Financing
Mobilizing Capital
— Climate financing is one of the most important aspects of the world’s efforts to address the climate change challenge. It is critical to catalysing efforts in developing countries to strengthen climate resilience, curb greenhouse gas emissions and support sustainable development. Timely climate financing can also strengthen trust among countries and generate progress in the negotiations taking place within the context of the
United Nations Framework Convention on Climate Change (UNFCCC)
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Raising capital — At the United Nations Climate Change Conference in Copenhagen in 2009, industrialized countries set a goal of mobilizing $100 billion per year by 2020 to support mitigation and adaptation activities in developing countries. The Secretary-General’s High Level Advisory Group on Climate Financing found that raising US$100 billion per year is challenging but feasible. Read the report .
Variety of sources — Funding will need to come from a wide variety of sources, public and private , bilateral and multilateral, including alternative sources of finance, the scaling up of existing sources and increased private flows. Grants and highly concessional loans are crucial for adaptation in the most vulnerable developing countries, such as the least developed countries, small island developing States and Africa. Learn more about climate related financial resources, programs and funds .
Carbon pricing
— Strong commitments to domestic mitigation and the introduction of new public instruments based on carbon pricing are important for mobilizing climate financing, both public and private. Instruments based on carbon pricing are particularly attractive because they both raise revenue and provide incentives for mitigation actions.
Learn more about mechanisms to help reduce emissions
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Quick Fact — Estimates show that returning global energy-related CO2 emissions to 2005 levels by 2030 would require a large shift in investment patterns, though the net additional investment needed ranges from “negligible” to between 5 and 10 per cent. More facts and findings.
