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.


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.

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.

Key contacts

Aki Kachi
Aki
Kachi
Katharina Lütkehermöller
Katharina Lütkehermöller

Return to all expertise


Associated projects

Strengthen national climate policy implementation: Comparative empirical learning & creating linkage to climate finance

Return to all expertise and projects As part of implementing nationally determined contributions (NDCs), governments face the challenge of supporting national climate policies and institutions with limited public funds while also reducing the barriers to investment faced by the private sector. This project supports NDC implementation in partner countries with research-based policy advice and capacity… Read More

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

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.
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.

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.