Kamleshan Pillay, CDKN’s Climate Finance Lead, outlines three potentially game-changing initiatives to enhance private finance of climate action, in response to the release of the IPCC Special Report on Global Warming of 1.5°C. [more...]
Developing countries need an estimated US$100 billion per year in climate finance by 2020 to adapt to the negative effects of climate change and help them shift toward low-carbon development paths. Although this target was agreed by the international community in the 2009 Copenhagen Accords, the funds are still only partly committed by governments and only partly available on private markets. There is often a long lag before the committed money is disbursed.
CDKN’s vision is for an international climate finance system that is ‘fit for purpose’ – i.e. that will support the delivery of climate funds urgently needed by developing countries in the medium term, as well as meet commitments made in the UNFCCC context in the long term.
Individual countries must be able to access those funds effectively. They need the skills and institutional capacity to qualify for them, and must have systems in place for allocating the funds transparently among projects and programmes. The very significant potential of the private sector to provide investment capital for low-carbon development and climate adaptation projects must be unlocked if the world is to reach these ambitious climate finance targets and the underlying emissions reductions goals.
In support of this vision, CDKN:
1. Seeks to influence the evolution of the international climate finance architecture so that it benefits developing countries
2. Disseminates best practices and catalyses innovative partnerships among private sector actors and government decision makers in support of climate compatible development
3. Strengthens developing countries’ institutions and processes for gaining access to climate finance, allocating climate monies fairly, and monitoring and reporting accurately on climate investments.
Read our Special Edition of 'Climate and Development Outlook' on climate finance: this highlights recent results and learning from our projects.
See the stories below for more information or click here to see a full list of CDKN's projects in climate finance
Last week, the Global Green Bond Partnership (GGBP) launched at the Global Climate Action Summit (GCAS) in San Francisco, USA. This new partnership will support efforts of subnational entities such as cities, states, and regions, corporations, private companies and financial institutions to accelerate the issuance of green bonds. [more...]
A recent adaptation finance roundtable examined developing countries’ financing challenges, needs and opportunities in response to climate risk. CDKN's Mairi Dupar reports. [more...]
With increasing use of 'blended finance' approaches, public and private financiers are joining forces in the Southern African region to invest in climate change solutions. The increased willingness of public and private investors to work together is a portent of good things to come - report Blaise Dobson and Charlotte Ellis of SouthSouthNorth. [more...]
How can governments, international programmes and other stakeholders create an enabling environment for private investment in climate action? In their new paper,Charlotte Ellis and Kamleshan Pillay share key lessons from CDKN’s experience. [more]…
WORKING PAPER: Working across scales - Learning from seven years of climate compatible development in Asia
A new report by John Colvin and Christina McDonagh for CDKN explores the value of stimulating climate compatible development initiatives at multiple levels of governance - drawing on seven years of work by CDKN in India, Indonesia, Nepal and Pakistan. [more]…
Resources from our partners
Prof. Charlotte de Fraiture of the CCMCC 'Investing in Land and Water' project discusses the complexity of conflict and cooperation, how assumptions made around climate financing need to be addressed while conducting research, and how collaboration resulted in learning across and between scales.
This paper explores different mechanisms for delivering climate finance at the local level, with examples from Ethiopia and Kenya. It aims to understand how well these funds take into account the priorities of local communities, and incorporate national climate change policies and development plans.