Climate change poses enormous financial challenges. The combined cost of mitigating greenhouse gas emissions and adapting to the unavoidable impacts of climate change has been estimated at several hundred billion USD per year, with the most pressing needs in developing countries. Mobilizing the right kinds of finance to enable the necessary investments is therefore essential to reducing climate risk and avoiding the worst impacts of climate change.
Finance is one of three pillars of support for climate action in developing countries under the United Nations Framework Convention on Climate Change (UNFCCC), along with technology transfer and capacity-building. Despite disagreements on many aspects of climate policy, there is broad agreement that developed countries should mobilize climate finance that can support adaptation and mitigation in developing countries.
There are commitments to mobilize 100 billion USD per year for this purpose from 2020 onwards, yet how these funds will flow is far from straightforward. The global climate finance architecture is inherently complex, including multilateral and bilateral funding streams as well as private sector investments.
This information sheet describes the key components of the SEI Initiative on Climate Finance, as well as its approach to gauging the effectiveness and efficiency of climate finance.
Download the information sheet (PDF, 1.28MB)