Analysis of climate finance flows and development of policies and instruments to maximise the impact of finance on the ground.

Many countries need financial support to implement climate compatible development strategies and decarbonisation plans.
Many countries need financial support to implement climate compatible development strategies and decarbonisation plans.

Solving the climate challenge requires redirecting investments towards climate-compatible options and supporting countries and investors to integrate climate concerns into their policies. We analyse current climate finance flows and develop concrete proposals on how climate finance can be applied most effectively from a funder’s as well as recipient’s perspective. Combining practical experience from our in-country work with our research and analysis of climate policies and their impacts, we address the challenge from different perspectives:

Key contacts

Frauke Röser
Frauke Röser
Markus Hagemann
Markus Hagemann

Return to all expertise

  • Comprehensive analyses to understand barriers to investment and how to remove these most effectively to achieve climate and development objectives
  • Designing finance schemes and mechanism according to local requirements which seek to stimulate private sector investment through targeted public finance interventions to advance climate action
  • Developing methodologies and frameworks for the evaluation of the effectiveness and impacts of financial interventions, and feeding results back into the design of finance strategies and guidelines at international, national and organisational levels.

Associated projects

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.

NOAK – Mobilising 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

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

Technical assistance to the Government of Uganda for the development of a country programme for the GCF Return to all expertise and projects NewClimate supported the development of a country programme for the Green Climate Fund (GCF) for Uganda in an advisory function. The project was conducted by the International Institute for Sustainable Development (IISD)… Read More

2°C compatible investment criteria

Developing criteria and a toolkit to help investors to align their investments with the 2°C goal Return to all expertise and projects 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. Whilst the… Read More

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

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.
Six Memos on the Multilateral Development Banks’ Paris Alignment Approach Mar 2020 - Principles and recommendations for robust alignment of MDB lending activities from NewClimate, Germanwatch, and the World Resources Institute.
Tracking climate-related investments and finance flows Jan 2020 - This paper discusses ways to identify investments that can be accounted as low-carbon activities and offers further recommendations regarding the solutions that help to reduce the gap between current financial structures and the objectives of the national low-emission transition.
How could the concept of an “overall mitigation in global emissions” (OMGE) be operationalized under the Paris Agreement? Jun 2019 - This paper addresses questions that have been raised in relation to OMGE. It draws on a study conducted by Lambert Schneider and NewClimate Institute.
Domestic Landscape of Climate Finance Feb 2019 - This publication describes existing methods to track climate finance and illustrates how these can be helpful for different stakeholders, with a specific focus on Poland.
Toward Paris Alignment: How the Multilateral Development Banks Can Better Support the Paris Agreement Dec 2018 - This report describes a new Paradigm for Multilateral Development Banks to contribute to the fight against climate change, and provides recommendations on how the MDBs can transition from the current Climate Finance Paradigm to the new Paris Alignment Paradigm.
Allianz Climate and Energy Monitor 2018 Nov 2018 - The Allianz Climate and Energy Monitor ranks G20 member states on their current attractiveness as potential destinations for investments in low-carbon electricity infrastructure. It further considers their current and future investment needs in line with a trajectory compatible with the 2°C/1.5°C temperature limits of the Paris Agreement.
Operationalising an ‘overall mitigation in global emissions’ under Article 6 of the Paris Agreement Nov 2018 - A key requirement of the mechanism established by Article 6.4 of the Paris Agreement is that it shall aim to deliver an overall mitigation in global emissions. This report identifies and discusses key options for operationalising this concept, leading to distinct recommendations to support the ongoing...

Public presentations & interviews

Landscape of climate finance: From supporting recovery globally to recent advances in the CEE region Nov 2020 - Aki Kachi presented on "Current trends in green recovery measures" at the "Landscape of climate finance: From supporting recovery globally to recent advances in the CEE region" Workshop.
Unpacking the finance sector’s investment commitments Sep 2020 - In this Climate Week NYC event, we presented the dynamic field of non-state and subnational action, its opportunities and uncovered potential for climate ambition.