Developed countries have pledged to “mobilise” USD 100 billion per year by 2020 in climate finance for developing countries. Yet only part will come from public coffers; the rest – a still-undetermined amount – is expected to flow from private sources.
How all this private climate finance will be mobilised remains unclear.
The private sector is investing in low-carbon and climate-resilient actions – USD 243 bn in 2014, according to Climate Policy Initiative (CPI) – but only 8% of those flows were international. Private adaptation finance was not tracked, but of $148 bn in public finance, only $25 bn went to adaptation.
Political leaders, development banks and others working to increase private climate finance often assume that private actors can support climate action in developing countries in much the same way as public entities. Yet especially with adaptation, our research and experience suggest, that is unrealistic.
Source: Climate Home, UK