Low-income countries empowered to navigate climate finance maze
New York —The United Nations Development Programme (UNDP) today launched a guidebook on “Catalysing Climate Finance”, advising decision makers in developing countries how to tap into growing environmental finance markets.
The guidebook draws on UNDP’s experience managing one-thousand multimillion dollar climate projects in 140 countries during the last two decades. It contains a step-by-step guidance for identification and implementation of an optimal mix of public policies and funding instruments to raise climate finance.
The report is being offered at a critical moment, when new sources of public finance, such as a Green Climate Fund, are being established or becoming available.
“In the absence of effective capacity building and appropriate advisory services, there’s a significant risk that only a few emerging economies will fully benefit from these positive developments,” said Rebeca Grynspan, UNDP Associate Administrator. “By some estimates around 90 percent of investments in clean energy go to G20 countries and the remaining 10 percent go to the rest of the world.”
Between 2009 and 2010, clean energy sector investments worldwide grew 30 percent to a record US$243 billion. Only about one tenth of investments went into developing economies, which could benefit from greener, less carbon-intensive growth.
Most governments lack the knowledge and capacity to enter the complex and highly technical climate finance landscape where more than 6,000 equity funds and scores of international public funds and carbon markets are active.
“UNDP’s global presence, expertise in capacity building, and extensive development finance experience allow us to help countries in this process, by supporting them to develop capacities to attract and drive investments towards sustainable human development,” said Rebeca Grynspan.
The governments of developing countries face three major challenges when planning a green, low-emission and climate resilient future: gaining access to new and innovative climate finance sources; creating links between climate change strategies and national development objectives; and identifying how to use limited public finance resources to attract private capital.
“Without doubt public funding is a key element in this equation, alone it will be insufficient to transform economies,” said Rebeca Grynspan. “It needs to play a critical role in creating an environment conducive to catalysing larger scale investment.”
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