Climate Financing

Climate science is a complicated topic because it covers a range of issues, but it involves, broadly speaking, the question of how the world, as governments and international organizations, will finance the transition to a low-carbon world economy and the adaptation to climate change. There are many categories of need and issues of allocation, pay, recipients, and terms of financing, as well as the financial instruments that could be considered and the regulations that would be applied. The world economy is a multi-trillion dollar amount, and infrastructure and RDD&D account for a large amount of that investment. There is another category of financing which is financing for infrastructure towards the needs of the poorest countries, which is the Green Climate Fund that was established under the UNFCCC. The financing of losses and damages is on the table for design, as well as financing for ecosystem protection and resilience. Financing means financial resources devoted to those challenges, but the nature of those instruments is extraordinarily varied and easily debated; some require repayment and some are essential transfers. Loans require repayment; there can be insurance protection or liability protection against risk on these loans. There are many potential actors in financing, many of them public, but some are private institution or backed by governments, or new development banks. Climate financing is not only about the money, but the rules for deploying the money, and companies must disclose their activities. This video is part of the module Towards a New Climate Agreement Based on 2-Degree.

This video is licensed under the CC BY-NC-SA license.

Tags: climate changegovernanceeconomicssdg financingdecarbonizationmitigationlicense_ccbyncclimate actioninternational relationscarbon cycle

Appears In: Browse All Videos Climate Change Science and Negotiations SDG13 Climate Action Environmental Policy Jeffrey Sachs English Finance

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