This report is intended to inform and support discussions on the financing of climate-related investment and, most immediately, financing linked to the UNFCCC process and its objective of limiting global warming to 2°C above pre-industrial levels.
In particular, recognising the substantial capital that will need to be mobilised, it seeks to address the potential for private finance to address both climate mitigation and adaptation actions, and examines the kinds of structures and co-ordination that will be required to attract such private finance.
The report is aimed at the reader who is not necessarily an expert in climate or finance, including participants at COP21 in Paris, where the commitments made will necessitate very substantial increases in funding for climate actions.
These will include, especially, flows from the developed to the developing world, and these flows - rather than finance within and between developed economies – are the main focus of the report.
The author is an investment market practitioner, and the report is written from a practitionerâs perspective. In particular, many of the observations on market participants and their involvement and activities are derived from the authorâs experience, and are thus open to other opinions and interpretations.