Climate financing : global imperatives and implications for climate-resilient development in Africa

Abstract

Climate financing is essential to reduce greenhouse gas emissions in both developing and developed countries. It is an essential part of securing a low carbon development future that does not sacrifice urgently needed development, but rests on climate-resilient economic and social systems. Financial support to developing countries in particular is needed for mitigation, adaptation, technology development and transfer, as well as capacity building. The demand for climate financing for developing countries substantially exceeds the existing financial flows from multilateral and bilateral financial sources. Estimates put the required financial support in the tens of billions of dollars. Mobilization of such sums is challenging. Nevertheless, the emergence of assorted climate funds (UNFCCC funds, multilateral and bilateral funds, and carbon markets) provides opportunities to mobilize resources and bridge the current financial gap.