Title page
Contents
Acknowledgements 3
Abstract 4
Résumé 5
List of acronyms 8
Executive Summary 10
1. Introduction 16
2. Snapshot of finance needs and sources for climate action in developing countries 18
2.1. Investment and financing needs for climate action 18
2.2. Sources of finance for climate action 22
2.2.1. Typology, roles and limitations of different actors and instruments 22
2.2.2. Illustrative overview of existing sources of finance for climate action 25
3. Options for reflecting sources, actors, and qualitative elements in the NCQG 32
3.1. Preamble 33
3.2. Cluster 1: International support for climate action 34
3.2.1. Bilateral public finance 35
3.2.2. Multilateral public finance 37
3.2.3. Non-commercial finance from non-Party stakeholders 38
3.2.4. Support for capacity building and technology transfer by Parties providing support and, potentially, non-Party stakeholders 39
3.2.5. Qualitative considerations that can help further strengthen the provision of public finance 40
3.3. Cluster 2: Private finance mobilised and catalysed for climate action 47
3.3.1. Private climate finance mobilised by public finance interventions 48
3.3.2. Private finance catalysed by other public interventions 50
3.4. Cluster 3: Domestic efforts by all Parties 51
3.4.1. Incentives for public climate budgeting and spending 52
3.4.2. Incentives for strengthened enabling environments for climate-related investments 53
3.4.3. Incentives for the use of innovative instruments to raise further resources domestically 54
4. Potential indicators for different elements of the NCQG 56
4.1. Types of indicators to track progress towards different elements 56
4.2. Data sources for tracking progress towards the NCQG 60
References 65
Table 1. Overview of possible options for reflecting different elements in the NCQG 13
Table 2.1. Overview of differences and commonalities in methodological approaches of selected providers of climate investment and financing needs estimates 19
Table 3.1. Possible typology of public interventions having an effect on private finance 48
Table 4.1. Selection of possible indicators for different NCQG elements 58
Table 4.2. Overview of reporting requirements under the Paris Agreement ETF 60
Figure 2.1. Sample estimates and uncertainty ranges of annual climate finance needs in developing countries by 2030 21
Figure 2.2. Overview of sustainable development finance actors and instruments 22
Figure 2.3. Overview of current main sources for global climate finance by actors and region 26
Figure 2.4. Illustrative examples of estimated financing sources for climate change mitigation and adaptation in different geographies 29
Figure 2.5. Clean energy investments in developing countries (excluding China) by sector and region (LHS) and sources of finance (RHS) in the NZE Scenario 30
Figure 3.1. Visualisation of the possible clusters and elements of the NCQG 33
Boxes
Box 2.1. Selected examples of domestic policy actions towards policy and enabling conditions more conducive to private finance for climate action 27
Box 2.2. Zoom in on financing needs and sources for clean energy in developing countries 30
Box 3.1. Advantages and challenges of sub-goals 46