OECD Climate Change

Aligning finance and investment for climate action

We need to make finance consistent with low-emissions pathways and climate-resilient development in order to achieve the goals of the Paris Agreement. This means aligning public finance with climate and economic development objectives, and enabling policy and regulatory environments that can leverage private finance in direct support of climate goals. 

Tracking climate finance is also key to building trust and accountability in the international efforts to address climate change. OECD work on tracking climate finance informs the effective design of public interventions to mobilise finance for climate action, notably in support of action in developing countries.

Climate finance

Climate finance provided and mobilised by developed countries is a key issue in global discussions.

The OECD provides insights on the evolution of the following four components of climate finance: bilateral public climate finance, multilateral climate finance (attributed to developed countries), climate-related officially supported export credits, and private finance mobilised by developed countries public finance interventions. 

Driving transformative change in the financial system

Finance mechanisms

Blended finance

Blended finance is an innovative approach for donor governments, development co-operation agencies, philanthropies and other stakeholders, to attract commercial capital towards projects that contribute to sustainable development, while providing financial returns to investors.

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Environmental, Social and Governance investing

A growing number of institutional investors and funds now incorporate various ESG investing approaches, spurred by shifts in demand for better alignment between societal values and long-term financial value.

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Institutional investment

Building green is imperative to achieve global climate and development commitments. Private investment in particular is needed to bridge the infrastructure investment gap, given institutional investors’ large pools of long-term capital. Where do investments stand today?

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