1、 June 2020 Transformative Climate Finance i Contents Executive Summary . 1 1 Introduction . 5 2 Current status of climate finance . 12 3 Building blocks of transformative climate finance . 21 A. Project-based financing . 27 B. Green financial sector reform . 41 C. Fiscal policies . 55 D. Sector poli

2、cies . 68 E. Trade policy and green trade . 77 F. Innovation . 91 G. Carbon markets . 106 H. Climate intelligence and data . 118 4 Enabling the transitioning to transformative climate finance . 131 Annex A: Climate Finance Flows Methodology. 140 Annex B: Transitioning from a low- to a high-level cli

3、mate finance equilibrium . 148 References . 151 Transformative Climate Finance ii List of tables Table ES1 Eight transformative climate actions can help countries transition to LCCR development pathways . 2 Table ES2 Summary of transformative climate action approaches and relevant climate finance in

4、struments . 4 Table 1 Climate mitigation and adaptation priorities to support LCCR development across key areas . 7 Table 2 Estimated gross annual green investment needs to achieve LCCR mitigation priorities . 8 Table 3 Eight climate levers all support an accelerated and scaled-up response to climat

5、e change . 11 Table 4 Top 20 recipients of climate mitigation finance and their relative shares of developing country emissions . 17 Table 5 Top 20 recipients of climate adaptation finance and their relative shares of projected adaptation investment needs . 18 Table 4 This framework classifies clima

6、te finance into nine categories of instruments to support climate action . 22 Table 5 Summary of transformative climate levers and relevant climate finance instruments . 24 Table 6 Relevant climate finance instruments for project-based financing . 32 Table 7 Relevant climate finance instruments for

7、financial sector reform . 50 Table 8 Relevant climate finance instruments for fiscal policy action. 64 Table 9 Relevant climate finance instruments for sector-specific policy action . 73 Table 10 Relevant climate finance instruments for trade policy . 86 Table 11 Relevant climate finance instruments

8、 for innovation . 100 Table 12 Relevant climate finance instruments for carbon markets . 113 Table 13 Relevant climate finance instruments for climate intelligence and data . 125 List of figures Figure ES1 International public climate finance falls far short of needs . 1 Figure 1 The evolution of cl

9、imate finance and carbon market flows since 2000 . 12 Figure 2 Overall flows of climate finance . 14 Figure 3 Shares of climate finance flows by channel . 14 Figure 4 Shares of climate finance flows by instrument . 15 Figure 5 Shares of climate finance flows by theme . 15 Figure 6 Shares of climate

10、finance flows by region . 16 Figure 7 Private sector co-financing . 19 Figure 8 Steps for the assessment of investment criteria of public funds . 34 Figure 9 Global exports in LCCR goods represent around trillion of annual trade, two-thirds of which comes from OECD countries . 78 Figure 10 The value

11、 of export credit allocated to renewable sectors is eclipsed by export finance in non- renewable energy production . 89 Figure 11 Low carbon innovation (as measured by share of patents) peaked between 2005 and 2010, but has since seen a sharp decline. 92 Figure 12 The role of climate intelligence an

12、d data stretches across two dimensions . 120 Figure 13 Implementing a transition from a brown to a green development pathway can create short term costs even alongside long-term net gains . 132 Figure 14 A stylized presentation of low and high climate finance equilibria . 148 Transformative Climate

13、Finance iii List of boxes Box 1. Key examples of development policy-based financing for sector policies . 75 Box 2. The negative impacts of trade on climate . 78 Box 3. The state of EU BCAs in 2019 . 82 Box 4. Linking climate to trade agreements . 83 Box 5. Climate clubs and the Paris Agreement . 84

14、 Box 6. Climate-related innovation has delivered real innovation, but the pace of activity may be slackening . 91 Box 7. Carbon market design . 108 Acknowledgments This report was authored by Vivid Economics, with support from the Climate Policy Initiative (CPI) and Jacquelin Ligot, Climate climate

15、finance practitioners such as MDBs, bilateral organizations and specialized climate funds; and developing country government departments and agencies engaged in climate finance. It is written from a practitioners perspective, building on experiences from the World Bank Group and others on approaches

