OECD Publishes Climate Finance Recommendations
3 December 2010: The Organisation for Economic Co-operation and Development (OECD) has released the document “Financing Climate Change Action and Boosting Technology Change” as part of a series summarizing the OECD's climate-change related work, and making recommendations to UNFCCC COP 16.
The paper, in acknowledging the difficulties governments face in allocating financing to climate related issues in times of tight budgets, states that using market-based mechanisms can help ease this funding burden and steer investors towards low-carbon development. It says such mechanisms should be combined with increased public funding to research and development, and investments in “immature” renewable technologies, to give impetus and lower risk for private investors.
The paper recommends that development assistance and cooperation should be focused on building capacity and technology transfer, and says methods to enhance transparency and accountability of international financial assistance are needed to increase of trust and programme effectiveness. [The report]