Before the inception of Fast-Start Financing and talks of a Green Climate Fund were even underway, climate finance was steadily flowing into developing countries by way of multi-lateral and bilateral financing mechanisms from developed countries. Europe in particular has been at the forefront, helping to finance a number of important actions in developing countries that reduce greenhouse gas emissions while also assisting developing nations to gain access to energy, improve energy efficiency, and reduce environmental impacts.
As talks of the Green Climate Fund steadily progress – Ministers from Chile and Costa Rica, and climate leaders from the European Commission gather today in Durban with CCAP-Europe to announce the release of a CCAP-Europe’s new report, “Climate Finance Works” which highlights the success of European climate finance. The report depicts 40 success stories of low-carbon development activities, funded by European governments in 27 developing countries around the globe (including the BASIC – Brazil, South Africa, India, and China and LDC countries). The report highlights myriad of projects across the transportation, renewable energy, energy efficiency and sustainable forestry/agriculture sectors.
See Climate Finance Works report here.
The stories illustrate the importance of financing to support implementation of climate adaptation/mitigation projects. Financing has been used to encourage purchase of lower emitting technologies and to help build the domestic capacity needed to create the conditions required for private sector participation. For instance, Germany’s BMU helped Vietnam formalize its wind sector and is establishing a new legal framework for renewable energy generation and on-grid connectivity.
What can be certain is that financing for climate mitigation is growing, with participation by both the public and private sectors. Last year climate finance totaled USD 97 billion globally (56% derived from the private sector). Bloomberg New Energy Finance recently announced that Annex I countries are on track to deliver the full Fast-Start Financing amount – so far $27.3 billion of the $30 billion required has been pledged. However, stepped up funding is needed to ensure support for the many NAMAs now under development in many emerging economies.
Experience has shown that climate finance works, and the European Member States have been central in building and maintaining momentum in delivering climate finance, illuminating the path towards global sustainable economic growth and development.