FEATURE: 1. The Landscape of climate finance 2012, CPI
The paper estimates that annual global climate finance flows reached an average 364 billion US$ in 2010 and 2011, including $217-243 billion from the private sector. In this context, public finance represented 5-6% of the overall flow, and was namely channelled through bilateral aid and support to the private sector (i.e. 293 billion US$ was in the form of market rate loans and equity). The report also highlights that emerging economies were recipients of 1/3 of all mitigation investments, but also raised their own domestic climate finance. Interestingly, despite fiscal constraints, the report states an increase in public funding for low-carbon, climate-resilient development – almost 11 billion dollars were spent on domestic renewable energy projects (namely the US and China) and climate finance represents a growing share of ODA spending. Private finance accounts for 63% of overall flows. 2/3 of the money comes from Developed Countries but the report estimates that 83% of the private investments in Developing Countries included contributions by domestic private actors. The report highlights the “pivotal” role played by both public and private intermediaries in the climate finance landscape, and particularly, national and sub-regional development banks in emerging economies. Finally, CPI notes that 350 out of 364 billion were spent on mitigation action (renewable energy and energy efficiency). Developed and Developing Countries received climate finance in a balanced manner. However, the bulk of climate finance in Developing Countries was spent in emerging economies (since they were also raising domestic climate finance).
Authors: Barbara Buchner, Angela Falconer, Morgan Hervé-Mignucci, Chiara Trabacchi (CPI)
Date: December 2012
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