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OECD/IEA Climate Change Expert Group Papers

This series is designed to make available to a wider readership selected papers on climate change issues that have been prepared for the OECD/IEA Climate Change Expert Group (CCXG). The CCXG (formerly called the Annex I Expert Group) is a group of government delegates from OECD and other industrialised countries. The aim of the group is to promote dialogue and enhance understanding on technical issues in the international climate change negotiations. CCXG papers are developed in consultation with experts from a wide range of developed and developing countries, including those participating in CCXG Global Forums.

The full papers are generally available only in English.

The opinions expressed in these papers are the sole responsibility of the author(s) and do not necessarily reflect the views of the OECD, the IEA or their member countries, or the endorsement of any approach described therein.

English

Scaling up and replicating effective climate finance interventions

There is widespread recognition that climate finance needs to be scaled up from its current levels. However, there is no clear view on how developed countries can efficiently and effectively mobilise further climate finance to meet the needs of developing countries. Developed countries have committed to mobilise USD 100 bn per year of climate finance for developing countries by 2020 from a variety of sources. These include both public and private finance, thus the private sector is likely to play a significant role in the mobilisation of climate finance to meet this commitment. This paper explores how scale-up and replication of effective climate finance interventions efficiently mobilise private climate finance. The interventions examined in the paper have already been, or are being, scaled up or replicated. Scaling-up and replication of such climate finance interventions could be an efficient way to increase the private sector’s interest in mobilisation of climate finance, and thus to make progress towards the USD 100 bn per year goal by 2020. The paper draws lessons from selected mitigation and available adaptation case studies at project- and programme-levels as well as from experience with international climate funds. The paper examines three key aspects needed to scale up and replicate climate finance. The first is the institutional structures and decision-making framework of the climate finance source, its aims, the scale at which it operates and how barriers to scaling-up and replication have been addressed. Second, the paper explores how demonstrating effective low-carbon, climate-resilient technologies and systems can facilitate scale-up and replication. Third, the paper discusses the influence of policies to enhance domestic enabling environments for scaling-up and replication.

English

Keywords: institutional frameworks, replication, enabling environments, scaling up, mobilise, climate funds, climate finance
JEL: Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; G23: Financial Economics / Financial Institutions and Services / Non-bank Financial Institutions; Financial Instruments; Institutional Investors; F21: International Economics / International Factor Movements and International Business / International Investment; Long-Term Capital Movements; F65: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Finance; Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth; F64: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Environment; F55: International Economics / International Relations, National Security, and International Political Economy / International Institutional Arrangements; F35: International Economics / International Finance / Foreign Aid; O2: Economic Development, Innovation, Technological Change, and Growth / Development Planning and Policy; F63: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Economic Development
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