Practical Methods for Assessing Private Climate Finance Flows

image of Practical Methods for Assessing Private Climate Finance Flows

In spite of the climate finance commitment by the developed countries to mobilise jointly 100 billion USD per year by 2020 to address the needs of developing countries from a wide variety of sources, there is no clear agreement on the types of funds that might count as mobilised by developed countries and what private finance flows could be considered as mobilised for climate action in developing countries. This study identifies ten considerations that are key to estimating mobilised private climate finance. An example methodology is proposed for tracking mobilised private investment and the methodology is tested on three Nordic case studies. Through the further refinement of methodologies, it should be possible to develop common systems for M&E of finance enabling a clearer understanding of the finance landscape and the effectiveness of interventions for mobilising private investment.



Tracking mobilised private climate finance

Developed countries have committed to mobilise 100 billion USD annually in long-term climate finance to address the needs of developing countries by 2020. However, recent studies show that the commitments made under the UNFCCC, and the current scale of finance, are not enough to address the mitigation and adaptation needs of developing countries. While estimates of the scale of climate financing needs vary substantially, depending upon the assumptions and methodologies used, current estimates of the costs of addressing climate change in developing countries alone range from 0.6 to 1.5 trillion USD per year (Nakhooda, 2012; Montes, 2012). These estimates are 5–10 times higher than the prospective annual flows from developed and developing countries under the UNFCCC agreements, and 3–5 times higher than estimates by the Climate Policy Initiative (CPI) of the current global climatefinance flow in 2010/11 of 364 billion USD, of which two-thirds is coming from the private sector (Buchner, et al., 2012a).


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error