WRI Insights

In 2011, nearly 350 million people lived in Indian cities. [More than 300 million](http://www.mckinsey.com/insights/urbanization/urban_awakening_in_india) new residents will join them over the next few decades to become part of the new urban India. This population boom will stress an already-pressured urban infrastructure system, especially with regard to transportation.

Rural farmers [depend on land and natural resources](http://insights.wri.org/news/2012/05/why-land-rights-should-be-rio20-agenda) for food, income, and their physical well-being. But what happens when national or local governments prevent rural people and communities from farming their land?

Ministers and senior officials from developed countries [will gather](http://www.scribd.com/doc/132823923/US-Finance-Agenda-April-2013) this Thursday in Washington, D.C. to tackle one of the world’s foremost challenges: how to mobilize private sector capital to reduce greenhouse gas (GHG) emissions in developing countries and help them adapt to climate change’s impacts. The meeting, organized by the U.S. State Department, comes on the heels of [another meeting](http://www.oecd.org/env/cc/ccxgglobalforum-march2013.htm) of climate finance experts and researchers in Paris, organized by the Organisation for Economic Cooperation and Development (OECD).

Surprising as it may sound, there is no standard definition of [climate finance](http://www.wri.org/climate-finance). In fact, there are many differing views on what type of funding constitutes climate finance, how it should be delivered, and [how much money](http://www.wri.org/blog/2013/02/how-can-we-pay-green-growth-new-report-provides-answers) developing nations will need to mitigate climate change and adapt to its impacts. This vortex of information can be confusing to navigate. Here, we'll do our best to break down all of the components that define “climate finance.”

This is the last of a five-part blog series, [Aligning Profit and Environmental Sustainability](/blog-tags/8691). Each installment has explored key ingredients to help businesses [overcome barriers](http://www.wri.org/blog/2013/03/4-barriers-overcome-achieving-corporate-environmental-sustainability) that prevent them from integrating environmental sustainability into their everyday operations. Read [the entire series](/blog-tags/8691).

The rapid expansion of natural gas development in the United States has been a double-edged sword. While natural gas supporters are quick to point out its economic benefits and green attributes—natural gas produces roughly half the carbon dioxide emissions of coal during combustion—this isn’t the whole story. Natural gas comes with environmental consequences, including risks to air and water quality.

Six years after the release of the landmark *[Stern Review on the Economics of Climate Change](http://webarchive.nationalarchives.gov.uk/+/http:/www.hm-treasury.gov.uk/sternreview_index.htm)*, Lord Nicholas Stern revealed yesterday the most challenging hurdle ahead for international climate action. Overcoming this obstacle is not a matter of figuring out the scientific or policy pathways needed to curb climate change—nor is it determining what technologies to adopt or what investments must be made. “What’s missing is the political will,” said Stern.

Natural gas is booming in the United States. Production has increased by 20 percent in the last five years, fueled largely by technological advances in [shale gas extraction](http://www.eia.gov/energy_in_brief/article/about_shale_gas.cfm). Other countries--[including China](/publication/testimony-chinas-prospects-shale-gas-and-implications-us)--are now studying our experience with this abundant new resource.

Developing countries will need [about $531 billion](http://www.wri.org/publication/mobilizing-climate-investment) of additional investments in clean energy technologies every year in order to limit global temperature rise to 2° C above pre-industrial levels, thus preventing climate change’s worst impacts. To attract investments on the scale required, developing country governments, with support from developed countries, must undertake [“readiness” activities](http://www.wri.org/blog/2013/03/4-ways-green-climate-fund-can-support-readiness-climate-finance) that will encourage public and [private sector investors](http://www.wri.org/project/climate-finance-private-sector) to put their money into climate-friendly projects.

New [data](http://www.eia.gov/totalenergy/data/monthly/index.cfm) from the U.S. Energy Information Administration (EIA) reveals a troubling trend: Coal-fired power generation—and its associated greenhouse gas emissions—were on the rise as 2012 came to an end.