Mobilising Finance for Climate Change Mitigation and Adaptation
There is broad consensus that the magnitude of investments needed to achieve the climate goals agreed upon in the Paris Agreement will not be financed by scarce public funds but that additional resources must be mobilised.
Developing countries in particular face enormous challenges in mobilising financial resources and using funding for the necessary climate change adaptation and mitigation measures. The mitigation of greenhouse gas (GHG) emissions, the preservation of natural carbon reservoirs and the adaptation to the impacts of climate change all require financial resources and investors – to build solar power systems and wind turbines, for energy-efficient building refurbishment, to expand public transport systems, for reforestation, to strengthen flood protection measures, to set up protected areas and much more.
At the UN Climate Change Conference in Paris, developed countries therefore reaffirmed their strong commitment to jointly mobilise US Dollar 100 billion yearly by 2020 in climate finance. Delivering the Paris Agreement also requires making financial flows consistent with a pathway towards low GHG emissions and climate-resilient development. Hence, longterm infrastructure investments need to be aligned with the Paris Agreement and a mainstreaming of climate considerations in all infrastructure sectors will be necessary.
Since 2008, the International Climate Initiative (IKI) of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) cooperates with partner countries in the practical implementation of climate change mitigation and biodiversity conservation measures. Since its establishment, it has launched more than 730 climate and biodiversity projects. The total project volume since 2008 amounts to EUR 3.6 billion (October, 2019).
IKI projects and programmes are carried out by a broad range of implementing organisations. Within IKI a portfolio of 43 projects with a BMU funding volume of around EUR 395 million primarily focuses on the financial sector and the mobilisation of climate-friendly investments. These projects for instance pilot innovative financial instruments in the form of publicprivate partnerships and provide support to develop project pipelines as well as sustainable business models ready for finance. IKI also supports countries to receive and administer climate finance in an effective and transparent manner, in order to successfully access funds of the Green Climate Fund through the GCF-Readiness Programme, for instance. Aside from
IKI, BMU also funds the Global Energy Efficiency and Renewable Energy Fund (GEEREF), a fund to mobilize private investors especially for renewable energy projects. IKI Supports Approaches on Shifting Financial Flows In 2015, the Paris Agreement defined the global objective of making financial flows consistent with the commitment to limit global warming to well below 2°C. To this end, IKI supports an innovative approach implemented by the 2° Investing Initiative allowing policymakers to measure the 2°C alignment of their capital
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