16、 for maximising the impact of climate finance, as well as on findings from the existing literature. The analysis is grounded in economic reasoning to offer an overview of transformative climate action and how international public climate finance can support this transformative change. T Transformati

17、ve ransformative climate action climate action occurs occurs when when projectsprojects or investments or investments have have positivepositive spillover effects beyond spillover effects beyond the the boundaries of the boundaries of the specific specific activityactivity supported supported which

18、which remove persistent remove persistent barriers to barriers to scaledscaled- -up mitigation up mitigation and and adaptationadaptation actionaction. . Climate action is transformative when it produces high-impact, enduring results that are scalable and replicable that supports rapid and permanent

19、 change towards LCCR development. This is achieved by overcoming persistent barriers to such development so that subsequent climate actions will follow in the absence of public support. Examples of such positive spillovers include: reaching technology tipping pints where green options are more comme

20、rcially viable than incumbent brown options; providing demonstration effects for technology or policy that prompts others to replicate; introduction of policies that drive investment and actions; and capacity building and knowledge generation that expands actors ability to enact change and invest in

21、 new opportunities. Transformative Climate Finance 2 Clearly defining and delineating different types of climate financeClearly defining and delineating different types of climate finance is necessary to understand how certain is necessary to understand how certain types of climate finance can be ty

22、pes of climate finance can be transformativetransformative by catalyzing by catalyzing otherother, , significantly significantly largerlarger, , f financeinance flowsflows. . Throughout this report, climate finance is defined as international public finance provided by developed countries to develop

23、ing countries at below market conditions for mitigation and/or adaptation activities. Climate finance is broken down into two types, based on the approach in OECD (2019d): (i) dedicated climate finance climate as finance specifically and primarily focused on climate outcomes (provided by specialized

24、 multilateral and bilateral climate funds), and (ii) climate-related development finance as finance that offers a blend of development and climate outcomes (provided by multilateral and bilateral organizations). Both categories of climate finance provide around 95% of the financing through grants an

25、d loans, and the composition by theme (mitigation, resilience/adaptation) and their geographic focus is similar in both categories. There is There is currently currently a window of opportunity a window of opportunity to to rere- -assess assess how how international climate finance is programmed, in

26、ternational climate finance is programmed, deployed and measured. deployed and measured. This opportunity has been created primarily by increasing political and scientific urgency on climate change, combined with a need to programme and direct the growing volumes of public and private climate financ

27、e available. At the same time, major international climate finance institutions (such as the Green Climate Fund and the Climate Investment Funds) are evolving and are planning how they will disburse their resources. In addition, the rules on carbon markets under the Paris Agreement are in flux and y

28、et to be determined. Other factors creating the inflection point in treatment of climate finance include lessons on leveraging private finance across development institutions, and falling prices and increased profitability of climate solutions such as renewable energy. This report defines eight sets

29、 of climate actions and examines how climate finance can This report defines eight sets of climate actions and examines how climate finance can be used within them be used within them to support to support transformation for transformation for LCCR developmentLCCR development. . Table ES1 provides a

30、n overview of these eight actions. Table ES1 Eight transformative climate actions can help countries transition to LCCR development pathways Climate ActionClimate Action DescriptionDescription uncertainty surrounding the benefits of climate actions or limited technical know- how to implement actions

31、; limited institutional capacity to develop and enforce effective policies; often lack of political momentum and support for existing approaches and policies from both public and private actors, which often stems from the perception that climate action conflicts with development and growth. A range

32、of climate finance iA range of climate finance instruments are nstruments are available to aavailable to ad ddress the barriers dress the barriers that impedethat impede the interventions the interventions that drive that drive climate action.climate action. These finance instruments include approac

33、hes that are well known, particularly grants and loans to support climate investments, and instruments that have been used less frequently, including blended finance approaches such as equity co-investments. However, even widely used instruments may need to be deployed in new ways to support transfo

34、rmative change. The report finds that there is an opportunity to The report finds that there is an opportunity to rere- -allocate allocate and reand re- -prioritize programming of prioritize programming of climate finance climate finance to to enhance transformative climate actions.enhance transformative climate actions. The majority of climate finance has traditionally been directed at project-based interventions. Complemen