CCXG Paper Focuses on Mobilizing Climate Finance
May 2014: The Organisation for Economic Co-operation and Development (OECD)/International Energy Agency (IEA) Climate Change Expert Group (CCXG) has published a paper, titled “Scaling up and Replicating Effective Climate Finance Interventions,” which considers how to mobilize private climate finance through the scale-up and replication of climate finance interventions.
The paper notes the need for increased climate finance as well as for commitments by developed countries to mobilize US$100 billion of climate finance per year by 2020 to meet developing country climate-related needs. It highlights that one way to mobilize such finance is by scaling up and replicating effective climate finance interventions, defined as public interventions (such as capacity building and regulatory instruments) used to mobilize private finance that supports climate change mitigation, climate change adaptation activities, or both. It then examines examples of interventions that have been scaled up or replicated.
The paper focuses specifically on: how the design of climate finance institutional structures can influence replicability and scalability of interventions; how the demonstration of successful climate-friendly technologies and systems, as well as financial instruments, can facilitate scaling-up and replication; and how policies aiming to enhance enabling environments for scaling-up and replication can influence climate finance interventions.
It concludes by highlighting the importance of institutional structures and enabling environments, among other things. It underlines that public interventions, when used in conjunction with other environmental policy instruments, such as regulations, can help mobilize further climate finance. The paper gives examples of a range of public interventions such as developing capacity, raising awareness and providing risk-management guidance and tools. It stresses that there is no “one-size-fits-all” intervention that would be suitable for every situation. [Publication: Scaling up and Replicating Effective Climate Finance Interventions]