Climate finance: challenges and responses
This policy brief by the Climate and Development Knowledge Network (CDKN) estimates that the cost of tackling climate change in developing countries could reach some hundreds of billions of US dollars annually over the coming decades. Low-emission and climate-resilient development options often require upfront investments that can be costlier than conventional solutions. It points out that currently there is not a comprehensive global climate finance approach and it will time before the Green Climate Fund (GCF) will be operationalised. Developing countries require support in their efforts towards climate compatible development through the use of climate finance, both public and private, that enables equitable access, national ownership, and effective management and monitoring. This can be achieved by engaging in three priority areas: international climate finance architecture; recipient readiness; and enabling environment for private sector to invest in climate compatible development.