Topic: climate finance

WRI’s “Climate Finance” series tackles a broad range of issues relevant to public contributors, intermediaries, and recipients of climate finance—that is, financial flows to developing countries to mitigate greenhouse gas emissions and adapt to climate change impacts. A subset of this series, including this paper on OPIC and Ex-Im Bank, examines how different types of public climate finance providers and intermediaries–or international finance entities like the proposed Green Climate Fund–can help meet the significant investment needs of developing countries by mobilizing private sector investment. These publications acknowledge the importance of over-arching support for complementary climate change policies that create attractive market conditions domestically but focus on the use of financial instruments.

Norway is one of the largest contributors to climate finance in the world, relative to the size of its economy. In 2010 and 2011, the majority of Norway’s fast-start finance (FSF) was channeled through multilateral institutions and supported mitigation activities in developing countries, with a particular focus on efforts to reduce emissions from deforestation and forest degradation.

This working paper considers the scope and distribution of Norway’s self-reported FSF. It discusses innovative climate finance mechanisms, sources of finance that Norway counts as FSF, and whether the contribution is considered new and additional.

Germany’s fast-start finance (FSF) contribution reflects a significant focus on financing climate action in developing countries. Germany exceeded its self-defined FSF pledge for the 2010-2012 FSF period, providing a total of EUR 1.29 billion, and also pledged to deliver EUR 1.8 billion in 2013. It is also one of the few countries to have published and adhered to a specific definition of what constitutes “new and additional” climate finance.

This working paper provides policymakers and other climate finance practitioners with an assessment of German FSF project data. It examines characteristics of the finance such as channeling institutions employed and the extent of support for mitigation and adaptation activities. It also discusses innovative institutions for climate finance, Germany’s definition of additionality for FSF, and the degree to which the finance might be considered new and additional.

This fact sheet updates a May 2012 working paper on the U.S. fast-start finance (FSF) contribution over the 2010-2012 period. It analyzes the financial instruments involved in the U.S. self-reported portfolio—about $7.5 billion, or 20 percent of the total FSF commitment globally. It also identifies the extent to which climate change objectives target adaptation and mitigation through recipient institutions in developing countries. It is intended to provide a range of key players in climate finance—including policymakers, development finance institutions, companies, and non-governmental organizations—with an assessment of past efforts to define, deliver, and report U.S. FSF in order to inform delivery of future climate finance.

These documents explain the methodology WRI employed for its research and provide a listing of the projects considered in its working paper, Public Financing Instruments to Leverage Private Capital for Climate-Relevant Investment: Focus on Multilateral Agencies. The methodology may serve as a useful baseline reference for similar undertakings across entities. The project database further indicates the depth and breadth of climate-relevant investment data that is publicly available.

This document maps the types of financial instruments used by various development financial institutions, export credit agencies, and climate funds to support their operations. It can serve as a useful reference for public sector decision-makers evaluating the broad toolkit of options available to support private sector climate change mitigation and adaptation projects in developing countries.

Limiting global temperature rise to 2°C above pre-industrial levels will require billions of dollars in investments each year to mitigate greenhouse gas emissions and shift to low-emissions development pathways. This report draws on the experiences of six developing countries to examine how public climate finance can help meet the significant investment needs of developing countries by creating attractive conditions for scaled-up investment in low-carbon energy. Building on lessons from the case studies, it provides a number of recommendations for international climate funds and institutions, in particular for the new Green Climate Fund.

This working paper is part of WRI’s Climate Finance Series, which tackles a broad range of issues relevant to public donors, intermediaries, and recipients of climate finance. A subset of this series, including this working paper, examines how public funds can leverage private sector investment in climate-relevant projects to help meet developing countries’ significant investment needs. This paper maps climate-relevant investments of select multilateral agencies – the World Bank Group, the Global Environment Facility (GEF), and the Clean Technology Fund (CTF) – to identify trends in their investment practices. Subsequent working papers will map the activities of other public institutions. The aggregated findings will be synthesized into recommendations that inform the future public provision of climate finance with respect to leveraging private sector capital.

Japan’s fast-start finance (FSF) commitment is one of the largest amongst developed countries, but it is important to consider the contents of this commitment. Japan has played a significant role in global efforts to finance climate change activities in developing countries, and its FSF commitments account for almost half of the FSF that developed countries have pledged for 2010-2012. However, it is essential to better understand the broad range of instruments and activities that the government includes in its FSF, as different governments consider different types of finance to constitute FSF, so self-reported figures are not directly comparable between countries.

WRI’s preliminary analysis on countries’ immediate “fast start” climate finance pledges announced thus far.

2011/2012 was a transition period as WRI said goodbye to President Jonathan Lash and welcomed new President Andrew Steer. With ample wind in our sails from 18 years of Jonathan’s leadership, the Institute’s accomplishments—many captured in this report—reflect both the strength and versatility he instilled in the organization.