Supporting climate compatible policies and investment decision making in order to avoid stranded assets and catalyse finance to bring about sustainable, rapid, and far-reaching transitions towards deep decarbonisation.
Current investments patterns and financial flows are not consistent with either global climate or sustainable development objectives. Driving deep decarbonisation on the way to climate neutrality by mid-century will require massive mobilization of finance in climate solutions, a phase out of counterproductive financial flows, and economic responses for just transitions.
NewClimate Institute works to support climate compatible policies and investment decision making, avoid stranded assets, and catalyse finance to bring about sustainable, rapid and far-reaching transitions. Our interdisciplinary team combines global insights with in-country development cooperation and technical expertise. We work with policy makers, investors, business, and civil society to:
- Provide insight and develop criteria for Paris aligned investment decision making
- Chart the climate implications of public and private investment patterns, identify gaps and highlight opportunities
- Track climate targets and investment commitments and analyse their impact
- Identify solutions to overcome barriers through enabling frameworks and financial solutions on both a country and sectoral level.
Associated projects
Operationalization Framework on Aligning with the Paris Agreement
This project aims to support the process of Paris-aligning financial institutions and NewClimate Institute and I4CE have developed a framework to serve as initial guidance.
Strengthen national climate policy implementation: Comparative empirical learning & creating linkage to climate finance
This project supports NDC implementation in partner countries with research-based policy advice and capacity development.
Deep Decarbonisation in Latin America
The aim of the project is to create the enabling conditions to make finance flows consistent with low-carbon development pathways in three Latin American countries and to create an improved policy and regulatory framework to mobilise the investments needed to achieve the long-term goals of the Paris Agreement.
Landscape of Climate Finance: Promoting debate on climate finance flows in Central Europe
In this project, NewClimate together with WiseEuropa and I4CE supports the exchange of experiences between policymakers, experts, business community and civil society to improve assessment and design of domestic climate finance investment environments and raises the awareness regarding the financial tools available to achieve climate policy objectives and foster the transition towards the low-emission economy.
Paris compatible investment criteria
NewClimate Institute together with Germanwatch, WRI, and Fundación Avina, examined the role of Multilateral Development Banks (MDBs) in supporting the implementation of the Paris Agreement.
Mobilising Nordic climate finance post Paris
Identifying how Nordic institutions can best contribute to mobilising climate finance for developing countries in a Paris agreement framework. Return to all expertise and projects In a consortium led by the Finnish outfit GAIA and with the Stockholm Environment Institute (SEI) NewClimate Institute carried out a study on behalf of the Nordic Working Group for… Read More
Supporting the Tunisian Solar Plan NAMA
NewClimate Institute is supporting the development of a NAMA for the Tunisian Solar Plan (PST). The project is conducted under the leadership of the Tunisian company ALCOR on behalf of UNDP funded by the Global Environment Facility (GEF).
Allianz Climate and Energy Monitor
Creation of an index to assess the fitness of countries as potential investment destinations for building low carbon and climate resilient energy infrastructure Return to all expertise and projects NewClimate Institute partnered with Germanwatch to develop a Climate and Energy Monitor for Allianz Climate Solutions. The monitor ranks the G20 member countries according to their… Read More
GCF Country Programme Uganda
NewClimate supported the development of a country programme for the Green Climate Fund (GCF) for Uganda in an advisory function.
2°C compatible investment criteria
NewClimate Institute led a consortium of Germanwatch, the 2°investing initiative and McKinsey to develop criteria and a toolkit for investors to align their investments with the internationally agreed 2°C climate limit.
Results-based financing in Carbon Markets – connecting market and non-market based approaches
Current situation of results-based financing (RBF) approaches in climate policy.
Further reading
Climate Investment in Latin America Nov 2021 - This report on Climate Investment in Latin America offers insights into low-carbon investments and key trends in sectoral decarbonisation and analyses the sectoral policy landscape for scaling up low-carbon investments in Argentina, Brazil and Peru.
Paris alignment of gas? Oct 2021 - A survey of climate risks related to gas investments, outlining the need for much tighter restrictions on lending for all parts of the gas value chain. 
Aligning agribusiness and the broader food system with the Paris Agreement Jun 2021 - Investment criteria for agriculture and the broader food system
Transforming the finance sector with technical assistance Jun 2021 - We assessed whether and to what extent the provision of technical assistance could help to transform the finance sector, using the example of support provided in the context of green bonds in Kenya and China.
Aligning Financial Intermediary Investments with the Paris Agreement Jun 2021 - This working paper provides input into ongoing discussion of Paris consistency and alignment of financial flows according to the Agreement’s Article 2.1c.
Operationalization Framework on Aligning with the Paris Agreement Jun 2021 - In this paper, NewClimate Institute and I4CE developed a framework for financial institutions to provide them with guidance to start the alignment process.
Climate, COVID-19, and the Developing Country Debt Crisis Apr 2021 - Debt for climate swaps may represent part of a larger approach to address the COVID-19, economic, climate triple crisis. This working paper explores potential criteria for prioritising potential partner countries to pursue such approaches. 
Renovation in Poland Jan 2021 - In the coming years, Poland will gain access to unprecedented funds for thermal modernization of buildings. Limited monitoring of financial flows in the area of buildings renovation creates a risk of only partial and inefficient use of this opportunity.
Unpacking the finance sector’s climate related investment commitments Sep 2020 - This report provides insights into the magnitude and ambition of financial institution’s climate-related investment targets, and investigates their relationship with GHG emissions in the real economy.
Aligning transport investments with the Paris Agreement Sep 2020 - We assess the EIB's transport-related investment portfolio 2015-2019 and propose evaluation criteria to align transport investments with the Paris Agreement.