Strategic Use of Climate Finance to Maximize Climate Action : A Guiding Framework
Achieving the goals of the Paris Agreement requires countries to finance transformational changes with significant investments in both mitigation and resilience-building. International public climate finance with some degree of concessionality (i.e...
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| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/879251537779825585/Strategic-Use-of-Climate-Finance-to-Maximize-Climate-Action-A-Guiding-Framework http://hdl.handle.net/10986/30475 |
| Summary: | Achieving the goals of the Paris
Agreement requires countries to finance transformational
changes with significant investments in both mitigation and
resilience-building. International public climate finance
with some degree of concessionality (i.e., climate finance)
makes it possible to provide grants or loans with reduced
interest rates and/or longer grace or repayment periods.
Given the scarcity of climate finance, this paper proposes a
framework for determining the appropriate degree of
concessionality for a program/project, and for prioritizing
programs/projects for climate action. To maximize the impact
of climate finance, the degree of concessionality allocated
to a program/project should be equal to what is needed to
overcome the identified barriers to implementation and make
the program/project viable. In parallel, the framework
prioritizes programs/projects that are ambitious and
transformational. Ambitious projects contribute
significantly to achieving the objectives of the Paris
Agreement. A program/project is transformational if it
meaningfully reduces barriers to implementation for future
programs/projects that will decrease emissions or boost
resilience. The paper illustrates how the three dimensions
(i.e., barriers to implementation, ambitious, and
transformational) can be qualitatively assessed at four
levels for a given mitigation or resilience-building
program/project and recommends future work to operationalize
the framework into decision-making processes. |
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