41 results found

Climate Audit of German and EU Foreign Diplomacy
Publication date 15 Feb 2022

The project aims to to analyse the extent to which German and EU foreign diplomacy are aligned with the European Green Deal and the PA.

Climate Investment in Latin America
Publication date 24 Nov 2021

This report focuses on the policy landscape needed to enable a transition to net zero emissions, identifying key policies at a sectoral and national level to support investments towards decarbonisation in Argentina, Brazil, and Peru.

MDBs Pledged to Align Financial Flows with the Paris Agreement. They’re Not There Yet
Publication date 03 Nov 2021

Image by Milos Golubovic via flickr (CC BY-NC-ND 2.0) Two years after the 2015 Paris Agreement, the world’s multilateral development banks (MDBs) committed to align their financial flows with the landmark climate pact’s goals. Now, four years later, it’s clear that as a group, the MDBs are still a long way away from realizing their commitment throughout their portfolios. While MDBs have focused on aligning direct investments with Paris goals, this effort is not sufficiently ambitious, nor is it complete. They have paid less attention to whether their indirect investments support climate goals...

Gas investment is not the solution to the current energy crisis
Publication date 21 Oct 2021

Much of the world currently finds itself in the midst of an energy crisis tied to jumps in the price of gas. Expanded investments in gas extraction, infrastructure, and gas-fired electricity generation plants sound like they could be solutions to the global gas crunch. New research from NewClimate Institute finds that continued reliance on gas is more likely to be an expensive distraction aggravating the situation – while undermining energy security and climate mitigation efforts. In the vast majority of cases, renewables and electrification represent the best solution. Around the world...

Paris alignment of gas?
Publication date 20 Oct 2021

Financial institutions' current investments in gas reflect an underestimation of climate risks, including the extent to which gas value chain investments pose a threat to achieving 1.5°C. This report surveys these risks, outlining the need for much tighter restrictions on lending for all parts of the gas value chain. Key Findings: Rapid and far-reaching decarbonisation of the energy system is essential to achieving the objectives of the Paris Agreement. Of particular importance is the “critical decade” between 2020 and 2030, where emissions need to fall 7.6% every year. Committed emissions...

The financial sector has a critical role to play in enabling global deep decarbonisation
Publication date 26 Jul 2021

To limit global warming to well under two degrees, the global economy needs to undergo system-wide changes. Finance has a critical role to play. The finance sector, defined as provider of financial services to actors in the real economy must play a central role in bringing about systemic change and in helping mobilise and shift capital to fully decarbonise the economy. UNEP FI estimates that for full decarbonisation, the world needs investments in the order of 5 to 7 trillion USD per year (UNEP FI). While staggering, tens of trillions of dollars are spent every year on exploration, extraction...

Transforming the finance sector with technical assistance
Publication date 24 Jun 2021

We assessed whether and to what extent the provision of technical assistance can help to transform the finance sector, using the example of support provided in the context of green bonds in China and Kenya. Main findings: In China, the government enacted a number of financial sector reforms to ease green finance flows, including green bond regulations. Technical assistance played a key role in supporting the establishment of China’s green bond market. In Kenya, the Kenya Bankers Association, together with the Nairobi Securities Exchange and international donors launched a Green Bond Programme...

Aligning Financial Intermediary Investments with the Paris Agreement
Publication date 23 Jun 2021

In order for development finance institutions, including multilateral development banks and bilateral, regional and national development banks to “align” themselves with the Paris Agreement, they must make sure that their activities conducted through financial intermediaries are also aligned. It is important for intermediated finance to align with overall temperature and resiliency objectives both in terms of direct but also indirect impact. In addition, development finance institutions should conduct due diligence to ensure that intermediaries meet transparency and governance requirements on...

Operationalization Framework on Aligning with the Paris Agreement
Publication date 04 Jun 2021

In 2017, the International Development Finance Club (IDFC) together with the group of Multilateral Development Banks (MDBs) made a joint commitment to “align financial flows with the Paris Agreement”. With this framework, NewClimate Institute and I4CE provide IDFC members with clear and practical guidance on how to align their operations with the requirements of the Paris Agreement. Main findings: In 2017, the International Development Finance Club (IDFC) together with the group of Multilateral Development Banks (MDBs) made a joint commitment to “align financial flows with the Paris Agreement”...

Operationalization Framework on Aligning with the Paris Agreement
Publication date 28 May 2021

A framework for development financial institutions which provides a selection of tools and approaches to align financial flows with the PA.

Strengthen national climate policy implementation: Comparative empirical learning & creating linkage to climate finance
Publication date 30 Apr 2021

This project supports NDC implementation in partner countries with research-based policy advice and capacity development.

Climate, COVID-19, and the Developing Country Debt Crisis
Publication date 01 Apr 2021

The triple COVID-19, economic, and climate crisis poses a growing challenge to debt sustainability and financing for climate action. There are growing calls to look for solutions for the three crisis together, notably through “debt-for-climate” swaps. Though not a general panacea, such proposals may represent an attractive option for both debtors and creditors. As an input into this ongoing discussion, this working paper proposes several potential broad criteria and proxy indicators as a starting point to identify countries where such debt swaps could be piloted, potentially with lessons...

