Finance for climate action: scaling up investment for climate and development

Abstract

This paper follows from the logic of delivering on the goals of the Paris Agreement and the Glasgow Pact. The first part (Sections 1– 3) focus on this purpose and the necessary investment and actions, drawing on earlier work on the analysis of investments by members of the group and others. The second part (Sections 4–9) is about the scale and nature of the different forms of finance that are necessary for this investment and how they complement each other. Section 10 is on how the framework and the key elements described can be taken forward through our systems for international collaboration, while Section 11 concludes with overall next steps. The paper is intended to provide a framework for finance for climate action covering the overall needs for the comprehensive approach embodied in the Paris Agreement and UNFCCC. All the elements are necessary and urgent; it is a complementary and mutually supportive package. Most of the actions must start now; it is the science and the world’s perilous condition that set the urgency and timing. The paper also looks ahead to the coming decade and beyond. We do not attempt to provide great detail on every element of the package, but we are clear that there is a practical way forward on each.