Investment flows and finance

Adaptation to the effects of climate change requires a global response and an unparalleled expression of solidarity among peoples. Significantly increased financing, along with assistance in capacity-building, will need to be provided to developing nations by developed countries. The investment needed to help nations adapt to climate shocks is expected to rise to tens of billions of dollars by 2030.

The financial mechanism of the United Nations Framework Convention on Climate Change and the Kyoto Adaptation Fund of the Kyoto Protocol are important pieces of the puzzle and should be scaled up substantially given the magnitude of the need. Assistance should be concentrated in sectors where countries are already highly dependent on external support, for instance in agriculture and health among the least developed countries, coastal infrastructure among small island States and other areas that are highly vulnerable to sea-level rise.

Investments flows and financial assistance should also be directed to technology transfer, for example of drought-resistant seeds and water-saving technologies, to improved energy efficiency, energy conservation, and renewable energy sources.


Case studies

  • 2007 - Financing Energy-Efficient Street Lighting in India
    Street lighting represents a significant proportion of energy consumption in India, and the burden of providing the service falls on the electricity boards of each state. In several municipalities, th...
  • 2007 - Securing Financing for RE/EE Projects in Southern Africa through Gold Standard CDM
    Substantial challenges exist for the commercialisation of smaller RE/EE projects, with financing often cited as a major barrier. This despite there being a significant demand for African Gold Standard...
  • 2006 - Supportive Government Framework Allows for Trade Union Input into Kyoto Mechanisms
    A decision by the Government of Belguim in July 2005 ensures that social and sustainability criteria are considered when funding 'flexible mechanisms' for meeting its Kyoto commitments. It has ins...
  • 2006 - Development of Wind Energy Industries in India
    Where local governments have encouraged the production of renewable energy, their communities have realized economic benefits and secured their energy supply, further attracting new industrial develop...
  • 2006 - Green Investment Scheme (GIS)
    The Study has been prepared by the World Bank upon request of the Government of Bulgaria. It examines the various issues surrounding the "Greening of Assign Amount Units (AAUs)" with a view to pro...
  • 2006 - Adaptation to climate change
    In 2004, the Danish Ministry of the Environment published the leaflet "Adapting to the Climate of the Future". Previously, the Danish Ministry of the Environment was focusing only on the need to reduc...