Financing Climate Change

The OECD is ready to assist countries in their efforts to find lasting solutions to finance action on climate change, building on the long-standing work of the organisation to share country experiences and identify lessons learnt and policy recommendations for good practice:

Financing Climate Change Action, Supporting Technology Transfer and Development. Key messages and recommendations from recent OECD work (8-page booklet)

The OECD works with government representatives from finance ministries, environment ministries and development co-operation agencies, as well as with other international organisations on key issues concerning financing climate change. We are examining key questions on post-2012 financial architecture:

• Overall financial architecture: What are the goals and objectives of financial support for climate action? How to track relevant streams of public finance and monitor/assess progress in a transparent and accurate manner?
• Securing necessary financing flows: How much international public financing is needed? How to reliably generate sufficient financing (public and private) for climate-friendly investments?
• Governance of funds and experience to date: What goals of public finance and how to use limited public finances in an environmentally-effective, economically-efficient, and equitable manner? Priorities for disbursement and eligibility for funding?

OECD work on financing climate change, and other documents prepared recently for OECD meetings by partner organisations, can be found below:

I. Overall financial architecture:

• Negotiations on financing issues under the Ad-Hoc Working Group on Long-term Cooperative Action: an overview (UNFCCC Secretariat)
• Financing Climate Change Mitigation: Towards a Framework for Measurement, Reporting and Verification (OECD/IEA)

II. Securing necessary financing flows:

• New & Innovative Funding for Climate Change, excerpt from Carbon Finance in Africa (Overseas Development Institute/Africa Partnership Forum)
• Making the Most of Public Finance for Low-Carbon Growth: Experience of Multilateral Development Agencies in Leveraging Resources (A. Huhtala & P. Ambrosi, World Bank)
• Measuring Aid Targeting the Objectives of the United Nations Framework Convention on Climate Change (OECD)
• Financing Mechanisms to Reduce Emissions from Deforestation (OECD/IEA)

III. Governance of funds:

• Policy Statement on Integrating Climate Change Adaptation into Development Co-Operation (from May 2009 Joint High-level Meeting of OECD DAC and EPOC)
• Integrating Climate Change Adaptation into Development Co-operation: Policy Guidance (OECD) 
• Climate Change & Development: Key Principles to Inform Climate Change Financing (OECD Factsheet)
• Financing Energy Efficiency - Recent Experiences (IEA)
• Linking Mitigation Actions in Developing Countries with Mitigation Support: A Conceptual Framework (OECD/IEA)
• Reporting and recording GHG mitigation commitments, actions and support in a post-2012 climate framework (OECD/IEA)
• Matching mitigation actions with support: key issues for channelling support (OECD/IEA) 

IV. Other background documents & related work:

• The Economics of Climate Change Mitigation: Policies and Options for Global Action beyond 2012 (OECD 2009)
• Economic Aspects of Adaptation to Climate Change: Costs, Benefits and Policy Instruments (OECD)
• Ministerial Conclusions from June 2009 OECD Meeting of Council at Ministerial Level on Green Growth (OECD)
• The Economics of Climate Change Mitigation: How to Build the Necessary Global Action in a Cost-effective Manner (OECD Policy Brief)
• Investment and Climate Change project (joint ENV & DAF)

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