for 2012 and priorities for its first meeting. In addition to the basic administrative arrangements – like selecting a host country and establishing a secretariat – the Board needs to do the following in 2012:

Where do Renewable Energy Purchases Fit into a GHG Inventory?

I recently presented at the 7th Product Carbon Footprint (PCF) World Forum Summit, a gathering of experts brought together by Berlin-based think tank Thema1 “to foster and facilitate international discussion on how to assess, reduce, and communicate the impact of goods and services on the climate.” This group historically has focused on the life cycle of greenhouse gas (GHG) emissions and product-level emission inventories. But this year’s theme included an additional focus: whether and how renewable energy purchases should be reflected in corporate GHG emissions calculations.

Renewable energy sources like wind and solar have no GHG emissions associated with generation and thus play a vital role in reducing overall emissions from electricity use. Many companies seek to purchase this energy and use the zero-emissions rate in calculating their indirect emissions from electricity consumption (also known as scope 2 emissions). However, several uncertainties surround how this practice should be used in GHG accounting—or whether it should be permitted at all.

Shedding Light on Fast-Start Finance

How much fast-start climate finance is actually flowing, and where is it being spent?[^1] This question has come up repeatedly alongside the United Nations Framework Convention on Climate Change (UNFCCC) climate talks in Bonn this week.

Today the World Resources Institute (WRI) and Overseas Development Institute (ODI) published two working papers examining the fast-start contributions of the UK and US (GBP 1.06 billion and USD 5.1 billion, respectively). These papers seek to shed light on how developed countries are defining, delivering, and reporting fast-start finance. A similar paper on Japan’s contribution is under development, led by the Tokyo-based International Group for Environmental Strategies (IGES). The studies are carried out in collaboration with the Open Climate Network (OCN).

The U.S. Fast-Start Finance Contribution

The U.S. FSF contribution of $5.1B reflects a positive effort made in challenging political and economic circumstances, but there is more to be done. Congress and key agencies have increased funding for climate change objectives relative to the pre-FSF period, and have begun to integrate climate...

The UK Fast-Start Finance Contribution

The UK has made a substantial effort to mobilise climate finance. Finance has been channelled through the Environmental Transformation Fund in 2010/11 and through the International Climate Fund (ICF) in 2011/12. GBP 1.06 billion had been spent and committed as of November 2011. It has also...

Coming Up: Assessments of UK and US Fast-Start Finance

Under the United Nations Framework Convention on Climate Change (UNFCCC), developed countries have pledged to provide “fast-start” finance approaching USD 30 billion for the period 2010-2012. Now, in the final year of the fast-start period, these countries are under pressure to demonstrate that they are meeting this pledge. But divergent viewpoints on what constitutes fast-start finance – coupled with unharmonized approaches to delivering and reporting on it – complicate such an assessment.

Starting in May 2012, the Open Climate Network (OCN) will release a series of reports that aims to shed light on these discussions by clarifying how developed countries are defining, delivering, and reporting their fast-start finance.

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