"Even if all financing from the multilateral development banks (MDBs) was devoted to decarbonization and resilience, it would still meet less than 4 percent of financial needs for full climate transformation"
This report analyses options to make international public climate finance more transformative. The report identifies eight sets of levers to drive climate action: project-based investments, financial sector reform, fiscal policy, sectoral policies, trade policy, innovation and technology transfer, carbon markets, and climate intelligence. It then examines how climate finance is deployed to address barriers to action for each lever and derives general principles for transformative climate finance based on this analysis relating to the allocation of climate finance, use of different financial instruments, and other improvements in modalities and processes.
This Knowledge Note is an overview of the report titled Transformative Climate Finance: A New Approach for Climate Finance to Achieve Low-Carbon Resilient Development in Developing Countries, published by the World Bank. To read the full report, click HERE.