Three things development finance institutions can do to ensure Paris alignment of intermediated finance
Publication date 30 Mar 2021

Development banks not only provide finance directly to specific projects, they also channel funds to financial intermediaries, for example local banks, in developing and emerging economies. Development banks, notably including the major multilateral development banks and members of the International Development Finance Club (IDFC) have committed to align themselves with the Paris Agreement. While they have made (some) progress with establishing Paris lending criteria for their direct lending activities – clear rules and guidance for how to align “intermediated lending” with the Paris Agreement...

Renovation in Poland
Publication date 06 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 building renovation creates a risk of only partial and inefficient use of this opportunity. Main Findings: Thermal modernisation of buildings does not only play a key role in reducing greenhouse gas emissions but can also be an important stimulus measure for the recovery of European economies after the crisis caused by the COVID-19 pandemic. It is one of the key investment areas supported not only by the EU’s Multiannual Financial...

Landscape of climate finance: From supporting recovery globally to recent advances in the CEE region
Venue Online
Date 27 Oct 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 (Session 1: Climate Investment: From Global to National Challenges – How Can Climate Finance Tracking Support Post-COVID Recovery Plans?) in October 2020. The event was organized within the framework of the EUKI-supported project “Landscape of Climate Finance: Promoting debate on climate finance flows in Central Europe”, jointly implemented by I4CE, NewClimate Institute and WiseEuropa. This workshop aimed to...

Unpacking the finance sector’s climate related investment commitments
Publication date 22 Sep 2020

Financial institution’s climate-related investment targets have rapidly grown in recent years. In this report, we provide insights into the magnitude and ambition of these targets, and investigate their relationship with GHG emissions in the real economy. Specifically, this report maps out the financial sector’s climate-related investment targets against a range of indicators, such as monetary investments in ‘green’ projects, and required ‘green’ investments and GHG emission reductions. It thereby considers both climate-related investment pledges made by individual financial institutions as...

Aligning transport investments with the Paris Agreement
Publication date 17 Sep 2020

As the key European public finance institution, including in the EU’s COVID-19 response measures, the EIB can and should play a prominent role in the decarbonisation of the transport sector, especially in its aspiration to be the “EU Climate Bank”. Our analysis of the EIB's transport investment portfolio since 2015, finds that about half of transport-related investments are clearly “aligned” with the Paris Agreement. We propose Paris alignment evaluation criteria, including key factors to take into consideration, and a number of investment priorities for the EIB to not only align all its...

Deep Decarbonisation in Latin America

Create an improved policy and regulatory framework to mobilise investments to achieve the long-term goals of the PA in Latin America.

Multilateral Development Banks Have Made Progress Towards Paris Alignment, but Still Need to Fill in Critical Details
Publication date 19 Mar 2020

The Paris Agreement sets out the ambitious task of aligning all financial flows with its goals to avoid the worst impacts of warming. Multilateral Development Banks (MDBs) have an important role to play in making this goal a reality. Their development mandates, technical expertise, and track record on climate finance mean that MDBs can lead the way by helping developing countries avoid fossil fuel-intensive development pathways, by developing the necessary standards and investment criteria to assess the alignment of investments with the Paris Agreement’s goals, and by helping to mobilise...

Six Memos on the Multilateral Development Banks’ Paris Alignment Approach
Publication date 19 Mar 2020

In 2016, multilateral development banks committed to align their development finance activities with the goals of the Paris Agreement. This requires the banks to ensure that all their activities advance low-carbon, climate resilient-development pathways, or at least not undermine these goals. In this series of memos from NewClimate, Germanwatch and WRI, we provide input for a robust alignment process along the six alignment building blocks around which the MDBs have agreed to organise the implementation of their alginment work. Multilateral Development Banks (MDBs) have a critical role to play...

Tracking climate-related investments and finance flows
Publication date 20 Jan 2020

This paper discusses ways to identify investments that can be accounted as low-carbon activities. The focus is on the EU Taxonomy, as in the near future it will have to be assessed to what extent this emerging tool can be useful for implementation of the climate finance landscape methodology. Subsequently, we present the added value of linking countries’ climate strategies with investment landscapes. This study 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...

A ten point agenda for delivering higher mitigation ambition
Publication date 14 Jun 2019

The paper formulates 10 points for mitigation ambition and includes recommendations on ways to support ambition raising through international cooperation. Introduction: All governments have committed to the long-term goal of the Paris Agreement. The findings of IPCC 1.5 Special Report (IPCC 1.5SR) illustrate the climate impacts and risks associated with exceeding 1.5°C and clearly underscore that greater ambition is urgently needed to achieve this limit as current Nationally Determined Contributions (NDCs) are inconsistent with Paris compatible pathways. This has implications for the role of...

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