Innovative finance COP27
N. | Question | Answer | Validated Timestamp |
---|---|---|---|
Ex | What's the evidence that climate finance support for Mitigation and Adaptation action remains particularly insufficient within developing economies? | Even though richer nations agreed to channel $40bn annually in adaptation finance to developing countries by 2025, actual projections estimate that the total of adaptation finance likely to be achieved in 2025 should only be around $22bn2. [1] | |
Have a different answer?Type it here | |||
1 | How much needs the climate finance flows to increase for the transition to net-zero-emission and resilient economy by 2050? | the climate finance flows still need to be increased by ~200% to ~400% from now on to reach $1.6tn to $3.7tn per year, which is the amount necessary to transition to a net-zero-emission and resilient economy by 2050, according to UNFCCC Standing Committee on Finance.[2] | |
2 | What's the real growth of climate finance flows from 2013-14 to 2017-2018? | Climate finance flows have grown by ~5% from 2013-14 to 2017-18, reaching $862bn. [3] | |
Have a different answer?Type it here | |||
3 | Why mobilization of the $100bn per year by 2020 which was pledged in 2009 has not been met, and might not be delivered before 2023. | According to OECD, only $83bn were channelled to developing countries in 2020.[4] | |
Have a different answer?Type it here | |||
4 | What's the evidence that voluntary carbon markets are gaining in traction? | The global size of voluntary carbon markets (on which stakeholders sell their carbon credits on a voluntary basis) quadrupled within one year, reaching $2bn in 2021. [5] | |
Have a different answer?Type it here | |||
5 | Is there a code of conduct and guidance for voluntary carbon markets? | A few private initiatives have recently been launched to provide a code of conduct and guidance on the use of carbon credits (e.g. the Voluntary Carbon Market Integrity Initiative).[6] | |
Have a different answer?Type it here | |||
6 | How much have voluntary carbon markets grown from 2020 to 2021? | The global size of voluntary carbon markets quadrupled within one year, reaching $2bn in 2021.[7] | |
Have a different answer?Type it here | |||
7 | What shall solutions focus on to assist developing countries with climate finances? | Solutions identified shall ultimately assist developing countries in accessing qualitative climate finance while alleviating their sovereign debt burden, and should be focusing on scaling the use of innovative climate finance tools and mechanisms (e.g. debt-for-climate swaps, blended finance mechanisms, etc.).[8] | |
Have a different answer?Type it here | |||
8 | What's the evidence that Green Bonds are considered an achievement in Climate Finance? | Issuance of total green bonds reached $259bn globally in 2019 [9], while green bonds in developing countries more than doubled in 2021 to a record $95bn (from $41bn in 2020) [10]. | |
Have a different answer?Type it here | |||
9 | What's the evidence that the issuance of Environmental Impact Bonds is considered embryonic? | the first EIB was issued in 2016 by Quantified Ventures with DC Water to fund a $25m green stormwater infrastructure project, and only 4 EIBs has been issued to date [11]. | |
Have a different answer?Type it here | |||
10 | What's the evidence that Private Philanthropy for financing climate-positive projects is still insufficient? | Philanthropic giving represents a potential source of financing for climate positive projects, but its use remains insufficient, as granting for climate change mitigation globally reached $6-10bn in 2020 (+14% vs 2019)[12], corresponding to ~2% of total global philanthropic giving. | |
Have a different answer?Type it here | |||
11 | Which are the tools and financing mechanisms that have already been set up to improve countries' access to climate finance and catalyse investments into climate action? | Green Bonds, Environmental Impact Bonds, Debt-for-climate swaps, Blended finance, The role of IMF, Voluntary Carbon Markets and Private philantropy.[13] | |
Have a different answer?Type it here | |||
12 | How can a hub/marketplace for climate finance encourage the creation of climate finance platforms? | As developing countries face hardships in managing funding procedures quickly and finding the right set of partners to access to climate finance, creating a global hub/marketplace, would enable to facilitate the meeting of supply (e.g. public and private actors from developed countries, MDBs, philanthropies) and demand (e.g. developing countries) of climate finance and enable to accelerate and scale the creation of climate finance platforms. [14] | |
Have a different answer?Type it here | |||
13 | Which are the roadblocks that hinder the global expansion of innovative climate finance tools and mechanisms? | - The limited availability of at-scale, bankable projects to invest in (i.e. projects with a potential to generate measurable, positive returns in a given period of time).
-The absence of a global standardized policy framework as well as a global marketplace for climate finance deals / activities, which can make funding procedures difficult to access and manage for both debtors and creditors. [15] |
|
Have a different answer?Type it here | |||
14 | Where does come from climate finance for developing countries? | According to OECD, $83bn were channelled to developing countries in 2020, among which: 82% came from public financing (38% bilateral and 44% multilateral), 16% from private investors and the remaining 2% from export credits. [16] | |
Have a different answer?Type it here | |||
15 | In which form is climate finance channelled to developing countries? | Most of the climate finance flows took the form of public loans (58% of total flows), enhancing developing countries’ debt burdens, whereas only 21% were channelled through grants from bilateral and multilateral development banks.[17] | |
Have a different answer?Type it here | |||
16 | In which type of project is used climate funding channelled to developing countries? | The fundings have been primarily used to fund climate projects in the field of energy (32% of total finance flows), transport (14%), agriculture, forestry, & fishing (9%) and water supply & sanitation (8%) [18]. | |
Have a different answer?Type it here | |||
17 | What's the evidence that actual finance flows reported by developed countries is significantly higher than actual climate-specific net assistance? | Oxfam notably discounts funds declared which are not actually targeting climate action, and focuses on grant equivalence, in order to estimate the actual financial transfer to developing countries once all financial repayments are taken into account (e.g. loan repayments, interest, administration expenses, etc.), concluding that actual finance flows reported by developed countries is significantly higher than actual climate-specific net assistance [19]. | |
Have a different answer?Type it here | |||
18 | What's the evidence that the instrument used to finance climate action in developing countries is debt? | Most of the climate finance flows took the form of public loans (58% of total flows), enhancing developing countries’ debt burdens.[20] | |
Have a different answer?Type it here |