Shifting the global economy onto a 2C trajectory implies a rapid shift of existing investment patterns and far reaching transformation in technology, infrastructure and practices, including the adoption of new financing and business models. If we are to achieve the scale and pace of investment required, a change is needed in how climate finance is used for catalysing and mobilising public and private sector flows of investment.
E3G’s International Climate Finance Programme is focusing on shaping thinking and initiatives that are influencing the evolving international ecosystem. Drawing on in-country work, this includes a specific focus on how to improve access to international sources of climate finance as well as the innovative use of risk-sharing instruments for leveraging different forms of finance – public and private, and both domestic and international.
Since 2011 this has involved advisory roles: to Board members on design of the Green Climate Fund and the Fund’s Private sector Advisory group; to the UNFCCC on long-term climate finance; on the evolution of the UK’s Capital Markets Climate Initiative; and working with the OECD Development Assistance Committee Environment on the tracking of climate finance.
We have also provided inputs on MRV to the UNFCCC’s Standing Committee on Finance and developed the narrative for good practise in mobilising investments for Green Growth under the GGBP initiative. In collaboration with E3G’s climate diplomacy team, we developed thinking around the role of finance within a 2015 Climate Agreement as part of the Act2015 consortium. We also work with several leading institutions on the effectiveness of climate finance, as well as on the role of development finance institutions in deploying climate finance for transformational change.