NewClimate Institute contributed to a policy brief on ‘Two unconventional options to enhance multilateral climate finance’ under the European Capacity Building Initiative (ecbi). The brief considers two unconventional sources of finance to overcome the current challenges in multilateral climate finance and enhance predictability and magnitude: a ‘share of proceeds’ from national and sub-national emission trading schemes; and crowdfunding from corporate air passengers.

This study clarifies the definition of results-based financing (RBF) and in particular its role in the context of climate policy. The publication is aimed at readers from the carbon markets and climate finance communities alike. It facilitates a common understanding of what RBF as a financing modality involves and is therefore meant to also be a good starting point for readers looking into this topic for the first time. An overview of results-based finance options and opportunities for linking market and non-market approaches is provided. Combining carbon market and non-market climate finance...

This discussion paper provides an overview of the development of the international carbon market mechanisms and emerging domestic carbon pricing systems, and lays out three distinct but potentially complementary options for market mechanisms in a future climate change agreement. Options for narrowing the emissions gap before 2020 using market mechanisms are also explored. Recommendations for short term action for the G7 countries are given.

The Clean Development Mechanism (CDM) has become one of the world’s most important carbon market instruments, diffusing carbon price signals worldwide, stimulating major private investments in climate change mitigation projects worldwide, and supporting the development of mitigation action in developing countries. Following the recent decline of the market conditions, the situation of project activities, in addition to domestic and international capacities related to the CDM, have noticeably deteriorated. This research conducted by NewClimate Institute and Ecofys on behalf of the German...