Financing Climate Change Action

Limiting climate change to 2°C requires a major shift in investment patterns towards low-carbon, climate resilient options. Scaled-up public funding and financial mechanisms will be a motor of change; they can leverage private climate finance and investment and support domestic policy reform. A central challenge is to avoid “lock-in” to high-emission infrastructure and increased vulnerability in the way we develop. The OECD works with governments to promote good practice to scale up and better target public and private finance to support climate-friendly investment. Check out our Events; Papers & Publications.

 THE LATEST

Expert meeting: Mobilizing Private Investment in Low-Carbon, Climate-Resilient Infrastructure (6 February 2012)

Financing Climate Change Action (Policy Brief)

Towards a Policy Framework for Low-Carbon, Climate-Resilient Infrastructure Investment (consultation draft of a forthcoming OECD report– your comments are welcome!)

Mobilizing Climate Finance, prepared at the request of G20 Finance Ministers. Background reports/Annexes (World Bank site)

Defining and Measuring Green Foreign Direct Investment (FDI): An Exploratory Review of Existing Work and Evidence

The Role of Pension Funds in Financing Green Growth Initiatives (2011). Related policy outline: Institutional Investors and Long-term Investment.

KEY POLICY AREAS

	Climate Finance: Sources & Architecture		Catalysing Private Climate Finance
	Tracking Climate Finance		Financing Adaptation

permanent url: www.oecd.org/env/cc/financing

  RECENT PUBLICATIONS

Financing Climate Change Action (2011 policy brief) gathers key messages and recommendations from recent OECD work.

Monitoring and Tracking Long-Term Finance to Support Climate Action (OECD working paper, May 2011)
Barbara Buchner (CPI), Jessica Brown (ODI) and Jan Corfee-Morlot (OECD). This report highlights the relevant information that needs to be tracked in order to build a comprehensive MRV system for climate finance, proposing both improvements to current reporting and tracking systems as well as new reporting approaches for a more robust and inclusive MRV system.

The Role of Pension Funds in Financing Green Growth Initiatives (OECD working paper, 2011)

Raffaele Della Croce, Christopher Kaminker, Fiona Stewart
It is estimated that transitioning to a low-carbon, climate resilient economy will require significant investment and consequently private sources of capital on a much larger scale than previously. With their USD 28 trillion in assets, pension funds - along with other institutional investors - potentially have an important role to play in financing green growth. This paper examines some of the initiatives currently under way around the wherein pension funds help finance green growth projects.

Sources of Finance, Investment Policies and Plant Entry in the Renewable Energy Sector (2011)

Margarita Kalamova, Chris Kaminker, Nick Johnstone
This report looks at the full array of public policies promoting investment in the renewable energy sector and their impact on plant entry into the market, with case studies focussing on Germany, the U.S.A. and Australia. It examines differing risk/return expectations across stages of the investment continuum (from R&D through to mergers and acquisitions) and the financial structures employed at each stage.

Cities and Carbon Market Finance: Taking Stock of Cities’ Experience with Clean Development Mechanism (CDM) and Joint Implementation (JI) (2010): Full report, Executive Summary.
Christa Clapp, Alexia Leseur, Olivier Sartor, Gregory Briner, Jan Corfee-Morlot. This paper reviews ten in-depth case studies of urban projects proposed and operating within the realm of JI and the CDM.

Cities and Climate Change (2010) 
A major OECD publication with a chapter on the new challenges and opportunities that climate change creates for urban finance.

SPOTLIGHT ON EVENTS

2011

November-December: OECD participates in COP17 Durban

2011

10 November: Tracking Climate Change Finance Flows from the Private Sector and Multilateral Development Banks (IEA, Paris). Co-organised by CCXG and DAC.

2011

7 November: Catalysing Investment in Low-Carbon, Climate-Resilient Growth (OECD, Paris). Summary report.

2011

September: African Climate Change Finance and Development Effectiveness Dialogue (Nairobi)

2011

September Global Forum on Environment/CCXG Seminar on MRV & Carbon Markets (IEA, Paris)

2011

Joint OECD/UNFCCC Side Event on MRV of Climate Support (Bonn)

2011

March Seminar on MRV and Carbon Markets: a CCXG/Global Forum for Environment (Paris)

2010

How to Ensure the Necessary Finance Flows (OECD Side Event at COP16) (Cancun, Mexico)