Scaling up and replicating effective climate finance interventions

OECD (Climate Change Expert Group Paper 2014 (1))

There is widespread recognition that climate finance needs to be scaled up from its current levels. However, there is no clear view on how developed countries can efficiently and effectively mobilise further climate finance to meet the needs of developing countries. Developed countries have committed to mobilise USD 100 bn per year of climate finance for developing countries by 2020 from a variety of sources. These include both public and private finance, and the private sector is likely to play an important role in the mobilisation of climate finance to meet this commitment.
This paper explores how scale-up and replication of effective climate finance interventions efficiently mobilise private climate finance. It analyses both case studies in mitigation and adaptation. A majority of the financial resources that are currently mobilised by developed countries flows to mitigation interventions, and it will be difficult to better balance this at least in the short-term. The paper analyses the barriers towards up-scaling finance, and concludes that institutional structures, bridging the information gaps, and the broader enabling environments have a significant impact on replication and scaling- up.