Climate Finance

The Climate finance project

This project aims to help future economic and political stakeholders understand some of the key issues regarding climate finance. It will focus on climate change’s financial impact, carbon risks, international financial institutions, capital markets’ climate-related investments, international financial governance institutions, fiscal and monetary climate policies, or monitoring systems for assessing climate-compatible investments.

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Climate Finance, Climate Talks, COP24 - Warsaw, Green Fund

COP24: a toolkit for a better, faster, stronger climate finance?

This article is written by Noémie Robin.

Since the Paris Agreement, it has been agreed that whether they are developed or developing, all countries have to fight against climate change and have to put efforts into the transition toward a low-carbon and resilient economy. Indeed all States need to be involved, because if change occurs only in developed countries, the result would not be enough to reach the target of 1.5°C presented by the Intergovernmental Panel on Climate Change (IPCC) in their last report in October. But as the article 9 of the Paris Agreement stated, it has been recognized that it would be difficult for developing countries to support the cost of their transition while they do not have the same financial resources or capacities as developed countries. Thus, developed countries have the duty to financially assist developing countries with respect to mitigation and adaptation and they shall lead the climate finance mobilization from a variety of sources, like public funds. In order to insure this transition, $100 billion per year by 2020 have been pledge from industrialized countries to help the poorer countries to achieve their transition toward a green economy.

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Climate Finance, Climate Talks, COP23 - Fiji & Bonn

Climate finance negotiations and game theory: how a green equilibrium could not be achieved (Part 3)

This article is divided in 3 parts. Read the 1st part here and the 2nd part here.
This article is written by Solène Dengler.

Public and private sector finance is needed to achieve the Paris Agreement objectives

The Paris Agreement sets out two different objectives as regards climate finance: on the one hand developed countries need to invest $100bn dollars per year for mitigation and adaptation projects in developing countries and on the other hand, all finance flows need to progressively be consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.

Lire la suite « Climate finance negotiations and game theory: how a green equilibrium could not be achieved (Part 3) »

Climate Finance, Climate Talks, COP23 - Fiji & Bonn

Climate finance negotiations and game theory: how a green equilibrium could not be achieved (Part 2)

This article is divided in 3 parts. Read the 1st part here and the 3rd part here.
This article is written by Solène Dengler.

Adaptation fund: a weak deal for loss & damage?

According to recent estimates, the costs of adapting to climate change could reach 280-500$ billion per year until 2050 while total bilateral and multilateral funding in developing countries reached 22.5$ billion in 2014. The Fund has been in operation since 2017, has allocated 462 million dollars to 70 adaptation programmes in 58 countries and had a fundraising target of 80 million dollars for 2017 that was surpassed. The numbers speak for themselves, representing a very small fraction of the amount needed for adaptation and loss and damage worldwide, which is often explained by the nature of the fund and the lack of orientation towards scalability of projects.

Lire la suite « Climate finance negotiations and game theory: how a green equilibrium could not be achieved (Part 2) »

Climate Action, Climate Finance, Climate Politics

Only one

This article was originally published on l’Usine à Gaz
This article is written by Damien Soldadié.

« We only have one planet »

This is the main argument of Emmanuel Macron -speaking of evidence- to organize the One Planet Summit that took place in Paris this week. I was glad when I heard his introduction speech, when I saw the diversity of actors who made the engagement to take part to the transition. I truly hope that the French president still means what he said during his allocution.We are used to the promising speeches of our president, that hide a fiduciary truth, so we need to go deeper and look at what he did and plan to do in the future.


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Climate Finance, Climate Talks, COP23 - Fiji & Bonn

Climate finance negotiations and game theory: how a green equilibrium could not be achieved (Part 1)

This article is divided in 3 parts. Check out the 2nd part here and 3rd part here!
This article is written by Solène Dengler.

Part 1: The lack of climate finance pledges

When studying economics you learn among others about game theory, a field of study that studies strategic decision making in situations of competition and conflict, cooperation and interdependence under specific rules. A “climate dilemma” is often described, derived from the Prisoner’s dilemma by Albert Tucker where the best possible outcome for all parties cannot be achieved given the short term benefit from an individual perspective to quit. The best example of course is the announced US exit from the Paris agreement. While trying to apply these theories to better understand the process of negotiations as an observer, you quickly realise that you lack large amounts of information about preferences of actors, their knowledge, strategic actions they are allowed to make and how each decision influences the outcome. And that while the ice is melting you may only really see the tip of the iceberg.

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Climate Finance, Green Fund, Paris Agreement

Climate funds lost in translation

This article is written by Côme Girschig.

come 3

Climate is a tricky issue on many aspects because philosophers, biologists, journalists, chemists, CEOs, physicians, lawyers, doctors, or writers, all have a different definitions of the matter. Even finance experts joined the game, and their work didn’t make the whole thing simpler.

The first conference I went to, in Bonn, was a workshop on long-term climate finance. Let’s be clear: my economic and finance background has been useless and I rapidly got lost among the acronyms. Proud to master each letter of “UNFCCC”, I got punched in the face by NAPAs, GCF, NAPs, CIFs, MDBs, LDCF, LULUCF, REDD+…

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Climate Finance, Paris Agreement

Consistent modalities for climate action – why climate finance accounting is important

This article is written by Mona Hosseini

Climate finance has an outstanding importance for achieving objectives in the fight against climate change. Climate finance – meaning financial resources from the public but also private sector on the local, national and international level to tackle climate change – is the core condition for mitigation (reduction of GHG emissions) and adaptation (measures to adapt to the changing environment) and hence indispensable (cf. UNFCCC n.y). This is especially the case for countries of the Global South which depend on climate funds enabling them to pursue climate policies (cf. Paris Agreement, Art. 9,3).

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Climate Action, Climate Finance, COP22 - Marrakech, Paris Agreement

After Marrakech: climate finance and the NDCs in the Pacific Islands

This article is written by Mouna Chambon.

An important issue that has been discussed at the COP22 in Marrakech is the allocation of the financial resources required for implementing the NDCs in the Pacific region.
People in Pacific Island Countries (PICs) are disproportionately more impacted by climate change than other regions of the world. While the PICs are standing at the frontline of climate change, they are those that contribute the least to global GHGs emissions.

But as many other Least Developed Countries (LDCs), they suffer from a lack of capital bases and foreign investment for climate action. As a climate justice issue, there has been gradual recognition that developed countries should provide their support in mitigation and adaptation projects. As a result, climate finance has become a central pillar of climate negotiations.

Source :  http://Pacificclimatechange.net

In Marrakech, developed countries reaffirmed the objective adopted in the preamble to the Paris Agreement to jointly mobilise USD 100 billion per year of public and private finance by 2020 for climate mitigation and adaptation in developing countries. However, many challenges still remain in achieving this goal in the Pacific region.

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Climate Finance, Climate Politics

Climate finance: why we need a clear roadmap on public finance

This article is written by Clément Bultheel.

When COP 21 takes place in Paris next year, it will need to send a signal to business, investors, governments and the public that the transition to a low carbon, resilient world is inevitable. A key part of the agreement will include climate finance.

ARTICLE CLEM

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