Tracking private climate finance, together with flows of public finance, is a key task in monitoring progress in the international effort to address climate change. Yet, there are significant data, methodological and knowledge gaps on climate-related private finance, and available information is scattered. Further research and better co-ordination of on-going initiatives are therefore required to improve their identification, measurement or estimation and reporting.

The Research Collaborative is an open network, co-ordinated and hosted by the OECD, of governments, research institutions and international finance institutions. The goal is to partner and share best available data, expertise and information to advance policy-relevant research in a comprehensive and timely manner. The project is designed to serve as a co-ordinating platform for identifying research priorities and gaps, sharing information, weaving a coherent narrative across what would otherwise be disparate research outputs, as well as communicating results to raise awareness in this area.

latest publications 

19 March 2019
Release of “Tracking finance flows towards assessing their consistency with climate objectives”

3 November 2017
Release of “Private finance for climate action: Estimating the effects of public interventions

Achieving a low-GHG development requires making finance flows consistent with this objective. To measure progress to date and inform future public action in this area, this working paper calls for further efforts to track gross primary investments flows in new infrastructure and equipment and the refurbishment of such assets, as well underlying sources of finance.

As a first step to better cover the targeted scope, countries could undertake pilot studies, making use of official, commercial and country-specific data sources as well as estimation methods.

The proposed scope focuses on tangible fixed assets with a direct and significant impact on GHG emissions. It complements existing finance tracking initiatives, which mostly cover secondary transactions relating to stocks
of publicly-traded financial assets (equities and bonds).

This Policy Perspectives summarises work conducted since 2013 on estimating publicly-mobilised private finance. The brochure first introduces a typology of the potential effects that public interventions and enabling conditions have on private finance. It then provides an overview of the state of play on methodologies:

  • Progress made, in particular by the OECD DAC, on developing methodologies and collecting data to measure mobilisation by public finance instruments.
  • An overview and comparison of three types of approaches (cash flow, consultation and econometrics-based) for estimating mobilisation by policies and capacity building.

On both aspects, the brochure puts forward possible next steps for improving data availability and methodologies.

Research Collaborative cover page Tracking Finance Flows‌ ‌ Research Collaborative HD Cover page Brochure 2017 ‌

********************************

********************************

31 August 2017
Release of “Estimating publicly-mobilised private finance for climate action: A South African case study”

30 August 2017
Release of “Amounts Mobilised from the Private Sector by Official Development Finance Interventions

This OECD and TIPS working paper estimates and analyses publicly-mobilised private finance for climate action in South Africa (2010-2015). The mobilisation effect of public finance is estimated through an analysis of co-finance data. A pilot-methodology (the “investor perspective”) then expands the analysis to incorporate the role of financial support provided by policies in the renewable energy and energy efficiency sectors.

Results suggest that, in the South African context domestic public actors play a key mobilisation role by providing financial support through policies and, to a lesser extent, project-level co-finance. However, further methodological work is required to also take into account the effect of upstream public interventions such as public finance intermediated through funds and credit lines, capacity building activities, non-monetisable policies.

This working paper presents the results from the 2016 survey conducted by the OECD Development Assistance Committee to measure amounts mobilised from the private sector in 2012-2015 by official development finance interventions, including for climate-related activities. The survey covers guarantees, syndicated loans, shares in collective investment vehicles, direct investment in companies, credit lines.

Results indicate that USD 81.1 billion was mobilised from the private sector in 2012-2015, mainly through guarantees (44% of the total). They also show that most of the mobilised finance supported projects in middle-income countries (77%), especially in Africa which was the main beneficiary region (30%).

 

Research Collaborative cover page Estimating publicly mobilised private finance   Research Collaborative cover page Amounts Mobilised from the Private Sector